[House Report 109-203]
[From the U.S. Government Publishing Office]




109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-203

======================================================================


 
  SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT TRANSPORTATION EQUITY ACT: A 
                            LEGACY FOR USERS

                               ----------                              

                           CONFERENCE REPORT

                                 of the

                        COMMITTEE OF CONFERENCE

                                   on

                                 H.R. 3



                 SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT
             TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     109-203
_______________________________________________________________________



                 SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT
             TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS

                               __________

                           CONFERENCE REPORT

                                 of the

                        COMMITTEE OF CONFERENCE

                                   on

                                 H.R. 3







109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    109-203

========================================================================



  SAFE, ACCOUNTABLE, FLEXIBLE, EFFICIENT TRANSPORTATION EQUITY ACT: A 
                            LEGACY FOR USERS

                                _______
                                

                 July 28, 2005.--Ordered to be printed

                                _______
                                

Mr. Young of Alaska, from the committee on conference, submitted the 
                               following

                           CONFERENCE REPORT

                         [To accompany H.R. 3]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendment of the Senate to the bill (H.R. 3), 
to authorize funds for Federal-aid highways, highway safety 
programs, and transit programs, and for other purposes, having 
met, after full and free conference, have agreed to recommend 
and do recommend to their respective Houses as follows:
    That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
    In lieu of the matter proposed to be inserted by the Senate 
amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users'' or ``SAFETEA-LU''.
    (b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. General definitions.

                      TITLE I--FEDERAL-AID HIGHWAYS

                  Subtitle A--Authorization of Programs

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Equity bonus program.
Sec. 1105. Revenue aligned budget authority.
Sec. 1106. Future Interstate System routes.
Sec. 1107. Metropolitan planning.
Sec. 1108. Transfer of highway and transit funds.
Sec. 1109. Recreational trails.
Sec. 1110. Temporary traffic control devices.
Sec. 1111. Set-asides for Interstate discretionary projects.
Sec. 1112. Emergency relief.
Sec. 1113. Surface transportation program.
Sec. 1114. Highway bridge program.
Sec. 1115. Highway use tax evasion projects.
Sec. 1116. Appalachian development highway system.
Sec. 1117. Transportation, community, and system preservation program.
Sec. 1118. Territorial highway program.
Sec. 1119. Federal lands highways.
Sec. 1120. Puerto Rico highway program.
Sec. 1121. HOV facilities.
Sec. 1122. Definitions.

                      Subtitle B--Congestion Relief

Sec. 1201. Real-time system management information program.

                   Subtitle C--Mobility and Efficiency

Sec. 1301. Projects of national and regional significance.
Sec. 1302. National corridor infrastructure improvement program.
Sec. 1303. Coordinated border infrastructure program.
Sec. 1304. High priority corridors on the National Highway System.
Sec. 1305. Truck parking facilities.
Sec. 1306. Freight intermodal distribution pilot grant program.
Sec. 1307. Deployment of magnetic levitation transportation projects.
Sec. 1308. Delta region transportation development program.
Sec. 1309. Extension of public transit vehicle exemption from axle 
          weight restrictions.
Sec. 1310. Interstate oasis program.

                       Subtitle D--Highway Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Worker injury prevention and free flow of vehicular traffic.
Sec. 1403. Toll facilities workplace safety study.
Sec. 1404. Safe routes to school program.
Sec. 1405. Roadway safety improvements for older drivers and 
          pedestrians.
Sec. 1406. Safety incentive grants for use of seat belts.
Sec. 1407. Safety incentives to prevent operation of motor vehicles by 
          intoxicated persons.
Sec. 1408. Improvement or replacement of highway features on National 
          Highway System.
Sec. 1409. Work zone safety grants.
Sec. 1410. National Work Zone Safety Information Clearinghouse.
Sec. 1411. Roadway safety.
Sec. 1412. Idling reduction facilities in Interstate rights-of-way.

            Subtitle E--Construction and Contract Efficiency

Sec. 1501. Program efficiencies.
Sec. 1502. Highways for LIFE pilot program.
Sec. 1503. Design build.

                           Subtitle F--Finance

Sec. 1601. Transportation Infrastructure Finance and Innovation Act 
          amendments.
Sec. 1602. State infrastructure banks.
Sec. 1603. Use of excess funds and funds for inactive projects.
Sec. 1604. Tolling.

                   Subtitle G--High Priority Projects

Sec. 1701. High Priority Projects program.
Sec. 1702. Project authorizations.
Sec. 1703. Technical amendments to transportation projects.

                         Subtitle H--Environment

Sec. 1801. Construction of ferry boats and ferry terminal facilities.
Sec. 1802. National Scenic Byways Program.
Sec. 1803. America's Byways Resource Center.
Sec. 1804. National historic covered bridge preservation.
Sec. 1805. Use of debris from demolished bridges and overpasses.
Sec. 1806. Additional authorization of contract authority for States 
          with Indian reservations.
Sec. 1807. Nonmotorized transportation pilot program.
Sec. 1808. Addition to CMAQ-eligible projects.

                        Subtitle I--Miscellaneous

Sec. 1901. Inclusion of requirements for signs identifying funding 
          sources in title 23.
Sec. 1902. Donations and credits.
Sec. 1903. Inclusion of Buy America requirements in title 23.
Sec. 1904. Stewardship and oversight.
Sec. 1905. Transportation development credits.
Sec. 1906. Grant program to prohibit racial profiling.
Sec. 1907. Pavement marking systems demonstration projects.
Sec. 1908. Inclusion of certain route segments on Interstate System and 
          NHS.
Sec. 1909. Future of surface transportation system.
Sec. 1910. Motorist information concerning full service restaurants.
Sec. 1911. Approval and funding for certain construction projects.
Sec. 1912. Lead agency designation.
Sec. 1913. Bridge construction, North Dakota.
Sec. 1914. Motorcyclist Advisory Council.
Sec. 1915. Loan forgiveness.
Sec. 1916. Treatment of off ramp.
Sec. 1917. Opening of Interstate ramps.
Sec. 1918. Credit to State of Louisiana for State matching funds.
Sec. 1919. Road user fees.
Sec. 1920. Transportation and local workforce investment.
Sec. 1921. Update of obsolete text.
Sec. 1922. Technical amendments to nondiscrimination section.
Sec. 1923. Transportation assets and needs of Delta region.
Sec. 1924. Alaska Way Viaduct study.
Sec. 1925. Community enhancement study.
Sec. 1926. Budget justification.
Sec. 1927. 14th Amendment Highway and 3rd Infantry Division Highway.
Sec. 1928. Sense of Congress regarding Buy America.
Sec. 1929. Designation of Daniel Patrick Moynihan Interstate Highway.
Sec. 1930. Designation of Thomas P. ``Tip'' O'Neill, Jr. Tunnel.
Sec. 1931. Richard Nixon Parkway, California.
Sec. 1932. Amo Houghton Bypass.
Sec. 1933. Billy Tauzin Energy Corridor.
Sec. 1934. Transportation improvements.
Sec. 1935. Project flexibility.
Sec. 1936. Advances.
Sec. 1937. Roads in closed basins.
Sec. 1938. Technology.
Sec. 1939. BIA Indian Road Program.
Sec. 1940. Going-to-the-Sun Road, Glacier National Park, Montana.
Sec. 1941. Beartooth Highway, Montana.
Sec. 1942. Opening of airfield at Malmstrom Air Force Base, Montana.
Sec. 1943. Great Lakes ITS implementation.
Sec. 1944. Transportation construction and remediation, Ottawa County, 
          Oklahoma.
Sec. 1945. Infrastructure awareness program.
Sec. 1946. Gateway rural improvement pilot program.
Sec. 1947. Eligible safety improvements.
Sec. 1948. Emergency service route.
Sec. 1949. Knik Arm Bridge funding clarification.
Sec. 1950. Lincoln Parish, LA/I-20 Transportation Corridor Program.
Sec. 1951. Bonding assistance program.
Sec. 1952. Congestion relief.
Sec. 1953. Authorization of appropriations.
Sec. 1954. Bicycle transportation and pedestrian walkways.
Sec. 1955. Conveyance to the City of Ely, Nevada.
Sec. 1956. Brownfields grants.
Sec. 1957. Traffic circle construction, Clarendon, Vermont.
Sec. 1958. Limitation on project approval.
Sec. 1959. Cross harbor freight movement project.
Sec. 1960. Denali access system program.
Sec. 1961. I-95/Contee Road interchange study.
Sec. 1962. Multimodal facility improvements.
Sec. 1963. Apollo Theater leases.
Sec. 1964. Project Federal share.

                        TITLE II--HIGHWAY SAFETY

Sec. 2001. Authorization of appropriations.
Sec. 2002. Highway safety programs.
Sec. 2003. Highway safety research and outreach programs.
Sec. 2004. Occupant protection incentive grants.
Sec. 2005. Grants for primary safety belt use laws.
Sec. 2006. State traffic safety information system improvements.
Sec. 2007. Alcohol-impaired driving countermeasures.
Sec. 2008. NHTSA accountability.
Sec. 2009. High visibility enforcement program.
Sec. 2010. Motorcyclist safety.
Sec. 2011. Child safety and child booster seat incentive grants.
Sec. 2012. Safety data.
Sec. 2013. Drug-impaired driving enforcement.
Sec. 2014. First responder vehicle safety program.
Sec. 2015. Driver performance study.
Sec. 2016. Rural State emergency medical services optimization pilot 
          program.
Sec. 2017. Older driver safety; law enforcement training.
Sec. 2018. Safe intersections.
Sec. 2019. National Highway Safety Advisory Committee technical 
          correction.
Sec. 2020. Presidential Commission on Alcohol-Impaired Driving.
Sec. 2021. Sense of the Congress in support of increased public 
          awareness of blood alcohol concentration levels and dangers of 
          alcohol-impaired driving.
Sec. 2022. Effective date.

                    TITLE III--PUBLIC TRANSPORTATION

Sec. 3001. Short title.
Sec. 3002. Amendments to title 49, United States Code; updated 
          terminology.
Sec. 3003. Policies, findings, and purposes.
Sec. 3004. Definitions.
Sec. 3005. Metropolitan transportation planning.
Sec. 3006. Statewide transportation planning.
Sec. 3007. Planning programs.
Sec. 3008. Private enterprise participation.
Sec. 3009. Urbanized area formula grants.
Sec. 3010. Clean fuels grant program.
Sec. 3011. Capital investment grants.
Sec. 3012. Formula grants for special needs of elderly individuals and 
          individuals with disabilities.
Sec. 3013. Formula grants for other than urbanized areas.
Sec. 3014. Research, development, demonstration, and deployment 
          projects.
Sec. 3015. Transit cooperative research program.
Sec. 3016. National research and technology programs.
Sec. 3017. National Transit Institute.
Sec. 3018. Job access and reverse commute formula grants.
Sec. 3019. New Freedom Program.
Sec. 3020. Bus testing facility.
Sec. 3021. Alternative transportation in parks and public lands.
Sec. 3022. Human resources programs.
Sec. 3023. General provisions on assistance.
Sec. 3024. Special provisions for capital projects.
Sec. 3025. Contract requirements.
Sec. 3026. Project management oversight and review.
Sec. 3027. Project review.
Sec. 3028. Investigations of safety hazards and security risks.
Sec. 3029. State safety oversight.
Sec. 3030. Controlled substances and alcohol misuse testing.
Sec. 3031. Employee protective arrangements.
Sec. 3032. Administrative procedures.
Sec. 3033. National transit database.
Sec. 3034. Apportionments of formula grants.
Sec. 3035. Apportionments based on fixed guideway factors.
Sec. 3036. Authorizations.
Sec. 3037. Alternatives analysis program.
Sec. 3038. Apportionments based on growing States formula factors.
Sec. 3039. Over-the-road bus accessibility program.
Sec. 3040. Obligation ceiling.
Sec. 3041. Adjustments for fiscal year 2005.
Sec. 3042. Terrorist attacks and other acts of violence against public 
          transportation systems.
Sec. 3043. Project authorizations for new fixed guideway capital 
          projects.
Sec. 3044. Projects for bus and bus-related facilities and clean fuels 
          grant program.
Sec. 3045. National fuel cell bus technology development program.
Sec. 3046. Allocations for national research and technology programs.
Sec. 3047. Forgiveness of grant agreement.
Sec. 3048. Cooperative procurement.
Sec. 3049. Transportation fringe benefits.
Sec. 3050. Commuter rail.
Sec. 3051. Paratransit service in Illinois.

                     TITLE IV--MOTOR CARRIER SAFETY

Sec. 4001. Short title.

               Subtitle A--Commercial Motor Vehicle Safety

Sec. 4101. Authorization of appropriations.
Sec. 4102. Increased penalties for out-of-service violations and false 
          records.
Sec. 4103. Penalty for denial of access to records.
Sec. 4104. Revocation of operating authority.
Sec. 4105. State laws relating to vehicle towing.
Sec. 4106. Motor carrier safety grants.
Sec. 4107. High priority activities and new entrants audits.
Sec. 4108. Data quality improvement.
Sec. 4109. Performance and registration information system management.
Sec. 4110. Border enforcement grants.
Sec. 4111. Motor carrier research and technology program.
Sec. 4112. Nebraska custom harvesters length exemption.
Sec. 4113. Pattern of safety violations by motor carrier management.
Sec. 4114. Intrastate operations of interstate motor carriers.
Sec. 4115. Transfer provision.
Sec. 4116. Medical program.
Sec. 4117. Safety performance history screening.
Sec. 4118. Roadability.
Sec. 4119. International cooperation.
Sec. 4120. Financial responsibility for private motor carriers.
Sec. 4121. Deposit of certain civil penalties into Highway Trust Fund.
Sec. 4122. CDL learner's permit program.
Sec. 4123. Commercial driver's license information system modernization.
Sec. 4124. Commercial driver's license improvements.
Sec. 4125. Hobbs Act.
Sec. 4126. Commercial vehicle information systems and networks 
          deployment.
Sec. 4127. Outreach and education.
Sec. 4128. Safety data improvement program.
Sec. 4129. Operation of commercial motor vehicles by individuals who use 
          insulin to treat diabetes mellitus.
Sec. 4130. Operators of vehicles transporting agricultural commodities 
          and farm supplies.
Sec. 4131. Maximum hours of service for operators of ground water well 
          drilling rigs.
Sec. 4132. Hours of service for operators of utility service vehicles.
Sec. 4133. Hours of service rules for operators providing transportation 
          to movie production sites.
Sec. 4134. Grant program for commercial motor vehicle operators.
Sec. 4135. CDL task force.
Sec. 4136. Interstate van operations.
Sec. 4137. Decals.
Sec. 4138. High risk carrier compliance reviews.
Sec. 4139. Foreign commercial motor vehicles.
Sec. 4140. School bus driver qualifications and endorsement knowledge 
          test.
Sec. 4141. Driveaway saddlemount vehicles.
Sec. 4142. Registration of motor carriers and freight forwarders.
Sec. 4143. Authority to stop commercial motor vehicles.
Sec. 4144. Motor Carrier Safety Advisory Committee.
Sec. 4145. Technical corrections.
Sec. 4146. Exemption during harvest periods.
Sec. 4147. Emergency condition requiring immediate response.
Sec. 4148. Substance abuse professionals.
Sec. 4149. Office of intermodalism.

               Subtitle B--Household Goods Transportation

Sec. 4201. Short title.
Sec. 4202. Definitions; application of provisions.
Sec. 4203. Payment of rates.
Sec. 4204. Additional registration requirements for motor carriers of 
          household goods.
Sec. 4205. Household goods carrier operations.
Sec. 4206. Enforcement of regulations related to transportation of 
          household goods.
Sec. 4207. Liability of carriers under receipts and bills of lading.
Sec. 4208. Arbitration requirements.
Sec. 4209. Civil penalties relating to household goods brokers and 
          unauthorized transportation.
Sec. 4210. Penalties for holding household goods hostage.
Sec. 4211. Consumer handbook on DOT web site.
Sec. 4212. Release of household goods broker information.
Sec. 4213. Working group for development of practices and procedures to 
          enhance Federal-State relations.
Sec. 4214. Consumer complaint information.
Sec. 4215. Review of liability of carriers.
Sec. 4216. Application of State consumer protection laws to certain 
          household goods carriers.

          Subtitle C--Unified Carrier Registration Act of 2005

Sec. 4301. Short title.
Sec. 4302. Relationship to other laws.
Sec. 4303. Inclusion of motor private and exempt carriers.
Sec. 4304. Unified Carrier Registration System.
Sec. 4305. Registration of motor carriers by States.
Sec. 4306. Identification of vehicles.
Sec. 4307. Use of UCR Agreement revenues as matching funds.
Sec. 4308. Regulations.

                  Subtitle D--Miscellaneous Provisions

Sec. 4401. Technical adjustment.
Sec. 4402. Transfer.
Sec. 4403. Extension of assistance.
Sec. 4404. Designations.
Sec. 4405. Limited exception.
Sec. 4406. Airport land amendment.
Sec. 4407. Rights-of-way.
Sec. 4408. Rialto Municipal Airport.
Sec. 4409. Conforming amendments.
Sec. 4410. Ralph M. Bartholomew Veterans' Memorial Bridge.
Sec. 4411. Don Young's Way.
Sec. 4412. Quality bank adjustments.
Sec. 4413. Technical amendment.

                            TITLE V--RESEARCH

                           Subtitle A--Funding

Sec. 5101. Authorization of appropriations.
Sec. 5102. Obligation ceiling.
Sec. 5103. Findings.

             Subtitle B--Research, Technology, and Education

Sec. 5201. Research, technology, and education.
Sec. 5202. Long-term bridge performance program; innovative bridge 
          research and deployment program.
Sec. 5203. Technology deployment.
Sec. 5204. Training and education.
Sec. 5205. State planning and research.
Sec. 5206. International highway transportation outreach program.
Sec. 5207. Surface transportation environment and planning cooperative 
          research program.
Sec. 5208. Transportation research and development strategic planning.
Sec. 5209. National cooperative freight transportation research program.
Sec. 5210. Future strategic highway research program.
Sec. 5211. Multistate corridor operations and management.

         Subtitle C--Intelligent Transportation System Research

Sec. 5301. National ITS program plan.
Sec. 5302. Use of funds.
Sec. 5303. Goals and purposes.
Sec. 5304. Infrastructure development.
Sec. 5305. General authorities and requirements.
Sec. 5306. Research and development.
Sec. 5307. National architecture and standards.
Sec. 5308. Road weather research and development program.
Sec. 5309. Centers for surface transportation excellence.
Sec. 5310. Definitions.

      Subtitle D--University Transportation Research; Scholarship 
                              Opportunities

Sec. 5401. National university transportation centers.
Sec. 5402. University transportation research.

                       Subtitle E--Other Programs

Sec. 5501. Transportation safety information management system project.
Sec. 5502. Surface transportation congestion relief solutions research 
          initiative.
Sec. 5503. Motor carrier efficiency study.
Sec. 5504. Center for Transportation Advancement and Regional 
          Development.
Sec. 5505. Transportation scholarship opportunities program.
Sec. 5506. Commercial remote sensing products and spatial information 
          technologies.
Sec. 5507. Rural interstate corridor communications study.
Sec. 5508. Transportation technology innovation and demonstration 
          program.
Sec. 5509. Repeal.
Sec. 5510. Notice.
Sec. 5511. Motorcycle crash causation study grants.
Sec. 5512. Advanced travel forecasting procedures program.
Sec. 5513. Research grants.
Sec. 5514. Competition for specification of alternative types of culvert 
          pipes.

             Subtitle F--Bureau of Transportation Statistics

Sec. 5601. Bureau of Transportation Statistics.

         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY

Sec. 6001. Transportation planning.
Sec. 6002. Efficient environmental reviews for project decisionmaking.
Sec. 6003. State assumption of responsibilities for certain programs and 
          projects.
Sec. 6004. State assumption of responsibility for categorical 
          exclusions.
Sec. 6005. Surface transportation project delivery pilot program.
Sec. 6006. Environmental restoration and pollution abatement; control of 
          noxious weeds and aquatic noxious weeds and establishment of 
          native species.
Sec. 6007. Exemption of Interstate System.
Sec. 6008. Integration of natural resource concerns into transportation 
          project planning.
Sec. 6009. Parks, recreation areas, wildlife and waterfowl refuges, and 
          historic sites.
Sec. 6010. Environmental review of activities that support deployment of 
          intelligent transportation systems.
Sec. 6011. Transportation conformity.
Sec. 6012. Federal Reference Method.
Sec. 6013. Air quality monitoring data influenced by exceptional events.
Sec. 6014. Federal procurement of recycled coolant.
Sec. 6015. Clean school bus program.
Sec. 6016. Special designation.
Sec. 6017. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.
Sec. 6018. Use of granular mine tailings.

              TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION

Sec. 7001. Short title.
Sec. 7002. Amendment of title 49, United States Code.

Subtitle A--General Authorities on Transportation of Hazardous Materials

Sec. 7101. Findings and purpose.
Sec. 7102. Definitions.
Sec. 7103. General regulatory authority.
Sec. 7104. Limitation on issuance of hazmat licenses.
Sec. 7105. Background checks for drivers hauling hazardous materials.
Sec. 7106. Representation and tampering.
Sec. 7107. Technical amendments.
Sec. 7108. Training of certain employees.
Sec. 7109. Registration.
Sec. 7110. Shipping papers and disclosure.
Sec. 7111. Rail tank cars.
Sec. 7112. Unsatisfactory safety ratings.
Sec. 7113. Training curriculum for the public sector.
Sec. 7114. Planning and training grants; Hazardous Materials Emergency 
          Preparedness Fund.
Sec. 7115. Special permits and exclusions.
Sec. 7116. Uniform forms and procedures.
Sec. 7117. International uniformity of standards and requirements.
Sec. 7118. Administrative authority.
Sec. 7119. Enforcement.
Sec. 7120. Civil penalty.
Sec. 7121. Criminal penalty.
Sec. 7122. Preemption.
Sec. 7123. Judicial review.
Sec. 7124. Relationship to other laws.
Sec. 7125. Authorization of appropriations.
Sec. 7126. References to the Secretary of Transportation.
Sec. 7127. Criminal matters.
Sec. 7128. Additional civil and criminal penalties.
Sec. 7129. Hazardous material transportation plan requirement.
Sec. 7130. Determining amount of undeclared shipments of hazardous 
          materials entering the United States.
Sec. 7131. Hazardous materials research projects.
Sec. 7132. National first responder transportation incident response 
          system.
Sec. 7133. Common carrier pipeline system.

                Subtitle B--Sanitary Food Transportation

Sec. 7201. Short title.
Sec. 7202. Responsibilities of Secretary of Health and Human Services.
Sec. 7203. Department of Transportation requirements.
Sec. 7204. Effective date.

      Subtitle C--Research and Innovative Technology Administration

Sec. 7301. Administrative authority.

       TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE

Sec. 8001. Discretionary spending limits for the highway and mass 
          transit categories.
Sec. 8002. Adjustments to align highway spending with revenues.
Sec. 8003. Level of obligation limitations.
Sec. 8004. Enforcement of guarantee.
Sec. 8005. Transfer of Federal transit administrative expenses.

                      TITLE IX--RAIL TRANSPORTATION

Sec. 9001. High-speed rail corridor development.
Sec. 9002. Capital grants for rail line relocation projects.
Sec. 9003. Rehabilitation and improvement financing.
Sec. 9004. Report regarding impact on public safety of train travel in 
          communities without grade separation.
Sec. 9005. Welded rail and tank car safety improvements.
Sec. 9006. Alaska Railroad.
Sec. 9007. Study of rail transportation and regulation.
Sec. 9008. Hawaii port infrastructure expansion program.

                    TITLE X--MISCELLANEOUS PROVISIONS

        Subtitle A--Sportfishing and Recreational Boating Safety

Sec. 10101. Short title.

    Chapter 1--Dingell-Johnson Sport Fish Restoration Act Amendments

Sec. 10111. Amendment of Dingell-Johnson Sport Fish Restoration Act.
Sec. 10112. Authorization of appropriations.
Sec. 10113. Division of annual appropriations.
Sec. 10114. Maintenance of projects.
Sec. 10115. Boating infrastructure.
Sec. 10116. Requirements and restrictions concerning use of amounts for 
          expenses for Administration.
Sec. 10117. Payments of funds to and cooperation with Puerto Rico, the 
          District of Columbia, Guam, American Samoa, the Commonwealth 
          of the Northern Mariana Islands, and the Virgin Islands.
Sec. 10118. Multistate conservation grant program.
Sec. 10119. Expenditure of remaining balance in Boat Safety Account.

             Chapter 2--Clean Vessel Act of 1992 Amendments

Sec. 10131. Grant program.

        Chapter 3--Recreational Boating Safety Program Amendments

Sec. 10141. Technical correction.
Sec. 10142. Availability of allocations.
Sec. 10143. Authorization of appropriations for State recreational 
          boating safety programs.

               Subtitle B--Other Miscellaneous Provisions

Sec. 10201. Notice regarding participation of small business concerns.
Sec. 10202. Emergency medical services.
Sec. 10203. Hubzone program.
Sec. 10204. Catastrophic hurricane evacuation plans.
Sec. 10205. Intermodal transportation facility expansion.
Sec. 10206. Eligibility to participate in western Alaska community 
          development quota program.
Sec. 10207. Rail rehabilitation and bridge repair.
Sec. 10208. Rented or leased motor vehicles.
Sec. 10209. Midway Island.
Sec. 10210. Demonstration of digital project simulation.
Sec. 10211. Environmental programs.
Sec. 10212. Rescission of unobligated balances.
Sec. 10213. Tribal land.

           Subtitle C--Specific Vehicle Safety-Related Rulings

Sec. 10301. Vehicle rollover prevention and crash mitigation.
Sec. 10302. Side-impact crash protection rulemaking.
Sec. 10303. Tire research.
Sec. 10304. Vehicle backover avoidance technology study.
Sec. 10305. Nontraffic incident data collection.
Sec. 10306. Study of safety belt use technologies.
Sec. 10307. Amendment of Automobile Information Disclosure Act.
Sec. 10308. Power window switches.
Sec. 10309. 15-Passenger van safety.
Sec. 10310. Authorization of appropriations.

     TITLE XI--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

Sec. 1100. Amendment of 1986 Code.

                 Subtitle A--Trust Fund Reauthorization

Sec. 1101. Extension of highway-related taxes and trust funds.
Sec. 1102. Modification of adjustments of apportionments.

            Subtitle B--Excise Tax Reform and Simplification

                      Part 1--Highway excise taxes

Sec. 1111. Modification of gas guzzler tax.
Sec. 1112. Exclusion for tractors weighing 19,500 pounds or less from 
          Federal excise tax on heavy trucks and trailers.
Sec. 1113. Volumetric excise tax credit for alternative fuels.

                      Part 2--Aquatic excise taxes

Sec. 1115. Elimination of Aquatic Resources Trust Fund and 
          transformation of Sport Fish Restoration Account.
Sec. 1116. Repeal of harbor maintenance tax on exports.
Sec. 1117. Cap on excise tax on certain fishing equipment.

                       Part 3--Aerial excise taxes

Sec. 1121. Clarification of excise tax exemptions for agricultural 
          aerial applicators and exemption for Fixed-Wing aircraft 
          engaged in forestry operations.
Sec. 1122. Modification of rural airport definition.
Sec. 1123. Exemption from taxes on transportation provided by seaplanes.
Sec. 1124. Certain sightseeing flights exempt from taxes on air 
          transportation.

                    Part 4--Taxes relating to alcohol

Sec. 1125. Repeal of special occupational taxes on producers and 
          marketers of alcoholic beverages.
Sec. 1126. Income tax credit for distilled spirits wholesalers and for 
          distilled spirits in control State bailment warehouses for 
          costs of carrying Federal excise taxes on bottled distilled 
          spirits.
Sec. 1127. Quarterly excise tax filing for small alcohol excise 
          taxpayers.

                       Part 5--Sport excise taxes

Sec. 1131. Custom gunsmiths.

                  Subtitle C--Miscellaneous Provisions

Sec. 1141. Motor Fuel Tax Enforcement Advisory Commission.
Sec. 1142. National Surface Transportation Infrastructure Financing 
          Commission.
Sec. 1143. Tax-exempt financing of highway projects and rail-truck 
          transfer facilities.
Sec. 1144. Treasury study of highway fuels used by trucks for non-
          transportation purposes.
Sec. 1145. Diesel fuel tax evasion report.
Sec. 1146. Tax treatment of State ownership of railroad real estate 
          investment trust.
Sec. 1147. Limitation on transfers to the Leaking Underground Storage 
          Tank Trust Fund.

            Subtitle D--Highway-Related Technical Corrections

Sec. 1151. Highway-related technical corrections.

                    Subtitle E--Preventing fuel fraud

Sec. 1161. Treatment of kerosene for use in aviation.
Sec. 1162. Repeal of ultimate vendor refund claims with respect to 
          farming.
Sec. 1163. Refunds of excise taxes on exempt sales of fuel by credit 
          card.
Sec. 1164. Reregistration in event of change in ownership.
Sec. 1165. Reconciliation of on-loaded cargo to entered cargo.
Sec. 1166. Treatment of deep-draft vessels.
Sec. 1167. Penalty with respect to certain adulterated fuels.

SEC. 2. GENERAL DEFINITIONS.

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

                     TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorization of Programs

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass 
Transit Account):
            (1) Interstate maintenance program.--For the 
        Interstate maintenance program under section 119 of 
        title 23, United States Code--
                    (A) $4,883,759,623 for fiscal year 2005;
                    (B) $4,960,788,917 for fiscal year 2006;
                    (C) $5,039,058,556 for fiscal year 2007;
                    (D) $5,118,588,513 for fiscal year 2008; 
                and
                    (E) $5,199,399,081 for fiscal year 2009.
            (2) National highway system.--For the National 
        Highway System under section 103 of such title--
                    (A) $5,911,200,104 for fiscal year 2005;
                    (B) $6,005,256,569 for fiscal year 2006;
                    (C) $6,110,827,556 for fiscal year 2007;
                    (D) $6,207,937,450 for fiscal year 2008; 
                and
                    (E) $6,306,611,031 for fiscal year 2009.
            (3) Bridge program.--For the bridge program under 
        section 144 of such title--
                    (A) $4,187,708,821 for fiscal year 2005;
                    (B) $4,253,530,131 for fiscal year 2006;
                    (C) $4,320,411,313 for fiscal year 2007;
                    (D) $4,388,369,431 for fiscal year 2008; 
                and
                    (E) $4,457,421,829 for fiscal year 2009.
            (4) Surface transportation program.--For the 
        surface transportation program under section 133 of 
        such title--
                    (A) $6,860,096,662 for fiscal year 2005;
                    (B) $6,269,833,394 for fiscal year 2006;
                    (C) $6,370,469,775 for fiscal year 2007;
                    (D) $6,472,726,628 for fiscal year 2008; 
                and
                    (E) $6,576,630,046 for fiscal year 2009.
            (5) Congestion mitigation and air quality 
        improvement program.--For the congestion mitigation and 
        air quality improvement program under section 149 of 
        such title--
                    (A) $1,667,255,304 for fiscal year 2005;
                    (B) $1,694,101,866 for fiscal year 2006;
                    (C) $1,721,380,718 for fiscal year 2007;
                    (D) $1,749,098,821 for fiscal year 2008; 
                and
                    (E) $1,777,263,247 for fiscal year 2009.
            (6) Highway safety improvement program.--For the 
        highway safety improvement program under section 148 of 
        such title--
                    (A) $1,235,810,000 for fiscal year 2006;
                    (B) $1,255,709,322 for fiscal year 2007;
                    (C) $1,275,929,067 for fiscal year 2008; 
                and
                    (D) $1,296,474,396 for fiscal year 2009.
            (7) Appalachian development highway system 
        program.--For the Appalachian development highway 
        system program under subtitle IV of title 40, United 
        States Code, $470,000,000 for each of fiscal years 2005 
        through 2009.
            (8) Recreational trails program.--For the 
        recreational trails program under section 206 of title 
        23, United States Code--
                    (A) $60,000,000 for fiscal year 2005;
                    (B) $70,000,000 for fiscal year 2006;
                    (C) $75,000,000 for fiscal year 2007;
                    (D) $80,000,000 for fiscal year 2008; and
                    (E) $85,000,000 for fiscal year 2009.
            (9) Federal lands highways program.--
                    (A) Indian reservation roads.--For Indian 
                reservation roads under section 204 of such 
                title--
                            (i) $300,000,000 for fiscal year 
                        2005;
                            (ii) $330,000,000 for fiscal year 
                        2006;
                            (iii) $370,000,000 for fiscal year 
                        2007;
                            (iv) 410,000,000 for fiscal year 
                        2008; and
                            (v) $450,000,000 for fiscal year 
                        2009.
                    (B) Park roads and parkways.--
                            (i) In general.--For park roads and 
                        parkways under section 204 of such 
                        title--
                                    (I) $180,000,000 for fiscal 
                                year 2005;
                                    (II) $195,000,000 for 
                                fiscal year 2006;
                                    (III) $210,000,000 for 
                                fiscal year 2007;
                                    (IV) $225,000,000 for 
                                fiscal year 2008; and
                                    (V) $240,000,000 for fiscal 
                                year 2009.
                            (ii) Minimum allocation to certain 
                        states.--A State containing more than 
                        50 percent of the total acreage of the 
                        National Park System shall receive not 
                        less than 3 percent of any funds 
                        appropriated under this subparagraph.
                    (C) Refuge roads.--For refuge roads under 
                section 204 of such title, $29,000,000 for each 
                of fiscal years 2005 through 2009.
                    (D) Public lands highways.--For Federal 
                lands highways under section 204 of such 
                title--
                            (i) $260,000,000 for fiscal year 
                        2005;
                            (ii) $280,000,000 for fiscal year 
                        2006;
                            (iii) $280,000,000 for fiscal year 
                        2007;
                            (iv) $290,000,000 for fiscal year 
                        2008; and
                            (v) $300,000,000 for fiscal year 
                        2009.
            (10) National corridor infrastructure improvement 
        program.--For the national corridor infrastructure 
        improvement program under section 1302 of this Act--
                    (A) $194,800,000 for fiscal year 2005;
                    (B) $389,600,000 for fiscal year 2006;
                    (C) $487,000,000 for fiscal year 2007;
                    (D) $487,000,000 for fiscal year 2008; and
                    (E) $389,600,000 for fiscal year 2009.
            (11) Coordinated border infrastructure program.--
        For the coordinated border infrastructure program under 
        section 1303 of this Act--
                    (A) $123,000,000 for fiscal year 2005;
                    (B) $145,000,000 for fiscal year 2006;
                    (C) $165,000,000 for fiscal year 2007;
                    (D) $190,000,000 for fiscal year 2008; and
                    (E) $210,000,000 for fiscal year 2009.
            (12) National scenic byways program.--For the 
        national scenic byways program under section 162 of 
        such title--
                    (A) $26,500,000 for fiscal year 2005;
                    (B) $30,000,000 for fiscal year 2006;
                    (C) $35,000,000 for fiscal year 2007;
                    (D) $40,000,000 for fiscal year 2008; and
                    (E) $43,500,000 for fiscal year 2009.
            (13) Construction of ferry boats and ferry terminal 
        facilities.--For construction of ferry boats and ferry 
        terminal facilities under section 147 of such title--
                    (A) $38,000,000 for fiscal year 2005;
                    (B) $55,000,000 for fiscal year 2006;
                    (C) $60,000,000 for fiscal year 2007;
                    (D) $65,000,000 for fiscal year 2008; and
                    (E) $67,000,000 for fiscal year 2009.
            (14) Puerto Rico highway program.--For the Puerto 
        Rico highway program under section 165 of such title--
                    (A) $115,000,000 for fiscal year 2005;
                    (B) $120,000,000 for fiscal year 2006;
                    (C) $135,000,000 for fiscal year 2007;
                    (D) $145,000,000 for fiscal year 2008; and
                    (E) $150,000,000 for fiscal year 2009.
            (15) Projects of national and regional significance 
        program.--For the projects of national and regional 
        significance program under section 1301 of this Act--
                    (A) $177,900,000 for fiscal year 2005;
                    (B) $355,800,000 for fiscal year 2006;
                    (C) $444,750,000 for fiscal year 2007;
                    (D) $444,750,000 for fiscal year 2008; and
                    (E) $355,800,000 for fiscal year 2009.
            (16) High priority projects program.--For the high 
        priority projects program under section 117 of title 
        23, United States Code, $2,966,400,000 for each of 
        fiscal years 2005 through 2009.
            (17) Safe routes to school program.--For the safe 
        routes to school program under section 1404 of this 
        Act--
                    (A) $54,000,000 for fiscal year 2005;
                    (B) $100,000,000 for fiscal year 2006;
                    (C) $125,000,000 for fiscal year 2007;
                    (D) $150,000,000 for fiscal year 2008; and
                    (E) $183,000,000 for fiscal year 2009.
            (18) Deployment of magnetic levitation 
        transportation projects.--For the deployment of 
        magnetic levitation projects under section 1307 of this 
        Act--
                    (A) $15,000,000 for each of fiscal years 
                2006 and 2007; and
                    (B) $30,000,000 for each of fiscal years 
                2008 and 2009.
            (19) National corridor planning and development and 
        coordinated border infrastructure programs.--For the 
        national corridor planning and development and 
        coordinated border infrastructure programs under 
        sections 1118 and 1119 of the Transportation Equity Act 
        for the 21st Century (112 Stat. 161, 163) $140,000,000 
        for fiscal year 2005.
            (20) Highways for life.--For the Highways for LIFE 
        Program under section 1502 of this Act--
                    (A) $15,000,000 for fiscal year 2006; and
                    (B) $20,000,000 for each of fiscal years 
                2007 through 2009.
            (21) Highway use tax evasion projects.--For highway 
        use tax evasion projects under section 1115 of this 
        Act--
                    (A) $5,000,000 for fiscal year 2005;
                    (B) $44,800,000 for fiscal year 2006;
                    (C) $53,300,000 for fiscal year 2007; and
                    (D) $12,000,000 for each of fiscal years 
                2008 and 2009.
    (b) Disadvantaged Business Enterprises.--
            (1) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Small business concern.--The term 
                ``small business concern'' has the meaning that 
                term has under section 3 of the Small Business 
                Act (15 U.S.C. 632), except that the term shall 
                not include any concern or group of concerns 
                controlled by the same socially and 
                economically disadvantaged individual or 
                individuals which has average annual gross 
                receipts over the preceding 3 fiscal years in 
                excess of $19,570,000, as adjusted annually by 
                the Secretary for inflation.
                    (B) Socially and economically disadvantaged 
                individuals.--The term ``socially and 
                economically disadvantaged individuals'' has 
                the meaning that term has under section 8(d) of 
                the Small Business Act (15 U.S.C. 637(d)) and 
                relevant subcontracting regulations issued 
                pursuant to that Act, except that women shall 
                be presumed to be socially and economically 
                disadvantaged individuals for purposes of this 
                subsection.
            (2) General rule.--Except to the extent that the 
        Secretary determines otherwise, not less than 10 
        percent of the amounts made available for any program 
        under titles I, III, and V of this Act and section 403 
        of title 23, United States Code, shall be expended 
        through small business concerns owned and controlled by 
        socially and economically disadvantaged individuals.
            (3) Annual listing of disadvantaged business 
        enterprises.--Each State shall annually--
                    (A) survey and compile a list of the small 
                business concerns referred to in paragraph (1) 
                and the location of the concerns in the State; 
                and
                    (B) notify the Secretary, in writing, of 
                the percentage of the concerns that are 
                controlled by women, by socially and 
                economically disadvantaged individuals (other 
                than women), and by individuals who are women 
                and are otherwise socially and economically 
                disadvantaged individuals.
            (4) Uniform certification.--The Secretary shall 
        establish minimum uniform criteria for State 
        governments to use in certifying whether a concern 
        qualifies for purposes of this subsection. The minimum 
        uniform criteria shall include, but not be limited to, 
        on-site visits, personal interviews, licenses, analysis 
        of stock ownership, listing of equipment, analysis of 
        bonding capacity, listing of work completed, resume of 
        principal owners, financial capacity, and type of work 
        preferred.
            (5) Compliance with court orders.--Nothing in this 
        subsection limits the eligibility of an entity or 
        person to receive funds made available under titles I, 
        III, and V of this Act and section 403 of title 23, 
        United States Code, if the entity or person is 
        prevented, in whole or in part, from complying with 
        paragraph (1) because a Federal court issues a final 
        order in which the court finds that the requirement of 
        paragraph (1), or the program established under 
        paragraph (1), is unconstitutional.

SEC. 1102. OBLIGATION CEILING.

    (a) General Limitation.--Subject to subsections (g) and 
(h), and notwithstanding any other provision of law, the 
obligations for Federal-aid highway and highway safety 
construction programs shall not exceed--
            (1) $34,422,400,000 for fiscal year 2005;
            (2) $36,032,343,903 for fiscal year 2006;
            (3) $38,244,210,516 for fiscal year 2007;
            (4) $39,585,075,404 for fiscal year 2008; and
            (5) $41,199,970,178 for fiscal year 2009.
    (b) Exceptions.--The limitations under subsection (a) shall 
not apply to obligations under or for--
            (1) section 125 of title 23, United States Code;
            (2) section 147 of the Surface Transportation 
        Assistance Act of 1978 (23 U.S.C. 144 note; 92 Stat. 
        2714);
            (3) section 9 of the Federal-Aid Highway Act of 
        1981 (Public Law 97-134; 95 Stat. 1701);
            (4) subsections (b) and (j) of section 131 of the 
        Surface Transportation Assistance Act of 1982 (Public 
        Law 97-424; 96 Stat. 2119);

            (5) subsections (b) and (c) of section 149 of the 
        Surface Transportation and Uniform Relocation 
        Assistance Act of 1987 (Public Law 100-17; 101 Stat. 
        198);
            (6) sections 1103 through 1108 of the Intermodal 
        Surface Transportation Efficiency Act of 1991 (Public 
        Law 102-240; 105 Stat. 2027);
            (7) section 157 of title 23, United States Code (as 
        in effect on June 8, 1998);
            (8) section 105 of title 23, United States Code (as 
        in effect for fiscal years 1998 through 2004, but only 
        in an amount equal to $639,000,000 for each of those 
        fiscal years);
            (9) Federal-aid highway programs for which 
        obligation authority was made available under the 
        Transportation Equity Act for the 21st Century (Public 
        Law 105-178; 112 Stat. 107) or subsequent public laws 
        for multiple years or to remain available until used, 
        but only to the extent that the obligation authority 
        has not lapsed or been used;
            (10) section 105 of title 23, United States Code 
        (but, for each of fiscal years 2005 through 2009, only 
        in an amount equal to $639,000,000 per fiscal year); 
        and
            (11) section 1603 of this Act, to the extent that 
        funds obligated in accordance with that section were 
        not subject to a limitation on obligations at the time 
        at which the funds were initially made available for 
        obligation.
    (c) Distribution of Obligation Authority.--For each of 
fiscal years 2005 through 2009, the Secretary--
            (1) shall not distribute obligation authority 
        provided by subsection (a) for the fiscal year for--
                    (A) amounts authorized for administrative 
                expenses and programs by section 104(a) of 
                title 23, United States Code;
                    (B) programs funded from the administrative 
                takedown authorized by section 104(a)(1) of 
                title 23, United States Code (as in effect on 
                the date before the date of enactment of this 
                Act); and
                    (C) amounts authorized for the highway use 
                tax evasion program and the Bureau of 
                Transportation Statistics;
            (2) shall not distribute an amount of obligation 
        authority provided by subsection (a) that is equal to 
        the unobligated balance of amounts made available from 
        the Highway Trust Fund (other than the Mass Transit 
        Account) for Federal-aid highway and highway safety 
        programs for previous fiscal years the funds for which 
        are allocated by the Secretary;
            (3) shall determine the ratio that--
                    (A) the obligation authority provided by 
                subsection (a) for the fiscal year, less the 
                aggregate of amounts not distributed under 
                paragraphs (1) and (2); bears to
                    (B) the total of the sums authorized to be 
                appropriated for the Federal-aid highway and 
                highway safety construction programs (other 
                than sums authorized to be appropriated for 
                provisions of law described in paragraphs (1) 
                through (9) of subsection (b) and sums 
                authorized to be appropriated for section 105 
                of title 23, United States Code, equal to the 
                amount referred to in subsection (b)(10) for 
                the fiscal year), less the aggregate of the 
                amounts not distributed under paragraphs (1) 
                and (2);
            (4)(A) shall distribute the obligation authority 
        provided by subsection (a) less the aggregate amounts 
        not distributed under paragraphs (1) and (2), for 
        sections 1301, 1302, and 1934 of this Act, sections 117 
        but individual for each of project numbered 1 through 
        3676 listed in the table contained in section 1702 of 
        this Act and 144(g) of title 23, United States Code, 
        and section 14501 of title 40, United States Code, and, 
        during fiscal year 2005, amounts for programs, 
        projects, and activities authorized by section 117 of 
        title I of division H of the Consolidated 
        Appropriations Act, 2005 (Public Law 108-447; 118 Stat. 
        3212), so that the amount of obligation authority 
        available for each of such sections is equal to the 
        amount determined by multiplying--
                    (i) the ratio determined under paragraph 
                (3); by
                    (ii) the sums authorized to be appropriated 
                for that section for the fiscal year; and
            (B) shall distribute $2,000,000,000 for section 105 
        of title 23, United States Code;
            (5) shall distribute among the States the 
        obligation authority provided by subsection (a), less 
        the aggregate amounts not distributed under paragraphs 
        (1) and (2), for each of the programs that are 
        allocated by the Secretary under this Act and title 23, 
        United States Code (other than to programs to which 
        paragraph (1) applies), by multiplying--
                    (A) the ratio determined under paragraph 
                (3); by
                    (B) the amounts authorized to be 
                appropriated for each such program for the 
                fiscal year; and
            (6) shall distribute the obligation authority 
        provided by subsection (a), less the aggregate amounts 
        not distributed under paragraphs (1) and (2) and the 
        amounts distributed under paragraphs (4) and (5), for 
        Federal-aid highway and highway safety construction 
        programs (other than the amounts apportioned for the 
        equity bonus program, but only to the extent that the 
        amounts apportioned for the equity bonus program for 
        the fiscal year are greater than $2,639,000,000, and 
        the Appalachian development highway system program) 
        that are apportioned by the Secretary under this Act 
        and title 23, United States Code, in the ratio that--
                    (A) amounts authorized to be appropriated 
                for the programs that are apportioned to each 
                State for the fiscal year; bear to
                    (B) the total of the amounts authorized to 
                be appropriated for the programs that are 
                apportioned to all States for the fiscal year.
    (d) Redistribution of Unused Obligation Authority.--
Notwithstanding subsection (c), the Secretary shall, after 
August 1 of each of fiscal years 2005 through 2009--
            (1) revise a distribution of the obligation 
        authority made available under subsection (c) if an 
        amount distributed cannot be obligated during that 
        fiscal year; and
            (2) redistribute sufficient amounts to those States 
        able to obligate amounts in addition to those 
        previously distributed during that fiscal year, giving 
        priority to those States having large unobligated 
        balances of funds apportioned under sections 104 and 
        144 of title 23, United States Code.
    (e) Applicability of Obligation Limitations to 
Transportation Research Programs.--
            (1) In general.--Except as provided in paragraph 
        (2), obligation limitations imposed by subsection (a) 
        shall apply to contract authority for transportation 
        research programs carried out under--
                    (A) chapter 5 of title 23, United States 
                Code; and
                    (B) title V (research title) of this Act.
            (2) Exception.--Obligation authority made available 
        under paragraph (1) shall--
                    (A) remain available for a period of 3 
                fiscal years; and
                    (B) be in addition to the amount of any 
                limitation imposed on obligations for Federal-
                aid highway and highway safety construction 
                programs for future fiscal years.
    (f) Redistribution of Certain Authorized Funds.--
            (1) In general.--Not later than 30 days after the 
        date of distribution of obligation authority under 
        subsection (c) for each of fiscal years 2005 through 
        2009, the Secretary shall distribute to the States any 
        funds that--
                    (A) are authorized to be appropriated for 
                the fiscal year for Federal-aid highway 
                programs; and
                    (B) the Secretary determines will not be 
                allocated to the States, and will not be 
                available for obligation, in the fiscal year 
                due to the imposition of any obligation 
                limitation for the fiscal year.
            (2) Ratio.--Funds shall be distributed under 
        paragraph (1) in the same ratio as the distribution of 
        obligation authority under subsection (c)(6).
            (3) Availability.--Funds distributed under 
        paragraph (1) shall be available for any purpose 
        described in section 133(b) of title 23, United States 
        Code.
    (g) Special Limitation Characteristics.--Obligation 
authority distributed for a fiscal year under subsection (c)(4) 
for the provision specified in subsection (c)(4) shall--
            (1) remain available until used for obligation of 
        funds for that provision; and
            (2) be in addition to the amount of any limitation 
        imposed on obligations for Federal-aid highway and 
        highway safety construction programs for future fiscal 
        years.
    (h) Adjustment in Obligation Limit.--
            (1) In general.--Subject to the last sentence of 
        section 110(a)(2) of title 23, United States Code, a 
        limitation on obligations imposed by subsection (a) for 
        a fiscal year shall be adjusted by an amount equal to 
        the amount determined in accordance with section 
        251(b)(1)(B) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)(B)) for 
        the fiscal year.
            (2) Distribution.--An adjustment under paragraph 
        (1) shall be distributed in accordance with this 
        section.
    (i) Special Rule for Fiscal Year 2005.--
            (1) In general.--Obligation authority distributed 
        under subsection (c)(4) for fiscal year 2005 for 
        sections 1301, 1302, and 1934 of this Act and sections 
        117 and 144(g) of title 23, United States Code, may be 
        used in fiscal year 2005 for purposes of obligation 
        authority distributed under subsection (c)(6).
            (2) Restoration.--Obligation authority used as 
        described in paragraph (1) shall be restored to the 
        original purpose on the date on which obligation 
        authority is distributed under this section for fiscal 
        year 2006.
    (j) High Priority Project Flexibility.--
            (1) In general.--Subject to paragraph (2), 
        obligation authority distributed for a fiscal year 
        under subsection (c)(4) for each project numbered 1 
        through 3676 listed in the table contained in section 
        1702 of this Act may be obligated for any other project 
        in such section in the same State.
            (2) Restoration.--Obligation authority used as 
        described in paragraph (1) shall be restored to the 
        original purpose on the date on which obligation 
        authority is distributed under this section for the 
        next fiscal year following obligation under paragraph 
        (1).
    (k) Limitation on Statutory Construction.--Nothing in this 
section shall be construed to limit the distribution of 
obligation authority under subsection (c)(4)(A) for each of the 
individual projects numbered greater than 3676 listed in the 
table contained in section 1702 of this Act.

SEC. 1103. APPORTIONMENTS.

    (a) Administrative Expenses.--
            (1) In general.--Section 104(a) of title 23, United 
        States Code, is amended to read as follows:
    ``(a) Administrative Expenses.--
            ``(1) In general.--There are authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to be made available to the 
        Secretary for administrative expenses of the Federal 
        Highway Administration--
                    ``(A) $353,024,000 for fiscal year 2005;
                    ``(B) $370,613,540 for fiscal year 2006;
                    ``(C) $389,079,500 for fiscal year 2007;
                    ``(D) $408,465,500 for fiscal year 2008; 
                and
                    ``(E) $423,717,460 for fiscal year 2009.
            ``(2) Purposes.--The funds authorized by this 
        subsection shall be used--
                    ``(A) to administer the provisions of law 
                to be financed from appropriations for the 
                Federal-aid highway program and programs 
                authorized under chapter 2; and
                    ``(B) to make transfers of such sums as the 
                Secretary determines to be appropriate to the 
                Appalachian Regional Commission for 
                administrative activities associated with the 
                Appalachian development highway system.
            ``(3) Availability.--The funds made available under 
        paragraph (1) shall remain available until expended.''.
            (2) Conforming amendments.--Section 104 of such 
        title is amended--
                    (A) in the matter preceding paragraph (1) 
                of subsection (b) by striking ``the deduction 
                authorized by subsection (a) and the set-aside 
                authorized by subsection (f)'' and inserting 
                ``the set-asides authorized by subsections (d) 
                and (f) and section 130(e)'';
                    (B) in the first sentence of subsection 
                (e)(1) by striking ``, and also'' and all that 
                follows through ``this section''; and
                    (C) in subsection (i) by striking 
                ``deducted'' and inserting ``made available''.
    (b) Alaska Highway.--Section 104(b)(1)(A) of such title is 
amended by striking ``$18,800,000 for each of fiscal years 1998 
through 2002'' and inserting ``$30,000,000 for each of fiscal 
years 2005 through 2009''.
    (c) National Highway System Component.--Section 
104(b)(1)(A) of such title is amended by striking ``$36,400,000 
for each fiscal year'' and inserting ``$40,000,000 for each of 
fiscal years 2005 and 2006 and $50,000,000 for each of fiscal 
years 2007 through 2009''.
    (d)  CMAQ Apportionment.--Section 104(b)(2) of such title 
is amended--
            (1) in subparagraph (B)--
                    (A) by striking clause (i) and inserting 
                the following:
                            ``(i) 1.0 if, at the time of 
                        apportionment, the area is a 
                        maintenance area;'';
                    (B) by striking ``or'' at the end of clause 
                (vi);
                    (C) by striking the period at the end of 
                clause (vii) and inserting ``; or''; and
                    (D) by adding at the end the following:
                            ``(viii) 1.0 if, at the time of 
                        apportionment, an area is designated as 
                        nonattainment for ozone under subpart 1 
                        of part D of title I of such Act (42 
                        U.S.C. 7512 et seq.).''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) Additional adjustment for carbon 
                monoxide areas.--If, in addition to being 
                designated as a nonattainment or maintenance 
                area for ozone as described in section 149(b), 
                any county within the area was also classified 
                under subpart 3 of part D of title I of the 
                Clean Air Act (42 U.S.C. 7512 et seq.) as a 
                nonattainment or maintenance area described in 
                section 149(b) for carbon monoxide, the 
                weighted nonattainment or maintenance area 
                population of the county, as determined under 
                clauses (i) through (vi) or clause (viii) of 
                subparagraph (B), shall be further multiplied 
                by a factor of 1.2.''.
    (e) Report.--Section 104(j) of such title is amended by 
striking ``submit to Congress a report'' and inserting ``submit 
to Congress a report, and also make such report available to 
the public in a user-friendly format via the Internet,''.
    (f) Operation Lifesaver.--Section 104(d) of such title is 
amended--
            (1) by striking paragraph (1) and all that follows 
        through the period at the end of paragraph (2)(A) and 
        inserting the following:
            ``(1) Operation lifesaver.--To carry out a public 
        information and education program to help prevent and 
        reduce motor vehicle accidents, injuries, and 
        fatalities and to improve driver performance at 
        railway-highway crossings--
                    ``(A) before making an apportionment under 
                subsection (b)(3) for fiscal year 2005, the 
                Secretary shall set aside $560,000 for such 
                fiscal year; and
                    ``(B) there is authorized to be 
                appropriated from the Highway Trust Fund (other 
                than the Mass Transit Account) $560,000 for 
                each of fiscal years 2006 through 2009.
            ``(2) Railway-highway crossing hazard elimination 
        in high speed rail corridors.--
                    ``(A) Funding.--To carry out the 
                elimination of hazards at railway-highway 
                crossings--
                            ``(i) before making an 
                        apportionment under subsection (b)(3) 
                        for fiscal year 2005, the Secretary 
                        shall set aside $5,250,000 for such 
                        fiscal year; and
                            ``(ii) there is authorized to be 
                        appropriated from the Highway Trust 
                        Fund (other than the Mass Transit 
                        Account) $7,250,000 for fiscal year 
                        2006, $10,000,000 for fiscal year 2007, 
                        $12,500,000 for fiscal year 2008, and 
                        $15,000,000 for fiscal year 2009.''; 
                        and
            (2) in paragraph (2)(E)--
                    (A) by striking ``Not less than $250,000 of 
                such set-aside'' and inserting ``Of such set-
                aside, not less than $250,000 for fiscal year 
                2005, $1,000,000 for fiscal year 2006, 
                $1,750,000 for fiscal year 2007, $2,250,000 for 
                fiscal year 2008, and $3,000,000 for fiscal 
                year 2009''; and
                    (B) by striking ``per fiscal year''.

SEC. 1104. EQUITY BONUS PROGRAM.

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

``Sec. 105. Equity bonus program

    ``(a) Program.--
            ``(1) In general.--Subject to subsections (c) and 
        (d), for each of fiscal years 2005 through 2009, the 
        Secretary shall allocate among the States amounts 
        sufficient to ensure that no State receives a 
        percentage of the total apportionments for the fiscal 
        year for the programs specified in paragraph (2) that 
        is less than the percentage calculated under subsection 
        (b).
            ``(2) Specific programs.--The programs referred to 
        in subsection (a) are--
                    ``(A) the Interstate maintenance program 
                under section 119;
                    ``(B) the national highway system program 
                under section 103;
                    ``(C) the highway bridge replacement and 
                rehabilitation program under section 144;
                    ``(D) the surface transportation program 
                under section 133;
                    ``(E) the highway safety improvement 
                program under section 148;
                    ``(F) the congestion mitigation and air 
                quality improvement program under section 149;
                    ``(G) metropolitan planning programs under 
                section 104(f);
                    ``(H) the high priority projects program 
                under section 117;
                    ``(I) the equity bonus program under this 
                section;
                    ``(J) the Appalachian development highway 
                system program under subtitle IV of title 40;
                    ``(K) the recreational trails program under 
                section 206;
                    ``(L) the safe routes to school program 
                under section 1404 of the SAFETEA-LU;
                    ``(M) the rail-highway grade crossing 
                program under section 130; and
                    ``(N) the coordinated border infrastructure 
                program under section 1303 of the SAFETEA-LU.
    ``(b) State Percentage.--
            ``(1) In general.--The percentage referred to in 
        subsection (a) for each State shall be--
                    ``(A) for each of fiscal years 2005 and 
                2006, 90.5 percent, for fiscal year 2007, 91.5 
                percent, and for each of fiscal years 2008 and 
                2009, 92 percent, of the quotient obtained by 
                dividing--
                            ``(i) the estimated tax payments 
                        attributable to highway users in the 
                        State paid into the Highway Trust Fund 
                        (other than the Mass Transit Account) 
                        in the most recent fiscal year for 
                        which data are available; by
                            ``(ii) the estimated tax payments 
                        attributable to highway users in all 
                        States paid into the Highway Trust Fund 
                        (other than the Mass Transit Account) 
                        for the fiscal year; or
                    ``(B) for a State with a total population 
                density of less than 40 persons per square mile 
                (as reported in the decennial census conducted 
                by the Federal Government in 2000) and of which 
                at least 1.25 percent of the total acreage is 
                under Federal jurisdiction, based on the report 
                of the General Services Administration entitled 
                `Federal Real Property Profile' and dated 
                September 30, 2004, a State with a total 
                population of less than 1,000,000 (as reported 
                in that decennial census), a State with a 
                median household income of less than $35,000 
                (as reported in that decennial census), a State 
                with a fatality rate during 2002 on Interstate 
                highways that is greater than 1 fatality for 
                each 100,000,000 vehicle miles traveled on 
                Interstate highways, or a State with an 
                indexed, State motor fuels excise tax rate 
                higher than 150 percent of the Federal motor 
                fuels excise tax rate as of the date of 
                enactment of the SAFETEA-LU, the greater of--
                            ``(i) the applicable percentage 
                        under subparagraph (A); or
                            ``(ii) the average percentage of 
                        the State's share of total 
                        apportionments for the period of fiscal 
                        years 1998 through 2003 for the 
                        programs specified in paragraph (2).
            ``(2) Specific programs.--The programs referred to 
        in paragraph (1)(B)(ii) are (as in effect on the day 
        before the date of enactment of the SAFETEA-LU)--
                    ``(A) the Interstate maintenance program 
                under section 119;
                    ``(B) the national highway system program 
                under section 103;
                    ``(C) the highway bridge replacement and 
                rehabilitation program under section 144;
                    ``(D) the surface transportation program 
                under section 133;
                    ``(E) the recreational trails program under 
                section 206;
                    ``(F) the high priority projects program 
                under section 117;
                    ``(G) the minimum guarantee provided under 
                this section;
                    ``(H) revenue aligned budget authority 
                amounts provided under section 110;
                    ``(I) the congestion mitigation and air 
                quality improvement program under section 149;
                    ``(J) the Appalachian development highway 
                system program under subtitle IV of title 40; 
                and
                    ``(K) metropolitan planning programs under 
                section 104(f).
    ``(c) Special Rules.--
            ``(1) Minimum combined allocation.--For each fiscal 
        year, before making the allocations under subsection 
        (a)(1), the Secretary shall allocate among the States 
        amounts sufficient to ensure that no State receives a 
        combined total of amounts allocated under subsection 
        (a)(1), apportionments for the programs specified in 
        subsection (a)(2), and amounts allocated under this 
        subsection, that is less than the following percentages 
        of the average for fiscal years 1998 through 2003 of 
        the annual apportionments for the State for all 
        programs specified in subsection (b)(2):
                    ``(A) For fiscal year 2005, 117 percent.
                    ``(B) For fiscal year 2006, 118 percent.
                    ``(C) For fiscal year 2007, 119 percent.
                    ``(D) For fiscal year 2008, 120 percent.
                    ``(E) For fiscal year 2009, 121 percent.
            ``(2) No negative adjustment.--No negative 
        adjustment shall be made under subsection (a)(1) to the 
        apportionment of any State.
    ``(d) Treatment of Funds.--
            ``(1) Programmatic distribution.--The Secretary 
        shall apportion the amounts made available under this 
        section that exceed $2,639,000,000 so that the amount 
        apportioned to each State under this paragraph for each 
        program referred to in subparagraphs (A) through (F) of 
        subsection (a)(2) is equal to the amount determined by 
        multiplying the amount to be apportioned under this 
        paragraph by the ratio that--
                    ``(A) the amount of funds apportioned to 
                each State for each program referred to in 
                subparagraphs (A) through (F) of subsection 
                (a)(2) for a fiscal year; bears to
                    ``(B) the total amount of funds apportioned 
                to such State for all such programs for such 
                fiscal year.
            ``(2) Remaining distribution.--The Secretary shall 
        administer the remainder of funds made available under 
        this section to the States in accordance with section 
        104(b)(3), except that paragraphs (1) through (3) of 
        section 133(d) shall not apply to amounts administered 
        pursuant to this paragraph.
    ``(e) Metro Planning Set Aside.--Notwithstanding section 
104(f), no set aside provided for under that section shall 
apply to funds allocated under this section.
    ``(f) Authorization of Appropriations.--There are 
authorized to be appropriated from the Highway Trust Fund 
(other than the Mass Transit Account) such sums as are 
necessary to carry out this section for each of fiscal years 
2005 through 2009.''.
    (b) Clerical Amendment.--The analysis for subchapter I of 
chapter 1 of such title is amended by striking the item 
relating to section 105 and inserting the following:

``105. Equity bonus program.''.

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY.

    (a) Allocation.--Section 110(a)(1) of title 23, United 
States Code, is amended--
            (1) by striking ``2000'' and inserting ``2007'';
            (2) by inserting after ``such fiscal year'' the 
        first place it appears: ``and the succeeding fiscal 
        year''.
    (b) Reduction.--Section 110(a)(2) of such title is 
amended--
            (1) by striking ``2000'' and inserting ``2007'';
            (2) by striking ``October 1 of the succeeding'' and 
        inserting ``October 15 of such'';
            (3) by inserting after ``Account)'' the following: 
        ``for such fiscal year and the succeeding fiscal 
        year''; and
            (4) by adding at the end the following: ``No 
        reduction under this paragraph and no reduction under 
        section 1102(h), and no reduction under title VIII or 
        any amendment made by title VIII, of the SAFETEA-LU 
        shall be made for a fiscal year if, as of October 1 of 
        such fiscal year the balance in the Highway Trust Fund 
        (other than the Mass Transit Account) exceeds 
        $6,000,000,000.''.
    (c) General Distribution.--Section 110(b)(1)(A) of such 
title is amended--
            (1) by striking ``minimum guarantee'' and inserting 
        ``equity bonus''; and
            (2) by striking ``Transportation Equity Act for the 
        21st Century'' and inserting ``SAFETEA-LU''.
    (d) Addition of Highway Safety Improvement Program.--
Section 110(c) of such title is amended by inserting ``the 
highway safety improvement program,'' after ``the surface 
transportation program,''.
    (e) Technical Amendment.--Section 110(b)(1)(A) of such 
title is amended by striking ``for'' the second place it 
appears.
    (f) Special Rule.--If the amount available pursuant to 
section 110 of title 23, United States Code, for fiscal year 
2007 is greater than zero, the Secretary shall--
            (1) determine the total amount necessary to 
        increase each State's rate of return (as determined 
        under section 105(b)(1)(A) of title 23, United States 
        Code) to 92 percent, excluding amounts provided under 
        this paragraph;
            (2) allocate to each State the lesser of--
                    (A) the amount computed for that State 
                under paragraph (1); or
                    (B) an amount determined by multiplying the 
                total amount calculated under section 110 of 
                title 23, United States Code, for fiscal year 
                2007 by the ratio that--
                            (i) the amount determined for such 
                        State under paragraph (1); bears to
                            (ii) the total amount computed for 
                        all States in paragraph (1); and
            (3) allocate amounts remaining in excess of the 
        amounts allocated in paragraph (2) to all States in 
        accordance with section 110 of title 23, United States 
        Code.

SEC. 1106. FUTURE INTERSTATE SYSTEM ROUTES.

    (a) Extension of Date.--Section 103(c)(4)(B)(ii) of title 
23, United States Code, is amended by striking ``12'' and 
inserting ``25''.
    (b) Removal of Designation.--Section 103(c)(4)(B)(iii) of 
such title is amended--
            (1) in subclause (I) by striking ``in the agreement 
        between the Secretary and the State or States''; and
            (2) by adding at the end the following:
                                    ``(III) Existing 
                                agreements.--An agreement 
                                described in clause (ii) that 
                                is entered into before the date 
                                of enactment of this subclause 
                                shall be deemed to include the 
                                25-year time limitation 
                                described in that clause, 
                                regardless of any earlier 
                                construction completion date in 
                                the agreement.''.

SEC. 1107. METROPOLITAN PLANNING.

    Section 104(f) of title 23, United States Code, is 
amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) Set-aside.--On October 1 of each fiscal year, 
        the Secretary shall set aside 1.25 percent of the funds 
        authorized to be appropriated for the Interstate 
        maintenance, national highway system, surface 
        transportation, congestion mitigation and air quality 
        improvement, and highway bridge replacement and 
        rehabilitation programs authorized under this title to 
        carry out the requirements of section 134.'';
            (2) in paragraph (2) by striking ``per centum'' and 
        inserting ``percent'';
            (3) in paragraph (3)--
                    (A) by striking ``The funds'' and inserting 
                the following:
                    ``(A) In general.--The funds''; and
                    (B) by striking ``These funds'' and all 
                that follows and inserting the following:
                    ``(B) Unused funds.--Any funds that are not 
                used to carry out section 134 may be made 
                available by a metropolitan planning 
                organization to the State to fund activities 
                under section 135.''; and
            (4) in paragraph (4)--
                    (A) by striking ``The distribution'' and 
                inserting the following:
                    ``(A) In general.--The distribution''; and
                    (B) by adding at the end the following:
                    ``(B) Reimbursement.--Not later than 30 
                days after the date of receipt by a State of a 
                request for reimbursement of expenditures made 
                by a metropolitan planning organization for 
                carrying out section 134, the State shall 
                reimburse, from funds distributed under this 
                paragraph to the metropolitan planning 
                organization by the State, the metropolitan 
                planning organization for those 
                expenditures.''.

SEC. 1108. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

    Section 104(k) of title 23, United States Code, is amended 
to read as follows:
    ``(k) Transfer of Highway and Transit Funds.--
            ``(1) Transfer of highway funds for transit 
        projects.--
                    ``(A) In general.--Subject to subparagraph 
                (B), funds made available for transit projects 
                or transportation planning under this title may 
                be transferred to and administered by the 
                Secretary in accordance with chapter 53 of 
                title 49.
                    ``(B) Non-federal share.--The provisions of 
                this title relating to the non-Federal share 
                shall apply to the funds transferred under 
                subparagraph (A).
            ``(2) Transfer of transit funds for highway 
        projects.--
                    ``(A) In general.--Subject to subparagraph 
                (B), funds made available for highway projects 
                or transportation planning under chapter 53 of 
                title 49 may be transferred to and administered 
                by the Secretary in accordance with this title.
                    ``(B) Non-federal share.--The provisions of 
                chapter 53 of title 49 relating to the non-
                Federal share shall apply to funds transferred 
                under subparagraph (A).
            ``(3) Transfer of funds among states or to federal 
        highway administration.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), the Secretary may, at the request 
                of a State, transfer funds apportioned or 
                allocated under this title to the State to 
                another State, or to the Federal Highway 
                Administration, for the purpose of funding 1 or 
                more projects that are eligible for assistance 
                with funds so apportioned or allocated.
                    ``(B) Apportionment.--The transfer shall 
                have no effect on any apportionment of funds to 
                a State under this section or section 105 or 
                144.
                    ``(C) Surface transportation program.--
                Funds that are apportioned or allocated to a 
                State under subsection (b)(3) and attributed to 
                an urbanized area of a State with a population 
                of over 200,000 individuals under section 
                133(d)(3) may be transferred under this 
                paragraph only if the metropolitan planning 
                organization designated for the area concurs, 
                in writing, with the transfer request.
            ``(4) Transfer of obligation authority.--Obligation 
        authority for funds transferred under this subsection 
        shall be transferred in the same manner and amount as 
        the funds for the projects that are transferred under 
        this subsection.''.

SEC. 1109. RECREATIONAL TRAILS.

    (a) Recreational Trails Program Formula.--Section 104(h) of 
title 23, United States Code, is amended--
            (1) in paragraph (1) by striking the first sentence 
        and inserting the following: ``Before apportioning sums 
        authorized to be appropriated to carry out the 
        recreational trails program under section 206, the 
        Secretary shall deduct for administrative, research, 
        technical assistance, and training expenses for such 
        program $840,000 for each of fiscal years 2005 through 
        2009.''; and
            (2) in paragraph (2) by striking ``After'' and all 
        that follows through ``remainder of the sums'' and 
        inserting ``The Secretary shall apportion the sums''.
    (b) Permissible Uses.--Section 206(d)(2) of such title is 
amended to read as follows:
            ``(2) Permissible uses.--Permissible uses of funds 
        apportioned to a State for a fiscal year to carry out 
        this section include--
                    ``(A) maintenance and restoration of 
                existing recreational trails;
                    ``(B) development and rehabilitation of 
                trailside and trailhead facilities and trail 
                linkages for recreational trails;
                    ``(C) purchase and lease of recreational 
                trail construction and maintenance equipment;
                    ``(D) construction of new recreational 
                trails, except that, in the case of new 
                recreational trails crossing Federal lands, 
                construction of the trails shall be--
                            ``(i) permissible under other law;
                            ``(ii) necessary and recommended by 
                        a statewide comprehensive outdoor 
                        recreation plan that is required by the 
                        Land and Water Conservation Fund Act of 
                        1965 (16 U.S.C. 460l-4 et seq.) and 
                        that is in effect;
                            ``(iii) approved by the 
                        administering agency of the State 
                        designated under subsection (c)(1); and
                            ``(iv) approved by each Federal 
                        agency having jurisdiction over the 
                        affected lands under such terms and 
                        conditions as the head of the Federal 
                        agency determines to be appropriate, 
                        except that the approval shall be 
                        contingent on compliance by the Federal 
                        agency with all applicable laws, 
                        including the National Environmental 
                        Policy Act of 1969 (42 U.S.C. 4321 et 
                        seq.), the Forest and Rangeland 
                        Renewable Resources Planning Act of 
                        1974 (16 U.S.C. 1600 et seq.), and the 
                        Federal Land Policy and Management Act 
                        of 1976 (43 U.S.C. 1701 et seq.);
                    ``(E) acquisition of easements and fee 
                simple title to property for recreational 
                trails or recreational trail corridors;
                    ``(F) assessment of trail conditions for 
                accessibility and maintenance;
                    ``(G) development and dissemination of 
                publications and operation of educational 
                programs to promote safety and environmental 
                protection, (as those objectives relate to 1 or 
                more of the use of recreational trails, 
                supporting non-law enforcement trail safety and 
                trail use monitoring patrol programs, and 
                providing trail-related training), but in an 
                amount not to exceed 5 percent of the 
                apportionment made to the State for the fiscal 
                year; and
                    ``(H) payment of costs to the State 
                incurred in administering the program, but in 
                an amount not to exceed 7 percent of the 
                apportionment made to the State for the fiscal 
                year.''.
    (c) Use of Apportionments.--Section 206(d)(3) of such title 
is amended--
            (1) by striking subparagraph (C);
            (2) by redesignating subparagraph (D) as 
        subparagraph (C); and
            (3) in subparagraph (C) (as so redesignated) by 
        striking ``(2)(F)'' and inserting ``(2)(H)''.
    (d) Federal Share.--Section 206(f) of such title is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and the Federal share of 
                the administrative costs of a State'' after 
                ``project''; and
                    (B) by striking ``not exceed 80 percent'' 
                and inserting ``be determined in accordance 
                with section 120(b)'';
            (2) in paragraph (2)(A) by striking ``80 percent 
        of'' and inserting ``the amount determined in 
        accordance with section 120(b) for'';
            (3) in paragraph (2)(B) by inserting ``sponsoring 
        the project'' after ``Federal agency'';
            (4) by striking paragraph (5);
            (5) by redesignating paragraph (4) as paragraph 
        (5);
            (6) in paragraph (5) (as so redesignated) by 
        striking ``80 percent'' and inserting ``the Federal 
        share as determined in accordance with section 
        120(b)''; and
            (7) by inserting after paragraph (3) the following:
            ``(4) Use of recreational trails program funds to 
        match other federal program funds.--Notwithstanding any 
        other provision of law, funds made available under this 
        section may be used toward the non-Federal matching 
        share for other Federal program funds that are--
                    ``(A) expended in accordance with the 
                requirements of the Federal program relating to 
                activities funded and populations served; and
                    ``(B) expended on a project that is 
                eligible for assistance under this section.''.
    (e) Planning and Environmental Assessment Costs Incurred 
Prior to Project Approval.--Section 206(h)(1) of such title is 
amended by adding at the end the following:
                    ``(C) Planning and environmental assessment 
                costs incurred prior to project approval.--The 
                Secretary may allow preapproval planning and 
                environmental compliance costs to be credited 
                toward the non-Federal share of the cost of a 
                project described in subsection (d)(2) (other 
                than subparagraph (H)) in accordance with 
                subsection (f), limited to costs incurred less 
                than 18 months prior to project approval.''.
    (f) Encouragement of Use of Youth Conservation or Service 
Corps.--The Secretary shall encourage the States to enter into 
contracts and cooperative agreements with qualified youth 
conservation or service corps to perform construction and 
maintenance of recreational trails under section 206 of title 
23, United States Code.

SEC. 1110. TEMPORARY TRAFFIC CONTROL DEVICES.

    (a) Standards.--Section 109(e) of title 23, United States 
Code, is amended--
            (1) by striking ``(e) No funds'' and inserting the 
        following:
    ``(e) Installation of Safety Devices.--
            ``(1) Highway and railroad grade crossings and 
        drawbridges.--No funds''; and
            (2) by adding at the end the following:
            ``(2) Temporary traffic control devices.--No funds 
        shall be approved for expenditure on any Federal-aid 
        highway, or highway affected under chapter 2, unless 
        proper temporary traffic control devices to improve 
        safety in work zones will be installed and maintained 
        during construction, utility, and maintenance 
        operations on that portion of the highway with respect 
        to which such expenditures are to be made. Installation 
        and maintenance of the devices shall be in accordance 
        with the Manual on Uniform Traffic Control Devices.''.
    (b) Letting of Contracts.--Section 112 of such title is 
amended--
            (1) by striking subsection (f);
            (2) by redesignating subsection (g) as subsection 
        (f); and
            (3) by adding at the end the following:
    ``(g) Temporary Traffic Control Devices.--
            ``(1) Issuance of regulations.--The Secretary, 
        after consultation with appropriate Federal and State 
        officials, shall issue regulations establishing the 
        conditions for the appropriate use of, and expenditure 
        of funds for, uniformed law enforcement officers, 
        positive protective measures between workers and 
        motorized traffic, and installation and maintenance of 
        temporary traffic control devices during construction, 
        utility, and maintenance operations.
            ``(2) Effects of regulations.--Based on regulations 
        issued under paragraph (1), a State shall--
                    ``(A) develop separate pay items for the 
                use of uniformed law enforcement officers, 
                positive protective measures between workers 
                and motorized traffic, and installation and 
                maintenance of temporary traffic control 
                devices during construction, utility, and 
                maintenance operations; and
                    ``(B) incorporate such pay items into 
                contract provisions to be included in each 
                contract entered into by the State with respect 
                to a highway project to ensure compliance with 
                section 109(e)(2).
            ``(3) Limitation.--Nothing in the regulations shall 
        prohibit a State from implementing standards that are 
        more stringent than those required under the 
        regulations.
            ``(4) Positive protective measures defined.--In 
        this subsection, the term `positive protective 
        measures' means temporary traffic barriers, crash 
        cushions, and other strategies to avoid traffic 
        accidents in work zones, including full road 
        closures.''.
    (c) Clarification of Date.--Section 109(g) of such title is 
amended in the first sentence by striking ``The Secretary'' and 
all that follows through ``of 1970'' and inserting ``Not later 
than January 30, 1971, the Secretary shall issue''.

SEC. 1111. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS.

    (a) In General.--Section 118(c)(1) of title 23, United 
States Code, is amended by striking ``$50,000,000'' and all 
that follows through ``2003'' and inserting ``$100,000,000 for 
each of fiscal years 2005 through 2009''.
    (b) Technical Amendments.--
            (1) Section 116.--Section 116(b) of such title is 
        amended by striking ``highway department'' and 
        inserting ``transportation department''.
            (2) Section 120.--Section 120(e) of such title is 
        amended in the first sentence by striking ``such 
        system'' and inserting ``such highway''.
            (3) Section 127.--Section 127(a) of such title is 
        amended by striking ``118(b)(1)'' and inserting 
        ``118(b)(2)''.
            (4) Bicycle and pedestrian safety grants.--Section 
        1212(i) of the Transportation Equity Act for the 21st 
        Century (112 Stat. 196-197) is amended by redesignating 
        subparagraphs (D) and (E) as paragraphs (2) and (3), 
        respectively, and moving such paragraphs 2 ems to the 
        left.

SEC. 1112. EMERGENCY RELIEF.

    There are authorized to be appropriated for each fiscal 
year such sums as may be necessary for allocations by the 
Secretary described in subsections (a) and (b) of section 125 
of title 23, United States Code, if the total of those 
allocations in such fiscal year are in excess of $100,000,000.

SEC. 1113. SURFACE TRANSPORTATION PROGRAM.

    (a) Program Eligibility.--Section 133(b) of title 23, 
United States Code, is amended--
            (1) in paragraph (6) by inserting ``, including 
        advanced truck stop electrification systems'' before 
        the period at the end; and
            (2) by inserting after paragraph (11) the 
        following:
            ``(12) Projects relating to intersections that--
                    ``(A) have disproportionately high accident 
                rates;
                    ``(B) have high levels of congestion, as 
                evidenced by--
                            ``(i) interrupted traffic flow at 
                        the intersection; and
                            ``(ii) a level of service rating 
                        that is not better than `F' during peak 
                        travel hours, calculated in accordance 
                        with the Highway Capacity Manual issued 
                        by the Transportation Research Board; 
                        and
                    ``(C) are located on a Federal-aid 
                highway.''.
    (b) Repeal of Safety Programs Set-Aside.--
            (1) Repeal.--Section 133(d)(1) of such title is 
        repealed.
            (2) Technical amendments.--Section 133(d) of such 
        title is amended--
                    (A) in the first sentence of paragraph 
                (3)(A)--
                            (i) by striking ``subparagraphs (C) 
                        and (D)'' and inserting ``subparagraph 
                        (C)''; and
                            (ii) by striking ``80 percent'' and 
                        inserting ``90 percent'';
                    (B) in paragraph (3)(B) by striking 
                ``tobe'' and inserting ``to be''; and
                    (C) in paragraph (3)--
                            (i) by striking subparagraph (C);
                            (ii) by redesignating subparagraphs 
                        (D) and (E) as subparagraphs (C) and 
                        (D), respectively; and
                            (iii) in subparagraph (C) (as 
                        redesignated by clause (ii)) by adding 
                        a period at the end.
            (3) Effective date.--Paragraph (1) and paragraph 
        (2)(A)(ii) of this subsection shall take effect October 
        1, 2005.
    (c) Transportation Enhancement Activities.--Effective 
October 1, 2005, section 133(d)(2) of such title is amended by 
striking ``10 percent'' and all that follows through ``section 
104(b)(3) for a fiscal year'' and inserting the following: ``In 
a fiscal year, the greater of 10 percent of the funds 
apportioned to a State under section 104(b)(3) for such fiscal 
year, or the amount set aside under this paragraph with respect 
to the State for fiscal year 2005,''.
    (d) Obligation Authority.--Section 133(f)(1) of such title 
is amended--
            (1) by striking ``1998 through 2000'' and inserting 
        ``2004 through 2006''; and
            (2) by striking ``2001 through 2003'' and inserting 
        ``2007 through 2009''.
    (e) Technical Correction.--Effective June 9, 1998, section 
1108(e) of the Transportation Equity Act for the 21st Century 
(112 Stat. 140) is amended by striking ``Section 133'' and 
inserting ``Section 133(f)''.

SEC. 1114. HIGHWAY BRIDGE PROGRAM.

    (a) Finding and Declaration.--Section 144(a) of title 23, 
United States Code, is amended to read as follows:
    ``(a) Finding and Declaration.--Congress finds and declares 
that it is in the vital interest of the United States that a 
highway bridge program be carried out to enable States to 
improve the condition of their highway bridges over waterways, 
other topographical barriers, other highways, and railroads 
through replacement and rehabilitation of bridges that the 
States and the Secretary determine are structurally deficient 
or functionally obsolete and through systematic preventive 
maintenance of bridges.''.
    (b) Participation.--Section 144(d) of such title is amended 
to read as follows:
    ``(d) Participation.--
            ``(1) Bridge replacement and rehabilitation.--On 
        application by a State or States to the Secretary for 
        assistance for a highway bridge that has been 
        determined to be eligible for replacement or 
        rehabilitation under subsection (b) or (c), the 
        Secretary may approve Federal participation in--
                    ``(A) replacing the bridge with a 
                comparable facility; or
                    ``(B) rehabilitating the bridge.
            ``(2) Types of assistance.--On application by a 
        State or States to the Secretary, the Secretary may 
        approve Federal assistance for any of the following 
        activities for a highway bridge that has been 
        determined to be eligible for replacement or 
        rehabilitation under subsection (b) or (c):
                    ``(A) Painting.
                    ``(B) Seismic retrofit.
                    ``(C) Systematic preventive maintenance.
                    ``(D) Installation of scour 
                countermeasures.
                    ``(E) Application of calcium magnesium 
                acetate, sodium acetate/formate, or other 
                environmentally acceptable, minimally corrosive 
                anti-icing and de-icing compositions.
            ``(3) Basis for determination.--The Secretary shall 
        determine the eligibility of highway bridges for 
        replacement or rehabilitation for each State based on 
        structurally deficient and functionally obsolete 
        highway bridges in the State.
            ``(4) Special rule for preventive maintenance.--
        Notwithstanding any other provision of this subsection, 
        a State may carry out a project under paragraph (2)(B), 
        (2)(C), or (2)(D) for a highway bridge without regard 
        to whether the bridge is eligible for replacement or 
        rehabilitation under this section.''.
    (c) Apportionment of Funds.--Section 144(e) of such title 
is amended--
            (1) in the third sentence by striking ``square 
        footage'' and inserting ``deck area'';
            (2) in the fourth sentence by striking ``the total 
        cost of deficient bridges in a State and in all States 
        shall be reduced by the total cost of any highway 
        bridges constructed under subsection (m) in such State, 
        relating to replacement of destroyed bridges and 
        ferryboat services, and,''; and
            (3) in the seventh sentence by striking ``for the 
        same period as funds apportioned for projects on the 
        Federal-aid primary system under this title'' and 
        inserting ``for the period specified in section 
        118(b)(2)''.
    (d) Off-System Bridges.--Section 144(g)(3) of such title is 
amended to read as follows:
            ``(3) Off-system bridges.--
                    ``(A) In general.--Not less than 15 percent 
                of the amount apportioned to each State in each 
                of fiscal years 2005 through 2009 shall be 
                expended for projects to replace, rehabilitate, 
                paint, perform systematic preventive 
                maintenance or seismic retrofit of, or apply 
                calcium magnesium acetate, sodium acetate/
                formate, or other environmentally acceptable, 
                minimally corrosive anti-icing and de-icing 
                compositions to, or install scour 
                countermeasures to, highway bridges located on 
                public roads, other than those on a Federal-aid 
                highway, or to complete the Warwick Intermodal 
                Station (including the construction of a people 
                mover between the Station and the T.F. Green 
                Airport).
                    ``(B) Reduction of expenditures.--The 
                Secretary, after consultation with State and 
                local officials, may reduce the requirement for 
                expenditure for bridges not on a Federal-aid 
                highway under subparagraph (A) with respect to 
                the State if the Secretary determines that the 
                State has inadequate needs to justify the 
                expenditure.''.
    (e) Bridge Set-Aside.--
            (1) Fiscal year 2005.--Section 144(g)(1)(C) of such 
        title is amended--
                    (A) in the subsection heading by striking 
                ``2003'' and inserting ``2005''; and
                    (B) in the first sentence by striking 
                ``2003'' and inserting ``2005''.
            (2) Fiscal years 2006 through 2009.--Effective 
        October 1, 2005, section 144(g) of such title (as 
        amended by subsection (d) of this section) is amended--
                    (A) by striking the subsection designation 
                and all that follows through the period at the 
                end of paragraph (2) and inserting the 
                following:
    ``(g) Bridge Set-Asides.--
            ``(1) Designated projects.--
                    ``(A) In general.--Of the amounts 
                authorized to be appropriated to carry out the 
                bridge program under this section for each of 
                the fiscal years 2006 through 2009, all but 
                $100,000,000 shall be apportioned as provided 
                in subsection (e). Such $100,000,000 shall be 
                available as follows:
                            ``(i) $12,500,000 per fiscal year 
                        for the Golden Gate Bridge.
                            ``(ii) $18,750,000 per fiscal year 
                        for the construction of a bridge 
                        joining the Island of Gravina to the 
                        community of Ketchikan in Alaska.
                            ``(iii) $12,500,000 per fiscal year 
                        to the State of Nevada for construction 
                        of a replacement of the federally owned 
                        bridge over the Hoover Dam in the Lake 
                        Mead National Recreation Area.
                            ``(iv) $12,500,000 per fiscal year 
                        to the State of Missouri for 
                        construction of a structure over the 
                        Mississippi River to connect the city 
                        of St. Louis, Missouri, to the State of 
                        Illinois.
                            ``(v) $12,500,000 per fiscal year 
                        for replacement and reconstruction of 
                        State maintained bridges in the State 
                        of Oklahoma.
                            ``(vi) $4,500,000 per fiscal year 
                        for replacement of the Missisquoi Bay 
                        Bridge, Vermont.
                            ``(vii) $8,000,000 per fiscal year 
                        for replacement and reconstruction of 
                        State-maintained bridges in the State 
                        of Vermont.
                            ``(viii) $8,750,000 per fiscal year 
                        for design, planning, and right-of-way 
                        acquisition for the Interstate Route 74 
                        bridge from Bettendorf, Iowa, to 
                        Moline, Illinois.
                            ``(ix) $10,000,000 per fiscal year 
                        for replacement and reconstruction of 
                        State-maintained bridges in the State 
                        of Oregon.
                    ``(B) Gravina access scoring.--The project 
                described in subparagraph (A)(ii) shall not be 
                counted for purposes of the reduction set forth 
                in the fourth sentence of subsection (e).
                    ``(C) Period of availability.--Amounts made 
                available to a State under this paragraph shall 
                remain available until expended.'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as 
                paragraph (2).
    (f) Continuation of Report; Federal Share.--Section 144 of 
such title is amended by adding at the end the following:
    ``(r) Annual Materials Report on New Bridge Construction 
and Bridge Rehabilitation.--Not later than 1 year after the 
date of enactment of this subsection, and annually thereafter, 
the Secretary shall publish in the Federal Register a report 
describing construction materials used in new Federal-aid 
bridge construction and bridge rehabilitation projects.
    ``(s) Federal Share.--
            ``(1) In general.--Except as provided under 
        paragraph (2), the Federal share of the cost of a 
        project payable from funds made available to carry out 
        this section shall be determined under section 120(b).
            ``(2) Interstate system.--The Federal share of the 
        cost of a project on the Interstate System payable from 
        funds made available to carry out this section shall be 
        determined under section 120(a).''.
    (g) Technical Amendment.--Section 144(i) of such title is 
amended by striking ``at the same time'' and all that follows 
through ``Congress''.

SEC. 1115. HIGHWAY USE TAX EVASION PROJECTS.

    (a) Eligible Activities.--
            (1) Intergovernmental enforcement efforts.--Section 
        143(b)(2) of title 23, United States Code, is amended 
        by inserting before the period the following: ``; 
        except that of funds so made available for each of 
        fiscal years 2005 through 2009, $2,000,000 shall be 
        available only to carry out intergovernmental 
        enforcement efforts, including research and training''.
            (2) Conditions on funds allocated to internal 
        revenue service.--Section 143(b)(3) of such title is 
        amended by striking ``The'' and inserting ``Except as 
        otherwise provided in this section, the''.
            (3) Limitation on use of funds.--Section 143(b)(4) 
        of such title is amended--
                    (A) by striking ``and'' at the end of 
                subparagraph (F);
                    (B) by striking the period at the end of 
                subparagraph (G) and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(H) to support efforts between States and 
                Indian tribes to address issues relating to 
                State motor fuel taxes; and
                    ``(I) to analyze and implement programs to 
                reduce tax evasion associated with foreign 
                imported fuel.''.
            (4) Reports.--Section 143(b) of such title is 
        amended by adding at the end the following:
            ``(9) Reports.--The Commissioner of the Internal 
        Revenue Service and each State shall submit to the 
        Secretary an annual report that describes the projects, 
        examinations, and criminal investigations funded by and 
        carried out under this section. Such report shall 
        specify the estimated annual yield from such projects, 
        examinations, and criminal investigations.''.
    (b) Excise Fuel Reporting System.--Section 143(c) of such 
title is amended to read as follows:
    ``(c) Excise Tax Fuel Reporting.--
            ``(1) In general.--Not later than 90 days after the 
        date of enactment of the SAFETEA-LU, the Secretary 
        shall enter into a memorandum of understanding with the 
        Commissioner of the Internal Revenue Service for the 
        purposes of--
                    ``(A) the additional development of 
                capabilities needed to support new reporting 
                requirements and databases established under 
                such Act and the American Jobs Creation Act of 
                2004 (P.L. 108-357), and such other reporting 
                requirements and database development as may be 
                determined by the Secretary, in consultation 
                with the Commissioner of the Internal Revenue 
                Service, to be useful in the enforcement of 
                fuel excise taxes, including provisions 
                recommended by the Fuel Tax Enforcement 
                Advisory Committee;
                    ``(B) the completion of requirements needed 
                for the electronic reporting of fuel 
                transactions from carriers and terminal 
                operators,
                    ``(C) the operation and maintenance of an 
                excise summary terminal activity reporting 
                system and other systems used to provide 
                strategic analyses of domestic and foreign 
                motor fuel distribution trends and patterns,
                    ``(D) the collection, analysis, and sharing 
                of information on fuel distribution and 
                compliance or noncompliance with fuel taxes, 
                and
                    ``(E) the development, completion, 
                operation, and maintenance of an electronic 
                claims filing system and database and an 
                electronic database of heavy vehicle highway 
                use payments.
            ``(2) Elements of memorandum of understanding.--The 
        memorandum of understanding shall provide that--
                    ``(A) the Internal Revenue Service shall 
                develop and maintain any system under paragraph 
                (1) through contracts,
                    ``(B) any system under paragraph (1) shall 
                be under the control of the Internal Revenue 
                Service, and
                    ``(C) any system under paragraph (1) shall 
                be made available for use by appropriate State 
                and Federal revenue, tax, and law enforcement 
                authorities, subject to section 6103 of the 
                Internal Revenue Code of 1986.
            ``(3) Funding.--Of the amounts made available to 
        carry out this section for each of fiscal years 2005 
        through 2009, the Secretary shall make available to the 
        Internal Revenue Service such funds as may be necessary 
        to complete, operate, and maintain the systems under 
        paragraph (1) in accordance with this subsection.
            ``(4) Reports.--Not later than September 30 of each 
        year, the Commissioner of the Internal Revenue Service 
        shall provide reports to the Secretary on the status of 
        the Internal Revenue Service projects funded under this 
        subsection.''.
    (c) Allocations.--Of the amounts authorized to be 
appropriated under section 1101(a)(21) of this Act for highway 
use tax evasion projects for each of the fiscal years 2005 
through 2009, the following amounts shall be allocated to the 
Internal Revenue Service to carry out section 143 of title 23, 
United States Code:
            (1) $5,000,000 for fiscal year 2005.
            (2) $44,800,000 for fiscal year 2006.
            (3) $53,300,000 for fiscal year 2007.
            (4) $12,000,000 for each of fiscal years 2008 and 
        2009.

SEC. 1116. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

    (a) Apportionment.--The Secretary shall apportion funds 
made available by section 1101(a)(7) of this Act for fiscal 
years 2005 through 2009 among the States based on the latest 
available cost to complete estimate for the Appalachian 
development highway system under section 14501 of title 40, 
United States Code.
    (b) Applicability of Title 23.--Funds made available by 
section 1101(a)(7) of this Act for the Appalachian development 
highway system shall be available for obligation in the same 
manner as if such funds were apportioned under chapter 1 of 
title 23, United States Code; except that the Federal share of 
the cost of any project under this section shall be determined 
in accordance with section 14501 of title 40, United States 
Code, and such funds shall be available to construct highways 
and access roads under such section and shall remain available 
until expended.
    (c) Use of Toll Credits.--Section 120(j)(1) of title 23, 
United States Code, is amended by inserting ``and the 
Appalachian development highway system program under section 
14501 of title 40'' after ``section 125''.

SEC. 1117. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM.

    (a) Establishment.--In cooperation with appropriate State, 
tribal, regional, and local governments, the Secretary shall 
establish a comprehensive program to address the relationships 
among transportation, community, and system preservation plans 
and practices and identify private sector-based initiatives to 
improve such relationships.
    (b) Purpose.--Through the program under this section, the 
Secretary shall facilitate the planning, development, and 
implementation of strategies to integrate transportation, 
community, and system preservation plans and practices that 
address 1 or more of the following:
            (1) Improve the efficiency of the transportation 
        system of the United States.
            (2) Reduce the impacts of transportation on the 
        environment.
            (3) Reduce the need for costly future investments 
        in public infrastructure.
            (4) Provide efficient access to jobs, services, and 
        centers of trade.
            (5) Examine community development patterns and 
        identify strategies to encourage private sector 
        development that achieves the purposes identified in 
        paragraphs (1) through (4).
    (c) General Authority.--The Secretary shall allocate funds 
made available to carry out this section to States, 
metropolitan planning organizations, local governments, and 
tribal governments to carry out eligible projects to integrate 
transportation, community, and system preservation plans and 
practices.
    (d) Eligibility.--A project described in subsection (c) is 
an eligible project under this section if the project--
            (1) is eligible for assistance under title 23 or 
        chapter 53 of title 49, United States Code; or
            (2) is to conduct any other activity relating to 
        transportation, community, and system preservation that 
        the Secretary determines to be appropriate, including 
        corridor preservation activities that are necessary to 
        implement 1 or more of the following:
                    (A) Transit-oriented development plans.
                    (B) Traffic calming measures.
                    (C) Other coordinated transportation, 
                community, and system preservation practices.
    (e) Criteria.--In allocating funds made available to carry 
out this section, the Secretary shall give priority 
consideration to applicants that--
            (1) have instituted preservation or development 
        plans and programs that--
                    (A) are coordinated with State and local 
                preservation or development plans, including 
                transit-oriented development plans;
                    (B) promote cost-effective and strategic 
                investments in transportation infrastructure 
                that minimize adverse impacts on the 
                environment; or
                    (C) promote innovative private sector 
                strategies;
            (2) have instituted other policies to integrate 
        transportation, community, and system preservation 
        practices, such as--
                    (A) spending policies that direct funds to 
                high-growth areas;
                    (B) urban growth boundaries to guide 
                metropolitan expansion;
                    (C) ``green corridors'' programs that 
                provide access to major highway corridors for 
                areas targeted for efficient and compact 
                development; or
                    (D) other similar programs or policies as 
                determined by the Secretary;
            (3) have preservation or development policies that 
        include a mechanism for reducing potential impacts of 
        transportation activities on the environment;
            (4) demonstrate a commitment to public and private 
        involvement, including the involvement of 
        nontraditional partners in the project team; and
            (5) examine ways to encourage private sector 
        investments that address the purposes of this section.
    (f) Equitable Distribution.--In allocating funds to carry 
out this section, the Secretary shall ensure the equitable 
distribution of funds to a diversity of populations and 
geographic regions.
    (g) Funding.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $25,000,000 for fiscal year 2005 and $61,250,000 for 
        each of fiscal years 2006, 2007, 2008, and 2009.
            (2) Contract authority.--Funds made available to 
        carry out this section shall be available for 
        obligation in the same manner as if the funds were 
        apportioned under chapter 1 of title 23, United States 
        Code; except that such funds shall not be transferable, 
        and the Federal share for projects and activities 
        carried out with such funds shall be determined in 
        accordance with section 120(b) of title 23, United 
        States Code.
    (h) Conforming Amendment.--Section 1221 of the 
Transportation Equity Act for the 21st Century (23 U.S.C. 101 
note; 112 Stat. 221) is repealed.

SEC. 1118. TERRITORIAL HIGHWAY PROGRAM.

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

``Sec. 215. Territorial highway program

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

``215. Territorial highway program.''.

SEC. 1119. FEDERAL LANDS HIGHWAYS.

    (a) Federal Share Payable.--
            (1) In general.--Section 120(k) of title 23, United 
        States Code, is amended--
                    (A) by striking ``Federal-aid highway''; 
                and
                    (B) by striking ``section 104'' and 
                inserting ``this title or chapter 53 of title 
                49''.
            (2) Technical references.--Section 120(l) of such 
        title is amended by striking ``section 104'' and 
        inserting ``this title or chapter 53 of title 49''.
    (b) Payments to Federal Agencies for Federal-Aid 
Projects.--Section 132 of such title is amended--
            (1) by striking the first 2 sentences and inserting 
        the following:
    ``(a) In General.--In a case in which a proposed Federal-
aid project is to be undertaken by a Federal agency in 
accordance with an agreement between a State and the Federal 
agency, the State may--
            ``(1) direct the Secretary to transfer the funds 
        for the Federal share of the project directly to the 
        Federal agency; or
            ``(2) make such deposit with, or payment to, the 
        Federal agency as is required to meet the obligation of 
        the State under the agreement for the work undertaken 
        or to be undertaken by the Federal agency.
    ``(b) Reimbursement.--On execution with a State of a 
project agreement described in subsection (a), the Secretary 
may reimburse the State, using any available funds, for the 
estimated Federal share under this title of the obligation of 
the State deposited or paid under subsection (a)(2).''; and
            (2) in the last sentence by striking ``Any sums'' 
        and inserting the following:
    ``(c) Recovery and Crediting of Funds.--Any sums''.
    (c)  Allocations.--Section 202 of such title is amended--
            (1) in subsection (a) by striking ``(a) On October 
        1'' and all that follows through ``Such allocation'' 
        and inserting the following:
    ``(a) Allocation Based on Need.--
            ``(1) In general.--On October 1 of each fiscal 
        year, the Secretary shall allocate sums authorized to 
        be appropriated for the fiscal year for forest 
        development roads and trails according to the relative 
        needs of the various national forests and grasslands.
            ``(2) Planning.--The allocation under paragraph 
        (1)'';
            (2) in subsection (d)(2)--
                    (A) by adding at the end the following:
                    ``(E) Transferred funds.--
                            ``(i) In general.--Not later than 
                        30 days after the date on which funds 
                        are made available to the Secretary of 
                        the Interior under this paragraph, the 
                        funds shall be distributed to, and 
                        available for immediate use by, the 
                        eligible Indian tribes, in accordance 
                        with the formula for distribution of 
                        funds under the Indian reservation 
                        roads program.
                            ``(ii) Use of funds.--
                        Notwithstanding any other provision of 
                        this section, funds available to Indian 
                        tribes for Indian reservation roads 
                        shall be expended on projects 
                        identified in a transportation 
                        improvement program approved by the 
                        Secretary.''; and
                    (B) in subsection (d)(3)(A) by striking 
                ``under this title'' and inserting ``under this 
                chapter and section 125(e)''.
    (d) Federal Lands Highways Program.--Section 202 of such 
title is amended by striking subsection (b) and inserting the 
following:
    ``(b) Allocation for Public Lands Highways.--
            ``(1) Public lands highways.--
                    ``(A) In general.--On October 1 of each 
                fiscal year, the Secretary shall allocate 34 
                percent of the sums authorized to be 
                appropriated for that fiscal year for public 
                lands highways among those States having 
                unappropriated or unreserved public lands, 
                nontaxable Indian lands, or other Federal 
                reservations, on the basis of need in the 
                States, respectively, as determined by the 
                Secretary, on application of the State 
                transportation departments of the respective 
                States.
                    ``(B) Preference.--In making the allocation 
                under subparagraph (A), the Secretary shall 
                give preference to those projects that are 
                significantly impacted by Federal land and 
                resource management activities that are 
                proposed by a State that contains at least 3 
                percent of the total public land in the United 
                States.
            ``(2) Forest highways.--
                    ``(A) In general.--On October 1 of each 
                fiscal year, the Secretary shall allocate 66 
                percent of the funds authorized to be 
                appropriated for public lands highways for 
                forest highways in accordance with section 134 
                of the Federal-Aid Highway Act of 1987 (23 
                U.S.C. 202 note; 101 Stat. 173).
                    ``(B) Public access to and within national 
                forest system.--In making the allocation under 
                subparagraph (A), the Secretary shall give 
                equal consideration to projects that provide 
                access to and within the National Forest 
                System, as identified by the Secretary of 
                Agriculture through--
                            ``(i) renewable resource and land 
                        use planning; and
                            ``(ii) assessments of the impact of 
                        that planning on transportation 
                        facilities.''.
    (e) BIA Administrative Expenses.--Section 202(d)(2) of such 
title (as amended by subsection (c)(2) of this section) is 
amended by adding at the end the following:
                    ``(F) Administrative expenses.--
                            ``(i) In general.--Of the funds 
                        authorized to be appropriated for 
                        Indian reservation roads, $20,000,000 
                        for fiscal year 2006, $22,000,000 for 
                        fiscal year 2007, $24,500,000 for 
                        fiscal year 2008, and $27,000,000 for 
                        fiscal year 2009 may be used by the 
                        Secretary of the Interior for program 
                        management and oversight and project-
                        related administrative expenses.
                            ``(ii) Health and safety 
                        assurances.--Notwithstanding any other 
                        provision of law, an Indian tribal 
                        government may approve plans, 
                        specifications, and estimates and 
                        commence road and bridge construction 
                        with funds made available for Indian 
                        reservation roads under the 
                        Transportation Equity Act for the 21st 
                        Century (Public Law 105-178) and 
                        SAFETEA-LU through a contract or 
                        agreement under the Indian Self-
                        Determination and Education Assistance 
                        Act (25 U.S.C. 450b et seq.) if the 
                        Indian tribal government--
                                    ``(I) provides assurances 
                                in the contract or agreement 
                                that the construction will meet 
                                or exceed applicable health and 
                                safety standards;
                                    ``(II) obtains the advance 
                                review of the plans and 
                                specifications from a State-
                                licensed civil engineer that 
                                has certified that the plans 
                                and specifications meet or 
                                exceed the applicable health 
                                and safety standards; and
                                    ``(III) provides a copy of 
                                the certification under 
                                subclause (I) to the Deputy 
                                Assistant Secretary for Tribal 
                                Government Affairs or the 
                                Assistant Secretary for Indian 
                                Affairs, as appropriate.''.
    (f) National Tribal Transportation Facility Inventory.--
Section 202(d)(2) of such title (as amended by subsection (e)) 
is amended by adding at the end the following:
                    ``(G) National tribal transportation 
                facility inventory.--
                            ``(i) In general.--Not later than 2 
                        years after the date of enactment of 
                        the SAFETEA-LU, the Secretary, in 
                        cooperation with the Secretary of the 
                        Interior, shall complete a 
                        comprehensive national inventory of 
                        transportation facilities that are 
                        eligible for assistance under the 
                        Indian reservation roads program.
                            ``(ii) Transportation facilities 
                        included in the inventory.--For 
                        purposes of identifying the tribal 
                        transportation system and determining 
                        the relative transportation needs among 
                        Indian tribes, the Secretary shall 
                        include, at a minimum, transportation 
                        facilities that are eligible for 
                        assistance under the Indian 
reservationroads program that a tribe has requested, including 
facilities that--
                                    ``(I) were included in the 
                                Bureau of Indian Affairs system 
                                inventory for funding formula 
                                purposes in 1992 or any 
                                subsequent fiscal year;
                                    ``(II) were constructed or 
                                reconstructed with funds from 
                                the Highway Trust Funds (other 
                                than the Mass Transit Account) 
                                under the Indian reservation 
                                roads program since 1983;
                                    ``(III) are owned by an 
                                Indian tribal government; or
                                    ``(IV) are community 
                                streets or bridges within the 
                                exterior boundary of Indian 
                                reservations, Alaska Native 
                                villages, and other recognized 
                                Indian communities (including 
                                communities in former Indian 
                                reservations in Oklahoma) in 
                                which the majority of residents 
                                are American Indians or Alaska 
                                Natives; or
                                    ``(V) are primary access 
                                routes proposed by tribal 
                                governments, including roads 
                                between villages, roads to 
                                landfills, roads to drinking 
                                water sources, roads to natural 
                                resources identified for 
                                economic development, and roads 
                                that provide access to 
                                intermodal termini, such as 
                                airports, harbors, or boat 
                                landings.
                            ``(iii) Limitation on primary 
                        access routes.--For purposes of this 
                        subparagraph, a proposed primary access 
                        route is the shortest practicable route 
                        connecting 2 points of the proposed 
                        route.
                            ``(iv) Additional facilities.--
                        Nothing in this subparagraph shall 
                        preclude the Secretary from including 
                        additional transportation facilities 
                        that are eligible for funding under the 
                        Indian reservation roads program in the 
                        inventory used for the national funding 
                        allocation if such additional 
                        facilities are included in the 
                        inventory in a uniform and consistent 
                        manner nationally.
                            ``(v) Report to congress.--Not 
                        later than 90 days after the date of 
                        completion of the inventory under this 
                        subparagraph, the Secretary shall 
                        prepare and submit a report to Congress 
                        that includes the data gathered and the 
                        results of the inventory.''.
    (g) Indian Reservation Road Bridges.--Section 202(d)(4) of 
such title is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``(B) Reservation.--Of the 
                amounts'' and all that follows through ``to 
                replace,'' and inserting the following:
                    ``(B) Funding.--
                            ``(i) Authorization of 
                        appropriations.--In addition to any 
                        other funds made available for Indian 
                        reservation roads for each fiscal year, 
                        there is authorized to be appropriated 
                        from the Highway Trust Fund (other than 
                        the Mass Transit Account) $14,000,000 
                        for each of fiscal years 2005 through 
                        2009 to carry out planning, design, 
                        engineering, preconstruction, 
                        construction, and inspection of 
                        projects to replace,''; and
                    (B) by adding at the end the following:
                            ``(ii) Availability.--Funds made 
                        available to carry out this 
                        subparagraph shall be available for 
                        obligation in the same manner as if 
                        such funds were apportioned under 
                        chapter 1.'';
            (2) in subparagraph (C) by striking clause (iii) 
        and inserting the following:
                            ``(iii) be structurally deficient 
                        or functionally obsolete; and''; and
            (3) by striking subparagraph (D) and inserting the 
        following:
                    ``(D) Approval requirement.--
                            ``(i) In general.--Subject to 
                        clause (ii), on request by an Indian 
                        tribe or the Secretary of the Interior, 
                        the Secretary may make funds available 
                        under this subsection for preliminary 
                        engineering for Indian reservation road 
                        bridge projects.
                            ``(ii) Construction and 
                        construction engineering.--The 
                        Secretary may make funds available 
                        under clause (i) for construction and 
                        construction engineering after approval 
                        of applicable plans, specifications, 
                        and estimates in accordance with this 
                        title.''.
            (4) Contracts and agreements with indian tribes.--
        Section 202(d) of such title is amended by adding at 
        the end the following:
            ``(5) Contracts and agreements with indian 
        tribes.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law or any interagency 
                agreement, program guideline, manual, or policy 
                directive, all funds made available to an 
                Indian tribal government under this chapter for 
                a highway, road, bridge, parkway, or transit 
                facility program or project that is located on 
                an Indian reservation or provides access to the 
                reservation or a community of the Indian tribe 
                shall be made available, on the request of the 
                Indian tribal government, to the Indian tribal 
                government for use in carrying out, in 
                accordance with the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 450 et 
                seq.), contracts and agreements for the 
                planning, research, design, engineering, 
                construction, and maintenance relating to the 
                program or project.
                    ``(B) Exclusion of agency participation.--
                In accordance with subparagraph (A), all funds 
                for a program or project to which subparagraph 
                (A) applies shall be paid to the Indian tribal 
                government without regard to the organizational 
                level at which the Department of the Interior 
                has previously carried out, or the Department 
                of Transportation has previously carried out 
                under the Federal lands highway programs, the 
                programs, functions, services, or activities 
                involved.
                    ``(C) Consortia.--Two or more Indian tribes 
                that are otherwise eligible to participate in a 
                program or project to which this chapter 
                applies may form a consortium to be considered 
                as a single Indian tribe for the purpose of 
                participating in the project under this 
                section.
                    ``(D) Secretary as signatory.--
                Notwithstanding any other provision of law, the 
                Secretary is authorized to enter into a funding 
                agreement with an Indian tribal government to 
                carry out a highway, road, bridge, parkway, or 
                transit program or project under subparagraph 
                (A) that is located on an Indian reservation or 
                provides access to the reservation or a 
                community of the Indian tribe.
                    ``(E) Funding.--The amount an Indian tribal 
                government receives for a program or project 
                under subparagraph (A) shall equal the sum of 
                the funding that the Indian tribal government 
                would otherwise receive for the program or 
                project in accordance with the funding formula 
                established under this subsection and such 
                additional amounts as the Secretary determines 
                equal the amounts that would have been withheld 
                for the costs of the Bureau of Indian Affairs 
                for administration of the program or project.
                    ``(F) Eligibility.--
                            ``(i) In general.--Subject to 
                        clause (ii), funds may be made 
                        available under subparagraph (A) to an 
                        Indian tribal government for a program 
                        or project in a fiscal year only if the 
                        Indian tribal government requesting 
                        such funds demonstrates to the 
                        satisfaction of the Secretary financial 
                        stability and financial management 
                        capability during the 3 fiscal years 
                        immediately preceding the fiscal year 
                        for which the request is being made.
                            ``(ii) Criteria for determining 
                        financial stability and financial 
                        management capability.--An Indian 
                        tribal government that had no 
                        uncorrected significant and material 
                        audit exceptions in the required annual 
                        audit of the Indian tribal government 
                        self-determination contracts or self-
                        governance funding agreements with any 
                        Federal agency during the 3-fiscal year 
                        period referred in clause (i) shall be 
                        conclusive evidence of the financial 
                        stability and financial management 
                        capability for purposes of clause (i).
                    ``(G) Assumption of functions and duties.--
                An Indian tribal government receiving funding 
                under subparagraph (A) for a program or project 
                shall assume all functions and duties that the 
                Secretary of the Interior would have performed 
                with respect to a program or project under this 
                chapter, other than those functions and duties 
                that inherently cannot be legally transferred 
                under the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b et 
                seq.).
                    ``(H) Powers.--An Indian tribal government 
                receiving funding under subparagraph (A) for a 
                program or project shall have all powers that 
                the Secretary of the Interior would have 
                exercised in administering the funds 
                transferred to the Indian tribal government for 
                such program or project under this section if 
                the funds had not been transferred, except to 
                the extent that such powers are powers that 
                inherently cannot be legally transferred under 
                the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b et seq.).
                    ``(I) Dispute resolution.--In the event of 
                a disagreement between the Secretary or the 
                Secretary of the Interior and an Indian tribe 
                over whether a particular function, duty, or 
                power may be lawfully transferred under the 
                Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b et seq.), the 
                Indian tribe shall have the right to pursue all 
                alternative dispute resolutions and appeal 
                procedures authorized by such Act, including 
                regulations issued to carry out such Act.
                    ``(J) Termination of contract or 
                agreement.--On the date of the termination of a 
                contract or agreement under this section by an 
                Indian tribal government, the Secretary shall 
                transfer all funds that would have been 
                allocated to the Indian tribal government under 
                the contract or agreement to the Secretary of 
                the Interior to provide continued 
                transportation services in accordance with 
                applicable law.''.
    (h) Planning and Agency Coordination.--Section 204 of such 
title is amended--
            (1) in subsection (a)(1) by inserting ``refuge 
        roads,'' after ``parkways,''; and
            (2) by striking subsection (b) and inserting the 
        following:
    ``(b) Use of Funds.--
            ``(1) In general.--Funds made available for public 
        lands highways, park roads and parkways, and Indian 
        reservation roads shall be used by the Secretary and 
        the Secretary of the appropriate Federal land 
        management agency to pay the cost of--
                    ``(A) transportation planning, research, 
                and engineering and construction of, highways, 
                roads, parkways, and transit facilities located 
                on public lands, national parks, and Indian 
                reservations; and
                    ``(B) operation and maintenance of transit 
                facilities located on public lands, national 
                parks, and Indian reservations.
            ``(2) Contract.--In connection with an activity 
        described in paragraph (1), the Secretary and the 
        Secretary of the appropriate Federal land management 
        agency may enter into a contract or other appropriate 
        agreement with respect to such activity with--
                    ``(A) a State (including a political 
                subdivision of a State); or
                    ``(B) an Indian tribe.
            ``(3) Indian reservation roads.--In the case of an 
        Indian reservation road--
                    ``(A) Indian labor may be employed, in 
                accordance with such rules and regulations as 
                may be promulgated by the Secretary of the 
                Interior, to carry out any construction or 
                other activity described in paragraph (1); and
                    ``(B) funds made available to carry out 
                this section may be used to pay bridge 
                preconstruction costs (including planning, 
                design, and engineering).
            ``(4) Federal employment.--No maximum limitation on 
        Federal employment shall be applicable to construction 
        or improvement of Indian reservation roads.
            ``(5) Availability of funds.--Funds made available 
        under this section for each class of Federal lands 
        highways shall be available for any transportation 
        project eligible for assistance under this title that 
        is within or adjacent to, or that provides access to, 
        the areas served by the particular class of Federal 
        lands highways.
            ``(6) Reservation of funds.--The Secretary of the 
        Interior may reserve funds from administrative funds of 
        the Bureau of Indian Affairs that are associated with 
        the Indian reservation roads program to finance Indian 
        technical centers under section 504(b).''.
    (i) Maintenance of Indian Reservation Roads.--Section 
204(c) of such title is amended by striking the second and 
third sentences and inserting the following: ``Notwithstanding 
any other provision of this title, of the amount of funds 
allocated for Indian reservation roads from the Highway Trust 
Fund, not more than 25 percent of the funds allocated to an 
Indian tribe may be expended for the purpose of maintenance, 
excluding road sealing which shall not be subject to any 
limitation. The Bureau of Indian Affairs shall continue to 
retain primary responsibility, including annual funding request 
responsibility, for road maintenance programs on Indian 
reservations. The Secretary shall ensure that funding made 
available under this subsection for maintenance of Indian 
reservation roads for each fiscal year is supplementary to and 
not in lieu of any obligation of funds by the Bureau of Indian 
Affairs for road maintenance programs on Indian 
reservations.''.
    (j) Refuge Roads.--Section 204(k)(1) of such title is 
amended--
            (1) in subparagraph (B)--
                    (A) by striking ``(2), (5),'' and inserting 
                ``(2), (3), (5),''; and
                    (B) by striking ``and'' after the 
                semicolon;
            (2) in subparagraph (C) by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(D) the non-Federal share of the cost of 
                any project funded under this title or chapter 
                53 of title 49 that provides access to or 
                within a wildlife refuge; and
                    ``(E) maintenance and improvement of 
                recreational trails; except that expenditures 
                on trails under this subparagraph shall not 
                exceed 5 percent of available funds for each 
                fiscal year.''.
    (k) Tribal-State Road Maintenance Agreements.--Section 204 
of such title is amended by adding at the end the following:
    ``(l) Tribal-State Road Maintenance Agreements.--
            ``(1) In general.--An Indian tribe and a State may 
        enter into a road maintenance agreement under which an 
        Indian tribe assumes the responsibilities of the State 
        for--
                    ``(A) Indian reservation roads; and
                    ``(B) roads providing access to Indian 
                reservation roads.
            ``(2) Tribal-state agreements.--Agreements entered 
        into under paragraph (1)--
                    ``(A) shall be negotiated between the State 
                and the Indian tribe; and
                    ``(B) shall not require the approval of the 
                Secretary.
            ``(3) Annual report.--Effective beginning with 
        fiscal year 2005, the Secretary shall prepare and 
        submit to Congress an annual report that identifies--
                    ``(A) the Indian tribes and States that 
                have entered into agreements under paragraph 
                (1);
                    ``(B) the number of miles of roads for 
                which Indian tribes have assumed maintenance 
                responsibilities; and
                    ``(C) the amount of funding transferred to 
                Indian tribes for the fiscal year under 
                agreements entered into under paragraph (1).''.
    (l) Deputy Assistant Secretary of Transportation for Tribal 
Government Affairs.--Section 102 of title 49, United States 
Code, is amended--
            (1) by redesignating subsections (f) and (g) as 
        subsections (g) and (h), respectively; and
            (2) by inserting after subsection (e) the 
        following:
    ``(f) Deputy Assistant Secretary for Tribal Government 
Affairs.--
            ``(1) Establishment.--In accordance with Federal 
        policies promoting Indian self determination, the 
        Department of Transportation shall have, within the 
        office of the Secretary, a Deputy Assistant Secretary 
        for Tribal Government Affairs appointed by the 
        President to plan, coordinate, and implement the 
        Department of Transportation policy and programs 
        serving Indian tribes and tribal organizations and to 
        coordinate tribal transportation programs and 
        activities in all offices and administrations of the 
        Department and to be a participant in any negotiated 
        rulemaking relating to, or having an impact on, 
        projects, programs, or funding associated with the 
        tribal transportation program.
            ``(2) Reservation of trust obligations.--
                    ``(A) Responsibility of secretary.--In 
                carrying out this title, the Secretary shall be 
                responsible to exercise the trust obligations 
                of the United States to Indians and Indian 
                tribes to ensure that the rights of a tribe or 
                individual Indian are protected.
                    ``(B) Preservation of united states 
                responsibility.--Nothing in this title shall 
                absolve the United States from any 
                responsibility to Indians and Indian tribes, 
                including responsibilities derived from the 
                trust relationship and any treaty, executive 
                order, or agreement between the United States 
                and an Indian tribe.''.
    (m) Forest Highways.--Of the amounts made available for 
public lands highways under section 1101--
            (1) not to exceed $20,000,000 per fiscal year may 
        be used for the maintenance of forest highways;
            (2) not to exceed $1,000,000 per fiscal year may be 
        used for signage identifying public hunting and fishing 
        access; and
            (3) not to exceed $10,000,000 per fiscal year shall 
        be used by the Secretary of Agriculture to pay the 
        costs of facilitating the passage of aquatic species 
        beneath roads in the National Forest System, including 
        the costs of constructing, maintaining, replacing, or 
        removing culverts and bridges, as appropriate.
    (n) Wildlife Vehicle Collision Reduction Study.--
            (1) In general.--The Secretary shall conduct a 
        study of methods to reduce collisions between motor 
        vehicles and wildlife (in this subsection referred to 
        as ``wildlife vehicle collisions'').
            (2) Contents.--
                    (A) Areas of study.--The study shall 
                include an assessment of the causes and impacts 
                of wildlife vehicle collisions and solutions 
                and best practices for reducing such 
                collisions.
                    (B) Methods for conducting the study.--In 
                carrying out the study, the Secretary shall--
                            (i) conduct a thorough literature 
                        review; and
                            (ii) survey current practices of 
                        the Department of Transportation.
            (3) Consultation.--In carrying out the study, the 
        Secretary shall consult with appropriate experts in the 
        field of wildlife vehicle collisions.
            (4) Report.--
                    (A) In general.--Not later than 2 years 
                after the date of enactment of this Act, the 
                Secretary shall submit to Congress a report on 
                the results of the study.
                    (B) Contents.--The report shall include a 
                description of each of the following:
                            (i) Causes of wildlife vehicle 
                        collisions.
                            (ii) Impacts of wildlife vehicle 
                        collisions.
                            (iii) Solutions to and prevention 
                        of wildlife vehicle collisions.
            (5) Manual.--
                    (A) Development.--Based upon the results of 
                the study, the Secretary shall develop a best 
                practices manual to support State efforts to 
                reduce wildlife vehicle collisions.
                    (B) Availability.--The manual shall be made 
                available to States not later than 1 year after 
                the date of transmission of the report under 
                paragraph (4).
                    (C) Contents.--The manual shall include, at 
                a minimum, the following:
                            (i) A list of best practices 
                        addressing wildlife vehicle collisions.
                            (ii) A list of information, 
                        technical, and funding resources for 
                        addressing wildlife vehicle collisions.
                            (iii) Recommendations for 
                        addressing wildlife vehicle collisions.
                            (iv) Guidance for developing a 
                        State action plan to address wildlife 
                        vehicle collisions.
            (6) Training.--Based upon the manual developed 
        under paragraph (5), the Secretary shall develop a 
        training course on addressing wildlife vehicle 
        collisions for transportation professionals.
    (o) Limitation on Applicability.--The requirements of the 
January 4, 2005, Federal Highway Administration, a final rule 
on the implementation of the Uniform Relocation Assistance and 
Real Property Acquisition policy Act of 1970 (42 U.S.C. 4601 et 
seq.) shall not apply to the voluntary conservation easement 
activities of the Department of Agriculture or the Department 
of the Interior.

SEC. 1120. PUERTO RICO HIGHWAY PROGRAM.

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

``Sec. 165. Puerto Rico highway program

    ``(a) In General.--The Secretary shall allocate funds made 
available to carry out this section for each of fiscal years 
2005 through 2009 to the Commonwealth of Puerto Rico to carry 
out a highway program in the Commonwealth.
    ``(b) Applicability of Title.--Amounts made available by 
section 1101(a)(14) of the SAFETEA-LU shall be available for 
obligation in the same manner as if such funds were apportioned 
under this chapter.
    ``(c) Treatment of Funds.--Amounts made available to carry 
out this section for a fiscal year shall be administered as 
follows:
            ``(1) Apportionment.--For the purpose of imposing 
        any penalty under this title or title 49, the amounts 
        shall be treated as being apportioned to Puerto Rico 
        under sections 104(b) and 144, for each program funded 
        under those sections in an amount determined by 
        multiplying--
                    ``(A) the aggregate of the amounts for the 
                fiscal year; by
                    ``(B) the ratio that--
                            ``(i) the amount of funds 
                        apportioned to Puerto Rico for each 
                        such program for fiscal year 1997; 
                        bears to
                            ``(ii) the total amount of funds 
                        apportioned to Puerto Rico for all such 
                        programs for fiscal year 1997.
            ``(2) Penalty.--The amounts treated as being 
        apportioned to Puerto Rico under each section referred 
        to in paragraph (1) shall be deemed to be required to 
        be apportioned to Puerto Rico under that section for 
        purposes of the imposition of any penalty under this 
        title or title 49.
    ``(d) Effect on Allocations and Apportionments.--Subject to 
subsection (c)(2), nothing in this section affects any 
allocation under section 105 and any apportionment under 
sections 104 and 144.''.
    (b) Conforming Amendment.--The analysis for subchapter I of 
chapter 1 of such title is amended by adding at the end the 
following:

``165. Puerto Rico highway program.''.

    (c) Definition of State.--For the purposes of apportioning 
funds under sections 104, 105, 130, 144, and 206 of title 23, 
United States Code, and section 1404, relating to the safe 
routes to school program, the term ``State'' means any of the 
50 States and the District of Columbia.

SEC. 1121. HOV FACILITIES.

    (a) In General.--Subchapter I of chapter 1 of title 23, 
United States Code (as amended by section 1120 of this Act), is 
amended by adding at the end the following:

``Sec. 166. HOV Facilities

    ``(a) In General.--
            ``(1) Authority of state agencies.--A State agency 
        that has jurisdiction over the operation of a HOV 
        facility shall establish the occupancy requirements of 
        vehicles operating on the facility.
            ``(2) Occupancy requirement.--Except as otherwise 
        provided by this section, no fewer than 2 occupants per 
        vehicle may be required for use of a HOV facility.
    ``(b) Exceptions.--
            ``(1) In general.--Notwithstanding the occupancy 
        requirement of subsection (a)(2), the exceptions in 
        paragraphs (2) through (5) shall apply with respect to 
        a State agency operating a HOV facility.
            ``(2) Motorcycles and bicycles.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the State agency shall allow motorcycles 
                and bicycles to use the HOV facility.
                    ``(B) Safety exception.--
                            ``(i) In general.--A State agency 
                        may restrict use of the HOV facility by 
                        motorcycles or bicycles (or both) if 
                        the agency certifies to the Secretary 
                        that such use would create a safety 
                        hazard and the Secretary accepts the 
                        certification.
                            ``(ii) Acceptance of 
                        certification.--The Secretary may 
                        accept a certification under this 
                        subparagraph only after the Secretary 
                        publishes notice of the certification 
                        in the Federal Register and provides an 
                        opportunity for public comment.
            ``(3) Public transportation vehicles.--The State 
        agency may allow public transportation vehicles to use 
        the HOV facility if the agency--
                    ``(A) establishes requirements for clearly 
                identifying the vehicles; and
                    ``(B) establishes procedures for enforcing 
                the restrictions on the use of the facility by 
                the vehicles.
            ``(4) High occupancy toll vehicles.--The State 
        agency may allow vehicles not otherwise exempt pursuant 
        to this subsection to use the HOV facility if the 
        operators of the vehicles pay a toll charged by the 
        agency for use of the facility and the agency--
                    ``(A) establishes a program that addresses 
                how motorists can enroll and participate in the 
                toll program;
                    ``(B) develops, manages, and maintains a 
                system that will automatically collect the 
                toll; and
                    ``(C) establishes policies and procedures 
                to--
                            ``(i) manage the demand to use the 
                        facility by varying the toll amount 
                        that is charged; and
                            ``(ii) enforce violations of use of 
                        the facility.
            ``(5) Low emission and energy-efficient vehicles.--
                    ``(A) Inherently low emission vehicle.--
                Before September 30, 2009, the State agency may 
                allow vehicles that are certified as inherently 
                low-emission vehicles pursuant to section 
                88.311-93 of title 40, Code of Federal 
                Regulations (or successor regulations), and are 
                labeled in accordance with section 88.312-93 of 
                such title (or successor regulations), to use 
                the HOV facility if the agency establishes 
                procedures for enforcing the restrictions on 
                the use of the facility by the vehicles.
                    ``(B) Other low emission and energy-
                efficient vehicles.--Before September 30, 2009, 
                the State agency may allow vehicles certified 
                as low emission and energy-efficient vehicles 
                under subsection (e), and labeled in accordance 
                with subsection (e), to use the HOV facility if 
                the operators of the vehicles pay a toll 
                charged by the agency for use of the facility 
                and the agency--
                            ``(i) establishes a program that 
                        addresses the selection of vehicles 
                        under this paragraph; and
                            ``(ii) establishes procedures for 
                        enforcing the restrictions on the use 
                        of the facility by the vehicles.
                    ``(C) Amount of tolls.--Under subparagraph 
                (B), a State agency may charge no toll or may 
                charge a toll that is less than tolls charged 
                under paragraph (3).
    ``(c) Requirements Applicable to Tolls.--
            ``(1) In general.--Tolls may be charged under 
        paragraphs (3) and (4) of subsection (b) 
        notwithstanding section 301 and, except as provided in 
        paragraphs (2) and (3), subject to the requirements of 
        section 129.
            ``(2) HOV facilities on the interstate system.--
        Notwithstanding section 129, tolls may be charged under 
        paragraphs (3) and (4) of subsection (b) on a HOV 
        facility on the Interstate System.
            ``(3) Excess toll revenues.--If a State agency 
        makes a certification under section 129(a)(3) with 
        respect to toll revenues collected under paragraphs (3) 
        and (4) of subsection (b), the State, in the use of 
        toll revenues under that sentence, shall give priority 
        consideration to projects for developing alternatives 
        to single occupancy vehicle travel and projects for 
        improving highway safety.
    ``(d) HOV Facility Management, Operation, Monitoring, and 
Enforcement.--
            ``(1) In general.--A State agency that allows 
        vehicles to use a HOV facility under paragraph (3) or 
        (4) of subsection (b) in a fiscal year shall certify to 
        the Secretary that the agency will carry out the 
        following responsibilities with respect to the facility 
        in the fiscal year:
                    ``(A) Establishing, managing, and 
                supporting a performance monitoring, 
                evaluation, and reporting program for the 
                facility that provides for continuous 
                monitoring, assessment, and reporting on the 
                impacts that the vehicles may have on the 
                operation of the facility and adjacent 
                highways.
                    ``(B) Establishing, managing, and 
                supporting an enforcement program that ensures 
                that the facility is being operated in 
                accordance with the requirements of this 
                section.
                    ``(C) Limiting or discontinuing the use of 
                the facility by the vehicles if the presence of 
                the vehicles has degraded the operation of the 
                facility.
            ``(2) Degraded facility.--
                    ``(A) Definition of minimum average 
                operating speed.--In this paragraph, the term 
                `minimum average operating speed' means--
                            ``(i) 45 miles per hour, in the 
                        case of a HOV facility with a speed 
                        limit of 50 miles per hour or greater; 
                        and
                            ``(ii) not more than 10 miles per 
                        hour below the speed limit, in the case 
                        of a HOV facility with a speed limit of 
                        less than 50 miles per hour.
                    ``(B) Standard for determining degraded 
                facility.--For purposes of paragraph (1), the 
                operation of a HOV facility shall be considered 
                to be degraded if vehicles operating on the 
                facility are failing to maintain a minimum 
                average operating speed 90 percent of the time 
                over a consecutive 180-day period during 
                morning or evening weekday peak hour periods 
                (or both).
                    ``(C) Management of low emission and 
                energy-efficient vehicles.--In managing the use 
                of HOV lanes by low emission and energy-
                efficient vehicles that do not meet applicable 
                occupancy requirements, a State agency may 
                increase the percentages described in 
                subsection (f)(3)(B)(i).
    ``(e) Certification of Low Emission and Energy-Efficient 
Vehicles.--Not later than 180 days after the date of enactment 
of this section, the Administrator of the Environmental 
Protection Agency shall--
            ``(1) issue a final rule establishing requirements 
        for certification of vehicles as low emission and 
        energy-efficient vehicles for purposes of this section 
        and requirements for the labeling of the vehicles; and
            ``(2) establish guidelines and procedures for 
        making the vehicle comparisons and performance 
        calculations described in subsection (f)(3)(B), in 
        accordance with section 32908(b) of title 49.
    ``(f) Definitions.--In this section, the following 
definitions apply:
            ``(1) Alternative fuel vehicle.--The term 
        `alternative fuel vehicle' means a vehicle that is 
        operating on--
                    ``(A) methanol, denatured ethanol, or other 
                alcohols;
                    ``(B) a mixture containing at least 85 
                percent of methanol, denatured ethanol, and 
                other alcohols by volume with gasoline or other 
                fuels;
                    ``(C) natural gas;
                    ``(D) liquefied petroleum gas;
                    ``(E) hydrogen;
                    ``(F) coal derived liquid fuels;
                    ``(G) fuels (except alcohol) derived from 
                biological materials;
                    ``(H) electricity (including electricity 
                from solar energy); or
                    ``(I) any other fuel that the Secretary 
                prescribes by regulation that is not 
                substantially petroleum and that would yield 
                substantial energy security and environmental 
                benefits, including fuels regulated under 
                section 490 of title 10, Code of Federal 
                Regulations (or successor regulations).
            ``(2) HOV facility.--The term `HOV facility' means 
        a high occupancy vehicle facility.
            ``(3) Low emission and energy-efficient vehicle.--
        The term `low emission and energy-efficient vehicle' 
        means a vehicle that--
                    ``(A) has been certified by the 
                Administrator as meeting the Tier II emission 
                level established in regulations prescribed by 
                the Administrator under section 202(i) of the 
                Clean Air Act (42 U.S.C. 7521(i)) for that make 
                and model year vehicle; and
                    ``(B)(i) is certified by the Administrator 
                of the Environmental Protection Agency, in 
                consultation with the manufacturer, to have 
                achieved not less than a 50-percent increase in 
                city fuel economy or not less than a 25-percent 
                increase in combined city-highway fuel economy 
                (or such greater percentage of city or city-
                highway fuel economy as may be determined by a 
                State under subsection (d)(2)(C)) relative to a 
                comparable vehicle that is an internal 
                combustion gasoline fueled vehicle (other than 
                a vehicle that has propulsion energy from 
                onboard hybrid sources); or
                    ``(ii) is an alternative fuel vehicle.
            ``(4) Public transportation vehicle.--The term 
        `public transportation vehicle' means a vehicle that--
                    ``(A) provides designated public 
                transportation (as defined in section 221 of 
                the Americans with Disabilities Act of 1990 (42 
                U.S.C. 12141) or provides public school 
                transportation (to and from public or private 
                primary, secondary, or tertiary schools); and
                    ``(B)(i) is owned or operated by a public 
                entity;
                    ``(ii) is operated under a contract with a 
                public entity; or
                    ``(iii) is operated pursuant to a license 
                by the Secretary or a State agency to provide 
                motorbus or school vehicle transportation 
                services to the public.
            ``(5) State agency.--
                    ``(A) In general.--The term `State agency', 
                as used with respect to a HOV facility, means 
                an agency of a State or local government having 
                jurisdiction over the operation of the 
                facility.
                    ``(B) Inclusion.--The term `State agency' 
                includes a State transportation department.''.
    (b) Conforming Amendments.--
            (1) Program efficiencies.--Section 102 of title 23, 
        United States Code, is amended--
                    (A) by striking subsection (a); and
                    (B) by redesignating subsections (b) and 
                (c) as subsections (a) and (b), respectively.
            (2) Chapter analysis.--The analysis for such 
        subchapter (as amended by section 1120 of this Act) is 
        amended by adding at the end the following:

``166. HOV facilities.''.

    (c) Sense of Congress.--It is the sense of Congress that 
the Secretary and the States should provide additional 
incentives (including the use of high occupancy vehicle lanes 
on State and Interstate highways) for the purchase and use of 
hybrid and other fuel efficient vehicles, which have been 
proven to minimize air emissions and decrease consumption of 
fossil fuels.

SEC. 1122. DEFINITIONS.

    (a) Transportation Enhancement Activity.--Section 
101(a)(35) of title 23, United States Code, is amended to read 
as follows:
            ``(35) Transportation enhancement activity.--The 
        term `transportation enhancement activity' means, with 
        respect to any project or the area to be served by the 
        project, any of the following activities as the 
        activities relate to surface transportation:
                    ``(A) Provision of facilities for 
                pedestrians and bicycles.
                    ``(B) Provision of safety and educational 
                activities for pedestrians and bicyclists.
                    ``(C) Acquisition of scenic easements and 
                scenic or historic sites (including historic 
                battlefields).
                    ``(D) Scenic or historic highway programs 
                (including the provision of tourist and welcome 
                center facilities).
                    ``(E) Landscaping and other scenic 
                beautification.
                    ``(F) Historic preservation.
                    ``(G) Rehabilitation and operation of 
                historic transportation buildings, structures, 
                or facilities (including historic railroad 
                facilities and canals).
                    ``(H) Preservation of abandoned railway 
                corridors (including the conversion and use of 
                the corridors for pedestrian or bicycle 
                trails).
                    ``(I) Inventory, control, and removal of 
                outdoor advertising.
                    ``(J) Archaeological planning and research.
                    ``(K) Environmental mitigation--
                            ``(i) to address water pollution 
                        due to highway runoff; or
                            ``(ii) reduce vehicle-caused 
                        wildlife mortality while maintaining 
                        habitat connectivity.
                    ``(L) Establishment of transportation 
                museums.''.
    (b) Advanced Truck Stop Electrification System.--Such 
section 101(a) is amended by adding at the end the following:
            ``(38) Advanced truck stop electrification 
        system.--The term `advanced truck stop electrification 
        system' means a system that delivers heat, air 
        conditioning, electricity, or communications to a heavy 
        duty vehicle.''.

                     Subtitle B--Congestion Relief

SEC. 1201. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish a 
        real-time system management information program to 
        provide, in all States, the capability to monitor, in 
        real-time, the traffic and travel conditions of the 
        major highways of the United States and to share that 
        information to improve the security of the surface 
        transportation system, to address congestion problems, 
        to support improved response to weather events and 
        surface transportation incidents, and to facilitate 
        national and regional highway traveler information.
            (2) Purposes.--The purposes of the real-time system 
        management information program are to--
                    (A) establish, in all States, a system of 
                basic real-time information for managing and 
                operating the surface transportation system;
                    (B) identify longer range real-time highway 
                and transit monitoring needs and develop plans 
                and strategies for meeting such needs; and
                    (C) provide the capability and means to 
                share that data with State and local 
                governments and the traveling public.
    (b) Data Exchange Formats.--Not later than 2 years after 
the date of enactment of this Act, the Secretary shall 
establish data exchange formats to ensure that the data 
provided by highway and transit monitoring systems, including 
statewide incident reporting systems, can readily be exchanged 
across jurisdictional boundaries, facilitating nationwide 
availability of information.
    (c) Regional Intelligent Transportation System 
Architecture.--
            (1) Addressing information needs.--As State and 
        local governments develop or update regional 
        intelligent transportation system architectures, 
        described in section 940.9 of title 23, Code of Federal 
        Regulations, such governments shall explicitly address 
        real-time highway and transit information needs and the 
        systems needed to meet such needs, including addressing 
        coverage, monitoring systems, data fusion and 
        archiving, and methods of exchanging or sharing highway 
        and transit information.
            (2) Data exchange.--States shall incorporate the 
        data exchange formats established by the Secretary 
        under subsection (b) to ensure that the data provided 
        by highway and transit monitoring systems may readily 
        be exchanged with State and local governments and may 
        be made available to the traveling public.
    (d) Eligibility.--Subject to project approval by the 
Secretary, a State may obligate funds apportioned to the State 
under sections 104(b)(1), 104(b)(2), and 104(b)(3) of title 23, 
United States Code, for activities relating to the planning and 
deployment of real-time monitoring elements that advance the 
goals and purposes described in subsection (a).
    (e) Limitation on Statutory Construction.--Nothing in this 
section shall be construed as altering or otherwise affecting 
the applicability of the requirements of chapter 1 of title 23, 
United States Code (including requirements relating to the 
eligibility of a project for assistance under the program, the 
location of the project, and the Federal-share payable on 
account of the project), to amounts apportioned to a State for 
a program under section 104(b) that are obligated by the State 
for activities and projects under this section.
    (f) Statewide Incident Reporting System Defined.--In this 
section, the term ``statewide incident reporting system'' means 
a statewide system for facilitating the real-time electronic 
reporting of surface transportation incidents to a central 
location for use in monitoring the event, providing accurate 
traveler information, and responding to the incident as 
appropriate.

                  Subtitle C--Mobility and Efficiency

SEC. 1301. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

    (a) Findings.--Congress finds the following:
            (1) Under current law, surface transportation 
        programs rely primarily on formula capital 
        apportionments to States.
            (2) Despite the significant increase for surface 
        transportation program funding in the Transportation 
        Equity Act of the 21st Century, current levels of 
        investment are insufficient to fund critical high-cost 
        transportation infrastructure facilities that address 
        critical national economic and transportation needs.
            (3) Critical high-cost transportation 
        infrastructure facilities often include multiple levels 
        of government, agencies, modes of transportation, and 
        transportation goals and planning processes that are 
        not easily addressed or funded within existing surface 
        transportation program categories.
            (4) Projects of national and regional significance 
        have national and regional benefits, including 
        improving economic productivity by facilitating 
        international trade, relieving congestion, and 
        improving transportation safety by facilitating 
        passenger and freight movement.
            (5) The benefits of projects described in paragraph 
        (4) accrue to local areas, States, and the Nation as a 
        result of the effect such projects have on the national 
        transportation system.
            (6) A program dedicated to constructing projects of 
        national and regional significance is necessary to 
        improve the safe, secure, and efficient movement of 
        people and goods throughout the United States and 
        improve the health and welfare of the national economy.
    (b) Establishment of Program.--The Secretary shall 
establish a program to provide grants to States for projects of 
national and regional significance.
    (c) Definitions.--In this section, the following 
definitions apply:
            (1) Eligible project costs.--The term ``eligible 
        project costs'' means the costs of--
                    (A) development phase activities, including 
                planning, feasibility analysis, revenue 
                forecasting, environmental review, preliminary 
                engineering and design work, and other 
                preconstruction activities; and
                    (B) construction, reconstruction, 
                rehabilitation, and acquisition of real 
                property (including land related to the project 
                and improvements to land), environmental 
                mitigation, construction contingencies, 
                acquisition of equipment, and operational 
                improvements.
            (2) Eligible project.--The term ``eligible 
        project'' means any surface transportation project 
        eligible for Federal assistance under title 23, United 
        States Code, including freight railroad projects and 
        activities eligible under such title.
            (3) State.--The term ``State'' has the meaning such 
        term has in section 101(a) of title 23, United States 
        Code.
    (d) Eligibility.--To be eligible for assistance under this 
section, a project shall have eligible project costs that are 
reasonably anticipated to equal or exceed the lesser of--
            (1) $500,000,000; or
            (2) 75 percent of the amount of Federal highway 
        assistance funds apportioned for the most recently 
        completed fiscal year to the State in which the project 
        is located.
    (e) Applications.--Each State seeking to receive a grant 
under this section for an eligible project shall submit to the 
Secretary an application in such form and in accordance with 
such requirements as the Secretary shall establish.
    (f) Competitive Grant Selection and Criteria for Grants.--
            (1) In general.--The Secretary shall--
                    (A) establish criteria for selecting among 
                projects that meet the eligibility criteria 
                specified in subsection (d);
                    (B) conduct a national solicitation for 
                applications; and
                    (C) award grants on a competitive basis.
            (2) Criteria for grants.--The Secretary may approve 
        a grant under this section for a project only if the 
        Secretary determines that the project--
                    (A) is based on the results of preliminary 
                engineering;
                    (B) is justified based on the ability of 
                the project--
                            (i) to generate national economic 
                        benefits, including creating jobs, 
                        expanding business opportunities, and 
                        impacting the gross domestic product;
                            (ii) to reduce congestion, 
                        including impacts in the State, region, 
                        and Nation;
                            (iii) to improve transportation 
                        safety, including reducing 
                        transportation accidents, injuries, and 
                        fatalities;
                            (iv) to otherwise enhance the 
                        national transportation system; and
                            (v) to garner support for non-
                        Federal financial commitments and 
                        provide evidence of stable and 
                        dependable financing sources to 
                        construct, maintain, and operate the 
                        infrastructure facility; and
                    (C) is supported by an acceptable degree of 
                non-Federal financial commitments, including 
                evidence of stable and dependable financing 
                sources to construct, maintain, and operate the 
                infrastructure facility.
            (3) Selection considerations.--In selecting a 
        project under this section, the Secretary shall 
        consider the extent to which the project--
                    (A) leverages Federal investment by 
                encouraging non-Federal contributions to the 
                project, including contributions from public-
                private partnerships;
                    (B) uses new technologies, including 
                intelligent transportation systems, that 
                enhance the efficiency of the project; and
                    (C) helps maintain or protect the 
                environment.
            (4) Preliminary engineering.--In evaluating a 
        project under paragraph (2)(A), the Secretary shall 
        analyze and consider the results of preliminary 
        engineering for the project.
            (5) Non-federal financial commitment.--
                    (A) Evaluation of project.--In evaluating a 
                project under paragraph (2)(C), the Secretary 
                shall require that--
                            (i) the proposed project plan 
                        provides for the availability of 
                        contingency amounts that the Secretary 
                        determines to be reasonable to cover 
                        unanticipated cost increases; and
                            (ii) each proposed non-Federal 
                        source of capital and operating 
                        financing is stable, reliable, and 
                        available within the proposed project 
                        timetable.
                    (B) Considerations.--In assessing the 
                stability, reliability, and availability of 
                proposed sources of non-Federal financing under 
                subparagraph (A), the Secretary shall 
                consider--
                            (i) existing financial commitments;
                            (ii) the degree to which financing 
                        sources are dedicated to the purposes 
                        proposed;
                            (iii) any debt obligation that 
                        exists or is proposed by the recipient 
                        for the proposed project; and
                            (iv) the extent to which the 
                        project has a non-Federal financial 
                        commitment that exceeds the required 
                        non-Federal share of the cost of the 
                        project.
            (6) Regulations.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        issue regulations on the manner in which the Secretary 
        will evaluate and rate the projects based on the 
        results of preliminary engineering, project 
        justification, and the degree of non-Federal financial 
        commitment, as required under this subsection.
            (7) Project evaluation and rating.--
                    (A) In general.--A proposed project may 
                advance from preliminary engineering to final 
                design and construction only if the Secretary 
                finds that the project meets the requirements 
                of this subsection and there is a reasonable 
                likelihood that the project will continue to 
                meet such requirements.
                    (B) Evaluation and rating.--In making such 
                findings, the Secretary shall evaluate and rate 
                the project as ``highly recommended'', 
                ``recommended'', or ``not recommended'' based 
                on the results of preliminary engineering, the 
                project justification criteria, and the degree 
                of non-Federal financial commitment, as 
                required under this subsection. In rating the 
                projects, the Secretary shall provide, in 
                addition to the overall project rating, 
                individual ratings for each of the criteria 
                established under the regulations issued under 
                paragraph (6).
    (g) Letters of Intent and Full Funding Grant Agreements.--
            (1) Letter of intent.--
                    (A) In general.--The Secretary may issue a 
                letter of intent to an applicant announcing an 
                intention to obligate, for a project under this 
                section, an amount from future available budget 
                authority specified in law that is not more 
                than the amount stipulated as the financial 
                participation of the Secretary in the project.
                    (B) Notification.--At least 60 days before 
                issuing a letter under subparagraph (A) or 
                entering into a full funding grant agreement, 
                the Secretary shall notify in writing the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives and the 
                Committee on Environment and Public Works of 
                the Senate of the proposed letter or agreement. 
                The Secretary shall include with the 
                notification a copy of the proposed letter or 
                agreement as well as the evaluations and 
                ratings for the project.
                    (C) Not an obligation.--The issuance of a 
                letter is deemed not to be an obligation under 
                sections 1108(c), 1108(d), 1501, and 1502(a) of 
                title 31, United States Code, or an 
                administrative commitment.
                    (D) Obligation or commitment.--An 
                obligation or administrative commitment may be 
                made only when contract authority is allocated 
                to a project.
            (2) Full funding grant agreement.--
                    (A) In general.--A project financed under 
                this subsection shall be carried out through a 
                full funding grant agreement. The Secretary 
                shall enter into a full funding grant agreement 
                based on the evaluations and ratings required 
                under subsection (f)(7).
                    (B) Terms.--If the Secretary makes a full 
                funding grant agreement with an applicant, the 
                agreement shall--
                            (i) establish the terms of 
                        participation by the United States 
                        Government in a project under this 
                        section;
                            (ii) establish the maximum amount 
                        of Government financial assistance for 
                        the project;
                            (iii) cover the period of time for 
                        completing the project, including a 
                        period extending beyond the period of 
                        an authorization; and
                            (iv) make timely and efficient 
                        management of the project easier 
                        according to the laws of the United 
                        States.
                    (C) Agreement.--An agreement under this 
                paragraph obligates an amount of available 
                budget authority specified in law and may 
                include a commitment, contingent on amounts to 
                be specified in law in advance for commitments 
                under this paragraph, to obligate an additional 
                amount from future available budget authority 
                specified in law. The agreement shall state 
                that the contingent commitment is not an 
                obligation of the Government. Interest and 
                other financing costs of efficiently carrying 
                out a part of the project within a reasonable 
                time are a cost of carrying out the project 
                under a full funding grant agreement, except 
                that eligible costs may not be more than the 
                cost of the most favorable financing terms 
                reasonably available for the project at the 
                time of borrowing. The applicant shall certify, 
                in a way satisfactory to the Secretary, that 
                the applicant has shown reasonable diligence in 
                seeking the most favorable financing terms.
            (3) Amounts.--The total estimated amount of future 
        obligations of the Government and contingent 
        commitments to incur obligations covered by all 
        outstanding letters of intent and full funding grant 
        agreements may be not more than the greater of the 
        amount authorized to carry out this section or an 
        amount equivalent to the last 2 fiscal years of funding 
        authorized to carry out this section less an amount the 
        Secretary reasonably estimates is necessary for grants 
        under this section not covered by a letter. The total 
        amount covered by new letters and contingent 
        commitments included in full funding grant agreements 
        may be not more than a limitation specified in law.
    (h) Grant Requirements.--
            (1) In general.--A grant for a project under this 
        section shall be subject to all of the requirements of 
        title 23, United States Code.
            (2) Other terms and conditions.--The Secretary 
        shall require that all grants under this section be 
        subject to all terms, conditions, and requirements that 
        the Secretary decides are necessary or appropriate for 
        purposes of this section, including requirements for 
        the disposition of net increases in value of real 
        property resulting from the project assisted under this 
        section.
    (i) Government's Share of Project Cost.--Based on 
engineering studies, studies of economic feasibility, and 
information on the expected use of equipment or facilities, the 
Secretary shall estimate the cost of a project receiving 
assistance under this section. A grant for the project is for 
80 percent of the project cost, unless the grant recipient 
requests a lower grant percentage. A refund or reduction of the 
remainder may be made only if a refund of a proportional amount 
of the grant of the Government is made at the same time.
    (j) Fiscal Capacity Considerations.--If the Secretary gives 
priority consideration to financing projects that include more 
than the non-Government share required under subsection (i) the 
Secretary shall give equal consideration to differences in the 
fiscal capacity of State and local governments.
    (k) Reports.--
            (1) Annual report.--Not later than the first Monday 
        in February of each year, the Secretary shall submit to 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives and the Committee on 
        Environment and Public Works of the Senate a report 
        that includes a proposal on the allocation of amounts 
        to be made available to finance grants under this 
        section.
            (2) Recommendations on funding.--The annual report 
        under this paragraph shall include evaluations and 
        ratings, as required under subsection (f). The report 
        shall also include recommendations of projects for 
        funding based on the evaluations and ratings and on 
        existing commitments and anticipated funding levels for 
        the next 3 fiscal years and for the next 10 fiscal 
        years based on information currently available to the 
        Secretary.
    (l) Applicability of Title 23.--Funds made available to 
carry out this section shall be available for obligation in the 
same manner as if such funds were apportioned under chapter 1 
of title 23, United States Code; except that such funds shall 
not be transferable and shall remain available until expended 
and the Federal share of the cost of a project under this 
section shall be as provided in this section.
    (m) Designated Projects.--Notwithstanding any other 
provision of this section, the Secretary shall allocate for 
each of fiscal years 2005 through 2009, from funds made 
available to carry out this section, 20 percent of the 
following amounts for grants to carry out the following 
projects under this section:


SEC. 1302. NATIONAL CORRIDOR INFRASTRUCTURE IMPROVEMENT PROGRAM.

    (a) In General.--The Secretary shall establish and 
implement a program to make allocations to States for highway 
construction projects in corridors of national significance to 
promote economic growth and international or interregional 
trade pursuant to the selection factors provided in this 
section. A State must submit an application to the Secretary in 
order to receive an allocation under this section.
    (b) Selection Process.--
            (1) Priority.--In the selection process under this 
        section, the Secretary shall give priority to projects 
        in corridors that are a part of, or will be designated 
        as part of, the Dwight D. Eisenhower National System of 
        Interstate and Defense Highways after completion of the 
        work described in the application received by the 
        Secretary and to any project that will be completed 
        within 5 years of the date of the allocation of funds 
        for the project.
            (2) Selection factors.--In making allocations under 
        this section, the Secretary shall consider the 
        following factors:
                    (A) The extent to which the corridor 
                provides a link between 2 existing segments of 
                the Interstate System.
                    (B) The extent to which the project will 
                facilitate major multistate or regional 
                mobility and economic growth and development in 
                areas underserved by existing highway 
                infrastructure.
                    (C) The extent to which commercial vehicle 
                traffic in the corridor--
                            (i) has increased since the date of 
                        enactment of the North American Free 
                        Trade Agreement Implementation Act (16 
                        U.S.C. 4401 et seq.); and
                            (ii) is projected to increase in 
                        the future.
                    (D) The extent to which international 
                truck-borne commodities move through the 
                corridor.
                    (E) The extent to which the project will 
                make improvements to an existing segment of the 
                Interstate System that will result in a 
                decrease in congestion.
                    (F) The reduction in commercial and other 
                travel time through a major freight corridor 
                expected as a result of the project.
                    (G) The value of the cargo carried by 
                commercial vehicle traffic in the corridor and 
                the economic costs arising from congestion in 
                the corridor.
                    (H) The extent of leveraging of Federal 
                funds provided to carry out this section, 
                including--
                            (i) use of innovative financing;
                            (ii) combination with funding 
                        provided under other sections of this 
                        Act and title 23, United States Code; 
                        and
                            (iii) combination with other 
                        sources of Federal, State, local, or 
                        private funding.
    (c) Applicability of Title 23.--Funds made available by 
section 1101(a)(10) of this Act to carry out this section shall 
be available for obligation in the same manner as if such funds 
were apportioned under chapter 1 of title 23, United States 
Code; except that such funds shall remain available until 
expended, and the Federal share of the cost of a project under 
this section shall be determined in accordance with section 120 
of such title.
    (d) State Defined.--In this section, the term ``State'' has 
the meaning such term has in section 101(a) of title 23, United 
States Code.
    (e) Designated Projects.--The Secretary shall allocate for 
each of fiscal years 2005 through 2009, from funds made 
available to carry out this section, 20 percent of the 
following amounts for grants to carry out the following 
projects under this section:


SEC. 1303. COORDINATED BORDER INFRASTRUCTURE PROGRAM.

    (a) General Authority.--The Secretary shall implement a 
coordinated border infrastructure program under which the 
Secretary shall distribute funds to border States to improve 
the safe movement of motor vehicles at or across the border 
between the United States and Canada and the border between the 
United States and Mexico.
    (b) Eligible Uses.--Subject to subsection (d), a State may 
use funds apportioned under this section only for--
            (1) improvements in a border region to existing 
        transportation and supporting infrastructure that 
        facilitate cross-border motor vehicle and cargo 
        movements;
            (2) construction of highways and related safety and 
        safety enforcement facilities in a border region that 
        facilitate motor vehicle and cargo movements related to 
        international trade;
            (3) operational improvements in a border region, 
        including improvements relating to electronic data 
        interchange and use of telecommunications, to expedite 
        cross-border motor vehicle and cargo movement;
            (4) modifications to regulatory procedures to 
        expedite safe and efficient cross border motor vehicle 
        and cargo movements; and
            (5) international coordination of transportation 
        planning, programming, and border operation with Canada 
        and Mexico relating to expediting cross-border motor 
        vehicle and cargo movements.
    (c) Apportionment of Funds.--On October 1 of each fiscal 
year, the Secretary shall apportion among border States sums 
authorized to be appropriated to carry out this section for 
such fiscal year as follows:
            (1) 20 percent in the ratio that--
                    (A) the total number of incoming commercial 
                trucks that pass through the land border ports 
                of entry within the boundaries of a border 
                State, as determined by the Secretary; bears to
                    (B) the total number of incoming commercial 
                trucks that pass through such ports of entry 
                within the boundaries of all the border States, 
                as determined by the Secretary.
            (2) 30 percent in the ratio that--
                    (A) the total number of incoming personal 
                motor vehicles and incoming buses that pass 
                through land border ports of entry within the 
                boundaries of a border State, as determined by 
                the Secretary; bears to
                    (B) the total number of incoming personal 
                motor vehicles and incoming buses that pass 
                through such ports of entry within the 
                boundaries of all the border States, as 
                determined by the Secretary.
            (3) 25 percent in the ratio that--
                    (A) the total weight of incoming cargo by 
                commercial trucks that pass through land border 
                ports of entry within the boundaries of a 
                border State, as determined by the Secretary; 
                bears to
                    (B) the total weight of incoming cargo by 
                commercial trucks that pass through such ports 
                of entry within the boundaries of all the 
                border States, as determined by the Secretary.
            (4) 25 percent of the ratio that--
                    (A) the total number of land border ports 
                of entry within the boundaries of a border 
                State, as determined by the Secretary; bears to
                    (B) the total number of land border ports 
                of entry within the boundaries of all the 
                border States, as determined by the Secretary.
    (d) Projects in Canada or Mexico.--A project in Canada or 
Mexico, proposed by a border State to directly and 
predominantly facilitate cross-border motor vehicle and cargo 
movements at an international port of entry into the border 
region of the State, may be constructed using funds apportioned 
to the State under this section if, before obligation of those 
funds, Canada or Mexico, or the political subdivision of Canada 
or Mexico that is responsible for the operation of the facility 
to be constructed, provides assurances satisfactory to the 
Secretary that any facility constructed under this subsection 
will be--
            (1) constructed in accordance with standards 
        equivalent to applicable standards in the United 
        States; and
            (2) properly maintained and used over the useful 
        life of the facility for the purpose for which the 
        Secretary is allocating such funds to the project.
    (e) Transfer of Funds to the General Services 
Administration.--
            (1) State funds.--At the request of a border State, 
        funds apportioned to the State under this section may 
        be transferred to the General Services Administration 
        for the purpose of funding 1 or more projects described 
        in subsection (b) if--
                    (A) the Secretary determines, after 
                consultation with the transportation department 
                of the border State, that the General Services 
                Administration should carry out the project; 
                and
                    (B) the General Services Administration 
                agrees to accept the transfer of, and to 
                administer, those funds in accordance with this 
                section.
            (2) Non-federal share.--
                    (A) In general.--A border State that makes 
                a request under paragraph (1) shall provide 
                directly to the General Services 
                Administration, for each project covered by the 
                request, the non-Federal share of the cost of 
                the project.
                    (B) No augmentation of appropriations.--
                Funds provided by a border State under 
                subparagraph (A)--
                            (i) shall not be considered to be 
                        an augmentation of the appropriations 
                        made available to the General Services 
                        Administration; and
                            (ii) shall be--
                                    (I) administered, subject 
                                to paragraph (1)(B), in 
                                accordance with the procedures 
                                of the General Services 
                                Administration; but
                                    (II) available for 
                                obligation in the same manner 
                                as if the funds were 
                                apportioned under chapter 1 of 
                                title 23, United States Code.
            (3) Obligation authority.--Obligation authority 
        shall be transferred to the General Services 
        Administration for a project in the same manner and 
        amount as the funds provided for the project under 
        paragraph (1).
            (4) Limitation on transfer of funds.--No State may 
        transfer to the General Services Administration under 
        this subsection an amount that is more than the lesser 
        of--
                    (A) 15 percent of the aggregate amount of 
                funds apportioned to the State under this 
                section for such fiscal year; or
                    (B) $5,000,000.
    (f) Applicability of Title 23.--Funds made available to 
carry out this section shall be available for obligation in the 
same manner as if such funds were apportioned under chapter 1 
of title 23, United States Code; except that, subject to 
subsection (e), such funds shall not be transferable and shall 
remain available until expended, and the Federal share of the 
cost of a project under this section shall be determined in 
accordance with section 120 of such title.
    (g) Definitions.--In this section, the following 
definitions apply:
            (1) Border region.--The term ``border region'' 
        means any portion of a border State within 100 miles of 
        an international land border with Canada or Mexico.
            (2) Border state.--The term ``border State'' means 
        any State that has an international land border with 
        Canada or Mexico.
            (3) Commercial truck.--The term ``commercial 
        truck'' means a commercial motor vehicle as defined in 
        section 31301(4) (other than subparagraph (B)) of title 
        49, United States Code.
            (4) Motor vehicle.--The term ``motor vehicle'' has 
        the meaning such term has under section 101(a) of title 
        23, United States Code.
            (5) State.--The term ``State'' has the meaning such 
        term has in section 101(a) of such title 23.

SEC. 1304. HIGH PRIORITY CORRIDORS ON THE NATIONAL HIGHWAY SYSTEM.

    (a) Evacuation Routes.--Section 1105(b) of the Intermodal 
Surface Transportation Efficiency Act of 1991 (Public Law 102-
240; 105 Stat. 2032) is amended in the first sentence by 
inserting ``and evacuation routes'' after ``corridors'' the 
first place it appears.
    (b) Corridors.--Section 1105(c) of the Intermodal Surface 
Transportation Efficiency Act of 1991 (105 Stat. 2032) is 
amended--
            (1) by striking paragraph (14) and inserting the 
        following:
            ``(14) Heartland Expressway from Denver, Colorado, 
        through Scottsbluff, Nebraska, to Rapid City, South 
        Dakota as follows:
                    ``(A) In the State of Colorado, the 
                Heartland Expressway Corridor shall generally 
                follow--
                            ``(i) Interstate 76 from Denver to 
                        Brush; and
                            ``(ii) Colorado Highway 71 from 
                        Limon to the border between the States 
                        of Colorado and Nebraska.
                    ``(B) In the State of Nebraska, the 
                Heartland Expressway Corridor shall generally 
                follow--
                            ``(i) Nebraska Highway 71 from the 
                        border between the States of Colorado 
                        and Nebraska to Scottsbluff;
                            ``(ii) United States Route 26 from 
                        Scottsbluff to the intersection with 
                        State Highway L62A;
                            ``(iii) State Highway L62A from the 
                        intersection with United States Route 
                        26 to United States Route 385 north of 
                        Bridgeport;
                            ``(iv) United States Route 385 to 
                        the border between the States of 
                        Nebraska and South Dakota; and
                            ``(v) United States Highway 26 from 
                        Scottsbluff to the border of the States 
                        of Nebraska and Wyoming.
                    ``(C) In the State of Wyoming, the 
                Heartland Expressway Corridor shall generally 
                follow United States Highway 26 from the border 
                of the States of Nebraska and Wyoming to the 
                termination at Interstate 25 at Interchange 
                number 94.
                    ``(D) In the State of South Dakota, the 
                Heartland Expressway Corridor shall generally 
                follow--
                            ``(i) United States Route 385 from 
                        the border between the States of 
                        Nebraska and South Dakota to the 
                        intersection with State Highway 79; and
                            ``(ii) State Highway 79 from the 
                        intersection with United States Route 
                        385 to Rapid City.'';
            (2) in paragraph (23) by inserting before the 
        period at the end the following: ``and the connection 
        from Wichita, Kansas, to Sioux City, Iowa, which 
        includes I-135 from Wichita, Kansas to Salina, Kansas, 
        United States Route 81 from Salina, Kansas, to Norfolk, 
        Nebraska, Nebraska State Route 35 from Norfolk, 
        Nebraska, to South Sioux City, Nebraska, and the 
        connection to I-29 in Sioux City, Iowa'';
            (3) in paragraph (33) by striking ``I-395'' and 
        inserting ``and including the I-395 corridor'';
            (4) by striking paragraph (34) and inserting the 
        following:
            ``(34) The Alameda Corridor-East and Southwest 
        Passage, California. The Alameda Corridor-East is 
        generally described as the corridor from East Los 
        Angeles (terminus of Alameda Corridor) through Los 
        Angeles, Orange, San Bernardino, and Riverside 
        Counties, to termini at Barstow in San Bernardino 
        County and Coachella in Riverside County. The Southwest 
        Passage shall follow I-10 from San Bernardino to the 
        Arizona State line.'';
            (5) by adding at the end the following:
            ``(46) Interstate Route 710 between the terminus at 
        Long Beach, California, to California State Route 60.
            ``(47) Interstate Route 87 from the Quebec border 
        to New York City.
            ``(48) The Route 50 High Plains Corridor along the 
        United States Route 50 corridor from Newton, Kansas, to 
        Pueblo, Colorado.
            ``(49) The Atlantic Commerce Corridor on Interstate 
        Route 95 from Jacksonville, Florida, to Miami, Florida.
            ``(50) The East-West Corridor commencing in 
        Watertown, New York, continuing northeast through New 
        York, Vermont, New Hampshire, and Maine, and 
        terminating in Calais, Maine.
            ``(51) The SPIRIT Corridor on United States Route 
        54 from El Paso, Texas, through New Mexico, Texas, and 
        Oklahoma to Wichita, Kansas.
            ``(52) The route in Arkansas running south of and 
        parallel to Arkansas State Highway 226 from the 
        relocation of United States Route 67 to the vicinity of 
        United States Route 49 and United States Route 63.
            ``(53) United States Highway Route 6 from 
        Interstate Route 70 to Interstate Route 15, Utah.
            ``(54) The California Farm-to-Market Corridor, 
        California State Route 99 from south of Bakersfield to 
        Sacramento, California.
            ``(55) In Texas, Interstate Route 20 from 
        Interstate Route 35E in Dallas County, east to the 
        intersection of Interstate Route 635, north to the 
        intersection of Interstate Route 30, northeast through 
        Texarkana to Little Rock, Arkansas, Interstate Route 40 
        northeast from Little Rock east to the proposed 
        Interstate Route 69 corridor.
            ``(56) In the State of Texas, the La Entrada al 
        Pacifico Corridor consisting of the following highways 
        and any portion of a highway in a corridor on 2 miles 
        of either side of the center line of the highway:
                    ``(A) State Route 349 from Lamesa to the 
                point on that highway that is closest to 32 
                degrees, 7 minutes, north latitude, by 102 
                degrees, 6 minutes, west longitude.
                    ``(B) The segment or any roadway extending 
                from the point described by subparagraph (A) to 
                the point on Farm-to-Market Road 1788 closest 
                to 32 degrees, 0 minutes, north latitude, by 
                102 degrees, 16 minutes, west longitude.
                    ``(C) Farm-to-Market Road 1788 from the 
                point described by subparagraph (B) to its 
                intersection with Interstate Route 20.
                    ``(D) Interstate Route 20 from its 
                intersection with Farm-to-Market Road 1788 to 
                its intersection with United States Route 385.
                    ``(E) United States Route 385 from Odessa 
                to Fort Stockton, including those portions that 
                parallel United States Route 67 and Interstate 
                Route 10.
                    ``(F) United States Route 67 from Fort 
                Stockton to Presidio, including those portions 
                that parallel Interstate Route 10 and United 
                States Route 90.
            ``(57) United States Route 41 corridor between 
        Interstate Route 94 via Interstate Route 894 and 
        Highway 45 near Milwaukee and Interstate Route 43 near 
        Green Bay in the State of Wisconsin.
            ``(58) The Theodore Roosevelt Expressway from Rapid 
        City, South Dakota, north on United States Route 85 to 
        Williston, North Dakota, west on United States Route 2 
        to Culbertson, Montana, and north on Montana Highway 16 
        to the international border with Canada at the port of 
        Raymond, Montana.
            ``(59) The Central North American Trade Corridor 
        from the border between North Dakota and South Dakota, 
        north on United States Route 83 through Bismark and 
        Minot, North Dakota, to the international border with 
        Canada.
            ``(60) The Providence Beltline Corridor beginning 
        at Interstate Route 95 in the vicinity of Hope Valley, 
        Rhode Island, traversing eastwardly intersecting and 
        merging into Interstate Route 295, continuing 
        northeastwardly along Interstate Route 95, and 
        terminating at the Massachusetts border, and including 
        the western bypass of Providence, Rhode Island, from 
        Interstate Route 295 to the Massachusetts border.
            ``(61) In the State of Missouri, the corridors 
        consisting of the following highways:
                    ``(A) Interstate Route 70, from Interstate 
                Route 29/35 to United States Route 61/Avenue of 
                the Saints.
                    ``(B) Interstate Route 72/United States 
                Route 36, from the intersection with Interstate 
                Route 29 to United States Route 61/Avenue of 
                the Saints.
                    ``(C) United States Route 67, from 
                Interstate Route 55 to the Arkansas State line.
                    ``(D) United States Route 65, from United 
                States Route 36/Interstate Route 72 to the 
                East-West TransAmerica corridor, at the 
                Arkansas State line.
                    ``(E) United States Route 63, from United 
                States Route 36 and the proposed Interstate 
                Route 72 to the East-West TransAmerica 
                corridor, at the Arkansas State line.
                    ``(F) United States Route 54, from the 
                Kansas State line to United States Route 61/
                Avenue of the Saints.
            ``(62) The Georgia Developmental Highway System 
        Corridors identified in section 32-4-22 of the Official 
        Code of Georgia, Annotated.
            ``(63) The Liberty Corridor, a corridor in an area 
        encompassing very critical and significant 
        transportation infrastructure providing regional, 
        national, and international access through the State of 
        New Jersey, including Interstate Routes 95, 80, 287, 
        and 78, and United States Routes 1, 3, 9, 17, and 46, 
        and portways and connecting infrastructure.
            ``(64) The corridor in an area of passage in the 
        State of New Jersey serving significant interstate and 
        regional traffic, located near the cities of Camden, 
        New Jersey, and Philadelphia, Pennsylvania, and 
        including Interstate Route 295, United States Route 42, 
        United States Route 130, and Interstate Route 676.
            ``(65) The Interstate Route 95 Corridor beginning 
        at the New York State line and continuing through 
        Connecticut to the Rhode Island State line.
            ``(66) The Interstate Route 91 Corridor from New 
        Haven, Connecticut, to the Massachusetts State line.
            ``(67) The Fairbanks-Yukon International Corridor 
        consisting of the portion of the Alaska Highway from 
        the international border with Canada to the Richardson 
        Highway, and the Richardson Highway from its junction 
        with the Alaska Highway to Fairbanks, Alaska.
            ``(68) The Washoe County corridor, along Interstate 
        Route 580/United States Route 95/United States Route 
        95A, from Reno, Nevada, to Las Vegas, Nevada.
            ``(69) The Cross Valley Connector connecting 
        Interstate Route 5 and State Route 14, Santa Clarita 
        Valley, California.
            ``(70) The Economic Lifeline corridor, along 
        Interstate Route 15 and Interstate Route 40, 
        California, Arizona, and Nevada, including Interstate 
        Route 215 South from near San Bernadino, California, to 
        Riverside, California, and State Route 91 from 
        Riverside, California, to the intersection with 
        Interstate Route 15 near Corona, California.
            ``(71) The High Desert Corridor/E-220 from Los 
        Angeles, California, to Las Vegas, Nevada, via Palmdale 
        and Victorville, California.
            ``(72) The North-South corridor, along Interstate 
        Route 49 North, from Kansas City, Missouri, to 
        Shreveport, Louisiana.
            ``(73) The Louisiana Highway corridor, along 
        Louisiana Highway 1, from Grand Isle, Louisiana, to the 
        intersection with United States Route 90.
            ``(74) The portion of United States Route 90 from 
        Interstate Route 49 in Lafayette, Louisiana, to 
        Interstate Route 10 in New Orleans, Louisiana.
            ``(75) The Louisiana 28 corridor from Fort Polk to 
        Alexandria, Louisiana.
            ``(76) The portion of Interstate Route 75 from 
        Toledo, Ohio, to Cincinnati, Ohio.
            ``(77) The portion of United States Route 24 from 
        the Indiana/Ohio State line to Toledo, Ohio.
            ``(78) The portion of Interstate Route 71 from 
        Cincinnati, Ohio, to Cleveland, Ohio.
            ``(79) Interstate Route 376 from the Pittsburgh 
        Interchange (I/C No. 56) of the Pennsylvania Turnpike, 
        westward on Interstate Route 279, United States Route 
        22, United States Route 30, and Pennsylvania Route 60, 
        continuing past the Pittsburgh International Airport on 
        Turnpike Route 60, to the Pennsylvania Turnpike 
        (Interstate Route 76), Interchange 10, and continuing 
        north on Pennsylvania Turnpike Route 60 and on United 
        States Route 422 to Interstate Route 80.
            ``(80) The Intercounty Connector, a new east-west 
        multimodal highway between Interstate Route 270 and 
        Interstate Route 95/United States Route 1 in Montgomery 
        and Prince George's Counties, Maryland.''; and
            (6) by aligning paragraph (45) with paragraph (46) 
        (as added by paragraph (5)).
    (c) Interstate Routes.--Section 1105(e)(5) of the 
Intermodal Surface Transporation Efficiency Act of 1991 is 
amended--
            (1) in subparagraph (A) by striking ``and 
        subsection (c)(45)'' and inserting ``subsection 
        (c)(45), subsection (c)(54), and subsection (c)(57)'';
            (2) by redesignating subparagraphs (B) through (D) 
        as subparagraphs (C) through (E); and
            (3) by inserting after subparagraph (A) the 
        following:
                    ``(B) Interstate route 376.--
                            ``(i) Designation of interstate 
                        route 376.--
                                    ``(I) In general.--The 
                                routes referred to in 
                                subsection (c)(79), except the 
                                portion of Pennsylvania 
                                Turnpike Route 60 and United 
                                States Route 422 between 
                                Pennsylvania Turnpike 
                                Interchange 10 and Interstate 
                                Route 80, shall be designated 
                                as Interstate Route 376.
                                    ``(II) Signs.--The State of 
                                Pennsylvania shall have 
                                jurisdiction over the highways 
                                described in subclause (I) 
                                (except Pennsylvania Turnpike 
                                Route 60) and erect signs in 
                                accordance with Interstate 
                                signing criteria that identify 
                                the routes described in 
                                subclause (I) as Interstate 
                                Route 376.
                                    ``(III) Assistance from 
                                secretary.--The Secretary shall 
                                assist the State of 
                                Pennsylvania in carrying out, 
                                not later than December 31, 
                                2008, an activity under 
                                subclause (II) relating to 
                                Interstate Route 376 and in 
                                complying with sections 109 and 
                                139 of title 23, United States 
                                Code.
                            ``(ii) Other segments.--The segment 
                        of the route referred to in subsection 
                        (c)(79) located between the 
                        Pennsylvania Turnpike, Interchange 10, 
                        and Interstate Route 80 may be signed 
                        as Interstate Route 376 under clause 
                        (i)(II) if that segment meets the 
                        criteria under sections 109 and 139 of 
                        title 23, United States Code.''.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out, in accordance with title 23, 
United States Code, projects on corridors identified in section 
1105(c) of the Intermodal Surface Transportation Efficiency Act 
of 1991 (105 Stat. 2032) such sums as may be necessary.

SEC. 1305. TRUCK PARKING FACILITIES.

    (a) Establishment.--In cooperation with appropriate State, 
regional, and local governments, the Secretary shall establish 
a pilot program to address the shortage of long-term parking 
for commercial motor vehicles on the National Highway System.
    (b) Allocation of Funds.--
            (1) In general.--The Secretary shall allocate funds 
        made available to carry out this section among States, 
        metropolitan planning organizations, and local 
        governments.
            (2) Applications.--To be eligible for an allocation 
        under this section, a State (as defined in section 
        101(a) of title 23, United States Code), metropolitan 
        planning organization, or local government shall submit 
        to the Secretary an application at such time and 
        containing such information as the Secretary may 
        require.
            (3) Eligible projects.--Funds allocated under this 
        subsection shall be used by the recipient for projects 
        described in an application approved by the Secretary. 
        Such projects shall serve the National Highway System 
        and may include the following:
                    (A) Constructing safety rest areas (as 
                defined in section 120(c) of title 23, United 
                States Code) that include parking for 
                commercial motor vehicles.
                    (B) Constructing commercial motor vehicle 
                parking facilities adjacent to commercial truck 
                stops and travel plazas.
                    (C) Opening existing facilities to 
                commercial motor vehicle parking, including 
                inspection and weigh stations and park-and-ride 
                facilities.
                    (D) Promoting the availability of publicly 
                or privately provided commercial motor vehicle 
                parking on the National Highway System using 
                intelligent transportation systems and other 
                means.
                    (E) Constructing turnouts along the 
                National Highway System for commercial motor 
                vehicles.
                    (F) Making capital improvements to public 
                commercial motor vehicle parking facilities 
                currently closed on a seasonal basis to allow 
                the facilities to remain open year-round.
                    (G) Improving the geometric design of 
                interchanges on the National Highway System to 
                improve access to commercial motor vehicle 
                parking facilities.
            (4) Priority.--In allocating funds made available 
        to carry out this section, the Secretary shall give 
        priority to applicants that--
                    (A) demonstrate a severe shortage of 
                commercial motor vehicle parking capacity in 
                the corridor to be addressed;
                    (B) have consulted with affected State and 
                local governments, community groups, private 
                providers of commercial motor vehicle parking, 
                and motorist and trucking organizations; and
                    (C) demonstrate that their proposed 
                projects are likely to have positive effects on 
                highway safety, traffic congestion, or air 
                quality.
    (c) Report to Congress.--Not later than 3 years after the 
date of enactment of this Act, the Secretary shall submit to 
Congress a report on the results of the pilot program.
    (d) Funding.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $6,250,000 for each of fiscal years 2006 through 2009.
            (2) Contract authority.--Funds authorized under 
        this subsection shall be available for obligation in 
        the same manner as if the funds were apportioned under 
        chapter 1 of title 23, United States Code; except that 
        such funds shall not be transferable and shall remain 
        available until expended, and the Federal share of the 
        cost of a project under this section shall be 
        determined in accordance with sections 120(b) and 
        120(c) of such title.
    (e) Treatment of Projects.--Notwithstanding any other 
provision of law, projects funded under this section shall be 
treated as projects on a Federal-aid system under chapter 1 of 
title 23, United States Code.

SEC. 1306. FREIGHT INTERMODAL DISTRIBUTION PILOT GRANT PROGRAM.

    (a) In General.--The Secretary shall establish and 
implement a freight intermodal distribution pilot grant 
program.
    (b) Purposes.--The purposes of the program established 
under subsection (a) shall be for the Secretary to make grants 
to States--
            (1) to facilitate and support intermodal freight 
        transportation initiatives at the State and local 
        levels to relieve congestion and improve safety; and
            (2) to provide capital funding to address 
        infrastructure and freight distribution needs at inland 
        ports and intermodal freight facilities.
    (c) Eligible Projects.--Projects for which grants may be 
made under this section shall help relieve congestion, improve 
transportation safety, facilitate international trade, and 
encourage public-private partnership and may include projects 
for the development and construction of intermodal freight 
distribution and transfer facilities at inland ports.
    (d) Selection Process.--
            (1) Applications.--A State (as defined in section 
        101(a) of title 23, United States Code) shall submit 
        for approval by the Secretary an application for a 
        grant under this section containing such information as 
        the Secretary may require to receive such a grant.
            (2) Priority.--In selecting projects for grants, 
        the Secretary shall give priority to projects that 
        will--
                    (A) reduce congestion into and out of 
                international ports located in the United 
                States;
                    (B) demonstrate ways to increase the 
                likelihood that freight container movements 
                involve freight containers carrying goods; and
                    (C) establish or expand intermodal 
                facilities that encourage the development of 
                inland freight distribution centers.
            (3) Designated projects.--Subject to the provisions 
        of this section, the Secretary shall allocate for each 
        of fiscal years 2005 through 2009, from funds made 
        available to carry out this section, 20 percent of the 
        following amounts for grants to carry out the following 
        projects under this section:
                    (A) Short-haul intermodal projects, Oregon, 
                $5,000,000.
                    (B) The Georgia Port Authority, $5,000,000.
                    (C) The ports of Los Angeles and Long 
                Beach, California, $5,000,000.
                    (D) Fairbanks, Alaska, $5,000,000.
                    (E) Charlotte Douglas International Airport 
                Freight Intermodal Facility, North Carolina, 
                $5,000,000.
                    (F) South Piedmont Freight Intermodal 
                Center, North Carolina, $5,000,000.
    (e) Use of Grant Funds.--Funds made available to a 
recipient of a grant under this section shall be used by the 
recipient for the project described in the application of the 
recipient approved by the Secretary.
    (f) Report.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report on the results of the pilot program carried out under 
this section.
    (g) Funding.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $6,000,000 for each of fiscal years 2005 through 2009.
            (2) Contract authority.--Funds authorized by this 
        subsection shall be available for obligation in the 
        same manner as if the funds were apportioned under 
        chapter 1 of title 23, United States Code; except that 
        such funds shall not be transferable and shall remain 
        available until expended, and the Federal share of the 
        cost of a project under this section shall be 
        determined in accordance with section 120 of such 
        title.
    (h) Treatment of Projects.--Notwithstanding any other 
provision of law, projects for which grants are made under this 
section shall be treated as projects on a Federal-aid system 
under chapter 1 of title 23, United States Code.

SEC. 1307. DEPLOYMENT OF MAGNETIC LEVITATION TRANSPORTATION PROJECTS.

    (a) Definitions.--In this section, the following 
definitions apply:
            (1) Eligible project costs.--The term ``eligible 
        project costs''--
                    (A) means the capital cost of the fixed 
                guideway infrastructure of a MAGLEV project, 
                including land, piers, guideways, propulsion 
                equipment and other components attached to 
                guideways, power distribution facilities 
                (including substations), control and 
                communications facilities, access roads, and 
                storage, repair, and maintenance facilities, 
                but not including costs incurred for a new 
                station; and
                    (B) includes the costs of preconstruction 
                planning activities.
            (2) Full project costs.--The term ``full project 
        costs'' means the total capital costs of a MAGLEV 
        project, including eligible project costs and the costs 
        of stations, vehicles, and equipment.
            (3) MAGLEV.--The term ``MAGLEV'' means 
        transportation systems employing magnetic levitation 
        that would be capable of safe use by the public at a 
        speed in excess of 240 miles per hour.
            (4) State.--The term ``State'' has the meaning such 
        term has under section 101(a) of title 23, United 
        States Code.
    (b) In General.--
            (1) Assistance for eligible projects.--The 
        Secretary shall make available financial assistance to 
        pay the Federal share of full project costs of eligible 
        projects authorized by this section.
            (2) Use of assistance.--Financial assistance 
        provided under paragraph (1) shall be used only to pay 
        eligible project costs of projects authorized by this 
        section.
            (3) Applicability of other laws.--Financial 
        assistance made available under this section, and 
        projects assisted with such assistance, shall be 
        subject to section 5333(a) of title 49, United States 
        Code.
    (c) Project Eligibility.--To be eligible to receive 
financial assistance under subsection (b), a project shall--
            (1) involve a segment or segments of a high-speed 
        ground transportation corridor;
            (2) result in an operating transportation facility 
        that provides a revenue producing service; and
            (3) be approved by the Secretary based on an 
        application submitted to the Secretary by a State or 
        authority designated by 1 or more States.
    (d) Allocation.--Of the amounts made available to carry out 
this section for a fiscal year, the Secretary shall allocate 50 
percent for the MAGLEV project between Las Vegas and Primm, 
Nevada, and 50 percent for a MAGLEV project located east of the 
Mississippi River.

SEC. 1308. DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out a program in 
the 8 States comprising the Delta Region (Alabama, Arkansas, 
Illinois, Kentucky, Louisiana, Mississippi, Missouri, and 
Tennessee) to--
            (1) support and encourage multistate transportation 
        planning and corridor development;
            (2) provide for transportation project development;
            (3) facilitate transportation decisionmaking; and
            (4) support transportation construction.
    (b) Eligible Recipients.--A State transportation department 
or metropolitan planning organization in a Delta Region State 
may receive and administer funds provided under the program.
    (c) Eligible Activities.--The Secretary shall make 
allocations under the program for multistate highway planning, 
development, and construction projects.
    (d) Other Provisions Regarding Eligibility.--All activities 
funded under this program shall be consistent with the 
continuing, cooperative, and comprehensive planning processes 
required by sections 134 and 135 of title 23, United States 
Code.
    (e) Selection Criteria.--The Secretary shall select 
projects to be carried out under the program based on--
            (1) whether the project is located--
                    (A) in an area under the authority of the 
                Delta Regional Authority; and
                    (B) on a Federal-aid highway;
            (2) endorsement of the project by the State 
        department of transportation; and
            (3) evidence of the ability of the recipient of 
        funds provided under the program to complete the 
        project.
    (f) Program Priorities.--In administering the program, the 
Secretary shall--
            (1) encourage State and local officials to work 
        together to develop plans for multimodal and 
        multijurisdictional transportation decisionmaking; and
            (2) give priority to projects that emphasize 
        multimodal planning, including planning for operational 
        improvements that--
                    (A) increase the mobility of people and 
                goods;
                    (B) improve the safety of the 
                transportation system with respect to 
                catastrophic natural disasters or disasters 
                caused by human activity; and
                    (C) contribute to the economic vitality of 
                the area in which the project is being carried 
                out.
    (g) Federal Share.--Amounts provided by the Delta Regional 
Authority to carry out a project under this subsection may be 
applied to the non-Federal share of the project required by 
section 120 of title 23, United States Code.
    (h) Funding.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $10,000,000 for each of fiscal years 2006 through 2009.
            (2) Contract authority.--Funds made available to 
        carry out this section shall be available for 
        obligation in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States 
        Code; except that such funds shall not be transferable 
        and shall remain available until expended.

SEC. 1309. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE 
                    WEIGHT RESTRICTIONS.

    Section 1023(h)(1) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (23 U.S.C. 127 note; 106 Stat. 1552) is 
amended by striking ``2005'' and inserting ``2009''.

SEC. 1310. INTERSTATE OASIS PROGRAM.

    (a) In General.--Not later than 180 days after the date of 
enactment of this section, in consultation with the States and 
other interested parties, the Secretary shall--
            (1) establish an interstate oasis program; and
            (2) after providing an opportunity for public 
        comment, develop standards for designating, as an 
        interstate oasis, a facility that--
                    (A) offers--
                            (i) products and services to the 
                        public;
                            (ii) 24-hour access to restrooms; 
                        and
                            (iii) parking for automobiles and 
                        heavy trucks; and
                    (B) meets other standards established by 
                the Secretary.
    (b) Standards for Designation.--The standards for 
designation under subsection (a) shall include standards 
relating to--
            (1) the appearance of a facility; and
            (2) the proximity of the facility to the Dwight D. 
        Eisenhower National System of Interstate and Defense 
        Highways.
    (c) Eligibility for Designation.--If a State (as defined in 
section 101(a) of title 23, United States Code) elects to 
participate in the interstate oasis program, any facility 
meeting the standards established by the Secretary shall be 
eligible for designation under this section.
    (d) Logo.--The Secretary shall design a logo to be 
displayed by a facility designated under this section.

                       Subtitle D--Highway Safety

SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

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

``Sec. 148. Highway safety improvement program

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) High risk rural road.--The term `high risk 
        rural road' means any roadway functionally classified 
        as a rural major or minor collector or a rural local 
        road--
                    ``(A) on which the accident rate for 
                fatalities and incapacitating injuries exceeds 
                the statewide average for those functional 
                classes of roadway; or
                    ``(B) that will likely have increases in 
                traffic volume that are likely to create an 
                accident rate for fatalities and incapacitating 
                injuries that exceeds the statewide average for 
                those functional classes of roadway.
            ``(2) Highway safety improvement program.--The term 
        `highway safety improvement program' means the program 
        carried out under this section.
            ``(3) Highway safety improvement project.--
                    ``(A) In general.--The term `highway safety 
                improvement project' means a project described 
                in the State strategic highway safety plan 
                that--
                            ``(i) corrects or improves a 
                        hazardous road location or feature; or
                            ``(ii) addresses a highway safety 
                        problem.
                    ``(B) Inclusions.--The term `highway safety 
                improvement project' includes a project for one 
                or more of the following:
                            ``(i) An intersection safety 
                        improvement.
                            ``(ii) Pavement and shoulder 
                        widening (including addition of a 
                        passing lane to remedy an unsafe 
                        condition).
                            ``(iii) Installation of rumble 
                        strips or another warning device, if 
                        the rumble strips or other warning 
                        devices do not adversely affect the 
                        safety or mobility of bicyclists, 
                        pedestrians, and the disabled.
                            ``(iv) Installation of a skid-
                        resistant surface at an intersection or 
                        other location with a high frequency of 
                        accidents.
                            ``(v) An improvement for pedestrian 
                        or bicyclist safety or safety of the 
                        disabled.
                            ``(vi) Construction of any project 
                        for the elimination of hazards at a 
                        railway-highway crossing that is 
                        eligible for funding under section 130, 
                        including the separation or protection 
                        of grades at railway-highway crossings.
                            ``(vii) Construction of a railway-
                        highway crossing safety feature, 
                        including installation of protective 
                        devices.
                            ``(viii) The conduct of a model 
                        traffic enforcement activity at a 
                        railway-highway crossing.
                            ``(ix) Construction of a traffic 
                        calming feature.
                            ``(x) Elimination of a roadside 
                        obstacle.
                            ``(xi) Improvement of highway 
                        signage and pavement markings.
                            ``(xii) Installation of a priority 
                        control system for emergency vehicles 
                        at signalized intersections.
                            ``(xiii) Installation of a traffic 
                        control or other warning device at a 
                        location with high accident potential.
                            ``(xiv) Safety-conscious planning.
                            ``(xv) Improvement in the 
                        collection and analysis of crash data.
                            ``(xvi) Planning, integrated 
                        interoperable emergency communications 
                        equipment, operational activities, or 
                        traffic enforcement activities 
                        (including police assistance) relating 
                        to workzone safety.
                            ``(xvii) Installation of 
                        guardrails, barriers (including 
                        barriers between construction work 
                        zones and traffic lanes for the safety 
                        of motorists and workers), and crash 
                        attenuators.
                            ``(xviii) The addition or 
                        retrofitting of structures or other 
                        measures to eliminate or reduce 
                        accidents involving vehicles and 
                        wildlife.
                            ``(xix) Installation and 
                        maintenance of signs (including 
                        fluorescent, yellow-green signs) at 
                        pedestrian-bicycle crossings and in 
                        school zones.
                            ``(xx) Construction and yellow-
                        green signs at pedestrian-bicycle 
                        crossings and in school zones.
                            ``(xxi) Construction and 
                        operational improvements on high risk 
                        rural roads.
            ``(4) Safety project under any other section.--
                    ``(A) In general.--The term `safety project 
                under any other section' means a project 
                carried out for the purpose of safety under any 
                other section of this title.
                    ``(B) Inclusion.--The term `safety project 
                under any other section' includes a project to 
                promote the awareness of the public and educate 
                the public concerning highway safety matters 
                (including motorcyclist safety) and a project 
                to enforce highway safety laws.
            ``(5) State highway safety improvement program.--
        The term `State highway safety improvement program' 
        means projects or strategies included in the State 
        strategic highway safety plan carried out as part of 
        the State transportation improvement program under 
        section 135(g).
            ``(6) State strategic highway safety plan.--The 
        term `State strategic highway safety plan' means a plan 
        developed by the State transportation department that--
                    ``(A) is developed after consultation 
                with--
                            ``(i) a highway safety 
                        representative of the Governor of the 
                        State;
                            ``(ii) regional transportation 
                        planning organizations and metropolitan 
                        planning organizations, if any;
                            ``(iii) representatives of major 
                        modes of transportation;
                            ``(iv) State and local traffic 
                        enforcement officials;
                            ``(v) persons responsible for 
                        administering section 130 at the State 
                        level;
                            ``(vi) representatives conducting 
                        Operation Lifesaver;
                            ``(vii) representatives conducting 
                        a motor carrier safety program under 
                        section 31102, 31106, or 31309 of title 
                        49;
                            ``(viii) motor vehicle 
                        administration agencies; and
                            ``(ix) other major State and local 
                        safety stakeholders;
                    ``(B) analyzes and makes effective use of 
                State, regional, or local crash data;
                    ``(C) addresses engineering, management, 
                operation, education, enforcement, and 
                emergency services elements (including 
                integrated, interoperable emergency 
                communications) of highway safety as key 
                factors in evaluating highway projects;
                    ``(D) considers safety needs of, and high-
                fatality segments of, public roads;
                    ``(E) considers the results of State, 
                regional, or local transportation and highway 
                safety planning processes;
                    ``(F) describes a program of projects or 
                strategies to reduce or eliminate safety 
                hazards;
                    ``(G) is approved by the Governor of the 
                State or a responsible State agency; and
                    ``(H) is consistent with the requirements 
                of section 135(g).
    ``(b) Program.--
            ``(1) In general.--The Secretary shall carry out a 
        highway safety improvement program.
            ``(2) Purpose.--The purpose of the highway safety 
        improvement program shall be to achieve a significant 
        reduction in traffic fatalities and serious injuries on 
        public roads.
    ``(c) Eligibility.--
            ``(1) In general.--To obligate funds apportioned 
        under section 104(b)(5) to carry out this section, a 
        State shall have in effect a State highway safety 
        improvement program under which the State--
                    ``(A) develops and implements a State 
                strategic highway safety plan that identifies 
                and analyzes highway safety problems and 
                opportunities as provided in paragraph (2);
                    ``(B) produces a program of projects or 
                strategies to reduce identified safety 
                problems;
                    ``(C) evaluates the plan on a regular basis 
                to ensure the accuracy of the data and priority 
                of proposed improvements; and
                    ``(D) submits to the Secretary an annual 
                report that--
                            ``(i) describes, in a clearly 
                        understandable fashion, not less than 5 
                        percent of locations determined by the 
                        State, using criteria established in 
                        accordance with paragraph (2)(B)(ii), 
                        as exhibiting the most severe safety 
                        needs; and
                            ``(ii) contains an assessment of--
                                    ``(I) potential remedies to 
                                hazardous locations identified;
                                    ``(II) estimated costs 
                                associated with those remedies; 
                                and
                                    ``(III) impediments to 
                                implementation other than cost 
                                associated with those remedies.
            ``(2) Identification and analysis of highway safety 
        problems and opportunities.--As part of the State 
        strategic highway safety plan, a State shall--
                    ``(A) have in place a crash data system 
                with the ability to perform safety problem 
                identification and countermeasure analysis;
                    ``(B) based on the analysis required by 
                subparagraph (A)--
                            ``(i) identify hazardous locations, 
                        sections, and elements (including 
                        roadside obstacles, railway-highway 
                        crossing needs, and unmarked or poorly 
                        marked roads) that constitute a danger 
                        to motorists (including motorcyclists), 
                        bicyclists, pedestrians, and other 
                        highway users; and
                            ``(ii) using such criteria as the 
                        State determines to be appropriate, 
                        establish the relative severity of 
                        those locations, in terms of accidents, 
                        injuries, deaths, traffic volume 
                        levels, and other relevant data;
                    ``(C) adopt strategic and performance-based 
                goals that--
                            ``(i) address traffic safety, 
                        including behavioral and infrastructure 
                        problems and opportunities on all 
                        public roads;
                            ``(ii) focus resources on areas of 
                        greatest need; and
                            ``(iii) are coordinated with other 
                        State highway safety programs;
                    ``(D) advance the capabilities of the State 
                for traffic records data collection, analysis, 
                and integration with other sources of safety 
                data (such as road inventories) in a manner 
                that--
                            ``(i) complements the State highway 
                        safety program under chapter 4 and the 
                        commercial vehicle safety plan under 
                        section 31102 of title 49;
                            ``(ii) includes all public roads;
                            ``(iii) identifies hazardous 
                        locations, sections, and elements on 
                        public roads that constitute a danger 
                        to motorists (including motorcyclists), 
                        bicyclists, pedestrians, the disabled, 
                        and other highway users; and
                            ``(iv) includes a means of 
                        identifying the relative severity of 
                        hazardous locations described in clause 
                        (iii) in terms of accidents, injuries, 
                        deaths, and traffic volume levels;
                    ``(E)(i) determine priorities for the 
                correction of hazardous road locations, 
                sections, and elements (including railway-
                highway crossing improvements), as identified 
                through crash data analysis;
                    ``(ii) identify opportunities for 
                preventing the development of such hazardous 
                conditions; and
                    ``(iii) establish and implement a schedule 
                of highway safety improvement projects for 
                hazard correction and hazard prevention; and
                    ``(F)(i) establish an evaluation process to 
                analyze and assess results achieved by highway 
                safety improvement projects carried out in 
                accordance with procedures and criteria 
                established by this section; and
                    ``(ii) use the information obtained under 
                clause (i) in setting priorities for highway 
                safety improvement projects.
    ``(d) Eligible Projects.--
            ``(1) In general.--A State may obligate funds 
        apportioned to the State under section 104(b)(5) to 
        carry out--
                    ``(A) any highway safety improvement 
                project on any public road or publicly owned 
                bicycle or pedestrian pathway or trail; or
                    ``(B) as provided in subsection (e), other 
                safety projects.
            ``(2) Use of other funding for safety.--
                    ``(A) Effect of section.--Nothing in this 
                section prohibits the use of funds made 
                available under other provisions of this title 
                for highway safety improvement projects.
                    ``(B) Use of other funds.--States are 
                encouraged to address the full scope of their 
                safety needs and opportunities by using funds 
                made available under other provisions of this 
                title (except a provision that specifically 
                prohibits that use).
    ``(e) Flexible Funding for States With a Strategic Highway 
Safety Plan.--
            ``(1) In general.--To further the implementation of 
        a State strategic highway safety plan, a State may use 
        up to 10 percent of the amount of funds apportioned to 
        the State under section 104(b)(5) for a fiscal year to 
        carry out safety projects under any other section as 
        provided in the State strategic highway safety plan if 
        the State certifies that--
                    ``(A) the State has met needs in the State 
                relating to railway-highway crossings; and
                    ``(B) the State has met the State's 
                infrastructure safety needs relating to highway 
                safety improvement projects.
            ``(2) Other transportation and highway safety 
        plans.--Nothing in this subsection requires a State to 
        revise any State process, plan, or program in effect on 
        the date of enactment of this section.
    ``(f) High Risk Rural Roads.--
            ``(1) In general.--After making an apportionment 
        under section 104(b)(5) for a fiscal year beginning 
        after September 30, 2005, the Secretary shall ensure, 
        from amounts made available to carry out this section 
        for such fiscal year, that a total of $90,000,000 of 
        such apportionment is set aside by the States, 
        proportionally according to the share of each State of 
        the total amount so apportioned, for use only for 
        construction and operational improvements on high risk 
        rural roads.
            ``(2) Special rule.--A State may use funds 
        apportioned to the State pursuant to this subsection 
        for any project under this section if the State 
        certifies to the Secretary that the State has met all 
        of State needs for construction and operational 
        improvements on high risk rural roads.
    ``(g) Reports.--
            ``(1) In general.--A State shall submit to the 
        Secretary a report that--
                    ``(A) describes progress being made to 
                implement highway safety improvement projects 
                under this section;
                    ``(B) assesses the effectiveness of those 
                improvements; and
                    ``(C) describes the extent to which the 
                improvements funded under this section 
                contribute to the goals of--
                            ``(i) reducing the number of 
                        fatalities on roadways;
                            ``(ii) reducing the number of 
                        roadway-related injuries;
                            ``(iii) reducing the occurrences of 
                        roadway-related crashes;
                            ``(iv) mitigating the consequences 
                        of roadway-related crashes; and
                            ``(v) reducing the occurrences of 
                        crashes at railway-highway crossings.
            ``(2) Contents; schedule.--The Secretary shall 
        establish the content and schedule for a report under 
        paragraph (1).
            ``(3) Transparency.--The Secretary shall make 
        reports submitted under subsection (c)(1)(D) available 
        to the public through--
                    ``(A) the Web site of the Department; and
                    ``(B) such other means as the Secretary 
                determines to be appropriate.
            ``(4) Discovery and admission into evidence of 
        certain reports, surveys, and information.--
        Notwithstanding any other provision of law, reports, 
        surveys, schedules, lists, or data compiled or 
        collected for any purpose directly relating to 
        paragraph (1) or subsection (c)(1)(D), or published by 
        the Secretary in accordance with paragraph (3), shall 
        not be subject to discovery or admitted into evidence 
        in a Federal or State court proceeding or considered 
        for other purposes in any action for damages arising 
        from any occurrence at a location identified or 
        addressed in such reports, surveys, schedules, lists, 
        or other data.
    ``(h) Federal Share of Highway Safety Improvement 
Projects.--Except as provided in sections 120 and 130, the 
Federal share of the cost of a highway safety improvement 
project carried out with funds apportioned to a State under 
section 104(b)(5) shall be 90 percent.''.
            (2) Clerical amendment.--The analysis for chapter 1 
        of such title is amended by striking the item relating 
        to section 148 and inserting the following:

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

            (3) Conforming amendments.--
                    (A) Transfers of apportionments.--Section 
                104(g) of such title is amended in the first 
                sentence by striking ``sections 130, 144, and 
                152 of this title'' and inserting ``sections 
                130 and 144''.
                    (B) Uniform transferability.--Section 
                126(a) of such title is amended by inserting 
                ``under'' after ``State's apportionment''.
                    (C) Other sections.--Sections 154, 164, and 
                409 of such title are amended by striking 
                ``152'' each place it appears and inserting 
                ``148''.
    (b) Apportionment of Highway Safety Improvement Program 
Funds.--Section 104(b) of such title (as amended by section 
1103 of this Act) is amended--
            (1) in the matter preceding paragraph (1) by 
        inserting after ``Improvement program,'' the following: 
        ``the highway safety improvement program,''; and
            (2) by adding at the end the following:
            ``(5) Highway safety improvement program.--
                    ``(A) In general.--For the highway safety 
                improvement program, in accordance with the 
                following formula:
                            ``(i) 33\1/3\ percent of the 
                        apportionments in the ratio that--
                                    ``(I) the total lane miles 
                                of Federal-aid highways in each 
                                State; bears to
                                    ``(II) the total lane miles 
                                of Federal-aid highways in all 
                                States.
                            ``(ii) 33\1/3\ percent of the 
                        apportionments in the ratio that--
                                    ``(I) the total vehicle 
                                miles traveled on lanes on 
                                Federal-aid highways in each 
                                State; bears to
                                    ``(II) the total vehicle 
                                miles traveled on lanes on 
                                Federal-aid highways in all 
                                States.
                            ``(iii) 33\1/3\ percent of the 
                        apportionments in the ratio that--
                                    ``(I) the number of 
                                fatalities on the Federal-aid 
                                system in each State in the 
                                latest fiscal year for which 
                                data are available; bears to
                                    ``(II) the number of 
                                fatalities on the Federal-aid 
                                system in all States in the 
                                latest fiscal year for which 
                                data are available.
                    ``(B) Minimum apportionment.--
                Notwithstanding subparagraph (A), each State 
                shall receive a minimum of \1/2\ of 1 percent 
                of the funds apportioned under this 
                paragraph.''.
    (d) Elimination of Hazards Relating to Railway-Highway 
Crossings.--
            (1) Funds for protective devices.--Section 130(e) 
        of such title is amended--
                    (A) by striking ``At'' and inserting the 
                following:
            ``(1) In general.--Before making an apportionment 
        under section 104(b)(5) for a fiscal year, the 
        Secretary shall set aside, from amounts made available 
        to carry out the highway safety improvement program 
        under section 148 for such fiscal year, at least 
        $220,000,000 for the elimination of hazards and the 
        installation of protective devices at railway-highway 
        crossings. At''; and
                    (B) by adding at the end the following:
            ``(2) Special rule.--If a State demonstrates to the 
        satisfaction of the Secretary that the State has met 
        all its needs for installation of protective devices at 
        railway-highway crossings, the State may use funds made 
        available by this section for other purposes under this 
        subsection.''.
            (2) Apportionment.--Section 130(f) of such title is 
        amended to read as follows:
    ``(f) Apportionment.--
            ``(1) Formula.--Fifty percent of the funds set 
        aside to carry out this section pursuant to subsection 
        (e)(1) shall be apportioned to the States in accordance 
        with the formula set forth in section 104(b)(3)(A), and 
        50 percent of such funds shall be apportioned to the 
        States in the ratio that total public railway-highway 
        crossings in each State bears to the total of such 
        crossings in all States.
            ``(2) Minimum apportionment.--Notwithstanding 
        paragraph (1), each State shall receive a minimum of 
        \1/2\ of 1 percent of the funds apportioned under 
        paragraph (1).
            ``(3) Federal share.--The Federal share payable on 
        account of any project financed with funds set aside to 
        carry out this section shall be 90 percent of the cost 
        thereof.''.
            (3) Biennial reports to congress.--Section 130(g) 
        of such title is amended in the third sentence--
                    (A) by inserting ``and the Committee on 
                Commerce, Science, and Transportation,'' after 
                ``Public Works''; and
                    (B) by striking ``not later than April 1 of 
                each year'' and inserting ``, not later than 
                April 1, 2006, and every 2 years thereafter,''.
            (4) Expenditure of funds.--Section 130 of such 
        title is amended by adding at the end the following:
    ``(k) Expenditure of Funds.--Not more than 2 percent of 
funds apportioned to a State to carry out this section may be 
used by the State for compilation and analysis of data in 
support of activities carried out under subsection (g).''.
    (e) Transition.--
            (1) Implementation.--Except as provided in 
        paragraph (2), the Secretary shall approve obligations 
        of funds apportioned under section 104(b)(5) of title 
        23, United States Code (as added by subsection (b)) to 
        carry out section 148 of that title, only if, not later 
        than October 1 of the second fiscal year beginning 
        after the date of enactment of this Act, a State has 
        developed and implemented a State strategic highway 
        safety plan as required pursuant to section 148(c) of 
        that title.
            (2) Interim period.--
                    (A) In general.--Before October 1 of the 
                second fiscal year after the date of enactment 
                of this Act and until the date on which a State 
                develops and implements a State strategic 
                highway safety plan, the Secretary shall 
                apportion funds to a State for the highway 
                safety improvement program and the State may 
                obligate funds apportioned to the State for the 
                highway safety improvement program under 
                section 148 for projects that were eligible for 
                funding under sections 130 and 152 of that 
                title, as in effect on the day before the date 
                of enactment of this Act.
                    (B) No strategic highway safety plan.--If a 
                State has not developed a strategic highway 
                safety plan by October 1, 2007, the State shall 
                receive for the highway safety improvement 
                program for each subsequent fiscal year until 
                the date of development of such plan an amount 
                that equals the amount apportioned to the State 
                for that program for fiscal year 2007.

SEC. 1402. WORKER INJURY PREVENTION AND FREE FLOW OF VEHICULAR TRAFFIC.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary shall issue regulations to decrease the 
likelihood of worker injury and maintain the free flow of 
vehicular traffic by requiring workers whose duties place them 
on or in close proximity to a Federal-aid highway (as defined 
in section 101 of title 23, United States Code) to wear high 
visibility garments. The regulations may also require such 
other worker-safety measures for workers with those duties as 
the Secretary determines to be appropriate.

SEC. 1403. TOLL FACILITIES WORKPLACE SAFETY STUDY.

    (a) In General.--The Secretary shall conduct a study on the 
safety of highway toll collection facilities, including toll 
booths, to determine the safety of the facilities for the toll 
collectors who work in and around the facilities, including 
consideration of--
            (1) the effect of design or construction of the 
        facilities on the likelihood of vehicle collisions with 
        the facilities;
            (2) the safety of crosswalks used by toll 
        collectors in transit to and from toll booths;
            (3) the extent of the enforcement of speed limits 
        in the vicinity of the facilities;
            (4) the use of warning devices, such as vibration 
        and rumble strips, to alert drivers approaching the 
        facilities;
            (5) the use of cameras to record traffic violations 
        in the vicinity of the facilities;
            (6) the use of traffic control arms in the vicinity 
        of the facilities;
            (7) law enforcement practices and jurisdictional 
        issues that affect safety in the vicinity of the 
        facilities; and
            (8) the incidence of accidents and injuries in the 
        vicinity of toll booths.
    (b) Data Collection.--As part of the study, the Secretary 
shall collect data regarding the incidence of accidents and 
injuries in the vicinity of highway toll collection facilities.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate a report on the results of the study, 
together with recommendations for improving toll facilities 
workplace safety.
    (d) Funding.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        section, out of the Highway Trust Fund (other than the 
        Mass Transit Account), $500,000 for fiscal year 2006.
            (2) Contract authority.--Funds authorized to be 
        appropriated by this section shall be available for 
        obligation in the same manner and to the same extent as 
        if the funds were apportioned under chapter 1 of title 
        23, United States Code, except that the Federal share 
        of the cost of the project shall be 100 percent, and 
        the funds shall remain available until expended and 
        shall not be transferable.

SEC. 1404. SAFE ROUTES TO SCHOOL PROGRAM.

    (a) Establishment.--Subject to the requirements of this 
section, the Secretary shall establish and carry out a safe 
routes to school program for the benefit of children in primary 
and middle schools.
    (b) Purposes.--The purposes of the program shall be--
            (1) to enable and encourage children, including 
        those with disabilities, to walk and bicycle to school;
            (2) to make bicycling and walking to school a safer 
        and more appealing transportation alternative, thereby 
        encouraging a healthy and active lifestyle from an 
        early age; and
            (3) to facilitate the planning, development, and 
        implementation of projects and activities that will 
        improve safety and reduce traffic, fuel consumption, 
        and air pollution in the vicinity of schools.
    (c) Apportionment of Funds.--
            (1) In general.--Subject to paragraphs (2), (3), 
        and (4), amounts made available to carry out this 
        section for a fiscal year shall be apportioned among 
        the States in the ratio that--
                    (A) the total student enrollment in primary 
                and middle schools in each State; bears to
                    (B) the total student enrollment in primary 
                and middle schools in all States.
            (2) Minimum apportionment.--No State shall receive 
        an apportionment under this section for a fiscal year 
        of less than $1,000,000.
            (3) Set-aside for administrative expenses.--Before 
        apportioning under this subsection amounts made 
        available to carry out this section for a fiscal year, 
        the Secretary shall set aside not more than $3,000,000 
        of such amounts for the administrative expenses of the 
        Secretary in carrying out this subsection.
            (4) Determination of student enrollments.--
        Determinations under this subsection concerning student 
        enrollments shall be made by the Secretary.
    (d) Administration of Amounts.--Amounts apportioned to a 
State under this section shall be administered by the State's 
department of transportation.
    (e) Eligible Recipients.--Amounts apportioned to a State 
under this section shall be used by the State to provide 
financial assistance to State, local, and regional agencies, 
including nonprofit organizations, that demonstrate an ability 
to meet the requirements of this section.
    (f) Eligible Projects and Activities.--
            (1) Infrastructure-related projects.--
                    (A) In general.--Amounts apportioned to a 
                State under this section may be used for the 
                planning, design, and construction of 
                infrastructure-related projects that will 
                substantially improve the ability of students 
                to walk and bicycle to school, including 
                sidewalk improvements, traffic calming and 
                speed reduction improvements, pedestrian and 
                bicycle crossing improvements, on-street 
                bicycle facilities, off-street bicycle and 
                pedestrian facilities, secure bicycle parking 
                facilities, and traffic diversion improvements 
                in the vicinity of schools.
                    (B) Location of projects.--Infrastructure-
                related projects under subparagraph (A) may be 
                carried out on any public road or any bicycle 
                or pedestrian pathway or trail in the vicinity 
                of schools.
            (2) Noninfrastructure-related activities.--
                    (A) In general.--In addition to projects 
                described in paragraph (1), amounts apportioned 
                to a State under this section may be used for 
                noninfrastructure-related activities to 
                encourage walking and bicycling to school, 
                including public awareness campaigns and 
                outreach to press and community leaders, 
                traffic education and enforcement in the 
                vicinity of schools, student sessions on 
                bicycle and pedestrian safety, health, and 
                environment, and funding for training, 
                volunteers, and managers of safe routes to 
                school programs.
                    (B) Allocation.--Not less than 10 percent 
                and not more than 30 percent of the amount 
                apportioned to a State under this section for a 
                fiscal year shall be used for 
                noninfrastructure-related activities under this 
                subparagraph.
            (3) Safe routes to school coordinator.--Each State 
        receiving an apportionment under this section for a 
        fiscal year shall use a sufficient amount of the 
        apportionment to fund a full-time position of 
        coordinator of the State's safe routes to school 
        program.
    (g) Clearinghouse.--
            (1) In general.--The Secretary shall make grants to 
        a national nonprofit organization engaged in promoting 
        safe routes to schools to--
                    (A) operate a national safe routes to 
                school clearinghouse;
                    (B) develop information and educational 
                programs on safe routes to school; and
                    (C) provide technical assistance and 
                disseminate techniques and strategies used for 
                successful safe routes to school programs.
            (2) Funding.--The Secretary shall carry out this 
        subsection using amounts set aside for administrative 
        expenses under subsection (c)(3).
    (h) Task Force.--
            (1) In general.--The Secretary shall establish a 
        national safe routes to school task force composed of 
        leaders in health, transportation, and education, 
        including representatives of appropriate Federal 
        agencies, to study and develop a strategy for advancing 
        safe routes to school programs nationwide.
            (2) Report.--Not later than March 31, 2006, the 
        Secretary shall submit to Congress a report containing 
        the results of the study conducted, and a description 
        of the strategy developed, under paragraph (1) and 
        information regarding the use of funds for 
        infrastructure-related and noninfrastructure-related 
        activities under paragraphs (1) and (2) of subsection 
        (f).
            (3) Funding.--The Secretary shall carry out this 
        subsection using amounts set aside for administrative 
        expenses under subsection (c)(3).
    (i) Applicability of Title 23.--Funds made available to 
carry out this section shall be available for obligation in the 
same manner as if such funds were apportioned under chapter 1 
of title 23, United States Code; except that such funds shall 
not be transferable and shall remain available until expended, 
and the Federal share of the cost of a project or activity 
under this section shall be 100 percent.
    (j) Treatment of Projects.--Notwithstanding any other 
provision of law, projects assisted under this subsection shall 
be treated as projects on a Federal-aid system under chapter 1 
of title 23, United States Code.
    (k) Definitions.--In this section, the following 
definitions apply:
            (1) In the vicinity of schools.--The term ``in the 
        vicinity of schools'' means, with respect to a school, 
        the area within bicycling and walking distance of the 
        school (approximately 2 miles).
            (2) Primary and middle schools.--The term ``primary 
        and middle schools'' means schools providing education 
        from kindergarten through eighth grade.

SEC. 1405. ROADWAY SAFETY IMPROVEMENTS FOR OLDER DRIVERS AND 
                    PEDESTRIANS.

    (a) In General.--The Secretary shall carry out a program to 
improve traffic signs and pavement markings in all States (as 
such term is defined in section 101 of title 23, United States 
Code) in a manner consistent with the recommendations included 
in the publication of the Federal Highway Administration 
entitled ``Guidelines and Recommendations to Accommodate Older 
Drivers and Pedestrians (FHWA-RD-01-103)'' and dated October 
2001.
    (b) Federal Share.--The Federal share of the cost of a 
project carried out under this section shall be determined in 
accordance with section 120 of title 23, United States Code.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated such sums as may be necessary to carry out 
this section for each of fiscal years 2005 through 2009.

SEC. 1406. SAFETY INCENTIVE GRANTS FOR USE OF SEAT BELTS.

    Section 157(g)(1) of title 23, United States Code, is 
amended by striking ``2004, and'' and all that follows through 
``2005'' and inserting ``2004, and $112,000,000 for fiscal year 
2005''.

SEC. 1407. SAFETY INCENTIVES TO PREVENT OPERATION OF MOTOR VEHICLES BY 
                    INTOXICATED PERSONS.

    (a) Codification of Penalty.--Section 163 of title 23, 
United States Code, is amended--
            (1) by redesignating subsection (e) as subsection 
        (f); and
            (2) by inserting after subsection (d) the 
        following:
    ``(e) Penalty.--
            ``(1) In general.--On October 1, 2003, and October 
        1 of each fiscal year thereafter, if a State has not 
        enacted or is not enforcing a law described in 
        subsection (a), the Secretary shall withhold from 
        amounts apportioned to the State on that date under 
        each of paragraphs (1), (3), and (4) of section 104(b) 
        an amount equal to the amount specified in paragraph 
        (2).
            ``(2) Amount to be withheld.--If a State is subject 
        to a penalty under paragraph (1), the Secretary shall 
        withhold for a fiscal year from the apportionments of 
        the State described in paragraph (1) an amount equal to 
        a percentage of the funds apportioned to the State 
        under paragraphs (1), (3), and (4) of section 104(b) 
        for fiscal year 2003. The percentage shall be as 
        follows:
                    ``(A) For fiscal year 2004, 2 percent.
                    ``(B) For fiscal year 2005, 4 percent.
                    ``(C) For fiscal year 2006, 6 percent.
                    ``(D) For fiscal year 2007, and each fiscal 
                year thereafter, 8 percent.
            ``(3) Failure to comply.--If, within 4 years from 
        the date that an apportionment for a State is withheld 
        in accordance with this subsection, the Secretary 
        determines that the State has enacted and is enforcing 
        a law described in subsection (a), the apportionment of 
        the State shall be increased by an amount equal to the 
        amount withheld. If, at the end of such 4-year period, 
        any State has not enacted or is not enforcing a law 
        described in subsection (a) any amounts so withheld 
        from such State shall lapse.''.
    (b) Authorization of Appropriations.--Section 163(f)(1) of 
such title (as redesignated by subsection (a)(1) of this 
section) is amended by striking ``2004, and'' and inserting 
``2004, and $110,000,000 for fiscal year 2005''.
    (c) Repeal.--Section 351 of the Department of 
Transportation and Related Agencies Appropriations Act, 2001 
(23 U.S.C. 163 note; 114 Stat. 1356A-34) is repealed.

SEC. 1408. IMPROVEMENT OR REPLACEMENT OF HIGHWAY FEATURES ON NATIONAL 
                    HIGHWAY SYSTEM.

    (a) Update of Implementation Guidance.--The Secretary, in 
cooperation with the American Association of State Highway and 
Transportation Officials, shall update as appropriate the 
August 28, 1998, Federal Highway Administration Policy on 
Implementation of the report of the Transportation Research 
Board of the National Research Council entitled ``NCHRP Report 
350-Recommended Procedures for the Safety Performance 
Evaluation of Highway Features''.
    (b) Guidance.--The Secretary, in cooperation with the 
Association, shall publish updated guidance regarding the 
conditions under which States, when choosing to improve or 
replace highway features on the National Highway System, should 
improve or replace such features with highway features that 
have been tested, evaluated, and found to be acceptable under 
the guidelines of the report referred to in subsection (a).
    (c) Matters To Be Considered.--Guidance published in 
accordance with subsection (a)--
            (1) shall address those highway features that are 
        covered by the guidelines in the report referred to in 
        subsection (b); and
            (2) shall consider types of highway features, cost-
        effectiveness, and practicality of replacement with 
        highway features that have been found to be acceptable 
        under the report guidelines to determine conditions 
        when such features should be used.

SEC. 1409. WORK ZONE SAFETY GRANTS.

    (a) In General.--The Secretary shall establish and 
implement a work zone safety grant program under which the 
Secretary may make grants to nonprofit organizations and not-
for-profit organizations to provide training to prevent or 
reduce highway work zone injuries and fatalities.
    (b) Eligible Activities.--Grants may be made under the 
program for the following purposes:
            (1) Training for construction craft workers on the 
        prevention of injuries and fatalities in highway and 
        road construction.
            (2) Development of guidelines for the prevention of 
        highway work zone injuries and fatalities.
            (3) Training for State and local government 
        transportation agencies and other groups implementing 
        guidelines for the prevention of highway work zone 
        injuries and fatalities.
    (c) Funding.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $5,000,000 for each of fiscal years 2006 through 2009.
            (2) Contract authority.--Funds authorized by this 
        subsection shall be available for obligation in the 
        same manner as if the funds were apportioned under 
        chapter 1 of title 23, United States Code; except that 
        such funds shall not be transferable.
    (d) Construction Work in Alaska.--Section 114 of title 23, 
United States Code, is amended by adding at the end of the 
following:
    ``(c) Construction Work in Alaska.--
            ``(1) In general.--The Secretary shall ensure that 
        a worker who is employed on a remote project for the 
        construction of a highway or portion of a highway 
        located on a Federal-aid system in the State of Alaska 
        and who is not a domiciled resident of the locality 
        shall receive meals and lodging.
            ``(2) Lodging.--The lodging under paragraph (1) 
        shall be in accordance with section 1910.142 of title 
        29, Code of Federal Regulations (relating to temporary 
        labor camp requirements).
            ``(3) Per diem.--
                    ``(A) In general.--Contractors are 
                encouraged to use commercial facilities and 
                lodges on remote projects, however, when such 
                facilities are not available, per diem in lieu 
                of room and lodging may be paid on remote 
                Federal highway projects at a basic rate of 
                $75.00 per day or part of a day the worker is 
                employed on the project. Where the contractor 
                provides or furnishes room and lodging or pays 
                a per diem, the cost of the amount shall not be 
                considered a part of wages and shall be 
                excluded from the calculation of wages.
                    ``(B) Secretary of labor.--Such per diem 
                rate shall be adopted by the Secretary of Labor 
                for all applicable remote Federal highway 
                projects in Alaska.
                    ``(C) Exception.--Per diem shall not be 
                allowed on any of the following remote projects 
                for the construction of a highway or portion of 
                a highway located on a Federal-aid system:
                            ``(i) West of Livengood on the 
                        Elliot Highway.
                            ``(ii) Mile 0 on the Dalton Highway 
                        to the North Slope of Alaska; north of 
                        Mile 20 on the Taylor Highway.
                            ``(iii) East of Chicken on the Top 
                        of the World Highway and south of 
                        Tetlin Junction to the Alaska Canadian 
                        border.
            ``(4) Definitions.--In this subsection, the 
        following definitions apply:
                    ``(A) Remote.--The term `remote', as used 
                with respect to a project, means that the 
                project is 65 road miles or more from the 
                international airport in Fairbanks, Anchorage, 
                or Juneau, Alaska, as the case may be, or is 
                inaccessible by road in a 2-wheel drive 
                vehicle.
                    ``(B) Resident.--The term `resident', as 
                used with respect to a project, means a person 
                living within 65 road miles of the midpoint of 
                the project for at least 12 consecutive months 
                prior to the award of the project.''.

SEC. 1410. NATIONAL WORK ZONE SAFETY INFORMATION CLEARINGHOUSE.

    (a) Grants.--The Secretary shall make grants for fiscal 
years 2006 through 2009 to a national nonprofit foundation for 
the operation of the National Work Zone Safety Information 
Clearinghouse, authorized by section 358(b)(2) of Public Law 
104-59, created for the purpose of assembling and 
disseminating, by electronic and other means, information 
relating to improvement of roadway work zone safety.
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated out of the Highway Trust Fund (other than 
the Mass Transit Account) to carry out this section $1,000,000 
for each of fiscal years 2006 through 2009.
    (c) Contract Authority.--Funds authorized by this 
subsection shall be available for obligation in the same manner 
as if the funds were apportioned under chapter 1 of title 23, 
United States Code, except the Federal share of the cost of 
activities carried out using such funds shall be 100 percent, 
and such funds shall remain available until expended and shall 
not be transferable.

SEC. 1411. ROADWAY SAFETY.

    (a) Road Safety.--
            (1) In general.--The Secretary shall enter into an 
        agreement to assist in the activities of a national 
        nonprofit organization that is dedicated solely to 
        improving public road safety--
                    (A) by improving the quality of data 
                pertaining to public road hazards and design 
                features that affect or increase the severity 
                of motor vehicle crashes;
                    (B) by developing and carrying out a public 
                awareness campaign to educate State and local 
                transportation officials, public safety 
                officials, and motorists regarding the extent 
                to which public road hazards and design 
                features are a factor in motor vehicle crashes; 
                and
                    (C) by promoting public road safety 
                research and technology transfer activities.
            (2) Funding.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) $500,000 for each of fiscal 
        years 2006 through 2009 to carry out this subsection.
            (3) Applicability of title 23.--Funds made 
        available by this subsection shall be available for 
        obligation in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States 
        Code, except that the funds shall remain available 
        until expended.
    (b) Bicycle and Pedestrian Safety Grants.--
            (1) In general.--The Secretary shall make grants to 
        a national, not-for-profit organization engaged in 
        promoting bicycle and pedestrian safety--
                    (A) to operate a national bicycle and 
                pedestrian clearinghouse;
                    (B) to develop information and educational 
                programs; and
                    (C) to disseminate techniques and 
                strategies for improving bicycle and pedestrian 
                safety.
            (2) Funding.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) $300,000 for fiscal year 2005 
        and $500,000 for each of fiscal years 2006 through 2009 
        to carry out this subsection.
            (3) Applicability of title 23.--Funds made 
        available by this subsection shall be available for 
        obligation in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States 
        Code, except that the funds shall remain available 
        until expended.

SEC. 1412. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY.

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

            Subtitle E--Construction and Contract Efficiency

SEC. 1501. PROGRAM EFFICIENCIES.

    (a) Advance Construction.--Section 115 of title 23, United 
States Code, is amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by striking subsections (a) and (b) and 
        inserting the following:
    ``(a) In General.--The Secretary may authorize a State to 
proceed with a project authorized under this title--
            ``(1) without the use of Federal funds; and
            ``(2) in accordance with all procedures and 
        requirements applicable to the project other than those 
        procedures and requirements that limit the State to 
        implementation of a project--
                    ``(A) with the aid of Federal funds 
                previously apportioned or allocated to the 
                State; or
                    ``(B) with obligation authority previously 
                allocated to the State.
    ``(b) Obligation of Federal Share.--The Secretary, on the 
request of a State and execution of a project agreement, may 
obligate all or a portion of the Federal share of a project 
authorized to proceed under this section from any category of 
funds for which the project is eligible.''.
    (b) Obligation and Release of Funds.--Section 118(d) of 
such title is amended to read as follows:
    ``(d) Obligation and Release of Funds.--
            ``(1) In general.--Funds apportioned or allocated 
        to a State for a purpose for any fiscal year shall be 
        considered to be obligated if a sum equal to the total 
        of the funds apportioned or allocated to the State for 
        that purpose for that fiscal year and previous fiscal 
        years is obligated.
            ``(2) Released funds.--Any funds released by the 
        final payment for a project, or by modifying the 
        project agreement for a project, shall be--
                    ``(A) credited to the same class of funds 
                previously apportioned or allocated to the 
                State for the project; and
                    ``(B) immediately available for obligation.
            ``(3) Net obligations.--Notwithstanding any other 
        provision of law (including a regulation), obligations 
        recorded against funds made available under this 
        subsection shall be recorded and reported as net 
        obligations.''.

SEC. 1502. HIGHWAYS FOR LIFE PILOT PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish and 
        implement a pilot program to be known as the ``Highways 
        for LIFE Pilot Program''.
            (2) Purpose.--The purpose of the pilot program 
        shall be to advance longer-lasting highways using 
        innovative technologies and practices to accomplish the 
        fast construction of efficient and safe highways and 
        bridges.
            (3) Objectives.--Under the pilot program, the 
        Secretary shall provide leadership and incentives to 
        demonstrate and promote state-of-the-art technologies, 
        elevated performance standards, and new business 
        practices in the highway construction process that 
        result in improved safety, faster construction, reduced 
        congestion from construction, and improved quality and 
        user satisfaction.
    (b) Projects.--
            (1) Applications.--To be eligible to participate in 
        the pilot program, a State shall submit to the 
        Secretary an application that is in such form and 
        contains such information as the Secretary requires. 
        Each application shall contain a description of 
        proposed projects to be carried by the State under the 
        pilot program.
            (2) Eligibility.--A proposed project shall be 
        eligible for assistance under the pilot program if the 
        project--
                    (A) constructs, reconstructs, or 
                rehabilitates a route or connection on a 
                Federal-aid highway eligible for assistance 
                under chapter 1 of title 23, United States 
                Code;
                    (B) uses innovative technologies, 
                manufacturing processes, financing, or 
                contracting methods that improve safety, reduce 
                congestion due to construction, and improve 
                quality; and
                    (C) meets additional criteria as determined 
                by the Secretary.
            (3) Project proposal.--A project proposal submitted 
        under paragraph (1) shall contain--
                    (A) an identification and description of 
                the projects to be delivered;
                    (B) a description of how the projects will 
                result in improved safety, faster construction, 
                reduced congestion due to construction, user 
                satisfaction, and improved quality;
                    (C) a description of the innovative 
                technologies, manufacturing processes, 
                financing, and contracting methods that will be 
                used for the proposed projects; and
                    (D) such other information as the Secretary 
                may require.
            (4) Selection criteria.--In selecting projects for 
        approval under this section, the Secretary shall ensure 
        that the projects provide an evaluation of a broad 
        range of technologies in a wide variety of project 
        types and shall give priority to the projects that--
                    (A) address achieving the Highways for LIFE 
                performance standards for quality, safety, and 
                speed of construction;
                    (B) deliver and deploy innovative 
                technologies, manufacturing processes, 
                financing, contracting practices, and 
                performance measures that will demonstrate 
                substantial improvements in safety, congestion, 
                quality, and cost-effectiveness;
                    (C) include innovation that will lead to 
                change in the administration of the State's 
                transportation program to more quickly 
                construct long-lasting, high-quality, cost-
                effective projects that improve safety and 
                reduce congestion;
                    (D) are or will be ready for construction 
                within 1 year of approval of the project 
                proposal; and
                    (E) meet such other criteria as the 
                Secretary determines appropriate.
            (5) Financial assistance.--
                    (A) Funds for highways for life projects.--
                Out of amounts made available to carry out this 
                section for a fiscal year, the Secretary may 
                allocate to a State up to 20 percent, but not 
                more than $5,000,000, of the total cost of a 
                project approved under this section. 
                Notwithstanding any other provision of law, 
                funds allocated to a State under this 
                subparagraph may be applied to the non-Federal 
                share of the cost of construction of a project 
                under title 23, United States Code.
                    (B) Use of apportioned funds.--A State may 
                obligate not more than 10 percent of the amount 
                apportioned to the State under 1 or more of 
                paragraphs (1), (2), (3), and (4) of section 
                104(b) of title 23, United States Code, for a 
                fiscal year for projects approved under this 
                section.
                    (C) Increased federal share.--
                Notwithstanding sections 120 and 129 of title 
                23, United States Code, the Federal share 
                payable on account of any project constructed 
                with Federal funds allocated under this 
                section, or apportioned under section 104(b) of 
                such title, to a State under such title and 
                approved under this section may amount to 100 
                percent of the cost of construction of such 
                project.
                    (D) Limitation on statutory construction.--
                Except as provided in subparagraph (C), nothing 
                in this subsection shall be construed as 
                altering or otherwise affecting the 
                applicability of the requirements of chapter 1 
                of title 23, United States Code (including 
                requirements relating to the eligibility of a 
                project for assistance under the program and 
                the location of the project), to amounts 
                apportioned to a State for a program under 
                section 104(b) that are obligated by the State 
                for projects approved under this subsection.
            (6) Project selections.--In the period of fiscal 
        years 2005 through 2009, the Secretary, to the maximum 
        extent possible, shall approve at least 1 project in 
        each State for participation in the pilot program and 
        for financial assistance under paragraph (5) if the 
        State submits an application and the project meets the 
        eligibility requirements and selection criteria under 
        this subsection.
            (7) Maximum number of projects.--The maximum number 
        of projects for which the Secretary may allocate funds 
        under this subsection in a fiscal year is 15.
    (c) Technology Partnerships.--
            (1) In general.--The Secretary may make grants or 
        enter into cooperative agreements or other transactions 
        to foster the development, improvement, and creation of 
        innovative technologies and facilities to improve 
        safety, enhance the speed of highway construction, and 
        improve the quality and durability of highways.
            (2) Federal share.--The Federal share of the cost 
        of an activity carried out under this subsection shall 
        not exceed 80 percent.
    (d) Technology Transfer and Information Dissemination.--
            (1) In general.--The Secretary shall conduct a 
        highways for life technology transfer program.
            (2) Availability of information.--The Secretary 
        shall ensure that the information and technology used, 
        developed, or deployed under this subsection is made 
        available to the transportation community and the 
        public.
    (e) Stakeholder Input and Involvement.--The Secretary shall 
establish a process for stakeholder input and involvement in 
the development, implementation, and evaluation of the Highways 
for LIFE Pilot Program. The process may include participation 
by representatives of State departments of transportation and 
other interested persons.
    (f) Project Monitoring and Evaluation.--The Secretary shall 
monitor and evaluate the effectiveness of any activity carried 
out under this section.
    (g) Contract Authority.--Except as otherwise provided in 
this section, funds authorized to be appropriated to carry out 
this section shall be available for obligation in the same 
manner as if the funds were apportioned under chapter 1 of 
title 23, United States Code.
    (h) State Defined.--In this section, the term ``State'' has 
the meaning such term has in section 101(a) of title 23, United 
States Code.

SEC. 1503. DESIGN BUILD.

    Section 112(b)(3) of title 23, United States Code, is 
amended--
            (1) by redesignating subparagraph (D) as 
        subparagraph (E); and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) Qualified projects.--A qualified 
                project referred to in subparagraph (A) is a 
                project under this chapter (including 
                intermodal projects) for which the Secretary 
                has approved the use of design-build 
                contracting under criteria specified in 
                regulations issued by the Secretary.
                    ``(D) Regulatory process.--Not later than 
                90 days after the date of enactment of the 
                SAFETEA-LU, the Secretary shall issue revised 
                regulations under section 1307(c) of the 
                Transportation Equity Act for 21st Century (23 
                U.S.C. 112 note; 112 Stat. 230) that--
                            ``(i) do not preclude a State 
                        transportation department or local 
                        transportation agency, prior to 
                        compliance with section 102 of the 
                        National Environmental Policy Act of 
                        1969 (42 U.S.C. 4332), from--
                                    ``(I) issuing requests for 
                                proposals;
                                    ``(II) proceeding with 
                                awards of design-build 
                                contracts; or
                                    ``(III) issuing notices to 
                                proceed with preliminary design 
                                work under design-build 
                                contracts;
                            ``(ii) require that the State 
                        transportation department or local 
                        transportation agency receive 
                        concurrence from the Secretary before 
                        carrying out an activity under clause 
                        (i); and
                            ``(iii) preclude the design-build 
                        contractor from proceeding with final 
                        design or construction of any permanent 
                        improvement prior to completion of the 
                        process under such section 102.''.

                          Subtitle F--Finance

SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT 
                    AMENDMENTS.

    (a) Definitions.--Section 181 of title 23, United States 
Code, is amended--
            (1) in paragraph (3) by striking ``category'' and 
        ``offered into the capital markets'';
            (2) by striking paragraph (7) and redesignating 
        paragraphs (8) through (15) as paragraphs (7) through 
        (14), respectively;
            (3) in paragraph (8) (as redesignated by paragraph 
        (2) of this subsection)--
                    (A) in subparagraph (B) by striking the 
                period at the end and inserting a semicolon; 
                and
                    (B) by striking subparagraph (D) and 
                inserting the following:
                    ``(D) a project that--
                            ``(i) is a project--
                                    ``(I) for a public freight 
                                rail facility or a private 
                                facility providing public 
                                benefit for highway users;
                                    ``(II) for an intermodal 
                                freight transfer facility;
                                    ``(III) for a means of 
                                access to a facility described 
                                in subclause (I) or (II);
                                    ``(IV) for a service 
                                improvement for a facility 
                                described in subclause (I) or 
                                (II) (including a capital 
                                investment for an intelligent 
                                transportation system); or
                                    ``(V) that comprises a 
                                series of projects described in 
                                subclauses (I) through (IV) 
                                with the common objective of 
                                improving the flow of goods;
                            ``(ii) may involve the combining of 
                        private and public sector funds, 
                        including investment of public funds in 
                        private sector facility improvements; 
                        and
                            ``(iii) if located within the 
                        boundaries of a port terminal, includes 
                        only such surface transportation 
                        infrastructure modifications as are 
                        necessary to facilitate direct 
                        intermodal interchange, transfer, and 
                        access into and out of the port.''; and
            (4) in paragraph (10) (as redesignated by paragraph 
        (2) of this subsection) by striking ``bond'' and 
        inserting ``credit''.
    (b) Determination of Eligibility.--Section 182(a) of such 
title is amended--
            (1) by striking paragraphs (1) and (2) and 
        inserting the following:
            ``(1) Inclusion in transportation plans and 
        programs.--The project shall satisfy the applicable 
        planning and programming requirements of sections 134 
        and 135 at such time as an agreement to make available 
        a Federal credit instrument is entered into under this 
        subchapter.
            ``(2) Application.--A State, local government, 
        public authority, public-private partnership, or any 
        other legal entity undertaking the project and 
        authorized by the Secretary, shall submit a project 
        application to the Secretary.'';
            (2) in paragraph (3)(A)(i) by striking 
        ``$100,000,000'' and inserting ``$50,000,000'';
            (3) in paragraph (3)(A)(ii) by striking ``50'' and 
        inserting ``33\1/3\'';
            (4) in paragraph (3)(B) by striking ``$30,000,000'' 
        and inserting ``$15,000,000''; and
            (5) in paragraph (4)--
                    (A) by striking ``Project financing'' and 
                inserting ``The Federal credit instrument''; 
                and
                    (B) by inserting before the period at the 
                end ``that also secure the project 
                obligations''.
    (c) Project Selection.--Section 182(b) of such title is 
amended--
            (1) in paragraph (1) by striking ``criteria'' the 
        second place it appears and inserting ``requirements''; 
        and
            (2) in paragraph (2)(B) by inserting ``, which may 
        be the Federal credit instrument,'' after 
        ``obligations''.
    (d) Secured Loans.--
            (1) Agreements.--Section 183(a)(1) of such title is 
        amended--
                    (A) in subparagraph (A) by inserting ``of 
                any project selected under section 602'' after 
                ``costs'';
                    (B) by striking the semicolon at the end of 
                subparagraph (B) and all that follows through 
                ``under section 182.'' and inserting ``of any 
                project selected under section 602; or''; and
                    (C) by adding at the end the following:
                    ``(C) to refinance long-term project 
                obligations or Federal credit instruments if 
                such refinancing provides additional funding 
                capacity for the completion, enhancement, or 
                expansion of any project that--
                            ``(i) is selected under section 
                        602; or
                            ``(ii) otherwise meets the 
                        requirements of section 602.''.
            (2) Investment-grade rating requirement.--Section 
        183(a)(4) of such title is amended--
                    (A) by striking ``The funding'' and 
                inserting ``The execution''; and
                    (B) by striking the first comma and all 
                that follows through ``1 rating agency''.
            (3) Terms and limitations.--Section 183(b) of such 
        title is amended--
                    (A) in paragraph (2)--
                            (i) by inserting ``the lesser of'' 
                        after ``exceed''; and
                            (ii) by inserting ``or, if the 
                        secured loan does not receive an 
                        investment grade rating, the amount of 
                        the senior project obligations'' after 
                        ``costs'';
                    (B) in paragraph (3)(A)(i) by inserting 
                ``that also secure the senior project 
                obligations'' after ``sources''; and
                    (C) in paragraph (4) by striking 
                ``marketable''.
            (4) Repayment.--Section 183(c) of such title is 
        amended--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraphs (4) and (5) 
                as paragraphs (3) and (4), respectively;
                    (C) in paragraph (3)(A) (as redesignated by 
                subparagraph (B) of this paragraph) by striking 
                ``during the 10 years''; and
                    (D) in subparagraph (3)(B)(ii) (as so 
                redesignated) by striking ``loan'' and all that 
                follows and inserting ``loan.''.
    (e) Lines of Credit.--
            (1) Terms and limitations.--Section 184(b) of such 
        title is amended--
                    (A) by striking paragraph (2) and inserting 
                the following:
            ``(2) Maximum amounts.--The total amount of the 
        line of credit shall not exceed 33 percent of the 
        reasonably anticipated eligible project costs.'';
                    (B) in paragraph (3) by striking ``, any 
                debt service reserve fund, and any other 
                available reserve'' and inserting ``but not 
                including reasonably required financing 
                reserves'';
                    (C) in paragraph (4)--
                            (i) by striking ``marketable'';
                            (ii) by striking ``on which'' and 
                        inserting ``of execution of''; and
                            (iii) by striking ``is obligated'' 
                        and inserting ``agreement'';
                    (D) in paragraph (5)(A)(i) by inserting 
                ``that also secure the senior project 
                obligations'' after ``sources''; and
                    (E) in paragraph (6) by striking ``line of 
                credit'' and inserting ``full amount of the 
                line of credit, to the extent not drawn 
                upon,''.
            (2) Repayment.--Section 184(c) of such title is 
        amended--
                    (A) in paragraph (2)--
                            (i) by striking ``scheduled'';
                            (ii) by inserting ``be scheduled 
                        to'' after ``shall''; and
                            (iii) by striking ``be fully 
                        repaid, with interest,'' and inserting 
                        ``to conclude, with full repayment of 
                        principal and interest,''; and
                    (B) by striking paragraph (3).
    (f) Program Administration.--Section 185 of such title is 
amended to read as follows:

``Sec. 185. Program administration

    ``(a) Requirement.--The Secretary shall establish a uniform 
system to service the Federal credit instruments made available 
under this subchapter.
    ``(b) Fees.--
            ``(1) In general.--The Secretary may collect and 
        spend fees, contingent upon authority being provided in 
        appropriations Acts, at a level that is sufficient to 
        cover--
                    ``(A) the costs of services of expert firms 
                retained pursuant to subsection (d); and
                    ``(B) all or a portion of the costs to the 
                Federal Government of servicing the Federal 
                credit instruments.
    ``(c) Servicer.--
            ``(1) In general.--The Secretary may appoint a 
        financial entity to assist the Secretary in servicing 
        the Federal credit instruments.
            ``(2) Duties.--The servicer shall act as the agent 
        for the Secretary.
            ``(3) Fee.--The servicer shall receive a servicing 
        fee, subject to approval by the Secretary.
    ``(d) Assistance From Expert Firms.--The Secretary may 
retain the services of expert firms, including counsel, in the 
field of municipal and project finance to assist in the 
underwriting and servicing of Federal credit instruments.''.
    (g) Funding.--Section 188 of such title is amended to read 
as follows:

``Sec. 188. Funding

    ``(a) Funding.--
            ``(1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this subchapter 
        $122,000,000 for each of fiscal years 2005 through 
        2009.
            ``(2) Availability.--Amounts made available to 
        carry out this chapter shall remain available until 
        expended.
            ``(3) Administrative costs.--From funds made 
        available to carry out this chapter, the Secretary may 
        use, for the administration of this subchapter, not 
        more than $2,200,000 for each of fiscal years 2005 
        through 2009.
    ``(b) Contract Authority.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, approval by the Secretary of a 
        Federal credit instrument that uses funds made 
        available under this subchapter shall impose upon the 
        United States a contractual obligation to fund the 
        Federal credit investment.
            ``(2) Availability.--Amounts authorized under this 
        section for a fiscal year shall be available for 
        obligation on October 1 of the fiscal year.''.
    (h) Dates for Submission of Reports.--Section 189 of such 
title is amended--
            (1) by striking the section designation and heading 
        and inserting the following:

``Sec. 189. Reports to Congress'';

            (2) by striking ``Not later than 4 years after the 
        date of enactment of this subchapter,'' and inserting 
        ``On June 1, 2006, and every 2 years thereafter,''; and
            (3) by striking ``subchapter'' each place it 
        appears and inserting ``chapter (other than section 
        610)''.
    (i) Clerical Amendment.--The analysis for chapter 1 of such 
title is amended by striking the item relating to section 185 
and inserting the following:

``185. Program administration.''.

SEC. 1602. STATE INFRASTRUCTURE BANKS.

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

``Sec. 190. State infrastructure bank program

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) Capital project.--The term `capital project' 
        has the meaning such term has under section 5302 of 
        title 49.
            ``(2) Other forms of credit assistance.--The term 
        `other forms of credit assistance' includes any use of 
        funds in an infrastructure bank--
                    ``(A) to provide credit enhancements;
                    ``(B) to serve as a capital reserve for 
                bond or debt instrument financing;
                    ``(C) to subsidize interest rates;
                    ``(D) to insure or guarantee letters of 
                credit and credit instruments against credit 
                risk of loss;
                    ``(E) to finance purchase and lease 
                agreements with respect to transit projects;
                    ``(F) to provide bond or debt financing 
                instrument security; and
                    ``(G) to provide other forms of debt 
                financing and methods of leveraging funds that 
                are approved by the Secretary and that relate 
                to the project with respect to which such 
                assistance is being provided.
            ``(3) State.--The term `State' has the meaning such 
        term has under section 401.
            ``(4) Capitalization.--The term `capitalization' 
        means the process used for depositing funds as initial 
        capital into a State infrastructure bank to establish 
        the infrastructure bank.
            ``(5) Cooperative agreement.--The term `cooperative 
        agreement' means written consent between a State and 
        the Secretary which sets forth the manner in which the 
        infrastructure bank established by the State in 
        accordance with this section will be administered.
            ``(6) Loan.--The term `loan' means any form of 
        direct financial assistance from a State infrastructure 
        bank that is required to be repaid over a period of 
        time and that is provided to a project sponsor for all 
        or part of the costs of the project.
            ``(7) Guarantee.--The term `guarantee' means a 
        contract entered into by a State infrastructure bank in 
        which the bank agrees to take responsibility for all or 
        a portion of a project sponsor's financial obligations 
        for a project under specified conditions.
            ``(8) Initial assistance.--The term `initial 
        assistance' means the first round of funds that are 
        loaned or used for credit enhancement by a State 
        infrastructure bank for projects eligible for 
        assistance under this section.
            ``(9) Leverage.--The term `leverage' means a 
        financial structure used to increase funds in a State 
        infrastructure bank through the issuance of debt 
        instruments.
            ``(10) Leveraged.--The term `leveraged', as used 
        with respect to a State infrastructure bank, means that 
        the bank has total potential liabilities that exceed 
        the capital of the bank.
    ``(b) Cooperative Agreements.--Subject to the provisions of 
this section, the Secretary may enter into cooperative 
agreements with States for the establishment of State 
infrastructure banks for making loans and providing other forms 
of credit assistance to public and private entities carrying 
out or proposing to carry out projects eligible for assistance 
under this section.
    ``(c) Interstate Compacts.--
            ``(1) In general.--Congress grants consent to 2 or 
        more of the States, entering into a cooperative 
        agreement under subsection (a) with the Secretary for 
        the establishment by such States of a multistate 
        infrastructure bank in accordance with this section, to 
        enter into an interstate compact establishing such bank 
        in accordance with this section.
            ``(2) Reservation of rights.--The right to alter, 
        amend, or repeal interstate compacts entered into under 
        this subsection is expressly reserved.
    ``(d) Funding.--
            ``(1) Highway account.--Subject to subsection (j), 
        the Secretary may permit a State entering into a 
        cooperative agreement under this section to establish a 
        State infrastructure bank to deposit into the highway 
        account of the bank not to exceed--
                    ``(A) 10 percent of the funds apportioned 
                to the State for each of fiscal years 2005 
                through 2009 under each of sections 104(b)(1), 
                104(b)(3), 104(b)(4), and 144; and
                    ``(B) 10 percent of the funds allocated to 
                the State for each of such fiscal years under 
                section 105.
            ``(2) Transit account.--Subject to subsection (j), 
        the Secretary may permit a State entering into a 
        cooperative agreement under this section to establish a 
        State infrastructure bank, and any other recipient of 
        Federal assistance under section 5307, 5309, or 5311 of 
        title 49, to deposit into the transit account of the 
        bank not to exceed 10 percent of the funds made 
        available to the State or other recipient in each of 
        fiscal years 2005 through 2009 for capital projects 
        under each of such sections.
            ``(3) Rail account.--Subject to subsection (j), the 
        Secretary may permit a State entering into a 
        cooperative agreement under this section to establish a 
        State infrastructure bank, and any other recipient of 
        Federal assistance under subtitle V of title 49, to 
        deposit into the rail account of the bank funds made 
        available to the State or other recipient in each of 
        fiscal years 2005 through 2009 for capital projects 
        under such subtitle.
            ``(4) Capital grants.--
                    ``(A) Highway account.--Federal funds 
                deposited into a highway account of a State 
                infrastructure bank under paragraph (1) shall 
                constitute for purposes of this section a 
                capitalization grant for the highway account of 
                the bank.
                    ``(B) Transit account.--Federal funds 
                deposited into a transit account of a State 
                infrastructure bank under paragraph (2) shall 
                constitute for purposes of this section a 
                capitalization grant for the transit account of 
                the bank.
                    ``(C) Rail account.--Federal funds 
                deposited into a rail account of a State 
                infrastructure bank under paragraph 3 shall 
                constitute for purposes of this section a 
                capitalization grant for the rail account of 
                the bank.
            ``(5) Special rule for urbanized areas of over 
        200,000.--Funds in a State infrastructure bank that are 
        attributed to urbanized areas of a State with urbanized 
        populations of over 200,000 under section 133(d)(3) may 
        be used to provide assistance with respect to a project 
        only if the metropolitan planning organization 
        designated for such area concurs, in writing, with the 
        provision of such assistance.
            ``(6) Discontinuance of funding.--If the Secretary 
        determines that a State is not implementing the State's 
        infrastructure bank in accordance with a cooperative 
        agreement entered into under subsection (b), the 
        Secretary may prohibit the State from contributing 
        additional Federal funds to the bank.
    ``(e) Forms of Assistance From Infrastructure Banks.--An 
infrastructure bank established under this section may make 
loans or provide other forms of credit assistance to a public 
or private entity in an amount equal to all or a part of the 
cost of carrying out a project eligible for assistance under 
this section. The amount of any loan or other form of credit 
assistance provided for the project may be subordinated to any 
other debt financing for the project. Initial assistance 
provided with respect to a project from Federal funds deposited 
into an infrastructure bank under this section may not be made 
in the form of a grant.
    ``(f) Eligible Projects.--Subject to subsection (e), funds 
in an infrastructure bank established under this section may be 
used only to provide assistance for projects eligible for 
assistance under this title and capital projects defined in 
section 5302 of title 49, and any other projects relating to 
surface transportation that the Secretary determines to be 
appropriate.
    ``(g) Infrastructure Bank Requirements.--In order to 
establish an infrastructure bank under this section, the State 
establishing the bank shall--
            ``(1) deposit in cash, at a minimum, into each 
        account of the bank from non-Federal sources an amount 
        equal to 25 percent of the amount of each 
        capitalization grant made to the State and deposited 
        into such account; except that, if the deposit is into 
        the highway account of the bank and the State has a 
        non-Federal share under section 120(b) that is less 
        than 25 percent, the percentage to be deposited from 
        non-Federal sources shall be the lower percentage of 
        such grant;
            ``(2) ensure that the bank maintains on a 
        continuing basis an investment grade rating on its 
        debt, or has a sufficient level of bond or debt 
        financing instrument insurance, to maintain the 
        viability of the bank;
            ``(3) ensure that investment income derived from 
        funds deposited to an account of the bank are--
                    ``(A) credited to the account;
                    ``(B) available for use in providing loans 
                and other forms of credit assistance to 
                projects eligible for assistance from the 
                account; and
                    ``(C) invested in United States Treasury 
                securities, bank deposits, or such other 
                financing instruments as the Secretary may 
                approve to earn interest to enhance the 
                leveraging of projects assisted by the bank;
            ``(4) ensure that any loan from the bank will bear 
        interest at or below market interest rates, as 
        determined by the State, to make the project that is 
        the subject of the loan feasible;
            ``(5) ensure that repayment of any loan from the 
        bank will commence not later than 5 years after the 
        project has been completed or, in the case of a highway 
        project, the facility has opened to traffic, whichever 
        is later;
            ``(6) ensure that the term for repaying any loan 
        will not exceed 30 years after the date of the first 
        payment on the loan; and
            ``(7) require the bank to make an annual report to 
        the Secretary on its status no later than September 30 
        of each year and such other reports as the Secretary 
        may require under guidelines issued to carry out this 
        section.
    ``(h) Applicability of Federal Law.--
            ``(1) In general.--The requirements of this title 
        and title 49 that would otherwise apply to funds made 
        available under this title or such title and projects 
        assisted with those funds shall apply to--
                    ``(A) funds made available under this title 
                or such title and contributed to an 
                infrastructure bank established under this 
                section, including the non-Federal contribution 
                required under subsection (g); and
                    ``(B) projects assisted by the bank through 
                the use of the funds;
        except to the extent that the Secretary determines that 
        any requirement of such title (other than sections 113 
        and 114 of this title and section 5333 of title 49) is 
        not consistent with the objectives of this section.
            ``(2) Repayments.--The requirements of this title 
        and title 49 shall apply to repayments from non-Federal 
        sources to an infrastructure bank from projects 
        assisted by the bank. Such a repayment shall be 
        considered to be Federal funds.
    ``(i) United States Not Obligated.--The deposit of Federal 
funds into an infrastructure bank established under this 
section shall not be construed as a commitment, guarantee, or 
obligation on the part of the United States to any third party, 
nor shall any third party have any right against the United 
States for payment solely by virtue of the contribution. Any 
security or debt-financing instrument issued by the 
infrastructure bank shall expressly state that the security or 
instrument does not constitute a commitment, guarantee, or 
obligation of the United States.
    ``(j) Management of Federal Funds.--Sections 3335 and 6503 
of title 31 shall not apply to funds deposited into an 
infrastructure bank under this section.
    ``(k) Program Administration.--For each of fiscal years 
2005 through 2009, a State may expend not to exceed 2 percent 
of the Federal funds contributed to an infrastructure bank 
established by the State under this section to pay the 
reasonable costs of administering the bank.''.
    (b) Preparatory Amendments.--
            (1) Section 181.--Section 181 of such title is 
        amended--
                    (A) by striking the section designator and 
                heading and inserting the following:

``Sec. 181. Generally applicable provisions'';

                    (B) by striking ``In this subchapter'' and 
                inserting the following:
    ``(a) Definitions.--In this chapter'';
                    (C) in paragraph (5) by striking ``184'' 
                and inserting ``604'';
                    (D) in paragraph (11) (as redesignated by 
                section 1601(a) of this Act) by striking 
                ``183'' and inserting ``603''; and
                    (E) by adding at the end the following:
    ``(b) Treatment of Chapter.--For purposes of this title, 
this chapter shall be treated as being part of chapter 1.''.
            (2) Section 182.--Section 182(b)(2)(A)(viii) of 
        such title is amended by inserting ``and chapter 1'' 
        after ``this chapter''.
            (3) Section 183.--Section 183(a)(3) of such title 
        is amended by striking ``182(b)(2)(B)'' and inserting 
        ``602(b)(2)(B)''.
            (4) Section 184.--Section 184 of such title is 
        amended--
                    (A) in subsection (a)(1) by striking 
                ``182'' and inserting ``602'';
                    (B) in subsection (a)(3) by striking 
                ``182(b)(2)(B)'' and inserting 
                ``602(b)(2)(B)''; and
                    (C) in subsection (b)(10) by striking 
                ``183'' and inserting ``603''.
            (5) References in subchapter.--Subchapter II of 
        chapter 1 of such title is amended by striking ``this 
        subchapter'' each place it appears and inserting ``this 
        chapter''.
            (6) Subchapter headings.--Chapter 1 of such title 
        is further amended--
                    (A) by striking ``SUBCHAPTER I--GENERAL 
                PROVISIONS'' preceding section 101; and
                    (B) by striking ``SUBCHAPTER II--
                INFRASTRUCTURE FINANCE'' preceding section 181.
    (c) Chapter 6.--Such title is further amended by adding at 
the end the following:

                  ``CHAPTER 6--INFRASTRUCTURE FINANCE

``Sec.
``601. Generally applicable provisions.
``602. Determination of eligibility and project selection.
``603. Secured loans.
``604. Lines of credit.
``605. Program administration.
``606. State and local permits.
``607. Regulations.
``608. Funding.
``609. Reports to Congress.
``610. State infrastructure bank program.''.

    (d) Moving and Redesignating.--Such title is further 
amended--
            (1) by redesignating sections 181 through 189 as 
        sections 601 through 609, respectively;
            (2) by moving such sections from chapter 1 to 
        chapter 6 (as added by subsection (c)); and
            (3) by inserting such sections after the analysis 
        for chapter 6.
    (e) Analysis for Chapter 1 and Table of Chapters.--
            (1) Analysis for chapter 1.--The analysis for 
        chapter 1 of such title is amended--
                    (A) by striking the headings for 
                subchapters I and II; and
                    (B) by striking the items relating to 
                sections 181 through 189.
            (2) Table of chapters.--The table of chapters for 
        such title is amended by inserting after the item 
        relating to chapter 5 the following:

``6. Infrastructure Finance......................................601.''.

SEC. 1603. USE OF EXCESS FUNDS AND FUNDS FOR INACTIVE PROJECTS.

    (a) Definitions.--In this section, the following 
definitions apply:
            (1) Eligible funds.--
                    (A) In general.--The term ``eligible 
                funds'' means excess funds or inactive funds 
                for a specific transportation project or 
                activity that were--
                            (i) allocated before fiscal year 
                        1991; and
                            (ii) designated in a public law, or 
                        a report accompanying a public law, for 
                        allocation for the specific surface 
                        transportation project or activity.
                    (B) Inclusion.--The term ``eligible funds'' 
                includes funds described in subparagraph (A) 
                that were allocated and designated for a 
                demonstration project.
            (2) Excess funds.--The term ``excess funds'' 
        means--
                    (A) funds obligated for a specific 
                transportation project or activity that remain 
                available for the project or activity after the 
                project or activity has been completed or 
                canceled; or
                    (B) an unobligated balance of funds 
                allocated for a transportation project or 
                activity that the State in which the project or 
                activity was to be carried out certifies are no 
                longer needed for the project or activity.
            (3) Inactive funds.--The term ``inactive funds'' 
        means--
                    (A) an obligated balance of Federal funds 
                for an eligible transportation project or 
                activity against which no expenditures have 
                been charged during any 1-year period beginning 
                after the date of obligation of the funds; and
                    (B) funds that are available to carry out a 
                transportation project or activity in a State, 
                but, as certified by the State, are unlikely to 
                be advanced for the project or activity during 
                the 1-year period beginning on the date of 
                certification.
    (b) Availability for STP Purposes.--Eligible funds shall 
be--
            (1) made available in accordance with this section 
        to the State that originally received the funds; and
            (2) available for obligation for any eligible 
        purpose under section 133 of title 23, United States 
        Code.
    (c) Retention for Original Purpose.--
            (1) In general.--The Secretary may determine that 
        eligible funds identified as inactive funds shall 
        remain available for the purpose for which the funds 
        were initially made available if the applicable State 
        certifies that the funds are necessary for that initial 
        purpose.
            (2) Report.--A certification provided by a State 
        under paragraph (1) shall include a report on the 
        status of, and an estimated completion date for, the 
        project that is the subject of the certification.
    (d) Authority To Obligate.--Notwithstanding the original 
source or period of availability of eligible funds, the 
Secretary may, on the request by a State--
            (1) obligate the funds for any eligible purpose 
        under section 133 of title 23, United States Code; or
            (2)(A) deobligate the funds; and
            (B) reobligate the funds for any eligible purpose 
        under that section.
    (e) Applicability.--
            (1) In general.--Subject to paragraph (2), this 
        section applies only to eligible funds.
            (2) Discretionary allocations; section 125 
        projects.--This section does not apply to funds that 
        are--
                    (A) allocated at the discretion of the 
                Secretary and for which the Secretary has the 
                authority to withdraw the allocation for use on 
                other projects; or
                    (B) made available to carry out projects 
                under section 125 of title 23, United States 
                Code.
    (f) Period of Availability; Title 23 Requirements.--
            (1) In general.--Notwithstanding the original 
        source or period of availability of eligible funds 
        obligated, or deobligated and reobligated, under 
        subsection (d), the eligible funds--
                    (A) shall remain available for obligation 
                for a period of 3 fiscal years after the fiscal 
                year in which this Act is enacted; and
                    (B) except as provided in paragraph (2), 
                shall be subject to the requirements of title 
                23, United States Code, that apply to section 
                133 of that title, including provisions 
                relating to Federal share.
            (2) Exception.--With respect to eligible funds 
        described in paragraph (1)--
                    (A) section 133(d) of title 23, United 
                States Code, shall not apply; and
                    (B) the period of availability of the 
                eligible funds shall be determined in 
                accordance with this section.
    (g) Report.--Not later than 1 year after the date of 
enactment of this Act, and annually thereafter, the Secretary 
shall submit to the Committee on Environment and Public Works 
of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives a report 
describing any action taken by the Secretary under this 
section.
    (h) Sense of Congress Regarding Use of Eligible Funds.--It 
is the sense of Congress that eligible funds made available 
under this Act or title 23, United States Code, should be 
available for obligation for transportation projects and 
activities in the same geographic region for which the eligible 
funds were initially made available.

SEC. 1604. TOLLING.

    (a) Value Pricing Pilot Program.--Section 1012(b)(8) of the 
Intermodal Surface Transportation Efficiency Act of 1991 (23 
U.S.C. 149 note; 105 Stat. 1938) is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (C) and (D), respectively; and
            (2) by inserting before subparagraph (C) (as 
        redesignated by paragraph (1)) the following:
                    ``(A) In general.--There are authorized to 
                be appropriated to the Secretary from the 
                Highway Trust Fund (other than the Mass Transit 
                Account) to carry out this subsection--
                            ``(i) for fiscal year 2005, 
                        $11,000,000; and
                            ``(ii) for each of fiscal years 
                        2006 through 2009, $12,000,000.
                    ``(B) Set-aside for projects not involving 
                highway tolls.--Of the amounts made available 
                to carry out this subsection, $3,000,000 for 
                each of fiscal years 2006 through 2009 shall be 
                available only for congestion pricing pilot 
                projects that do not involve highway tolls.''.
    (b) Express Lanes Demonstration Program.--
            (1) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Eligible toll facility.--The term 
                ``eligible toll facility'' includes--
                            (i) a facility in existence on the 
                        date of enactment of this Act that 
                        collects tolls;
                            (ii) a facility in existence on the 
                        date of enactment of this Act that 
                        serves high occupancy vehicles;
                            (iii) a facility modified or 
                        constructed after the date of enactment 
                        of this Act to create additional tolled 
                        lane capacity (including a facility 
                        constructed by a private entity or 
                        using private funds); and
                            (iv) in the case of a new lane 
                        added to a previously non-tolled 
                        facility, only the new lane.
                    (B) Nonattainment area.--The term 
                ``nonattainment area'' has the meaning given 
                that term in section 171 of the Clean Air Act 
                (42 U.S.C. 7501).
            (2) Demonstration program.--Notwithstanding 
        sections 129 and 301 of title 23, United States Code, 
        the Secretary shall carry out 15 demonstration projects 
        during the period of fiscal years 2005 through 2009 to 
        permit States, public authorities, or a public or 
        private entities designated by States, to collect a 
        toll from motor vehicles at an eligible toll facility 
        for any highway, bridge, or tunnel, including 
        facilities on the Interstate System--
                    (A) to manage high levels of congestion;
                    (B) to reduce emissions in a nonattainment 
                area or maintenance area; or
                    (C) to finance the expansion of a highway, 
                for the purpose of reducing traffic congestion, 
                by constructing 1 or more additional lanes 
                (including bridge, tunnel, support, and other 
                structures necessary for that construction) on 
                the Interstate System.
            (3) Limitation on use of revenues.--
                    (A) Use.--
                            (i) In general.--Toll revenues 
                        received under paragraph (2) shall be 
                        used by a State, public authority, or 
                        private entity designated by a State, 
                        for--
                                    (I) debt service;
                                    (II) a reasonable return on 
                                investment of any private 
                                financing;
                                    (III) the costs necessary 
                                for proper operation and 
                                maintenance of any facilities 
                                under paragraph (2) (including 
                                reconstruction, resurfacing, 
                                restoration, and 
                                rehabilitation); or
                                    (IV) if the State, public 
                                authority, or private entity 
                                annually certifies that the 
                                tolled facility is being 
                                adequately operated and 
                                maintained, any other purpose 
                                relating to a highway or 
                                transit project carried out 
                                under title 23 or 49, United 
                                States Code.
                    (B) Requirements.--
                            (i) Variable price requirement.--A 
                        facility that charges tolls under this 
                        subsection may establish a toll that 
                        varies in price according to time of 
                        day or level of traffic, as appropriate 
                        to manage congestion or improve air 
                        quality.
                            (ii) HOV variable pricing 
                        requirement.--The Secretary shall 
                        require, for each high occupancy 
                        vehicle facility that charges tolls 
                        under this subsection, that the tolls 
                        vary in price according to time of day 
                        or level of traffic, as appropriate to 
                        manage congestion or improve air 
                        quality.
                            (iii) HOV passenger requirements.--
                        Pursuant to section 166 of title 23, 
                        United States Code, a State may permit 
                        motor vehicles with fewer than 2 
                        occupants to operate in high occupancy 
                        vehicle lanes as part of a variable 
                        toll pricing program established under 
                        this subsection.
                    (C) Agreement.--
                            (i) In general.--Before the 
                        Secretary may permit a facility to 
                        charge tolls under this subsection, the 
                        Secretary and the applicable State, 
                        public authority, or private entity 
                        designated by a State shall enter into 
                        an agreement for each facility 
                        incorporating the conditions described 
                        in subparagraphs (A) and (B).
                            (ii) Termination.--An agreement 
                        under clause (i) shall terminate with 
                        respect to a facility upon the decision 
                        of the State, public authority, or 
                        private entity designated by a State to 
                        discontinue the variable tolling 
                        program under this subsection for the 
                        facility.
                            (iii) Debt.--If there is any debt 
                        outstanding on a facility at the time 
                        at which the decision is made to 
                        discontinue the program under this 
                        subsection with respect to the 
                        facility, the facility may continue to 
                        charge tolls in accordance with the 
                        terms of the agreement until such time 
                        as the debt is retired.
                    (D) Limitation on federal share.--The 
                Federal share of the cost of a project on a 
                facility tolled under this subsection, 
                including a project to install the toll 
                collection facility shall be a percentage, not 
                to exceed 80 percent, determined by the 
                applicable State.
            (4) Eligibility.--To be eligible to participate in 
        the program under this subsection, a State, public 
        authority, or private entity designated by a State 
        shall provide to the Secretary--
                    (A) a description of the congestion or air 
                quality problems sought to be addressed under 
                the program;
                    (B) a description of--
                            (i) the goals sought to be achieved 
                        under the program; and
                            (ii) the performance measures that 
                        would be used to gauge the success made 
                        toward reaching those goals; and
                    (C) such other information as the Secretary 
                may require.
            (5) Automation.--Fees collected from motorists 
        using an express lane shall be collected only through 
        the use of noncash electronic technology that optimizes 
        the free flow of traffic on the tolled facility.
            (6) Interoperability.--
                    (A) In general.--Not later than 180 days 
                after the date of enactment of this Act, the 
                Secretary shall promulgate a final rule 
                specifying requirements, standards, or 
                performance specifications for automated toll 
                collection systems implemented under this 
                section.
                    (B) Development.--In developing that rule, 
                which shall be designed to maximize the 
                interoperability of electronic collection 
                systems, the Secretary shall, to the maximum 
                extent practicable--
                            (i) seek to accelerate progress 
                        toward the national goal of achieving a 
                        nationwide interoperable electronic 
                        toll collection system;
                            (ii) take into account the use of 
                        noncash electronic technology currently 
                        deployed within an appropriate 
                        geographical area of travel and the 
                        noncash electronic technology likely to 
                        be in use within the next 5 years; and
                            (iii) seek to minimize additional 
                        costs and maximize convenience to users 
                        of toll facility and to the toll 
                        facility owner or operator.
            (7) Reporting.--
                    (A) In general.--The Secretary, in 
                cooperation with State and local agencies and 
                other program participants and with opportunity 
                for public comment, shall--
                            (i) develop and publish performance 
                        goals for each express lane project;
                            (ii) establish a program for 
                        regular monitoring and reporting on the 
                        achievement of performance goals, 
                        including--
                                    (I) effects on travel, 
                                traffic, and air quality;
                                    (II) distribution of 
                                benefits and burdens;
                                    (III) use of alternative 
                                transportation modes; and
                                    (IV) use of revenues to 
                                meet transportation or impact 
                                mitigation needs.
                    (B) Reports to congress.--The Secretary 
                shall submit to the Committee on Environment 
                and Public Works of the Senate and the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives--
                            (i) not later than 1 year after the 
                        date of enactment of this Act, and 
                        annually thereafter, a report that 
                        describes in detail the uses of funds 
                        under this subsection in accordance 
                        with paragraph (8)(D); and
                            (ii) not later than 3 years after 
                        the date of enactment of this Act, and 
                        every 3 years thereafter, a report that 
                        describes any success of the program 
                        under this subsection in meeting 
                        congestion reduction and other 
                        performance goals established for 
                        express lane programs.
    (c) Interstate System Construction Toll Pilot Program.--
            (1) Establishment.--The Secretary shall establish 
        and implement an Interstate System construction toll 
        pilot program under which the Secretary, 
        notwithstanding sections 129 and 301 of title 23, 
        United States Code, may permit a State or an interstate 
        compact of States to collect tolls on a highway, 
        bridge, or tunnel on the Interstate System for the 
        purpose of constructing Interstate highways.
            (2) Limitation on number of facilities.--The 
        Secretary may permit the collection of tolls under this 
        section on 3 facilities on the Interstate System.
            (3) Eligibility.--To be eligible to participate in 
        the pilot program, a State shall submit to the 
        Secretary an application that contains, at a minimum, 
        the following:
                    (A) An identification of the facility on 
                the Interstate System proposed to be a toll 
                facility.
                    (B) In the case of a facility that affects 
                a metropolitan area, an assurance that the 
                metropolitan planning organization designated 
                under section 134 or 135 for the area has been 
                consulted concerning the placement and amount 
                of tolls on the facility.
                    (C) An analysis demonstrating that 
                financing the construction of the facility with 
                the collection of tolls under the pilot program 
                is the most efficient and economical way to 
                advance the project.
                    (D) A facility management plan that 
                includes--
                            (i) a plan for implementing the 
                        imposition of tolls on the facility;
                            (ii) a schedule and finance plan 
                        for the construction of the facility 
                        using toll revenues;
                            (iii) a description of the public 
                        transportation agency that will be 
                        responsible for implementation and 
                        administration of the pilot program;
                            (iv) a description of whether 
                        consideration will be given to 
                        privatizing the maintenance and 
                        operational aspects of the facility, 
                        while retaining legal and 
                        administrative control of the portion 
                        of the Interstate route; and
                            (v) such other information as the 
                        Secretary may require.
            (4) Selection criteria.--The Secretary may approve 
        the application of a State under paragraph (3) only if 
        the Secretary determines that--
                    (A) the State's analysis under paragraph 
                (3)(C) is reasonable;
                    (B) the State plan for implementing tolls 
                on the facility takes into account the 
                interests of local, regional, and interstate 
                travelers;
                    (C) the State plan for construction of the 
                facility using toll revenues is reasonable;
                    (D) the State will develop, manage, and 
                maintain a system that will automatically 
                collect the tolls; and
                    (E) the State has given preference to the 
                use of a public toll agency with demonstrated 
                capability to build, operate, and maintain a 
                toll expressway system meeting criteria for the 
                Interstate System.
            (5) Prohibition on noncompete agreements.--Before 
        the Secretary may permit a State to participate in the 
        pilot program, the State must enter into an agreement 
        with the Secretary that provides that the State will 
        not enter into an agreement with a private person under 
        which the State is prevented from improving or 
        expanding the capacity of public roads adjacent to the 
        toll facility to address conditions resulting from 
        traffic diverted to such roads from the toll facility, 
        including--
                    (A) excessive congestion;
                    (B) pavement wear; and
                    (C) an increased incidence of traffic 
                accidents, injuries, or fatalities.
            (6) Limitations on use of revenues; audits.--Before 
        the Secretary may permit a State to participate in the 
        pilot program, the State must enter into an agreement 
        with the Secretary that provides that--
                    (A) all toll revenues received from 
                operation of the toll facility will be used 
                only for--
                            (i) debt service;
                            (ii) reasonable return on 
                        investment of any private person 
                        financing the project; and
                            (iii) any costs necessary for the 
                        improvement of and the proper operation 
                        and maintenance of the toll facility, 
                        including reconstruction, resurfacing, 
                        restoration, and rehabilitation of the 
                        toll facility; and
                    (B) regular audits will be conducted to 
                ensure compliance with subparagraph (A) and the 
                results of such audits will be transmitted to 
                the Secretary.
            (7) Limitation on use of interstate maintenance 
        funds.--During the term of the pilot program, funds 
        apportioned for Interstate maintenance under section 
        104(b)(4) of title 23, United States Code, may not be 
        used on a facility for which tolls are being collected 
        under the program.
            (8) Program term.--The Secretary may approve an 
        application of a State for permission to collect a toll 
        under this section only if the application is received 
        by the Secretary before the last day of the 10-year 
        period beginning on the date of enactment of this Act.
            (9) Interstate system defined.--In this section, 
        the term ``Interstate System'' has the meaning such 
        term has under section 101 of title 23, United States 
        Code.

                   Subtitle G--High Priority Projects

SEC. 1701. HIGH PRIORITY PROJECTS PROGRAM.

    (a) Authorization of High Priority Projects.--Section 
117(a) of title 23, United States Code, is amended to read as 
follows:
    ``(a) Authorization of High Priority Projects.--
            ``(1) In general.--The Secretary is authorized to 
        carry out high priority projects with funds made 
        available to carry out the high priority projects 
        program under this section.
            ``(2) Availability of funds.--
                    ``(A) For tea-21.--Of amounts made 
                available to carry out this section for fiscal 
                years 1998 through 2003, the Secretary, subject 
                to subsection (b), shall make available to 
                carry out each project described in section 
                1602 of the Transportation Equity Act for the 
                21st Century the amount listed for such project 
                in such section.
                    ``(B) For safetea-lu.--Of amounts made 
                available to carry out this section for fiscal 
                years 2005 through 2009, the Secretary, subject 
                to subsection (b), shall make available to 
                carry out each project described in section 
                1702 of the SAFETEA-LU the amount listed for 
                such project in such section.
            ``(3) Availability of unallocated funds.--Any 
        amounts made available to carry out such program that 
        are not allocated for projects described in such 
        section shall be available to the Secretary, subject to 
        subsection (b), to carry out such other high priority 
        projects as the Secretary determines appropriate.''.
    (b) Allocation Percentages.--Section 117(b) of such title 
is amended to read as follows:
    ``(b) For TEA-21.--For each project to be carried out with 
funds made available to carry out the high priority projects 
program under this section for fiscal years 1998 through 2003--
            ``(1) 11 percent of such amount shall be available 
        for obligation beginning in fiscal year 1998;
            ``(2) 15 percent of such amount shall be available 
        for obligation beginning in fiscal year 1999;
            ``(3) 18 percent of such amount shall be available 
        for obligation beginning in fiscal year 2000;
            ``(4) 18 percent of such amount shall be available 
        for obligation beginning in fiscal year 2001;
            ``(5) 19 percent of such amount shall be available 
        for obligation beginning in fiscal year 2002; and
            ``(6) 19 percent of such amount shall be available 
        for obligation beginning in fiscal year 2003.
    ``(c) For SAFETEA-LU.--For each project to be carried out 
with funds made available to carry out the high priority 
projects program under this section for fiscal years 2005 
through 2009--
            ``(1) 20 percent of such amount shall be available 
        for obligation beginning in fiscal year 2005;
            ``(2) 20 percent of such amount shall be available 
        for obligation beginning in fiscal year 2006;
            ``(3) 20 percent of such amount shall be available 
        for obligation beginning in fiscal year 2007;
            ``(4) 20 percent of such amount shall be available 
        for obligation beginning in fiscal year 2008; and
            ``(5) 20 percent of such amount shall be available 
        for obligation beginning in fiscal year 2009.''.
    (c) Advance Construction.--Section 117(e) of such title is 
amended--
            (1) in paragraph (1) by inserting after ``21st 
        Century'' the following: ``or section 1701 of the 
        SAFETEA-LU , as the case may be,''; and
            (2) by striking ``section 1602 of the 
        Transportation Equity Act for the 21st Century.'' and 
        inserting ``such section 1602 or 1702, as the case may 
        be.''
    (d) Availability of Obligation Limitation.--Section 117(g) 
of such title is amended by inserting after ``21st Century'' 
the following: ``or section 1102(g) of the SAFETEA-LU, as the 
case may be''.
    (e) Federal-State Relationship.--Section 145(b) of such 
title is amended--
            (1) by inserting after ``described in'' the 
        following: ``section 1702 of the SAFETEA-LU,'';
            (2) by inserting after ``for such projects by'' the 
        following: ``section 1101(a)(16) of the SAFETEA-LU,''; 
        and
            (3) by striking ``117 of title 23, United States 
        Code,'' and inserting ``section 117 of this title,''.

SEC. 1702. PROJECT AUTHORIZATIONS.

    Subject to section 117 of title 23, United States Code, the 
amount listed for each high priority project in the following 
table shall be available (from amounts made available by 
section 1101(a)(16) of this Act) for fiscal years 2005 through 
2009 to carry out each such project:


SEC. 1703. TECHNICAL AMENDMENTS TO TRANSPORTATION PROJECTS.

    (a) TEA-21.--The table contained in section 1602 of the 
Transportation Equity Act for the 21st Century (112 Stat. 257) 
is amended--
            (1) in item number 35 by inserting ``and for other 
        related purposes'' after ``Yard'';
            (2) in item number 78 by striking ``Third'' and all 
        that follows through ``Bridge'' and inserting ``Bayview 
        Transportation Improvements Project'';
            (3) in item number 312 by inserting ``through 
        construction'' after ``engineering'';
            (4) in item number 566 by striking ``Prunedale 
        Bypass'' and inserting ``improvements to Prunedale'';
            (5) in item number 732 by striking ``reviews and 
        other preliminary work'' and inserting ``reviews, other 
        preliminary work, and transitional construction'';
            (6) in item number 744 by striking ``Preliminary'' 
        and all that follows through ``Fitchburg'' and 
        inserting ``Design, construction or reconstruction, and 
        right of way acquisition for roadway improvements along 
        the Route 12 corridor in Leominster and Fitchburg to 
        enhance access from Route 2 to North Leominster and 
        downtown Fitchburg'';
            (7) in item number 800 by striking ``Fairview 
        Township'' and inserting ``or other projects selected 
        by the York County, Pennsylvania MPO'';
            (8) in item number 820 by striking ``Conduct'' and 
        all that follows through ``interchange'' and inserting 
        ``Conduct a transportation needs study and make 
        improvements to I-75 interchanges in the Grayling 
        area'';
            (9) in item number 863, by adding at the end the 
        following: ``, including the Cuyahoga-Woodland Avenue 
        Bridge'';
            (10) in item number 897 by striking ``Road 
        upgrade'' and all that follows through ``Hills'' and 
        inserting ``Engineering and construction of a new 
        access road to a development near Interstate Route 57 
        and 167th Street in Country Club Hills'';
            (11) in item 1096 by striking ``Construct'' and all 
        that follows through ``Independence'' and inserting 
        ``Construction and improvements in Reminderville, Ohio 
        (43 percent); streetscaping, bicycle trails, and 
        related improvements to the I-90--SR 615 Interchange in 
        Mentor, Ohio (20 percent); planning and construction of 
        a bicycle trail adjacent to such Interchange (14 
        percent); Eastlake Stadium transit intermodal facility 
        (16 percent); and purchase of right-of-way for 
        transportation enhancement activities in Bainbridge 
        Township, Ohio (7 percent)'';
            (12) in item number 1121 by striking ``Construct'' 
        and all that follows through ``Douglaston Parkway'' and 
        inserting ``Provide landscaping along both sides of the 
        Grand Central Parkway from 188th Street to 172nd 
        Street'';
            (13) in item number 1225 by striking ``Construct SR 
        9 bypass'' and inserting ``Study, design, and construct 
        transportation solutions for SR 9 corridor'';
            (14) in item number 1349 by inserting ``, and 
        improvements to streets and roads providing access 
        to,'' after ``along'';
            (15) in item number 1375 by striking 
        ``Preliminary'' and all that follows through ``Emmet 
        County'' and inserting ``Petoskey area transportation 
        needs study and trunkline preservation and safety in 
        the Petoskey area'';
            (16) in item number 1392 by striking ``Construct'' 
        and all that follows through ``multimodal center'' and 
        inserting ``Improve the ramp configuration at the I-476 
        PA Turnpike Landsdale Interchange'';
            (17) in item number 1447 by striking ``Extend'' and 
        all that follows through ``Valparaiso'' and inserting 
        ``Design and construction of interchange at I-65 and 
        109th Avenue, Crown Point''; and
            (18) in item number 1474 by adding at the end the 
        following: ``, widen Cuyahoga SR87, and $4,000,000 of 
        the amount authorized to construct grading separation 
        at Front Street, Berea''.
    (b) ISTEA .--Item number 32 in the table contained in 
section 1106(a)(2) of the Intermodal Surface Transportation 
Efficiency Act of 1991 (105 Stat. 2038) is amended by striking 
``Extension of 34th Street from IL Rt. 15 to County Road 10'' 
and inserting ``Extension and improvements of 34th Street''.

                        Subtitle H--Environment

SEC. 1801. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES.

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

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

    ``(a) In General.--The Secretary shall carry out a program 
for construction of ferry boats and ferry terminal facilities 
in accordance with section 129(c).
    ``(b) Federal Share.--The Federal share of the cost of 
construction of ferry boats, ferry terminals, and ferry 
maintenance facilities under this section shall be 80 percent.
    ``(c) Allocation of Funds.--The Secretary shall give 
priority in the allocation of funds under this section to those 
ferry systems, and public entities responsible for developing 
ferries, that--
            ``(1) provide critical access to areas that are not 
        well-served by other modes of surface transportation;
            ``(2) carry the greatest number of passengers and 
        vehicles; or
            ``(3) carry the greatest number of passengers in 
        passenger-only service.
    ``(d) Set-Aside for Projects on NHS.--
            ``(1) In general.--$20,000,000 of the amount made 
        available to carry out this section for each of fiscal 
        years 2005 through 2009 shall be obligated for the 
        construction or refurbishment of ferry boats and ferry 
        terminal facilities and approaches to such facilities 
        within marine highway systems that are part of the 
        National Highway System.
            ``(2) Alaska.--$10,000,000 of the $20,000,000 for a 
        fiscal year made available under paragraph (1) shall be 
        made available to the State of Alaska.
            ``(3) New jersey.--$5,000,000 of the $20,000,000 
        for a fiscal year made available under paragraph (1) 
        shall be made available to the State of New Jersey.
            ``(4) Washington.--$5,000,000 of the $20,000,000 
        for a fiscal year made available under paragraph (1) 
        shall be made available to the State of Washington.
    ``(e) Period of Availability.--Notwithstanding section 
118(b), funds made available to carry out this section shall 
remain available until expended.
    ``(f) Applicability.--All provisions of this chapter that 
are applicable to the National Highway System, other than 
provisions relating to apportionment formula and Federal share, 
shall apply to funds made available to carry out this section, 
except as determined by the Secretary to be inconsistent with 
this section.''.
    (b) Clerical Amendment.--The analysis for such subchapter 
is amended by striking the item relating to section 147 and 
inserting the following:

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

    (c) Conforming Repeal.--Section 1064 of the Intermodal 
Surface Transportation Efficiency Act of 1991 (105 Stat. 2005) 
is repealed.
    (d) Authorization of Appropriations.--In addition to 
amounts made available to carry out section 147 of title 23, 
United States Code, by section 1101 of this Act, there are 
authorized to be appropriated such sums as may be necessary to 
carry out such section 147 for fiscal year 2006 and each fiscal 
year thereafter. Such funds shall remain available until 
expended.
    (e) National Ferry Database.--
            (1) Establishment.--The Secretary, acting through 
        the Bureau of Transportation Statistics, shall 
        establish and maintain a national ferry database.
            (2) Contents.--The database shall contain current 
        information regarding ferry systems, including 
        information regarding routes, vessels, passengers and 
        vehicles carried, funding sources and such other 
        information as the Secretary considers useful.
            (3) Update report.--Using information collected 
        through the database, the Secretary shall periodically 
        modify as appropriate the report submitted under 
        section 1207(c) of the Transportation Equity Act for 
        the 21st Century (23 U.S.C. 129 note; 112 Stat. 185-
        186).
            (4) Requirements.--The Secretary shall--
                    (A) compile the database not later than 1 
                year after the date of enactment of this Act 
                and update the database every 2 years 
                thereafter;
                    (B) ensure that the database is easily 
                accessible to the public; and
                    (C) make available, from the amounts made 
                available for the Bureau of Transportation 
                Statistics by section 5101 of this Act, not 
                more than $500,000 for each of fiscal years 
                2006 through 2009 to establish and maintain the 
                database.
    (f) Territory Ferries.--Section 129(c)(5) of title 23, 
United States Code, is amended by striking ``the Commonwealth 
of Puerto Rico'' each place it appears and inserting ``any 
territory of the United States''.

SEC. 1802. NATIONAL SCENIC BYWAYS PROGRAM.

    (a) In General.--Section 162(a) of title 23, United States 
Code, is amended--
            (1) in paragraph (1) by striking ``the roads as'' 
        and all that follows and inserting ``the roads as--
                    ``(A) National Scenic Byways;
                    ``(B) All-American Roads; or
                    ``(C) America's Byways.''; and
            (2) by striking paragraph (3) and inserting the 
        following:
            ``(3) Nomination.--
                    ``(A) In general.--To be considered for a 
                designation, a road must be nominated by a 
                State, an Indian tribe, or a Federal land 
                management agency and must first be designated 
                as a State scenic byway, an Indian tribe scenic 
                byway, or, in the case of a road on Federal 
                land, as a Federal land management agency 
                byway.
                    ``(B) Nomination by indian tribes.--An 
                Indian tribe may nominate a road as a National 
                Scenic Byway under subparagraph (A) only if a 
                Federal land management agency (other than the 
                Bureau of Indian Affairs), a State, or a 
                political subdivision of a State does not 
                have--
                            ``(i) jurisdiction over the road; 
                        or
                            ``(ii) responsibility for managing 
                        the road.
                    ``(C) Safety.--An Indian tribe shall 
                maintain the safety and quality of roads 
                nominated by the Indian tribe under 
                subparagraph (A).
            ``(4) Reciprocal notification.--States, Indian 
        tribes, and Federal land management agencies shall 
        notify each other regarding nominations made under this 
        subsection for roads that--
                    ``(A) are within the jurisdictional 
                boundary of the State, Federal land management 
                agency, or Indian tribe; or
                    ``(B) directly connect to roads for which 
                the State, Federal land management agency, or 
                Indian tribe is responsible.''.
    (b) Grants and Technical Assistance.--Section 162(b) of 
such title is amended--
            (1) in paragraph (1) by inserting ``and Indian 
        tribes'' after ``provide technical assistance to 
        States'';
            (2) in paragraph (1)(A) by striking ``designated 
        as'' and all that follows through ``; and'' and 
        inserting ``designated as--
                            ``(i) National Scenic Byways;
                            ``(ii) All-American Roads;
                            ``(iii) America's Byways;
                            ``(iv) State scenic byways; or
                            ``(v) Indian tribe scenic byways; 
                        and''; and
            (3) in paragraph (1)(B) by inserting ``or Indian 
        tribe'' after ``State'';
            (4) in paragraph (2)(A) by striking ``Byway or All-
        American Road'' and inserting ``Byway, All-American 
        Road, or 1 of America's Byways'';
            (5) in paragraph (2)(B)--
                    (A) by striking ``State-designated'' and 
                inserting ``State or Indian tribe''; and
                    (B) by striking ``designation as a'' and 
                all that follows through ``; and'' and 
                inserting ``designation as--
                            ``(i) a National Scenic Byway;
                            ``(ii) an All-American Road; or
                            ``(iii) 1 of America's Byways; 
                        and''; and
            (6) in paragraph (2)(C) by inserting ``or Indian 
        tribe'' after ``State''.
    (c) Eligible Projects.--Section 162(c) of such title is 
amended--
            (1) in paragraph (1) by inserting ``or Indian 
        tribe'' after ``State'';
            (2) in paragraph (3)--
                    (A) by inserting ``Indian tribe scenic 
                byway,'' after ``improvements to a State scenic 
                byway,''; and
                    (B) by inserting ``Indian tribe scenic 
                byway,'' after ``designation as a State scenic 
                byway,''; and
            (3) in paragraph (4) by striking ``passing lane,''.
    (d) Conforming Amendment.--Section 162(e) of such title is 
amended by inserting ``or Indian tribe'' after ``State''.

SEC. 1803. AMERICA'S BYWAYS RESOURCE CENTER.

    (a) In General.--The Secretary shall allocate funds made 
available to carry out this section to the America's Byways 
Resource Center established pursuant to section 1215(b)(1) of 
the Transportation Equity Act for the 21st Century (112 Stat. 
209).
    (b) Technical Support and Education.--
            (1) Use of funds.--The Center shall use funds 
        allocated to the Center under this section to continue 
        to provide technical support and conduct educational 
        activities for the national scenic byways program 
        established under section 162 of title 23, United 
        States Code.
            (2) Eligible activities.--Technical support and 
        educational activities carried out under this 
        subsection shall provide local officials and 
        organizations associated with National Scenic Byways, 
        All-American Roads, and America's Byways with 
        proactive, technical, and on-site customized 
        assistance, including training, communications 
        (including a public awareness series), publications, 
        conferences, on-site meetings, and other assistance 
        considered appropriate to develop and sustain such 
        byways and roads.
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated out of the Highway Trust Fund (other than 
the Mass Transit Account) to carry out this section $1,500,000 
for fiscal year 2005 and $3,000,000 for each of fiscal years 
2006 through 2009.
    (d) Applicability of Title 23.--Funds authorized by this 
section shall be available for obligation in the same manner as 
if such funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of the cost 
of any project or activity carried out under this section shall 
be 100 percent, and such funds shall remain available until 
expended and shall not be transferable.

SEC. 1804. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION.

    (a) Definitions.--In this section, the following 
definitions apply:
            (1) Historic covered bridge.--The term ``historic 
        covered bridge'' means a covered bridge that is listed 
        or eligible for listing on the National Register of 
        Historic Places.
            (2) State.--The term ``State'' has the meaning such 
        term has in section 101(a) of title 23, United States 
        Code.
    (b) Historic Covered Bridge Preservation.--The Secretary 
shall--
            (1) collect and disseminate information on historic 
        covered bridges;
            (2) conduct educational programs relating to the 
        history and construction techniques of historic covered 
        bridges;
            (3) conduct research on the history of historic 
        covered bridges; and
            (4) conduct research on, and study techniques for, 
        protecting historic covered bridges from rot, fire, 
        natural disasters, or weight-related damage.
    (c) Grants.--
            (1) In general.--The Secretary shall make a grant 
        to a State that submits an application to the Secretary 
        that demonstrates a need for assistance in carrying out 
        1 or more historic covered bridge projects described in 
        paragraph (2).
            (2) Eligible projects.--A grant under paragraph (1) 
        may be made for a project--
                    (A) to rehabilitate or repair a historic 
                covered bridge; or
                    (B) to preserve a historic covered bridge, 
                including through--
                            (i) installation of a fire 
                        protection system, including a 
                        fireproofing or fire detection system 
                        and sprinklers;
                            (ii) installation of a system to 
                        prevent vandalism and arson; or
                            (iii) relocation of a bridge to a 
                        preservation site.
            (3) Authenticity requirements.--A grant under 
        paragraph (1) may be made for a project only if--
                    (A) to the maximum extent practicable, the 
                project--
                            (i) is carried out in the most 
                        historically appropriate manner; and
                            (ii) preserves the existing 
                        structure of the historic covered 
                        bridge; and
                    (B) the project provides for the 
                replacement of wooden components with wooden 
                components, unless the use of wood is 
                impracticable for safety reasons.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section, out of the 
Highway Trust Fund (other than the Mass Transit Account), 
$10,000,000 for each of fiscal years 2006 through 2009.
    (e) Applicability of Title 23.--Funds made available to 
carry out this section shall be available for obligation in the 
same manner as if the funds were apportioned under chapter 1 of 
title 23, United States Code; except that the Federal share of 
the cost of any project or activity carried out under this 
section shall be determined in accordance with section 120 of 
such title, and such funds shall remain available until 
expended and shall not be transferable.

SEC. 1805. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.

    (a) In General.--Any State that demolishes a bridge or an 
overpass that is eligible for Federal assistance under the 
highway bridge replacement and rehabilitation program under 
section 144 of title 23, United States Code, is directed to 
first make the debris from the demolition of such bridge or 
overpass available for beneficial use by a Federal, State, or 
local government, unless such use obstructs navigation.
    (b) Recipient Responsibilities.--A recipient of the debris 
described in subsection (a) shall--
            (1) bear the additional cost associated with having 
        the debris made available;
            (2) ensure that placement of the debris complies 
        with applicable law; and
            (3) assume all future legal responsibility arising 
        from the placement of the debris, which may include 
        entering into an agreement to hold the owner of the 
        demolished bridge or overpass harmless in any liability 
        action.
    (c) Definition.--In this section, the term ``beneficial 
use'' means the application of the debris for purposes of shore 
erosion control or stabilization, ecosystem restoration, and 
marine habitat creation.

SEC. 1806. ADDITIONAL AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES 
                    WITH INDIAN RESERVATIONS.

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

SEC. 1807. NONMOTORIZED TRANSPORTATION PILOT PROGRAM.

    (a) Establishment.--The Secretary shall establish and carry 
out a nonmotorized transportation pilot program to construct, 
in the following 4 communities selected by the Secretary, a 
network of nonmotorized transportation infrastructure 
facilities, including sidewalks, bicycle lanes, and pedestrian 
and bicycle trails, that connect directly with transit 
stations, schools, residences, businesses, recreation areas, 
and other community activity centers:
            (1) Columbia, Missouri.
            (2) Marin County, California.
            (3) Minneapolis-St. Paul, Minnesota.
            (4) Sheboygan County, Wisconsin.
    (b) Purpose.--The purpose of the program shall be to 
demonstrate the extent to which bicycling and walking can carry 
a significant part of the transportation load, and represent a 
major portion of the transportation solution, within selected 
communities.
    (c) Grants.--In carrying out the program, the Secretary may 
make a grant of $6,250,000 per fiscal year for each of the 
communities set forth in subsection (a) to State, local, and 
regional agencies that the Secretary determines are suitably 
equipped and organized to carry out the objectives and 
requirements of this section. An agency that receives a grant 
under this section may suballocate grant funds to a nonprofit 
organization to carry out the program under this section.
    (d) Statistical Information.--In carrying out the program, 
the Secretary shall develop statistical information on changes 
in motor vehicle, nonmotorized transportation, and public 
transportation usage in communities participating in the 
program and assess how such changes decrease congestion and 
energy usage, increase the frequency of bicycling and walking, 
and promote better health and a cleaner environment.
    (e) Reports.--The Secretary shall submit to Congress an 
interim report not later than September 30, 2007, and a final 
report not later than September 30, 2010, on the results of the 
program.
    (f) Funding.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        section, out of the Highway Trust Fund (other than the 
        Mass Transit Account), $25,000,000 for each of fiscal 
        years 2006 through 2009.
            (2) Contract authority.--Funds authorized to be 
        appropriated by this section shall be available for 
        obligation in the same manner and to the same extent as 
        if the funds were apportioned under chapter 1 of title 
        23, United States Code; except that the Federal share 
        of the cost of the project shall be 100 percent, and 
        the funds shall remain available until expended and 
        shall not be transferable.
    (g) Treatment of Projects.--Notwithstanding any other 
provision of law, projects assisted under this subsection shall 
be treated as projects on a Federal-aid system under chapter 1 
of title 23, United States Code.

SEC. 1808. ADDITION TO CMAQ-ELIGIBLE PROJECTS.

    (a) Former 1-Hour Maintenance Areas.--Section 149(b) of 
title 23, United States Code, is amended in the matter 
preceding paragraph (1)(A) by inserting ``or is required to 
prepare, and file with the Administrator of the Environmental 
Protection Agency, maintenance plans under the Clean Air Act 
(42 U.S.C. 7401 et seq.)'' after ``1997,''.
    (b) Eligible Projects.--Section 149(b) of such title is 
amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1)(A)(i) if the Secretary, after consultation 
        with the Administrator determines, on the basis of 
        information published by the Environmental Protection 
        Agency pursuant to section 108(f)(1)(A) of the Clean 
        Air Act (other than clause (xvi)) that the project or 
        program is likely to contribute to--
                            ``(I) the attainment of a national 
                        ambient air quality standard; or
                            ``(II) the maintenance of a 
                        national ambient air quality standard 
                        in a maintenance area; and
            ``(ii) a high level of effectiveness in reducing 
        air pollution, in cases of projects or programs where 
        sufficient information is available in the database 
        established pursuant to subsection (h) to determine the 
        relative effectiveness of such projects or programs; 
        or,
            ``(B) in any case in which such information is not 
        available, if the Secretary, after such consultation, 
        determines that the project or program is part of a 
        program, method, or strategy described in such section 
        108(f)(1)(A);''.
            (2) in paragraph (4)--
                    (A) by inserting ``, including advanced 
                truck stop electrification systems,'' after 
                ``facility or program''; and
                    (B) by striking ``or'' at the end;
            (3) in paragraph (5)--
                    (A) by inserting ``improve transportation 
                systems management and operations that mitigate 
                congestion and improve air quality,'' after 
                ``intersections,''; and
                    (B) by striking the period at the end and 
                inserting a semicolon; and
            (4) by adding at the end the following:
            ``(6) if the project or program involves the 
        purchase of integrated, interoperable emergency 
        communications equipment; or
            ``(7) if the project or program is for--
                    ``(A) the purchase of diesel retrofits that 
                are--
                            ``(i) for motor vehicles (as 
                        defined in section 216 of the Clean Air 
                        Act (42 U.S.C. 7550)); or
                            ``(ii) published in the list under 
                        subsection (f)(2) for non-road vehicles 
                        and non-road engines (as defined in 
                        section 216 of the Clean Air Act (42 
                        U.S.C. 7550)) that are used in 
                        construction projects that are--
                                    ``(I) located in 
                                nonattainment or maintenance 
                                areas for ozone, 
                                PM10, or 
                                PM2.5 (as defined 
                                under the Clean Air Act (42 
                                U.S.C. 7401 et seq.)); and
                                    ``(II) funded, in whole or 
                                in part, under this title; or
                    ``(B) the conduct of outreach activities 
                that are designed to provide information and 
                technical assistance to the owners and 
                operators of diesel equipment and vehicles 
                regarding the purchase and installation of 
                diesel retrofits.''.
    (c) States Receiving Minimum Apportionment.--Section 149(c) 
of such title is amended--
            (1) in paragraph (1) by striking ``for any project 
        eligible under the surface transportation program under 
        section 133.'' and inserting the following: ``for any 
        project in the State that--
                    ``(A) would otherwise be eligible under 
                this section as if the project were carried out 
                in a nonattainment or maintenance area; or
                    ``(B) is eligible under the surface 
                transportation program under section 133.''; 
                and
            (2) in paragraph (2) by striking ``for any project 
        in the State eligible under section 133.'' and 
        inserting the following: ``for any project in the State 
        that--
                    ``(A) would otherwise be eligible under 
                this section as if the project were carried out 
                in a nonattainment or maintenance area; or
                    ``(B) is eligible under the surface 
                transportation program under section 133.''.
    (d) Cost-Effective Emission Reduction Guidance.--Section 
149 of such title is amended by adding at the end the 
following:
    ``(f) Cost-Effective Emission Reduction Guidance.--
            ``(1) Definitions.--In this subsection, the 
        following definitions apply:
                    ``(A) Administrator.--The term 
                `Administrator' means the Administrator of the 
                Environmental Protection Agency.
                    ``(B) Diesel retrofit.--The term `diesel 
                retrofit' means a replacement, repowering, 
                rebuilding, after treatment, or other 
                technology, as determined by the Administrator.
            ``(2) Emission reduction guidance.--The 
        Administrator, in consultation with the Secretary, 
        shall publish a list of diesel retrofit technologies 
        and supporting technical information for--
                    ``(A) diesel emission reduction 
                technologies certified or verified by the 
                Administrator, the California Air Resources 
                Board, or any other entity recognized by the 
                Administrator for the same purpose;
                    ``(B) diesel emission reduction 
                technologies identified by the Administrator as 
                having an application and approvable test plan 
                for verification by the Administrator or the 
                California Air Resources Board that is 
                submitted not later that 18 months of the date 
                of enactment of this subsection;
                    ``(C) available information regarding the 
                emission reduction effectiveness and cost 
                effectiveness of technologies identified in 
                this paragraph, taking into consideration air 
                quality and health effects.
            ``(3) Priority.--
                    ``(A) In general.--States and metropolitan 
                planning organizations shall give priority in 
                distributing funds received for congestion 
                mitigation and air quality projects and 
                programs from apportionments derived from 
                application of sections 104(b)(2)(B) and 
                104(b)(2)(C) to--
                            ``(i) diesel retrofits, 
                        particularly where necessary to 
                        facilitate contract compliance, and 
                        other cost-effective emission reduction 
                        activities, taking into consideration 
                        air quality and health effects; and
                            ``(ii) cost-effective congestion 
                        mitigation activities that provide air 
                        quality benefits.
                    ``(B) Savings.--This paragraph is not 
                intended to disturb the existing authorities 
                and roles of governmental agencies in making 
                final project selections.
            ``(4) No effect on authority or restrictions.--
        Nothing in this subsection modifies or otherwise 
        affects any authority or restriction established under 
        the Clean Air Act (42 U.S.C. 7401 et seq.) or any other 
        law (other than provisions of this title relating to 
        congestion mitigation and air quality).''.
    (e) Improved Interagency Consultation.--Section 149 of such 
title (as amended by subsection (d)) is amended by adding at 
the end the following:
    ``(g) Interagency Consultation.--The Secretary shall 
encourage States and metropolitan planning organizations to 
consult with State and local air quality agencies in 
nonattainment and maintenance areas on the estimated emission 
reductions from proposed congestion mitigation and air quality 
improvement programs and projects.''.
    (f) Evaluation and Assessment of CMAQ Projects.--Section 
149 of such title (as amended by subsection (e)) is amended by 
adding at the end the following:
    ``(h) Evaluation and Assessment of Projects.--
            ``(1) In general.--The Secretary, in consultation 
        with the Administrator of the Environmental Protection 
        Agency, shall evaluate and assess a representative 
        sample of projects funded under the congestion 
        mitigation and air quality program to--
                    ``(A) determine the direct and indirect 
                impact of the projects on air quality and 
                congestion levels; and
                    ``(B) ensure the effective implementation 
                of the program.
            ``(2) Database.--Using appropriate assessments of 
        projects funded under the congestion mitigation and air 
        quality program and results from other research, the 
        Secretary shall maintain and disseminate a cumulative 
        database describing the impacts of the projects.
            ``(3) Consideration.--The Secretary, in 
        consultation with the Administrator, shall consider the 
        recommendations and findings of the report submitted to 
        Congress under section 1110(e) of the Transportation 
        Equity Act for the 21st Century (112 Stat. 144), 
        including recommendations and findings that would 
        improve the operation and evaluation of the congestion 
        mitigation and air quality improvement program.''.
    (g) Flexibility in the State of Montana.--The State of 
Montana may use funds apportioned under section 104(b)(2) of 
title 23, United States Code, for the operation of public 
transit activities that serve a nonattainment or maintenance 
area.
    (h) Availability of Funds for State of Michigan.--The State 
of Michigan may use funds apportioned under section 104(b)(2) 
of such title for the operation and maintenance of intelligent 
transportation system strategies that serve a nonattainment or 
maintenance area.
    (i) Availability of Funds for the State of Maine.--The 
State of Maine may use funds apportioned under section 
104(b)(2) of such title to support, through September 30, 2009, 
the operation of passenger rail service between Boston, 
Massachusetts, and Portland, Maine.
    (j) Availability of Funds for Oregon.--The State of Oregon 
may use funds apportioned on or before September 30, 2009, 
under section 104(b)(2) of such title to support the operation 
of additional passenger rail service between Eugene and 
Portland.
    (k) Availabilty of Funds for Certain Other States.--The 
States of Missouri, Iowa, Minnesota, Wisconsin, Illinois, 
Indiana, and Ohio may use funds apportioned under section 
104(b)(2) of such title to purchase alternative fuel (as 
defined in section 301 of the Energy Policy Act of 1992 (42 
U.S.C. 13211)) or biodiesel.

                       Subtitle I--Miscellaneous

SEC. 1901. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING 
                    SOURCES IN TITLE 23.

    (a) In General.--Chapter 3 of title 23, United States Code, 
is amended by inserting after section 320--
            (1) the following:

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

            (2) the text of section 154 of the Federal-Aid 
        Highway Act of 1987 (23 U.S.C. 101 note).
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 320 the 
following:

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

    (c) Conforming Repeal.--Section 154 of the Federal-Aid 
Highway Act of 1987 (23 U.S.C. 101 note; 101 Stat. 209) is 
repealed.

SEC. 1902. DONATIONS AND CREDITS.

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

SEC. 1903. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23.

    (a) In General.--Chapter 3 of title 23, United States Code, 
is amended by inserting after section 312--
            (1) the following:

``Sec. 313. Buy America''; and

            (2) the text of section 165 of the Highway 
        Improvement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 
        2136).
    (b) Clerical Amendment.--The analysis for chapter 3 of such 
title is amended by inserting after the item relating to 
section 312 the following:

``313. Buy America.''.

    (c) Conforming Amendments.--Section 313 of such title (as 
added by subsection (a)) is amended--
            (1) in subsection (a) by striking ``by this Act'' 
        the first place it appears and all that follows through 
        ``of 1978'' and inserting ``to carry out the Surface 
        Transportation Assistance Act of 1982 (96 Stat. 2097) 
        or this title'';
            (2) in subsection (b) by redesignating paragraph 
        (4) as paragraph (3);
            (3) in subsection (d) by striking ``this Act,'' and 
        all that follows through ``Code, which'' and inserting 
        ``the Surface Transportation Assistance Act of 1982 (96 
        Stat. 2097) or this title that'';
            (4) by striking subsection (e); and
            (5) by redesignating subsections (f) and (g) as 
        subsections (e) and (f), respectively.
    (d) Conforming Repeal.--Section 165 of the Highway 
Improvement Act of 1982 (23 U.S.C. 101 note; 96 Stat. 2136) is 
repealed.

SEC. 1904. STEWARDSHIP AND OVERSIGHT.

    (a) In General.--Section 106 of title 23, United States 
Code, is amended--
            (1) by striking subsection (e) and inserting the 
        following:
    ``(e) Value Engineering Analysis.--
            ``(1) Definition of value engineering analysis.--
                    ``(A) In general.--In this subsection, the 
                term `value engineering analysis' means a 
                systematic process of review and analysis of a 
                project, during the concept and design phases, 
                by a multidisciplined team of persons not 
                involved in the project, that is conducted to 
                provide recommendations such as those described 
                in subparagraph (B) for--
                            ``(i) providing the needed 
                        functions safely, reliably, and at the 
                        lowest overall cost;
                            ``(ii) improving the value and 
                        quality of the project; and
                            ``(iii) reducing the time to 
                        complete the project.
                    ``(B) Inclusions.--The recommendations 
                referred to in subparagraph (A) include, with 
                respect to a project--
                            ``(i) combining or eliminating 
                        otherwise inefficient use of costly 
                        parts of the original proposed design 
                        for the project; and
                            ``(ii) completely redesigning the 
                        project using different technologies, 
                        materials, or methods so as to 
                        accomplish the original purpose of the 
                        project.
            ``(2) Analysis.--The State shall provide a value 
        engineering analysis or other cost-reduction analysis 
        for--
                    ``(A) each project on the Federal-aid 
                system with an estimated total cost of 
                $25,000,000 or more;
                    ``(B) a bridge project with an estimated 
                total cost of $20,000,000 or more; and
                    ``(C) any other project the Secretary 
                determines to be appropriate.
            ``(3) Major projects.--The Secretary may require 
        more than 1 analysis described in paragraph (2) for a 
        major project described in subsection (h).
            ``(4) Requirements.--Analyses described in 
        paragraph (1) for a bridge project shall--
                    ``(A) include bridge substructure 
                requirements based on construction material; 
                and
                    ``(B) be evaluated--
                            ``(i) on engineering and economic 
                        bases, taking into consideration 
                        acceptable designs for bridges; and
                            ``(ii) using an analysis of life-
                        cycle costs and duration of project 
                        construction.''; and
            (2) by striking subsections (g) and (h) and 
        inserting the following:
    ``(g) Oversight Program.--
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary shall 
                establish an oversight program to monitor the 
                effective and efficient use of funds authorized 
                to carry out this title.
                    ``(B) Minimum requirement.--At a minimum, 
                the program shall be responsive to all areas 
                relating to financial integrity and project 
                delivery.
            ``(2) Financial integrity.--
                    ``(A) Financial management systems.--The 
                Secretary shall perform annual reviews that 
                address elements of the State transportation 
                departments' financial management systems that 
                affect projects approved under subsection (a).
                    ``(B) Project costs.--The Secretary shall 
                develop minimum standards for estimating 
                project costs and shall periodically evaluate 
                the practices of States for estimating project 
                costs, awarding contracts, and reducing project 
                costs.
            ``(3) Project delivery.--The Secretary shall 
        perform annual reviews that address elements of the 
        project delivery system of a State, which elements 
        include 1 or more activities that are involved in the 
        life cycle of a project from conception to completion 
        of the project.
            ``(4) Responsibility of the states.--
                    ``(A) In general.--The States shall be 
                responsible for determining that subrecipients 
                of Federal funds under this title have--
                            ``(i) adequate project delivery 
                        systems for projects approved under 
                        this section; and
                            ``(ii) sufficient accounting 
                        controls to properly manage such 
                        Federal funds.
                    ``(B) Periodic review.--The Secretary shall 
                periodically review the monitoring of 
                subrecipients by the States.
            ``(5) Specific oversight responsibilities.--
                    ``(A) Effect of section.--Nothing in this 
                section shall affect or discharge any oversight 
                responsibility of the Secretary specifically 
                provided for under this title or other Federal 
                law.
                    ``(B) Appalachian development highways.--
                The Secretary shall retain full oversight 
                responsibilities for the design and 
                construction of all Appalachian development 
                highways under section 14501 of title 40.
    ``(h) Major Projects.--
            ``(1) In general.--Notwithstanding any other 
        provision of this section, a recipient of Federal 
        financial assistance for a project under this title 
        with an estimated total cost of $500,000,000 or more, 
        and recipients for such other projects as may be 
        identified by the Secretary, shall submit to the 
        Secretary for each project--
                    ``(A) a project management plan; and
                    ``(B) an annual financial plan.
            ``(2) Project management plan.--A project 
        management plan shall document--
                    ``(A) the procedures and processes that are 
                in effect to provide timely information to the 
                project decisionmakers to effectively manage 
                the scope, costs, schedules, and quality of, 
                and the Federal requirements applicable to, the 
                project; and
                    ``(B) the role of the agency leadership and 
                management team in the delivery of the project.
            ``(3) Financial plan.--A financial plan shall--
                    ``(A) be based on detailed estimates of the 
                cost to complete the project; and
                    ``(B) provide for the annual submission of 
                updates to the Secretary that are based on 
                reasonable assumptions, as determined by the 
                Secretary, of future increases in the cost to 
                complete the project.
    ``(i) Other Projects.--A recipient of Federal financial 
assistance for a project under this title with an estimated 
total cost of $100,000,000 or more that is not covered by 
subsection (h) shall prepare an annual financial plan. Annual 
financial plans prepared under this subsection shall be made 
available to the Secretary for review upon the request of the 
Secretary.''.
    (b) Conforming Amendments.--Section 114(a) of title 23, 
United States Code, is amended--
            (1) in the first sentence by striking ``highways or 
        portions of highways located on a Federal-aid system'' 
        and inserting ``Federal-aid highway or a portion of a 
        Federal-aid highway''; and
            (2) by striking the second sentence and inserting 
        ``The Secretary shall have the right to conduct such 
        inspections and take such corrective action as the 
        Secretary determines to be appropriate.''.

SEC. 1905. TRANSPORTATION DEVELOPMENT CREDITS.

    Section 120(j)(1) of title 23, United States Code, is 
amended--
            (1) by striking ``A State'' and inserting the 
        following:
                    ``(A) In general.--A State''; and
            (2) by striking the last sentence and inserting the 
        following:
                    ``(B) Special rule for use of federal 
                funds.--If the public, quasi-public, or private 
                agency has built, improved, or maintained the 
                facility using Federal funds, the credit under 
                this paragraph shall be reduced by a percentage 
                equal to the percentage of the total cost of 
                building, improving, or maintaining the 
                facility that was derived from Federal funds.
                    ``(C) Federal funds defined.--In this 
                paragraph, the term `Federal funds' does not 
                include loans of Federal funds or other 
                financial assistance that must be repaid to the 
                Government.''.

SEC. 1906. GRANT PROGRAM TO PROHIBIT RACIAL PROFILING.

    (a) Grants.--Subject to the requirements of this section, 
the Secretary shall make grants to a State that--
            (1)(A) has enacted and is enforcing a law that 
        prohibits the use of racial profiling in the 
        enforcement of State laws regulating the use of 
        Federal-aid highways; and
            (B) is maintaining and allows public inspection of 
        statistical information for each motor vehicle stop 
        made by a law enforcement officer on a Federal-aid 
        highway in the State regarding the race and ethnicity 
        of the driver and any passengers; or
            (2) provides assurances satisfactory to the 
        Secretary that the State is undertaking activities to 
        comply with the requirements of paragraph (1).
    (b) Eligible Activities.--A grant received by a State under 
subsection (a) shall be used by the State--
            (1) in the case of a State eligible under 
        subsection (a)(1), for costs of--
                    (A) collecting and maintaining of data on 
                traffic stops;
                    (B) evaluating the results of the data; and
                    (C) developing and implementing programs to 
                reduce the occurrence of racial profiling, 
                including programs to train law enforcement 
                officers; and
            (2) in the case of a State eligible under 
        subsection (a)(2), for costs of--
                    (A) activities to comply with the 
                requirements of subsection (a)(1); and
                    (B) any eligible activity under paragraph 
                (1).
    (c) Racial Profiling.--
            (1) In general.--To meet the requirement of 
        subsection (a)(1), a State law shall prohibit, in the 
        enforcement of State laws regulating the use of 
        Federal-aid highways, a State or local law enforcement 
        officer from using the race or ethnicity of the driver 
        or passengers to any degree in making routine or 
        spontaneous law enforcement decisions, such as ordinary 
        traffic stops on Federal-aid highways.
            (2) Limitation.--Nothing in this subsection shall 
        alter the manner in which a State or local law 
        enforcement officer considers race or ethnicity 
        whenever there is trustworthy information, relevant to 
        the locality or time frame, that links persons of a 
        particular race or ethnicity to an identified criminal 
        incident, scheme, or organization.
    (d) Limitations.--
            (1) Maximum amount of grants.--The total amount of 
        grants made to a State under this section in a fiscal 
        year may not exceed 5 percent of the amount made 
        available to carry out this section in the fiscal year.
            (2) Eligibility.--A State may not receive a grant 
        under subsection (a)(2) in more than 2 fiscal years.
    (e) Authorization of Appropriations.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $7,500,000 for each of fiscal years 2005 through 2009.
            (2) Contract authority.--Funds authorized by this 
        subsection shall be available for obligation in the 
        same manner as if the funds were apportioned under 
        chapter 1 of title 23, United States Code, except the 
        Federal share of the cost of activities carried out 
        using such funds shall be 80 percent, and such funds 
        shall remain available until expended and shall not be 
        transferable.

SEC. 1907. PAVEMENT MARKING SYSTEMS DEMONSTRATION PROJECTS.

    (a) In General.--The Secretary shall conduct a 
demonstration project in the State of Alaska, and a 
demonstration project in the State of Tennessee, to study the 
safety impacts, environmental impacts, and cost effectiveness 
of different pavement marking systems and the effect of State 
bidding and procurement processes on the quality of pavement 
marking material employed in highway projects. The 
demonstration projects shall each include an evaluation of the 
impacts and effectiveness of increasing the width of pavement 
marking edge lines from 4 inches to 6 inches and an evaluation 
of advanced acrylic water-borne pavement markings.
    (b) Report.--Not later than June 30, 2009, the Secretary 
shall submit to Congress a report on the results of the 
demonstration projects, together with findings and 
recommendations on methods that will optimize the cost-benefit 
ratio of the use of Federal funds on pavement marking.
    (c) Funding.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        section, out of the Highway Trust Fund (other than the 
        Mass Transit Account), $1,000,000 for each of fiscal 
        years 2006 through 2009.
            (2) Contract authority.--Funds authorized to be 
        appropriated by this section shall be available for 
        obligation in the same manner and to the same extent as 
        if such funds were apportioned under chapter 1 of title 
        23, United States Code; expect that the Federal share 
        of the cost of the demonstration projects shall be 100 
        percent, and such funds shall remain available until 
        expended and shall not be transferable.

SEC. 1908. INCLUSION OF CERTAIN ROUTE SEGMENTS ON INTERSTATE SYSTEM AND 
                    NHS.

    (a) Interstate System.--
            (1) Creek turnpike, oklahoma.--The Secretary shall 
        designate as part of the Interstate System (as defined 
        in section 101 of title 23, United States Code) in 
        accordance with section 103(c)(4) of such title the 
        portion of the Creek Turnpike connecting Interstate 
        Route 44 east and west of Tulsa, Oklahoma.
            (2) Certain section of interstate route 181.--The 
        Secretary shall designate as part of Interstate Route 
        26 the 11-mile section of Interstate Route 181 lying 
        northwest of the intersection with Interstate Route 81, 
        Tennessee.
            (3) Treatment.--The designations under paragraph 
        (2) shall be treated, for purposes of title 23, United 
        States Code, as being made under section 103(c)(4) of 
        such title.
    (b) National Highway System.--The Secretary shall designate 
as a component of the National Highway System in accordance 
with section 103(b)(4) of title 23, United States Code, the 
portion of United States Route 271 from the Arkansas State 
line, west to the intersection with United States Route 59, and 
northwest to the intersection with Interstate Route 40, 
Sallisaw, Oklahoma.

SEC. 1909. FUTURE OF SURFACE TRANSPORTATION SYSTEM.

    (a) Declaration of Policy.--Section 101(b) of title 23, 
United States Code, is amended--
            (1) by striking ``(b) It is hereby declared'' and 
        all that follows through the first undesignated 
        paragraph and inserting the following:
    ``(b) Declaration of Policy.--
            ``(1) Acceleration of construction of federal-aid 
        highway systems.--Congress declares that it is in the 
        national interest to accelerate the construction of 
        Federal-aid highway systems, including the Dwight D. 
        Eisenhower National System of Interstate and Defense, 
        because many of the highways (or portions of the 
        highways) are inadequate to meet the needs of local and 
        interstate commerce for the national and civil 
        defense.'';
            (2) in the second undesignated paragraph by 
        striking ``It is hereby declared'' and all that follows 
        through ``objectives of this Act'' and inserting the 
        following:
            ``(2) Completion of interstate system.--Congress 
        declares that the prompt and early completion of the 
        Dwight D. Eisenhower National System of Interstate and 
        Defense Highways (referred to in this section as the 
        `Interstate System'), so named because of its primary 
        importance to the national defense, is essential to the 
        national interest''; and
            (3) by striking the third undesignated paragraph 
        and inserting the following:
            ``(3) Transportation needs of 21st century.--
        Congress declares that--
                    ``(A) it is in the national interest to 
                preserve and enhance the surface transportation 
                system to meet the needs of the United States 
                for the 21st Century;
                    ``(B) the current urban and long distance 
                personal travel and freight movement demands 
                have surpassed the original forecasts and 
                travel demand patterns are expected to continue 
                to change;
                    ``(C) continued planning for and investment 
                in surface transportation is critical to ensure 
                the surface transportation system adequately 
                meets the changing travel demands of the 
                future;
                    ``(D) among the foremost needs that the 
                surface transportation system must meet to 
                provide for a strong and vigorous national 
                economy are safe, efficient, and reliable--
                            ``(i) national and interregional 
                        personal mobility (including personal 
                        mobility in rural and urban areas) and 
                        reduced congestion;
                            ``(ii) flow of interstate and 
                        international commerce and freight 
                        transportation; and
                            ``(iii) travel movements essential 
                        for national security;
                    ``(E) special emphasis should be devoted to 
                providing safe and efficient access for the 
                type and size of commercial and military 
                vehicles that access designated National 
                Highway System intermodal freight terminals;
                    ``(F) the connection between land use and 
                infrastructure is significant;
                    ``(G) transportation should play a 
                significant role in promoting economic growth, 
                improving the environment, and sustaining the 
                quality of life; and
                    ``(H) the Secretary should take appropriate 
                actions to preserve and enhance the Interstate 
                System to meet the needs of the 21st 
                Century.''.
    (b) National Surface Transportation Policy and Revenue 
Study Commission.--
            (1) Establishment.--There is established a 
        commission to be known as the ``National Surface 
        Transportation Policy and Revenue Study Commission'' 
        (in this subsection referred to as the ``Commission'').
            (2) Membership.--
                    (A) Composition.--The Commission shall be 
                composed of 12 members, of whom--
                            (i) 1 member shall be the 
                        Secretary, who shall serve as 
                        Chairperson;
                            (ii) 3 members shall be appointed 
                        by the President;
                            (iii) 2 members shall be appointed 
                        by the Speaker of the House of 
                        Representatives;
                            (iv) 2 members shall be appointed 
                        by the minority leader of the House of 
                        Representatives;
                            (v) 2 members shall be appointed by 
                        the majority leader of the Senate; and
                            (vi) 2 members shall be appointed 
                        by the minority leader of the Senate.
                    (B) Qualifications.--Members appointed 
                under subparagraph (A)--
                            (i) shall include--
                                    (I) individuals 
                                representing State and local 
                                governments, metropolitan 
                                planning organizations, 
                                transportation-related 
                                industries, and public interest 
                                organizations involved with 
                                scientific, regulatory, 
                                economic, and environmental 
                                activities relating to 
                                transportation;
                                    (II) individuals with a 
                                background in public finance, 
                                including experience in 
                                developing State and local 
                                revenue resources;
                                    (III) individuals involved 
                                in surface transportation 
                                program administration;
                                    (IV) individuals that have 
                                conducted academic research 
                                into related issues; and
                                    (V) individuals that 
                                provide unique perspectives on 
                                current and future requirements 
                                for revenue sources to support 
                                the Highway Trust Fund and 
                                policies impacting those 
                                revenues; and
                            (ii) shall be balanced 
                        geographically to the extent consistent 
                        with maintaining the highest level of 
                        expertise on the Commission.
                    (C) Date of appointments.--The appointment 
                of a member of the Commission shall be made not 
                later than 120 days after the date of 
                establishment of the Commission.
                    (D) Terms.--A member shall be appointed for 
                the life of the Commission.
                    (E) Vacancies.--A vacancy on the 
                Commission--
                            (i) shall not affect the powers of 
                        the Commission; and
                            (ii) shall be filled in the same 
                        manner as the original appointment was 
                        made.
                    (F) Initial meeting.--Not later than 30 
                days after the date on which all members of the 
                Commission have been appointed, the Commission 
                shall hold the initial meeting of the 
                Commission.
                    (G) Meetings.--The Commission shall meet at 
                the call of the Chairperson.
                    (H) Quorum.--A majority of the members of 
                the Commission shall constitute a quorum, but a 
                lesser number of members may hold hearings.
                    (I) Vice chairperson.--The Commission shall 
                select a Vice Chairperson from among the 
                appointed members of the Commission.
            (3) Duties.--
                    (A) In general.--The Commission shall--
                            (i) conduct a comprehensive study 
                        of--
                                    (I) the current condition 
                                and future needs of the surface 
                                transportation system;
                                    (II) short-term sources of 
                                Highway Trust Fund revenues;
                                    (III) long-term 
                                alternatives to replace or 
                                supplement the fuel tax as the 
                                principal revenue source to 
                                support the Highway Trust Fund, 
                                including new or alternate 
                                sources of revenue;
                                    (IV) revenue sources to 
                                fund the needs of the surface 
                                transportation system over at 
                                least the 30-year period 
                                beginning on the date of 
                                enactment of this Act, 
                                including new or alternate 
                                sources of revenue;
                                    (V) revenues flowing into 
                                the Highway Trust Fund under 
                                laws in existence on the date 
                                of enactment of this Act, 
                                including individual components 
                                of the overall flow of the 
                                revenues; and
                                    (VI) whether the amount of 
                                revenues described in subclause 
                                (V) is likely to increase, 
                                decrease, or remain constant 
                                absent any change in law, 
                                taking into consideration the 
                                impact of possible changes in 
                                public vehicular choice, fuel 
                                use, and travel alternatives 
                                that could be expected to 
                                reduce or increase revenues 
                                into the Highway Trust Fund;
                    (B) develop a conceptual plan, with 
                alternative approaches, to ensure that the 
                surface transportation system will continue to 
                serve the needs of the United States, including 
                specific recommendations regarding design and 
                operational standards, Federal policies, and 
                legislative changes;
                    (C) consult with the Secretary of the 
                Treasury in conducting the study to ensure that 
                the views of the Secretary concerning essential 
                attributes of Highway Trust Fund revenue 
                alternatives are considered;
                    (D) consult with representatives of State 
                departments of transportation and metropolitan 
                planning organizations and other key interested 
                stakeholders in conducting the study to ensure 
                that--
                            (i) the views of the stakeholders 
                        on alternative revenue sources to 
                        support State transportation 
                        improvement programs are considered; 
                        and
                            (ii) any recommended Federal 
                        financing strategy takes into account 
                        State financial requirements; and
                    (E) based on the study, make specific 
                recommendations regarding--
                            (i) actions that should be taken to 
                        develop alternative revenue sources to 
                        sup port the Highway Trust Fund; and
                            (ii) the time frame for taking 
                        those actions.
            (4) Related work.--To the maximum extent 
        practicable, the study shall build on related work that 
        has been completed by--
                    (A) the Secretary;
                    (B) the Secretary of Energy;
                    (C) the Transportation Research Board, 
                including the findings, conclusions, and 
                recommendations of the recent study conducted 
                by the Transportation Research Board on 
                alternatives to the fuel tax to support highway 
                program financing; and
                    (D) other entities and persons.
            (5) Surface transportation needs.--With respect to 
        surface transportation needs, the investigation and 
        study shall specifically address--
                    (A) the current condition and performance 
                of the Interstate System (including the 
                physical condition of bridges and pavements and 
                operational characteristics and performance), 
                relying primarily on existing data sources;
                    (B) the future of the Interstate System, 
                based on a range of legislative and policy 
                approaches for 15-, 30-, and 50-year time 
                periods;
                    (C) the expected demographics and business 
                uses that impact the surface transportation 
                system;
                    (D) the expected use of the surface 
                transportation system, including the effects of 
                changing vehicle types, modes of 
                transportation, fleet size and weights, and 
                traffic volumes;
                    (E) desirable design policies and standards 
                for future improvements of the surface 
                transportation system, including additional 
                access points;
                    (F) the identification of urban, rural, 
                national, and interregional needs for the 
                surface transportation system;
                    (G) the potential for expansion, upgrades, 
                or other changes to the surface transportation 
                system, including--
                            (i) deployment of advanced 
                        materials and intelligent technologies;
                            (ii) critical multistate, urban, 
                        and rural corridors needing capacity, 
                        safety, and operational enhancements;
                            (iii) improvements to intermodal 
                        linkages;
                            (iv) security and military 
                        deployment enhancements;
                            (v) strategies to enhance asset 
                        preservation; and
                            (vi) implementation strategies;
                    (H) the improvement of emergency 
                preparedness and evacuation using the surface 
                transportation system, including--
                            (i) examination of the potential 
                        use of all modes of the surface 
                        transportation system in the safe and 
                        efficient evacuation of citizens during 
                        times of emergency;
                            (ii) identification of the location 
                        of critical bottlenecks; and
                            (iii) development of strategies to 
                        improve system redundancy, especially 
                        in areas with a high potential for 
                        terrorist attacks;
                    (I) alternatives for addressing 
                environmental concerns associated with the 
                future development of the surface 
                transportation system;
                    (J) the assessment of the current and 
                future capabilities for conducting system-wide 
                real-time performance data collection and 
                analysis, traffic monitoring, and 
                transportation systems operations and 
                management; and
                    (K) policy and legislative alternatives for 
                addressing future needs for the surface 
                transportation system.
            (6) Financing.--With respect to financing, the 
        study shall address specifically--
                    (A) the advantages and disadvantages of 
                alternative revenue sources to meet anticipated 
                Federal surface transportation financial 
                requirements;
                    (B) recommendations concerning the most 
                promising revenue sources to support long-term 
                Federal surface transportation financing 
                requirements;
                    (C) development of a broad transition 
                strategy to move from the current tax base to 
                new funding mechanisms, including the time 
                frame for various components of the transition 
                strategy;
                    (D) recommendations for additional research 
                that may be needed to implement recommended 
                alternatives; and
                    (E) the extent to which revenues should 
                reflect the relative use of the highway system.
            (7) Financing recommendations.--
                    (A) Factors for consideration.--In 
                developing financing recommendations under this 
                subsection, the Commission shall consider--
                            (i) the ability to generate 
                        sufficient revenues from all modes to 
                        meet anticipated long-term surface 
                        transportation financing needs;
                            (ii) the roles of the various 
                        levels of government and the private 
                        sector in meeting future surface 
                        transportation financing needs;
                            (iii) administrative costs 
                        (including enforcement costs) to 
                        implement each option;
                            (iv) the expected increase in 
                        nontaxed fuels and the impact of taxing 
                        those fuels;
                            (v) the likely technological 
                        advances that could ease implementation 
                        of each option;
                            (vi) the equity and economic 
                        efficiency of each option;
                            (vii) the flexibility of different 
                        options to allow various pricing 
                        alternatives to be implemented; and
                            (viii) potential compatibility 
                        issues with State and local tax 
                        mechanisms under each alternative.
                    (B) Need and revenue analysis.--In 
                developing financing recommendations under this 
                subsection, the Commission shall distinguish 
                between--
                            (i) the needs of, and revenues for, 
                        the surface transportation system that 
                        are eligible to receive funds from the 
                        Highway Trust Fund; and
                            (ii) the needs for projects and 
                        programs that are not eligible to 
                        receive funds from the Highway Trust 
                        Fund.
            (8) Technical advisory committee.--The Secretary 
        shall establish a technical advisory committee, in a 
        manner consistent with the Federal Advisory Committee 
        Act (5 U.S.C. App.), to collect and evaluate technical 
        input from--
                    (A) appropriate Federal, State, and local 
                officials with responsibility for 
                transportation;
                    (B) appropriate State and local elected 
                officials;
                    (C) transportation and trade associations;
                    (D) emergency management officials;
                    (E) freight providers;
                    (F) the general public; and
                    (G) other entities and persons determined 
                to be appropriate by the Secretary to ensure a 
                diverse range of views.
            (9) Report and recommendations.--Not later than 
        July 1, 2007, the Commission shall submit to Congress--
                    (A) a final report that contains a detailed 
                statement of the findings and conclusions of 
                the Commission; and
                    (B) the recommendations of the Commission 
                for such legislation and administrative actions 
                as the Commission considers to be appropriate.
            (10) Powers of the commission.--
                    (A) Hearings.--The Commission may hold such 
                hearings, meet and act at such times and 
                places, take such testimony, and receive such 
                evidence as the Commission considers advisable 
                to carry out this section.
                    (B) Information from federal agencies.--
                            (i) In general.--The Commission may 
                        secure directly from a Federal agency 
                        such information as the Commission 
                        considers necessary to carry out this 
                        section.
                            (ii) Provision of information.--On 
                        request of the Chairperson of the 
                        Commission, the head of a Federal 
                        agency shall provide the requested 
                        information to the Commission.
                    (C) Postal services.--The Commission may 
                use the United States mails in the same manner 
                and under the same conditions as other agencies 
                of the Federal Government.
                    (D) Donations.--The Commission may accept, 
                use, and dispose of donations of services or 
                property.
            (11) Commission personnel matters.--
                    (A) Members.--A member of the Commission 
                shall serve without pay but shall be allowed 
                travel expenses, including per diem in lieu of 
                subsistence, at rates authorized for an 
                employee of an agency under subchapter I of 
                chapter 57 of title 5, United States Code, 
                while away from the home or regular place of 
                business of the member in the performance of 
                the duties of the Commission.
                    (B) Contractors.--The Commission may enter 
                into agreements with appropriate organizations, 
                agencies, and entities to conduct the study 
                required under this section, under the 
                strategic guidance of the Commission.
                    (C) Administrative support.--On the request 
                of the Commission, the Administrator of the 
                Federal Highway Administration shall provide to 
                the Commission, on a reimbursable basis, the 
                administrative support and services necessary 
                for the Commission to carry out the duties of 
                the Commission under this section.
                    (D) Detail of personnel.--
                            (i) In general.--On the request of 
                        the Commission, the Secretary may 
                        detail, on a reimbursable basis, any of 
                        the personnel of the Department to the 
                        Commission to assist the Commission in 
                        carrying out the duties of the 
                        Commission under this section.
                            (ii) Civil service status.--The 
                        detail of the employee shall be without 
                        interruption or loss of civil service 
                        status or privilege.
            (12) Cooperation.--The staff of the Secretary shall 
        cooperate with the Commission in the study required 
        under this section, including providing such 
        nonconfidential data and information as are necessary 
        to conduct the study.
            (13) Relationship to other law.--
                    (A) In general.--Except as provided in 
                subparagraphs (B) and (C), funds made available 
                to carry out this section shall be available 
                for obligation in the same manner as if the 
                funds were apportioned under chapter 1 of title 
                23, United States Code.
                    (B) Federal share.--The Federal share of 
                the cost of the study and the Commission under 
                this section shall be 100 percent.
                    (C) Availability.--Funds made available to 
                carry out this section shall remain available 
                until expended.
            (14) Definition of surface transportation system.--
        In this subsection, the term ``surface transportation 
        system'' includes--
                    (A) the National Highway System, as defined 
                in section 103(b) of title 23, United States 
                Code;
                    (B) congressional high priority corridors;
                    (C) intermodal connectors;
                    (D) intermodal freight facilities;
                    (E) public transportation infrastructure 
                and facilities; and
                    (F) freight and intercity passenger bus and 
                rail infrastructure and facilities.
            (15) Authorization of appropriations.--There is 
        authorized to be appropriated from the Highway Trust 
        Fund (other than the Mass Transit Account) to carry out 
        this section $1,400,000 for each of fiscal years 2006 
        and 2007.
            (16) Applicability of title 23.--Funds made 
        available to carry out this section shall be available 
        for obligation in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States 
        Code; except that such funds shall remain available 
        until expended, and the Federal share of the cost of a 
        project under this section shall be as provided in this 
        section.
            (17) Termination.--
                    (A) In general.--The Commission shall 
                terminate on the date that is 180 days after 
                the date on which the Commission submits the 
                report of the Commission under paragraph (9).
                    (B) Records.--Not later than the date of 
                termination of the Commission under 
                subparagraph (A), all records and papers of the 
                Commission shall be delivered to the Archivist 
                of the United States for deposit in the 
                National Archives.

SEC. 1910. MOTORIST INFORMATION CONCERNING FULL SERVICE RESTAURANTS.

    Not later than 180 days after the date of enactment of this 
Act, the Secretary may initiate a rulemaking to determine 
whether--
            (1) full service restaurants should be given 
        priority on not more than 2 panels of the camping or 
        attractions logo-specific service signs in the Manual 
        on Uniform Traffic Control Devices of the Department of 
        Transportation when the food logo-specific service sign 
        is fully used; and
            (2) full service restaurants should be given 
        priority on not more than 2 panels of the food logo-
        specific service signs in such Manual when the camping 
        or attractions logo-specific service signs are fully 
        used.

SEC. 1911. APPROVAL AND FUNDING FOR CERTAIN CONSTRUCTION PROJECTS.

    (a) Project Approval.--If the Secretary finds that the 
project number STP-189-1(15)CT 3 in Gwinnett County, Georgia, 
was not listed in the current regional transportation plan 
because of a clerical error, such failure to be listed shall 
not be a basis for not approving the project. The Secretary 
shall make a final decision on the approval of the project 
within 30 days after the date of receipt by the Secretary of a 
construction authorization request from the department of 
transportation for the State of Georgia.
    (b) Conformity Determination.--
            (1) In general.--Approval, funding, and 
        implementation of the project referred to in subsection 
        (a) shall not be subject to the requirements of part 93 
        of title 40, Code of Federal Regulations (or successor 
        regulations).
            (2) Regional emissions.--Notwithstanding paragraph 
        (1), all subsequent regional emission analyses required 
        by section 93.118 or 93.119 of title 40, Code of 
        Federal Regulations (or successor regulations), shall 
        include the project.

SEC. 1912. LEAD AGENCY DESIGNATION.

    The public entity established under California law in 1989 
to acquire rights-of-way in northwestern California to maintain 
surface transportation infrastructure is designated as the lead 
agency for the purpose of accepting Federal funds authorized 
under item 13 of the table contained in section 1108(b) of the 
Intermodal Surface Transportation Efficiency Act of 1991 (105 
Stat. 2061).

SEC. 1913. BRIDGE CONSTRUCTION, NORTH DAKOTA.

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

SEC. 1914. MOTORCYCLIST ADVISORY COUNCIL.

    (a) In General.--The Secretary, acting through the 
Administrator of the Federal Highway Administration, in 
consultation with the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate, shall 
appoint a Motorcyclist Advisory Council to coordinate with and 
advise the Administrator on infrastructure issues of concern to 
motorcyclists, including--
            (1) barrier design;
            (2) road design, construction, and maintenance 
        practices; and
            (3) the architecture and implementation of 
        intelligent transportation system technologies.
    (b) Composition.--The Council shall consist of not more 
than 10 members of the motorcycling community with professional 
expertise in national motorcyclist safety advocacy, including--
            (1) at least--
                    (A) 1 member recommended by a national 
                motorcyclist association;
                    (B) 1 member recommended by a national 
                motorcycle riders foundation;
                    (C) 1 representative of the National 
                Association of State Motorcycle Safety 
                Administrators;
                    (D) 2 members of State motorcyclists' 
                organizations;
                    (E) 1 member recommended by a national 
                organization that represents the builders of 
                highway infrastructure;
                    (F) 1 member recommended by a national 
                association that represents the traffic safety 
                systems industry; and
                    (G) 1 member of a national safety 
                organization; and
            (2) at least 1, and not more than 2, motorcyclists 
        who are traffic system design engineers or State 
        transportation department officials.

SEC. 1915. LOAN FORGIVENESS.

    Debt outstanding as of the date of enactment of this Act 
for project number Q-DPM-0013(001) carried out under section 
108(c) of title 23, United States Code, is deemed satisfied.

SEC. 1916. TREATMENT OF OFF RAMP.

    Notwithstanding any other provision of law, the New Harbor 
Boulevard North off-ramp project along the Interstate Route 405 
Collector-Distributor Road in Costa Mesa, California (Susan 
Street Slip-Ramp), shall be treated for purposes of title 23, 
United States Code, as satisfying all Federal requirements, and 
the California State department of transportation shall 
authorize any final environmental, engineering, or design 
analyses necessary to approve, as expeditiously as possible, 
construction of the project consistent with applicable 
California State operational and safety standards.

SEC. 1917. OPENING OF INTERSTATE RAMPS.

    (a) In General.--The Maryland State highway administration 
and the Federal Highway Administration shall work 
cooperatively--
            (1) to expedite the project being developed as of 
        the date of enactment of this Act to improve Interstate 
        Route 495 through the area of the Arena Drive 
        interchange to allow for safe exit, including 
        improvements to the adjacent interchanges upstream and 
        downstream along Interstate Route 495; and
            (2) to expedite action on the Interstate access 
        request so that the Interstate Route 495/Arena Drive 
        interchange can be opened safely to all vehicles 24 
        hours per day, 7 days per week.
    (b) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report on the status of opening the Interstate Route 495/Arena 
Drive interchange to full-time use.

SEC. 1918. CREDIT TO STATE OF LOUISIANA FOR STATE MATCHING FUNDS.

    (a) In General.--The Secretary may provide a credit to the 
State of Louisiana in an amount equal to non Federal Share of 
the cost of any planning, engineering, design, or construction 
work carried out by the State on any project that the Secretary 
determines is integral to the project authorized by item number 
202 in the table contained in section 1602 of the 
Transportation Equity Act for the 21st Century (112 Stat. 264).
    (b) Eligibility of Credit.--The credit may be used for any 
future payment relating to the completion of the project 
referred to in subsection (a) that is required by the State 
under title 23, United States Code.

SEC. 1919. ROAD USER FEES.

    (a) Study.--The Secretary shall enter into an agreement 
with the Public Policy Center of the University of Iowa for an 
analysis and report to the Secretary and the Secretary of the 
Treasury on a long-term field test of an approach to assessing 
highway use fees based upon actual mileage driven by a specific 
vehicle on specific types of highways by use of an onboard 
computer--
            (1) which is linked to satellites to calculate 
        highway mileage traversed;
            (2) which computes the appropriate highway use fees 
        for each of the Federal, State, and local governments 
        as the vehicle makes use of the highways; and
            (3) the data from which is periodically downloaded 
        by the vehicle owner to a collection center for an 
        assessment of highway use fees due in each jurisdiction 
        traversed; and
            (4) which includes methods of ensuring privacy of 
        road users.
    (b) Components of Field Test.--The components of the field 
test shall include 2 years for preparation, including selection 
of vendors and test participants, and a 3-year testing period.
    (c) Reports.--The Secretary shall submit annual reports on 
the status of the analysis and, not later than July 1, 2009, a 
final report on the results of the analysis, together with 
findings and recommendations. The reports shall be submitted to 
the Secretary of the Treasury, the Committee on Transportation 
and Infrastructure and the Committee on Ways and Means of the 
House of Representatives, and the Committee on Environment and 
Public Works and the Committee on Finance of the Senate.
    (d) Authorization of Appropriation.--
            (1) In general.--There is authorized to be 
        appropriated from the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $2,000,000 fiscal year 2006 and $3,500,000 for each of 
        fiscal years 2007, 2008, and 2009.
            (2) Contract authority.--Funds authorized under 
        this subsection shall be available for obligation in 
        the same manner as if the funds were apportioned under 
        chapter 1 of title 23, United States Code; except the 
        Federal share of the cost of the analysis and report 
        shall be 100 percent, and such funds shall remain 
        available until expended and shall not be transferable.

SEC. 1920. TRANSPORTATION AND LOCAL WORKFORCE INVESTMENT.

    (a) Findings.--Congress finds the following:
            (1) Federal-aid highway programs provide State and 
        local governments and other recipients substantial 
        funds for projects that produce significant employment 
        and job-training opportunities.
            (2) Every $1,000,000,000 in Federal infrastructure 
        investment creates an estimated 47,500 jobs.
            (3) Jobs in transportation construction, including 
        apprenticeship positions, typically pay more than twice 
        the minimum wage, and include health and other 
        benefits.
            (4) Transportation projects provide the impetus for 
        job training and employment opportunities for low 
        income individuals residing in the area in which a 
        transportation project is planned.
            (5) Transportation projects can offer young people, 
        particularly those who are economically disadvantaged, 
        the opportunity to gain productive employment.
            (6) The Alameda Corridor, a $2,400,000,000 
        transportation project, is an example of a 
        transportation project that included a local hiring 
        provision resulting in a full 30 percent of the project 
        jobs being filled by locally hired and trained men and 
        women.
    (b) Sense of Congress.--It is the sense of Congress that 
Federal transportation projects should facilitate and encourage 
the collaboration between interested persons, including 
Federal, State, and local governments, community colleges, 
apprentice programs, local high schools, and other community-
based organizations that have an interest in improving the job 
skills of low-income individuals, to help leverage scarce 
training and community resources and to help ensure local 
participation in the building of transportation projects.

SEC. 1921. UPDATE OF OBSOLETE TEXT.

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

SEC. 1922. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION.

    (a) State Assurances.--Section 140(a) of title 23, United 
States Code, is amended--
            (1) in the first sentence by striking ``subsection 
        (a) of section 105 of this title'' and inserting 
        ``section 135'';
            (2) in the second sentence by striking ``He'' and 
        inserting ``The Secretary'';
            (3) in the third sentence--
                    (A) by striking ``shall, where he considers 
                it necessary to assure'' and inserting ``if 
                necessary to ensure''; and
                    (B) by inserting ``shall'' after 
                ``opportunity,''; and
            (4) in the last sentence--
                    (A) by striking ``him'' and inserting ``the 
                Secretary'' and
                    (B) by striking ``he'' and inserting ``the 
                Secretary of Transportation''.
    (b) Highway Construction and Technology Training.--Section 
140(b) of such title is amended--
            (1) in the first sentence by striking ``highway 
        construction'' and inserting ``surface 
        transportation''; and
            (2) in the second sentence--
                    (A) by striking ``he may deem''; and
                    (B) by striking ``not to exceed $2,500,000 
                for the transition quarter ending September 30, 
                1976, and''.
    (c) Minority Business Training Programs.--Section 140(c) of 
such title is amended in the second sentence--
            (1) by striking ``subsection 104(b)(3) of this 
        title'' and inserting ``section 104(b)(3)''; and
            (2) by striking ``he may deem''.
    (d) Technical Amendment.--Section 140(d) of such title is 
amended in the subsection heading by striking ``and 
Contracting''.

SEC. 1923. TRANSPORTATION ASSETS AND NEEDS OF DELTA REGION.

    (a) Agreement.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall enter into an 
agreement with the Delta Regional Authority (in this section 
referred to as the ``DRA'') to conduct a comprehensive study of 
transportation assets and needs for all modes of transportation 
(including passenger and freight transportation) in the 8 
States comprising the Delta region (Alabama, Arkansas, 
Illinois, Kentucky, Louisiana, Mississippi, Missouri, and 
Tennessee).
    (b) Consultation.--Under the agreement, the DRA, in 
conducting the study, shall consult with the Department, State 
transportation departments, local planning and development 
districts, local and regional governments, and metropolitan 
planning organizations.
    (c) Report.--Under the agreement, the DRA, not later than 2 
years after the date of entry into the agreement, shall submit 
to the Secretary and the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate a final 
report on the results of the study, together with such 
recommendations as the DRA considers to be appropriate.
    (d) Plan.--Under the agreement, the DRA, upon completion of 
the report, shall establish a regional strategic plan to 
implement the recommendations of the report.
    (e) Funding.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated out of the Highway Trust 
        Fund (other than the Mass Transit Account), to carry 
        out this section $500,000 for each of the fiscal years 
        2005 and 2006.
            (2) Contract authority.--Funds authorized by this 
        section shall be available for obligation in the same 
        manner and to the same extent as if such funds were 
        apportioned under chapter 1 of title 23, United States 
        Code; except that such funds shall remain available 
        until expended and shall not be transferable.

SEC. 1924. ALASKA WAY VIADUCT STUDY.

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

SEC. 1925. COMMUNITY ENHANCEMENT STUDY.

    (a) In General.--The Secretary shall conduct a study on--
            (1) the role of well-designed transportation 
        projects in--
                    (A) promoting economic development;
                    (B) protecting public health, safety and 
                the environment; and
                    (C) enhancing the architectural design and 
                planning of communities; and
            (2) the positive economic, cultural, aesthetic, 
        scenic, architectural, and environmental benefits of 
        such projects for communities.
    (b) Contents.--The study shall address the following:
            (1) The degree to which well-designed 
        transportation projects have positive economic, 
        cultural, aesthetic, scenic, architectural, and 
        environmental benefits for communities.
            (2) The degree to which such projects protect and 
        contribute to improvements in public health and safety.
            (3) The degree to which such projects use inclusive 
        public participation processes to achieve quicker, more 
        certain, and better results.
            (4) The degree to which positive results are 
        achieved by linking transportation, design, and the 
        implementation of community visions for the future.
            (5) Facilitating the use of successful models or 
        best practices in transportation investment or 
        development to accomplish each of the following:
                    (A) Enhancement of community identity.
                    (B) Protection of public health and safety.
                    (C) Provision of a variety of choices in 
                housing, shopping, transportation, employment, 
                and recreation.
                    (D) Preservation and enhancement of 
                existing infrastructure.
                    (E) Creation of a greater sense of 
                community through public involvement.
    (c) Report.--Not later than September 20, 2007, the 
Secretary shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate a 
report on the results of the study.
    (d) Administration.--To carry out this section, the 
Secretary shall make a grant to, or enter into a cooperative 
agreement or contract with, a national organization 
representing architects who have expertise in the design of a 
wide range of transportation and infrastructure projects, which 
include the design of buildings, public facilities, and 
surrounding communities.
    (e) Authorization.--Of the amounts made available to carry 
out the transportation, community, and system preservation 
program by section 1117 of this Act $1,000,000 shall be 
available for each of fiscal years 2006 and 2007 to carry out 
this section; except that, notwithstanding section 1117(g) of 
this Act, the Federal share of the cost of the study shall be 
100 percent.

SEC. 1926. BUDGET JUSTIFICATION.

    The Department of Transportation and each agency in the 
Department shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate a 
budget justification concurrently with the President's annual 
budget submission to Congress under section 1105(a) of title 
31, United States Code.

SEC. 1927. 14TH AMENDMENT HIGHWAY AND 3RD INFANTRY DIVISION HIGHWAY.

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

SEC. 1928. SENSE OF CONGRESS REGARDING BUY AMERICA.

    It is the sense of Congress that--
            (1) the Buy America test required by section 165 of 
        the Surface Transportation Assistance Act of 1982 (23 
        U.S.C. 101 note) needs to be applied to an entire 
        bridge project and not only to component parts of such 
        project;
            (2) the law clearly states that domestic materials 
        must be used in Federal highway projects unless there 
        is a finding that the inclusion of domestic materials 
        will increase the cost of the overall project by more 
        than 25 percent;
            (3) uncertainty regarding how to apply Buy America 
        laws for major bridge projects threatens the domestic 
        bridge industry;
            (4) because the Nation's unemployment rate 
        continues to hover around 5.6 percent, steps are needed 
        to protect American workers and the domestic bridge 
        building industry; and
            (5) the Buy American Act (41 U.S.C. 10a et seq.) 
        was designed to ensure that, when taxpayer money is 
        spent on direct Federal Government procurement and 
        infrastructure projects, these expenditures stimulate 
        United States production and job creation.

SEC. 1929. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE HIGHWAY.

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

SEC. 1930. DESIGNATION OF THOMAS P. ``TIP'' O'NEILL, JR. TUNNEL.

    (a) Designation.--In honor of his service to the 
Commonwealth of Massachusetts and the United States, and in 
recognition of his contributions toward the construction of the 
Central Artery project in Boston, the northbound and southbound 
tunnel of Interstate Route 93, located in the city of Boston, 
which extends north of the intersection of Interstate Route 90 
and Interstate Route 93 to the Leonard P. Zakim Bunker Hill 
Bridge, shall be known and designated as the ``Thomas P. `Tip' 
O'Neill, Jr. Tunnel''.
    (b) References.--Any reference in law, map, regulation, 
document, paper, or other record of the United States to the 
tunnel referred to in subsection (a) shall be deemed to be a 
reference to the ``Thomas P. `Tip' O'Neill, Jr. Tunnel''.

SEC. 1931. RICHARD NIXON PARKWAY, CALIFORNIA.

    (a) Designation.--The segment of the Imperial Highway 
located between California State Route 91 and Esperanza Road in 
the State of California shall be known and designated as the 
``Richard Nixon Parkway''.
    (b) References.--Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
highway segment referred to in subsection (a) shall be deemed 
to be a reference to the ``Richard Nixon Parkway''.

SEC. 1932. AMO HOUGHTON BYPASS.

    (a) Designation.--The 3-mile segment of Interstate Route 86 
between its interchange with New York State Route 15 in the 
vicinity of Painted Post, New York, and its interchange with 
New York State Route 352 in the vicinity of Corning, New York, 
shall be known and designated as the ``Amo Houghton Bypass''.
    (b) References.--Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
highway segment referred to in subsection (a) shall be deemed 
to be a reference to the ``Amo Houghton Bypass''.

SEC. 1933. BILLY TAUZIN ENERGY CORRIDOR.

    (a) Designation.--Louisiana Route 1 shall be known and 
designated as the ``Billy Tauzin Energy Corridor''.
    (b) References.--Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
highway segment referred to in subsection (a) shall be deemed 
to be a reference to the ``Billy Tauzin Energy Corridor''.

SEC. 1934. TRANSPORTATION IMPROVEMENTS.

    (a) Authorization of Appropriations.--
            (1) In general.--For each of fiscal years 2005 
        through 2009, there are authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass 
        Transit Account) such sums as are necessary to make 
        allocations in accordance with paragraph (2) to carry 
        out each project described in the table contained in 
        subsection (c), at the amount specified for each such 
        project in that table.
            (2) Allocation percentages.--Of the total amount 
        specified for each project described in the table 
        contained in subsection (c), 10 percent for fiscal year 
        2005, 20 percent for fiscal year 2006, 25 percent for 
        fiscal year 2007, 25 percent for fiscal year 2008, and 
        20 percent for fiscal year 2009 shall be allocated to 
        carry out each such project in that table.
    (b) Contract Authority.--
            (1) In general.--Funds authorized to be 
        appropriated to carry out this subsection shall be 
        available for obligation in the same manner as if the 
        funds were apportioned under chapter 1 of title 23, 
        United States Code, except that the funds shall remain 
        available until expended.
            (2) Federal share.--The Federal share of the cost 
        of a project under this section shall be determined in 
        accordance with section 120 of such title.
    (c) Table.--The table referred to in subsections (a) and 
(b) is as follows:


SEC. 1935. PROJECT FLEXIBILITY.

    (a) In General.--Notwithstanding any other provision of 
law, funds allocated for a project described in subsection (b) 
in a State may be obligated for any other project in the State 
for which funds are so allocated, except that the total amount 
of funds authorized for any project for which funds are so 
allocated shall not be reduced.
    (b) Projects.--The projects described in this subsection 
are--
            (1) the projects numbered greater than 3676 listed 
        in the table contained in section 1702 of this Act;
            (2) the projects numbered greater than 18 listed in 
        the table contained in section 1301 of this Act;
            (3) the projects numbered greater than 27 listed in 
        the table contained in section 1302 of this Act; and
            (4) the projects listed in the table contained in 
        section 1934 of this Act.

SEC. 1936. ADVANCES.

    Notwithstanding any other provision of law, funds 
apportioned to a State under section 104(b) of title 23, United 
States Code, may be obligated to carry out a project designated 
in any of sections 1301, 1302, 1306, and 1934 of this Act and 
sections 117 and 144(g) of title 23, United States Code, in an 
amount not to exceed the amount authorized for that project, 
only from a program under which the project would be eligible, 
except that any amounts obligated to carry out the project 
shall be restored from funds allocated for the project.

SEC. 1937. ROADS IN CLOSED BASINS.

    (a) In General.--The Secretary shall use funds made 
available to carry out section 125 of title 23, United States 
Code, through advancement or reimbursement, without further 
emergency declaration, to construct such measures as the 
Secretary determines to be necessary for the continuation of 
roadway services, or the impoundment of water to protect roads, 
or both, at Devils Lake in the State of North Dakota, as the 
Secretary determines to be appropriate.
    (b) Requirements.--The Secretary shall carry out 
construction under subsection (a) in accordance with--
            (1) the options and needs identified in the report 
        of the Devils Lake Surface Transportation Task Force of 
        the Federal Highway Administration dated May 4, 2000, 
        and entitled ``Roadways Serving as Water Barriers'';
            (2) any needs relating to Devils Lake identified 
        after May 4, 2000; and
            (3) any monitoring, study, or design or preliminary 
        engineering associated with evaluating or constructing 
        the measures.
    (c) Affected Areas.--The Secretary shall carry out 
construction under this section in an area that has been the 
subject of an emergency declaration issued during the period 
beginning on January 1, 1993, and ending on the date of 
enactment of this Act.
    (d) Funding.--
            (1) In general.--Except as provided in paragraph 
        (2), to the extent that expenditures relating to 
        construction under this section could not be made 
        pursuant to any other authority under section 125 of 
        title 23, United States Code, the expenditures shall 
        not exceed--
                    (A) $10,000,000 during any fiscal year; and
                    (B) a total amount of $70,000,000.
            (2) Exception.--Nothing in paragraph (1) limits any 
        expenditure with respect to--
                    (A) emergency relief in response to a 
                development occurring after the date of 
                enactment of this Act; or
                    (B) an authority under any other provision 
                of law (including section 125 of such title).
    (e) Effect of Section.--Nothing in this section authorizes 
or provides funding for the construction, operation, or 
maintenance of an outlet at Devils Lake in the State of North 
Dakota.

SEC. 1938. TECHNOLOGY.

    States are encouraged to consider using a nondestructive 
technology able to detect cracks including sub-surface flaws as 
small as 0.005 inches in length or depth in steel bridges.

SEC. 1939. BIA INDIAN ROAD PROGRAM.

    (a) Limitation on Applicability of Certain Rule.--The final 
rule effective October 1, 2004, published in the Federal 
Register, July 19, 2004, at pages 43089, relating to the Indian 
reservation road program administered by the Bureau of Indian 
Affairs of the Department of the Interior, shall not apply to 
the following Alaska villages with respect to the following 
projects:
            (1) Craig, Alaska, Craig Community Association, 
        Point St. Nicholas Road improvements.
            (2) Cordova, Alaska, Native Village of Eyak, 
        Shepard's Point Road improvements.
            (3) Hydaburg, Alaska, Hydaburg Community 
        Association, Hydaburg community street improvements.
            (4) Healy Lake, Alaska, Healy Lake Traditional, 
        Cummings Road improvements.
    (b) Special Rule.--For the villages listed in subsection 
(a), the Indian reservation road program shall be administered 
by the Bureau of Indian Affairs under the rules and regulations 
in effect before the adoption of the final rule referred to in 
subsection (a), and the Secretary shall pay, from amounts made 
available to carry out section 202(d) of title 23, United 
States Code, for fiscal year 2006 each of the tribal 
organizations referred to in subsection (a) for the Federal 
share of the costs of the projects listed in subsection (a).

SEC. 1940. GOING-TO-THE-SUN ROAD, GLACIER NATIONAL PARK, MONTANA.

    (a) Project Authorization.--There is authorized to be 
appropriated to the Secretary from the Highway Trust Fund 
(other than the Mass Transit Account) to resurface, repair, 
rehabilitate, and reconstruct the Going-to-the-Sun Road at 
Glacier National Park, Montana, in accordance with the 
framework identified in Alternative 3 (shared use alternative) 
of the environmental impact statement and record of decision 
dated 2003 and relating to the Going-to-the-Sun Road, to remain 
available until expended--
            (1) $10,000,000 for fiscal year 2005;
            (2) $10,000,000 for fiscal year 2006;
            (3) $10,000,000 for fiscal year 2007;
            (4) $10,000,000 for fiscal year 2008; and
            (5) $10,000,000 for fiscal year 2009.
    (b) Federal Share.--The Federal share of the costs of the 
project described in subsection (a) shall be 100 percent.

SEC. 1941. BEARTOOTH HIGHWAY, MONTANA.

    (a) Project Authorization.--Of funds made available for the 
State of Montana for the project for development and 
construction of United States Route 212, Red Lodge North, 
Montana, as described in the table contained in section 1934 
(including amounts transferred to the project under section 
1935), on request of the State of Montana, the Secretary shall 
obligate such sums as are necessary to reconstruct the 
Beartooth Highway in the State of Montana.
    (b) Reimbursement.--The amounts used for reconstruction 
under subsection (a) shall be reimbursed to the project 
relating to United States Route 212 described in subsection (a) 
on the date or dates on which funding is allocated for the 
Beartooth Highway under section 125 of title 23, United States 
Code.
    (c) Federal Share.--The Federal share payable for funds 
allocated for the Beartooth Highway under section 125 of such 
title shall be 100 percent.

SEC. 1942. OPENING OF AIRFIELD AT MALMSTROM AIR FORCE BASE, MONTANA.

    Not later than 60 days after the date of the enactment of 
this Act, the Secretary of the Air Force shall--
            (1) open the airfield at Malmstrom Air Force Base, 
        Montana; and
            (2) enable flying operations for all fixed-wing 
        aircraft at that base.

SEC. 1943. GREAT LAKES ITS IMPLEMENTATION.

    (a) In General.--The Secretary shall make grants to the 
State of Wisconsin to continue intelligent transportation 
system activities in the corridor serving the Greater 
Milwaukee, Wisconsin, Chicago, Illinois, and Gary, Indiana, 
areas initiated under the Intermodal Surface Transportation 
Efficiency Act of 1991 (Public Law 102-240) and other areas of 
the State of Wisconsin.
    (b) Funding.--There is authorized to be appropriated from 
the Highway Trust Fund (other than the Mass Transit Account) 
$2,000,000 for each of fiscal years 2006 through 2008 and 
$3,000,000 for fiscal year 2009 to carry out this section.
    (c) Contract Authority.--Funds made available to carry out 
this section shall be available for obligation in the same 
manner as if the funds were apportioned under chapter 1 of 
title 23, United States Code.

SEC. 1944. TRANSPORTATION CONSTRUCTION AND REMEDIATION, OTTAWA COUNTY, 
                    OKLAHOMA.

    (a) In General.--The Secretary shall allocate to the State 
of Oklahoma amounts made available to carry out this section 
for the activities described in subsection (b).
    (b) Oklahoma Plan for Tar Creek.--The activities referred 
to in subsection (a) are all activities described in the 
Oklahoma Plan for Tar Creek, including activities under that 
Plan that are to be carried out by involved Federal and State 
entities.
    (c) Funding.--
            (1) Authorization of appropriations.--
                    (A) In general.--There is authorized to be 
                appropriated from the Highway Trust Fund (other 
                than the Mass Transit Account) to carry out 
                this section $10,000,000 for fiscal year 2006.
                    (B) Availability.--Funds authorized to be 
                appropriated under subparagraph (A) shall 
                remain available until expended.
            (2) Contract authority.--Except as otherwise 
        provided in this section, funds authorized to be 
        appropriated under this section shall be available for 
        obligation in the same manner as if the funds were 
        apportioned under chapter 1 of title 23, United States 
        Code.
            (3) Title 23 eligibility.--Activities described in 
        subsection (b) shall be considered to be eligible for 
        funding under any program for which funds are 
        apportioned under section 104(b) of such title, as in 
        effect on the day before the date of enactment of this 
        section.

SEC. 1945. INFRASTRUCTURE AWARENESS PROGRAM.

    (a) In General.--In cooperation with the subcontracting 
production entity that received funds under section 1212(b) of 
the Transportation Equity Act for the 21st Century (112 Stat. 
193), the Secretary shall fund the production of a documentary 
about infrastructure that demonstrates advancements in Alaska, 
the last frontier.
    (b) Federal Share.--The Federal share of the cost of 
production of the documentary under subsection (a) shall be 100 
percent.
    (c) Funding.--There is authorized to be appropriated out of 
the Highway Trust fund (other than the Mass Transit Account) to 
carry out this section $1,500,000 for fiscal year 2005 and 
$1,450,000 for fiscal year 2006. Such fund shall remain 
available until expended.
    (d) Applicability of Title 23.--Funds authorized by this 
section shall be available for obligation in the same manner as 
if such funds were apportioned under chapter 1 of title 23, 
United States Code; except that the Federal share of the cost 
of production of the documentary under this section shall be 
determined in accordance with this section.

SEC. 1946. GATEWAY RURAL IMPROVEMENT PILOT PROGRAM.

    (a) In General.--The Secretary shall establish a pilot 
program in the State of Vermont to be known as the ``Gateway 
Rural Improvement Pilot Program'' (referred to in this section 
as the ``program'') to demonstrate the benefits to a rural rail 
corridor of a freight transportation gateway program.
    (b) Eligible Activities.--Under the program--
            (1) funding preference shall be given to selecting 
        a corridor in the State of Vermont that includes a 
        border crossing; and
            (2) individual projects shall provide community and 
        highway benefits by addressing economic, congestion, 
        security, safety, and environmental issues.
    (c) Cost Sharing.--
            (1) Federal share.--The Federal share of the cost 
        of a project under this section shall be determined in 
        accordance with section 120 of title 23, United States 
        Code.
            (2) Non-federal share.--Project user fees may be 
        used to provide all or part of the non-Federal share of 
        the cost of a project funded under this section.
    (d) Authorization of Appropriations.--In addition to such 
amounts as are otherwise authorized to be appropriated for the 
Department, there are authorized to be appropriated such sums 
as may be necessary to carry out this section.

SEC. 1947. ELIGIBLE SAFETY IMPROVEMENTS.

    Section 120(c) of title 23, United States Code, is amended 
in the first sentence by inserting ``traffic circles (also 
known as `roundabouts'),'' after ``traffic control 
signalization,''.

SEC. 1948. EMERGENCY SERVICE ROUTE.

    Notwithstanding any Federal law, regulation, or policy to 
the contrary, no Federal funds shall be obligated or expended 
for the demolition of the existing Brightman Street Bridge 
connecting Fall River and Somerset, Massachusetts, and the 
existing Brightman Street Bridge shall be maintained for 
pedestrian and bicycle access, and as an emergency service 
route.

SEC. 1949. KNIK ARM BRIDGE FUNDING CLARIFICATION.

    The Secretary shall provide to the public entity known as 
the Knik Arm Bridge and Toll Authority, established by the 
State of Alaska, funds provided in items 2465 and 3677 in the 
table contained in section 1702, item 2 in the table contained 
in section 1934, and item 14 in the table contained in section 
1302.

SEC. 1950. LINCOLN PARISH, LA/I-20 TRANSPORTATION CORRIDOR PROGRAM.

    (a) In General.--The Secretary shall credit non-Federal 
expenditures paid on or after October 23, 2000, by project 
sponsors of the Lincoln Parish transportation and community and 
system preservation project funded by the Department of 
Transportation and Related Agencies Appropriations Act, 2001 
(Public Law 106-346), and the United States Route 167/I-20 
interchange Interstate maintenance discretionary project funded 
by the Department of Transportation and Related Agencies 
Appropriations Act, 2002 (Public Law 107-87), that are in 
excess of the non-Federal matching requirements for such 
projects as non-Federal contributions toward the non-Federal 
matching requirements for all LA/I-20 Transportation Corridor 
Program elements between Louisiana Route 149 and Louisiana 
Route 33.
    (b) Expiration of Authority.--The authority to provide 
credit under subsection (a) expires on September 30, 2009.

SEC. 1951. BONDING ASSISTANCE PROGRAM.

    Section 332 of title 49, United States Code, is amended by 
inserting at the end the following:
    ``(e) Bonding Assistance.--
            ``(1) In general.--The Secretary, acting through 
        the Minority Resource Center established under 
        subsection (b), shall provide assistance in obtaining 
        bid, payment, and performance bonds by disadvantaged 
        business enterprises pursuant to subsection (b)(4).
            ``(2) Authorization of appropriation.--There is 
        authorized to be appropriated such sums as may be 
        necessary for each of fiscal years 2005 through 2009 to 
        carry out activities under this subsection.''.

SEC. 1952. CONGESTION RELIEF.

    The Secretary shall conduct a design and feasibility 
analysis to alleviate southbound traffic congestion along the 
George Washington Parkway, Virginia, between Interstate Route 
495 and the 14th Street Bridge and shall take appropriate 
action in response to the results of that analysis.

SEC. 1953. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out, in 
accordance with title 23, United States Code, projects under 
section 1301 and 1302 of this Act.

SEC. 1954. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

    Section 217(c) of title 23, United States Code, is amended 
by striking ``in conjunction with such trails, roads, highways, 
and parkways''.

SEC. 1955. CONVEYANCE TO THE CITY OF ELY, NEVADA.

    Notwithstanding sections 202 and 203 of the Federal Land 
Policy and Management Act of 1976 (43 U.S.C. 1711, 1712), the 
Secretary of Interior, acting through the Director of the 
Bureau of Land Management, shall convey within 45 days after 
the date of enactment of this Act to the city of Ely, Nevada, 
subject to valid existing rights, without consideration, all 
right, title, and interest of the United States in the land 
located within the railroad corridor described in rights-of-way 
numbered Nev-043230, Nev-043231, Nev-043232, Nev-43240, Nev-
043234, ELKO-03009, ELKO-03514, and CC-05887.

SEC. 1956. BROWNFIELDS GRANTS.

    Section 104(k)(4)(B) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9604(k)(4)(B)) is amended by adding at the end the following:
                            ``(iii) Exception.--Notwithstanding 
                        clause (i)(IV), the Administrator may 
                        use up to 25 percent of the funds made 
                        available to carry out this subsection 
                        to make a grant or loan under this 
                        subsection to eligible entities that 
                        satisfy all of the elements set forth 
                        in section 101(40) to qualify as a bona 
                        fide prospective purchaser, except that 
                        the date of acquisition of the property 
                        was on or before January 11, 2002.''.

SEC. 1957. TRAFFIC CIRCLE CONSTRUCTION, CLARENDON, VERMONT.

    (a) In General.--The State of Vermont agency of 
transportation shall--
            (1) not later than August 1, 2005, commence 
        planning for a traffic circle at the intersection of 
        United States Route 7 and Vermont Route 103 in 
        Clarendon, Vermont; and
            (2) not later than August 1, 2007, complete 
        construction of that traffic circle.
    (b) Funding.--From amounts made available to the State of 
Vermont by this Act, the Secretary shall provide to the State 
of Vermont agency of transportation $1,000,000 for use in 
carrying out this section.

SEC. 1958. LIMITATION ON PROJECT APPROVAL.

    Notwithstanding any provision of title 23, United States 
Code, the Secretary is prohibited from approving any Federal-
aid highway project in Orange and Seminole Counties, Florida, 
which provides access from Interstate Route 4 to the right-of-
way or median of Interstate Route 4 if tolls or toll facilities 
are used for the access to the right-of-way or median.

SEC. 1959. CROSS HARBOR FREIGHT MOVEMENT PROJECT.

    The Secretary shall provide to the public entity known as 
the Port Authority of New York and New Jersey, established by 
the States of New York and New Jersey, funds provided for 
project numbered 12 in section 1301 of this Act.

SEC. 1960. DENALI ACCESS SYSTEM PROGRAM.

    The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is 
amended--
            (1) by redesignating section 309 as section 310; 
        and
            (2) by inserting after section 308 the following:

``SEC. 309. DENALI ACCESS SYSTEM PROGRAM.

    ``(a) Establishment of the Denali Access System Program.--
Not later than 3 months after the date of enactment of the 
SAFETEA-LU, the Secretary of Transportation shall establish a 
program to pay the costs of planning, designing, engineering, 
and constructing road and other surface transportation 
infrastructure identified for the Denali access system program 
under this section.
    ``(b) Denali Access System Program Advisory Committee.--
            ``(1) Establishment.--Not later than 3 months after 
        the date of enactment of the SAFETEA-LU, the Denali 
        Commission shall establish a Denali Access System 
        Program Advisory Committee (referred to in this section 
        as the `advisory committee') .
            ``(2) Membership.--The advisory committee shall be 
        composed of 9 members to be appointed by the Governor 
        of the State of Alaska as follows:
                    ``(A) The chairman of the Denali 
                Commission.
                    ``(B) 4 members who represent existing 
                regional native corporations, native nonprofit 
                entities, or tribal governments, including one 
                member who is a civil engineer.
                    ``(C) 4 members who represent rural Alaska 
                regions or villages, including one member who 
                is a civil engineer.
            ``(3) Terms.--
                    ``(A) In general.--Except for the chairman 
                of the Commission who shall remain a member of 
                the advisory committee, members shall be 
                appointed to serve a term of 4 years.
                    ``(B) Initial members.--Except for the 
                chairman of the Commission, of the 8 initial 
                members appointed to the advisory committee, 2 
                shall be appointed for a term of 1 year, 2 
                shall be appointed for a term of 2 years, 2 
                shall be appointed for a term of 3 years, and 2 
                shall be appointed for a term of 4 years. All 
                subsequent appointments shall be for 4 years.
            ``(4) Responsibilities.--The advisory committee 
        shall be responsible for the following activities:
                    ``(A) Advising the Commission on the 
                surface transportation needs of Alaska Native 
                villages and rural communities, including 
                projects for the construction of essential 
                access routes within remote Alaska Native 
                villages and rural communities and for the 
                construction of roads and facilities necessary 
                to connect isolated rural communities to a road 
                system.
                    ``(B) Advising the Commission on 
                considerations for coordinated transportation 
                planning among the Alaska Native villages, 
                Alaska rural villages, the State of Alaska, and 
                other government entities.
                    ``(C) Establishing a list of transportation 
                priorities for Alaska Native village and rural 
                community transportation projects on an annual 
                basis, including funding recommendations.
                    ``(D) Facilitate the Commission's work on 
                transportation projects involving more than one 
                region.
            ``(5) FACA exemption.--The provisions of the 
        Federal Advisory Committee Act (5 U.S.C. App.) shall 
        not apply to the advisory committee.
    ``(c) Allocation of Funds.--
            ``(1) In general.--The Secretary shall allocate 
        funding authorized and made available for the Denali 
        access system program to the Commission to carry out 
        this section.
            ``(2) Distribution of funding.--In distributing 
        funds for surface transportation projects funded under 
        the program, the Commission shall consult the list of 
        transportation priorities developed by the advisory 
        committee.
    ``(d) Preference to Alaska Materials and Products.--To 
construct a project under this section, the Commission shall 
encourage, to the maximum extent practicable, the use of 
employees and businesses that are residents of Alaska.
    ``(e) Design Standards.--Each project carried out under 
this section shall use technology and design standards 
determined by the Commission to be appropriate given the 
location and the functionality of the project.
    ``(f) Maintenance.--Funding for a construction project 
under this section may include an additional amount equal to 
not more than 10 percent of the total cost of construction, to 
be retained for future maintenance of the project. All such 
retained funds shall be dedicated for maintenance of the 
project and may not be used for other purposes.
    ``(g) Lead Agency Designation.--For purposes of projects 
carried out under this section, the Commission shall be 
designated as the lead agency for purposes of accepting Federal 
funds and for purposes of carrying out this project.
    ``(h) Non-Federal Share.--Notwithstanding any other 
provision of law, funds made available to carry outthis section 
may be used to meet the non-Federal share of the cost of projects under 
title 23, United States Code.
    ``(i) Surface Transportation Program Transferability.--
            ``(1) Transferability.--In any fiscal year, up to 
        15 percent of the amounts made available to the State 
        of Alaska for surface transportation by section 133 of 
        title 23, United States Code, may be transferred to the 
        Denali access system program.
            ``(2) No effect on set-aside.--Paragraph (2) of 
        section 133(d), United States Code, shall not apply to 
        funds transferred under paragraph (1).
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be 
        appropriated out of the Highway Trust Fund (other than 
        the Mass Transit Account) to carry out this section 
        $15,000,000 for each of fiscal years 2006 through 2009.
            ``(2) Applicability of title 23.--Funds made 
        available to carry out this section shall be available 
        for obligation in the same manner as if such funds were 
        apportioned under chapter 1 of title 23, United States 
        Code; except that such funds shall not be transferable 
        and shall remain available until expended, and the 
        Federal share of the cost of any project carried out 
        using such funds shall be determined in accordance with 
        section 120(b).''.

SEC. 1961. I-95/CONTEE ROAD INTERCHANGE STUDY.

    (a) In General.--The Secretary shall conduct a study on the 
I-95/Contee Road relocated interchange project located in 
Prince George's County, Maryland. The study shall assess how 
the proposed interchange will--
            (1) leverage Federal investment in the I-95/Contee 
        Road relocated interchange project by encouraging a 
        public-private partnership between the State of 
        Maryland and the private financial interests supporting 
        the project;
            (2) improve overall transportation efficiency in 
        the area and enhance fire, rescue, and emergency 
        response in the area;
            (3) complement planned development in the area by 
        providing sufficient access to the Interstate System; 
        and
            (4) otherwise provide public benefits and revenues.
    (b) Data Collection.--As part of the study, the Secretary 
shall collect data regarding the economic impact of the 
project, including new jobs and State and county revenues in 
the form of real estate property taxes, retail sales taxes, and 
income and hotel sales and occupancy taxes.
    (c) Report.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Environment and Public 
Works of the Senate a report on the results of the study, 
including any recommendations of the Secretary.
    (d) Funding.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        section, out of the Highway Trust Fund (other than the 
        Mass Transit Account), $1,000,000 for fiscal year 2006.
            (2) Contract authority.--Funds authorized to be 
        appropriated by this section shall be available for 
        obligation in the same manner and to the same extent as 
        if such funds were apportioned under chapter 1 of title 
        23, United States Code; except that the Federal share 
        of the cost of the project shall be 100 percent, and 
        such funds shall remain available until expended and 
        shall not be transferable.

SEC. 1962. MULTIMODAL FACILITY IMPROVEMENTS.

    (a) Authorization of Appropriations.--The Secretary shall 
make available from funds in the Highway Trust Fund (other than 
the Mass Transit Account) $5,000,000 for each of fiscal years 
2006 through 2009 for multimodal facility improvements, 
construction, and ferry acquisition by North Bay Ferry Service, 
Inc., located at Port Sonoma in Petaluma, California.
    (b) Contract Authority.--Funds appropriated to carry out 
this section shall be available for obligation in the same 
manner as if the funds were apportioned under chapter 1 of 
title 23, United States Code, except that such funds shall 
remain available until expended.
    (c) Limitation.--Not more than 50 percent of funds 
appropriated to carry out this section shall be used for 
facility improvements and construction.
    (d) Federal Share.--The Federal Share of the cost of a 
facility improvement or construction project under this section 
shall be 80 percent.
    (e) Requirement.--Ferries to which assistance is provided 
under this section shall be purchased by a United States 
company that designs and builds vessels in the United States.

SEC. 1963. APOLLO THEATER LEASES.

    Notwithstanding the Public Works and Economic Development 
Act of 1965 (42 U.S.C. 3121 et seq.), or any other provision of 
law, the Economic Development Administration shall, in order to 
facilitate the further financing of the project, approve, 
without compensation to the agency, a series of leases of the 
Apollo Theater, located in Harlem, New York, to be improved by 
Economic Development Administration project numbers 01-01-7308 
and 01-01-07552.

SEC. 1964. PROJECT FEDERAL SHARE.

    (a) In General.--Notwithstanding any other provision of 
law, only for the States of Alaska, Montana, Nevada, North 
Dakota, Oregon, and South Dakota, the Federal share of the cost 
of a project described in subsection (b) shall be determined in 
accordance with section 120(b) of title 23, United States Code.
    (b) Projects.--The projects described in this subsection 
are--
            (1) the projects listed in section 1702;
            (2) the projects listed in section 1301; and
            (3) the projects listed in section 1934.

                        TITLE II--HIGHWAY SAFETY

SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass 
Transit Account):
            (1) Highway safety programs.--For carrying out 
        section 402 of title 23, United States Code, 
        $163,680,000 for fiscal year 2005, $217,000,000 for 
        fiscal year 2006, $220,000,000 for fiscal year 2007, 
        $225,000,000 for fiscal year 2008, and $235,000,000 for 
        fiscal year 2009.
            (2) Highway safety research and development.--For 
        carrying out section 403 of title 23, United States 
        Code, $71,424,000 for fiscal year 2005, $110,000,000 
        for fiscal year 2006, $107,750,000 for fiscal year 
        2007, $107,750,000 for fiscal year 2008, and 
        $105,500,000 for fiscal year 2009.
            (3) Occupant protection incentive grants.--For 
        carrying out section 405 of title 23, United States 
        Code, $19,840,000 for fiscal year 2005, $25,000,000 for 
        fiscal year 2006, $25,000,000 for fiscal year 2007, 
        $25,000,000 for fiscal year 2008, and $25,000,000 for 
        fiscal year 2009.
            (4) Safety belt performance grants.--For carrying 
        out section 406 of title 23, United States Code, 
        $124,500,000 for fiscal year 2006, $124,500,000 for 
        fiscal year 2007, $124,500,000 for fiscal year 2008, 
        and $124,500,000 for fiscal year 2009.
            (5) State traffic safety information system 
        improvements.--For carrying out section 408 of title 
        23, United States Code, $34,500,000 for fiscal year 
        2006, $34,500,000 for fiscal year 2007, $34,500,000 for 
        fiscal year 2008, and $34,500,000 for fiscal year 2009.
            (6) Alcohol-impaired driving countermeasures 
        incentive grant program.--For carrying out section 410 
        of title 23, United States Code, $39,680,000 for fiscal 
        year 2005, $120,000,000 for fiscal year 2006, 
        $125,000,000 for fiscal year 2007, $131,000,000 for 
        fiscal year 2008, and $139,000,000 for fiscal year 
        2009.
            (7) National driver register.--For the National 
        Highway Traffic Safety Administration to carry out 
        chapter 303 of title 49, United States Code, $3,968,000 
        for fiscal year 2005, $4,000,000 for fiscal year 2006, 
        $4,000,000 for fiscal year 2007, $4,000,000 for fiscal 
        year 2008, and $4,000,000 for fiscal year 2009.
            (8) High visibility enforcement program.--For 
        carrying out section 2009 of this title $29,000,000 for 
        fiscal year 2006, $29,000,000 for fiscal year 2007, 
        $29,000,000 for fiscal year 2008, and $29,000,000 for 
        fiscal year 2009.
            (9) Motorcyclist safety.--For carrying out section 
        2010 of this title $6,000,000 for fiscal year 2006, 
        $6,000,000 for fiscal year 2007, $6,000,000 for fiscal 
        year 2008, and $7,000,000 for fiscal year 2009.
            (10) Child safety and child booster seat safety 
        incentive grants.--For carrying out section 2011 of 
        this title $6,000,000 for fiscal year 2006, $6,000,000 
        for fiscal year 2007, $6,000,000 for fiscal year 2008, 
        and $7,000,000 for fiscal year 2009.
            (11) Administrative expenses.--For administrative 
        and related operating expenses of the National Highway 
        Traffic Safety Administration in carrying out chapter 4 
        of title 23, United States Code, and this title 
        $17,500,000 for fiscal year 2006, $17,750,000 for 
        fiscal year 2007, $18,250,000 for fiscal year 2008, and 
        $18,500,000 for fiscal year 2009.
    (b) Prohibition on Other Uses.--Except as otherwise 
provided in chapter 4 of title 23, United States Code, and this 
title, (including the amendments made by this title), the 
amounts made available from the Highway Trust Fund (other than 
the Mass Transit Account) for a program under such chapter 
shall only be used to carry out such program and may not be 
used by States or local governments for construction purposes.
    (c) Applicability of Title 23.--Except as otherwise 
provided in chapter 4 of title 23, United States Code, and this 
title, amounts made available under subsection (a) for each of 
fiscal years 2005 through 2009 shall be available for 
obligation in the same manner as if such funds were apportioned 
under chapter 1 of title 23, United States Code.
    (d) Transfers.--In each fiscal year, the Secretary may 
transfer any amounts remaining available under paragraph (3), 
(5), or (6) of subsection (a) to the amounts made available 
under any other of such paragraphs in order to ensure, to the 
maximum extent possible, that each State receives the maximum 
incentive funding for which the State is eligible under 
sections 405, 408, and 410 of title 23, United States Code.
    (e) Clarifications.--The amounts made available by each of 
subsections (a)(1) through (a)(7) shall be less any amounts 
made available from the Highway Trust Fund (other than the Mass 
Transit Account) by laws enacted before the date of enactment 
of this Act for the respective programs referred to in each of 
such subsections for fiscal year 2005. Amounts authorized by 
such subsections are post-rescission and shall not be subject 
to any rescission after the date of enactment of this Act.

SEC. 2002. HIGHWAY SAFETY PROGRAMS.

    (a) Programs to Be Included.--Section 402(a) of title 23, 
United States Code, is amended--
            (1) in clause (2) by striking ``and to increase 
        public awareness of the benefit of motor vehicles 
        equipped with airbags'';
            (2) by redesignating clause (6) as clause (7);
            (3) by inserting after clause (5) the following: 
        ``(6) to reduce accidents resulting from unsafe driving 
        behavior (including aggressive or fatigued driving and 
        distracted driving arising from the use of electronic 
        devices in vehicles)''; and
            (4) in the 10th sentence by inserting ``aggressive 
        driving, fatigued driving, distracted driving,'' after 
        ``school bus accidents,''
    (b) Administration of State Programs.--Section 402(b)(1) of 
such title is amended--
            (1) in subparagraph (C) by striking ``and'' at the 
        end;
            (2) by redesignating clause (6) as clause (7);
            (3) in subparagraph (D) by striking ``State.'' and 
        inserting ``State; and''; and
            (4) by adding at the end the following:
                    ``(E) provide satisfactory assurances that 
                the State will implement activities in support 
                of national highway safety goals to reduce 
                motor vehicle related fatalities that also 
                reflect the primary data-related crash factors 
                within a State as identified by the State 
                highway safety planning process, including--
                            ``(i) national law enforcement 
                        mobilizations;
                            ``(ii) sustained enforcement of 
                        statutes addressing impaired driving, 
                        occupant protection, and driving in 
                        excess of posted speed limits;
                            ``(iii) an annual statewide safety 
                        belt use survey in accordance with 
                        criteria established by the Secretary 
                        for the measurement of State safety 
                        belt use rates to ensure that the 
                        measurements are accurate and 
                        representative; and
                            ``(iv) development of statewide 
                        data systems to provide timely and 
                        effective data analysis to support 
                        allocation of highway safety 
                        resources.''.
    (c) Deduction Deletion.--Section 402(c) of such title is 
amended--
            (1) by striking the second sentence; and
            (2) in the sixth sentence by striking ``three-
        fourths of 1 percent'' and inserting ``2 percent''.
    (d) Law Enforcement and Consolidation of Applications.--
Section 402 of such title is further amended by adding at the 
end the following:
    ``(l) Law Enforcement Vehicular Pursuit Training.--A State 
shall actively encourage all relevant law enforcement agencies 
in such State to follow the guidelines established for 
vehicular pursuits issued by the International Association of 
Chiefs of Police that are in effect on the date of enactment of 
this subsection or as revised and in effect after such date as 
determined by the Secretary.
    ``(m) Consolidation of Grant Applications.--The Secretary 
shall establish an approval process by which a State may apply 
for all grants under this chapter through a single application 
process with one annual deadline. The Bureau of Indian Affairs 
shall establish a similar simplified process for applications 
for grants from Indian tribes under this chapter.''.
    (e) Conforming Repeal for Administrative Expenses.--Section 
405(d) of such title is repealed.

SEC. 2003. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAMS.

    (a) Revised Authority and Requirements.--Section 403(a) of 
title 23, United States Code, is amended to read as follows:
    ``(a) Authority of the Secretary.--The Secretary is 
authorized to use funds appropriated to carry out this section 
to--
            ``(1) conduct research on all phases of highway 
        safety and traffic conditions, including accident 
        causation, highway or driver characteristics, 
        communications, and emergency care;
            ``(2) conduct ongoing research into driver behavior 
        and its effect on traffic safety;
            ``(3) conduct research on, launch initiatives to 
        counter, and conduct demonstration projects on fatigued 
        driving by drivers of motor vehicles and distracted 
        driving in such vehicles, including the effect that the 
        use of electronic devices and other factors deemed 
        relevant by the Secretary have on driving;
            ``(4) conduct training or education programs in 
        cooperation with other Federal departments and 
        agencies, States, private sector persons, highway 
        safety personnel, and law enforcement personnel;
            ``(5) conduct research on, and evaluate the 
        effectiveness of, traffic safety countermeasures, 
        including seat belts and impaired driving initiatives;
            ``(6) conduct research on, evaluate, and develop 
        best practices related to driver education programs 
        (including driver education curricula, instructor 
        training and certification, program administration and 
        delivery mechanisms) and make recommendations for 
        harmonizing driver education and multistage graduated 
        licensing systems;
            ``(7) conduct research, training, and education 
        programs related to older drivers;
            ``(8) conduct demonstration projects; and
            ``(9) conduct research, training, and programs 
        relating to motorcycle safety, including impaired 
        driving.''
    (b) International Cooperation.--Section 403 of such title 
is amended by adding at the end the following:
    ``(g) International Cooperation.--The Administrator of the 
National Highway Traffic Safety Administration may participate 
and cooperate in international activities to enhance highway 
safety.''.
    (c) On-Scene Motor Vehicle Collision Causation.--
            (1) Study.--The Secretary shall conduct under 
        section 403 of title 23, United States Code, a 
        nationally representative study to collect on-scene 
        motor vehicle collision data and to determine crash 
        causation. The Secretary shall enter into a contract 
        with the National Academy of Sciences to conduct a 
        review of the research, design, methodology, and 
        implementation of the study.
            (2) Consultation.--The study under this subsection 
        may be conducted in consultation with other Federal 
        departments and agencies with relevant expertise.
            (3) Final report.--Not later than 2 years after the 
        date of enactment of this Act, the Secretary shall 
        submit a report on the results of the study conducted 
        under this subsection to the Committee on Commerce, 
        Science, and Transportation of the Senate and the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives.
    (d) Research on Distracted, Inattentive, and Fatigued 
Drivers.--In conducting research under section 403(a)(3) of 
title 23, United States Code, the Secretary shall carry out not 
less than 2 demonstration projects to evaluate new and 
innovative means of combating traffic system problems caused by 
distracted, inattentive, or fatigued drivers. The demonstration 
projects shall be in addition to any other research carried out 
under such section.
    (e) Pedestrian Safety.--
            (1) In general.--The Secretary shall--
                    (A) produce a comprehensive report on 
                pedestrian safety that builds on the current 
                level of knowledge of pedestrian safety 
                countermeasures by identifying the most 
                effective advanced technology and intelligent 
                transportation systems, such as automated 
                pedestrian detection and warning systems 
                (infrastructure-based and vehicle-based), road 
                design, and vehicle structural design that 
                could potentially mitigate the crash forces on 
                pedestrians in the event of a crash; and
                    (B) include in the report recommendations 
                on how new technological developments could be 
                incorporated into educational and enforcement 
                efforts and how they could be integrated into 
                national design guidelines developed by the 
                American Association of State Highway and 
                Transportation Officials.
            (2) Due date.--The Secretary shall complete the 
        report under this subsection not less than 2 years 
        after the date of enactment of this Act and submit a 
        copy of the report to the Committee on Commerce, 
        Science, and Transportation of the Senate and the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives.
    (f)  Refusal of Intoxication Testing.--
            (1) Study.--The Secretary shall carry out under 
        section 403 of title 23, United States Code, a study of 
        the frequency with which persons arrested for the 
        offense of operating a motor vehicle while under the 
        influence of alcohol and persons arrested for the 
        offense of operating a motor vehicle while intoxicated 
        refuse to take a test to determine blood alcohol 
        concentration levels and the effect such refusals have 
        on the ability of States to prosecute such persons for 
        those offenses.
            (2) Consultation.--In carrying out the study under 
        this subsection, the Secretary shall consult with the 
        Governors of the States, the States' Attorneys General, 
        and the United States Sentencing Commission.
            (3) Report.--
                    (A) Requirement for report.--Not later than 
                2 years after the date of the enactment of this 
                Act, the Secretary shall submit a report on the 
                results of the study to the Committee on 
                Commerce, Science, and Transportation of the 
                Senate and the Committee on Transportation and 
                Infrastructure of the House of Representatives.
                    (B) Content.--The report shall include any 
                recommendation for legislation, including any 
                recommended model State legislation, and any 
                other recommendations that the Secretary 
                considers appropriate for implementing a 
                program designed to decrease the occurrence of 
                refusals by arrested persons to submit to a 
                test to determine blood alcohol concentration 
                levels.
    (g) Impaired Motorcycle Driving.--
            (1) Studying.--In conducting research under section 
        403(a)(9) of title 23, United States Code, the 
        Secretary shall conduct a study on educational, public 
        information and other activities targeted at reducing 
        motorcycle accidents and resulting fatalities and 
        injuries, where the operator of the motorcycle is 
        impaired.
            (2) Report.--Not later than 2 years after the date 
        of enactment of this Act, the Secretary shall submit to 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate a 
        report on the results of the study, including the data 
        collected and statistics compiled and recommendations 
        to reduce the number of motorcycle accidents described 
        in paragraph (1) and the resulting fatalities and 
        injuries.
    (h) Reducing Impaired Driving Recidivism.--
            (1) Study.--The Secretary shall conduct a study on 
        reducing the incidence of alcohol-related motor vehicle 
        crashes and fatalities through research of advanced 
        vehicle-based alcohol detection systems, including an 
        assessment of the practicability and cost effectiveness 
        of such systems.
            (2) Report.--Not later than 2 years after the date 
        of enactment of this Act, the Secretary shall transmit 
        to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate a 
        report on the results of the study.

SEC. 2004. OCCUPANT PROTECTION INCENTIVE GRANTS.

    (a) General Authority.--Section 405(a) of title 23, United 
States Code, is amended-
            (1) in paragraph (2) by striking ``Transportation 
        Equity Act for the 21st Century'' and inserting 
        ``SAFETEA-LU'';
            (2) in paragraph (3) by striking ``1997'' and 
        inserting ``2003''; and
            (3) in each of paragraphs (4)(A), (4)(B), and 
        (4)(C) by inserting after ``years'' the following: 
        ``beginning after September 30, 2003,''.
    (c) Grant Amounts.--Section 405(c) of such title is 
amended-
            (1) by striking ``25 percent'' and inserting ``100 
        percent''; and
            (2) by striking ``1997'' and inserting ``2003''.

SEC. 2005. GRANTS FOR PRIMARY SAFETY BELT USE LAWS.

    (a) In General.--Section 406 of title 23, United States 
Code, is amended to read as follows:

``Sec. 406. Safety belt performance grants

    ``(a) In General.--The Secretary shall make grants to 
States in accordance with the provisions of this section to 
encourage the enactment and enforcement of laws requiring the 
use of safety belts in passenger motor vehicles.
    ``(b) Grants for Enacting Primary Safety Belt Use Laws.--
            ``(1) In general.--The Secretary shall make a 
        single grant to each State that either--
                    ``(A) enacts for the first time after 
                December 31, 2002, and has in effect and is 
                enforcing a conforming primary safety belt use 
                law for all passenger motor vehicles; or
                    ``(B) in the case of a State that does not 
                have such a primary safety belt use law, has 
                after December 31, 2005, a State safety belt 
                use rate of 85 percent or more for each of the 
                2 calendar years immediately preceding the 
                fiscal year of a grant, as measured under 
                criteria determined by the Secretary.
            ``(2) Amount.--The amount of a grant available to a 
        State in fiscal year 2006 or in a subsequent fiscal 
        year under paragraph (1) shall equal 475 percent of the 
        amount apportioned to the State under section 402(c) 
        for fiscal year 2003.
            ``(3) July 1 cut-off.--For the purpose of 
        determining the eligibility of a State for a grant 
        underparagraph (1)(A), a conforming primary safety belt 
use law enacted after June 30th of any year shall--
                    ``(A) not be considered to have been 
                enacted in the Federal fiscal year in which 
                that June 30th falls; but
                    ``(B) be considered as if it were enacted 
                after October 1 of the next Federal fiscal 
                year.
            ``(4) Shortfall.--If the total amount of grants 
        provided for by this subsection for a fiscal year 
        exceeds the amount of funds available for such grants 
        for that fiscal year, the Secretary shall make grants 
        under this subsection to States in the order in which--
                    ``(A) the conforming primary safety belt 
                use law came into effect; or
                    ``(B) the State's safety belt use rate was 
                85 percent or more for 2 consecutive calendar 
                years (as measured under by criteria determined 
                by the Secretary), whichever first occurs.
            ``(5) Catch-up grants.--The Secretary shall make a 
        grant to any State eligible for a grant under this 
        subsection that did not receive a grant for a fiscal 
        year because of the application of paragraph (4), in 
        the next fiscal year if the State's conforming primary 
        safety belt use law remains in effect or its safety 
        belt use rate is 85 percent or more for the 2 
        consecutive calendar years preceding such next fiscal 
        year (subject to the condition in paragraph (4)).
    ``(c) Grants for Pre-2003 Laws.--
            ``(1) In general.--To the extent that amounts made 
        available for grants under this section for any of 
        fiscal years 2006 through 2009 exceed the total amount 
        of grants to be awarded under subsection (b) for the 
        fiscal year, including amounts to be awarded for catch-
        up grants under subsection (b)(5), the Secretary shall 
        make a single grant to each State that enacted, has in 
        effect, and is enforcing a conforming primary safety 
        belt use law for all passenger motor vehicles that was 
        in effect before January 1, 2003.
            ``(2) Amount; installments.--The amount of a grant 
        available to a State under this subsection shall be 
        equal to 200 percent of the amount of funds apportioned 
        to the State under section 402(c) for fiscal year 2003. 
        The Secretary may award the grant in annual 
        installments.
    ``(d) Allocation of Unallocated Funds.--
            ``(1) Additional grants.--The Secretary shall make 
        additional grants under this section of any amounts 
        made available for grants under this section that, on 
        July 1, 2009, have not been allocated to States under 
        this section.
            ``(2) Allocation.--The additional grants made under 
        this subsection shall be allocated among all States 
        that, as of that date, have enacted, have in effect, 
        and are enforcing conforming primary safety belt laws 
        for all passenger motor vehicles. The allocations shall 
        be made in accordance with the formula for apportioning 
        funds among the States under section 402(c).
    ``(e) Use of Grant Funds.--
            ``(1) In general.--Subject to paragraph (2), a 
        State may use a grant under this section for any safety 
        purpose under this title or for any project that 
        corrects or improves a hazardous roadway location or 
        feature or proactively addresses highway safety 
        problems, including--
                    ``(A) intersection improvements;
                    ``(B) pavement and shoulder widening;
                    ``(C) installation of rumble strips and 
                other warning devices;
                    ``(D) improving skid resistance;
                    ``(E) improvements for pedestrian or 
                bicyclist safety;
                    ``(F) railway-highway crossing safety;
                    ``(G) traffic calming;
                    ``(H) the elimination of roadside 
                obstacles;
                    ``(I) improving highway signage and 
                pavement marking;
                    ``(J) installing priority control systems 
                for emergency vehicles at signalized 
                intersections;
                    ``(K) installing traffic control or warning 
                devices at locations with high accident 
                potential;
                    ``(L) safety-conscious planning; and
                    ``(M) improving crash data collection and 
                analysis.
            ``(2) Safety activity requirement.--Notwithstanding 
        paragraph (1), the Secretary shall ensure that at least 
        $1,000,000 of amounts received by States under this 
        section are obligated for safety activities under this 
        chapter.
            ``(3) Support activity.--The Secretary or his 
        designee may engage in activities with States and State 
        legislators to consider proposals related to safety 
        belt use laws.
    ``(f) Carry-Forward of Excess Funds.--If the amount 
available for grants under this section for any fiscal year 
exceeds the sum of the grants made under this section for that 
fiscal year, the excess amount and obligational authority shall 
be carried forward and made available for grants under this 
section in the succeeding fiscal year.
    ``(g) Federal Share.--The Federal share payable for grants 
under this section shall be 100 percent.
    ``(h) Passenger Motor Vehicle Defined.--In this section, 
the term `passenger motor vehicle' means--
            ``(1) a passenger car;
            ``(2) a pickup truck; and
            ``(3) a van, minivan, or sport utility vehicle with 
        a gross vehicle weight rating of less than 10,000 
        pounds.''.
    (b) Clerical Amendment.--The analysis for chapter 4 of such 
title is amended by striking the item relating to section 406 
and inserting the following:

``406. Safety belt performance grants.''.

SEC. 2006. STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.

    (a) In General.--Section 408 of title 23, United States 
Code, is amended to read as follows:

``Sec. 408. State traffic safety information system improvements

    ``(a) Grant Authority.--Subject to the requirements of this 
section, the Secretary shall make grants to eligible States to 
support the development and implementation of effective 
programs by such States to--
            ``(1) improve the timeliness, accuracy, 
        completeness, uniformity, integration, and 
        accessibility of the safety data of the State that is 
        needed to identify priorities for national, State, and 
        local highway and traffic safety programs;
            ``(2) evaluate the effectiveness of efforts to make 
        such improvements;
            ``(3) link the State data systems, including 
        traffic records, with other data systems within the 
        State, such as systems that contain medical, roadway, 
        and economic data; and
            ``(4) improve the compatibility and 
        interoperability of the data systems of the State with 
        national data systems and data systems of other States 
        and enhance the ability of the Secretary to observe and 
        analyze national trends in crash occurrences, rates, 
        outcomes, and circumstances.
    ``(b) First-Year Grants.--To be eligible for a first-year 
grant under this section in a fiscal year, a State shall 
demonstrate to the satisfaction of the Secretary that the State 
has--
            ``(1) established a highway safety data and traffic 
        records coordinating committee with a multidisciplinary 
        membership that includes, among others, managers, 
        collectors, and users of traffic records and public 
        health and injury control data systems; and
            ``(2) developed a multiyear highway safety data and 
        traffic records system strategic plan--
                    ``(A) that addresses existing deficiencies 
                in the State's highway safety data and traffic 
                records system;
                    ``(B) that is approved by the highway 
                safety data and traffic records coordinating 
                committee;
                    ``(C) that specifies how existing 
                deficiencies in the State's highway safety data 
                and traffic records system were identified;
                    ``(D) that prioritizes, on the basis of the 
                identified highway safety data and traffic 
                records system deficiencies of the State, the 
                highway safety data and traffic records system 
                needs and goals of the State, including the 
                activities under subsection (a);
                    ``(E) that identifies performance-based 
                measures by which progress toward those goals 
                will be determined; and
                    ``(F) that specifies how the grant funds 
                and any other funds of the State are to be used 
                to address needs and goals identified in the 
                multiyear plan.
    ``(c) Successive Year Grants.--A State shall be eligible 
for a grant under this subsection in a fiscal year succeeding 
the first fiscal year in which the State receives a grant under 
subsection (b) if the State--
            ``(1) certifies to the Secretary that an assessment 
        or audit of the State's highway safety data and traffic 
        records system has been conducted or updated within the 
        preceding 5 years;
            ``(2) certifies to the Secretary that its highway 
        safety data and traffic records coordinating committee 
        continues to operate and supports the multiyear plan;
            ``(3) specifies how the grant funds and any other 
        funds of the State are to be used to address needs and 
        goals identified in the multiyear plan;
            ``(4) demonstrates to the Secretary measurable 
        progress toward achieving the goals and objectives 
        identified in the multiyear plan; and
            ``(5) submits to the Secretary a current report on 
        the progress in implementing the multiyear plan.
    ``(d) Grant Amount.--Subject to subsection (e)(3), the 
amount of a year grant made to a State for a fiscal year under 
this section shall equal the higher of--
            ``(1) the amount determined by multiplying--
                    ``(A) the amount appropriated to carry out 
                this section for such fiscal year, by
                    ``(B) the ratio that the funds apportioned 
                to the State under section 402 for fiscal year 
                2003 bears to the funds apportioned to all 
                States under such section for fiscal year 2003; 
                or
            ``(2)(A) $300,000 in the case of the first fiscal 
        year a grant is made to a State under this section 
        after the date of enactment of this subparagraph; or
            ``(B) $500,000 in the case of a succeeding fiscal 
        year a grant is made to the State under this section 
        after such date of enactment.
    ``(e) Additional Requirements and Limitations.--
            ``(1) Model data elements.--The Secretary, in 
        consultation with States and other appropriate parties, 
        shall determine the model data elements that are useful 
        for the observation and analysis of State and national 
        trends in occurrences, rates, outcomes, and 
        circumstances of motor vehicle traffic accidents. In 
        order to be eligible for a grant under this section, a 
        State shall submit to the Secretary a certification 
        that the State has adopted and uses such model data 
        elements, or a certification that the State will use 
        grant funds provided under this section toward adopting 
        and using the maximum number of such model data 
        elements as soon as practicable.
            ``(2) Data on use of electronic devices.--The model 
        data elements required under paragraph (1) shall 
        include data elements, as determined appropriate by the 
        Secretary, in consultation with the States and 
        appropriate elements of the law enforcement community, 
        on the impact on traffic safety of the use of 
        electronic devices while driving.
            ``(3) Maintenance of effort.--No grant may be made 
        to a State under this section in any fiscal year unless 
        the State enters into such agreements with the 
        Secretary as the Secretary may require to ensure that 
        the State will maintain its aggregate expenditures from 
        all other sources for highway safety data programs at 
        or above the average level of such expenditures 
        maintained by such State in the 2 fiscal years 
        preceding the date of enactment of the SAFETEA-LU.
            ``(4) Federal share.--The Federal share of the cost 
        of adopting and implementing in a fiscal year a State 
        program described in subsection (a) may not exceed 80 
        percent.
            ``(5) Limitation on use of grant proceeds.--A State 
        may use the proceeds of a grant received under this 
        section only to implement the program described in 
        subsection (a) for which the grant is made.
    ``(f) Applicability of Chapter 1.--Section 402(d) of this 
title shall apply in the administration of this section.''.
    (b) Clerical Amendment.--The analysis for chapter 4 of such 
title is amended by striking the item relating to section 408 
and inserting the following:

``408. State traffic safety information system improvements.''.

SEC. 2007. ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES.

    (a) Maintenance of Effort.--Section 410(a)(2) of title 23, 
United States Code, is amended--
            (1) by striking ``under this section'' and 
        inserting ``under this subsection''; and
            (2) by striking ``Transportation Equity Act for the 
        21st Century'' and inserting ``SAFETEA-LU''.
    (b) Revised Grant Authority.--Section 410 of such title is 
amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraph (4) as 
                paragraph (3); and
                    (C) in paragraph (3) (as so redesignated) 
                by striking the second comma following 
                ``sixth'';
            (2) by redesignating subsections (e) and (f) as 
        subsections (h) and (i), respectively;
            (3) by striking subsections (b) through (d) and 
        inserting the following:
    ``(b) Eligibility Requirements.--To be eligible for a grant 
under subsection (a), a State shall--
            ``(1) have an alcohol related fatality rate of 0.5 
        or less per 100,000,000 vehicle miles traveled as of 
        the date of the grant, as determined by the Secretary 
        using the most recent Fatality Analysis Reporting 
        System of the National Highway Traffic Safety 
        Administration; or
            ``(2)(A) for fiscal year 2006 by carrying out 3 of 
        the programs and activities under subsection (c);
            ``(B) for fiscal year 2007 by carrying out 4 of the 
        programs and activities under subsection (c); or
            ``(C) for fiscal years 2008 and 2009 by carrying 
        out 5 of the programs and activities under subsection 
        (c).
    ``(c) State Programs and Activities.--The programs and 
activities referred to in subsection (b) are the following:
            ``(1) Check point, saturation patrol program.--A 
        State program to conduct a series of high visibility, 
        Statewide law enforcement campaigns in which law 
        enforcement personnel monitor for impaired driving, 
        either through the use of sobriety check points or 
        saturation patrols, on a nondiscriminatory, lawful 
        basis for the purpose of determining whether the 
        operators of the motor vehicles are driving while under 
        the influence of alcohol--
                    ``(A) if the State organizes the campaigns 
                in cooperation with related periodic national 
                campaigns organized by the National Highway 
                Traffic Safety Administration, except that this 
                subparagraph does not preclude a State from 
                initiating sustained high visibility, Statewide 
                law enforcement campaigns independently of the 
                cooperative efforts; and
                    ``(B) if, for each fiscal year, the State 
                demonstrates to the Secretary that the State 
                and the political subdivisions of the State 
                that receive funds under this section have 
                increased, in the aggregate, the total number 
                of impaired driving law enforcement activities 
                at high incident locations (or any other 
                similar activity approved by the Secretary) 
                initiated in such State during the preceding 
                fiscal year by a factor that the Secretary 
                determines meaningful for the State over the 
                number of such activities initiated in such 
                State during the preceding fiscal year.
            ``(2) Prosecution and adjudication outreach 
        program.--A State prosecution and adjudication program 
        under which--
                    ``(A) the State works to reduce the use of 
                diversion programs by educating and informing 
                prosecutors and judges through various outreach 
                methods about the benefits and merits of 
                prosecuting and adjudicating defendants who 
                repeatedly commit impaired driving offenses;
                    ``(B) the courts in a majority of the 
                judicial jurisdictions of the State are 
                monitored on the courts' adjudication of cases 
                of impaired driving offenses; or
                    ``(C) annual statewide outreach is provided 
                for judges and prosecutors on innovative 
                approaches to the prosecution and adjudication 
                of cases of impaired driving offenses that have 
                the potential for significantly improving the 
                prosecution and adjudication of such cases.
            ``(3) Testing of bac.--An effective system for 
        increasing from the previous year the rate of blood 
        alcohol concentration testing of motor vehicle drivers 
        involved in fatal accidents.
            ``(4) High risk drivers.--A law that establishes 
        stronger sanctions or additional penalties for 
        individuals convicted of operating a motor vehicle 
        while under the influence of alcohol whose blood 
        alcohol concentration is 0.15 percent or more than for 
        individuals convicted of the same offense but with a 
        lower blood alcohol concentration. For purposes of this 
        paragraph, `additional penalties' includes--
                    ``(A) a 1 year suspension of a driver's 
                license, but with the individual whose license 
                is suspended becoming eligible after 45 days of 
                such suspension to obtain a provisional 
                driver's license that would permit the 
                individual to drive--
                            ``(i) only to and from the 
                        individual's place of employment or 
                        school; and
                            ``(ii) only in an automobile 
                        equipped with a certified alcohol 
                        ignition interlock device; and
                    ``(B) a mandatory assessment by a certified 
                substance abuse official of whether the 
                individual has an alcohol abuse problem with 
                possible referral to counseling if the official 
                determines that such a referral is appropriate.
            ``(5) Programs for effective alcohol rehabilitation 
        and dwi courts.--A program for effective inpatient and 
        outpatient alcohol rehabilitation based on mandatory 
        assessment and appropriate treatment for repeat 
        offenders or a program to refer impaired driving cases 
        to courts that specialize in driving while impaired 
        cases that emphasize the close supervision of high-risk 
        offenders.
            ``(6) Underage drinking program.--An effective 
        strategy, as determined by the Secretary, for 
        preventing operators of motor vehicles under age 21 
        from obtaining alcoholic beverages and for preventing 
        persons from making alcoholic beverages available to 
        individuals under age 21. Such a strategy may include--
                    ``(A) the issuance of tamper-resistant 
                drivers' licenses to individuals under age 21 
                that are easily distinguishable in appearance 
                from drivers' licenses issued to individuals 
                age 21 or older; and
                    ``(B) a program provided by a nonprofit 
                organization for training point of sale 
                personnel concerning, at a minimum--
                            ``(i) the clinical effects of 
                        alcohol;
                            ``(ii) methods of preventing second 
                        party sales of alcohol;
                            ``(iii) recognizing signs of 
                        intoxication;
                            ``(iv) methods to prevent underage 
                        drinking; and
                            ``(v) Federal, State, and local 
                        laws that are relevant to such 
                        personnel; and
                    ``(C) having a law in effect that creates a 
                0.02 percent blood alcohol content limit for 
                drivers under 21 years old.
            ``(7) Administrative license revocation.--An 
        administrative driver's license suspension or 
        revocation system for individuals who operate motor 
        vehicles while under the influence of alcohol that 
        requires that--
                    ``(A) in the case of an individual who, in 
                any 5-year period beginning after the date of 
                enactment of the Transportation Equity Act for 
                the 21st Century, is determined on the basis of 
                a chemical test to have been operating a motor 
                vehicle while under the influence of alcohol or 
                is determined to have refused to submit to such 
                a test as proposed by a law enforcement 
                officer, the State agency responsible for 
                administering drivers' licenses, upon receipt 
                of the report of the law enforcement officer--
                            ``(i) suspend the driver's license 
                        of such individual for a period of not 
                        less than 90 days if such individual is 
                        a first offender in such 5-year period; 
                        except that under such suspension an 
                        individual may operate a motor vehicle, 
                        after the 15-day period beginning on 
                        the date of the suspension, to and from 
                        employment, school, or an alcohol 
                        treatment program if an ignition 
                        interlock device is installed on each 
                        of the motor vehicles owned or 
                        operated, or both, by the individual; 
                        and
                            ``(ii) suspend the driver's license 
                        of such individual for a period of not 
                        less than 1 year, or revoke such 
                        license, if such individual is a repeat 
                        offender in such 5-year period; except 
                        that such individual to operate a motor 
                        vehicle, after the 45-day period 
                        beginning on the date of the suspension 
                        or revocation, to and from employment, 
                        school, or an alcohol treatment program 
                        if an ignition interlock device is 
                        installed on each of the motor vehicles 
                        owned or operated, or both, by the 
                        individual; and
                    ``(B) the suspension and revocation 
                referred to under clause (i) take effect not 
                later than 30 days after the date on which the 
                individual refused to submit to a chemical test 
                or received notice of having been determined to 
                be driving under the influence of alcohol, in 
                accordance with the procedures of the State.
            ``(8) Self sustaining impaired driving prevention 
        program.--A program under which a significant portion 
        of the fines or surcharges collected from individuals 
        who are fined for operating a motor vehicle while under 
        the influence of alcohol are returned to communities 
        for comprehensive programs for the prevention of 
        impaired driving.
    ``(d) Uses of Grants.--Subject to subsection (g)(2), grants 
made under this section may be used for all programs and 
activities described in subsection (c), and to defray the 
following costs:
            ``(1) Labor costs, management costs, and equipment 
        procurement costs for the high visibility, Statewide 
        law enforcement campaigns under subsection (c)(1).
            ``(2) The costs of the training of law enforcement 
        personnel and the procurement of technology and 
        equipment, including video equipment and passive 
        alcohol sensors, to counter directly impaired operation 
        of motor vehicles.
            ``(3) The costs of public awareness, advertising, 
        and educational campaigns that publicize use of 
        sobriety check points or increased law enforcement 
        efforts to counter impaired operation of motor 
        vehicles.
            ``(4) The costs of public awareness, advertising, 
        and educational campaigns that target impaired 
        operation of motor vehicles by persons under 34 years 
        of age.
            ``(5) The costs of the development and 
        implementation of a State impaired operator information 
        system.
            ``(6) The costs of operating programs that result 
        in vehicle forfeiture or impoundment or license plate 
        impoundment.
    ``(e) Additional Authorities for Certain Authorized Uses.--
            ``(1) Combination of grant proceeds.--Grant funds 
        used for a campaign under subsection (d)(3) may be 
        combined, or expended in coordination, with proceeds of 
        grants under section 402.
            ``(2) Coordination of uses.--Grant funds used for a 
        campaign under paragraph (3) or (4) of subsection (d) 
        may be expended--
                    ``(A) in coordination with employers, 
                schools, entities in the hospitality industry, 
                and nonprofit traffic safety groups; and
                    ``(B) in coordination with sporting events 
                and concerts and other entertainment events.
    ``(f) Allocation.--Subject to subsection (g), funds made 
available to carry out this section shall be allocated among 
States that meet the eligibility criteria in subsection (b) on 
the basis of the apportionment formula under section 402(c).
    ``(g) Grants to High Fatality Rate States.--
            ``(1) In general.--The Secretary shall make a 
        separate grant under this section to each state that--
                    ``(A) is among the 10 States with the 
                highest impaired driving related fatalities as 
                determined by the Secretary using the most 
                recent Fatality Analysis Reporting System of 
                the National Highway Traffic Safety 
                Administration; and
                    ``(B) prepares a plan for grant 
                expenditures under this subsection that is 
                approved by the Administrator of the National 
                Highway Traffic Safety Administration.
            ``(2) Required uses.--At least one-half of the 
        amounts allocated to States under this subsection may 
        only be used for the program described in subsection 
        (c)(1).
            ``(3) Allocation.--Funds made available under this 
        subsection shall be allocated among States described in 
        paragraph (1) on the basis of the apportionment formula 
        under section 402(c), except that no State shall be 
        allocated more than 30 percent of the funds made 
        available to carry out this subsection for a fiscal 
        year.
            ``(4) Funding.--Not more than 15 percent per fiscal 
        year of amounts made available to carry out this 
        section for a fiscal year shall be made available by 
        the Secretary for making grants under this 
        subsection.''; and
            (4) by adding at the end of subsection (i) (as 
        redesignated by paragraph (2)) the following:
            ``(4) Impaired operator.-- The term `impaired 
        operator' means a person who, while operating a motor 
        vehicle
                    ``(A) has a blood alcohol content of 0.08 
                percent or higher; or
                    ``(B) is under the influence of a 
                controlled substance.
            ``(5) Impaired driving related fatality rate.--The 
        term `impaired driving related fatality rate' means the 
        rate of alcohol related fatalities, as calculated in 
        accordance with regulations which the Administrator of 
        the National Highway Traffic Safety Administration 
        shall prescribe.''.
    (c) NHTSA To Issue Regulations.--Not later than 12 months 
after the date of enactment of this Act, the National Highway 
Traffic Safety Administration shall issue guidelines to the 
States specifying the types and formats of data that States 
should collect relating to drivers who are arrested or 
convicted for violation of laws prohibiting the impaired 
operation of motor vehicles.

SEC. 2008. NHTSA ACCOUNTABILITY.

    (a) In General.--Chapter 4 of title 23, United States Code, 
is amended by adding at the end the following:

``Sec. 412. Agency accountability

    ``(a) Triennial State Management Reviews.--At least once 
every 3 years the Secretary shall conduct a review of each 
State highway safety program. The review shall include a 
management evaluation of all grant programs funded under this 
chapter. The Secretary shall provide review-based 
recommendations on how each State could improve the management 
and oversight of its grant activities and may provide a 
management and oversight plan for such grant programs.
    ``(b) Recommendations Before Submission.--In order to 
provide guidance to State highway safety agencies on matters 
that should be addressed in the goals and initiatives of the 
State highway safety program before the program is submitted 
for review, the Secretary shall provide data-based 
recommendations to each State at least 90 days before the date 
on which the program is to be submitted for approval.
    ``(c) State Program Review.--The Secretary shall--
            ``(1) conduct a program improvement review of a 
        highway safety program under this chapter of a State 
        that does not make substantial progress over a 3-year 
        period in meeting its priority program goals; and
            ``(2) provide technical assistance and safety 
        program requirements to be incorporated in the State 
        highway safety program for any goal not achieved.
    ``(d) Regional Harmonization.--The Secretary and the 
Inspector General of the Department of Transportation shall 
undertake an administrative review of the practices and 
procedures of the management reviews and program reviews of 
State highway safety programs under this chapter conducted by 
the regional offices of the National Highway Traffic Safety 
Administration and prepare a written report of best practices 
and procedures for use by the regional offices in conducting 
such reviews. The report shall be completed within 180 days 
after the date of enactment of this section.
    ``(e) Best Practices Guidelines.--
            ``(1) Uniform guidelines.--The Secretary shall 
        issue uniform management review guidelines and program 
        review guidelines based on the report under subsection 
        (d). Each regional office shall use the guidelines in 
        executing its State administrative review duties under 
        this section.
            ``(2) Publication.--The Secretary shall make 
        publicly available on the Web site (or successor 
        electronic facility) of the Administration the 
        following documents upon their completion:
                    ``(A) The Secretary's management review 
                guidelines and program review guidelines.
                    ``(B) All State highway safety programs 
                submitted under this chapter.
                    ``(C) State annual accomplishment reports.
                    ``(D) The Administration's Summary Report 
                of findings from Management Reviews and 
                Improvement Plans.
            ``(3) Reports to state highway safety agencies.--
        The Secretary may not make publicly available a 
        program, report, or review under paragraph (2) that is 
        directed to a State highway safety agency until after 
        the date on which the program, report, or review is 
        submitted to that agency under this chapter.
    ``(f) GAO Review.--
            ``(1) Analysis.--The Comptroller General shall 
        analyze the effectiveness of the Administration's 
        oversight of traffic safety grants under this chapter 
        by determining the usefulness of the Administration's 
        advice to the States regarding administration and State 
        activities under this chapter, the extent to which the 
        States incorporate the Administration'srecommendations 
into their highway safety programs, and the improvements that result in 
a State's highway safety program that may be attributable to the 
Administration's recommendations.
            ``(2) Report.--Not later than the September 30, 
        2008, the Comptroller General shall submit a report on 
        the results of the analysis to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate..''.
    (b) Clerical Amendment.--The analysis for chapter 4 of such 
title is amended by adding at the end the following:

``412. Agency accountability.''.

SEC. 2009. HIGH VISIBILITY ENFORCEMENT PROGRAM.

    (a) In General.--The Administrator of the National Highway 
Traffic Safety Administration shall establish and administer a 
program under which at least 2 high-visibility traffic safety 
law enforcement campaigns will be carried out for the purposes 
specified in subsection (b) in each of years 2006 through 2009.
    (b) Purpose.--The purpose of each law enforcement campaign 
under this section shall be to achieve either or both of the 
following objectives:
            (1) Reduce alcohol-impaired or drug-impaired 
        operation of motor vehicles.
            (2) Increase use of seat belts by occupants of 
        motor vehicles.
    (c) Advertising.--The Administrator may use, or authorize 
the use of, funds available to carry out this section to pay 
for the development, production, and use of broadcast and print 
media advertising in carrying out traffic safety law 
enforcement campaigns under this section. Consideration shall 
be given to advertising directed at non-English speaking 
populations, including those who listen, read, or watch 
nontraditional media.
    (d) Coordination With States.--The Administrator shall 
coordinate with the States in carrying out the traffic safety 
law enforcement campaigns under this section, including 
advertising funded under subsection (c), with a view to--
            (1) relying on States to provide the law 
        enforcement resources for the campaigns out of funding 
        available under this section and sections 402, 405, 
        406, and 410 of title 23, United States Code; and
            (2) providing out of National Highway Traffic 
        Safety Administration resources most of the means 
        necessary for national advertising and education 
        efforts associated with the law enforcement campaigns.
    (e) Use of Funds.--Funds made available to carry out this 
section may only be used for activities described in 
subsections (a), (c), and (f).
    (f) Annual Evaluation.--The Secretary shall conduct an 
annual evaluation of the effectiveness of campaigns referred to 
in subsection (a).
    (g) State Defined.--The term ``State'' has the meaning such 
term has under section 401 of title 23, United States Code.

SEC. 2010. MOTORCYCLIST SAFETY.

    (a) Authority To Make Grants.--Subject to the requirements 
of this section, the Secretary shall make grants to States that 
adopt and implement effective programs to reduce the number of 
single- and multi-vehicle crashes involving motorcyclists.
    (b) Maintenance of Effort.--No grant may be made to a State 
under this section in a fiscal year unless the State enters 
into such agreements with the Secretary as the Secretary may 
require to ensure that the State will maintain its aggregate 
expenditures from all the other sources for motorcyclist safety 
training programs and motorcyclist awareness programs at or 
above the average level of such expenditures in its 2 fiscal 
years preceding the date of enactment of this Act.
    (c) Allocation.--The amount of a grant made to a State for 
a fiscal year under this section may not be less than $100,000 
and may not exceed 25 percent of the amount apportioned to the 
State for fiscal year 2003 under section 402 of title 23, 
United States Code.
    (d) Grant Eligibility.--
            (1) In general.--A State becomes eligible for a 
        grant under this section by adopting or demonstrating 
        to the satisfaction of the Secretary--
                    (A) for the first fiscal year for which the 
                State will receive a grant under this section, 
                at least 1 of the 6 criteria listed in 
                paragraph (2); and
                    (B) for the second, third, and fourth 
                fiscal years for which the State will receive a 
                grant under this section, at least 2 of the 6 
                criteria listed in paragraph (2).
            (2) Criteria.--The criteria for eligibility for a 
        grant under this section are the following:
                    (A) Motorcycle rider training courses.--An 
                effective motorcycle rider training course that 
                is offered throughout the State, provides a 
                formal program of instruction in accident 
                avoidance and other safety-oriented operational 
                skills to motorcyclists and that may include 
                innovative training opportunities to meet 
                unique regional needs.
                    (B) Motorcyclists awareness program.--An 
                effective statewide program to enhance motorist 
                awareness of the presence of motorcyclists on 
                or near roadways and safe driving practices 
                that avoid injuries to motorcyclists.
                    (C) Reduction of fatalities and crashes 
                involving motorcycles.--A reduction for the 
                preceding calendar year in the number of 
                motorcycle fatalities and the rate of motor 
                vehicle crashes involving motorcycles in the 
                State (expressed as a function of 10,000 
                motorcycle registrations).
                    (D) Impaired driving program.--
                Implementation of a statewide program to reduce 
                impaired driving, including specific measures 
                to reduce impaired motorcycle operation.
                    (E) Reduction of fatalities and accidents 
                involving impaired motorcyclists.--A reduction 
                for the preceding calendar year in the number 
                of fatalities and the rate of reported crashes 
                involving alcohol- or drug-impaired motorcycle 
                operators (expressed as a function of 10,000 
                motorcycle registrations).
                    (F) Fees collected from motorcyclists.--All 
                fees collected by the State from motorcyclists 
                for the purposes of funding motorcycle training 
                and safety programs will be used for motorcycle 
                training and safety programs.
    (e) Eligible Uses.--
            (1) In general.--A State may use funds from a grant 
        under this section only for motorcyclist safety 
        training and motorcyclist awareness programs, 
        including--
                    (A) improvements to motorcyclist safety 
                training curricula;
                    (B) improvements in program delivery of 
                motorcycle training to both urban and rural 
                areas, including--
                            (i) procurement or repair of 
                        practice motorcycles;
                            (ii) instructional materials;
                            (iii) mobile training units; and
                            (iv) leasing or purchasing 
                        facilities for closed-course motorcycle 
                        skill training;
                    (C) measures designed to increase the 
                recruitment or retention of motorcyclist safety 
                training instructors; and
                    (D) public awareness, public service 
                announcements, and other outreach programs to 
                enhance driver awareness of motorcyclists, such 
                as the ``share-the-road'' safety messages 
                developed under subsection (g).
            (2) Suballocations of funds.--An agency of a State 
        that receives a grant under this section may 
        suballocate funds from the grant to a nonprofit 
        organization incorporated in that State to carry out 
        under this section.
    (f) Definitions.--In this section, the following 
definitions apply:
            (1) Motorcyclist safety training.--The term 
        ``motorcyclist safety training'' means a formal program 
        of instruction that--
                    (A) is approved for use in a State by the 
                designated State authority having jurisdiction 
                over motorcyclist safety issues, which may 
                include the State motorcycle safety 
                administrator or a motorcycle advisory council 
                appointed by the Governor of the State.
            (2) Motorcyclist awareness.--The term 
        ``motorcyclist awareness'' means individual or 
        collective awareness of--
                    (A) the presence of motorcycles on or near 
                roadways; and
                    (B) safe driving practices that avoid 
                injury to motorcyclists.
            (3) Motorcyclist awareness program.--The term 
        ``motorcyclist awareness program'' means an 
        informational or public awareness program designed to 
        enhance motorcyclist awareness that is developed by or 
        in coordination with the designated State authority 
        having jurisdiction over motorcyclist safety issues, 
        which may include the State motorcycle safety 
        administrator or a motorcycle advisory council 
        appointed by the Governor of the State.
            (4) State.--The term ``State'' has the same meaning 
        such term has in section 101(a) of title 23, United 
        States Code.
    (g) Share-the-Road Model Language.--Not later than 1 year 
after the date of enactment of this Act, the Secretary, in 
consultation with the Administrator of the National Highway 
Traffic Safety Administration, shall develop and provide to the 
States model language for use in traffic safety education 
courses, driver's manuals, and other driver's training 
materials instructing the drivers of motor vehicles on the 
importance of sharing the roads safely with motorcyclists.

SEC. 2011. CHILD SAFETY AND CHILD BOOSTER SEAT INCENTIVE GRANTS.

    (a) General Authority.--Subject to the requirements of this 
section, the Secretary shall make grants to States that are 
enforcing a law requiring that any child riding in a passenger 
motor vehicle in the State who is too large to be secured in a 
child safety seat be secured in a child restraint that meets 
the requirements prescribed by the Secretary under section 3 of 
Anton's Law (49 U.S.C. 30127 note; 116 Stat. 2772).
    (b) Maintenance of Effort.--No grant may be made to a State 
under this section in a fiscal year unless the State enters 
into such agreements with the Secretary as the Secretary may 
require to ensure that the State will maintain its aggregate 
expenditures from all other sources for child safety seat and 
child restraint programs at or above the average level of such 
expenditures in its 2 fiscal years preceding the date of 
enactment of this Act.
    (c) Federal Share.--The Federal share of the costs of 
activities funded using amounts from grants under this section 
shall not exceed--
            (1) for the first 3 fiscal years for which a State 
        receives a grant under this section, 75 percent; and
            (2) for the fourth fiscal year for which a State 
        receives a grant under this section, 50 percent.
    (d) Use of Grant Amounts.--
            (1) Allocations.--Of the amounts received by a 
        State in grants under this section for a fiscal year 
        not more than 50 percent shall be used to fund programs 
        for purchasing and distributing child safety seats and 
        child restraints to low-income families.
            (2) Remaining amounts.--Amounts received by a State 
        in grants under this section, other than amounts 
        subject to paragraph (1), shall be used to carry out 
        child safety seat and and child restraint programs, 
        including the following:
                    (A) A program to support enforcement of 
                child restraint laws.
                    (B) A program to train child passenger 
                safety professionals, police officers, fire and 
                emergency medical personnel, educators, and 
                parents concerning all aspects of the use of 
                child safety seats and and child restraints.
                    (C) A program to educate the public 
                concerning the proper use and installation of 
                child safety seats and and child restraints.
    (e) Grant Amount.--The amount of a grant to a State for a 
fiscal year under this section may not exceed 25 percent of the 
amount apportioned to the State for fiscal year 2003 under 
section 402 of title 23, United States Code.
    (f) Applicability of Chapter 1.--The provisions contained 
in section 402(d) of such title shall apply to this section.
    (g) Report.--A State that receives a grant under this 
section shall transmit to the Secretary a report documenting 
the manner in which the grant amounts were obligated and 
expended and identifying the specific programs carried out 
using the grant funds. The report shall be in a form prescribed 
by the Secretary and may be combined with other State grant 
reporting requirements under of chapter 4 of title 23, United 
States Code.
    (h) Definitions.--In this section, the following 
definitions apply:
            (1) Child restraint.--The term ``child restraint'' 
        means any product designed to provide restraint to a 
        child (including booster seats and other products used 
        with a lap and shoulder belt assembly) that meets 
        applicable Federal motor vehicle safety standards 
        prescribed by the National Highway Traffic Safety 
        Administration.
            (2) Child safety seat.--The term ``child safety 
        seat'' has the meaning such term has in section 405(f) 
        of title 23, United States Code.
            (3) Passenger motor vehicle.--The term ``passenger 
        motor vehicle'' has the meaning such term has in 
        section 405(f) of such title.
            (4) State.--The term ``State'' has the meaning such 
        term has in section 101(a) of such title.

SEC. 2012. SAFETY DATA.

    (a) In General.--Using funds made available to carry out 
section 403 of title 23, United States Code, for fiscal years 
2005 through 2009, the Secretary shall collect data and compile 
statistics on accidents involving motor vehicles being backed 
up that result in fatalities and injuries and that occur on 
public and nonpublic roads and residential and commercial 
driveways and parking facilities.
    (b) Report.--Not later than January 1, 2009, the Secretary 
shall transmit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a report on accidents described in subsection (a), 
including the data collected and statistics compiled under 
subsection (a) and any recommendations regarding measures to be 
taken to reduce the number of such accidents and the resulting 
fatalities and injuries.

SEC. 2013. DRUG-IMPAIRED DRIVING ENFORCEMENT.

    (a) Illicit Drug.--In this section, the term ``illicit 
drug'' includes substances listed in schedules I through V of 
section 112(e) of the Controlled Substances Act (21 U.S.C. 812) 
not obtained by a legal and valid prescription.
    (b) Duties.--The Secretary shall--
            (1) advise and coordinate with other Federal 
        agencies on how to address the problem of driving under 
        the influence of an illegal drug; and
            (2) conduct research on the prevention, detection, 
        and prosecution of driving under the influence of an 
        illegal drug.
    (c) Report.--
            (1) In general.--Not later than 18 months after the 
        date of enactment of this Act, the Secretary, in 
        cooperation with the National Institutes of Health, 
        shall submit to Congress a report on the problem of 
        drug-impaired driving.
            (2) Contents.--The report shall include, at a 
        minimum, the following:
                    (A) An assessment of methodologies and 
                technologies for measuring driver impairment 
                resulting from use of the most common illicit 
                drugs (including the use of such drugs in 
                combination with alcohol).
                    (B) Effective and efficient methods for 
                training law enforcement personnel, including 
                drug recognition experts, to detect or measure 
                the level of impairment of a driver who is 
                under the influence of an illicit drug by the 
                use of technology or otherwise.
                    (C) A description of the role of drugs as 
                causal factor in traffic crashes and the extent 
                of the problem of drug-impaired driving.
                    (D) A description and assessment of current 
                State and Federal laws relating to drug-
                impaired driving.
                    (E) Recommendations for addressing the 
                problem of drug-impaired driving, including 
                recommendations on levels of impairment.
                    (F) Recommendations for developing a model 
                statute relating to drug-impaired driving.
    (d) Model Statute.--
            (1) In general.--The Secretary shall develop a 
        model statute for States relating to drug-impaired 
        driving.
            (2) Contents.--Based on recommendations and 
        findings contained in the report submitted under 
        subsection (c), the model statute may include--
                    (A) threshold levels of impairment for 
                illicit drugs;
                    (B) practicable methods for detecting the 
                presence of illicit drugs; and
                    (C) penalties for drug impaired driving.
            (3) Date.--The model statute shall be provided to 
        States not later than 1 year after date of submission 
        of the report under subsection (c).
    (e) Research and Development.--Section 403(b) of title 23, 
United States Code, is amended by adding at the end the 
following:
            ``(5) Technology to detect drug use and enable 
        States to efficiently process toxicology evidence.
            ``(6) Research on the effects of illicit drugs and 
        the compound effects of alcohol and illicit drugs on 
        impairment.''.
    (f) Funding.--Out of amounts made available to carry out 
section 403 of title 23, United States Code, for each of fiscal 
years 2006 through 2009, the Secretary shall make available 
$1,200,000 for such fiscal year to carry out this section.

SEC. 2014. FIRST RESPONDER VEHICLE SAFETY PROGRAM.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Secretary, in consultation with the 
Administrator of the National Highway Traffic Safety 
Administration, should--
            (1) develop and implement a comprehensive program 
        to promote compliance with State and local laws 
        intended to increase the safe and efficient operation 
        of first responder vehicles;
            (2) compile a list of best practices by State and 
        local governments to promote compliance with the laws 
        described in paragraph (1);
            (3) analyze State and local laws intended to 
        increase the safe and efficient operation of first 
        responder vehicles; and
            (4) develop model legislation to increase the safe 
        and efficient operation of first responder vehicles.
    (b) Partnerships.--The Secretary may enter into 
partnerships with qualified organizations to carry out this 
section.
    (c) Public Outreach.--The Secretary shall use a variety of 
public outreach strategies to carry out this section, including 
public service announcements, publication of informational 
materials, and posting information on the Internet.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary such sums as may be 
necessary to carry out this section for fiscal year 2006.

SEC. 2015. DRIVER PERFORMANCE STUDY.

    (a) In General.--Using funds made available to carry out 
section 403 of title 23, United States Code, for fiscal year 
2005, the Secretary shall make $1,000,000 available to conduct 
a study on the risks associated with glare to oncoming drivers, 
including increased risks to drivers on 2-lane highways, 
increased risks to drivers over the age of 50, and the overall 
effects of glare on driver performance.
    (b) Report.--Not later than 18 months after the date of 
enactment of this Act, the Secretary shall transmit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the 
study and any recommendations regarding measures to reduce the 
risks associated with glare to oncoming drivers.

SEC. 2016. RURAL STATE EMERGENCY MEDICAL SERVICES OPTIMIZATION PILOT 
                    PROGRAM.

    (a) In General.--From funds made available to carry out 
section 403 of title 23, United States Code, for fiscal year 
2006, the Secretary shall make $1,000,000 available to conduct 
a pilot program for optimizing emergency medical services in a 
rural State.
    (b) Collecting Data.--The pilot program shall focus on 
collecting geo-coded data for highway accidents and resulting 
injuries, analyzing data to develop injury patterns and 
distributions, and improving placement and management of 
emergency medical services resources and personnel.
    (c) Selection.--The Secretary shall enter into an agreement 
with the State of Alaska to conduct the pilot program.
    (d) Report.--Not later than 12 months after the completion 
of the pilot program, the Secretary shall transmit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the results of the 
pilot program and recommendations for application to other 
rural States.

SEC. 2017. OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING.

    (a) Improving Older Driver Safety.--
            (1) In general.--Of the funds made available to 
        carry out section 403 of title 23, United States Code, 
        the Secretary shall allocate $1,700,000 for each of 
        fiscal years 2006 through 2009 to conduct a 
        comprehensive research and demonstration program to 
        improve traffic safety pertaining to older drivers.
            (2) Elements of program.--The program shall--
                    (A) provide information and guidelines to 
                assist older drivers, physicians, and other 
                related medical personnel, families, licensing 
                agencies, enforcement officers, and various 
                public and transit agencies in enhancing the 
                safety of older drivers;
                    (B) improve the scientific basis of medical 
                standards and screenings strategies used in the 
                licensing of all drivers in a non-
                discriminatory manner;
                    (C) conduct field tests to assess the 
                safety benefits and mobility impacts of 
                different driver licensing strategies and 
                driver assessment and rehabilitation methods;
                    (D) assess the value and improve the safety 
                potential of driver retraining courses of 
                particular benefit to older drivers; and
                    (E) conduct other activities to accomplish 
                the objectives of this section.
            (3) Formulation of plan.--After consultation with 
        affected parties, the Secretary shall formulate an 
        older driver traffic safety plan to guide the design 
        and implementation of the program.
            (4) Submission of plan to congress.--Not later than 
        1 year after the date of enactment of this Act, the 
        Secretary shall submit the plan to the Committee on 
        Transportation and Infrastructure House of 
        Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate.
    (b) Law Enforcement Training.--
            (1) Requirement for program.--The Secretary shall 
        carry out a program to provide guidance and support to 
        law enforcement agencies in police chase techniques 
        that are consistent with the police chase guidelines 
        issued by the International Association of Chiefs of 
        Police.
            (2) Amount for program.--Of the funds made 
        available to carry out section 403 of title 23, United 
        States Code, the Secretary shall allocate $500,000 in 
        each of fiscal years 2006 through 2009 to carry out 
        this subsection.

SEC. 2018. SAFE INTERSECTIONS.

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

``Sec. 39. Traffic signal preemption transmitters

    ``(a) Offenses.--
            ``(1) Sale.--Whoever, in or affecting interstate or 
        foreign commerce, knowingly sells a traffic signal 
        preemption transmitter to a nonqualifying user shall be 
        fined under this title, or imprisoned not more than 1 
        year, or both.
            ``(2) Use.--Whoever, in or affecting interstate or 
        foreign commerce, being a nonqualifying user makes 
        unauthorized use of a traffic signal preemption 
        transmitter shall be fined under this title, or 
        imprisoned not more than 6 months, or both.
    ``(b) Definitions.--In this section, the following 
definitions apply:
            ``(1) Traffic signal preemption transmitter.--The 
        term `traffic signal preemption transmitter' means any 
        mechanism that can change or alter a traffic signal's 
        phase time or sequence.
            ``(2) Nonqualifying user.--The term `nonqualifying 
        user' means a person who uses a traffic signal 
        preemption transmitter and is not acting on behalf of a 
        public agency or private corporation authorized by law 
        to provide fire protection, law enforcement, emergency 
        medical services, transit services, maintenance, or 
        other services for a Federal, State, or local 
        government entity, but does not include a person using 
        a traffic signal preemption transmitter for classroom 
        or instructional purposes.''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by adding at the end the following:

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

SEC. 2019. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE TECHNICAL 
                    CORRECTION.

    Section 404(d) of title 23, United States Code, is amended 
by striking ``Commerce'' and inserting ``Transportation''.

SEC. 2020. PRESIDENTIAL COMMISSION ON ALCOHOL-IMPAIRED DRIVING.

    (a) Findings.--Congress finds that--
            (1) there has been considerable progress over the 
        past 25 years in reducing the number and rate of 
        alcohol-related highway facilities;
            (2) the National Highway Traffic Safety 
        Administration projects that fatalities in alcohol-
        related crashes declined in 2003 for the 2nd year in a 
        row;
            (3) in spite of this progress, an estimated 17,013 
        Americans died in 2003, in alcohol-related crashes;
            (4) these fatalities comprise 40 percent of the 
        annual total highway fatalities;
            (5) about 250,000 are injured each year in alcohol-
        related crashes;
            (6) the past 2 years of decreasing alcohol-related 
        fatalities follows a 3-year increase;
            (7) alcohol-impaired driving is the Nation's most 
        frequently committed violent crime;
            (8) the annual cost of alcohol-related crashes is 
        over $100,000,000,000, including $9,000,000,000 in 
        costs to employers;
            (9) a Presidential Commission on Alcohol Impaired 
        Driving in 1982 and 1983 helped to lead to substantial 
        progress on this issue; and
            (10) these facts point to the need to renew the 
        national commitment to preventing these deaths and 
        injuries.
    (b) Sense of the Congress.--It is the sense of Congress 
that, in an effort to further change the culture of alcohol-
impaired driving on our Nation's highways, the President should 
consider establishing a Presidential Commission on Alcohol-
Impaired Driving--
            (1) comprised of representatives of--
                    (A) State and local governments, including 
                State legislators;
                    (B) law enforcement;
                    (C) traffic safety experts, including 
                researchers;
                    (D) victims of alcohol-related crashes;
                    (E) affected industries, including the 
                alcohol, insurance, motorcycle, and auto 
                industries;
                    (F) the business community;
                    (G) labor;
                    (H) the medical community;
                    (I) public health; and
                    (J) Members of Congress; and
            (2) that not later than September 30, 2006, would--
                    (A) conduct a full examination of alcohol-
                impaired driving issues; and
                    (B) make recommendations for a broad range 
                of policy and program changes that would serve 
                to further reduce the level of deaths and 
                injuries caused by alcohol impaired driving.

SEC. 2021. SENSE OF THE CONGRESS IN SUPPORT OF INCREASED PUBLIC 
                    AWARENESS OF BLOOD ALCOHOL CONCENTRATION LEVELS AND 
                    DANGERS OF ALCOHOL-IMPAIRED DRIVING.

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

SEC. 2022. EFFECTIVE DATE.

    Sections 2002 through 2007 of this title (and the 
amendments and repeals made by such sections) shall take effect 
October 1, 2005.

                    TITLE III--PUBLIC TRANSPORTATION

SEC. 3001. SHORT TITLE.

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

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

    (a) Amendments to Title 49.--Except as otherwise 
specifically provided, whenever in this title an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, 
a section or other provision of law, the reference shall be 
considered to be made to a section or other provision of title 
49, United States Code.
    (b) Updated Terminology.--Chapter 53 is amended--
            (1) in the chapter heading by striking ``MASS'' and 
        inserting ``PUBLIC'';
            (2) in section 5310(h) by striking ``Mass'' and 
        inserting ``Public'';
            (3) in the subsection heading for section 5331(b) 
        by striking ``Mass'' and inserting ``Public''; and
            (4) by striking ``mass'' each place the term 
        appears before ``transportation'' and inserting 
        ``public'', except in sections 5301(f), 5302(a)(7), 
        5315, and 5323(a)(1).
    (c) Table of Chapters.--The table of chapters for subtitle 
III is amended in the item relating to chapter 53 by striking 
``Mass'' and inserting ``Public''.

SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

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

SEC. 3004. DEFINITIONS.

    (a) Lead-In.--Section 5302(a) is amended in the matter 
preceding paragraph (1) by striking ``In this chapter'' and 
inserting ``Except as otherwise specifically provided, in this 
chapter''.
    (b) Capital Project.--Section 5302(a)(1) is amended--
            (1) in subparagraph (G) by inserting 
        ``construction, renovation, and improvement of 
        intercity bus and intercity rail stations and 
        terminals,'' before ``and the renovation and 
        improvement of historic transportation facilities,'';
            (2) in subparagraph (G)(ii) by inserting ``(other 
        than an intercity bus station or terminal)'' after 
        ``commercial revenue-producing facility'';
            (3) in subparagraph (H) by striking ``or'' at the 
        end;
            (4) in subparagraph (I) by striking the period at 
        the end and inserting a semicolon; and
            (5) by adding at the end the following:
                    ``(J) crime prevention and security--
                            ``(i) including--
                                    ``(I) projects to refine 
                                and develop security and 
                                emergency response plans;
                                    ``(II) projects aimed at 
                                detecting chemical and 
                                biological agents in public 
                                transportation;
                                    ``(III) the conduct of 
                                emergency response drills with 
                                public transportation agencies 
                                and local first response 
                                agencies; and
                                    ``(IV) security training 
                                for public transportation 
                                employees; but
                            ``(ii) excluding all expenses 
                        related to operations, other than such 
                        expenses incurred in conducting 
                        activities described in clauses 
                        (i)(III) and (i)(IV);
                    ``(K) establishing a debt service reserve, 
                made up of deposits with a bondholder's 
                trustee, to ensure the timely payment of 
                principal and interest on bonds issued by a 
                grant recipient to finance an eligible project 
                under this chapter; or
                    ``(L) mobility management--
                            ``(i) consisting of short-range 
                        planning and management activities and 
                        projects for improving coordination 
                        among public transportation and other 
                        transportation service providers 
                        carried out by a recipient or 
                        subrecipient through an agreement 
                        entered into with a person, including a 
                        governmental entity, under this chapter 
                        (other than section 5309); but
                            ``(ii) excluding operating public 
                        transportation services.''.
    (c) Individual With a Disability.--Section 5302(a)(5) is 
amended--
            (1) in the paragraph heading by striking 
        ``Handicapped individual'' and inserting ``Individual 
        with a disability''; and
            (2) by striking ``handicapped individual'' and 
        inserting ``individual with a disability''.
    (d) Mass Transportation.--Section 5302(a)(7) is amended to 
read as follows:
            ``(7) Mass transportation.--The term `mass 
        transportation' means public transportation.''.
    (e) Public Transportation.--Section 5302(a)(10) is amended 
to read as follows:
            ``(10) Public transportation.--The term `public 
        transportation' means transportation by a conveyance 
        that provides regular and continuing general or special 
        transportation to the public, but does not include 
        schoolbus, charter, or intercity bus transportation or 
        intercity passenger rail transportation provided by the 
        entity described in chapter 243 (or a successor to such 
        entity).''.
    (f) Urbanized Area.--Section 5302(a)(17) is amended to read 
as follows:
            ``(17) Urbanized area.--The term `urbanized area' 
        means an area encompassing a population of not less 
        than 50,000 people that has been defined and designated 
        in the most recent decennial census as an `urbanized 
        area' by the Secretary of Commerce.''.
    (g) Authority To Modify Definition.--Section 5302(b) is 
amended--
            (1) in the subsection heading by striking 
        ``Handicapped Individual'' and inserting ``Individual 
        With a Disability''; and
            (2) by striking ``handicapped individual'' and 
        inserting ``individual with a disability''.

SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING.

    (a) In General.--Section 5303 is amended to read as 
follows:

``Sec. 5303. Metropolitan transportation planning

    ``(a) Policy.--It is in the national interest to--
            ``(1) encourage and promote the safe and efficient 
        management, operation, and development of surface 
        transportation systems that will serve the mobility 
        needs of people and freight and foster economic growth 
        and development within and between States and urbanized 
        areas, while minimizing transportation-related fuel 
        consumption and air pollution through metropolitan and 
        statewide transportation planning processes identified 
        in this chapter; and
            ``(2) encourage the continued improvement and 
        evolution of the metropolitan and statewide 
        transportation planning processes by metropolitan 
        planning organizations, State departments of 
        transportation, and public transit operators as guided 
        by the planning factors identified in subsection (h) 
        and section 5304(d).
    ``(b) Definitions.--In this section and section 5304, the 
following definitions apply:
            ``(1) Metropolitan planning area.--The term 
        `metropolitan planning area' means the geographic area 
        determined by agreement between the metropolitan 
        planning organization for the area and the Governor 
        under subsection (e).
            ``(2) Metropolitan planning organization.--The term 
        `metropolitan planning organization' means the policy 
        board of an organization created as a result of the 
        designation process in subsection (d).
            ``(3) Nonmetropolitan area.--The term 
        `nonmetropolitan area' means a geographic area outside 
        a designated metropolitan planning area.
            ``(4) Nonmetropolitan local official.--The term 
        `nonmetropolitan local official' means elected and 
        appointed officials of general purpose local government 
        in a nonmetropolitan area with responsibility for 
        transportation.
            ``(5) TIP.--The term `TIP' means a transportation 
        improvement program developed by a metropolitan 
        planning organization under subsection (j).
            ``(6) Urbanized area.--The term `urbanized area' 
        means a geographic area with a population of 50,000 or 
        more, as designated by the Bureau of the Census.
    ``(c) General Requirements.--
            ``(1) Development of long-range plans and tips.--To 
        accomplish the objectives in subsection (a), 
        metropolitan planning organizations designated under 
        subsection (d), in cooperation with the State and 
        public transportation operators, shall develop long-
        range transportation plans and transportation 
        improvement programs for metropolitan planning areas of 
        the State.
            ``(2) Contents.--The plans and TIPs for each 
        metropolitan area shall provide for the development and 
        integrated management and operation of transportation 
        systems and facilities (including accessible pedestrian 
        walkways and bicycle transportation facilities) that 
        will function as an intermodal transportation system 
        for the metropolitan planning area and as an integral 
        part of an intermodal transportation system for the 
        State and the United States.
            ``(3) Process of development.--The process for 
        developing the plans and TIPs shall provide for 
        consideration of all modes of transportation and shall 
        be continuing, cooperative, and comprehensive to the 
        degree appropriate, based on the complexity of the 
        transportation problems to be addressed.
    ``(d) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation 
        planning process required by this section, a 
        metropolitan planning organization shall be designated 
        for each urbanized area with a population of more than 
        50,000 individuals--
                    ``(A) by agreement between the Governor and 
                units of general purpose local government that 
                together represent at least 75 percent of the 
                affected population (including the largest 
                incorporated city (based on population) as 
                named by the Bureau of the Census); or
                    ``(B) in accordance with procedures 
                established by applicable State or local law.
            ``(2) Structure.--Each metropolitan planning 
        organization that serves an area designated as a 
        transportation management area, when designated or 
        redesignated under this subsection, shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that 
                administer or operate major modes of 
                transportation in the metropolitan area; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--
        Nothing in this subsection shall be construed to 
        interfere with the authority, under any State law in 
        effect on December 18, 1991, of a public agency with 
        multimodal transportation responsibilities to--
                    ``(A) develop the plans and TIPs for 
                adoption by a metropolitan planning 
                organization; and
                    ``(B) develop long-range capital plans, 
                coordinate transit services and projects, and 
                carry out other activities pursuant to State 
                law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this 
        subsection or any other provision of law shall remain 
        in effect until the metropolitan planning organization 
        is redesignated under paragraph (5).
            ``(5) Redesignation procedures.--A metropolitan 
        planning organization may be redesignated by agreement 
        between the Governor and units of general purpose local 
        government that together represent at least 75 percent 
        of the existing planning area population (including the 
        largest incorporated city (based on population) as 
        named by the Bureau of the Census) as appropriate to 
        carry out this section.
            ``(6) Designation of more than 1 metropolitan 
        planning organization.--More than 1 metropolitan 
        planning organization may bedesignated within an 
existing metropolitan planning area only if the Governor and the 
existing metropolitan planning organization determine that the size and 
complexity of the existing metropolitan planning area make designation 
of more than 1 metropolitan planning organization for the area 
appropriate.
    ``(e) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this 
        section, the boundaries of a metropolitan planning area 
        shall be determined by agreement between the 
        metropolitan planning organization and the Governor.
            ``(2) Included area.--Each metropolitan planning 
        area--
                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected 
                to become urbanized within a 20-year forecast 
                period for the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of 
                the Census.
            ``(3) Identification of new urbanized areas within 
        existing planning area boundaries.--The designation by 
        the Bureau of the Census of new urbanized areas within 
        an existing metropolitan planning area shall not 
        require the redesignation of the existing metropolitan 
        planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--Notwithstanding paragraph (2), in the 
        case of an urbanized area designated as a nonattainment 
area for ozone or carbon monoxide under the Clean Air Act (42 U.S.C. 
7401 et seq.) as of the date of enactment of the Federal Public 
Transportation Act of 2005, the boundaries of the metropolitan planning 
area in existence as of such date of enactment shall be retained; 
except that the boundaries may be adjusted by agreement of the Governor 
and affected metropolitan planning organizations in the manner 
described in subsection (d)(5).
            ``(5) New metropolitan planning areas in 
        nonattainment.--In the case of an urbanized area 
        designated after the date of enactment of the Federal 
        Public Transportation Act of 2005 as a nonattainment 
        area for ozone or carbon monoxide, the boundaries of 
        the metropolitan planning area--
                    ``(A) shall be established in the manner 
                described in subsection (d)(1);
                    ``(B) shall encompass the areas described 
                in paragraph (2)(A);
                    ``(C) may encompass the areas described in 
                paragraph (2)(B); and
                    ``(D) may address any nonattainment area 
                identified under the Clean Air Act for ozone or 
                carbon monoxide.
    ``(f) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage 
        each Governor with responsibility for a portion of a 
        multistate metropolitan area and the appropriate 
        metropolitan planning organizations to provide 
        coordinated transportation planning for the entire 
        metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress 
        is granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, 
                not in conflict with any law of the United 
                States, for cooperative efforts and mutual 
                assistance in support of activities authorized 
                under this section as the activities pertain to 
                interstate areas and localities within the 
                States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine 
                desirable for making the agreements and 
                compacts effective.
            ``(3) Lake tahoe region.--
                    ``(A) Definition.--In this paragraph, the 
                term `Lake Tahoe region' has the meaning given 
                the term `region' in subdivision (a) of article 
                II of the Tahoe Regional Planning Compact, as 
                set forth in the first section of Public Law 
                96-551 (94 Stat. 3234).
                    ``(B) Transportation planning process.--The 
                Secretary shall--
                            ``(i) establish with the Federal 
                        land management agencies that have 
                        jurisdiction over land in the Lake 
                        Tahoe region a transportation planning 
                        process for the region; and
                            ``(ii) coordinate the 
                        transportation planning process with 
                        the planning process required of State 
                        and local governments under this 
                        section and section 5304.
                    ``(C) Interstate compact.--
                            ``(i) In general.--Subject to 
                        clause (ii), and notwithstanding 
                        subsection (b), to carry out the 
                        transportation planning process 
                        required by this section, the consent 
                        of Congress is granted to the States of 
                        California and Nevada to designate a 
                        metropolitan planning organization for 
                        the Lake Tahoe region, by agreement 
                        between the Governors of the States of 
                        California and Nevada and units of 
                        general purpose local government that 
                        together represent at least 75 percent 
                        of the affected population (including 
                        the central city or cities (as defined 
                        by the Bureau of the Census)), or in 
                        accordance with procedures established 
                        by applicable State or local law.
                            ``(ii) Involvement of federal land 
                        management agencies.--
                                    ``(I) Representation.--The 
                                policy board of a metropolitan 
                                planning organization 
                                designated under clause (i) 
                                shall include a representative 
                                of each Federal land management 
                                agency that has jurisdiction 
                                over land in the Lake Tahoe 
                                region.
                                    ``(II) Funding.--In 
                                addition to funds made 
                                available to the metropolitan 
                                planning organization for the 
                                Lake Tahoe region under other 
                                provisions of this chapter and 
                                title 23, 1 percent of the 
                                funds allocated under section 
                                202 of title 23 shall be used 
                                to carry out the transportation 
                                planning process for the Lake 
                                Tahoe region under this 
                                subparagraph.
                    ``(D) Activities.--Highway projects 
                included in transportation plans developed 
                under this paragraph--
                            ``(i) shall be selected for funding 
                        in a manner that facilitates the 
                        participation of the Federal land 
                        management agencies that have 
                        jurisdiction over land in the Lake 
                        Tahoe region; and
                            ``(ii) may, in accordance with 
                        chapter 2 of title 23, be funded using 
                        funds allocated under section 202 of 
                        such title.
            ``(4) Reservation of rights.--The right to alter, 
        amend, or repeal interstate compacts entered into under 
        this subsection is expressly reserved.
    ``(g) MPO Consultation in Plan and TIP Coordination.--
            ``(1) Nonattainment areas.--If more than 1 
        metropolitan planning organization has authority within 
        a metropolitan area or an area which isdesignated as a 
nonattainment area for ozone or carbon monoxide under the Clean Air 
Act, each metropolitan planning organization shall consult with the 
other metropolitan planning organizations designated for such area and 
the State in the coordination of plans and TIPs required by this 
section.
            ``(2) Transportation improvements located in 
        multiple mpos.--If a transportation improvement, funded 
        from the Highway Trust Fund or authorized under this 
        chapter, is located within the boundaries of more than 
        1 metropolitan planning area, the metropolitan planning 
        organizations shall coordinate plans and TIPs regarding 
        the transportation improvement.
            ``(3) Relationship with other planning officials.--
        The Secretary shall encourage each metropolitan 
        planning organization to consult with officials 
        responsible for other types of planning activities that 
        are affected by transportation in the area (including 
        State and local planned growth, economic development, 
        environmental protection, airport operations, and 
        freight movements) or to coordinate its planning 
        process, to the maximum extent practicable, with such 
        planning activities. Under the metropolitan planning 
        process, transportation plans and TIPs shall be 
        developed with due consideration of other related 
        planning activities within the metropolitan area, and 
        the process shall provide for the design and delivery 
        of transportation services within the metropolitan area 
        that are provided by--
                    ``(A) recipients of assistance under this 
                chapter;
                    ``(B) governmental agencies and nonprofit 
                organizations (including representatives of the 
                agencies and organizations) that receive 
                Federal assistance from a source other than the 
                Department of Transportation to provide 
                nonemergency transportation services; and
                    ``(C) recipients of assistance under 
                section 204 of title 23.
    ``(h) Scope of Planning Process.--
            ``(1) In general.--The metropolitan planning 
        process for a metropolitan planning area under this 
        section shall provide for consideration of projects and 
        strategies that will--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling 
                global competitiveness, productivity, and 
                efficiency;
                    ``(B) increase the safety of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(C) increase the security of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(D) increase the accessibility and 
                mobility of people and for freight;
                    ``(E) protect and enhance the environment, 
                promote energy conservation, improve the 
                quality of life, and promote consistency 
                between transportation improvements and State 
                and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and 
                connectivity of the transportation system, 
                across and between modes, for people and 
                freight;
                    ``(G) promote efficient system management 
                and operation; and
                    ``(H) emphasize the preservation of the 
                existing transportation system.
            ``(2) Failure to consider factors.--The failure to 
        consider any factor specified in paragraph (1) shall 
        not be reviewable by any court under this chapter, 
        title 23, subchapter II of chapter 5 of title 5, or 
        chapter 7 of title 5 in any matter affecting a 
        transportation plan, a TIP, a project or strategy, or 
        the certification of a planning process.
    ``(i) Development of Transportation Plan.--
            ``(1) In general.--Each metropolitan planning 
        organization shall prepare a transportation plan for 
        its metropolitan planning area in accordance with the 
        requirements of this subsection. The metropolitan 
        planning organization shall prepare and update such 
        plan every 4 years (or more frequently, if the 
        metropolitan planning organization elects to update 
        more frequently) in the case of each of the following:
                    ``(A) Any area designated as nonattainment, 
                as defined in section 107(d) of the Clean Air 
                Act (42 U.S.C. 7407(d)).
                    ``(B) Any area that was nonattainment and 
                subsequently designated to attainment in 
                accordance with section 107(d)(3) of that Act 
                (42 U.S.C. 7407(d)(3)) and that is subject to a 
                maintenance plan under section 175A of that Act 
                (42 U.S.C. 7505a).

        In the case of any other area required to have a 
        transportation plan in accordance with the requirements 
        of this subsection, the metropolitan planning 
        organization shall prepare and update such plan every 5 
        years unless the metropolitan planning organization 
        elects to update more frequently.
            ``(2) Transportation plan.--A transportation plan 
        under this section shall be in a form that the 
        Secretary determines to be appropriate and shall 
        contain, at a minimum, the following:
                    ``(A) Identification of transportation 
                facilities.--An identification of 
                transportation facilities (including major 
                roadways, transit, multimodal and intermodal 
                facilities, and intermodal connectors) that 
                should function as an integrated metropolitan 
                transportation system, giving emphasis to those 
                facilities that serve important national and 
                regional transportation functions. In 
                formulating the transportation plan, the 
                metropolitan planning organization shall 
                consider factors described in subsection (h) as 
                such factors relate to a 20-year forecast 
                period.
                    ``(B) Mitigation activities.--
                            ``(i) In general.--A long-range 
                        transportation plan shall include a 
                        discussion of types of potential 
                        environmental mitigation activities and 
                        potential areas to carry out these 
                        activities, including activities that 
                        may have the greatest potential to 
                        restore and maintain the environmental 
                        functions affected by the plan.
                            ``(ii) Consultation.--The 
                        discussion shall be developed in 
                        consultation with Federal, State, and 
                        tribal wildlife, land management, and 
                        regulatory agencies.
                    ``(C) Financial plan.--A financial plan 
                that demonstrates how the adopted 
                transportation plan can be implemented, 
                indicates resources from public and private 
                sources that are reasonably expected to be made 
                available to carry out the plan, and recommends 
                any additional financing strategies for needed 
                projects and programs. The financial plan may 
                include, for illustrative purposes, additional 
                projects that would be included in the adopted 
                transportation plan if reasonable additional 
                resources beyond those identified in the 
                financial plan were available. For the purpose 
                of developing the transportation plan, the 
                metropolitan planning organization, transit 
                operator, and State shall cooperatively develop 
                estimates of funds that will be available to 
                support plan implementation.
                    ``(D) Operational and management 
                strategies.--Operational and management 
                strategies to improve the performance of 
                existing transportation facilities to relieve 
                vehicular congestion and maximize the safety 
                and mobility of people and goods.
                    ``(E) Capital investment and other 
                strategies.--Capital investment and other 
                strategies to preserve the existing and 
                projected future metropolitan transportation 
                infrastructure and provide for multimodal 
                capacity increases based on regional priorities 
                and needs.
                    ``(F) Transportation and transit 
                enhancement activities.--Proposed 
                transportation and transit enhancement 
                activities.
            ``(3) Coordination with clean air act agencies.--In 
        metropolitan areas which are in nonattainment for ozone 
        or carbon monoxide under the Clean Air Act, the 
        metropolitan planning organization shall coordinate the 
        development of a transportation plan with the process 
        for development of the transportation control measures 
        of the State implementation plan required by the Clean 
        Air Act.
            ``(4) Consultation.--
                    ``(A) In general.--In each metropolitan 
                area, the metropolitan planning organization 
                shall consult, as appropriate, with State and 
                local agencies responsible for land use 
                management, natural resources, environmental 
                protection, conservation, and historic 
                preservation concerning the development of a 
                long-range transportation plan.
                    ``(B) Issues.--The consultation shall 
                involve, as appropriate--
                            ``(i) comparison of transportation 
                        plans with State conservation plans or 
                        maps, if available; or
                            ``(ii) comparison of transportation 
                        plans to inventories of natural or 
                        historic resources, if available.
            ``(5) Participation by interested parties.--
                    ``(A) In general.--Each metropolitan 
                planning organization shall provide citizens, 
                affected public agencies, representatives of 
                public transportation employees, freight 
                shippers, providers of freight transportation 
                services, private providers of transportation, 
                representatives of users of public 
                transportation, representatives of users of 
                pedestrian walkways and bicycle transportation 
                facilities, representatives of the disabled, 
                and other interested parties with a reasonable 
                opportunity to comment on the transportation 
                plan.
                    ``(B) Contents of participation plan.--A 
                participation plan--
                            ``(i) shall be developed in 
                        consultation with all interested 
                        parties; and
                            ``(ii) shall provide that all 
                        interested parties have reasonable 
                        opportunities to comment on the 
                        contents of the transportation plan.
                    ``(C) Methods.--In carrying out 
                subparagraph (A), the metropolitan planning 
                organization shall, to the maximum extent 
                practicable--
                            ``(i) hold any public meetings at 
                        convenient and accessible locations and 
                        times;
                            ``(ii) employ visualization 
                        techniques to describe plans; and
                            ``(iii) make public information 
                        available in electronically accessible 
                        format and means, such as the World 
                        Wide Web, as appropriate to afford 
                        reasonable opportunity for 
                        consideration of public information 
                        under subparagraph (A).
            ``(6) Publication.--A transportation plan involving 
        Federal participation shall be published or otherwise 
        made readily available by the metropolitan planning 
        organization for public review, including (to the 
        maximum extent practicable) in electronically 
        accessible formats and means, such as the World Wide 
        Web, approved by the metropolitan planning organization 
        and submitted for information purposes to the Governor 
        at such times and in such manner as the Secretary shall 
        establish.
            ``(7) Selection of projects from illustrative 
        list.--Notwithstanding paragraph (2)(C), a State or 
        metropolitan planning organization shall not be 
        required to select any project from the illustrative 
        list of additional projects included in the financial 
        plan under paragraph (2)(C).
    ``(j) Metropolitan Tip.--
            ``(1) Development.--
                    ``(A) In general.--In cooperation with the 
                State and any affected public transportation 
                operator, the metropolitan planning 
                organization designated for a metropolitan area 
                shall develop a TIP for the area for which the 
                organization is designated.
                    ``(B) Opportunity for comment.--In 
                developing the TIP, the metropolitan planning 
                organization, in cooperation with the State and 
                any affected public transportation operator, 
                shall provide an opportunity for participation 
                by interested parties in the development of the 
                program, in accordance with subsection (i)(5).
                    ``(C) Funding estimates.--For the purpose 
                of developing the TIP, the metropolitan 
                planning organization, public transportation 
                agency, and State shall cooperatively develop 
                estimates of funds that are reasonably expected 
                to be available to support program 
                implementation.
                    ``(D) Updating and approval.--The TIP shall 
                be updated at least once every 4 years and 
                shall be approved by the metropolitan planning 
                organization and the Governor.
            ``(2) Contents.--
                    ``(A) Priority list.--The TIP shall include 
                a priority list of proposed federally supported 
                projects and strategies to be carried out 
                within each 4-year period after the initial 
                adoption of the TIP.
                    ``(B) Financial plan.--The TIP shall 
                include a financial plan that--
                            ``(i) demonstrates how the TIP can 
                        be implemented;
                            ``(ii) indicates resources from 
                        public and private sources that are 
                        reasonably expected to be available to 
                        carry out the program;
                            ``(iii) identifies innovative 
                        financing techniques to finance 
                        projects, programs, and strategies; and
                            ``(iv) may include, for 
                        illustrative purposes, additional 
                        projects that would be included in the 
                        approved TIP if reasonable additional 
                        resources beyond those identified in 
                        the financial plan were available.
                    ``(C) Descriptions.--Each project in the 
                TIP shall include sufficient descriptive 
                material (such as type of work, termini, 
                length, and other similar factors) to identify 
                the project or phase of the project.
            ``(3) Included projects.--
                    ``(A) Projects under this chapter and title 
                23.--A TIP developed under this subsection for 
                a metropolitan area shall include the projects 
                within the area that are proposed for funding 
                under this chapter and chapter 1 of title 23.
                    ``(B) Projects under chapter 2 of title 
                23.--
                            ``(i) Regionally significant 
                        projects.--Regionally significant 
                        projects proposed for funding under 
                        chapter 2 of title 23 shall be 
                        identified individually in the 
                        transportation improvement program.
                            ``(ii) Other projects.--Projects 
                        proposed for funding under chapter 2 of 
                        title 23 that are not determined to be 
                        regionally significant shall be grouped 
                        in 1 line item or identified 
                        individually in the transportation 
                        improvement program.
                    ``(C) Consistency with long-range 
                transportation plan.--Each project shall be 
                consistent with the long-range transportation 
                plan developed under subsection (i) for the 
                area.
                    ``(D) Requirement of anticipated full 
                funding.--The program shall include a project, 
                or an identified phase of a project, only if 
                full funding can reasonably be anticipated to 
                be available for the project within the time 
                period contemplated for completion of the 
                project.
            ``(4) Notice and comment.--Before approving a TIP, 
        a metropolitan planning organization, in cooperation 
        with the State and any affected public transportation 
        operator, shall provide an opportunity for 
        participation by interested parties in the development 
        of the program, in accordance with subsection (i)(5).
            ``(5) Selection of projects.--
                    ``(A) In general.--Except as otherwise 
                provided in subsection (k)(4) and in addition 
                to the TIP development required under paragraph 
                (1), the selection of federally funded projects 
                in metropolitan areas shall be carried out, 
                from the approved TIP--
                            ``(i) by--
                                    ``(I) in the case of 
                                projects under title 23, the 
                                State; and
                                    ``(II) in the case of 
                                projects under this chapter, 
                                the designated recipients of 
                                public transportation funding; 
                                and
                            ``(ii) in cooperation with the 
                        metropolitan planning organization.
                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, 
                action by the Secretary shall not be required 
                to advance a project included in the approved 
                TIP in place of another project in the program.
            ``(6) Selection of projects from illustrative 
        list.--
                    ``(A) No required selection.--
                Notwithstanding paragraph (2)(B)(iv), a State 
                or metropolitan planning organization shall not 
                be required to select any project from the 
                illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv).
                    ``(B) Required action by the secretary.--
                Action by the Secretary shall be required for a 
                State or metropolitan planning organization to 
                select any project from the illustrative list 
                of additional projects included in the 
                financial plan under paragraph (2)(B)(iv) for 
                inclusion in an approved TIP.
            ``(7) Publication.--
                    ``(A) Publication of tips.--A TIP involving 
                Federal participation shall be published or 
                otherwise made readily available by the 
                metropolitan planning organization for public 
                review.
                    ``(B) Publication of annual listings of 
                projects.--An annual listing of projects, 
                including investments in pedestrian walkways 
                and bicycle transportation facilities, for 
                which Federal funds have been obligated in the 
                preceding year shall be published or otherwise 
                made available by the cooperative effort of the 
                State, transit operator, and metropolitan 
                planning organization for public review. The 
                listing shall be consistent with the categories 
                identified in the TIP.
                    ``(C) Rulemaking.--Not later than 180 days 
                after the date of enactment of the Federal 
                Public Transportation Act of 2005, the 
                Secretary shall issue regulations setting 
                standards for the listing required by 
                subparagraph (B) and specifying the types of 
                data to be included in such list, including 
                sufficient information about each project to 
                identify its type, location, and amount 
                obligated.
    ``(k) Transportation Management Areas.--
            ``(1) Identification and designation.--
                    ``(A) Required identification.--The 
                Secretary shall identify as a transportation 
                management area each urbanized area (as defined 
                by the Bureau of the Census) with a population 
                of over 200,000 individuals.
                    ``(B) Designations on request.--The 
                Secretary shall designate any additional area 
                as a transportation management area on the 
                request of the Governor and the metropolitan 
                planning organization designated for the area.
            ``(2) Transportation plans.--In a metropolitan 
        planning area serving a transportation management area, 
        transportation plans shall be based on a continuing and 
        comprehensive transportation planning process carried 
        out by the metropolitan planning organization in 
        cooperation with the State and public transportation 
        operators.
            ``(3) Congestion management process.--Within a 
        metropolitan planning area serving a transportation 
        management area, the transportation planning process 
        under this section shall address congestion management 
        through a process that provides for effective 
        management and operation, based on a cooperatively 
        developed and implemented metropolitan-wide strategy, 
        of new and existing transportation facilities eligible 
        for funding under this chapter and title 23 through the 
        use of travel demand reduction and operational 
        management strategies. The Secretary shall establish an 
        appropriate phase-in schedule for compliance with the 
        requirements of this section but no sooner than one 
        year after the identification of a transportation 
        management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All federally funded 
                projects carried out within the boundaries of a 
                metropolitan planning area serving a 
                transportation management area under title 23 
                (excluding projects carried out on the National 
                Highway System and projects carried out under 
                the bridge program or the Interstate 
                maintenance program) or under this chapter 
                shall be selected for implementation from the 
                approved TIP by the metropolitan planning 
                organization designated for the area in 
                consultation with the State and any affected 
                public transportation operator.
                    ``(B) National highway system projects.--
                Projects carried out within the boundaries of a 
                metropolitan planning area serving a 
                transportation management area on the National 
                Highway System and projects carried out within 
                such boundaries under the bridge program or the 
                Interstate maintenance program under title 23 
                shall be selected for implementation from the 
                approved TIP by the State in cooperation with 
                the metropolitan planning organization 
                designated for the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) ensure that the metropolitan 
                        planning process of a metropolitan 
                        planning organization serving a 
                        transportation management area is being 
                        carried out in accordance with 
                        applicable provisions of Federal law; 
                        and
                            ``(ii) subject to subparagraph (B), 
                        certify, not less often than once every 
                        4 years, that the requirements of this 
                        paragraph are met with respect to the 
                        metropolitan planning process.
                    ``(B) Requirements for certification.--The 
                Secretary may make the certification under 
                subparagraph (A) if--
                            ``(i) the transportation planning 
                        process complies with the requirements 
                        of this section and other applicable 
                        requirements of Federal law; and
                            ``(ii) there is a TIP for the 
                        metropolitan planning area that has 
                        been approved by the metropolitan 
                        planning organization and the Governor.
                    ``(C) Effect of failure to certify.--
                            ``(i) Withholding of project 
                        funds.--If a metropolitan planning 
                        process of a metropolitan planning 
                        organization serving a transportation 
                        management area is not certified, the 
                        Secretary may withhold up to 20 percent 
                        of the funds attributable to the 
                        metropolitan planning area of the 
                        metropolitan planning organization for 
                        projects funded under this chapter and 
                        title 23.
                            ``(ii) Restoration of withheld 
                        funds.--The withheld funds shall be 
                        restored to the metropolitan planning 
                        area at such time as the metropolitan 
                        planning process is certified by the 
                        Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this 
                paragraph, the Secretary shall provide for 
                public involvement appropriate to the 
                metropolitan area under review.
    ``(l) Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the 
        case of a metropolitan area not designated as a 
        transportation management area under this section, the 
        Secretary may provide for the development of an 
        abbreviated transportation plan and TIP for the 
        metropolitan planning area that the Secretary 
        determines is appropriate to achieve the purposes of 
        this section, taking into account the complexity of 
        transportation problems in the area.
            ``(2) Nonattainment areas.--The Secretary may not 
        permit abbreviated plans or TIPs for a metropolitan 
        area that is in nonattainment for ozone or carbon 
        monoxide under the Clean Air Act.
    ``(m) Additional Requirements for Certain Nonattainment 
Areas.--
            ``(1) In general.--Notwithstanding any other 
        provisions of this chapter or title 23, for 
        transportation management areas classified as 
        nonattainment for ozone or carbon monoxide pursuant to 
        the Clean Air Act, Federal funds may not be advanced in 
        such area for any highway project that will result in a 
        significant increase in the carrying capacity for 
        single-occupant vehicles unless the project is 
        addressed through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning 
        area boundaries determined under subsection (e).
    ``(n) Limitation on Statutory Construction.--Nothing in 
this section shall be construed to confer on a metropolitan 
planning organization the authority to impose legal 
requirements on any transportation facility, provider, or 
project not eligible under this chapter or title 23.
    ``(o) Funding.--Funds set aside under section 5305(g) of 
this title or section 104(f) of title 23 shall be available to 
carry out this section.
    ``(p) Continuation of Current Review Practice.--Since plans 
and TIPs described in this section are subject to a reasonable 
opportunity for public comment, since individual projects 
included in plans and TIPs are subject to review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), and since decisions by the Secretary concerning plans 
and TIPs described in this section have not been reviewed under 
such Act as of January 1, 1997, any decision by the Secretary 
concerning a plan or TIP described in this section shall not be 
considered to be a Federal action subject to review under such 
Act.''.
    (b) Schedule for Implementation.--The Secretary shall issue 
guidance on a schedule for implementation of the changes made 
by this section, taking into consideration the established 
planning update cycle for States and metropolitan planning 
organizations. The Secretary shall not require a State or 
metropolitan planning organization to deviate from its 
established planning update cycle to implement changes made by 
this section. Beginning July 1, 2007, State or metropolitan 
planning organization plan or program updates shall reflect 
changes made by this section.
    (c) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5303 and 
inserting the following:

``5303. Metropolitan transportation planning.''.

SEC. 3006. STATEWIDE TRANSPORTATION PLANNING.

    (a) In General.--Section 5304 is amended to read as 
follows:

``Sec. 5304. Statewide transportation planning

    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--To 
        accomplish the objectives stated in section 5303(a), 
        each State shall develop a statewide transportation 
        plan and a statewide transportation improvement program 
        for all areas of the State, subject to section 5303.
            ``(2) Contents.--The statewide transportation plan 
        and the transportation improvement program developed 
        for each State shall provide for the development and 
        integrated management and operation of transportation 
        systems and facilities (including accessible pedestrian 
        walkways and bicycle transportation facilities) that 
        will function as an intermodal transportation system 
        for the State and an integral part of an intermodal 
        transportation system for the United States.
            ``(3) Process of development.--The process for 
        developing the statewide plan and the transportation 
        improvement program shall provide for consideration of 
        all modes of transportation and the policies stated in 
        section 5303(a), and shall be continuing, cooperative, 
        and comprehensive to the degree appropriate, based on 
        the complexity of the transportation problems to be 
        addressed.
    ``(b) Coordination With Metropolitan Planning; State 
Implementation Plan.--A State shall--
            ``(1) coordinate planning carried out under this 
        section with the transportation planning activities 
        carried out under section 5303 for metropolitan areas 
        of the State and with statewide trade and economic 
        development planning activities and related multistate 
        planning efforts; and
            ``(2) develop the transportation portion of the 
        State implementation plan as required by the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(c) Interstate Agreements.--
            ``(1) In general.--The consent of Congress is 
        granted to 2 or more States entering into agreements or 
        compacts, not in conflict with any law of the United 
        States, for cooperative efforts and mutual assistance 
        in support of activities authorized under this section 
        related to interstate areas and localities in the 
        States and establishing authorities the States consider 
        desirable for making the agreements and compacts 
        effective.
            ``(2) Reservation of rights.--The right to alter, 
        amend, or repeal interstate compacts entered into under 
        this subsection is expressly reserved.
    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a 
        statewide transportation planning process that provides 
        for consideration and implementation of projects, 
        strategies, and services that will--
                    ``(A) support the economic vitality of the 
                United States, the States, nonmetropolitan 
                areas, and metropolitan areas, especially by 
                enabling global competitiveness, productivity, 
                and efficiency;
                    ``(B) increase the safety of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(C) increase the security of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(D) increase the accessibility and 
                mobility of people and freight;
                    ``(E) protect and enhance the environment, 
                promote energy conservation, improve the 
                quality of life, and promote consistency 
                between transportation improvements and State 
                and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and 
                connectivity of the transportation system, 
                across and between modes throughout the State, 
                for people and freight;
                    ``(G) promote efficient system management 
                and operation; and
                    ``(H) emphasize the preservation of the 
                existing transportation system.
            ``(2) Failure to consider factors.--The failure to 
        consider any factor specified in paragraph (1) shall 
        not be reviewable by any court under this chapter, 
        title 23, subchapter II of chapter 5 of title 5, or 
        chapter 7 of title 5 in any matter affecting a 
        statewide transportation plan, the transportation 
        improvement program, a project or strategy, or the 
        certification of a planning process.
    ``(e) Additional Requirements.--In carrying out planning 
under this section, each State shall consider, at a minimum--
            ``(1) with respect to nonmetropolitan areas, the 
        concerns of affected local officials with 
        responsibility for transportation;
            ``(2) the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction 
        over land within the boundaries of the State; and
            ``(3) coordination of transportation plans, the 
        transportation improvement program, and planning 
        activities with related planning activities being 
        carried out outside of metropolitan planning areas and 
        between States.
    ``(f) Long-Range Statewide Transportation Plan.--
            ``(1) Development.--Each State shall develop a 
        long-range statewide transportation plan, with a 
        minimum 20-year forecast period for all areas of the 
        State, that provides for the development and 
        implementation of the intermodal transportation system 
        of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation 
                with the metropolitan planning organization 
                designated for the metropolitan area under 
                section 5303.
                    ``(B) Nonmetropolitan areas.--With respect 
                to nonmetropolitan areas, the statewide 
                transportation plan shall be developed in 
                consultation with affected nonmetropolitan 
                officials with responsibility for 
                transportation. The Secretary shall not review 
                or approve the consultation process in each 
                State.
                    ``(C) Indian tribal areas.--With respect to 
                each area of the State under the jurisdiction 
                of an Indian tribal government, the statewide 
                transportation plan shall be developed in 
                consultation with the tribal government and the 
                Secretary of the Interior.
                    ``(D) Consultation, comparison, and 
                consideration.--
                            ``(i) In general.--The long-range 
                        transportation plan shall be developed, 
                        as appropriate, in consultation with 
                        State, tribal, and local agencies 
                        responsible for land use management, 
                        natural resources, environmental 
                        protection, conservation, and historic 
                        preservation.
                            ``(ii) Comparison and 
                        consideration.--Consultation under 
                        clause (i) shall involve comparison of 
                        transportation plans to State and 
                        tribal conservation plans or maps, if 
                        available, and comparison of 
                        transportation plans to inventories of 
                        natural or historic resources, if 
                        available.
            ``(3) Participation by interested parties.--
                    ``(A) In general.--In developing the 
                statewide transportation plan, the State shall 
                provide citizens, affected public agencies, 
                representatives of public transportation 
                employees, freight shippers, private providers 
                of transportation, representatives of users of 
                public transportation, representatives of users 
                of pedestrian walkways and bicycle 
                transportation facilities, representatives of 
                the disabled, providers of freight 
                transportation services, and other interested 
                parties with a reasonable opportunity to 
                comment on the proposed plan.
                    ``(B) Methods.--In carrying out 
                subparagraph (A), the State shall, to the 
                maximum extent practicable--
                            ``(i) hold any public meetings at 
                        convenient and accessible locations and 
                        times;
                            ``(ii) employ visualization 
                        techniques to describe plans; and
                            ``(iii) make public information 
                        available in electronically accessible 
                        format and means, such as the World 
                        Wide Web, as appropriate to afford 
                        reasonable opportunity for 
                        consideration of public information 
                        under subparagraph (A).
            ``(4) Mitigation activities.--
                    ``(A) In general.--A long-range 
                transportation plan shall include a discussion 
                of potential environmental mitigation 
                activities and potential areas to carry out 
                these activities, including activities that may 
                have the greatest potential to restore and 
                maintain the environmental functions affected 
                by the plan.
                    ``(B) Consultation.--The discussion shall 
                be developed in consultation with Federal, 
                State, and tribal wildlife, land management, 
                and regulatory agencies.
            ``(5) Financial plan.--The statewide transportation 
        plan may include a financial plan that demonstrates how 
        the adopted statewide transportation plan can be 
        implemented, indicates resources from public and 
        private sources that are reasonably expected to be made 
        available to carry out the plan, and recommends any 
        additional financing strategies for needed projects and 
        programs. The financial plan may include, for 
        illustrative purposes, additional projects that would 
        be included in the adopted statewide transportation 
        plan if reasonable additional resources beyond those 
        identified in the financial plan were available.
            ``(6) Selection of projects from illustrative 
        list.--A State shall not be required to select any 
        project from the illustrative list of additional 
        projects included in the financial plan described in 
        paragraph (5).
            ``(7) Existing system.--The statewide 
        transportation plan should include capital, operations 
        and management strategies, investments, procedures, and 
        other measures to ensure the preservation and most 
        efficient use of the existing transportation system.
            ``(8) Publication of long-range transportation 
        plans.--Each long-range transportation plan prepared by 
        a State shall be published or otherwise made available, 
        including (to the maximum extent practicable) in 
        electronically accessible formats and means, such as 
        the World Wide Web.
    ``(g) Statewide Transportation Improvement Program.--
            ``(1) Development.--Each State shall develop a 
        statewide transportation improvement program for all 
        areas of the State. Such program shall cover a period 
        of 4 years and be updated every 4 years or more 
        frequently if the Governor elects to update more 
        frequently.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--With respect to 
                each metropolitan area in the State, the 
                program shall be developed in cooperation with 
                the metropolitan planning organization 
                designated for the metropolitan area under 
                section 5303.
                    ``(B) Nonmetropolitan areas.--With respect 
                to each nonmetropolitan area in the State, the 
                program shall be developed in consultation with 
                affected nonmetropolitan local officials with 
                responsibility for transportation. The 
                Secretary shall not review or approve the 
                specific consultation process in the State.
                    ``(C) Indian tribal areas.--With respect to 
                each area of the State under the jurisdiction 
                of an Indian tribal government, the program 
                shall be developed in consultation with the 
                tribal government and the Secretary of the 
                Interior.
            ``(3) Participation by interested parties.--In 
        developing the program, the State shall provide 
        citizens, affected public agencies, representatives of 
        public transportation employees, freight shippers, 
        private providers of transportation, providers of 
        freight transportation services, representatives of 
        users of public transportation, representatives of 
        users of pedestrian walkways and bicycle transportation 
        facilities, representatives of the disabled, and other 
        interested parties with a reasonable opportunity to 
        comment on the proposed program.
            ``(4) Included projects.--
                    ``(A) In general.--A transportation 
                improvement program developed under this 
                subsection for a State shall include federally 
                supported surface transportation expenditures 
                within the boundaries of the State.
                    ``(B) Listing of projects.--An annual 
                listing of projects for which funds have been 
                obligated in the preceding year in each 
                metropolitan planning area shall be published 
                or otherwise made available by the cooperative 
                effort of the State, transit operator, and the 
                metropolitan planning organization for public 
                review. The listing shall be consistent with 
                the funding categories identified in each 
                metropolitan transportation improvement 
                program.
                    ``(C) Projects under chapter 2 of title 
                23.--
                            ``(i) Regionally significant 
                        projects.--Regionally significant 
                        projects proposed for funding under 
                        chapter 2 of title 23 shall be 
                        identified individually in the 
                        transportation improvement program.
                            ``(ii) Other projects.--Projects 
                        proposed for funding under chapter 2 of 
                        title 23 that are not determined to be 
                        regionally significant shall be grouped 
                        in 1 line item or identified 
                        individually in the transportation 
                        improvement program.
                    ``(D) Consistency with statewide 
                transportation plan.--Each project shall be--
                            ``(i) consistent with the statewide 
                        transportation plan developed under 
                        this section for the State;
                            ``(ii) identical to the project or 
                        phase of the project as described in an 
                        approved metropolitan transportation 
                        plan; and
                            ``(iii) in conformance with the 
                        applicable State air quality 
                        implementation plan developed under the 
                        Clean Air Act, if the project is 
                        carried out in an area designated as 
                        nonattainment for ozone, particulate 
                        matter, or carbon monoxide under that 
                        Act.
                    ``(E) Requirement of anticipated full 
                funding.--The transportation improvement 
                program shall include a project, or an 
                identified phase of a project, only if full 
                funding can reasonably be anticipated to be 
                available for the project within the time 
                period contemplated for completion of the 
                project.
                    ``(F) Financial plan.--The transportation 
                improvement program may include a financial 
                plan that demonstrates how the approved 
                transportation improvement program can be 
                implemented, indicates resources from public 
                and private sources that are reasonably 
                expected to be made available to carry out the 
                transportation improvement program, and 
                recommends any additional financing strategies 
                for needed projects and programs. The financial 
                plan may include, for illustrative purposes, 
                additional projects that would be included in 
                the adopted transportation plan if reasonable 
                additional resources beyond those identified in 
                the financial plan were available.
                    ``(G) Selection of projects from 
                illustrative list.--
                            ``(i) No required selection.--
                        Notwithstanding subparagraph (F), a 
                        State shall not be required to select 
                        any project from the illustrative list 
                        of additional projects included in the 
                        financial plan under subparagraph (F).
                            ``(ii) Required action by the 
                        secretary.--Action by the Secretary 
                        shall be required for a State to select 
                        any project from the illustrative list 
                        of additional projects included in the 
                        financial plan under subparagraph (F) 
                        for inclusion in an approved 
                        transportation improvement program.
                    ``(H) Priorities.--The transportation 
                improvement program shall reflect the 
                priorities for programming and expenditures of 
                funds, including transportation enhancement 
                activities, required by this chapter and title 
                23.
            ``(5) Project selection for areas of less than 
        50,000 population.--Projects carried out in areas with 
        populations of less than 50,000 individuals shall be 
        selected, from the approved transportation improvement 
        program (excluding projects carried out on the National 
        Highway System and projects carried out under the 
        bridge program or the Interstate maintenance program 
        under title 23 or sections 5310, 5311, 5316, and 5317 
        of this title) by the State in cooperation with the 
        affected nonmetropolitan local officials with 
        responsibility for transportation. Projects carried out 
        in areas with populations of less than 50,000 
        individuals on the National Highway System or under the 
        bridge program or the Interstate maintenance program 
        under title 23 or sections 5310, 5311, 5316, and 5317 
        of this title shall be selected, from the approved 
        statewide transportation improvement program, by the 
        State in consultation with the affected nonmetropolitan 
        local officials with responsibility for transportation.
            ``(6) Transportation improvement program 
        approval.--Every 4 years, a transportation improvement 
        program developed under this subsection shall be 
        reviewed and approved by the Secretary if based on a 
        current planning finding.
            ``(7) Planning finding.--A finding shall be made by 
        the Secretary at least every 4 years that the 
        transportation planning process through which statewide 
        transportation plans and programs are developed is 
        consistent with this section and section 5303.
            ``(8) Modifications to project priority.--
        Notwithstanding any other provision of law, action by 
        the Secretary shall not be required to advance a 
        project included in the approved transportation 
        improvement program in place of another project in the 
        program.
    ``(h) Funding.--Funds set aside pursuant to section 5305(g) 
of this title and section 104(i) of title 23 shall be available 
to carry out this section.
    ``(i) Treatment of Certain State Laws as Congestion 
Management Processes.--For purposes of this section and section 
5303, and sections 134 and 135 of title 23, State laws, rules, 
or regulations pertaining to congestion management systems or 
programs may constitute the congestion management process under 
this section and section 5303, and sections 134 and 135 of 
title 23, if the Secretary finds that the State laws, rules, or 
regulations are consistent with, and fulfill the intent of, the 
purposes of this section, section 5303, and sections 134 and 
135 of title 23, as appropriate.
    ``(j) Continuation of Current Review Practice.--Since the 
statewide transportation plan and the transportation 
improvement program described in this section are subject to a 
reasonable opportunity for public comment, since individual 
projects included in the statewide transportation plans and the 
transportation improvement program are subject to review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.), and since decisions by the Secretary concerning 
statewide transportation plans or the transportation 
improvement program described in this section have not been 
reviewed under such Act as of January 1, 1997, any decision by 
the Secretary concerning a metropolitan or statewide 
transportation plan or the transportation improvement program 
described in this section shall not be considered to be a 
Federal action subject to review under such Act.''.
    (b) Schedule for Implementation.--The Secretary shall issue 
guidance on a schedule for implementation of the changes made 
by this section, taking into consideration the established 
planning update cycle for States and metropolitan planning 
organizations. The Secretary shall not require a State or 
metropolitan planning organization to deviate from its 
established planning update cycle to implement changes made by 
this section. Beginning July 1, 2007, State or metropolitan 
planning organization plan or program updates shall reflect 
changes made by this section.
    (c) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5304 and 
inserting the following:

``5304. Statewide transportation planning.''.

SEC. 3007. PLANNING PROGRAMS.

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

``Sec.  5305. Planning programs

    ``(a) State Defined.--In this section, the term `State' 
means a State of the United States, the District of Columbia, 
and Puerto Rico.
    ``(b) General Authority.--
            ``(1) Grants and agreements.--Under criteria 
        established by the Secretary, the Secretary may award 
        grants to States, authorities of the States, 
        metropolitan planning organizations, and local 
        governmental authorities, and make agreements with 
        other departments, agencies, or instrumentalities of 
        the Government to--
                    ``(A) develop transportation plans and 
                programs;
                    ``(B) plan, engineer, design, and evaluate 
                a public transportation project; and
                    ``(C) conduct technical studies relating to 
                public transportation.
            ``(2) Eligible activities.--Activities eligible 
        under paragraph (1) include the following:
                    ``(A) Studies related to management, 
                planning, operations, capital requirements, and 
                economic feasibility.
                    ``(B) Evaluating previously financed 
                projects.
                    ``(C) Peer reviews and exchanges of 
                technical data, information, assistance, and 
                related activities in support of planning and 
                environmental analyses among metropolitan 
                planning organizations and other transportation 
                planners.
                    ``(D) Other similar and related activities 
                preliminary to and in preparation for 
                constructing, acquiring, or improving the 
                operation of facilities and equipment.
    ``(c) Purpose.--To the extent practicable, the Secretary 
shall ensure that amounts appropriated or made available under 
section 5338 to carry out this section and sections 5303, 5304, 
and 5306 are used to support balanced and comprehensive 
transportation planning that considers the relationships among 
land use and all transportation modes, without regard to the 
programmatic source of the planning amounts.
    ``(d) Metropolitan Planning Program.--
            ``(1) Apportionment to states.--
                    ``(A) In general.--The Secretary shall 
                apportion 80 percent of the amounts made 
                available under subsection (g)(1) among the 
                States to carry out sections 5303 and 5306 in 
                the ratio that--
                            ``(i) the population of urbanized 
                        areas in each State, as shown by the 
                        latest available decennial census of 
                        population; bears to
                            ``(ii) the total population of 
                        urbanized areas in all States, as shown 
                        by that census.
                    ``(B) Minimum apportionment.--
                Notwithstanding subparagraph (A), a State may 
                not receive less than 0.5 percent of the amount 
                apportioned under this paragraph.
            ``(2) Allocation to mpo's.--Amounts apportioned to 
        a State under paragraph (1) shall be made available, 
        not later than 30 days after the date of apportionment, 
        to metropolitan planning organizations in the State 
        designated under this section under a formula that--
                    ``(A) considers population of urbanized 
                areas;
                    ``(B) provides an appropriate distribution 
                for urbanized areas to carry out the 
                cooperative processes described in this 
                section;
                    ``(C) the State develops in cooperation 
                with the metropolitan planning organizations; 
                and
                    ``(D) the Secretary approves.
            ``(3) Supplemental amounts.--
                    ``(A) In general.--The Secretary shall 
                apportion 20 percent of the amounts made 
                available under subsection (g)(1) among the 
                States to supplement allocations made under 
                paragraph (1) for metropolitan planning 
                organizations.
                    ``(B) Formula.--The Secretary shall 
                apportion amounts referred to in subparagraph 
                (A) under a formula that reflects the 
                additional cost of carrying out planning, 
                programming, and project selection 
                responsibilities under sections 5303 and 5306 
                in certain urbanized areas.
    ``(e) State Planning and Research Program.--
            ``(1) Apportionment to states.--
                    ``(A) In general.--The Secretary shall 
                apportion the amounts made available under 
                subsection (g)(2) among the States for grants 
                and contracts to carry out this section and 
                sections 5304, 5306, 5315, and 5322 in the 
                ratio that--
                            ``(i) the population of urbanized 
                        areas in each State, as shown by the 
                        latest available decennial census; 
                        bears to
                            ``(ii) the population of urbanized 
                        areas in all States, as shown by that 
                        census.
                    ``(B) Minimum apportionment.--
                Notwithstanding subparagraph (A), a State may 
                not receive less than 0.5 percent of the amount 
                apportioned under this paragraph.
            ``(2) Supplemental amounts.--A State, as the State 
        considers appropriate, may authorize part of the amount 
        made available under this subsection to be used to 
        supplement amounts made available under subsection (d).
    ``(f) Government's Share of Costs.--The Government's share 
of the cost of an activity funded using amounts made available 
under this section may not exceed 80 percent of the cost of the 
activity unless the Secretary determines that it is in the 
interests of the Government not to require a State or local 
match.
    ``(g) Allocation of Funds.--Of the funds made available by 
or appropriated to carry out this section under section 5338(c) 
for fiscal years 2005 through 2009--
            ``(1) 82.72 percent shall be available for the 
        metropolitan planning program under subsection (d); and
            ``(2) 17.28 percent shall be available to carry out 
        subsection (e).
    ``(h) Availability of Funds.--Funds apportioned under this 
section to a State that have not been obligated in the 3-year 
period beginning after the last day of the fiscal year for 
which the funds are authorized shall be reapportioned among the 
States.''.
    (b) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5305 and 
inserting the following:

``5305. Planning programs.''.

SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION.

    Section 5306(a) is amended by inserting ``, as determined 
by local policies, criteria, and decisionmaking,'' after 
``feasible''.

SEC. 3009. URBANIZED AREA FORMULA GRANTS.

    (a) Technical Amendments.--Section 5307 is amended--
            (1) by striking subsections (h), (j) and (k); and
            (2) by redesignating subsections (i), (l), (m), and 
        (n) as subsections (h), (i), (j), and (k), 
        respectively.
    (b) Definitions.--
            (1) Associated capital maintenance items.--Section 
        5307(a)(1) is amended--
                    (A) by striking ``means equipment, tires,'' 
                and inserting ``means--
                    ``(A) equipment, tires,'';
                    (B) in subparagraph (A) (as so designated) 
                by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(B) reconstruction of equipment and 
                material, each of which after reconstruction 
                will have a fair market value of at least .5 
                percent of the current fair market value of 
                rolling stock comparable to the rolling stock 
                for which the equipment and material will be 
                used.''.
            (2) Designated recipient.--Section 5307(a)(2)(A) is 
        amended to read as follows:
                    ``(A) an entity designated, in accordance 
                with the planning process under sections 5303, 
                5304, and 5306, by the chief executive officer 
                of a State, responsible local officials, and 
                publicly owned operators of public 
                transportation, to receive and apportion 
                amounts under section 5336 that are 
                attributable to transportation management areas 
                identified under section 5303; or''.
    (c) General Authority.--Section 5307(b) is amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) Grants.--The Secretary may make grants under 
        this section for--
                    ``(A) capital projects and associated 
                capital maintenance items;
                    ``(B) planning;
                    ``(C) transit enhancements;
                    ``(D) operating costs of equipment and 
                facilities for use in public transportation in 
                an urbanized area with a population of less 
                than 200,000;
                    ``(E) operating costs of equipment and 
                facilities for use in public transportation in 
                a portion or portions of an urbanized area with 
                a population of at least 200,000, but not more 
                than 225,000, if--
                            ``(i) the urbanized area includes 
                        parts of more than one State;
                            ``(ii) the portion of the urbanized 
                        area includes only one State;
                            ``(iii) the population of the 
                        portion of the urbanized area is less 
                        than 30,000; and
                            ``(iv) the grants will not be used 
                        to provide public transportation 
                        outside of the portion of the urbanized 
                        area; and
                    ``(F) operating costs of equipment and 
                facilities for use in public transportation for 
                local governmental authorities in areas which 
                adopted transit operating and financing plans 
                that became a part of the Houston, Texas, 
                urbanized area as a result of the 2000 
                decennial census of population, but lie outside 
                the service area of the principal public 
                transportation agency that serves the Houston 
                urbanized area.'';
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Special rule for fiscal years 2005 through 
        2007.--
                    ``(A) Increased flexibility.--The Secretary 
                may award grants under this section, from funds 
                made available to carry out this section for 
                each of the fiscal years 2005 through 2007, to 
                finance the operating cost of equipment and 
                facilities for use in mass transportation in an 
                urbanized area with a population of at least 
                200,000, as determined by the 2000 decennial 
                census of population, if--
                            ``(i) the urbanized area had a 
                        population of less than 200,000, as 
                        determined by the 1990 decennial census 
                        of population;
                            ``(ii) a portion of the urbanized 
                        area was a separate urbanized area with 
                        a population of less than 200,000, as 
                        determined by the 1990 decennial census 
                        of population;
                            ``(iii) the area was not designated 
                        as an urbanized area, as determined by 
                        the 1990 decennial census of 
                        population; or
                            ``(iv) a portion of the area was 
                        not designated as an urbanized area, as 
                        determined by the 1990 decennial 
                        census, and received assistance under 
                        section 5311 in fiscal year 2002.
                    ``(B) Maximum amounts in fiscal year 
                2005.--In fiscal year 2005--
                            ``(i) amounts made available to any 
                        urbanized area under clause (i) or (ii) 
                        of subparagraph (A) shall be not more 
                        than the amount apportioned in fiscal 
                        year 2002 to the urbanized area with a 
                        population of less than 200,000, as 
                        determined in the 1990 decennial census 
                        of population;
                            ``(ii) amounts made available to 
                        any urbanized area under subparagraph 
                        (A)(iii) shall be not more than the 
                        amount apportioned to the urbanized 
                        area under this section for fiscal year 
                        2003; and
                            ``(iii) each portion of any area 
                        not designated as an urbanized area, as 
                        determined by the 1990 decennial 
                        census, and eligible to receive funds 
                        under subparagraph (A)(iv), shall 
                        receive an amount of funds to carry out 
                        this section that is not less than the 
                        amount the portion of the area received 
                        under section 5311 for fiscal year 
                        2002.
                    ``(C) Maximum amounts in fiscal year 
                2006.--In fiscal year 2006--
                            ``(i) amounts made available to any 
                        urbanized area under clause (i) or (ii) 
                        of subparagraph (A) shall be not more 
                        than 50 percent of the amount 
                        apportioned in fiscal year 2002 to the 
                        urbanized area with a population of 
                        less than 200,000, as determined in the 
                        1990 decennial census of population;
                            ``(ii) amounts made available to 
                        any urbanized area under subparagraph 
                        (A)(iii) shall be not more than 50 
                        percent of the amount apportioned to 
                        the urbanized area under this section 
                        for fiscal year 2003; and
                            ``(iii) each portion of any area 
                        not designated as an urbanized area, as 
                        determined by the 1990 decennial 
                        census, and eligible to receive funds 
                        under subparagraph (A)(iv), shall 
                        receive an amount of funds to carry out 
                        this section that is not less 50 
                        percent of the amount the portion of 
                        the area received under section 5311 
                        for fiscal year 2002.
                    ``(D) Maximum amounts in fiscal year 
                2007.--In fiscal year 2007--
                            ``(i) amounts made available to any 
                        urbanized area under clause (i) or (ii) 
                        of subparagraph (A) shall be not more 
                        than 25 percent of the amount 
                        apportioned in fiscal year 2002 to the 
                        urbanized area with a population of 
                        less than 200,000, as determined in the 
                        1990 decennial census of population;
                            ``(ii) amounts made available to 
                        any urbanized area under subparagraph 
                        (A)(iii) shall be not more than 25 
                        percent of the amount apportioned to 
                        the urbanized area under this section 
                        for fiscal year 2003; and
                            ``(iii) each portion of any area 
                        not designated as an urbanized area, as 
                        determined by the 1990 decennial 
                        census, and eligible to receive funds 
                        under subparagraph (A)(iv), shall 
                        receive an amount of funds to carry out 
                        this section that is not less than 25 
                        percent of the amount the portion of 
                        the area received under section 5311 in 
                        fiscal year 2002.''; and
            (3) by striking paragraph (4).
    (d) Grant Recipient Requirements.--Section 5307(d)(1) is 
amended--
            (1) in subparagraph (A) by inserting ``, including 
        safety and security aspects of the program'' after 
        ``program'';
            (2) in subparagraph (E)--
                    (A) by striking ``and'' at the end of 
                clause (ii);
                    (B) by inserting ``and'' at the end of 
                clause (iii); and
                    (C) by adding at the end the following:
                            ``(iv) will comply with sections 
                        5323 and 5325;'';
            (3) in subparagraph (H) by striking ``sections 
        5301(a) and (d), 5303-5306, and 5310(a)-(d) of this 
        title'' and inserting ``section 5301(a), section 
        5301(d), and sections 5303 through 5306'';
            (4) in subparagraph (I) by striking ``and'' at the 
        end;
            (5) by adding at the end the following:
                    ``(K) in the case of a recipient for an 
                urbanized area with a population of at least 
                200,000--
                            ``(i) will expend not less than 1 
                        percent of the amount the recipient 
                        receives each fiscal year under this 
                        section for transit enhancements, as 
                        defined in section 5302(a); and
                            ``(ii) will submit an annual report 
                        listing projects carried out in the 
                        preceding fiscal year with those funds; 
                        and''.
    (e) Government's Share of Costs.--Section 5307(e) is 
amended to read as follows:
    ``(e) Government's Share of Costs.--
            ``(1) Capital projects.--A grant for a capital 
        project (including associated capital maintenance 
        items) under this section shall be for 80 percent of 
        the net project cost of the project. The recipient may 
        provide additional local matching amounts.
            ``(2) Operating expenses.--A grant for operating 
        expenses under this section may not exceed 50 percent 
        of the net project cost of the project.
            ``(3) Remaining costs.--Subject to paragraph (4), 
        the remainder of the net project cost shall be 
        provided--
                    ``(A) in cash from non-Government sources 
                other than revenues from providing public 
                transportation services;
                    ``(B) from revenues derived from the sale 
                of advertising and concessions;
                    ``(C) from an undistributed cash surplus, a 
                replacement or depreciation cash fund or 
                reserve, or new capital; and
                    ``(D) from amounts received under a service 
                agreement with a State or local social service 
                agency or private social service organization.
            ``(4) Use of certain funds.--The prohibitions on 
        the use of funds for matching requirements under 
        section 403(a)(5)(C)(vii) of the Social Security Act 
        (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to the 
        remainder.''.
    (f) Undertaking Projects in Advance.--Section 5307(g) is 
amended by striking paragraph (4).
    (g) Relationship to Other Laws.--Section 5307(k) (as 
redesignated by subsection (a)(2) of this section) is amended 
to read as follows:
    ``(k) Relationship to Other Laws.--
            ``(1) Applicable provisions.--Sections 5301, 5302, 
        5303, 5304, 5306, 5315(c), 5318, 5319, 5323, 5325, 
        5327, 5329, 5330, 5331, 5332, 5333, and 5335 apply to 
        this section and to any grant made under this section.
            ``(2) Inapplicable provisions.--
                    ``(A) In general.--Except as provided by 
                this section, no other provision of this 
                chapter applies to this section or to a grant 
                made under this section.
                    ``(B) Title 5.--The provision of assistance 
                under this chapter shall not be construed as 
                bringing within the application of chapter 15 
                of title 5 any nonsupervisory employee of a 
                public transportation system (or any other 
                agency or entity performing related functions) 
                to which such chapter is otherwise 
                inapplicable.''.
    (h) Treatment.--Section 5307 is amended by adding at the 
end the following:
    ``(l) Treatment.--For the purposes of this section, the 
United States Virgin Islands shall be treated as an urbanized 
area, as defined in section 5302.''.
    (i) Contracted Paratransit Pilot.--
            (1) In general.--Notwithstanding section 
        5302(a)(1)(I) of title 49, United States Code, for 
        fiscal years 2005 through 2009, a recipient of 
        assistance under section 5307 of such title in 
        urbanized areas with a population of 558,329 or 747,003 
        according to the 2000 decennial census of population 
        may use not more than 20 percent of such recipient's 
        annual formula apportionment under section 5307 of such 
        title for the provision of nonfixed route paratransit 
        services in accordance with section 223 of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 
        12143), but only if the grant recipient is in 
        compliance with applicable requirements of that Act, 
        including both fixed route and demand responsive 
        service and the service is acquired by contract.
            (2) Report.--Not later than January 1, 2009, the 
        Secretary shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate a report on the 
        implementation of this subsection and any 
        recommendations of the Secretary regarding the 
        application of this subsection.

SEC. 3010. CLEAN FUELS GRANT PROGRAM.

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

``Sec. 5308. Clean fuels grant program

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) Clean fuel bus.--The term `clean fuel bus' 
        means a passenger vehicle used to provide public 
        transportation that--
                    ``(A) is powered by--
                            ``(i) compressed natural gas;
                            ``(ii) liquefied natural gas;
                            ``(iii) biodiesel fuels;
                            ``(iv) batteries;
                            ``(v) alcohol-based fuels;
                            ``(vi) hybrid electric;
                            ``(vii) fuel cell;
                            ``(viii) clean diesel, to the 
                        extent allowed under this section; or
                            ``(ix) other low or zero emissions 
                        technology; and
                    ``(B) the Administrator of the 
                Environmental Protection Agency has certified 
                sufficiently reduces harmful emissions.
            ``(2) Eligible project.--The term `eligible 
        project'--
                    ``(A) means a project in a nonattainment or 
                maintenance area described in paragraph (4)(A) 
                for--
                            ``(i) purchasing or leasing clean 
                        fuel buses, including buses that employ 
                        a lightweight composite primary 
                        structure;
                            ``(ii) constructing or leasing 
                        clean fuel buses or electrical 
                        recharging facilities and related 
                        equipment for such buses; or
                            ``(iii) constructing new or 
                        improving existing public 
                        transportation facilities to 
                        accommodate clean fuel buses; and
                    ``(B) at the discretion of the Secretary, 
                may include a project located in a 
                nonattainment or maintenance area described in 
                paragraph (4)(A) relating to clean fuel, 
                biodiesel, hybrid electric, or zero emissions 
                technology buses that exhibit equivalent or 
                superior emissions reductions to existing clean 
                fuel or hybrid electric technologies.
            ``(3) Maintenance area.--The term `maintenance 
        area' has the meaning such term has under section 101 
        of title 23.
            ``(4) Recipient.--
                    ``(A) In general.--The term `recipient' 
                means a designated recipient (as defined in 
                section 5307(a)(2)) for an area that, and a 
                recipient for an urbanized area with a 
                population of less than 200,000 that--
                            ``(i) is designated as a 
                        nonattainment area for ozone or carbon 
                        monoxide under section 107(d) of the 
                        Clean Air Act (42 U.S.C. 7407(d)); or
                            ``(ii) is a maintenance area for 
                        ozone or carbon monoxide.
                    ``(B) Smaller urbanized areas.--In the case 
                of an urbanized area with a population of less 
                than 200,000, the State in which the area is 
                located shall act as the recipient for the area 
                under this section.
    ``(b) Authority.--The Secretary shall make grants in 
accordance with this section to recipients to finance eligible 
projects.
    ``(c) Clean Diesel Buses.--Not more than 25 percent of the 
amount made available by or appropriated under section 5338 in 
each fiscal year to carry out this section may be made 
available to fund clean diesel buses.
    ``(d) Grant Requirements.--
            ``(1) In general.--A grant under this section shall 
        be subject to the requirements of section 5307.
            ``(2) Government's share of costs for certain 
        projects.--Section 5323(i) applies to projects carried 
        out under this section.
    ``(e) Availability of Funds.--Any amount made available or 
appropriated under this section--
            ``(1) shall remain available to a project for 2 
        years after the fiscal year for which the amount is 
        made available or appropriated; and
            ``(2) that remains unobligated at the end of the 
        period described in paragraph (1) shall be added to the 
        amount made available in the following fiscal year.''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by striking the item relating to section 5308 and 
inserting the following:

``5308. Clean fuels grant program.''.

SEC. 3011. CAPITAL INVESTMENT GRANTS.

    (a) In General.--Section 5309 is amended to read as 
follows:

``Sec. 5309. Capital investment grants

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) Alternatives analysis.--The term 
        `alternatives analysis' means a study conducted as part 
        of the transportation planning process required under 
        sections 5303 and 5304, which includes--
                    ``(A) an assessment of a wide range of 
                public transportation alternatives designed to 
                address a transportation problem in a corridor 
                or subarea;
                    ``(B) sufficient information to enable the 
                Secretary to make the findings of project 
                justification and local financial commitment 
                required under this section;
                    ``(C) the selection of a locally preferred 
                alternative; and
                    ``(D) the adoption of the locally preferred 
                alternative as part of the long-range 
                transportation plan required under section 
                5303.
            ``(2) Major new fixed guideway capital project.--
        The term `major new fixed guideway capital project' 
        means a new fixed guideway capital project for which 
        the Federal assistance provided or to be provided under 
        this section is $75,000,000 or more.
            ``(3) New fixed guideway capital project.--The term 
        `new fixed guideway capital project' means a minimum 
        operable segment of a capital project for a new fixed 
        guideway system or extension to an existing fixed 
        guideway system.
    ``(b) General Authority.--The Secretary may make grants 
under this section to assist State and local governmental 
authorities in financing--
            ``(1) new fixed guideway capital projects under 
        subsections (d) and (e), including the acquisition of 
        real property, the initial acquisition of rolling stock 
        for the systems, the acquisition of rights of way, and 
        relocation, for fixed guideway corridor development for 
        projects in the advanced stages of alternatives 
        analysis or preliminary engineering;
            ``(2) capital projects to modernize existing fixed 
        guideway systems;
            ``(3) capital projects to replace, rehabilitate, 
        and purchase buses and related equipment and to 
        construct bus-related facilities, including programs of 
        bus and bus-related projects for assistance to 
        subrecipients that are public agencies, private 
        companies engaged in public transportation, or private 
        nonprofit organizations; and
            ``(4) the development of corridors to support new 
        fixed guideway capital projects under subsections (d) 
        and (e), including protecting rights of way through 
        acquisition, construction of dedicated bus and high 
        occupancy vehicle lanes and park and ride lots, and 
        other nonvehicular capital improvements that the 
        Secretary may decide would result in increased public 
        transportation usage in the corridor.
    ``(c) Grant Requirements.--
            ``(1) In general.--The Secretary may not approve a 
        grant for a project under this section unless the 
        Secretary determines that--
                    ``(A) the project is part of an approved 
                transportation plan and program of projects 
                required under sections 5303, 5304, and 5306; 
                and
                    ``(B) the applicant has, or will have--
                            ``(i) the legal, financial, and 
                        technical capacity to carry out the 
                        project, including safety and security 
                        aspects of the project;
                            ``(ii) satisfactory continuing 
                        control over the use of the equipment 
                        or facilities; and
                            ``(iii) the capability and 
                        willingness to maintain the equipment 
                        or facilities.
            ``(2) Certification.--An applicant that has 
        submitted the certifications required under 
        subparagraphs (A), (B), (C), and (H) of section 
        5307(d)(1) shall be deemed to have provided sufficient 
        information upon which the Secretary may make the 
        determinations required under this subsection.
            ``(3) Grantee requirements.--The Secretary shall 
        require that any grant awarded under this section to a 
        recipient be subject to all terms, conditions, 
        requirements, and provisions that the Secretary 
        determines to be necessary or appropriate for the 
        purposes of this section, including requirements for 
        the disposition of net increases in the value of real 
        property resulting from the project assisted under this 
        section.
    ``(d) Major Capital Investment Grants of $75,000,000 or 
More.--
            ``(1) Full funding grant agreement.--
                    ``(A) In general.--A major new fixed 
                guideway capital project shall be carried out 
                through a full funding grant agreement.
                    ``(B) Criteria.--The Secretary shall enter 
                into a full funding grant agreement, based on 
                the evaluations and ratings required under this 
                subsection, with each grantee receiving 
                assistance for a major new fixed guideway 
                capital project that--
                            ``(i) is authorized for final 
                        design and construction; and
                            ``(ii) has been rated as medium, 
                        medium-high, or high, in accordance 
                        with paragraph (5)(B).
            ``(2) Approval of grants.--The Secretary may 
        approve a grant under this section for a major new 
        fixed guideway capital project only if the Secretary, 
        based upon evaluations and considerations set forth in 
        paragraph (3), determines that the project is--
                    ``(A) based on the results of an 
                alternatives analysis and preliminary 
                engineering;
                    ``(B) justified based on a comprehensive 
                review of its mobility improvements, 
                environmental benefits, cost effectiveness, 
                operating efficiencies, economic development 
                effects, and public transportation supportive 
                land use policies and future patterns; and
                    ``(C) supported by an acceptable degree of 
                local financial commitment (including evidence 
                of stable and dependable financing sources) to 
                construct, maintain, and operate the system or 
                extension, and maintain and operate the entire 
                public transportation system without requiring 
                a reduction in existing public transportation 
                services or level of service to operate the 
                proposed project.
            ``(3) Evaluation of project justification.--In 
        making the determinations under paragraph (2)(B) for a 
        major capital investment grant, the Secretary shall 
        analyze, evaluate, and consider--
                    ``(A) the results of the alternatives 
                analysis and preliminary engineering for the 
                proposed project;
                    ``(B) the reliability of the forecasting 
                methods used to estimate costs and utilization 
                made by the recipient and the contractors to 
                the recipient;
                    ``(C) the direct and indirect costs of 
                relevant alternatives;
                    ``(D) factors such as--
                            ``(i) congestion relief;
                            ``(ii) improved mobility;
                            ``(iii) air pollution;
                            ``(iv) noise pollution;
                            ``(v) energy consumption; and
                            ``(vi) all associated ancillary and 
                        mitigation costs necessary to carry out 
                        each alternative analyzed;
                    ``(E) reductions in local infrastructure 
                costs and other benefits achieved through 
                compact land use development, such as positive 
                impacts on the capacity, utilization, or 
                longevity of other surface transportation 
                assets and facilities;
                    ``(F) the cost of suburban sprawl;
                    ``(G) the degree to which the project 
                increases the mobility of the public 
                transportation dependent population or promotes 
                economic development;
                    ``(H) population density and current 
                transit ridership in the transportation 
                corridor;
                    ``(I) the technical capability of the grant 
                recipient to construct the project;
                    ``(J) any adjustment to the project 
                justification necessary to reflect differences 
                in local land, construction, and operating 
                costs; and
                    ``(K) other factors that the Secretary 
                determines to be appropriate to carry out this 
                subsection.
            ``(4) Evaluation of local financial commitment.--
                    ``(A) In general.--In evaluating a project 
                under paragraph (2)(C), the Secretary shall 
                require that--
                            ``(i) the proposed project plan 
                        provides for the availability of 
                        contingency amounts that the Secretary 
                        determines to be reasonable to cover 
                        unanticipated cost increases;
                            ``(ii) each proposed local source 
                        of capital and operating financing is 
                        stable, reliable, and available within 
                        the proposed project timetable; and
                            ``(iii) local resources are 
                        available to recapitalize and operate 
                        the overall proposed public 
                        transportation system, including 
                        essential feeder bus and other services 
                        necessary to achieve the projected 
                        ridership levels without requiring a 
                        reduction in existing public 
                        transportation services or level of 
                        service to operate the proposed 
                        project.
                    ``(B) Evaluation criteria.--In assessing 
                the stability, reliability, and availability of 
                proposed sources of local financing under 
                paragraph (2)(C), the Secretary shall 
                consider--
                            ``(i) the reliability of the 
                        forecasting methods used to estimate 
                        costs and utilization made by the 
                        recipient and the contractors to the 
                        recipient;
                            ``(ii) existing grant commitments;
                            ``(iii) the degree to which 
                        financing sources are dedicated to the 
                        proposed purposes;
                            ``(iv) any debt obligation that 
                        exists, or is proposed by the 
                        recipient, for the proposed project or 
                        other public transportation purpose; 
                        and
                            ``(v) the extent to which the 
                        project has a local financial 
                        commitment that exceeds the required 
                        non-Federal share of the cost of the 
                        project.
                    ``(C) Consideration of fiscal capacity of 
                state and local governments.--If the Secretary 
                gives priority to financing projects under this 
                subsection that include more than the non-
                Federal share required under subsection (h), 
                the Secretary shall give equal consideration to 
                differences in the fiscal capacity of State and 
                local governments.
            ``(5) Project advancement and ratings.--
                    ``(A) Project advancement.--A proposed 
                project under this subsection shall not advance 
                from alternatives analysis to preliminary 
                engineering or from preliminary engineering to 
                final design and construction unless the 
                Secretary determines that the project meets the 
                requirements of this section and there is a 
                reasonable likelihood that the project will 
                continue to meet such requirements.
                    ``(B) Ratings.--In making a determination 
                under subparagraph (A), the Secretary shall 
                evaluate and rate the project on a 5-point 
                scale (high, medium-high, medium, medium-low, 
                or low) based on the results of the 
                alternatives analysis, the project 
                justification criteria, and the degree of local 
                financial commitment, as required under this 
                subsection. In rating the projects, the 
                Secretary shall provide, in addition to the 
                overall project rating, individual ratings for 
                each of the criteria established by regulation.
            ``(6) Policy guidance.--
                    ``(A) Publication.--The Secretary shall 
                publish policy guidance regarding the new fixed 
                guideway capital project review and evaluation 
                process and criteria--
                            ``(i) not later than 120 days after 
                        the date of enactment of the Federal 
                        Public Transportation Act of 2005; and
                            ``(ii) each time significant 
                        changes are made by the Secretary to 
                        the process and criteria, but not less 
                        frequently than once every 2 years.
                    ``(B) Public comment and response.--The 
                Secretary shall--
                            ``(i) invite public comment to the 
                        policy guidance published under 
                        subparagraph (A); and
                            ``(ii) publish a response to the 
                        comments received under clause (i).
    ``(e) Capital Investment Grants Less Than $75,000,000.--
            ``(1) In general.--
                    ``(A) Applicability of requirements.--
                Except as provided by subparagraph (B), a new 
                fixed guideway capital project shall be subject 
                to the requirements of this subsection if the 
                Federal assistance provided or to be provided 
                under this section for the project is less than 
                $75,000,000 and the total estimated net capital 
                cost of the project is less than $250,000,000.
                    ``(B) Projects receiving less than 
                $25,000,000 in federal assistance.--If the 
                assistance provided under this section with 
                respect to a new fixed guideway capital project 
                is less than $25,000,000, the requirements of 
                this subsection shall not apply to the project 
                until such date as the final regulation to be 
                issued under paragraph (9) takes effect.
            ``(2) Selection criteria.--The Secretary may 
        provide Federal assistance under this subsection with 
        respect to a proposed project only if the Secretary 
        finds that the project is--
                    ``(A) based on the results of planning and 
                alternatives analysis;
                    ``(B) justified based on a review of its 
                public transportation supportive land use 
                policies, cost effectiveness, and effect on 
                local economic development; and
                    ``(C) supported by an acceptable degree of 
                local financial commitment.
            ``(3) Planning and alternatives.--In evaluating a 
        project under paragraph (2)(A), the Secretary shall 
        analyze and consider the results of planning and 
        alternatives analysis for the project.
            ``(4) Project justification.--For purposes of 
        making the finding under paragraph (2)(B), the 
        Secretary shall--
                    ``(A) determine the degree to which the 
                project is consistent with local land use 
                policies and is likely to achieve local 
                developmental goals;
                    ``(B) determine the cost effectiveness of 
                the project at the time of the initiation of 
                revenue service;
                    ``(C) determine the degree to which the 
                project will have a positive effect on local 
                economic development;
                    ``(D) consider the reliability of the 
                forecasting methods used to estimate costs and 
                ridership associated with the project; and
                    ``(E) consider other factors that the 
                Secretary determines appropriate to carry out 
                this subsection.
            ``(5) Local financial commitment.--
                    ``(A) In general.--For purposes of 
                paragraph (2)(C), the Secretary shall require 
                that each proposed local source of capital and 
                operating financing is stable, reliable, and 
                available within the proposed project 
                timetable.
                    ``(B) Consideration of fiscal capacity of 
                state and local governments.--If the Secretary 
                gives priority to financing projects under this 
                subsection that include more than the non-
                Federal share required under subsection (h), 
                the Secretary shall give equal consideration to 
                differences in the fiscal capacity of State and 
                local governments.
            ``(6) Advancement of project to development and 
        construction.--
                    ``(A) General rule.--A proposed project 
                under this subsection may advance from planning 
                and alternatives analysis to project 
                development and construction only if the 
                Secretary finds that the project meets the 
                requirements of this subsection and there is a 
                reasonable likelihood that the project will 
                continue to meet such requirements.
                    ``(B) Evaluation.--In making the findings 
                under subparagraph (A), the Secretary shall 
                evaluate and rate the project as high, medium-
                high, medium, medium-low, or low based on the 
                results of the analysis of the project 
                justification criteria and the degree of local 
                financial commitment, as required by this 
                subsection.
            ``(7) Contents of project construction grant 
        agreement.--A project construction grant agreement 
        under this subsection shall specify the scope of the 
        project to be constructed, the estimated net project 
        cost of the project, the schedule underwhich the 
project shall be constructed, the maximum amount of funding to be 
obtained under this subsection, the proposed schedule for obligation of 
future Federal grants, and the sources of funding from other than the 
Government. The agreement may include a commitment on the part of the 
Secretary to provide funding for the project in future fiscal years.
            ``(8) Limitation on entry into construction grant 
        agreement.--The Secretary may enter into a project 
        construction grant agreement for a project under this 
        subsection only if the project is authorized for 
        construction and has been rated as high, medium-high, 
        or medium under this subsection.
            ``(9) Regulations.--Not later than 240 days after 
        the date of enactment of the Federal Public 
        Transportation Act of 2005, the Secretary shall issue 
        regulations establishing an evaluation and rating 
        process for proposed projects under this subsection 
        that is based on the results of project justification 
        and local financial commitment, as required under this 
        subsection.
            ``(10) Fixed guideway capital project.--In this 
        subsection, the term `fixed guideway capital project' 
        includes a corridor-based bus capital project if--
                    ``(A) a substantial portion of the project 
                operates in a separate right-of-way dedicated 
                for public transit use during peak hour 
                operations; or
                    ``(B) the project represents a substantial 
                investment in a defined corridor as 
                demonstrated by features such as park-and-ride 
                lots, transit stations, bus arrival and 
                departure signage, intelligent transportation 
                systems technology, traffic signal priority, 
                off-board fare collection, advanced bus 
                technology, and other features that support the 
                long-term corridor investment.
            ``(11) Impact report.--
                    ``(A) In general.--Not later than 120 days 
                after the date of enactment of the Federal 
                Public Transportation Act of 2005, the Federal 
                Transit Administration shall submit to the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives a report on the methodology 
                to be used in evaluating the land use and 
                economic development impacts of non-fixed 
                guideway or partial fixed guideway projects.
                    ``(B) Contents.--The report submitted under 
                subparagraph (A) shall address any qualitative 
                and quantitative differences between fixed 
                guideway and non-fixed guideway projects with 
                respect to land use and economic development 
                impacts.
    ``(f) Previously Issued Letter of Intent or Full Funding 
Grant Agreement.--Subsections (d) and (e) do not apply to 
projects for which the Secretary has issued a letter of intent 
or entered into a full funding grant agreement before the date 
of enactment of the Federal Public Transportation Act of 2005. 
Subsection (e) also does not apply to projects for which the 
Secretary has received an application for final design before 
such date of enactment.
    ``(g) Letters of Intent, Full Funding Grant Agreements, and 
Early Systems Work Agreements.--
            ``(1) Letters of intent.--
                    ``(A) Amounts intended to be obligated.--
                The Secretary may issue a letter of intent to 
                an applicant announcing an intention to 
                obligate, for a capital project under this 
                section, an amount from future available budget 
                authority specified in law that is not more 
                than the amount stipulated as the financial 
                participation of the Secretary in the project. 
                When a letter is issued for fixed guideway 
                projects, the amount shall be sufficient to 
                complete at least an operable segment.
                    ``(B) Treatment.--The issuance of a letter 
                under subparagraph (A) is deemed not to be an 
                obligation under sections 1108(c), 1108(d), 
                1501, and 1502(a) of title 31 or an 
                administrative commitment.
            ``(2) Full funding grant agreements.--
                    ``(A) Terms.--The Secretary may make a full 
                funding grant agreement with an applicant. The 
                agreement shall--
                            ``(i) establish the terms of 
                        participation by the Government in a 
                        project under this section;
                            ``(ii) establish the maximum amount 
                        of Government financial assistance for 
                        the project;
                            ``(iii) cover the period of time 
                        for completing the project, including a 
                        period extending beyond the period of 
                        an authorization; and
                            ``(iv) make timely and efficient 
                        management of the project easier 
                        according to the law of the United 
                        States.
                    ``(B) Special financial rules.--
                            ``(i) In general.--A full funding 
                        grant agreement under this paragraph 
                        obligates an amount of available budget 
                        authority specified in law and may 
                        include a commitment, contingent on 
                        amounts to be specified in law in 
                        advance for commitments under this 
                        paragraph, to obligate an additional 
                        amount from future available budget 
                        authority specified in law.
                            ``(ii) Statement of contingent 
                        commitment.--The agreement shall state 
                        that the contingent commitment is not 
                        an obligation of the Government.
                            ``(iii) Interest and other 
                        financing costs.--Interest and other 
                        financing costs of efficiently carrying 
                        out a part of the project within a 
                        reasonable time are a cost of carrying 
                        out the project under a full funding 
                        grant agreement, except that eligible 
                        costs may not be more than the cost of 
                        the most favorable financing terms 
                        reasonably available for the project at 
                        the time of borrowing. The applicant 
                        shall certify, in a way satisfactory to 
                        the Secretary, that the applicant has 
                        shown reasonable diligence in seeking 
                        the most favorable financing terms.
                            ``(iv) Completion of operable 
                        segment.--The amount stipulated in an 
                        agreement under this paragraph for a 
                        fixed guideway project shall be 
                        sufficient to complete at least an 
                        operable segment.
                    ``(C) Before and after study.--
                            ``(i) In general.--A full funding 
                        grant agreement under this paragraph 
                        shall require the applicant to conduct 
                        a study that--
                                    ``(I) describes and 
                                analyzes the impacts of the new 
                                fixed guideway capital project 
                                on transit services and transit 
                                ridership;
                                    ``(II) evaluates the 
                                consistency of predicted and 
                                actual project characteristics 
                                and performance; and
                                    ``(III) identifies sources 
                                of differences between 
                                predicted and actual outcomes.
                            ``(ii) Information collection and 
                        analysis plan.--
                                    ``(I) Submission of plan.--
                                Applicants seeking an agreement 
                                under this paragraph shall 
                                submit a complete plan for the 
                                collection and analysis of 
                                information to identify the 
                                impacts of the new fixed 
                                guideway capital project and 
                                the accuracy of the forecasts 
                                prepared during the development 
                                of the project. Preparation of 
                                this plan shall be included in 
                                the full funding grant 
                                agreement as an eligible 
                                activity.
                                    ``(II) Contents of plan.--
                                The plan submitted under 
                                subclause (I) shall provide 
                                for--
                                            ``(aa) the 
                                        collection of data on 
                                        the current transit 
                                        system regarding 
                                        transit service levels 
                                        and ridership patterns, 
                                        including origins and 
                                        destinations, access 
                                        modes, trip purposes, 
                                        and rider 
                                        characteristics;
                                            ``(bb) 
                                        documentation of the 
                                        predicted scope, 
                                        service levels, capital 
                                        costs, operating costs, 
                                        and ridership of the 
                                        project;
                                            ``(cc) collection 
                                        of data on the transit 
                                        system 2 years after 
                                        the opening of the new 
                                        fixed guideway capital 
                                        project, including 
                                        analogous information 
                                        on transit service 
                                        levels and ridership 
                                        patterns and 
                                        information on the as-
                                        built scope and capital 
                                        costs of the project; 
                                        and
                                            ``(dd) analysis of 
                                        the consistency of 
                                        predicted project 
                                        characteristics with 
                                        the after data.
                    ``(D) Collection of data on current 
                system.--To be eligible for a full funding 
                grant agreement under this paragraph, 
                recipients shall have collected data on the 
                current system, according to the plan required, 
                before the beginning of construction of the 
                proposed new start project. Collection of this 
                data shall be included in the full funding 
                grant agreement as an eligible activity.
            ``(3) Early system work agreements.--
                    ``(A) Conditions.--The Secretary may make 
                an early systems work agreement with an 
                applicant if a record of decision under the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) has been issued on the 
                project and the Secretary finds there is reason 
                to believe--
                            ``(i) a full funding grant 
                        agreement for the project will be made; 
                        and
                            ``(ii) the terms of the work 
                        agreement will promote ultimate 
                        completion of the project more rapidly 
                        and at less cost.
                    ``(B) Contents.--
                            ``(i) In general.--A work agreement 
                        under this paragraph obligates an 
                        amount of available budget authority 
                        specified in law and shall provide for 
                        reimbursement of preliminary costs of 
                        carrying out the project, including 
                        land acquisition, timely procurement of 
                        system elements for which 
                        specifications are decided, and other 
                        activities the Secretary decides are 
                        appropriate to make efficient, long-
                        term project management easier.
                            ``(ii) Period covered.--A work 
                        agreement under this paragraph shall 
                        cover the period of time the Secretary 
                        considers appropriate. The period may 
                        extend beyond the period of current 
                        authorization.
                            ``(iii) Interest and other 
                        financing costs.--Interest and other 
                        financing costs of efficiently carrying 
                        out the work agreement within a 
                        reasonable time are a cost of carrying 
                        out the agreement, except that eligible 
                        costs may not be more than the cost of 
                        the most favorable financing terms 
                        reasonably available for the project at 
                        the time of borrowing. The applicant 
                        shall certify, in a way satisfactory to 
                        the Secretary, that the applicant has 
                        shown reasonable diligence in seeking 
                        the most favorable financing terms.
                            ``(iv) Failure to carry out 
                        project.--If an applicant does not 
                        carry out the project for reasons 
                        within the control of the applicant, 
                        the applicant shall repay all 
                        Government payments made under the work 
                        agreement plus reasonable interest and 
                        penalty charges the Secretary 
                        establishes in the agreement.
            ``(4) Limitation on amounts.--
                    ``(A) Major capital investment grants 
                contingent commitment authority.--The total 
                estimated amount of future obligations of the 
                Government and contingent commitments to incur 
                obligations covered by all outstanding letters 
                of intent, full funding grant agreements, and 
                early systems work agreements under this 
                subsection for major new fixed guideway capital 
                projects may be not more than the greater of 
                the amount authorized under sections 5338(a)(3) 
                and 5338(c) for such projects or an amount 
                equivalent to the last 3 fiscal years of 
                funding allocated under subsections (m)(1)(A) 
                and (m)(2)(A)(ii) for such projects, less an 
                amount the Secretary reasonably estimates is 
                necessary for grants under this section for 
                those of such projects that are not covered by 
                a letter or agreement. The total amount covered 
                by new letters and contingent commitments 
                included in full funding grant agreements and 
                early systems work agreements for such projects 
                may be not more than a limitation specified in 
                law.
                    ``(B) Other contingent commitment 
                authority.--The total estimated amount of 
                future obligations of the Government and 
                contingent commitments to incur obligations 
                covered by all project construction grant 
                agreements and early system work agreements 
                under this subsection for small capital 
                projects described in subsection (e) may be not 
                more than the greater of the amount allocated 
                under subsection (m)(2)(A)(i) for such projects 
                or an amount equivalent to the last fiscal year 
                of funding allocated under such subsection for 
                such projects, less an amount the Secretary 
                reasonably estimates is necessary for grants 
                under this section for those of such projects 
                that are not covered by an agreement. The total 
                amount covered by new contingent commitments 
                included in project construction grant 
                agreements and early systems work agreements 
                for such projects may be not more than a 
                limitation specified in law.
                    ``(C) Inclusion of certain commitments.--
                Future obligations of the Government and 
                contingent commitments made against the 
                contingent commitment authority under section 
                3032(g)(2) of the Intermodal Surface 
                Transportation Efficiency Act of 1991 (106 
                Stat. 2125) for the San Francisco BART to the 
                Airport project for fiscal years 2002, 2003, 
                2004, 2005, and 2006 shall be charged against 
                section 3032(g)(2) of that Act.
                    ``(D) Appropriation required.--An 
                obligation may be made under this subsection 
                only when amounts are appropriated for the 
                obligation.
            ``(5) Notification of congress.--At least 60 days 
        before issuing a letter of intent or entering into a 
        full funding grant agreement or project construction 
        grant agreement under this section, the Secretary shall 
        notify, in writing, the Committees on Transportation 
        and Infrastructure and Appropriations of the House of 
        Representatives and the Committees on Banking, Housing, 
        and Urban Affairs and Appropriations of the Senate of 
        the proposed letter or agreement. The Secretary shall 
        include with the notification a copy of the proposed 
        letter or agreement as well as the evaluations and 
        ratings for the project.
    ``(h) Government's Share of Net Project Cost.--
            ``(1) In general.--Based on engineering studies, 
        studies of economic feasibility, and information on the 
        expected use of equipment or facilities, the Secretary 
        shall estimate the net project cost. A grant for the 
        project shall be for 80 percent of the net capital 
        project cost, unless the grant recipient requests a 
        lower grant percentage.
            ``(2) Adjustment for completion under budget.--The 
        Secretary may adjust the final net project cost of a 
        new fixed guideway capital project evaluated under 
        subsections (d) and (e) to include the cost of eligible 
        activities not included in the originally defined 
        project if the Secretary determines that the originally 
        defined project has been completed at a cost that is 
        significantly below the original estimate.
            ``(3) Maximum government share.--The Secretary may 
        provide a higher grant percentage than requested by the 
        grant recipient if--
                    ``(A) the Secretary determines that the net 
                project cost of the project is not more than 10 
                percent higher than the net project cost 
                estimated at the time the project was approved 
                for advancement into preliminary engineering; 
                and
                    ``(B) the ridership estimated for the 
                project is not less than 90 percent of the 
                ridership estimated for the project at the time 
                the project was approved for advancement into 
                preliminary engineering.
            ``(4) Remainder of net project cost.--The remainder 
        of net project costs shall be provided from an 
        undistributed cash surplus, a replacement or 
        depreciation cash fund or reserve, or new capital.
            ``(5) Limitation on statutory construction.--
        Nothing in this section, including paragraph (1) and 
        subsections (d)(4)(B)(v) and (e)(5), shall be construed 
        as authorizing the Secretary to require a non-Federal 
        financial commitment for a project that is more than 20 
        percent of the net capital project cost.
            ``(6) Special rule for rolling stock costs.--In 
        addition to amounts allowed pursuant to paragraph (1), 
        a planned extension to a fixed guideway system may 
        include the cost of rolling stock previously purchased 
        if the applicant satisfies the Secretary that only 
        amounts other than amounts of the Government were used 
        and that the purchase was made for use on the 
        extension. A refund or reduction of the remainder may 
        be made only if a refund of a proportional amount of 
        the grant of the Government is made at the same time.
            ``(7) Limitation on applicability.--This subsection 
        does not apply to projects for which the Secretary has 
        entered into a full funding grant agreement before the 
        date of enactment of the Federal Public Transportation 
        Act of 2005.
    ``(i) Undertaking Projects in Advance.--
            ``(1) In general.--The Secretary may pay the 
        Government's share of the net capital project cost to a 
        State or local governmental authority that carries out 
        any part of a project described in this section without 
        the aid of amounts of the Government and according to 
        all applicable procedures and requirements if--
                    ``(A) the State or local governmental 
                authority applies for the payment;
                    ``(B) the Secretary approves the payment; 
                and
                    ``(C) before carrying out the part of the 
                project, the Secretary approves the plans and 
                specifications for the part in the same way as 
                other projects under this section.
            ``(2) Financing costs.--
                    ``(A) In general.--The cost of carrying out 
                part of a project includes the amount of 
                interest earned and payable on bonds issued by 
                the State or local governmental authority to 
                the extent proceeds of the bonds are expended 
                in carrying out the part.
                    ``(B) Limitation on amount of interest.--
                The amount of interest under this paragraph may 
                not be more than the most favorable interest 
                terms reasonably available for the project at 
                the time of borrowing.
                    ``(C) Certification.--The applicant shall 
                certify, in a manner satisfactory to the 
                Secretary, that the applicant has shown 
                reasonable diligence in seeking the most 
                favorable financial terms.
    ``(j) Availability of Amounts.--
            ``(1) In general.--An amount made available or 
        appropriated under section 5338(a)(3)(C)(iii), 
        5338(a)(3)(C)(iv), 5338(b)(2)(E), or 5338(c) for 
        replacement, rehabilitation, and purchase of buses and 
        related equipment and construction of bus-related 
        facilities or for new fixed guideway capital projects 
        shall remain available for 3 fiscal years, including 
        the fiscal year in which the amount is made available 
        or appropriated. Any of such amounts that are 
        unobligated at the end of the 3-fiscal-year period may 
        be used by the Secretary for any purpose under this 
        section.
            ``(2) Use of deobligated amounts.--An amount 
        available under this section that is deobligated may be 
        used for any purpose under this section.
    ``(k) Reports on New Starts.--
            ``(1) Annual report on funding recommendations.--
        Not later than the first Monday in February of each 
        year, the Secretary shall submit to the Committees on 
        Transportation and Infrastructure and Appropriations of 
        the House of Representatives and the Committees on 
        Banking, Housing, and Urban Affairs and Appropriations 
        of the Senate a report that includes--
                    ``(A) a proposal of allocations of amounts 
                to be available to finance grants for new fixed 
                guideway capital projects among applicants for 
                these amounts;
                    ``(B) evaluations and ratings, as required 
                under subsections (d) and (e), for each such 
                project that is authorized by the Federal 
                Public Transportation Act of 2005; and
                    ``(C) recommendations of such projects for 
                funding based on the evaluations and ratings 
                and on existing commitments and anticipated 
                funding levels for the next 3 fiscal years 
                based on information currently available to the 
                Secretary.
            ``(2) Annual gao review.--The Comptroller General 
        shall--
                    ``(A) conduct an annual review of--
                            ``(i) the processes and procedures 
                        for evaluating, rating, and 
                        recommending new fixed guideway capital 
                        projects; and
                            ``(ii) the Secretary's 
                        implementation of such processes and 
                        procedures; and
                    ``(B) report to Congress on the results of 
                such review by May 31 of each year.
    ``(l) Other Reports.--
            ``(1) Before and after study reports.--Not later 
        than the first Monday of August of each year, the 
        Secretary shall submit to the committees referred to in 
        subsection (k)(1) a report containing a summary of the 
        results of the studies conducted under subsection 
        (g)(2)(C).
            ``(2) Contractor performance assessment report.--
                    ``(A) In general.--Not later than 180 days 
                after the enactment of the Federal Public 
                Transportation Act of 2005, and each year 
                thereafter, the Secretary shall submit to the 
                committees referred to in subsection (k)(1) a 
                report analyzing the consistency and accuracy 
                of cost and ridership estimates made by each 
                contractor to public transportation agencies 
                developing new fixed guideway capital projects.
                    ``(B) Contents.--The report submitted under 
                subparagraph (A) shall compare the cost and 
                ridership estimates made at the time projects 
                are approved for entrance into preliminary 
                engineering with--
                            ``(i) estimates made at the time 
                        projects are approved for entrance into 
                        final design;
                            ``(ii) costs and ridership when the 
                        project commences revenue operation; 
                        and
                            ``(iii) costs and ridership when 
                        the project has been in operation for 2 
                        years.
                    ``(C) Considerations.--In making 
                comparisons under subparagraph (B), the 
                Secretary shall consider factors having an 
                impact on costs and ridership not under the 
                control of the contractor. The Secretary shall 
                also consider the role taken by each contractor 
                in the development of the project.
            ``(3) Contractor performance incentive report.--Not 
        later than 180 days after the enactment of the Federal 
        Public Transportation Act of 2005, the Secretary shall 
        submit to the committees referred to in subsection 
        (k)(1) a report on the suitability of allowing 
        contractors to public transportation agencies that 
        undertake new fixed guideway capital projects under 
        this section to receive performance incentive awards if 
        a project is completed for less than the original 
        estimated cost.
    ``(m) Allocating Amounts.--
            ``(1) Fiscal year 2005.--Of the amounts made 
        available or appropriated for fiscal year 2005 under 
        section 5338(a)(3)--
                    ``(A) $1,437,829,600 shall be allocated for 
                new fixed capital projects under subsection 
                (d);
                    ``(B) $1,204,684,800 shall be allocated for 
                capital projects for fixed guideway 
                modernization; and
                    ``(C) $669,600,000 shall be allocated for 
                capital projects for buses and bus-related 
                equipment and facilities.
            ``(2) Fiscal years 2006 through 2009.--The amounts 
        made available or appropriated for fiscal years 2006 
        through 2009 under sections 5338(b) and 5338(c) shall 
        be allocated as follows:
                    ``(A) Major capital projects.--Of the 
                amounts appropriated under section 5338(c) for 
                major capital projects--
                            ``(i) $200,000,000 for each of 
                        fiscal years 2007 through 2009 shall be 
                        allocated for projects for new fixed 
                        guideway capital projects of less than 
                        $75,000,000 in accordance with 
                        subsection (e); and
                            ``(ii) the remainder shall be 
                        allocated for major new fixed guideway 
                        capital projects in accordance with 
                        subsection (d).
                    ``(B) Fixed guideway modernization.--The 
                amounts made available under section 
                5338(b)(2)(D) shall be allocated for capital 
                projects for fixed guideway modernization.
                    ``(C) Buses and bus-related equipment and 
                facilities.--The amounts made available under 
                section 5338(b)(2)(E) shall be allocated for 
                capital projects for buses and bus-related 
                equipment and facilities.
            ``(3) Fixed guideway modernization.--The amounts 
        made available for fixed guideway modernization under 
        section 5338(b)(2)(D) for fiscal year 2006 and each 
        fiscal year thereafter shall be allocated in accordance 
        with section 5337.
            ``(4) Preliminary engineering and alternatives 
        analysis.--Not more that 8 percent of the allocation 
        described in paragraph (1)(A) may be expended on 
        alternatives analysis and preliminary engineering.
            ``(5) Preliminary engineering.--Not more than 8 
        percent of the allocation described in paragraph (2)(A) 
        may be expended on preliminary engineering.
            ``(6) Funding for ferry boats.--Of the amounts 
        described in paragraphs (1)(A) and (2)(A)--
                    ``(A) $10,400,000 shall be available in 
                fiscal year 2005 for capital projects in Alaska 
                and Hawaii for new fixed guideway systems and 
                extension projects utilizing ferry boats, ferry 
                boat terminals, or approaches to ferry boat 
                terminals;
                    ``(B) $15,000,000 shall be available in 
                each of fiscal years 2006 through 2009 for 
                capital projects in Alaska and Hawaii for new 
                fixed guideway ferry systems and extension 
                projects utilizing ferry boats, ferry boat 
                terminals, or approaches to ferry boat 
                terminals; and
                    ``(C) $5,000,000 shall be available for 
                each of fiscal years 2006 through 2009 for 
                payments to the Denali Commission under the 
                terms of section 307(e) of the Denali 
                Commission Act of 1998 (42 U.S.C. 3121 note) 
                for docks, waterfront development projects, and 
                related transportation infrastructure.
            ``(7) Bus and bus facility grants.--The amounts 
        made available under paragraphs (1)(C) and (2)(C) shall 
        be allocated as follows:
                    ``(A) Ferry boat systems.--$10,000,000 
                shall be available in each of fiscal years 2006 
                through 2009 for ferry boats or ferry terminal 
                facilities. Of such funds, the following 
                amounts shall be set aside for each fiscal 
                year:
                            ``(i) $2,500,000 for the San 
                        Francisco Water Transit Authority.
                            ``(ii) $2,500,000 for the 
                        Massachusetts Bay Transportation 
                        Authority Ferry System.
                            ``(iii) $1,000,000 for the Camden, 
                        New Jersey Ferry System.
                            ``(iv) $1,000,000 for the 
                        Governor's Island, New York Ferry 
                        System
                            ``(v) $1,000,000 for the 
                        Philadelphia Penn's Landing Ferry 
                        Terminal.
                            ``(vi) $1,000,000 for the Staten 
                        Island Ferry.
                            ``(vii) $650,000 for the Maine 
                        State Ferry Service, Rockland.
                            ``(viii) $350,000 for the Swans 
                        Island, Maine Ferry Service.
                    ``(B) Fuel cell bus program.--The following 
                amounts shall be set aside for the national 
                fuel cell bus technology development program 
                under section 3039 of the Federal Public 
                Transportation Act of 2005:
                            ``(i) $11,250,000 for fiscal year 
                        2006.
                            ``(ii) $11,500,000 for fiscal year 
                        2007.
                            ``(iii) $12,750,000 for fiscal year 
                        2008.
                            ``(iv) $13,500,000 for fiscal year 
                        2009.
                    ``(C) Projects not in urbanized areas.--Not 
                less than 5.5 percent shall be available in 
                each fiscal year for projects that are not in 
                urbanized areas.
                    ``(D) Intermodal terminals.--Not less than 
                $35,000,000 shall be available in each fiscal 
                year for intermodal terminal projects, 
                including the intercity bus portion of such 
                projects.
                    ``(E) Bus testing.--$3,000,000 shall be 
                available in each fiscal year for bus testing 
                under section 5318.
            ``(8) Bus and bus facility grant considerations.--
        In making grants under paragraphs (1)(C) and (2)(C), 
        the Secretary shall consider the age and condition of 
        buses, bus fleets, related equipment, and bus-related 
        facilities.''.
    (b) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5309 and 
inserting the following:

``5309. Capital investment grants.''.

    (c) Public-Private Partnership Pilot Program.--
            (1) Establishment.--The Secretary may establish and 
        implement a pilot program to demonstrate the advantages 
        and disadvantages of public-private partnerships for 
        certain new fixed guideway capital projects.
            (2) Limitation on the number of facilities.--The 
        Secretary may permit the establishment of 3 public-
        private partnerships for new fixed guideway capital 
        projects.
            (3) Eligibility.--To be eligible to participate in 
        the public-private partnership program, a recipient 
        shall submit to the Secretary an application that 
        contains, at a minimum, the following:
                    (A) An identification of the new fixed 
                guideway capital project that has not entered 
                into a full funding grant agreement or project 
                construction grant agreement with the Federal 
                Transit Administration.
                    (B) A schedule and finance plan for the 
                construction of and operation of the proposed 
                project.
                    (C) An analysis of the costs, benefits, and 
                efficiencies of the proposed public-private 
                partnership agreement.
            (4) Selection criteria.--The Secretary may approve 
        the application of a recipient under this subsection if 
        the Secretary determines that--
                    (A) State and local laws permit public-
                private agreements for all phases of project 
                development, construction, and operation of the 
                project;
                    (B) the recipient is unable to advance the 
                project due to fiscal constraints; and
                    (C) the plan implementing the public-
                private partnership is justified.
            (5) Program term.--The Secretary may approve an 
        application of a recipient for a public-private 
        partnership for fiscal years 2006 through 2009.
            (6) Report to congress.--Not later than 2 years 
        after the date of enactment of this Act, the Secretary 
        shall transmit to the Committee on Transportation and 
        Infrastructure of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate a report containing an assessment of the costs, 
        benefits, and efficiencies of a public-private 
        partnership program for new fixed guideway capital 
        projects.
    (d) Restrictions on Use of Bus Category Funds for Fixed 
Guideway Projects.--Funds provided to grantees under the bus 
and bus facility category for fixed guideway ferry and gondola 
projects in the Department of Transportation and Related 
Agencies Appropriations Acts for any of fiscal years 1998 
through 2005, or accompanying committee reports, that remain 
available and unobligated may be used for new fixed guideway 
capital projects under section 5309 of title 49, United States 
Code. Funds made available to the same grantees for similar 
projects under the bus and bus facility category of section 
5309 of title 49, United States Code, in fiscal years 2006 
through 2009 may be used for fixed guideway projects under that 
section.
    (e) Miami Metrorail.--The Secretary shall credit funds 
provided by the Florida department of transportation for the 
extension of the Miami Metrorail System from Earlington Heights 
to the Miami Intermodal Center to satisfy the matching 
requirements of section 5309(h)(4) of title 49, United States 
Code, for the Miami North Corridor and Miami East-West Corridor 
projects.
    (f) Adjustments.--The adjustments made in the Federal 
Transit Administrator's Dear Colleague letter of April 29, 
2005, to require a ``medium'' for the cost-effectiveness 
rating, in order for fixed guideway projects to be recommended 
for funding by the Federal Transit Administration, shall not 
apply to the following:
            (1) San Francisco Muni--Third Street LRT Phase I/
        II.
            (2) Santa Clara Valley Transit Authority--Silicon 
        Valley Rapid Transit Corridor.
            (3) Washington County, Oregon--Wilsonville to 
        Beaverton Commuter Rail.
            (4) Dulles Corridor Metrorail Project--Extension to 
        Wiehle Avenue.

SEC. 3012. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND 
                    INDIVIDUALS WITH DISABILITIES.

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

``Sec. 5310. Formula grants for special needs of elderly individuals 
                    and individuals with disabilities

    ``(a) General Authority.--
            ``(1) Grants.--The Secretary may make grants to 
        States and local governmental authorities under this 
        section for public transportation capital projects 
        planned, designed, and carried out to meet the special 
        needs of elderly individuals and individuals with 
        disabilities.
            ``(2) Subrecipients.--A State that receives a grant 
        under this section may allocate the amounts provided 
        under the grant to--
                    ``(A) a private nonprofit organization, if 
                the public transportation service provided 
                under paragraph (1) is unavailable, 
                insufficient, or inappropriate; or
                    ``(B) a governmental authority that--
                            ``(i) is approved by the State to 
                        coordinate services for elderly 
                        individuals and individuals with 
                        disabilities; or
                            ``(ii) certifies that there are not 
                        any nonprofit organizations readily 
                        available in the area to provide the 
                        services described under paragraph (1).
            ``(3) Acquiring public transportation services.--A 
        public transportation capital project under this 
        section may include acquisition of public 
        transportation services as an eligible capital expense.
            ``(4) Administrative expenses.--A State or local 
        governmental authority may use not more than 10 percent 
        of the amounts apportioned to the State under this 
        section to administer, plan, and provide technical 
        assistance for a project funded under this section.
    ``(b) Apportionment and Transfers.--
            ``(1) Formula.--The Secretary shall apportion 
        amounts made available to carry out this section under 
        a formula the Secretary administers that considers the 
        number of elderly individuals and individuals with 
        disabilities in each State.
            ``(2) Transfer of funds.--Any funds apportioned to 
        a State under paragraph (1) may be transferred by the 
        State to the apportionments made under sections 5311(c) 
        and 5336 if such funds are only used for eligible 
        projects selected under this section.
    ``(c) Government's Share of Costs.--
            ``(1) Capital projects.--
                    ``(A) In general.--A grant for a capital 
                project under this section shall be for 80 
                percent of the net capital costs of the 
                project, as determined by the Secretary.
                    ``(B) Exception.--A State described in 
                section 120(b) of title 23 shall receive an 
                increased Government share in accordance with 
                the formula under that section.
            ``(2) Remainder.--The remainder of the net project 
        costs--
                    ``(A) may be provided from an undistributed 
                cash surplus, a replacement or depreciation 
                cash fund or reserve, a service agreement with 
                a State or local social service agency or a 
                private social service organization, or new 
                capital;
                    ``(B) may be derived from amounts 
                appropriated or otherwise made available to a 
                department or agency of the Government (other 
                than the Department of Transportation) that are 
                eligible to be expended for transportation; and
                    ``(C) notwithstanding subparagraph (B), may 
                be derived from amounts made available to carry 
                out the Federal lands highway program 
                established by section 204 of title 23.
            ``(3) Use of certain funds.--For purposes of 
        paragraph (2)(B), the prohibitions on the use of funds 
        for matching requirements under section 
        403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(C)(vii)) shall not apply to Federal or State 
        funds to be used for transportation purposes.
    ``(d) Grant Requirements.--
            ``(1) In general.--A grant under this section shall 
        be subject to all requirements of a grant under section 
        5307 to the extent the Secretary determines 
        appropriate.
            ``(2) Certification requirements.--
                    ``(A) Fund transfers.--A grant recipient 
                under this section that transfers funds to a 
                project funded under section 5336 in accordance 
                with subsection (b)(2) shall certify that the 
                project for which the funds are requested has 
                been coordinated with private nonprofit 
                providers of services under this section.
                    ``(B) Project selection and plan 
                development.--Beginning in fiscal year 2007, 
                each grant recipient under this section shall 
                certify that--
                            ``(i) the projects selected were 
                        derived from a locally developed, 
                        coordinated public transit-human 
                        services transportation plan; and
                            ``(ii) the plan was developed 
                        through a process that included 
                        representatives of public, private, and 
                        nonprofit transportation and human 
                        services providers and participation by 
                        the public.
                    ``(C) Allocations to subrecipients.--Each 
                grant recipient under this section shall 
                certify that allocations of the grant to 
                subrecipients, if any, are distributed on a 
                fair and equitable basis.
    ``(e) State Program of Projects.--
            ``(1) In general.--Amounts made available to carry 
        out this section may be used for transportation 
        projects to assist in providing transportation services 
        for elderly individuals and individuals with 
        disabilities that are included in a State program of 
        projects.
            ``(2) Submission and approval.--A State shall 
        submit to the Secretary annually for approval a program 
        of projects. The program shall contain an assurance 
        that the program provides for maximum feasible 
        coordination of transportation services assisted under 
        this section with transportation services assisted by 
        other Government sources.
    ``(f) Leasing Vehicles.--Vehicles acquired under this 
section may be leased to local governmental authorities to 
improve transportation services designed to meet the special 
needs of elderly individuals and individuals with disabilities.
    ``(g) Meal Delivery for Homebound Individuals.--Public 
transportation service providers receiving assistance under 
this section or section 5311(c) may coordinate and assist in 
regularly providing meal delivery service for homebound 
individuals if the delivery service does not conflict with 
providing public transportation service or reduce service to 
public transportation passengers.
    ``(h) Transfers of Facilities and Equipment.--With the 
consent of the recipient in possession of a facility or 
equipment acquired with a grant under this section, a State may 
transfer the facility or equipment to any recipient eligible to 
receive assistance under this chapter if the facility or 
equipment will continue to be used as required under this 
section.''.
    (b) Elderly Individuals and Individuals With Disabilities 
Pilot Program.--
            (1) In general.--In fiscal year 2006, the Secretary 
        shall establish a pilot program that will allow 
        Wisconsin, Alaska, Minnesota, Oregon, and 3 other 
        States selected by the Secretary to use not more than 
        33 percent of the funds apportioned to each State to 
        carry out section 5310 of title 49, United States Code, 
        for operating costs associated with public 
        transportation projects planned, designed, and carried 
        out to meet the special needs of elderly individuals 
        and individuals with disabilities under such section. 
        The Secretary may base the selection of participating 
        States on a State's exemplary coordination of public 
        transit-human services transportation. The Secretary 
        may require participants to collect data necessary to 
        support the report to Congress required by paragraph 
        (7).
            (2) Planning coordination.--Recipients of funds 
        made available consistent with this subsection shall 
        certify that--
                    (A) the projects selected were derived from 
                a locally developed, coordinated public 
                transit-human services transportation plan; and
                    (B) the plan was developed through a 
                process that included representatives of 
                public, private, and nonprofit transportation 
                and human services providers and participation 
                by the public.
            (3) Government's share of costs.--Operating 
        assistance under this subsection may not exceed 50 
        percent of the net operating costs of the project, as 
        determined by the Secretary. The credit for any non-
        Federal share provided under this subsection shall not 
        reduce nor replace State funds required to match 
        Federal funds for formula grants for the special needs 
        of elderly individuals and individuals with 
        disabilities program authorized under section 5310 of 
        title 49, United States Code.
            (4) Remainder.--The remainder of the net project 
        costs--
                    (A) may be provided from an undistributed 
                cash surplus, a replacement or depreciation 
                cash fund or reserve, a service agreement with 
                a State or local social service agency or a 
                private social service organization, or new 
                capital; and
                    (B) may be derived from amounts 
                appropriated to or made available to a 
                department or agency of the Government (other 
                than the Department of Transportation) that are 
                eligible to be expended for transportation.
            (5) Use of certain funds.--For purposes of 
        paragraph (4)(B), the prohibitions on the use of funds 
        for matching requirements under section 
        403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(C)(vii)) shall not apply to Federal or State 
        funds to be used for transportation purposes.
            (6) Eligible activities.--Projects eligible under 
        the pilot program may include the collection of data 
        necessary to support the report to Congress required by 
        paragraph (7).
            (7) Report.--Not later than 2 years after the date 
        of enactment of this Act, the Secretary shall transmit 
        to the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate a 
        report on the pilot program, which may include--
                    (A) the extent to which funds were used to 
                subsidize existing paratransit service provided 
                in compliance with the Americans with 
                Disabilities Act of 1990;
                    (B) whether States participating in the 
                pilot program use the funds to provide services 
                to persons with disabilities that exceed those 
                services required by the Americans with 
                Disabilities Act of 1990 differently than 
                States not in the pilot program;
                    (C) whether States participating in this 
                pilot program use the funds to provide services 
                to individuals with disabilities that exceed 
                those services required by the Americans with 
                Disabilities Act of 1990 to the detriment of 
                other eligible projects;
                    (D) the percentage of funds used to assist 
                elderly individuals;
                    (E) the percentage of funds used to assist 
                individuals with disabilities;
                    (F) the extent to which States 
                participating in this pilot program serve a 
                wider range of elderly, low income, and persons 
                with disabilities populations;
                    (G) whether the pilot program improves 
                services to elderly individuals and individuals 
                with disabilities;
                    (H) the extent to which States 
                participating in the pilot program were able to 
                expand the range of transportation alternatives 
                available to elderly individuals and 
                individuals with disabilities; and
                    (I) whether the pilot program facilitates 
                or discourages coordination with or integration 
                of other funding sources.
            (8) Sunset.--This subsection shall cease to be 
        effective on September 30, 2009.
    (c) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5310 and 
inserting the following:

``5310. Formula grants for special needs of elderly individuals and 
          individuals with disabilities.''.

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

    (a) Definitions.--Section 5311(a) is amended to read as 
follows:
    ``(a) Definitions.--As used in this section, the following 
definitions shall apply:
            ``(1) Recipient.--The term `recipient' means a 
        State or Indian tribe that receives a Federal transit 
        program grant directly from the Federal Government.
            ``(2) Subrecipient.--The term `subrecipient' means 
        a State or local governmental authority, a nonprofit 
        organization, or an operator of public transportation 
        or intercity bus service that receives Federal transit 
        program grant funds indirectly through a recipient.''.
    (b) General Authority.--Section 5311(b) is amended to read 
as follows:
    ``(b) General Authority.--
            ``(1) Grants authorized.--Except as provided by 
        paragraph (2), the Secretary may award grants under 
        this section to recipients located in areas other than 
        urbanized areas for--
                    ``(A) public transportation capital 
                projects;
                    ``(B) operating costs of equipment and 
                facilities for use in public transportation; 
                and
                    ``(C) the acquisition of public 
                transportation services, including service 
                agreements with private providers of public 
                transportation services.
            ``(2) State program.--
                    ``(A) In general.--A project eligible for a 
                grant under this section shall be included in a 
                State program for public transportation service 
                projects, including agreements with private 
                providers of public transportation service.
                    ``(B) Submission to secretary.--Each State 
                shall submit to the Secretary annually the 
                program described in subparagraph (A).
                    ``(C) Approval.--The Secretary may not 
                approve the program unless the Secretary 
                determines that--
                            ``(i) the program provides a fair 
                        distribution of amounts in the State, 
                        including Indian reservations; and
                            ``(ii) the program provides the 
                        maximum feasible coordination of public 
                        transportation service assisted under 
                        this section with transportation 
                        service assisted by other Federal 
                        sources.
            ``(3) Rural transportation assistance program.--
                    ``(A) In general.--The Secretary shall 
                carry out a rural transportation assistance 
                program in other than urbanized areas.
                    ``(B) Grants and contracts.--In carrying 
                out this paragraph, the Secretary may use not 
                more than 2 percent of the amount made 
                available to carry out this section to make 
                grants and contracts for transportation 
                research, technical assistance, training, and 
                related support services in other than 
                urbanized areas.
                    ``(C) Projects of a national scope.--Not 
                more than 15 percent of the amounts available 
                under subparagraph (B) may be used by the 
                Secretary to carry out projects of a national 
                scope, with the remaining balance provided to 
                the States.
            ``(4) Data collection.--Each recipient under this 
        section shall submit an annual report to the Secretary 
        containing information on capital investment, 
        operations, and service provided with funds received 
        under this section, including--
                    ``(A) total annual revenue;
                    ``(B) sources of revenue;
                    ``(C) total annual operating costs;
                    ``(D) total annual capital costs;
                    ``(E) fleet size and type, and related 
                facilities;
                    ``(F) revenue vehicle miles; and
                    ``(G) ridership.''.
    (c) Apportionments.--Section 5311(c) is amended to read as 
follows:
    ``(c) Apportionments.--
            ``(1) Public transportation on indian 
        reservations.--Of the amounts made available or 
        appropriated for each fiscal year pursuant to 
        subsections (a)(1)(C)(v) and (b)(2)(G) of section 5338, 
        the following amounts shall be apportioned for grants 
        to Indian tribes for any purpose eligible under this 
        section, under such terms and conditions as may be 
        established by the Secretary:
                    ``(A) $8,000,000 for fiscal year 2006.
                    ``(B) $10,000,000 for fiscal year 2007.
                    ``(C) $12,000,000 for fiscal year 2008.
                    ``(D) $15,000,000 for fiscal year 2009.
            ``(2) Remaining amounts.--Of the amounts made 
        available or appropriated for each fiscal year pursuant 
        to subsections (a)(1)(C)(v) and (b)(2)(G) of section 
        5338 that are not apportioned under paragraph (1)--
                    ``(A) 20 percent shall be apportioned to 
                the States in accordance with paragraph (3); 
                and
                    ``(B) 80 percent shall be apportioned to 
                the States in accordance with paragraph (4).
            ``(3) Apportionments based on land area in 
        nonurbanized areas.--
                    ``(A) In general.--Subject to subparagraph 
                (B), each State shall receive an amount that is 
                equal to the amount apportioned under paragraph 
                (2)(A) multiplied by the ratio of the land area 
                in areas other than urbanized areas in that 
                State and divided by the land area in all areas 
                other than urbanized areas in the United 
                States, as shown by the most recent decennial 
                census of population.
                    ``(B) Maximum apportionment.--No State 
                shall receive more than 5 percent of the amount 
                apportioned under this paragraph.
            ``(4) Apportionments based on population in 
        nonurbanized areas.--Each State shall receive an amount 
        equal to the amount apportioned under paragraph (2)(B) 
        multiplied by the ratio of the population of areas 
        other than urbanized areas in that State divided by the 
        population of all areas other than urbanized areas in 
        the United States, as shown by the most recent 
        decennial census of population.''.
    (d) Use for Administration, Planning, and Technical 
Assistance.--Section 5311(e) is amended--
            (1) in the subsection heading by inserting ``, 
        Planning,'' after ``Administration'';
            (2) by striking ``(1) The Secretary'' and inserting 
        ``The Secretary'';
            (3) by striking paragraph (2); and
            (4) by striking ``recipient'' and inserting 
        ``subrecipient''.
    (e) Intercity Bus Transportation.--Section 5311(f) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1) A State'' and 
                inserting the following:
            ``(1) In general.--A State'';
                    (B) by striking ``after September 30, 
                1993,''; and
                    (C) by moving subparagraphs (A) through (D) 
                2 ems to the right; and
            (2) in paragraph (2)--
                    (A) by striking ``(2) A State'' and 
                inserting the following:
            ``(2) Certification.--A State''; and
                    (B) by striking ``Secretary of 
                Transportation'' and inserting ``Secretary, 
                after consultation with affected intercity bus 
                service providers,''.
    (f) Government Share of Costs.--Section 5311(g) is amended 
to read as follows:
    ``(g) Government Share of Costs.--
            ``(1) Capital projects.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), a grant awarded under this 
                section for any purpose other than operating 
                assistance shall be for 80 percent of the net 
                capital costs of the project, as determined by 
                the Secretary.
                    ``(B) Exception.--A State described in 
                section 120(b) of title 23 shall receive a 
                Government share of the net capital costs in 
                accordance with the formula under that section.
            ``(2) Operating assistance.--
                    ``(A) In general.--Except as provided by 
                subparagraph (B), a grant made under this 
                section for operating assistance may not exceed 
                50 percent of the net operating costs of the 
                project, as determined by the Secretary.
                    ``(B) Exception.--A State described in 
                section 120(b) of title 23 shall receive a 
                Government share of the net operating costs 
                equal to 62.5 percent of the Government share 
                provided for under paragraph (1)(B).
            ``(3) Remainder.--The remainder of net project 
        costs--
                    ``(A) may be provided from an undistributed 
                cash surplus, a replacement or depreciation 
                cash fund or reserve, a service agreement with 
                a State or local social service agency or a 
                private social service organization, or new 
                capital;
                    ``(B) may be derived from amounts 
                appropriated or otherwise made available to a 
                department or agency of the Government (other 
                than the Department of Transportation) that are 
                eligible to be expended for transportation; and
                    ``(C) notwithstanding subparagraph (B), may 
                be derived from amounts made available to carry 
                out the Federal lands highway program 
                established by section 204 of title 23.
            ``(4) Use of certain funds.--For purposes of 
        paragraph (3)(B), the prohibitions on the use of funds 
        for matching requirements under section 
        403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(C)(vii)) shall not apply to Federal or State 
        funds to be used for transportation purposes.
            ``(5) Limitation on operating assistance.--A State 
        carrying out a program of operating assistance under 
        this section may not limit the level or extent of use 
        of the Government grant for the payment of operating 
        expenses.''.
    (g) Relationship to Other Laws.--Section 5311 is amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsections (i) and (j) as 
        subsections (h) and (i), respectively.
    (h) Waiver Condition.--Section 5311(j)(1) is amended by 
striking ``but the Secretary of Labor may waive the application 
of section 5333(b)'' and inserting ``if the Secretary of Labor 
utilizes a special warranty that provides a fair and equitable 
arrangement to protect the interests of employees''.
    (i) Correction to Chapter Analysis.--The analysis for 
chapter 53 is amended by striking the item relating to section 
5311 and inserting the following:

``5311. Formula grants for other than urbanized areas.''.

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

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

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

            (2) Chapter analysis.--The analysis for chapter 53 
        is amended by striking the item relating to section 
        5312 and inserting the following:

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

SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM.

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

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

            (2) Chapter analysis.--The analysis for chapter 53 
        is amended by striking the item relating to section 
        5313 and inserting the following:

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

SEC. 3016. NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS.

    (a) In General.--Section 5314 is amended--
            (1) by striking the section heading and inserting 
        the following:

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

            (2) in subsection (a)(1)--
                    (A) by striking ``subsections (d) and 
                (h)(7) of section 5338 of this title'' and 
                inserting ``section 5338(d)'';
                    (B) by striking ``and contracts'' and 
                inserting ``, contracts, cooperative 
                agreements, or other agreements'';
                    (C) by striking ``5303-5306,''; and
                    (D) by striking ``5317,'';
            (3) in subsection (a)(2) by striking ``Of the 
        amounts'' and all that follows through ``$3,000,000 
        to'' and inserting ``The Secretary shall'';
            (4) by striking subsection (a)(4)(B);
            (5) by redesignating subsection (a)(4)(C) as 
        subsection (a)(4)(B);
            (6) by adding at the end of subsection (a) the 
        following:
            ``(6) Medical transportation demonstration 
        grants.--
                    ``(A) Grants authorized.--The Secretary may 
                award demonstration grants, from funds made 
                available under paragraph (1), to eligible 
                entities to provide transportation services to 
                individuals to access dialysis treatments and 
                other medical treatments for renal disease.
                    ``(B) Eligible entities.--An entity shall 
                be eligible to receive a grant under this 
                paragraph if the entity--
                            ``(i) meets the conditions 
                        described in section 501(c)(3) of the 
                        Internal Revenue Code of 1986; or
                            ``(ii) is an agency of a State or 
                        unit of local government.
                    ``(C) Use of funds.--Grant funds received 
                under this paragraph may be used to provide 
                transportation services to individuals to 
                access dialysis treatments and other medical 
                treatments for renal disease.
                    ``(D) Application.--
                            ``(i) In general.--Each eligible 
                        entity desiring a grant under this 
                        paragraph shall submit an application 
                        to the Secretary at such time, at such 
                        place, and containing such information 
                        as the Secretary may reasonably 
                        require.
                            ``(ii) Selection of grantees.--In 
                        awarding grants under this paragraph, 
                        the Secretary shall give preference to 
                        eligible entities from communities 
                        with--
                                    ``(I) high incidence of 
                                renal disease; and
                                    ``(II) limited access to 
                                dialysis facilities.
                    ``(E) Rulemaking.--The Secretary shall 
                issue regulations to implement and administer 
                the grant program established under this 
                paragraph.
                    ``(F) Report.--The Secretary shall submit a 
                report on the results of the demonstration 
                projects funded under this paragraph to the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives.''.
            (7) in subsection (b) by striking ``or contract'' 
        and all that follows through ``section,'' and inserting 
        ``, contract, cooperative agreement, or other agreement 
        under subsection (a) or section 5312,''; and
    (b) National Technical Assistance Center for Senior 
Transportation.--Section 5314 is amended by adding at the end 
the following:
    ``(c) National Technical Assistance Center for Senior 
Transportation.--
            ``(1) Establishment.--The Secretary shall award 
        grants to a national not-for-profit organization for 
        the establishment and maintenance of a national 
        technical assistance center.
            ``(2) Eligibility.--An organization shall be 
        eligible to receive a grant under paragraph (1) if the 
        organization--
                    ``(A) focuses significantly on serving the 
                needs of the elderly;
                    ``(B) has demonstrated knowledge and 
                expertise in senior transportation policy and 
                planning issues;
                    ``(C) has affiliates in a majority of the 
                States;
                    ``(D) has the capacity to convene local 
                groups to consult on operation and development 
                of senior transportation programs; and
                    ``(E) has established close working 
                relationships with the Federal Transit 
                Administration and the Administration on Aging.
            ``(3) Use of funds.--The national technical 
        assistance center established under this section 
        shall--
                    ``(A) gather best practices from throughout 
                the Nation and provide such practices to local 
                communities that are implementing senior 
                transportation programs;
                    ``(B) work with teams from local 
                communities to identify how the communities are 
                successfully meeting the transportation needs 
                of senior citizens and any gaps in services in 
                order to create a plan for an integrated senior 
                transportation program;
                    ``(C) provide resources on ways to pay for 
                senior transportation services;
                    ``(D) create a web site to publicize and 
                circulate information on senior transportation 
                programs;
                    ``(E) establish a clearinghouse for print, 
                video, and audio resources on senior mobility; 
                and
                    ``(F) administer the demonstration grant 
                program established under paragraph (4).
            ``(4) Grants authorized.--
                    ``(A) In general.--The national technical 
                assistance center established under this 
                section, in consultation with the Federal 
                Transit Administration, shall award senior 
                transportation demonstration grants to--
                            ``(i) local transportation 
                        organizations;
                            ``(ii) State agencies;
                            ``(iii) units of local government; 
                        and
                            ``(iv) nonprofit organizations.
                    ``(B) Use of funds.--Grant funds received 
                under this paragraph may be used to--
                            ``(i) evaluate the state of 
                        transportation services for senior 
                        citizens;
                            ``(ii) recognize barriers to 
                        mobility that senior citizens encounter 
                        in their communities;
                            ``(iii) establish partnerships and 
                        promote coordination among community 
                        stakeholders, including public, not-
                        for-profit, and for-profit providers of 
                        transportation services for senior 
                        citizens;
                            ``(iv) identify future 
                        transportation needs of senior citizens 
                        within local communities; and
                            ``(v) establish strategies to meet 
                        the unique needs of healthy and frail 
                        senior citizens.
                    ``(C) Selection of grantees.--The Secretary 
                shall select grantees under this paragraph 
                based on a fair representation of various 
                geographical locations throughout the United 
                States.''.
    (c) Alternative Fuels Study.--
            (1) Study.--The Secretary shall conduct a study of 
        the actions necessary to facilitate the purchase of 
        increased volumes of alternative fuels (as defined in 
        section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
        13211)) for use in public transit vehicles.
            (2) Scope of study.--The study conducted under this 
        subsection shall focus on the incentives necessary to 
        increase the use of alternative fuels in public transit 
        vehicles, including buses, fixed guideway vehicles, and 
        ferries.
            (3) Contents.--The study shall consider--
                    (A) the environmental benefits of increased 
                use of alternative fuels in transit vehicles;
                    (B) existing opportunities available to 
                transit system operators that encourage the 
                purchase of alternative fuels for transit 
                vehicle operation;
                    (C) existing barriers to transit system 
                operators that discourage the purchase of 
                alternative fuels for transit vehicle 
                operation, including situations where 
                alternative fuels that do not require capital 
                improvements to transit vehicles are 
                disadvantaged over fuels that do require such 
                improvements; and
                    (D) the necessary levels and type of 
                support necessary to encourage additional use 
                of alternative fuels for transit vehicle 
                operation.
            (4) Recommendations.--The study shall recommend 
        regulatory and legislative alternatives that will 
        result in the increased use of alternative fuels in 
        transit vehicles.
            (5) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit to 
        the Committee on Banking, Housing, and Urban Affairs of 
        the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives a report 
        containing the results of the study completed under 
        this subsection.
    (d) Conforming Amendment.--The analysis for chapter 53 is 
amended by striking the item relating to section 5314 and 
inserting the following:

``5314. National research programs.''.

SEC. 3017. NATIONAL TRANSIT INSTITUTE.

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

SEC. 3018. JOB ACCESS AND REVERSE COMMUTE FORMULA GRANTS.

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

``Sec. 5316. Job access and reverse commute formula grants

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) Access to jobs project.--The term `access to 
        jobs project' means a project relating to the 
        development and maintenance of transportation services 
        designed to transport welfare recipients and eligible 
        low-income individuals to and from jobs and activities 
        related to their employment, including--
                    ``(A) transportation projects to finance 
                planning, capital, and operating costs of 
                providing access to jobs under this chapter;
                    ``(B) promoting public transportation by 
                low-income workers, including the use of public 
                transportation by workers with nontraditional 
                work schedules;
                    ``(C) promoting the use of transit vouchers 
                for welfare recipients and eligible low-income 
                individuals; and
                    ``(D) promoting the use of employer-
                provided transportation, including the transit 
                pass benefit program under section 132 of the 
                Internal Revenue Code of 1986.
            ``(2) Eligible low-income individual.--The term 
        `eligible low-income individual' means an individual 
        whose family income is at or below 150 percent of the 
        poverty line (as that term is defined in section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 
        9902(2)), including any revision required by that 
        section) for a family of the size involved.
            ``(3) Recipient.--The term `recipient' means a 
        designated recipient (as defined in section 5307(a)(2)) 
        and a State that receives a grant under this section 
        directly.
            ``(4) Reverse commute project.--The term `reverse 
        commute project' means a public transportation project 
        designed to transport residents of urbanized areas and 
        other than urbanized areas to suburban employment 
        opportunities, including any projects to--
                    ``(A) subsidize the costs associated with 
                adding reverse commute bus, train, carpool, van 
                routes, or service from urbanized areas and 
                other than urbanized areas to suburban 
                workplaces;
                    ``(B) subsidize the purchase or lease by a 
                nonprofit organization or public agency of a 
                van or bus dedicated to shuttling employees 
                from their residences to a suburban workplace; 
                or
                    ``(C) otherwise facilitate the provision of 
                public transportation services to suburban 
                employment opportunities.
            ``(5) Subrecipient.--The term `subrecipient' means 
        a State or local governmental authority, nonprofit 
        organization, or operator of public transportation 
        services that receives a grant under this section 
        indirectly through a recipient.
            ``(6) Welfare recipient.--The term `welfare 
        recipient' means an individual who has received 
        assistance under a State or tribal program funded under 
        part A of title IV of the Social Security Act at any 
        time during the 3-year period before the date on which 
        the applicant applies for a grant under this section.
    ``(b) General Authority.--
            ``(1) Grants.--The Secretary may make grants under 
        this section to a recipient for access to jobs and 
        reverse commute projects carried out by the recipient 
        or a subrecipient.
            ``(2) Administrative expenses.--A recipient may use 
        not more than 10 percent of the amounts apportioned to 
        the recipient under this section to administer, plan, 
        and provide technical assistance for a project funded 
        under this section.
    ``(c) Apportionments.--
            ``(1) Formula.--The Secretary shall apportion 
        amounts made available for a fiscal year to carry out 
        this section as follows:
                    ``(A) 60 percent of the funds shall be 
                apportioned among designated recipients (as 
                defined in section 5307(a)(2)) for urbanized 
                areas with a population of 200,000 or more in 
                the ratio that--
                            ``(i) the number of eligible low-
                        income individuals and welfare 
                        recipients in each such urbanized area; 
                        bears to
                            ``(ii) the number of eligible low-
                        income individuals and welfare 
                        recipients in all such urbanized areas.
                    ``(B) 20 percent of the funds shall be 
                apportioned among the States in the ratio 
                that--
                            ``(i) the number of eligible low-
                        income individuals and welfare 
                        recipients in urbanized areas with a 
                        population of less than 200,000 in each 
                        State; bears to
                            ``(ii) the number of eligible low-
                        income individuals and welfare 
                        recipients in urbanized areas with a 
                        population of less than 200,000 in all 
                        States.
                    ``(C) 20 percent of the funds shall be 
                apportioned among the States in the ratio 
                that--
                            ``(i) the number of eligible low-
                        income individuals and welfare 
                        recipients in other than urbanized 
                        areas in each State; bears to
                            ``(ii) the number of eligible low-
                        income individuals and welfare 
                        recipients in other than urbanized 
                        areas in all States.
            ``(2) Use of apportioned funds.--Except as provided 
        in paragraph (3)--
                    ``(A) funds apportioned under paragraph 
                (1)(A) shall be used for projects serving 
                urbanized areas with a population of 200,000 or 
                more;
                    ``(B) funds apportioned under paragraph 
                (1)(B) shall be used for projects serving 
                urbanized areas with a population of less than 
                200,000; and
                    ``(C) funds apportioned under paragraph 
                (1)(C) shall be used for projects serving other 
                than urbanized areas.
            ``(3) Exceptions.--A State may use funds 
        apportioned under paragraphs (1)(B) and (1)(C)--
                    ``(A) for projects serving areas other than 
                the area specified in paragraph (2)(B) or 
                (2)(C), as the case may be, if the Governor of 
                the State certifies that all of the objectives 
                of this section are being met in the specified 
                area; or
                    ``(B) for projects anywhere in the State if 
                the State has established a statewide program 
                for meeting the objectives of this section.
    ``(d) Competitive Process for Grants to Subrecipients.--
            ``(1) Areawide solicitations.--A recipient of funds 
        apportioned under subsection (c)(1)(A) shall conduct, 
        in cooperation with the appropriate metropolitan 
        planning organization, an areawide solicitation for 
        applications for grants to the recipient and 
        subrecipients under this section.
            ``(2) Statewide solicitation.--A recipient of funds 
        apportioned under subsection (c)(1)(B) or (c)(1)(C) 
        shall conduct a statewide solicitation for applications 
        for grants to the recipient and subrecipients under 
        this section.
            ``(3) Application.--Recipients and subrecipients 
        seeking to receive a grant from funds apportioned under 
        subsection (c) shall submit to the recipient an 
        application in the form and in accordance with such 
        requirements as the recipient shall establish.
            ``(4) Grant awards.--The recipient shall award 
        grants under paragraphs (1) and (2) on a competitive 
        basis.
    ``(e) Transfers.--
            ``(1) In general.--A State may transfer any funds 
        apportioned to it under subsection (c)(1)(B) or 
        (c)(1)(C), or both, to an apportionment under section 
        5311(c) or 5336, or both.
            ``(2) Limited to eligible projects.--Any 
        apportionment transferred under this subsection shall 
        be made available only for eligible job access and 
        reverse commute projects as described in this section.
            ``(3) Consultation.--A State may make a transfer of 
        an amount under this subsection only after consulting 
        with responsible local officials and publicly owned 
        operators of public transportation in each area for 
        which the amount originally was awarded under 
        subsection (d)(4).
    ``(f) Grant Requirements.--
            ``(1) In general.--A grant under this section shall 
        be subject to the requirements of section 5307.
            ``(2) Fair and equitable distribution.--A recipient 
        of a grant under this section shall certify to the 
        Secretary that allocations of the grant to 
        subrecipients are distributed on a fair and equitable 
        basis.
    ``(g) Coordination.--
            ``(1) In general.--The Secretary shall coordinate 
        activities under this section with related activities 
        under programs of other Federal departments and 
        agencies.
            ``(2) With nonprofit providers.--A State that 
        transfers funds to an apportionment under section 5336 
        pursuant to subsection (e) shall certify to the 
        Secretary that any project for which the funds are 
        requested under this section has been coordinated with 
        nonprofit providers of services.
            ``(3) Project selection and planning.--A recipient 
        of funds under this section shall certify to the 
        Secretary that--
                    ``(A) the projects selected were derived 
                from a locally developed, coordinated public 
                transit-human services transportation plan; and
                    ``(B) the plan was developed through a 
                process that included representatives of 
                public, private, and nonprofit transportation 
                and human services providers and participation 
                by the public.
    ``(h) Government's Share of Costs.--
            ``(1) Capital projects.--A grant for a capital 
        project under this section may not exceed 80 percent of 
        the net capital costs of the project, as determined by 
        the Secretary.
            ``(2) Operating assistance.--A grant made under 
        this section for operating assistance may not exceed 50 
        percent of the net operating costs of the project, as 
        determined by the Secretary.
            ``(3) Remainder.--The remainder of the net project 
        costs--
                    ``(A) may be provided from an undistributed 
                cash surplus, a replacement or depreciation 
                cash fund or reserve, a service agreement with 
                a State or local social service agency or a 
                private social service organization, or new 
                capital; and
                    ``(B) may be derived from amounts 
                appropriated to or made available to a 
                department or agency of the Government (other 
                than the Department of Transportation) that are 
                eligible to be expended for transportation.
            ``(4) Use of certain funds.--For purposes of 
        paragraph (3)(B), the prohibitions on the use of funds 
        for matching requirements under section 
        403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(C)(vii)) shall not apply to Federal or State 
        funds to be used for transportation purposes.
            ``(5) Limitation on operating assistance.--A 
        recipient carrying out a program of operating 
        assistance under this section may not limit the level 
        or extent of use of the Government grant for the 
        payment of operating expenses.
    ``(i) Program Evaluation.--
            ``(1) Comptroller general.--Beginning one year 
        after the date of enactment of the Federal Public 
        Transportation Act of 2005, and every 2 years 
        thereafter, the Comptroller General shall--
                    ``(A) conduct a study to evaluate the grant 
                program authorized by this section; and
                    ``(B) 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 describing the results of the 
                study under subparagraph (A).
            ``(2) Department of transportation.--Not later than 
        3 years after the date of enactment of Federal Public 
        Transportation Act of 2005, the Secretary shall--
                    ``(A) conduct a study to evaluate the 
                effectiveness of the grant program authorized 
                by this section and the effectiveness of 
                recipients making grants to subrecipients under 
                this section; and
                    ``(B) transmit to the committees referred 
                to in paragraph (1)(B) a report describing the 
                results of the study under subparagraph (A).''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by inserting after the item relating to section 5315 
the following:

``5316. Job access and reverse commute formula grants.''.

    (c) Repeal.--Effective October 1, 2005, section 3037 of the 
Transportation Equity Act for the 21st Century (49 U.S.C. 5309 
note; 112 Stat. 387) is repealed.

SEC. 3019. NEW FREEDOM PROGRAM.

    (a) In General.--Chapter 53 is amended by inserting after 
section 5316 the following:

``Sec. 5317. New freedom program

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) Recipient.--The term `recipient' means a 
        designated recipient (as defined in section 5307(a)(2)) 
        and a State that receives a grant under this section 
        directly.
            ``(2) Subrecipient.--The term `subrecipient' means 
        a State or local governmental authority, nonprofit 
        organization, or operator of public transportation 
        services that receives a grant under this section 
        indirectly through a recipient.
    ``(b) General Authority.--
            ``(1) Grants.--The Secretary may make grants under 
        this section to a recipient for new public 
        transportation services and public transportation 
        alternatives beyond those required by the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
        that assist individuals with disabilities with 
        transportation, including transportation to and from 
        jobs and employment support services.
            ``(2) Administrative expenses.--A recipient may use 
        not more than 10 percent of the amounts apportioned to 
        the recipient under this section to administer, plan, 
        and provide technical assistance for a project funded 
        under this section.
    ``(c) Apportionments.--
            ``(1) Formula.--The Secretary shall apportion 
        amounts made available to carry out this section as 
        follows:
                    ``(A) 60 percent of the funds shall be 
                apportioned among designated recipients (as 
                defined in section 5307(a)(2)) for urbanized 
                areas with a population of 200,000 or more in 
                the ratio that--
                            ``(i) the number of individuals 
                        with disabilities in each such 
                        urbanized area; bears to
                            ``(ii) the number of individuals 
                        with disabilities in all such urbanized 
                        areas.
                    ``(B) 20 percent of the funds shall be 
                apportioned among the States in the ratio 
                that--
                            ``(i) the number of individuals 
                        with disabilities in urbanized areas 
                        with a population of less than 200,000 
                        in each State; bears to
                            ``(ii) the number of individuals 
                        with disabilities in urbanized areas 
                        with a population of less than 200,000 
                        in all States.
                    ``(C) 20 percent of the funds shall be 
                apportioned among the States in the ratio 
                that--
                            ``(i) the number of individuals 
                        with disabilities in other than 
                        urbanized areas in each State; bears to
                            ``(ii) the number of individuals 
                        with disabilities in other than 
                        urbanized areas in all States.
            ``(2) Use of apportioned funds.--Funds apportioned 
        under paragraph (1) shall be used for projects as 
        follows:
                    ``(A) Funds apportioned under paragraph 
                (1)(A) shall be used for projects serving 
                urbanized areas with a population of 200,000 or 
                more.
                    ``(B) Funds apportioned under paragraph 
                (1)(B) shall be used for projects serving 
                urbanized areas with a population of less than 
                200,000.
                    ``(C) Funds apportioned under paragraph 
                (1)(C) shall be used for projects serving other 
                than urbanized areas.
            ``(3) Transfers.--
                    ``(A) In general.--A State may transfer any 
                funds apportioned to it under paragraph (1)(B) 
                or (1)(C), or both, to an apportionment under 
                section 5311(c) or 5336, or both.
                    ``(B) Limited to eligible projects.--Any 
                funds transferred pursuant to this paragraph 
                shall be made available only for eligible 
                projects selected under this section.
                    ``(C) Consultation.--A State may make a 
                transfer of an amount under this subsection 
                only after consulting with responsible local 
                officials and publicly owned operators of 
                public transportation in each area for which 
                the amount originally was awarded under 
                subsection (d)(4).
    ``(d) Competitive Process for Grants to Subrecipients.--
            ``(1) Areawide solicitations.--A recipient of funds 
        apportioned under subsection (c)(1)(A) shall conduct, 
        in cooperation with the appropriate metropolitan 
        planning organization, an areawide solicitation for 
        applications for grants to the recipient and 
        subrecipients under this section.
            ``(2) Statewide solicitation.--A recipient of funds 
        apportioned under subsection (c)(1)(B) or (c)(1)(C) 
        shall conduct a statewide solicitation for applications 
        for grants to the recipient and subrecipients under 
        this section.
            ``(3) Application.--Recipients and subrecipients 
        seeking to receive a grant from funds apportioned under 
        subsection (c) shall submit to the recipient an 
        application in the form and in accordance with such 
        requirements as the recipient shall establish.
            ``(4) Grant awards.--The recipient shall award 
        grants under paragraphs (1) and (2) on a competitive 
        basis.
    ``(e) Grant Requirements.--
            ``(1) In general.--A grant under this section shall 
        be subject to all the requirements of section 5310 to 
        the extent the Secretary considers appropriate.
            ``(2) Fair and equitable distribution.--A recipient 
        of a grant under this section shall certify that 
        allocations of the grant to subrecipients are 
        distributed on a fair and equitable basis.
    ``(f) Coordination.--
            ``(1) In general.--The Secretary shall coordinate 
        activities under this section with related activities 
        under programs of other Federal departments and 
        agencies.
            ``(2) With nonprofit providers.--A recipient that 
        transfers funds to an apportionment under section 5336 
        pursuant to subsection (c)(2) shall certify that the 
        project for which the funds are requested under this 
        section has been coordinated with nonprofit providers 
        of services.
            ``(3) Project selection and planning.--Beginning in 
        fiscal year 2007, a recipient of funds under this 
        section shall certify that--
                    ``(A) the projects selected were derived 
                from a locally developed, coordinated public 
                transit-human services transportation plan; and
                    ``(B) the plan was developed through a 
                process that included representatives of 
                public, private, and nonprofit transportation 
                and human services providers and participation 
                by the public.
    ``(g) Government's Share of Costs.--
            ``(1) Capital projects.--A grant for a capital 
        project under this section may not exceed 80 percent of 
        the net capital costs of the project, as determined by 
        the Secretary.
            ``(2) Operating assistance.--A grant made under 
        this section for operating assistance may not exceed 50 
        percent of the net operating costs of the project, as 
        determined by the Secretary.
            ``(3) Remainder.--The remainder of the net project 
        costs--
                    ``(A) may be provided from an undistributed 
                cash surplus, a replacement or depreciation 
                cash fund or reserve, a service agreement with 
                a State or local social service agency or a 
                private social service organization, or new 
                capital; and
                    ``(B) may be derived from amounts 
                appropriated to or made available to a 
                department or agency of the Government (other 
                than the Department of Transportation) that are 
                eligible to be expended for transportation.
            ``(4) Use of certain funds.--For purposes of 
        paragraph (3)(B), the prohibitions on the use of funds 
        for matching requirements under section 
        403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(C)(vii)) shall not apply to Federal or State 
        funds to be used for transportation purposes.
            ``(5) Limitation on operating assistance.--A 
        recipient carrying out a program of operating 
        assistance under this section may not limit the level 
        or extent of use of the Government grant for the 
        payment of operating expenses.''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by inserting after the item relating to section 5316 
the following:

``5317. New freedom program.''.

SEC. 3020. BUS TESTING FACILITY.

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

SEC. 3021. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC LANDS.

    (a) In General.--Chapter 53 is amended by striking section 
5320 and inserting the following:

``Sec. 5320. Alternative transportation in parks and public lands

    ``(a) In General.--
            ``(1) Authorization.--
                    ``(A) In general.--The Secretary, in 
                consultation with the Secretary of the 
                Interior, may award a grant or enter into a 
                contract, cooperative agreement, interagency 
                agreement, intraagency agreement, or other 
                agreement to carry out a qualified project 
                under this section to enhance the protection of 
                national parks and public lands and increase 
                the enjoyment of those visiting the parks and 
                public lands by--
                            ``(i) ensuring access to all, 
                        including persons with disabilities;
                            ``(ii) improving conservation and 
                        park and public land opportunities in 
                        urban areas through partnering with 
                        State and local governments; and
                            ``(iii) improving park and public 
                        land transportation infrastructure.
                    ``(B) Consultation with other agencies.--To 
                the extent that projects are proposed or funded 
                in eligible areas that are not within the 
                jurisdiction of the Department of the Interior, 
                the Secretary of the Interior shall consult 
                with the heads of the relevant Federal land 
                management agencies in carrying out the 
                responsibilities under this section.
            ``(2) Use of funds.--A grant, cooperative 
        agreement, interagency agreement, intraagency 
        agreement, or other agreement for a qualified project 
        under this section shall be available to finance the 
        leasing of equipment and facilities for use in public 
        transportation, subject to any regulation that the 
        Secretary may prescribe limiting the grant or agreement 
        to leasing arrangements that are more cost-effective 
        than purchase or construction.
            ``(3) Alternative transportation facilities and 
        services.--Projects receiving assistance under this 
        section shall provide alternative transportation 
        facilities and services that complement and enhance 
        existing transportation services in national parks and 
        public lands in a manner that is consistent with 
        Department of Interior and other public land management 
        policies regarding private automobile access to and in 
        such parks and lands.
    ``(b) Definitions.--In this section, the following 
definitions apply:
            ``(1) Eligible area.--The term `eligible area' 
        means any federally owned or managed park, refuge, or 
        recreational area that is open to the general public, 
        including--
                    ``(A) a unit of the National Park System;
                    ``(B) a unit of the National Wildlife 
                Refuge System;
                    ``(C) a recreational area managed by the 
                Bureau of Land Management;
                    ``(D) a recreation area managed by the 
                Bureau of Reclamation; and
                    ``(E) a unit of the National Forest System.
            ``(2) Federal land management agency.--The term 
        `Federal land management agency' means a Federal agency 
        that manages an eligible area.
            ``(3) Alternative transportation.--The term 
        `alternative transportation' means transportation by 
        bus, rail, or any other publicly or privately owned 
        conveyance that provides to the public general or 
        special service on a regular basis, including 
        sightseeing service. Such term also includes a 
        nonmotorized transportation system (including the 
        provision of facilities for pedestrians, bicycles, and 
        nonmotorized watercraft).
            ``(4) Qualified participant.--The term `qualified 
        participant' means--
                    ``(A) a Federal land management agency; or
                    ``(B) a State, tribal, or local 
                governmental authority with jurisdiction over 
                land in the vicinity of an eligible area acting 
                with the consent of the Federal land management 
                agency, alone or in partnership with a Federal 
                land management agency or other governmental or 
                nongovernmental participant.
            ``(5) Qualified project.--The term `qualified 
        project' means a planning or capital project in or in 
        the vicinity of an eligible area that--
                    ``(A) is an activity described in section 
                5302(a)(1)(A), 5303, 5304, 5305, or 5309(b);
                    ``(B) involves--
                            ``(i) the purchase of rolling stock 
                        that incorporates clean fuel technology 
                        or the replacement of buses of a type 
                        in use on the date of enactment of the 
                        Federal Public Transportation Act of 
                        2005 with clean fuel vehicles; or
                            ``(ii) the deployment of 
                        alternative transportation vehicles 
                        that introduce innovative technologies 
                        or methods;
                    ``(C) relates to the capital costs of 
                coordinating the Federal land management agency 
                public transportation systems with other public 
                transportation systems;
                    ``(D) provides a nonmotorized 
                transportation system (including the provision 
                of facilities for pedestrians, bicycles, and 
                nonmotorized watercraft);
                    ``(E) provides waterborne access within or 
                in the vicinity of an eligible area, as 
                appropriate to and consistent with this 
                section; or
                    ``(F) is any other alternative 
                transportation project that--
                            ``(i) enhances the environment;
                            ``(ii) prevents or mitigates an 
                        adverse impact on a natural resource;
                            ``(iii) improves Federal land 
                        management agency resource management;
                            ``(iv) improves visitor mobility 
                        and accessibility and the visitor 
                        experience;
                            ``(v) reduces congestion and 
                        pollution (including noise pollution 
                        and visual pollution); or
                            ``(vi) conserves a natural, 
                        historical, or cultural resource 
                        (excluding rehabilitation or 
                        restoration of a non-transportation 
                        facility).
    ``(c) Federal Agency Cooperative Arrangements.--The 
Secretary shall develop cooperative arrangements with the 
Secretary of the Interior that provide for--
            ``(1) technical assistance in alternative 
        transportation;
            ``(2) interagency and multidisciplinary teams to 
        develop Federal land management agency alternative 
        transportation policy, procedures, and coordination; 
        and
            ``(3) the development of procedures and criteria 
        relating to the planning, selection, and funding of 
        qualified projects and the implementation and oversight 
        of the program of projects in accordance with this 
        section.
    ``(d) Limitation on Use of Available Amounts.--
            ``(1) In general.--The Secretary, in consultation 
        with the Secretary of the Interior, may use not more 
        than 10 percent of the amount made available for a 
        fiscal year under section 5338(b)(2)(J) to carry out 
        planning, research, and technical assistance under this 
        section, including the development of technology 
        appropriate for use in a qualified project.
            ``(2) Additional amounts.--Amounts made available 
        under this subsection are in addition to amounts 
        otherwise available to the Secretary to carry out 
        planning, research, and technical assistance under this 
        chapter or any other provision of law.
            ``(3) Maximum amount.--No qualified project shall 
        receive more than 25 percent of the total amount made 
        available to carry out this section under section 
        5338(b)(2)(J) for any fiscal year.
    ``(e) Planning Process.--In undertaking a qualified project 
under this section--
            ``(1) if the qualified participant is a Federal 
        land management agency--
                    ``(A) the Secretary, in cooperation with 
                the Secretary of the Interior, shall develop 
                transportation planning procedures that are 
                consistent with--
                            ``(i) the metropolitan planning 
                        provisions under section 5303;
                            ``(ii) the statewide planning 
                        provisions under section 5304; and
                            ``(iii) the public participation 
                        requirements under section 5307(d); and
                    ``(B) in the case of a qualified project 
                that is at a unit of the National Park System, 
                the planning process shall be consistent with 
                the general management plans of the unit of the 
                National Park System; and
            ``(2) if the qualified participant is a State or 
        local governmental authority, or more than one State or 
        local governmental authority in more than one State, 
        the qualified participant shall--
                    ``(A) comply with the metropolitan planning 
                provisions under section 5303;
                    ``(B) comply with the statewide planning 
                provisions under section 5304;
                    ``(C) comply with the public participation 
                requirements under section 5307(d); and
                    ``(D) consult with the appropriate Federal 
                land management agency during the planning 
                process.
    ``(f) Cost Sharing.--
            ``(1) Government's share.--The Secretary, in 
        cooperation with the Secretary of the Interior, shall 
        establish the Government's share of the net project 
        cost to be provided to a qualified participant under 
        this section.
            ``(2) Considerations.--In establishing the 
        Government's share of the net project cost to be 
        provided under this section, the Secretary shall 
        consider--
                    ``(A) visitation levels and the revenue 
                derived from user fees in the eligible area in 
                which the qualified project is carried out;
                    ``(B) the extent to which the qualified 
                participant coordinates with a public 
                transportation authority or private entity 
                engaged in public transportation;
                    ``(C) private investment in the qualified 
                project, including the provision of contract 
                services, joint development activities, and the 
                use of innovative financing mechanisms;
                    ``(D) the clear and direct benefit to the 
                qualified participant; and
                    ``(E) any other matters that the Secretary 
                considers appropriate to carry out this 
                section.
            ``(3) Special rule.--Notwithstanding any other 
        provision of law, funds appropriated to any Federal 
        land management agency may be counted toward the 
        remainder of the net project cost.
    ``(g) Selection of Qualified Projects.--
            ``(1) In general.--The Secretary of the Interior, 
        after consultation with and in cooperation with the 
        Secretary, shall determine the final selection and 
        funding of an annual program of qualified projects in 
        accordance with this section.
            ``(2) Considerations.--In determining whether to 
        include a project in the annual program of qualified 
        projects, the Secretary of the Interior shall 
        consider--
                    ``(A) the justification for the qualified 
                project, including the extent to which the 
                qualified project would conserve resources, 
                prevent or mitigate adverse impact, and enhance 
                the environment;
                    ``(B) the location of the qualified 
                project, to ensure that the selected qualified 
                projects--
                            ``(i) are geographically diverse 
                        nationwide; and
                            ``(ii) include qualified projects 
                        in eligible areas located in both urban 
                        areas and rural areas;
                    ``(C) the size of the qualified project, to 
                ensure that there is a balanced distribution;
                    ``(D) the historical and cultural 
                significance of a qualified project;
                    ``(E) safety;
                    ``(F) the extent to which the qualified 
                project would--
                            ``(i) enhance livable communities;
                            ``(ii) reduce pollution (including 
                        noise pollution, air pollution, and 
                        visual pollution);
                            ``(iii) reduce congestion; and
                            ``(iv) improve the mobility of 
                        people in the most efficient manner; 
                        and
                    ``(G) any other matters that the Secretary 
                of the Interior considers appropriate to carry 
                out this section, including--
                            ``(i) visitation levels;
                            ``(ii) the use of innovative 
                        financing or joint development 
                        strategies; and
                            ``(iii) coordination with gateway 
                        communities.
    ``(h) Qualified Projects Carried Out in Advance.--
            ``(1) In general.--When a qualified participant 
        carries out any part of a qualified project without 
        assistance under this section in accordance with all 
        applicable procedures and requirements, the Secretary, 
        in consultation with the Secretary of the Interior, may 
        pay the share of the net capital project cost of a 
        qualified project if--
                    ``(A) the qualified participant applies for 
                the payment;
                    ``(B) the Secretary approves the payment; 
                and
                    ``(C) before carrying out that part of the 
                qualified project, the Secretary approves the 
                plans and specifications in the same manner as 
                plans and specifications are approved for other 
                projects assisted under this section.
            ``(2) Financing costs.--
                    ``(A) In general.--The cost of carrying out 
                part of a qualified project under paragraph (1) 
                includes the amount of interest earned and 
                payable on bonds issued by a State or local 
                governmental authority, to the extent that 
                proceeds of the bond are expended in carrying 
                out that part.
                    ``(B) Limitation on amount of interest.--
                The rate of interest under this paragraph may 
                not exceed the most favorable rate reasonably 
                available for the qualified project at the time 
                of borrowing.
                    ``(C) Certification.--The qualified 
                participant shall certify, in a manner 
                satisfactory to the Secretary, that the 
                qualified participant has exercised reasonable 
                diligence in seeking the most favorable 
                interest rate.
    ``(i) Relationship to Other Laws.--
            ``(1) Section 5307.--A qualified participant under 
        this section shall be subject to the requirements of 
        sections 5307 and 5333(a) to the extent the Secretary 
        determines to be appropriate.
            ``(2) Other requirements.--A qualified participant 
        under this section shall be subject to any other 
        requirements that the Secretary determines to be 
        appropriate to carry out this section, including 
        requirements for the distribution of proceeds on 
        disposition of real property and equipment resulting 
        from a qualified project assisted under this section.
            ``(3) Project management plan.--If the amount of 
        assistance anticipated to be required for a qualified 
        project under this section is not less than 
        $25,000,000--
                    ``(A) the qualified project shall, to the 
                extent the Secretary considers appropriate, be 
                carried out through a full funding grant 
                agreement in accordance with section 5309(g); 
                and
                    ``(B) the qualified participant shall 
                prepare a project management plan in accordance 
                with section 5327(a).
    ``(j) Asset Management.--The Secretary, in consultation 
with the Secretary of the Interior, may transfer the interest 
of the Department of Transportation in, and control over, all 
facilities and equipment acquired under this section to a 
qualified participant for use and disposition in accordance 
with any property management regulations that the Secretary 
determines to be appropriate.
    ``(k) Coordination of Research and Deployment of New 
Technologies.--
            ``(1) Grants and other assistance.--The Secretary, 
        in cooperation with the Secretary of the Interior, may 
        undertake, or make grants, cooperative agreements, 
        contracts (including agreements with departments, 
        agencies, and instrumentalities of the Federal 
        Government) or other agreements for research, 
        development, and deployment of new technologies in 
        eligible areas that will--
                    ``(A) conserve resources;
                    ``(B) prevent or mitigate adverse 
                environmental impact;
                    ``(C) improve visitor mobility, 
                accessibility, and enjoyment; and
                    ``(D) reduce pollution (including noise 
                pollution and visual pollution).
            ``(2) Information.--The Secretary may request and 
        receive appropriate information from any source.
            ``(3) Funding.--Grants, cooperative agreements, 
        contracts, and other agreements under paragraph (1) 
        shall be awarded from amounts allocated under 
        subsection (d)(1).
    ``(l) Innovative Financing.--A qualified project receiving 
financial assistance under this section shall be eligible for 
funding through a State infrastructure bank or other innovative 
financing mechanism available to finance an eligible project 
under this chapter.
    ``(m) Reports.--
            ``(1) In general.--The Secretary, in consultation 
        with the Secretary of the Interior, shall annually 
        submit a report on the allocation of amounts made 
        available to assist qualified projects under this 
        section to--
                    ``(A) the Committee on Banking, Housing, 
                and Urban Affairs of the Senate;
                    ``(B) the Committee on Transportation and 
                Infrastructure of the House of Representatives; 
                and
                    ``(C) the Committee on Resources of the 
                House of Representatives and the Committee on 
                Energy and Natural Resources of the Senate.
            ``(2) Annual reports.--The report required under 
        paragraph (1) shall be included in the report submitted 
        under section 5309(k)(1).''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by striking the item relating to section 5320 and 
inserting the following:

``5320. Alternative transportation in parks and public lands.''.

SEC. 3022. HUMAN RESOURCES PROGRAMS.

    Section 5322 is amended--
            (1) by inserting ``(a) In General.--'' before ``The 
        Secretary''; and
            (2) by adding at the end the following:
    ``(b) Fellowships.--
            ``(1) Authority to make grants.--The Secretary may 
        make grants to States, local governmental authorities, 
        and operators of public transportation systems to 
        provide fellowships to train personnel employed in 
        managerial, technical, and professional positions in 
        the public transportation field.
            ``(2) Terms.--
                    ``(A) Period of training.--A fellowship 
                under this subsection may be for not more than 
                one year of training in an institution that 
                offers a program applicable to the public 
                transportation industry.
                    ``(B) Selection of individuals.--A 
                recipient of a grant for a fellowship under 
                this subsection shall select an individual on 
                the basis of demonstrated ability and for the 
                contribution the individual reasonably can be 
                expected to make to an efficient public 
                transportation operation.
                    ``(C) Amount.--A grant for a fellowship 
                under this subsection may not be more than the 
                lesser of $65,000 or 75 percent of the sum of--
                            ``(i) tuition and other charges to 
                        the fellowship recipient;
                            ``(ii) additional costs incurred by 
                        the training institution and billed to 
                        the grant recipient; and
                            ``(iii) the regular salary of the 
                        fellowship recipient for the period of 
                        the fellowship to the extent the salary 
                        is actually paid or reimbursed by the 
                        grant recipient.''.

SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE.

    (a) Interests in Property.--Section 5323(a) is amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) In general.--Financial assistance provided 
        under this chapter to a State or a local governmental 
        authority may be used to acquire an interest in, or to 
        buy property of, a private company engaged in public 
        transportation, for a capital project for property 
        acquired from a private company engaged in public 
        transportation after July 9, 1964, or to operate a 
        public transportation facility or equipment in 
        competition with, or in addition to, transportation 
        service provided by an existing public transportation 
        company, only if--
                    ``(A) the Secretary determines that such 
                financial assistance is essential to a program 
                of projects required under sections 5303, 5304, 
                and 5306;
                    ``(B) the Secretary determines that the 
                program provides for the participation of 
                private companies engaged in public 
                transportation to the maximum extent feasible; 
                and
                    ``(C) just compensation under State or 
                local law will be paid to the company for its 
                franchise or property.''; and
            (2) in paragraph (2) by striking ``(2) A 
        governmental authority'' and inserting the following:
            ``(2) Limitation.--A governmental authority''.
    (b) Notice and Public Hearing.--Section 5323(b) is amended 
to read as follows:
    ``(b) Notice and Public Hearing.--
            ``(1) In general.--For a capital project that will 
        substantially affect a community, or the public 
        transportation service of a community, an applicant 
        shall--
                    ``(A) provide an adequate opportunity for 
                public review and comment on the project;
                    ``(B) after providing notice, hold a public 
                hearing on the project if the project affects 
                significant economic, social, or environmental 
                interests;
                    ``(C) consider the economic, social, and 
                environmental effects of the project; and
                    ``(D) find that the project is consistent 
                with official plans for developing the 
                community.
            ``(2) Notice.--Notice of a hearing under this 
        subsection--
                    ``(A) shall include a concise description 
                of the proposed project; and
                    ``(B) shall be published in a newspaper of 
                general circulation in the geographic area the 
                project will serve.
            ``(3) Application requirements.--An application for 
        a grant under this chapter for a capital project 
        described in paragraph (1) shall include--
                    ``(A) a certification that the applicant 
                has complied with the requirements of this 
                subsection; and
                    ``(B) in the environmental record for the 
                project, evidence that the applicant has 
                complied with the requirements of this 
                subsection.''.
    (c) Fares Not Required.--Section 5323(c) is amended to read 
as follows:
    ``(c) Fares Not Required.--This chapter does not require 
that elderly individuals and individuals with disabilities be 
charged a fare.''.
    (d) Condition on Charter Bus Transportation Service.--
Section 5323(d) is amended--
            (1) by striking ``(1) Financial assistance'' and 
        inserting the following:
            ``(1) Agreements.--Financial assistance''; and
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Violations.--
                    ``(A) Investigations.--On receiving a 
                complaint about a violation of the agreement 
                required under paragraph (1), the Secretary 
                shall investigate and decide whether a 
                violation has occurred.
                    ``(B) Enforcement of agreements.--If the 
                Secretary decides that a violation has 
                occurred, the Secretary shall correct the 
                violation under terms of the agreement.
                    ``(C) Additional remedies.--In addition to 
                any remedy specified in the agreement, the 
                Secretary shall bar a recipient or an operator 
                from receiving Federal transit assistance in an 
                amount the Secretary considers appropriate if 
                the Secretary finds a pattern of violations of 
                the agreement.''.
    (e) Bond Proceeds Eligible for Local Share.--Section 
5323(e) is amended to read as follows:
    ``(e) Bond Proceeds Eligible for Local Share.--
            ``(1) Use as local matching funds.--Notwithstanding 
        any other provision of law, a recipient of assistance 
        under section 5307 or 5309 may use the proceeds from 
        the issuance of revenue bonds as part of the local 
        matching funds for a capital project.
            ``(2) Maintenance of effort.--The Secretary shall 
        approve of the use of the proceeds from the issuance of 
        revenue bonds for the remainder of the net project cost 
        only if the Secretary finds that the aggregate amount 
        of financial support for public transportation in the 
        urbanized area provided by the State and affected local 
        governmental authorities during the next 3 fiscal 
        years, as programmed in the State transportation 
        improvement program under section 5304, is not less 
        than the aggregate amount provided by the State and 
        affected local governmental authorities in the 
        urbanized area during the preceding 3 fiscal years.
            ``(3) Debt service reserve.--The Secretary may 
        reimburse an eligible recipient for deposits of bond 
        proceeds in a debt service reserve that the recipient 
        establishes pursuant to section 5302(a)(1)(K) from 
        amounts made available to the recipient under section 
        5309.
            ``(4) Pilot program for urbanized areas.--
                    ``(A) In general.--The Secretary shall 
                establish a pilot program to reimburse not to 
                exceed 10 eligible recipients for deposits of 
                bond proceeds in a debt service reserve that 
                the recipient establishes pursuant to section 
                5302(a)(1)(K) from amounts made available to 
                the recipient under section 5307.
                    ``(B) Report.--Not later than July 31, 
                2008, the Secretary shall submit to the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives a report on the status and 
                effectiveness of the pilot program established 
                under subparagraph (A).''.
    (f) Schoolbus Transportation.--Section 5323(f) is amended--
            (1) by striking ``(1) Financial assistance'' and 
        inserting the following:
            ``(1) Agreements.--Financial assistance'';
            (2) in paragraph (1) by moving subparagraphs (A), 
        (B), and (C) 2 ems to the right; and
            (3) by striking paragraph (2) and inserting the 
        following:
            ``(2) Violations.--If the Secretary finds that an 
        applicant, governmental authority, or publicly owned 
        operator has violated the agreement required under 
        paragraph (1), the Secretary shall bar a recipient or 
        an operator from receiving Federal transit assistance 
        in an amount the Secretary considers appropriate.''.
    (g) Buying Buses Under Other Laws.--Section 5323(g) is 
amended by striking ``103(e)(4) and 142(a) or (c)'' each place 
it appears and inserting ``133 and 142''.
    (h) Government's Share of Costs for Certain Projects.--
Section 5323(i) is amended--
            (1) in the subsection heading by striking 
        ``Government'' and inserting ``Government's'';
            (2) by striking ``A grant'' and inserting the 
        following:
            ``(1) Equipment for ada and clean air act 
        compliance.--A grant'';
            (3) by inserting ``or facilities'' after 
        ``equipment'' each place it appears; and
            (4) by adding at the end the following:
            ``(2) Certain state owned railroads.--The 
        Government share for financial assistance under this 
        chapter to a State-owned railroad (as defined in 
        section 603 of the Rail Safety and Service Improvement 
        Act of 1982 (45 U.S.C. 1202)) shall be the same as the 
        Government share under section 120(b) of title 23 for 
        Federal-aid highway funds apportioned to the State in 
        which the railroad operates.''.
    (i) Buy America.--
            (1) Public interest waiver.--Section 5323(j) is 
        amended--
                    (A) by redesignating paragraphs (3) through 
                (7) as paragraphs (4) through (8), 
                respectively; and
                    (B) by inserting after paragraph (2) the 
                following:
            ``(3) Written justification for public interest 
        waiver.--When issuing a waiver based on a public 
        interest determination under paragraph (2)(A), the 
        Secretary shall issue a detailed written justification 
        as to why the waiver is in the public interest. The 
        Secretary shall publish such justification in the 
        Federal Register and provide the public with a 
        reasonable period of time for notice and comment.''.
            (2) Ineligibility for contracts.--Section 
        5323(j)(6) (as so redesignated) is amended by striking 
        ``Intermodal Surface Transportation Efficiency Act of 
        1991 (Public Law 102-240, 105 Stat. 1914)'' and 
        inserting ``Federal Public Transportation Act of 
        2005''.
            (3) Administrative review.--Section 5323(j) is 
        amended by adding at the end the following:
            ``(9) Administrative review.--A party adversely 
        affected by an agency action under this subsection 
        shall have the right to seek review under section 702 
        of title 5.''.
            (4) Repeal of general waiver.--Subsections (b) and 
        (c) of Appendix A of section 661.7 of title 49, Code of 
        Federal Regulations, shall cease to be in effect 
        beginning on the date of enactment of this Act.
            (5) Rulemaking.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall 
        issue a final rule on implementation of the 
        requirements of section 5323(j) of title 49, United 
        States Code (in this paragraph referred to as the ``Buy 
        America requirements''). The purposes of the 
        regulations shall be as follows:
                    (A) Microprocessor waiver.--To clarify that 
                any waiver from the Buy America requirements 
                issued under section 5323(j)(2) of such title 
                for a microprocessor, computer, or 
                microcomputer applies only to a device used 
                solely for the purpose of processing or storing 
                data and does not extend to a product 
                containing a microprocessor, computer, or 
                microcomputer.
                    (B) Definitions.--To define the terms ``end 
                product'', ``negotiated procurement'', and 
                ``contractor'' for purposes of part 661 of 
                title 49, Code of Federal Regulations. In 
                defining the terms, the Secretary shall develop 
                a list of representative items that are subject 
                to the Buy America requirements, and shall 
                address the procurement of systems under the 
                definition to ensure that major system 
                procurements are not used to circumvent the Buy 
                America requirements.
                    (C) Post-award waivers.--To permit a 
                grantee to request a non-availability waiver 
                from the Buy America requirements under section 
                661.7c of title 49, Code of Federal 
                Regulations, after contract award in any case 
                in which the contractor has made a 
                certification of compliance with the 
                requirements in good faith.
                    (D) Certification under negotiated 
                procurement process.--In any case in which a 
                negotiated procurement process is used, 
                compliance with the Buy America requirements 
                shall be determined on the basis of the 
                certification submitted with the final offer.
    (j) Relationship to Other Laws.--Section 5323(l) is amended 
to read as follows:
    ``(l) Relationship to Other Laws.--Section 1001 of title 18 
applies to a certificate, submission, or statement provided 
under this chapter. The Secretary may terminate financial 
assistance under this chapter and seek reimbursement directly, 
or by offsetting amounts, available under this chapter if the 
Secretary determines that a recipient of such financial 
assistance has made a false or fraudulent statement or related 
act in connection with a Federal transit program.''.
    (k) Preaward and Postdelivery Review of Rolling Stock 
Purchases.--Section 5323(m) is amended by adding at the end the 
following: ``Rolling stock procurements of 20 vehicles or fewer 
made for the purpose of serving other than urbanized areas and 
urbanized areas with populations of 200,000 or fewer shall be 
subject to the same requirements as established for 
procurements of 10 or fewer buses under the post-delivery 
purchaser's requirements certification process under section 
663.37(c) of title 49, Code of Federal Regulations.''.
    (l) Grant Requirements.--Section 5323(o) is amended by 
striking ``the Transportation Infrastructure Finance and 
Innovation Act of 1998'' and inserting ``chapter 6 (other than 
section 609) of title 23''.
    (m) Alternative Fueling Facilities.--Section 5323 is 
amended by adding at the end the following:
    ``(p) Alternative Fueling Facilities.--A recipient of 
assistance under this chapter may allow the incidental use of 
Federally funded alternative fueling facilities and equipment 
by nontransit public entities and private entities if--
            ``(1) the incidental use does not interfere with 
        the recipient's public transportation operations;
            ``(2) all costs related to the incidental use are 
        fully recaptured by the recipient from the nontransit 
        public entity or private entity;
            ``(3) the recipient uses revenues received from the 
        incidental use in excess of costs for planning, 
        capital, and operating expenses that are incurred in 
        providing public transportation; and
            ``(4) private entities pay all applicable excise 
        taxes on fuel.''.

SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

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

``Sec. 5324. Special provisions for capital projects

    ``(a) Relocation and Real Property Requirements.--The 
Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to 
financial assistance for capital projects under this chapter.
    ``(b) Consideration of Economic, Social, and Environmental 
Interests.--
            ``(1) Cooperation and consultation.--In carrying 
        out the policy of section 5301(e), the Secretary shall 
        cooperate and consult with the Secretary of the 
        Interior and the Administrator of the Environmental 
        Protection Agency on each project that may have a 
        substantial impact on the environment.
            ``(2) Public participation in environmental 
        reviews.--In performing environmental reviews, the 
        Secretary shall review each transcript of a hearing 
        submitted under section 5323(b) to establish that an 
        adequate opportunity to present views was given to all 
        parties having a significant economic, social, or 
        environmental interest in the project, and that the 
        project application includes a record of--
                    ``(A) the environmental impact of the 
                proposal;
                    ``(B) adverse environmental effects that 
                cannot be avoided;
                    ``(C) alternatives to the proposal; and
                    ``(D) irreversible and irretrievable 
                impacts on the environment.
            ``(3) Approval of applications for assistance.--
                    ``(A) Findings by the secretary.--The 
                Secretary may approve an application for 
                financial assistance for a capital project in 
                accordance with this chapter only if the 
                Secretary makes written findings, after 
                reviewing the application and the transcript of 
                any hearing held before a State or local 
                governmental authority under section 5323(b), 
                that--
                            ``(i) an adequate opportunity to 
                        present views was given to all parties 
                        having a significant economic, social, 
                        or environmental interest;
                            ``(ii) the preservation and 
                        enhancement of the environment and the 
                        interest of the community in which the 
                        project is located were considered; and
                            ``(iii) no adverse environmental 
                        effect is likely to result from the 
                        project, or no feasible and prudent 
                        alternative to the effect exists and 
                        all reasonable steps have been taken to 
                        minimize the effect.
                    ``(B) Hearing.--If a hearing has not been 
                conducted or the Secretary decides that the 
                record of the hearing is inadequate for making 
                the findings required by this subsection, the 
                Secretary shall conduct a hearing on an 
                environmental issue raised by the application 
                after giving adequate notice to interested 
                persons.
                    ``(C) Availability of findings.--The 
                Secretary's findings under subparagraph (A) 
                shall be made a matter of public record.
    ``(c) Railroad Corridor Preservation.--
            ``(1) In general.--The Secretary may assist an 
        applicant to acquire railroad right-of-way before the 
        completion of the environmental reviews for any project 
        that may use the right-of-way if the acquisition is 
        otherwise permitted under Federal law. The Secretary 
        may establish restrictions on such an acquisition as 
        the Secretary determines to be necessary and 
        appropriate.
            ``(2) Environmental reviews.--Railroad right-of-way 
        acquired under this subsection may not be developed in 
        anticipation of the project until all required 
        environmental reviews for the project have been 
        completed.''.
    (b) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5324 and 
inserting the following:

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

SEC. 3025. CONTRACT REQUIREMENTS.

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

``Sec. 5325. Contract requirements

    ``(a) Competition.--Recipients of assistance under this 
chapter shall conduct all procurement transactions in a manner 
that provides full and open competition as determined by the 
Secretary.
    ``(b) Architectural, Engineering, and Design Contracts.--
            ``(1) Procedures for awarding contract.--A contract 
        or requirement for program management, architectural 
        engineering, construction management, a feasibility 
        study, and preliminary engineering, design, 
        architectural, engineering, surveying, mapping, or 
        related services for a project for which Federal 
        assistance is provided under this chapter shall be 
        awarded in the same way as a contract for architectural 
        and engineering services is negotiated under chapter 11 
        of title 40 or an equivalent qualifications-based 
        requirement of a State.
            ``(2) Effect of state laws.--Paragraph (1) does not 
        apply to the extent a State has adopted by law, before 
        the date of enactment of the Federal Public 
        Transportation Act of 2005, an equivalent State 
        qualifications-based requirement for contracting for 
        architectural, engineering, and design services.
            ``(3) Additional requirements.--When awarding a 
        contract described in paragraph (1), recipients of 
        assistance under this chapter shall comply with the 
        following requirements:
                    ``(A) Performance of audits.--Any contract 
                or subcontract awarded under this chapter shall 
                be performed and audited in compliance with 
                cost principles contained in part 31 of title 
                48, Code of Federal Regulations (commonly known 
                as the Federal Acquisition Regulation).
                    ``(B) Indirect cost rates.--A recipient of 
                funds under a contract or subcontract awarded 
                under this chapter shall accept indirect cost 
                rates established in accordance with the 
                Federal Acquisition Regulation for 1-year 
                applicable accounting periods by a cognizant 
                Federal or State government agency, if such 
                rates are not currently under dispute.
                    ``(C) Application of rates.--After a firm's 
                indirect cost rates are accepted under 
                subparagraph (B), the recipient of the funds 
                shall apply such rates for the purposes of 
                contract estimation, negotiation, 
                administration, reporting, and contract 
                payment, and shall not be limited by 
                administrative or de facto ceilings.
                    ``(D) Prenotification; confidentiality of 
                data.--A recipient requesting or using the cost 
                and rate data described in subparagraph (C) 
                shall notify any affected firm before such 
                request or use. Such data shall be confidential 
                and shall not be accessible or provided by the 
                group of agencies sharing cost data under this 
                subparagraph, except by written permission of 
                the audited firm. If prohibited by law, such 
                cost and rate data shall not be disclosed under 
                any circumstances.
    ``(c) Efficient Procurement.--A recipient may award a 
procurement contract under this chapter to other than the 
lowest bidder if the award furthers an objective consistent 
with the purposes of this chapter, including improved long-term 
operating efficiency and lower long-term costs.
    ``(d) Design-Build Projects.--
            ``(1) Term defined.--In this subsection, the term 
        `design-build project'--
                    ``(A) means a project under which a 
                recipient enters into a contract with a seller, 
                firm, or consortium of firms to design and 
                build a public transportation system, or an 
                operable segment of such system, that meets 
                specific performance criteria; and
                    ``(B) may include an option to finance, or 
                operate for a period of time, the system or 
                segment or any combination of designing, 
                building, operating, or maintaining such system 
                or segment.
            ``(2) Financial assistance for capital costs.--
        Federal financial assistance under this chapter may be 
        provided for the capital costs of a design-build 
        project after the recipient complies with Government 
        requirements.
    ``(e) Multiyear Rolling Stock.--
            ``(1) Contracts.--A recipient procuring rolling 
        stock with Government financial assistance under this 
        chapter may make a multiyear contract to buy the 
        rolling stock and replacement parts under which the 
        recipient has an option to buy additional rolling stock 
        or replacement parts for not more than 5 years after 
        the date of the original contract.
            ``(2) Cooperation among recipients.--The Secretary 
        shall allow at least 2 recipients to act on a 
        cooperative basis to procure rolling stock in 
        compliance with this subsection and other Government 
        procurement requirements.
    ``(f) Acquiring Rolling Stock.--A recipient of financial 
assistance under this chapter may enter into a contract to 
expend that assistance to acquire rolling stock--
            ``(1) based on--
                    ``(A) initial capital costs; or
                    ``(B) performance, standardization, life 
                cycle costs, and other factors; or
            ``(2) with a party selected through a competitive 
        procurement process.
    ``(g) Examination of Records.--Upon request, the Secretary 
and the Comptroller General, or any of their representatives, 
shall have access to and the right to examine and inspect all 
records, documents, and papers, including contracts, related to 
a project for which a grant is made under this chapter.
    ``(h) Grant Prohibition.--A grant awarded under this 
chapter or the Federal Public Transportation Act of 2005 may 
not be used to support a procurement that uses an exclusionary 
or discriminatory specification.
    ``(i) Bus Dealer Requirements.--No State law requiring 
buses to be purchased through in-State dealers shall apply to 
vehicles purchased with a grant under this chapter.
    ``(j) Awards to Responsible Contractors.--
            ``(1) In general.--Federal financial assistance 
        under this chapter may be provided for contracts only 
        if a recipient awards such contracts to responsible 
        contractors possessing the ability to successfully 
        perform under the terms and conditions of a proposed 
        procurement.
            ``(2) Criteria.--Before making an award to a 
        contractor under paragraph (1), a recipient shall 
        consider--
                    ``(A) the integrity of the contractor;
                    ``(B) the contractor's compliance with 
                public policy;
                    ``(C) the contractor's past performance, 
                including the performance reported in the 
                Contractor Performance Assessment Reports 
                required under section 5309(l)(2); and
                    ``(D) the contractor's financial and 
                technical resources.''.
    (b) Conforming Amendment.--Section 5326 and the item 
relating to section 5326 in the analysis for chapter 53 are 
repealed.

SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

    (a) Project Management Plan Requirements.--Section 5327(a) 
is amended--
            (1) in paragraph (11) by striking ``and'' at the 
        end;
            (2) in paragraph (12) by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(13) safety and security management.''.
    (b) Limitations.--Section 5327(c) is amended to read as 
follows:
    ``(c) Limitations.--
            ``(1) Limitations on use of available amounts.--Of 
        the amounts made available to carry out this chapter 
        for a fiscal year, the Secretary may use not more than 
        the following amounts to make contracts for the 
        activities described in paragraph (2):
                    ``(A) 0.5 percent of amounts made available 
                to carry out section 5305.
                    ``(B) 0.75 percent of amounts made 
                available to carry out section 5307.
                    ``(C) 1 percent of amounts made available 
                to carry out section 5309.
                    ``(D) 0.5 percent of amounts made available 
                to carry out section 5310.
                    ``(E) 0.5 percent of amounts made available 
                to carry out section 5311.
                    ``(F) 0.5 percent of amounts made available 
                to carry out section 5320.
            ``(2) Activities.--Paragraph (1) shall apply to the 
        following:
                    ``(A) Activities to oversee the 
                construction of a major project.
                    ``(B) Activities to review and audit the 
                safety and security, procurement, management, 
                and financial compliance of a recipient or 
                subrecipient of funds under sections 5305, 
                5307, 5309, 5310, 5311, and 5320.
                    ``(C) Activities to provide technical 
                assistance to correct deficiencies identified 
                in compliance reviews and audits carried out 
                under this section.
            ``(3) Limitations on applicability.--Subsections 
        (a), (b), and (e) do not apply to contracts under this 
        section for activities described in paragraphs (2)(B) 
        and (2)(C).
            ``(4) Government's share of costs.--The Government 
        shall pay the entire cost of carrying out a contract 
        under this subsection.
            ``(5) Availability of certain funds.--Beginning in 
        fiscal year 2006, funds available under paragraph 
        (1)(C) shall be made available to the Secretary before 
        allocating the funds appropriated to carry out any 
        project under a full funding grant agreement or project 
        construction grant agreement.''.

SEC. 3027. PROJECT REVIEW.

    Section 5328(a) is amended--
            (1) in paragraph (1) by striking ``(1) When the 
        Secretary of Transportation allows a new fixed guideway 
        project to advance into the alternatives analysis stage 
        of project review, the Secretary shall cooperate with 
        the applicant in'' and inserting the following:
            ``(1) Alternatives analysis.--The Secretary shall 
        cooperate with an applicant undertaking an alternatives 
        analysis required by subsections (d) and (e) of section 
        5309 in the''; and
            (2) in paragraph (2)--
                    (A) by striking ``(2) After'' and inserting 
                the following:
            ``(2) Advancement to preliminary engineering 
        stage.--After''; and
                    (B) by striking ``is consistent with 
                section 5309(e)'' and inserting ``meets the 
                requirements of subsection (d) or (e) of 
                section 5309'';
            (3) in paragraph (3)--
                    (A) by striking ``(3) The Secretary'' and 
                inserting the following:
            ``(3) Record of decision.--The Secretary'';
                    (B) by striking ``of construction''; and
                    (C) by adding before the period at the end 
                the following: ``if the Secretary determines 
                that the project meets the requirements of 
                subsection (d) or (e) of section 5309''; and
            (4) by striking paragraph (4) and inserting the 
        following:
            ``(4) Funding agreements.--The Secretary shall 
        enter into a full funding grant agreement or project 
        construction grant agreement, as appropriate, between 
        the Government and the project sponsor if the Secretary 
        determines that the project meets the requirements of 
        subsection (d) or (e) of section 5309.''.

SEC. 3028. INVESTIGATIONS OF SAFETY HAZARDS AND SECURITY RISKS.

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

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

    ``(a) In General.--The Secretary may conduct investigations 
into safety hazards and security risks associated with a 
condition in equipment, a facility, or an operation financed 
under this chapter to establish the nature and extent of the 
condition and how to eliminate, mitigate, or correct it.
    ``(b) Submission of Corrective Plan.--If the Secretary 
establishes that a safety hazard or security risk warrants 
further protective measures, the Secretary shall require the 
local governmental authority receiving amounts under this 
chapter to submit a plan for eliminating, mitigating, or 
correcting it.
    ``(c) Withholding Financial Assistance.--Financial 
assistance under this chapter, in an amount to be determined by 
the Secretary, may be withheld until a plan is approved and 
carried out.''.
    (b) Public Transportation Security.--
            (1) In general.--Not later than 45 days after the 
        date of enactment of this Act, the Secretary shall 
        execute an annex to the memorandum of understanding 
        between the Secretary and the Secretary of Homeland 
        Security, dated September 28, 2004, to define and 
        clarify the respective roles and responsibilities of 
        the Department of Transportation and the Department of 
        Homeland Security relating to public transportation 
        security.
            (2) Contents.--The annex to be executed under 
        paragraph (1) shall--
                    (A) establish a process to develop security 
                standards for public transportation agencies;
                    (B) create a method of direct coordination 
                with public transportation agencies on security 
                matters;
                    (C) address any other issues determined to 
                be appropriate by the Secretary and the 
                Secretary of Homeland Security; and
                    (D) include a formal and permanent 
                mechanism to ensure coordination and 
                involvement by the Department of 
                Transportation, as appropriate, in public 
                transportation security.
    (c) Rulemaking.--Not later than 180 days after the date of 
enactment of this Act, the Secretary and the Secretary of 
Homeland Security shall issue jointly final regulations to 
establish the characteristics of and requirements for public 
transportation security grants, including funding priorities, 
eligible activities, methods for awarding grants, and 
limitations on administrative expenses.
    (d) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5329 and 
inserting the following:

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

SEC. 3029. STATE SAFETY OVERSIGHT.

    (a) In General.--Section 5330 is amended--
            (1) by striking the section heading and all that 
        follows through subsection (a) and inserting the 
        following:

``Sec. 5330. State safety oversight

    ``(a) Application.--This section shall only apply to--
            ``(1) States that have rail fixed guideway public 
        transportation systems that are not subject to 
        regulation by the Federal Railroad Administration; and
            ``(2) States that are designing rail fixed guideway 
        public transportation systems that will not be subject 
        to regulation by the Federal Railroad 
        Administration.'';
            (2) in subsection (d) by striking ``may'' and 
        inserting ``shall ensure uniform safety standards and 
        enforcement or shall''; and
            (3) by striking subsection (f).
    (b) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5330 and 
inserting the following:

``5330. State safety oversight.''.

SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

    (a) Definitions.--Section 5331(a)(3) is amended by striking 
the period at the end and inserting the following: ``or section 
2303a, 7101(i), or 7302(e) of title 46. The Secretary may also 
decide that a form of public transportation is covered 
adequately, for employee alcohol and controlled substances 
testing purposes, under the alcohol and controlled substance 
statutes or regulations of an agency within the Department of 
Transportation or the Coast Guard.''.
    (b) Technical Corrections.--Subsections (b)(1) and (g) of 
section 5331 are each amended by striking ``or section 
103(e)(4) of title 23''.
    (c) Regulations.--Section 5331(f) is amended by striking 
paragraph (3).

SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS.

    Section 5333(b) is amended--
            (1) in paragraph (1) by striking ``5318(d), 
        5323(a)(1), (b), (d), and (e), 5328, 5337, and 
        5338(b)'' each place it appears and inserting ``5316, 
        5318, 5323(a)(1), 5323(b), 5323(d), 5328, 5337, and 
        5338(b)''; and
            (2) by adding at the end the following:
    ``(4) Fair and equitable arrangements to protect the 
interests of employees utilized by the Secretary of Labor for 
assistance to purchase like-kind equipment or facilities, and 
grant amendments which do not materially revise or amend 
existing assistance agreements, shall be certified without 
referral.
    ``(5) When the Secretary is called upon to issue fair and 
equitable determinations involving assurances of employment 
when one private transit bus service contractor replaces 
another through competitive bidding, such decisions shall be 
based on the principles set forth in the Department of Labor's 
decision of September 21, 1994, as clarified by the 
supplemental ruling of November 7, 1994, with respect to grant 
NV-90-X021. This paragraph shall not serve as a basis for 
objections under section 215.3(d) of title 29, Code of Federal 
Regulations.''.

SEC. 3032. ADMINISTRATIVE PROCEDURES.

    Section 5334 is amended--
            (1) in subsection (a)--
                    (A) in paragraph (9) by striking ``and'' at 
                the end;
                    (B) in paragraph (10) by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(11) issue regulations as necessary to carry out 
        the purposes of this chapter.'';
            (2) by striking subsection (i);
            (3) by redesignating subsections (b) through (h) as 
        subsections (c) through (i), respectively;
            (4) by inserting after subsection (a) the 
        following:
    ``(b) Prohibitions Against Regulating Operations and 
Charges.--
            ``(1) In general.--Except for purposes of national 
        defense or in the event of a national or regional 
        emergency, the Secretary may not regulate the 
        operation, routes, or schedules of a public 
        transportation system for which a grant is made under 
        this chapter, nor may the Secretary regulate the rates, 
        fares, tolls, rentals, or other charges prescribed by 
        any provider of public transportation.
            ``(2) Limitation on statutory construction.--
        Nothing in this subsection shall be construed to 
        prevent the Secretary from requiring a recipient of 
        funds under this chapter to comply with the terms and 
        conditions of its Federal assistance agreement.''; and
            (5) by striking subsection (c)(4) (as redesignated 
        by paragraph (3) of this subsection) and inserting the 
        following:
    ``(4) The Secretary of Transportation shall comply with 
this section (except subsection (i)) and sections 5318(e), 
5323(a)(2), 5325(a), 5325(b), and 5325(f) when proposing or 
carrying out a regulation governing an activity under this 
chapter, except for a routine matter or a matter with no 
significant impact.''; and
            (6) by adding at the end the following:
    ``(k) Notification of Pending Discretionary Grants.--Not 
less than 3 full business days before announcement of award by 
the Secretary of any discretionary grant, letter of intent, or 
full funding grant agreement totaling $1,000,000 or more, the 
Secretary shall notify the Committees on Banking, Housing, and 
Urban Affairs and Appropriations of the Senate and Committees 
on Transportation and Infrastructure and Appropriations of the 
House of Representatives.
    ``(l) Agency Statements.--
            ``(1) In general.--The Administrator of the Federal 
        Transit Administration shall follow applicable 
        rulemaking procedures under section 553 of title 5 
        before the Federal Transit Administration issues a 
        statement that imposes a binding obligation on 
        recipients of Federal assistance under this chapter.
            ``(2) Binding obligation defined.--In this 
        subsection, the term `binding obligation' means a 
        substantive policy statement, rule, or guidance 
        document issued by the Federal Transit Administration 
        that grants rights, imposes obligations, produces 
        significant effects on private interests, or effects a 
        significant change in existing policy.''.

SEC. 3033. NATIONAL TRANSIT DATABASE.

    (a) In General.--Section 5335 is amended--
            (1) by striking the section heading and inserting 
        the following:

``Sec. 5335. National transit database'';

            (2) by striking subsection (b); and
            (3) in subsection (a)--
                    (A) in paragraph (1), by striking ``(1)''; 
                and
                    (B) in paragraph (2), by striking ``(2) The 
                Secretary may make a grant under section 5307 
                of this title'' and inserting the following:
    ``(b) Reporting and Uniform Systems.--The Secretary may 
award a grant under section 5307 or 5311''.
    (b) Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5335 and 
inserting the following:

``5335. National transit database.''.

SEC. 3034. APPORTIONMENTS OF FORMULA GRANTS.

    (a) Apportionments.--Section 5336 is amended--
            (1) by striking subsections (d), (h), and (k);
            (2) by redesignating subsections (e), (f), (g), 
        (i), and (j) as subsections (d), (e), (f), (g), and 
        (h), respectively;
            (3) by adding at the end the following:
    ``(i) Apportionments.--Of the amounts made available for 
each fiscal year under subsections (a)(1)(C)(vi) and (b)(2)(B) 
of section 5338--
            ``(1) one percent shall be apportioned, in fiscal 
        year 2006 and each fiscal year thereafter, to certain 
        urbanized areas with populations of less than 200,000 
        in accordance with subsection (j); and
            ``(2) any amount not apportioned under paragraph 
        (1) shall be apportioned to urbanized areas in 
        accordance with subsections (a) through (c).''; and
            (4) in subsection (a) by striking ``Of the amount 
        made available or appropriated under section 5338(a) of 
        this title'' and inserting ``Of the amount apportioned 
        under subsection (i)(2)''.
    (b) Small Transit Intensive Cities Formula.--Section 5336 
is amended by adding at the end the following:
    ``(j) Small Transit Intensive Cities Formula.--
            ``(1) Definitions.--In this subsection, the 
        following definitions apply:
                    ``(A) Eligible area.--The term `eligible 
                area' means an urbanized area with a population 
                of less than 200,000 that meets or exceeds in 
                one or more performance categories the industry 
                average for all urbanized areas with a 
                population of at least 200,000 but not more 
                than 999,999, as determined by the Secretary in 
                accordance with subsection (c)(2).
                    ``(B) Performance category.--The term 
                `performance category' means each of the 
                following:
                            ``(i) Passenger miles traveled per 
                        vehicle revenue mile.
                            ``(ii) Passenger miles traveled per 
                        vehicle revenue hour.
                            ``(iii) Vehicle revenue miles per 
                        capita.
                            ``(iv) Vehicle revenue hours per 
                        capita.
                            ``(v) Passenger miles traveled per 
                        capita.
                            ``(vi) Passengers per capita.
            ``(2) Apportionment.--
                    ``(A) Apportionment formula.--The amount to 
                be apportioned under subsection (i)(1) shall be 
                apportioned among eligible areas in the ratio 
                that--
                            ``(i) the number of performance 
                        categories for which each eligible area 
                        meets or exceeds the industry average 
                        in urbanized areas with a population of 
                        at least 200,000 but not more than 
                        999,999; bears to
                            ``(ii) the aggregate number of 
                        performance categories for which all 
                        eligible areas meet or exceed the 
                        industry average in urbanized areas 
                        with a population of at least 200,000 
                        but not more than 999,999.
                    ``(B) Data used in formula.--The Secretary 
                shall calculate apportionments under this 
                subsection for a fiscal year using data from 
                the national transit database used to calculate 
                apportionments for that fiscal year under this 
                section.''.
    (c) Study on Incentives in Formula Programs.--Section 5336 
is amended by adding at the end the following:
    ``(c) Study on Incentives in Formula Programs.--
            ``(1) Study.--The Secretary shall conduct a study 
        to assess the feasibility and appropriateness of 
        developing and implementing an incentive funding system 
        under sections 5307 and 5311 for operators of public 
        transportation.
            ``(2) Report.--
                    ``(A) In general.--Not later than 2 years 
                after the date of enactment of the Federal 
                Public Transportation Act of 2005, the 
                Secretary shall submit a report on the results 
                of the study conducted under paragraph (1) to 
                the Committee on Banking, Housing, and Urban 
                Affairs of the Senate and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives.
                    ``(B) Contents.--The report submitted under 
                subparagraph (A) shall include--
                            ``(i) an analysis of the 
                        availability of appropriate measures to 
                        be used as a basis for the distribution 
                        of incentive payments;
                            ``(ii) the optimal number and size 
                        of any incentive programs;
                            ``(iii) what types of systems 
                        should compete for various incentives;
                            ``(iv) how incentives should be 
                        distributed; and
                            ``(v) the likely effects of the 
                        incentive funding system.''.
    (d) Technical Amendments.--Section 5336 is amended--
            (1) in subsection (a) by striking ``of this title'' 
        and inserting ``to carry out section 5307'';
            (2) in paragraph (2) by inserting before the period 
        at the end the following: ``, except that the amount 
        apportioned to the Anchorage urbanized area under 
        subsection (b) shall be available to the Alaska 
        Railroad for any costs related to its passenger 
        operations'';
            (3) in subsection (b)(1) by inserting ``and, 
        beginning in fiscal year 2006, 60 percent of the 
        directional route miles attributable to the Alaska 
        Railroad passenger operations'' after ``recipient''; 
        and
            (4) in subsection (h) by striking ``a grant made 
        under'' each place it appears and inserting ``a grant 
        made with funds apportioned under''.

SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY FACTORS.

    (a) In General.--Section 5337 is amended--
            (1) by striking the section designation and heading 
        and inserting the following:

``Sec. 5337. Apportionment based on fixed guideway factors''; and

            (2) by adding at the end the following:
    ``(f) Adjustment.--For purposes of this section, an 
urbanized area with a population of 55,997, according to the 
most recent decennial census, shall be treated as an urbanized 
area eligible for assistance under section 5336(b)(2)(A) to 
which amounts were apportioned under this section for fiscal 
year 1997. For the purposes of paragraph (e)(1), the number of 
fixed guideway revenue vehicle miles of service and number of 
fixed guideway route miles for that urbanized area as of the 
date of enactment of the Federal Public Transportation Act of 
2005 shall be considered to have been used to determine 
apportionments for fiscal year 1997.''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by striking the item relating to section 5337 and 
inserting the following:

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

SEC. 3036. AUTHORIZATIONS.

    Section 5338 is amended to read as follows:

``Sec. 5338. Authorizations

    ``(a) Fiscal Year 2005.--
            ``(1) Formula grants.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $3,499,927,776 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out sections 5307, 5308, 5310, and 5311 
                and section 3038 of the Transportation Equity 
                Act for the 21st Century (49 U.S.C. 5310 note).
                    ``(B) General fund.--In addition to the 
                amounts made available under subparagraph (A), 
                there is authorized to be appropriated 
                $499,989,824 for fiscal year 2005 to carry out 
                sections 5307, 5308, 5310, and 5311 and section 
                3038 of the Transportation Equity Act for the 
                21st Century (49 U.S.C. 5310 note).
                    ``(C) Allocation of funds.--Of the amounts 
                made available or appropriated under this 
                paragraph--
                            ``(i) $4,811,150 shall be available 
                        to the Alaska Railroad for improvements 
                        to its passenger operations under 
                        section 5307;
                            ``(ii) $5,208,000 shall be 
                        available to provide over-the-road bus 
                        accessibility grants under section 3038 
                        of the Transportation Equity Act for 
                        the 21st Century (49 U.S.C. 5310 note) 
                        to operators of intercity, fixed-route 
                        over-the-road buses;
                            ``(iii) $1,686,400 shall be 
                        available to provide over-the-road bus 
                        accessibility grants under section 3038 
                        of the Transportation Equity Act for 
                        the 21st Century (49 U.S.C. 5310 note) 
                        to operators of over-the-road buses 
                        providing other than intercity, fixed-
                        route service;
                            ``(iv) $94,526,689 shall be 
                        available to provide transportation 
                        services to elderly individuals and 
                        individuals with disabilities under 
                        section 5310;
                            ``(v) $250,889,588 shall be 
                        available to provide financial 
                        assistance for other than urbanized 
                        areas under section 5311;
                            ``(vi) $3,593,195,773 shall be 
                        available to provide financial 
                        assistance for urbanized areas under 
                        section 5307; and
                            ``(vii) $49,600,000 shall be 
                        available to carry out the clean fuels 
                        program under section 5308.
            ``(2) Job access and reverse commute.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $108,500,000 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out section 3037 of the Transportation 
                Equity Act for the 21st Century (49 U.S.C. 5309 
                note).
                    ``(B) General fund.--In addition to the 
                amounts made available under subparagraph (A), 
                there is authorized to be appropriated 
                $15,500,000 for fiscal year 2005 to carry out 
                section 3037 of the Transportation Equity Act 
                of the 21st Century (49 U.S.C. 5309 note).
            ``(3) Capital program grants.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $2,898,100,224 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out section 5309.
                    ``(B) General fund.--In addition to the 
                amounts made available under subparagraph (A), 
                there is authorized to be appropriated 
                $414,014,176 for fiscal year 2005 to carry out 
                sections 5308, 5309, and 5318 and section 
                3015(b) of the Transportation Equity Act for 
                the 21st Century (112 Stat. 361).
                    ``(C) Allocation of funds.--Of the amounts 
                made available or appropriated under this 
                paragraph--
                            ``(i) $49,600,000 shall be 
                        available to carry out the clean fuels 
                        program under section 5308;
                            ``(ii) $669,600,000 shall be 
                        available for capital projects to 
                        replace, rehabilitate, and purchase bus 
                        and related equipment and to construct 
                        bus-related facilities under section 
                        5309;
                            ``(iii) $1,204,684,800 shall be 
                        available for fixed guideway 
                        modernization under section 5309;
                            ``(iv) $1,437,829,600 shall be 
                        available for capital projects for new 
                        fixed guideway systems and extensions 
                        to existing fixed guideway systems 
                        under section 5309;
                            ``(v) $10,213,632 shall be 
                        available for capital projects in 
                        Alaska and Hawaii under section 5309;
                            ``(vi) $2,976,000 shall be 
                        available to carry out bus testing 
                        under section 5318; and
                            ``(vii) $4,811,200 shall be 
                        available to carry out the fuel cell 
                        bus and bus facilities program under 
                        section 3015(b) of the Transportation 
                        Equity Act for the 21st Century (112 
                        Stat. 361).
            ``(4) Planning.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $63,364,000 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out sections 5303, 5304, 5305, and 
                5313(b), as in effect on the day before the 
                date of enactment of the Federal Public 
                Transportation Act of 2005.
                    ``(B) General fund.--In addition to the 
                amounts made available under subparagraph (A), 
                there is authorized to be appropriated 
                $9,052,000 for fiscal year 2005 to carry out 
                sections 5303, 5304, 5305, and 5313(b), as in 
                effect on the day before the date of enactment 
                of the Federal Public Transportation Act of 
                2005.
                    ``(C) Allocation of funds.--Of the amounts 
                made available or appropriated under this 
                paragraph--
                            ``(i) 82.72 percent shall be 
                        allocated for metropolitan planning 
                        under section 5305; and
                            ``(ii) 17.28 percent shall be 
                        allocated for State planning under 
                        section 5305.
            ``(5) Research.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $47,740,000 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out sections 5311(b)(2), 5312, 5313(a), 
                5314, 5315, and 5322.
                    ``(B) General fund.--In addition to the 
                amounts made available under subparagraph (A), 
                there is authorized to be appropriated 
                $6,820,000 for fiscal year 2005 to carry out 
                sections 5311(b)(2), 5312, 5313(a), 5314, 5315, 
                and 5322.
                    ``(C) Allocation of funds.--Of the funds 
                made available or appropriated under this 
                paragraph--
                            ``(i) not less than $3,968,000 
                        shall be available to carry out 
                        programs under the National Transit 
                        Institute under section 5315, of which 
                        not more than $992,000 shall be 
                        available to carry out section 
                        5315(a)(16);
                            ``(ii) not less than $5,208,000 
                        shall be available to provide rural 
                        transportation assistance under section 
                        5311(b)(2);
                            ``(iii) not less than $8,184,000 
                        shall be available to carry out transit 
                        cooperative research programs under 
                        section 5313(a);
                            ``(iv) not less than $2,976,000 
                        shall be available to carry out Project 
                        Action under section 5312; and
                            ``(v) the remainder shall be 
                        available to carry out national 
                        research and technology programs under 
                        sections 5312, 5314, and 5322.
            ``(6) University transportation research.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $5,208,000 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out sections 5505.
                    ``(B) General fund.--In addition to amounts 
                made available under subparagraph (A), there is 
                authorized to be appropriated $744,000 for 
                fiscal year 2005 to carry out sections 5505.
                    ``(C) Allocation of funds.--Of the amounts 
                made available or appropriated under this 
                paragraph--
                            ``(i) $1,984,000 shall be available 
                        for grants under section 5505(d) to the 
                        center identified in section 
                        5505(j)(4)(A), as in effect on the day 
                        before the date of enactment of the 
                        Federal Public Transportation Act of 
                        2005; and
                            ``(ii) $1,984,000 shall be 
                        available for grants under section 
                        5505(d) to the center identified in 
                        section 5505(j)(4)(F), as in effect on 
                        the day before the date of enactment of 
                        the Federal Public Transportation Act 
                        of 2005.
                    ``(D) Special rule.--Nothing in this 
                paragraph shall be construed to limit the 
                transportation research conducted by the 
                centers receiving financial assistance under 
                this section.
            ``(7) Administration.--
                    ``(A) Trust fund.--For fiscal year 2005, 
                $67,704,000 shall be available from the Mass 
                Transit Account of the Highway Trust Fund to 
                carry out section 5334.
                    ``(B) General fund.--In addition to amounts 
                made available under subparagraph (A), there is 
                authorized to be appropriated $9,672,000 for 
                fiscal year 2005 to carry out section 5334.
            ``(8) Availability of amounts.--Amounts made 
        available or appropriated under paragraphs (1) through 
        (6) shall remain available until expended.
    ``(b) Formula and Bus Grants.--
            ``(1) In general.--There shall be available from 
        the Mass Transit Account of the Highway Trust Fund to 
        carry out sections 5305, 5307, 5308, 5309, 5310, 5311, 
        5316, 5317, 5320, 5335, 5339, and 5340 and section 3038 
        of the Federal Transit Act of 1998 (112 Stat. 387 et 
        seq.)--
                    ``(A) $6,979,931,000 for fiscal year 2006;
                    ``(B) $7,262,775,000 for fiscal year 2007;
                    ``(C) $7,872,893,000 for fiscal year 2008; 
                and
                    ``(D) $8,360,565,000 for fiscal year 2009.
            ``(2) Allocation of funds.--Of the amounts made 
        available under paragraph (1)--
                    ``(A) $95,000,000 for fiscal year 2006, 
                $99,000,000 for fiscal year 2007, $107,000,000 
                for fiscal year 2008, and $113,500,000 for 
                fiscal year 2009 shall be available to carry 
                out section 5305;
                    ``(B) $3,466,681,000 for fiscal year 2006, 
                $3,606,175,000 for fiscal year 2007, 
                $3,910,843,000 for fiscal year 2008, and 
                $4,160,365,000 for fiscal year 2009 shall be 
                allocated in accordance with section 5336 to 
                provide financial assistance for urbanized 
                areas under section 5307;
                    ``(C) $43,000,000 for fiscal year 2006, 
                $45,000,000 for fiscal year 2007, $49,000,000 
                for fiscal year 2008, and $51,500,000 for 
                fiscal year 2009 shall be available to carry 
                out section 5308;
                    ``(D) $1,391,000,000 for fiscal year 2006, 
                $1,448,000,000 for fiscal year 2007, 
                $1,570,000,000 for fiscal year 2008, and 
                $1,666,500,000 for fiscal year 2009 shall be 
                allocated in accordance with section 5337 to 
                provide financial assistance under section 
                5309(m)(2)(B); and
                    ``(E) $822,250,000 for fiscal year 2006, 
                $855,500,000 for fiscal year 2007, $927,750,000 
                for fiscal year 2008, and $984,000,000 for 
                fiscal year 2009 shall be available to carry 
                out section 5309(m)(2)(C).
                    ``(F) $112,000,000 for fiscal year 2006, 
                $117,000,000 for fiscal year 2007, $127,000,000 
                for fiscal year 2008, and $133,500,000 for 
                fiscal year 2009 shall be available to provide 
                financial assistance for services for elderly 
                persons and persons with disabilities under 
                section 5310;
                    ``(G) $388,000,000 for fiscal year 2006, 
                $404,000,000 for fiscal year 2007, $438,000,000 
                for fiscal year 2008, and $465,000,000 for 
                fiscal year 2009 shall be available to provide 
                financial assistance for other than urbanized 
                areas under section 5311;
                    ``(H) $138,000,000 for fiscal year 2006, 
                $144,000,000 for fiscal year 2007, $156,000,000 
                for fiscal year 2008, and $164,500,000 for 
                fiscal year 2009 shall be available to carry 
                out section 5316;
                    ``(I) $78,000,000 for fiscal year 2006, 
                $81,000,000 for fiscal year 2007, $87,500,000 
                for fiscal year 2008, and $92,500,000 for 
                fiscal year 2009 shall be available to carry 
                out section 5317;
                    ``(J) $22,000,000 for fiscal year 2006, 
                $23,000,000 for fiscal year 2007, $25,000,000 
                for fiscal year 2008, and $26,900,000 for 
                fiscal year 2009 shall be available to carry 
                out section 5320;
                    ``(K) $3,500,000 in fiscal year 2006; 
                $3,500,000 in fiscal year 2007; $3,500,000 in 
                fiscal year 2008; and $3,500,000 in fiscal year 
                2009 shall be available to carry out section 
                5335;
                    ``(L) $25,000,000 in fiscal year 2006; 
                $25,000,000 in fiscal year 2007; $25,000,000 in 
                fiscal year 2008; and $25,000,000 in fiscal 
                year 2009 shall be available to carry out 
                section 5339;
                    ``(M) $388,000,000 for fiscal year 2006, 
                $404,000,000 for fiscal year 2007, $438,000,000 
                for fiscal year 2008, and $465,000,000 for 
                fiscal year 2009 shall be allocated in 
                accordance with section 5340 to provide 
                financial assistance for urbanized areas under 
                section 5307 and other than urbanized areas 
                under section 5311; and
                    ``(N) $7,500,000 for fiscal year 2006, 
                $7,600,000 for fiscal year 2007, $8,300,000 for 
                fiscal year 2008, and $8,800,000 for fiscal 
                year 2009 shall be available to carry out 
                section 3038 of the Transportation Equity Act 
                for the 21st Century (49 U.S.C. 5310 note).
    ``(c) Major Capital Investment Grants.--There are 
authorized to be appropriated to carry out section 
5309(m)(2)(A)--
            ``(1) $1,503,000,000 for fiscal year 2006;
            ``(2) $1,566,000,000 for fiscal year 2007;
            ``(3) $1,700,000,000 for fiscal year 2008; and
            ``(4) $1,809,250,000 for fiscal year 2009.
    ``(d) Research and University Research Centers.--
            ``(1) In general.--There is authorized to be 
        appropriated to carry out transit cooperative research 
        programs under section 5313, the National Transit 
        Institute under section 5315, university research 
        centers under section 5506, and national research 
        programs under sections 5312, 5313, 5314, and 5322 
        $58,000,000 for fiscal year 2006, $61,000,000 for 
        fiscal year 2007, $65,500,000 for fiscal year 2008, and 
        $69,750,000 for fiscal year 2009, of which--
                    ``(A) $9,000,000 for fiscal year 2006, 
                $9,300,000 for fiscal year 2007, $9,600,000 for 
                fiscal year 2008, and $10,000,000 for fiscal 
                year 2009 shall be allocated to carry out 
                transit cooperative research programs under 
                section 5313;
                    ``(B) $4,300,000 shall be allocated for 
                each fiscal year to carry out programs under 
                the National Transit Institute under section 
                5315, of which not more than $1,000,000 for 
                each fiscal year shall be used to carry out 
                section 5315(a)(16);
                    ``(C) $7,000,000 shall be allocated for 
                each fiscal year to carry out the university 
                centers program under section 5506;
                    ``(D) $3,000,000 shall be allocated for 
                each fiscal year to carry out Project Action 
                under section 5314(a)(2);
                    ``(E) $1,000,000 shall be allocated for 
                each fiscal year to carry out the National 
                Technical Assistance Center under section 
                5314(c); and
                    ``(F) any funds made available under this 
                paragraph that are not allocated under 
                subparagraphs (A) through (E) shall be 
                allocated to carry out national research 
                programs under sections 5312, 5313, 5314, and 
                5322.
            ``(2) University centers program.--
                    ``(A) Allocation.--Of the amounts allocated 
                under paragraph (1)(C), the following amounts 
                shall be available to provide transportation 
                research, training, and curriculum development:
                            ``(i) $2,000,000 for each of fiscal 
                        years 2006 through 2009 for the 
                        University of Tennessee--Knoxville 
                        National Transportation Research 
                        Center.
                            ``(ii) $1,500,000 for each of 
                        fiscal years 2006 through 2009 for 
                        Texas A&M University--Texas 
                        Transportation Institute.
                            ``(iii) $1,000,000 for each of 
                        fiscal years 2006 through 2009 for 
                        Morgan State University.
                            ``(iv) $400,000 for each of fiscal 
                        years 2006 and 2007 for the Small Urban 
                        & Rural Transit Center at North Dakota 
                        State University.
                            ``(v) $550,000 for each of fiscal 
                        years 2006 and 2007 and $650,000 for 
                        each of fiscal years 2008 and 2009 for 
                        the University Transportation Center at 
                        the University of Alabama.
                            ``(vi) $450,000 for each of fiscal 
                        years 2006 and 2007 and $550,000 for 
                        each of fiscal years 2008 and 2009 for 
                        the Injury Control Research Center at 
                        the University of Alabama Birmingham.
                            ``(vii) $550,000 for each of fiscal 
                        years 2006 and 2007 and $650,000 for 
                        each of fiscal years 2008 and 2009 for 
                        the Jackson State University Intermodal 
                        Transportation Institute at the Jackson 
                        State University.
                            ``(viii) $550,000 for each of 
                        fiscal years 2006 and 2007 and $650,000 
                        for each of fiscal years 2008 and 2009 
                        for the University Transportation 
                        Center at the University of Denver/
                        Mississippi State University.
                    ``(B) Requirements.--The universities 
                specified in subparagraph (A) shall be 
                considered to be university transportation 
                centers under section 5506 and shall be subject 
                to the requirements of subsections (b), (h), 
                (i), (k), (l), and (m) of such section.
    ``(e) Administration.--There is authorized to be 
appropriated to carry out section 5334--
            ``(1) $82,000,000 for fiscal year 2006;
            ``(2) $85,000,000 for fiscal year 2007;
            ``(3) $92,500,000 for fiscal year 2008; and
            ``(4) $98,500,000 for fiscal year 2009.
    ``(f) Grants as Contractual Obligations.--
            ``(1) Grants financed from highway trust fund.--A 
        grant or contract that is approved by the Secretary and 
        financed with amounts made available from the Mass 
        Transit Account of the Highway Trust Fund pursuant to 
        this section is a contractual obligation of the 
        Government to pay the Federal share of the cost of the 
        project.
            ``(2) Grants financed from general fund.--A grant 
        or contract that is approved by the Secretary and 
        financed with amounts appropriated in advance from the 
        General Fund of the Treasury pursuant to this section 
        is a contractual obligation of the Government to pay 
        the Federal share of the cost of the project only to 
        the extent that amounts are appropriated for such 
        purpose by an Act of Congress.
    ``(g) Availability of Amounts.--Amounts made available by 
or appropriated under subsections (b), (c), and (d) shall 
remain available until expended.''.

SEC. 3037. ALTERNATIVES ANALYSIS PROGRAM.

    (a) In General.--Section 5339 is amended to read as 
follows:

``Sec. 5339. Alternatives analysis program

    ``(a) Grants and Agreements.--Under criteria established by 
the Secretary, the Secretary may award grants to States, 
authorities of the States, metropolitan planning organizations, 
and local governmental authorities to develop alternatives 
analyses as defined by section 5309(a)(1).
    ``(b) Government's Share of Costs.--The Government's share 
of the cost of an activity funded using amounts made available 
under this section may not exceed 80 percent of the cost of the 
activity.
    ``(c) Availability of Funds.--An amount made available or 
appropriated under section 5338(b)(2)(L) for this section shall 
remain available for 3 fiscal years, including the fiscal year 
in which the amount is made available or appropriated. Any of 
such amounts that are unobligated at the end of the 3-fiscal-
year period may be used by the Secretary for any purpose under 
this section.''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by striking the item relating to section 5339 and 
inserting the following:

``5339. Alternatives analysis program.''.

    (c) Projects.--For each of fiscal years 2006 and 2007, of 
the funds authorized under this section, funds shall be made 
available to the following projects in not less than the 
amounts specified:
            (1) Minnesota Red Rock Corridor/Rush Line/Central 
        Corridors studies, $2,000,000.
            (2) Trans-Hudson Midtown corridor study, 
        $1,500,000.
            (3) Lane County, Oregon Bus Rapid Transit Phase II 
        corridor study, $500,000.
            (4) Portland Streetcar, Oregon corridor study, 
        $1,500,000.
            (5) San Gabriel Valley-Gold Line Foothill Extension 
        corridor study, $1,250,000.
            (6) Monmouth-Ocean-Middlesex Counties, New Jersey 
        corridor study, $1,250,000.
            (7) Metra BNSF Naperville to Aurora corridor study, 
        $1,250,000.
            (8) Madison and Dane Counties, Wisconsin Transport 
        2020 corridor study, $750,000.
            (9) Sound Transit I-90 Long-Range Plan corridor 
        studies, $750,000.
            (10) Middle Rio Grande Coalition of governments, 
        Albuquerque to Santa Fe corridor study, $500,000.
            (11) Piedmont Authority Regional Transportation 
        East-West corridor study, $1,000,000.
            (12) Baltimore Red Line/Green Line Transit Project 
        study, $1,500,000.
            (13) Metra-West Line Extension, Elgin to Rockford 
        study, $1,000,000.
            (14) Madison-Ridgeland Transportation Commission, 
        Mississippi, Madison Light Rail Transportation Corridor 
        study, $350,000.
            (15) South Carolina Department of Transportation 
        Light Rail study, $300,000.
            (16) Provo Orem BRT study, $500,000.
            (17) Sevierville County Transportation Board, 
        Sevier County BRT study, $500,000.
            (18) New Jersey Transit Midtown Project study, 
        $2,500,000.

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

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

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

    ``(a) Definition.--In this section, the term `State' shall 
mean each of the 50 States of the United States.
    ``(b) Allocation.--Of the amounts made available for each 
fiscal year under section 5338(b)(2)(M), the Secretary shall 
apportion--
            ``(1) 50 percent to States and urbanized areas in 
        accordance with subsection (c); and
            ``(2) 50 percent to States and urbanized areas in 
        accordance with subsection (d).
    ``(c) Growing State Apportionments.--
            ``(1) Apportionment among states.--The amounts 
        apportioned under subsection (b)(1) shall provide each 
        State with an amount equal to the total amount 
        apportioned multiplied by a ratio equal to the 
        population of that State forecast for the year that is 
        15 years after the most recent decennial census, 
        divided by the total population of all States forecast 
        for the year that is 15 years after the most recent 
        decennial census. Such forecast shall be based on the 
        population trend for each State between the most recent 
        decennial census and the most recent estimate of 
        population made by the Secretary of Commerce.
            ``(2) Apportionments between urbanized areas and 
        other than urbanized areas in each state.--
                    ``(A) In general.--The Secretary shall 
                apportion amounts to each State under paragraph 
                (1) so that urbanized areas in that State 
                receive an amount equal to the amount 
                apportioned to that State multiplied by a ratio 
                equal to the sum of the forecast population of 
                all urbanized areas in that State divided by 
                the total forecast population of that State. In 
                making the apportionment under this 
                subparagraph, the Secretary shall utilize any 
                available forecasts made by the State. If no 
                forecasts are available, the Secretary shall 
                utilize data on urbanized areas and total 
                population from the most recent decennial 
                census.
                    ``(B) Remaining amounts.--Amounts remaining 
                for each State after apportionment under 
                subparagraph (A) shall be apportioned to that 
                State and added to the amount made available 
                for grants under section 5311.
            ``(3) Apportionments among urbanized areas in each 
        state.--The Secretary shall apportion amounts made 
        available to urbanized areas in each State under 
        paragraph (2)(A) so that each urbanized area receives 
        an amount equal to the amount apportioned under 
        paragraph (2)(A) multiplied by a ratio equal to the 
        population of each urbanized area divided by the sum of 
        populations of all urbanized areas in the State. 
        Amounts apportioned to each urbanized area shall be 
        added to amounts apportioned to that urbanized area 
        under section 5336, and made available for grants under 
        section 5307.
    ``(d) High Density State Apportionments.--Amounts to be 
apportioned under subsection (b)(2) shall be apportioned as 
follows:
            ``(1) Eligible states.--The Secretary shall 
        designate as eligible for an apportionment under this 
        subsection all States with a population density in 
        excess of 370 persons per square mile.
            ``(2) State urbanized land factor.--For each State 
        qualifying for an apportionment under paragraph (1), 
        the Secretary shall calculate an amount equal to--
                    ``(A) the total land area of the State (in 
                square miles); multiplied by
                    ``(B) 370; multiplied by
                    ``(C)(i) the population of the State in 
                urbanized areas; divided by
                    ``(ii) the total population of the State.
            ``(3) State apportionment factor.--For each State 
        qualifying for an apportionment under paragraph (1), 
        the Secretary shall calculate an amount equal to the 
        difference between the total population of the State 
        less the amount calculated in paragraph (2).
            ``(4) State apportionment.--Each State qualifying 
        for an apportionment under paragraph (1) shall receive 
        an amount equal to the amount to be apportioned under 
        this subsection multiplied by the amount calculated for 
        the State under paragraph (3) divided by the sum of the 
        amounts calculated under paragraph (3) for all States 
        qualifying for an apportionment under paragraph (1).
            ``(5) Apportionments among urbanized areas in each 
        state.--The Secretary shall apportion amounts made 
        available to each State under paragraph (4) so that 
        each urbanized area receives an amount equal to the 
        amount apportioned under paragraph (4) multiplied by a 
        ratio equal to the population of each urbanized area 
        divided by the sum of populations of all urbanized 
        areas in the State. Amounts apportioned to each 
        urbanized area shall be added to amounts apportioned to 
        that urbanized area under section 5336, and made 
        available for grants under section 5307.''.
    (b) Conforming Amendment.--The analysis for chapter 53 is 
amended by adding at the end the following:

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

SEC. 3039. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.

    (a) In General.--Section 3038 of the Transportation Equity 
Act for the 21st Century (49 U.S.C. 5310 note; 112 Stat. 392) 
is amended--
            (1) by striking the section heading and inserting 
        the following:

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

            (2) by striking subsection (e) and inserting the 
        following:
    ``(e) Federal Share of Costs.--The Federal share of costs 
under this section shall be provided from funds made available 
to carry out this section and shall be determined in accordance 
with section 5323(i) of title 49, United States Code.''; and
            (3) by striking subsection (g) and inserting the 
        following:
    ``(g) Funding.--
            ``(1) Intercity, fixed route over-the-road bus 
        service.--Of the amounts made available to carry out 
        this section in each fiscal year, 75 percent shall be 
        available for operators of over-the-road buses used 
        substantially or exclusively in intercity, fixed-route 
        over-the-road bus service to finance the incremental 
        capital and training costs of the Department of 
        Transportation's final rule regarding accessibility of 
        over-the-road buses. Such amounts shall remain 
        available until expended.
            ``(2) Other over-the-road bus service.--Of the 
        amounts made available to carry out this section in 
        each fiscal year, 25 percent shall be available for 
        operators of other over-the-road bus service to finance 
        the incremental capital and training costs of the 
        Department of Transportation's final rule regarding 
        accessibility of over-the-road buses. Such amounts 
        shall remain available until expended.''.
    (b) Conforming Amendments.--The table of contents contained 
in section 1(b) of the Transportation Equity Act for the 21st 
Century (112 Stat. 107) is amended by striking the item 
relating to section 3038 and inserting the following:

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

SEC. 3040. OBLIGATION CEILING.

    Notwithstanding any other provision of law, the total of 
all obligations from amounts made available from the Mass 
Transit Account of the Highway Trust Fund by, and amounts 
appropriated under, subsections (a) through (f) of section 5338 
of title 49, United States Code, shall not exceed--
            (1) $7,646,336,000 for fiscal year 2005, of which 
        not more than $6,690,544,000 shall be from the Mass 
        Transit Account;
            (2) $8,622,931,000 for fiscal year 2006, of which 
        not more than $6,979,931,000 shall be from the Mass 
        Transit Account;
            (3) $8,974,775,000 for fiscal year 2007, of which 
        not more than $7,262,775,000 shall be from the Mass 
        Transit Account;
            (4) $9,730,893,000 for fiscal year 2008, of which 
        not more than $7,871,895,000 shall be from the Mass 
        Transit Account; and
            (5) $10,338,065,000 for fiscal year 2009, of which 
        not more than $8,360,565,000 shall be from the Mass 
        Transit Account.

SEC. 3041. ADJUSTMENTS FOR FISCAL YEAR 2005.

    (a) In General.--Notwithstanding any other provision of 
law, the Secretary shall ensure that the total apportionments 
and allocations made for fiscal year 2005 to each grant 
recipient under the Federal Transit Administration programs 
shall not exceed the amount made available under section 5338 
of title 49, United States Code, as amended by this title, for 
fiscal year 2005 plus prior year balances.
    (b) Fixed Guideway Modernization Adjustment.--In making the 
apportionments described in subsection (a), the Secretary shall 
adjust the amount apportioned for fiscal year 2005 to each 
urbanized area for fixed guideway modernization to reflect the 
apportionment method set forth in section 5337(a) of title 49, 
United States Code.
    (c) Reconciliation.--Funds authorized by or made available 
under section 5338, as amended by this title, for fiscal year 
2005--
            (1) shall not be subject to the across-the-board 
        rescissions in section 122 of division J of Public Law 
        108-477;
            (2) shall be transferred or made available for the 
        purposes as indicated in division H of Public Law 108-
        477, as amended by Public Law 109-13; and
            (3) shall be administered consistent with the 
        applicable formula authorized under Public Law 105-178, 
        as amended.

SEC. 3042. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST PUBLIC 
                    TRANSPORTATION SYSTEMS.

    (a) In General.--Section 1993 of title 18, United States 
Code, is amended--
            (1) in the section heading by striking ``mass'' and 
        inserting ``public'';
            (2) by striking ``mass'' each place the term 
        appears and inserting ``public'';
            (3) in subsection (a)(5) by inserting 
        ``controlling,'' after ``operating,''; and
            (4) in subsection (c)(5) by striking ``5302(a)(7) 
        of title 49, United States Code,'' and inserting 
        ``5302(a) of title 49,''.
    (b) Chapter Analysis.--The analysis for chapter 97 of title 
18, United States Code, is amended by striking the item 
relating to section 1993 and inserting the following:

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

SEC. 3043. PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY CAPITAL 
                    PROJECTS.

    (a) Existing Full Funding Grant Agreements.--The following 
projects are authorized for final design and construction for 
existing full funding grant agreements in not less than the 
amount specified for each fiscal year:
            (1) Atlanta--North Springs Extension $263,287 for 
        fiscal year 2005.
            (2) Baltimore--Central LRT Double Tracking 
        $28,777,920 for fiscal year 2005 and $12,655,664 for 
        fiscal year 2006.
            (3) Charlotte--South Corridor LRT $29,760,000 for 
        fiscal year 2005, $55,000,000 for fiscal year 2006, and 
        $69,405,565 for fiscal year 2007.
            (4) Chicago--Chicago Transit Authority Douglas 
        Branch Reconstruction $84,320,000 for fiscal year 2005 
        and $45,825,190 for fiscal year 2006.
            (5) Chicago--Chicago Transit Authority Ravenswood 
        Expansion Project $39,680,000 for fiscal year 2005, 
        $40,000,000 for fiscal year 2006, $40,000,000 for 
        fiscal year 2007, $40,000,000 for fiscal year 2008, and 
        $65,152,615 for fiscal year 2009.
            (6) Cleveland--Euclid Corridor Transportation 
        Project $24,800,000 for fiscal year 2005 and 
        $24,774,513 for fiscal year 2006.
            (7) Denver Southeast Corridor LRT $79,360,000 for 
        fiscal year 2005, $80,000,000 for fiscal year 2006, 
        $80,000,000 for fiscal year 2007, and $77,192,758 for 
        fiscal year 2008.
            (8) Fort Lauderdale--Tri-Rail Commuter Rail Upgrade 
        $11,210,695 for fiscal year 2005.
            (9) Los Angeles--Metro Gold Line Eastside Extension 
        $59,520,000 for fiscal year 2005, $80,000,000 for 
        fiscal year 2006, $100,000,000 for fiscal year 2007, 
        $80,000,000 for fiscal year 2008, and $80,000,000 for 
        fiscal year 2009.
            (10) Los Angeles--North Hollywood MOS-3 $663,339 in 
        fiscal year 2005. 
            (11) Metra North Central Corridor Commuter Rail 
        $24,084,000 for fiscal year 2005 and $16,529,452 for 
        fiscal year 2006.
            (12) Metra South West Corridor Commuter Rail 
        $15,500,000 for fiscal year 2005 and $11,781,395 for 
        fiscal year 2006.
            (13) Metra Union Pacific West Line Extension 
        $12,000,000 for fiscal year 2005 and $14,285,749 for 
        fiscal year 2006.
            (14) Minneapolis--Hiawatha Corridor LRT $33,111,257 
        for fiscal year 2005.
            (15) New Jersey Urban Core--Hudson-Bergen LRT 
        $313,896.
            (16) New Jersey Urban Core--Hudson-Bergen LRT MOS-2 
        $99,200,000 for fiscal year 2005, $100,000,000 for 
        fiscal year 2006, $100,000,000 for fiscal year 2007, 
        and $53,202,995 for fiscal year 2008.
            (17) New Jersey Urban Core--Newark-Elizabeth Rail 
        Link MOS-1 $1,342,076 for fiscal year 2005.
            (18) New Orleans MOS-1 Canal Street $16,455,206 for 
        fiscal year 2005.
            (19) Phoenix--Central Phoenix/East Valley LRT 
        $74,400,000 for fiscal year 2005, $90,000,000 for 
        fiscal year 2006, $90,000,000 for fiscal year 2007, 
        $90,000,000 for fiscal year 2008, and $90,000,000 for 
        fiscal year 2009.
            (20) Pittsburgh--North Shore LRT Connector 
        $54,560,000 in fiscal year 2005, $55,000,000 in fiscal 
        year 2006, $55,000,000 in fiscal year 2007, and 
        $14,421,944 in fiscal year 2008.
            (21) Pittsburgh--Stage II LRT Reconstruction 
        $1,120,854 for fiscal year 2005.
            (22) Portland--Interstate MAX LRT Extension 
        $23,292,160 fiscal year 2005 and $18,292,550 for fiscal 
        year 2006.
            (23) St. Louis--Metrolink Extension St. Clair 
        County, IL $53,383 for fiscal year 2005.
            (24) Salt Lake City--CBD to University LRT 
        $1,127,405 for fiscal year 2005.
            (25) Salt Lake City--Medical Center $8,682,141 for 
        fiscal year 2005.
            (26) San Diego--Mission Valley East LRT Extension 
        $80,986,880 for fiscal year 2005 and $8,353,424 for 
        fiscal year 2006.
            (27) San Diego--Oceanside Escondido Rail Corridor 
        $54,560,000 fiscal year 2005 and $12,651,061 for fiscal 
        year 2006.
            (28) San Francisco--BART Extension to San Francisco 
        Airport $99,200,000 fiscal year 2005 and $82,655,680 
        for fiscal year 2006.
            (29) San Juan--Tren Urbano $44,263,040 fiscal year 
        2005 and $10,555,900 for fiscal year 2006.
            (30) Seattle--Central Link Initial Segment LRT 
        $79,360,000 for fiscal year 2005, $80,000,000 for 
        fiscal year 2006, $80,000,000 for fiscal year 2007, 
        $70,000,000 for fiscal year 2008, and $24,028,149 for 
        fiscal year 2009.
            (31) Washington DC/MD--Largo Metrorail Extension 
        $75,432,887 for fiscal year 2005.
    (b) Final Design and Construction.--The following projects 
are authorized for final design and construction for fiscal 
years 2005 through 2009 under paragraphs (1)(A) and (2)(A) of 
section 5309(m) of title 49, United States Code:
            (1) Baltimore--MARC Commuter Rail Improvements.
            (2) Boston--Silver Line BRT Phase III.
            (3) Central Florida Commuter Rail System.
            (4) Charlotte--South Corridor LRT.
            (5) Dallas Area Rapid Transit--Northwest-Southeast 
        LRT Extension.
            (6) Delaware--Wilmington-Newark Commuter Rail 
        Improvements.
            (7) Denver--West Corridor LRT.
            (8) El Paso--Rapid Transit (SMART) Starter Line.
            (9) Harrisburg--Corridor One Commuter Rail (MOS-1).
            (10) Houston Advanced Transit Program Light Rail.
            (11) Kansas City, Missouri--Southtown BRT.
            (12) Las Vegas--Resort Corridor Downtown Extension 
        Project.
            (13) Los Angeles MTA--Exposition LRT.
            (14) Miami-Dade Transit--North Corridor.
            (15) Minneapolis--North Star Corridor.
            (16) Nashua--Commuter Rail.
            (17) Nashville, Tennessee Commuter Rail.
            (18) New Britain-Hartford Busway Project.
            (19) New Orleans--Desire Corridor Streetcar.
            (20) New York--Long Island Railroad East Side 
        Access Project.
            (21) New York--Second Avenue Subway.
            (22) Norfolk Light Rail.
            (23) Northern Virginia--Dulles Corridor Extension 
        to Wiehle Avenue (Phase 1).
            (24) Orange County, California--Rapid Transit 
        Project.
            (25) Philadelphia--Schuylkill Valley MetroRail.
            (26) Pittsburgh--North Shore Connector.
            (27) Portland, Oregon--South Corridor I-205/
        Portland Mall LRT.
            (28) Providence--South County Commuter Rail.
            (29) Sacramento--South Corridor LRT Extension 
        (Phase 2), Meadowview to Consumnes River College.
            (30) Salt Lake City--Weber County to Salt Lake City 
        Commuter Rail.
            (31) San Diego--Mid-Coast Extension.
            (32) San Francisco Muni--Third Street LRT-Phase I/
        II.
            (33) San Gabriel Valley--Gold Line Foothill 
        Extension Phase I/PhaseII, Los Angeles to Montclair.
            (34) Santa Clara Valley Transit Authority--Silicon 
        Valley Rapid Transit Corridor.
            (35) Tampa Bay--Regional Rail.
            (36) Triangle Transit Authority, North Carolina--
        Regional Rail Project.
            (37) Washington County, Oregon--Wilsonville to 
        Beaverton Commuter Rail.
            (38) Wasilla-Girdwood, Alaska--Commuter Rail.
    (c) Preliminary Engineering.--The following projects are 
authorized for preliminary engineering for fiscal years 2005 
through 2009 under paragraphs (1)(A) and (2)(A) of section 
5309(m) of title 49, United States Code:
            (1) Alameda, California--Fixed Guideway Corridor 
        Project.
            (2) Alameda, California--Transit Improvements and 
        Multimodal Center.
            (3) Albuquerque--High Capacity Corridor.
            (4) Ann Arbor/Downtown Detroit--Transit Improvement 
        Project.
            (5) Atlanta--East Line 1-20 Corridor Project.
            (6) Atlanta--MARTA Memorial Drive Bus Rapid 
        Transit.
            (7) Atlanta--GRTA I-75 Corridor, Downtown Atlanta--
        Cherokee County.
            (8) Atlanta--Interstate 285 Transit Corridor.
            (9) Atlanta--Georgia 400 North Line Corridor 
        Project.
            (10) Atlanta--Belt Line C-Loop.
            (11) Atlanta--I-20 East Line I-20 Corridor Project.
            (12) Atlanta--West Line I-20 Corridor Project.
            (13) Austin--San Antonio I-35 Commuter Rail.
            (14) Austin--Rapid Bus Project.
            (15) Austin--Urban Commuter Rail.
            (16) Baltimore Red Line/Green Line Transit Project.
            (17) Baton Rouge--Bus Rapid Transit.
            (18) Bayonne, New Jersey--Hudson Bergen LRT 
        Extension to NY Harbor.
            (19) Bernalillo-Santa Fe--New Mexico Commuter Rail.
            (20) Birmingham, Alabama--Transit Corridor.
            (21) Boise--Downtown Circulator.
            (22) Boise, Idaho--Valley Regional Transit Rail 
        Corridor Preservation.
            (23) Boston--Assembly Square Orange Line Station.
            (24) Boston--Lechmere Transit Improvement to 
        Somerville and Medford.
            (25) Boston--North Shore Corridor and Blue Line 
        Extension.
            (26) Boston--North/South Rail Link.
            (27) Boston--Urban Ring BRT.
            (28) Bridgeport, Connecticut--Bridgeport Intermodal 
        Facility.
            (29) Broward County, Florida--Bus Rapid Transit.
            (30) Camden, New Jersey--North Ferry Terminal.
            (31) Carrollton, Texas--Regional Intermodal 
        Passenger Rail Facility Project.
            (32) Cedar Rapids, Iowa--River Rail Project.
            (33) Central Phoenix--East Valley Corridor LRT 
        Extensions.
            (34) Charlotte--Charlotte Multimodal Station.
            (35) Charlotte--North Corridor Project.
            (36) Charlotte--Northeast Corridor Project.
            (37) Charlotte--South Corridor LRT extension to 
        Rock Hill, South Carolina.
            (38) Charlotte--Southeast Corridor Project.
            (39) Charlotte--West Corridor Project.
            (40) Charlotte--Center City Streetcar Project.
            (41) Chicago--Cermack Road BRT.
            (42) Chicago CTA--Red Line Extension.
            (43) Chicago CTA--Chicago Transit Hub (Circle Line-
        Ogden Streetcar).
            (44) Chicago CTA--Orange Line Extension (Midway 
        Airport to Ford City).
            (45) Chicago CTA--Yellow Line Extension (Dempster-
        Old Orchard).
            (46) Chicago--Ogden Avenue Corridor.
            (47) Chicago--Pace Golf Road Bus Rapid Transit.
            (48) Chula Vista, California--Bus Rapid Transit.
            (49) Clark County, Washington--MAX Extension.
            (50) Cleveland-Akron-Canton (Northeast Ohio) 
        Commuter Rail.
            (51) Columbia, South Carolina--Light Rail.
            (52) Columbus--North Corridor LRT Project.
            (53) Contra-Costa--BART Extension.
            (54) Corpus Christi--Downtown Rail Trolley.
            (55) Dallas Area Rapid Transit--Dallas Central 
        Business District.
            (56) Dallas Area Rapid Transit--Rowlett LRT 
        Extension.
            (57) Dallas Area Rapid Transit--Beltline to DFW 
        Airport.
            (58) Dayton--Aviation Heritage Corridor Streetcar 
        Project.
            (59) Dayton--Aviation Heritage Corridor Streetcar 
        Project Phase I.
            (60) Denton County Transportation Authority, 
        Texas--Fixed Guideway Project.
            (61) Denver--Gold Line Extension to Arvada.
            (62) Denver--RR Right of Way Acquisition.
            (63) Denver--United States Route 36 Transit 
        Corridor.
            (64) Denver--North Metro Corridor to Thornton.
            (65) Denver--East Corridor to DIA Airport.
            (66) Denver--I-225 Transit Corridor.
            (67) Denver--Southeast Corridor Extension to Lone-
        Tree/Ridgegate.
            (68) Denver--Southwest Corridor Extension to C470/
        Lucent Boulevard.
            (69) Detroit--Center City Loop.
            (70) Detroit--Woodward Corridor.
            (71) District of Columbia--Light Rail Starter Line.
            (72) Erie, Pennsylvania--Ferry Acquisition.
            (73) Fitchburg, Massachusetts--Commuter Rail 
        Extensions and Improvements.
            (74) Florence-Myrtle Beach, South Carolina--Transit 
        Corridor.
            (75) Fort Lauderdale--Downtown Rail Link.
            (76) Fort Lauderdale--Transit Project from NW 215th 
        and 79th Streets.
            (77) Fort Worth--Cottonbelt Commuter Rail to DFW.
            (78) Fort Worth--Trinity Railway Express Commuter 
        Rail Extensions.
            (79) Galveston--Rail Trolley Extension.
            (80) Glendale, California--Downtown Streetcar.
            (81) Grand Rapids--Fixed Guideway Corridor Project.
            (82) Guam--Tumon Bay-Airport Light Rail.
            (83) Harrisburg, Pennsylvania--Corridor One MOS-2 
        (East Mechanicsburg to Carlisle).
            (84) Harrison County, Mississippi--Canal Road 
        Intermodal Connector.
            (85) Henderson-Las Vegas-North Las Vegas--Regional 
        Fixed Guideway Project.
            (86) Honolulu--Rapid Transit Project.
            (87) Houston--Commuter Rail Service in Harris & 
        Fort Bend Counties.
            (88) Houston--Advanced Transportation Technology 
        System.
            (89) Indianapolis--System of Metropolitan Area 
        Rapid Transit.
            (90) Jacksonville--East-Southwest BRT.
            (91) Jacksonville--North-Southeast BRT.
            (92) Kansas City, Missouri-Lawrence, Kansas--
        Commuter Rail.
            (93) Kenosha-Racine-Milwaukee Metra Commuter Rail 
        Extension (Wisconsin).
            (94) Kenosha, Wisconsin Streetcar Expansion 
        Project.
            (95) King County, Washington--I-405 Corridor Bus 
        Rapid Transit.
            (96) Lake Tahoe--Passenger Ferry Service.
            (97) Lakeville, Minnesota--Cedar Avenue Corridor 
        Bus Rapid Transit.
            (98) Lane County, Oregon--Bus Rapid Transit, Phase 
        2.
            (99) Las Vegas--Boulder Highway MAX Bus Rapid 
        Transit.
            (100) Little Rock--River Rail Streetcar Extensions.
            (101) Little Rock--West Little Rock Commuter Rail.
            (102) Livermore, California--BART Rail Extension to 
        Livermore.
            (103) Long Island Railroad--Nassau Hub.
            (104) Lorain-Cleveland Commuter Rail.
            (105) LOSSAN Del Mar-San Diego--Rail Corridor 
        Improvements.
            (106) Lovejoy to Griffin, Georgia Commuter Rail.
            (107) Madison, Wisconsin--Madison Streetcar.
            (108) Madison, Wisconsin--Light Rail 
        Transportation.
            (109) Madison and Dane Counties, Wisconsin--
        Transport 2020 Commuter Rail.
            (110) Maryland--I-270 Corridor Cities Transitway.
            (111) Maryland--Route 5 Corridor to Waldorf.
            (112) Maryland--Silver Spring Capacity 
        Improvements.
            (113) Massachusetts--Commuter Rail Extensions to 
        Worcester and New Bedford.
            (114) Memphis--Downtown Airport Corridor.
            (115) Memphis--Intermodal Terminal.
            (116) Memphis Regional Rail Plan.
            (117) Metra BNSF Naperville to Aurora Corridor 
        Extension and Improvements.
            (118) Metra South Suburban Airport Commuter Rail 
        Extension.
            (119) Metra SouthEast Service Line Commuter Rail.
            (120) Metra STAR Line Inter-Suburban Commuter Rail.
            (121) Metra UP Northwest Line Core Capacity 
        Upgrades.
            (122) Metra UP West Line Core Capacity Upgrades.
            (123) Metra-West Line Extension, Elgin to Rockford.
            (124) Miami-Dade Transit--Douglas Road Extension.
            (125) Miami-Dade Transit--East-West Corridor.
            (126) Miami-Dade Transit--Kendall Corridor.
            (127) Miami-Dade Transit--Northeast Corridor.
            (128) Miami-Dade Transit--South Dade Corridor.
            (129) Miami-Dade Transit--Miami Intermodal Center 
        to Earlington Heights.
            (130) Miami--Downtown Streetcar Project.
            (131) Middletown-South Fallsburg, New York, 
        Passenger Rail.
            (132) Milwaukee--Downtown Dedicated Guideway 
        Transit Connector.
            (133) Minneapolis--Northwest Corridor Busway.
            (134) Minneapolis-St. Paul--Central Corridor 
        Transit Project.
            (135) Minneapolis-St. Paul-Hinckley, Minnesota--
        Rush Line Corridor.
            (136) Missouri/Kansas--Interstate 35 Transit 
        Corridor.
            (137) Monterey County, California--Commuter Rail.
            (138) Montgomery and Prince George's Counties, 
        Maryland--Bi-County Transitway (Purple Line).
            (139) Nashua-Manchester--Commuter Rail Extension.
            (140) Nashville--Area Transit Corridors.
            (141) Nashville--Southeast Rail Corridor.
            (142) Nashville Tennessee Commuter Rail.
            (143) Nassau and Queens Counties, New York--LIRR 
        Main Line Third Track Project.
            (144) New Bedford-Fall River, Massachusetts--
        Commuter Rail Extension.
            (145) New Haven, Connecticut-Hartford, Connecticut-
        Springfield, Massachusetts Commuter Line.
            (146) New Jersey Trans-Hudson Midtown Corridor.
            (147) New Jersey Transit--Northeast Corridor Trans-
        Hudson Commuter Rail Improvements.
            (148) New Jersey Transit--Morris/Essex/Boonton 
        Trans-Hudson Commuter Rail Improvements.
            (149) New Jersey Transit--New York Susquehanna and 
        Western RR Commuter Extension.
            (150) New Jersey Transit--Phillipsburg Extension.
            (151) New Jersey Transit--West Trenton Line 
        Commuter Line Service Extension.
            (152) New Jersey-Pennsylvania Lackawanna Cutoff 
        Rail Restoration.
            (153) New Jersey Urban Core.
            (154) New Orleans--Airport-CBD Commuter Rail.
            (155) New Orleans--Riverfront Streetcar Downriver 
        Extension.
            (156) New Orleans--Riverfront Streetcar Upriver 
        Extension.
            (157) New York--Governors Island Transportation 
        Access.
            (158) New York--Long Island Sound (Long Island) 
        Ferry Service.
            (159) New York--Long Island Sound (Westchester) 
        Ferry Service.
            (160) New York--NYC Bus Rapid Transit.
            (161) New York--NYC Highline.
            (162) New York--Penn Station Access Project.
            (163) New York--Rockaway-Brooklyn Army Terminal-
        Manhattan Ferry Service.
            (164) New York--Staten Island to Manhattan High-
        Speed Ferry Service Extension.
            (165) New York--Stewart Airport Rail Access.
            (166) New York--Tappan Zee I-287 Corridor.
            (167) New York--West Harlem Waterfront Ferry 
        Improvements.
            (168) Newburg, New York--LRT System.
            (169) Northern Indiana--Commuter District Line.
            (170) Northern Indiana--West Lake Commuter Rail 
        Link (South Shore Commuter Rail).
            (171) Norfolk--Naval Station Corridor.
            (172) Norfolk-Petersburg--United States Route 460 
        Commuter Rail Project.
            (173) Northern Virginia--Crystal City Potomac Yards 
        Transit.
            (174) Northern Virginia--Columbia Pike Rapid 
        Transit Project.
            (175) Northern Virginia--Dulles Corridor Extension, 
        Phase 2.
            (176) Northern Virginia--Richmond Highway (Route 1) 
        Rapid Transit Project.
            (177) Oakland--Telegraph Avenue/International Blvd/
        East 14th Street BRT.
            (178) Ogden--Intermodal-Weber State University 
        Transit Connection.
            (179) Orange County, California--Bus Rapid Transit.
            (180) Orlando-Orange County, Florida--Light Rail 
        Project.
            (181) Ottawa, Illinois--Illinois Valley Commuter 
        Rail Extension.
            (182) Pawtucket, Rhode Island--Commuter Rail 
        Station.
            (183) Philadelphia--Elwyn to Wawa Train Service 
        Restoration.
            (184) Philadelphia--Navy Yard Transit Extension.
            (185) Philadelphia--52nd Street City Connector 
        Project.
            (186) Philadelphia--Route 100 Rapid Trolley 
        Extension.
            (187) Philadelphia--Broad Street Subway Line 
        Extension.
            (188) Piedmont Authority Regional Transportation--
        East-West Rail Transit Corridor Project.
            (189) Pinellas Mobility Initiative Bus Rapid 
        Transit.
            (190) Pittsburgh--Keystone West Passenger Rail 
        Corridor in Blair, Cambria, West Moreland, and 
        Allegheny Counties.
            (191) Pittsburgh--East-West Corridor Rapid Transit.
            (192) Pittsburgh--Martin Luther King, Jr. Busway 
        Extension.
            (193) Pittsburgh--Oakland Technology Corridor.
            (194) Portland Streetcar Extensions.
            (195) Portland-Yarmouth-Brunswick-Lewiston/Auburn 
        Passenger Rail.
            (196) Providence--South County Commuter Rail Phase 
        II.
            (197) Provo-Orem Utah--Bus Rapid Transit.
            (198) Quakertown-Stoney Creek, Pennsylvania--Rail 
        Restoration.
            (199) Raritan Valley, New Jersey--Commuter Rail.
            (200) Reno, Nevada--Virginia Street Bus Rapid 
        Transit Project.
            (201) Riverside County, California--Perris Valley 
        Line Metrolink Extension.
            (202) Roaring Fork Valley, Colorado--Bus Rapid 
        Transit.
            (203) Rock Island, Illinois--Quad Cities Rapid 
        Transit System.
            (204) Sacramento--Downtown Streetcar Project.
            (205) Sacramento--Regional Rail, Auburn to Oakland.
            (206) Sacramento--Downtown/Natomas Airport Transit 
        Corridor.
            (207) Salt Lake City--Airport to University LRT.
            (208) Salt Lake City--Delta Center to Gateway 
        Intermodal Center LRT Extension.
            (209) Salt Lake City--Draper to Sandy LRT 
        Extension.
            (210) Salt Lake-Provo--Commuter Rail Extension.
            (211) Salt Lake City--TRAX Capacity Improvements.
            (212) Salt Lake City--West Valley City LRT 
        Extension.
            (213) Salt Lake City--West Valley City 3500 South 
        BRT.
            (214) Salt Lake City--West Jordan LRT extension.
            (215) Salt Lake City to South Davis Transit 
        Connection.
            (216) San Antonio--Bus Rapid Transit.
            (217) San Diego--First Bus Rapid Transit.
            (218) San Diego--San Diego Imperial County Mag-Lev 
        Rail Airport Corridor Project.
            (219) San Diego--Sprinter Rail Line Extension 
        Project.
            (220) San Francisco--BART Extension to Livermore.
            (221) San Francisco--BART Extension to Oakland 
        International Airport.
            (222) San Francisco--MUNI Geary Boulevard Bus Rapid 
        Transit.
            (223) San Francisco--Oyster Point Ferry Terminal.
            (224) San Francisco--Transbay Terminal/Caltrain 
        Downtown Extension Project.
            (225) San Joaquin, California--Regional Rail 
        Commission Central Valley Rail Service.
            (226) San Joaquin Regional Rail Commission Commuter 
        Rail (Altamont Commuter Express).
            (227) San Juan Tren Urbano--Extension from Rio 
        Piedras to Carolina.
            (228) San Juan--Tren Urbano Minillas Extension.
            (229) Santa Fe--El Dorado Rail Link.
            (230) Seattle--Monorail Project Post--Green Line 
        Extensions.
            (231) Seattle--Link LRT Extensions.
            (232) Seattle--Sound Transit Commuter Rail.
            (233) Seattle--Sound Transit Regional Express Bus.
            (234) Sevierville to Pigeon Ford, Tennessee--Bus 
        Rapid Transit.
            (235) Sonoma/Marin (SMART) Commuter Rail, 
        California.
            (236) Southern California High Speed Regional 
        Transit.
            (237) Southern New Jersey to Philadelphia Transit 
        Project.
            (238) St. Louis Metro Link--Scott AFB to Mid 
        America Airport.
            (239) St. Louis--East/West Gateway.
            (240) St. Louis--Metro Link Northside Daniel Boone 
        Project.
            (241) St. Louis--Metro South Corridor.
            (242) St. Louis--University Downtown Trolley.
            (243) St. Paul--Red Rock Corridor Commuter Rail 
        Project.
            (244) Stamford, Connecticut--Boston Post Road 
        Intermodal Center and Capacity Expansion Project.
            (245) Stamford, Connecticut--Urban Transitway Phase 
        II.
            (246) Tampa--Bus Rapid Transit Improvements.
            (247) Tampa--Streetcar Extension to Downtown Tampa.
            (248) Toledo, Ohio--CBD to Zoo.
            (249) Toledo, Ohio--University Corridor.
            (250) Trenton Trolley.
            (251) Tri-Rail Dolphin Extension.
            (252) Tri-Rail Florida East Coast Commuter Rail 
        Extension.
            (253) Tri-Rail Jupiter Extension.
            (254) Tri-Rail Scripps Corridor Extension Project.
            (255) Tucson--Old Pueblo Trolley Expansion.
            (256) Vancouver--Interstate MAX Extension to Clark 
        County, Washington.
            (257) Virginia Beach--Bus Rapid Transit.
            (258) Virginia Railway Express Capacity 
        Improvements.
            (259) Washington, D.C.--Woodrow Wilson Bridge 
        Transit Projects.
            (260) Washington State Ferries and Ferry 
        Facilities.
            (261) Washington State--Issaquah Valley Trolley 
        Project.
            (262) Williamsburg-Newport News--Peninsula Rail 
        Transit.
            (263) Wilmington, Delaware--Commuter Rail to 
        Middletown.
            (264) Winston-Salem--Downtown Streetcar System.
    (d) Project Authorizations.--Subject to the requirements of 
sections 5309(d) and 5309(e) of title 49, United States Code, 
the following projects are authorized for the following 
amounts:
            (1) Ann Arbor/Downtown Detroit Transit Improvement 
        Project, $100,000,000.
            (2) Baltimore Red Line/Green Line Transit Project, 
        $102,300,000.
            (3) Bernalillo-Santa Fe-New Mexico Commuter Rail, 
        $75,000,000.
            (4) Birmingham-Jefferson Transit Authority--I-65 
        South BRT, $100,000,000.
            (5) Boston--Assembly Square Orange Line Station, 
        $25,000,000.
            (6) Boston--Silver Line BRT Phase II, $20,000,000.
            (7) Bridgeport, Connecticut--Bridgeport Intermodal 
        Transit Center, $28,000,000.
            (8) Dallas Area Rapid Transit--NW/SW Light Rail 
        Transit Minimal Operable Segment, $260,000,000.
            (9) Delaware--Wilmington-Newark Commuter Rail 
        Improvements, $14,000,000.
            (10) Denver Regional Transit District--West 
        Corridor, $270,000,000.
            (11) Grand Rapids--Fixed Guideway Corridor Project, 
        $14,400,000.
            (12) Harrison County, Mississippi HOV/BRT Canal 
        Road Intermodal Connector, $70,000,000.
            (13) Henderson-Las Vegas-North Las Vegas--Regional 
        Fixed Guideway Project, $32,000,000.
            (14) Houston--Advanced Transportation Technology 
        System in Harris County, $245,000,000.
            (15) Kenosha-Racine-Milwaukee Metra Commuter Rail 
        Extension (Wisconsin), $80,000,000.
            (16) Lake Tahoe--Passenger Ferry Service, 
        $8,000,000.
            (17) Lane County, Oregon--Bus Rapid Transit, Phase 
        2, $31,000,000.
            (18) Las Vegas--Boulder Highway MAX Bus Rapid 
        Transit, $12,000,000.
            (19) Las Vegas--Resort Corridor Downtown Extension 
        Project, $16,000,000.
            (20) Long Island Railroad--Nassau Hub, $10,000,000.
            (21) Los Angeles County Metropolitan Transportation 
        Authority (LACMTA): Mid-City/Exposition Light Rail 
        Transit Project, $11,000,000.
            (22) Metro Gold Line Foothill Extension 
        Construction Authority: Gold Line Foothill Light Rail 
        Transit Project, $6,000,000.
            (23) Miami--Downtown Streetcar Project, 
        $50,000,000.
            (24) Minneapolis--North Star Corridor, $80,000,000.
            (25) Mississippi--I-69 HOV/BRT, $70,000,000.
            (26) Nashville--Commuter Rail, $6,200,000.
            (27) New Bedford-Fall River, Massachusetts--
        Commuter Rail Extension, $10,000,000.
            (28) New Britain-Hartford Busway Project, 
        $55,000,000.
            (29) New Jersey Transit--Northeast Corridor Trans-
        Hudson Commuter Rail Improvements, $80,000,000.
            (30) New Orleans--Airport-CBD Commuter Rail, 
        $5,000,000.
            (31) New Orleans--Desire Corridor Streetcar, 
        $69,700,000.
            (32) New York--Penn Station Access Project, 
        $15,000,000.
            (33) New York--Stewart Airport Rail Access, 
        $40,000,000.
            (34) Providence--South County Commuter Rail, Phase 
        II, $60,000,000.
            (35) Providence--South County Commuter Rail, 
        $36,000,000.
            (36) Pennsylvania--New Jersey Lackawanna Cutoff 
        Rail Restoration, $120,000,000.
            (37) Philadelphia--Schuylkill Valley Metro, 
        $250,000,000.
            (38) Reno, Nevada--Virginia Street Bus Rapid 
        Transit, $12,000,000.
            (39) Sacramento--South Corridor LRT Extension 
        (Phase 2), Meadowview to Consumnes River College, 
        $11,000,000.
            (40) Sacramento Regional Transit District: Downtown 
        Natoma Airport Transit Corridor, $5,000,000.
            (41) San Diego--Mid-Coast Light Rail Transit 
        Extension, $11,000,000.
            (42) San Francisco Muni Third St. Light Rail 
        Transit-Phase I/II, $15,000,000
            (43) Santa Clara Valley Transportation Authority--
        Silicon Valley Rapid Transit Corridor Project, 
        $11,000,000.
            (44) Santa Fe-El Dorado Rail Link, $5,400,000.
            (45) Sonoma Marin Area Rail Transit (SMART) 
        Project, $5,000,000.
            (46) St. Louis--Metro South Corridor Metrolink 
        Light Rail Extension, $135,000,000.
            (47) St. Louis--North Side and Daniel Boone 
        Corridors Metrolink Light Rail Extensions, 
        $275,000,000.
            (48) Stamford, Connecticut Urban Transitway Phase 
        II, $22,800,000.
            (49) Tampa--Streetcar Extension to Downtown Tampa, 
        $3,000,000.
            (50) Utah--Regional Commuter Rail, $200,000,000.
            (51) Washington State Ferries, $25,000,000.
            (52) Wilmington, Delaware--Commuter Rail to 
        Middletown, $24,900,000.
    (e) Rules Relating to Funding.--
            (1) Subsection (a) projects.--
                    (A) In general.--The Secretary is 
                authorized to expend funds made available under 
                section 5309(m) of title 49, United States 
                Code, for final design and construction of 
                projects authorized by subsection (a) as 
                existing full funding grant agreements.
                    (B) Minimum funding levels.--The Secretary 
                shall make available not less than the 
                following amounts for projects authorized by 
                subsection (a): $1,157,400,426 for fiscal year 
                2005, $838,360,578 for fiscal year 2006, 
                $614,405,565 for fiscal year 2007, $424,817,697 
                for fiscal year 2008, and $259,180,764 for 
                fiscal year 2009.
            (2) Subsection (b) projects.--
                    (A) In general.--Projects authorized by 
                subsection (b) for final design and 
                construction are also authorized for 
                alternatives analysis and preliminary 
                engineering.
                    (B) Minimum funding levels.--The Secretary 
                shall make available not less than the 
                following amounts for projects authorized by 
                subsection (b): $165,402,806 for fiscal year 
                2005, $544,399,422 for fiscal year 2006, 
                $826,314,435 for fiscal year 2007, 
                $1,139,182,303 for fiscal year 2008, and 
                $1,405,329,236 for fiscal year 2009.
                    (C) Priority.--In making funds available 
                under subparagraph (B), the Secretary shall 
                first make such funds available for any full 
                funding grant agreement executed by the 
                Secretary in fiscal year 2005 after the date of 
                enactment of this Act and for any full funding 
                grant agreement executed by the Secretary in 
                the amount indicated in fiscal years 2005 
                through 2009 in the amount indicated in the 
                ``Schedule of Federal Funds for the Project'' 
                included in such agreement.
            (3) Subsection (c) projects.--
                    (A) In general.--Effective October 1, 2007, 
                projects authorized by subsection (c) for 
                preliminary engineering are also authorized for 
                final design and construction.
                    (B) Maximum funding levels.--The Secretary 
                shall make available not more than the 
                following amounts for projects authorized by 
                subsection (c): $115,026,368 for fiscal year 
                2005, $120,240,000 for fiscal year 2006, and 
                $125,280,000 in fiscal year 2007.
                    (C) Maximum funding levels for preliminary 
                engineering.--In fiscal years 2008 and 2009, 
                the Secretary shall make available not more 
                than the following amounts for projects 
                authorized by subsection (b), and projects 
                authorized by subsection (c), to conduct 
                preliminary engineering activities: 
                $136,000,000 in fiscal year 2008 and 
                $144,740,000 in fiscal year 2009.
    (f) New Jersey Urban Core Project.--Section 3031(d) of the 
Intermodal Surface Transportation Efficiency Act of 1991 (112 
Stat. 380; 105 Stat. 2122) is amended--
            (1) by striking ``associated components to and at 
        the contiguous New Jersey Meadowlands Sports 
        Complex),'' and inserting ``to and at the contiguous 
        New Jersey Meadowlands Sports Complex), including a 
        connection to the Hudson River Waterfront 
        Transportation System, the Lackawanna Cutoff,''; and
            (2) by striking ``in Lakewood to Freehold to 
        Matawan or Jamesburg, New Jersey, as described in 
        section 3035(p) of the Intermodal Surface 
        Transportation Efficiency Act of 1991 (105 Stat. 
        2131)'' and inserting ``from Lakehurst to the Northeast 
        Corridor or the New Jersey Coast Line''.
    (g) New Jersey Trans-Hudson Midtown Corridor.--Not later 
than 90 days after the date of enactment of this Act, the 
Secretary shall permit New Jersey Transit to enter into 
preliminary engineering on the New Jersey Trans-Hudson Midtown 
Corridor project. When evaluating the local share of such 
project in the new starts rating process, the Secretary shall 
give consideration to project elements of the New Jersey Trans-
Hudson Midtown Corridor advanced with 100 percent non-Federal 
funds, including the purchase of bi-level rail equipment and 
the New Jersey Transit Light Rail River Line. Based upon the 
project's evaluations and ratings required under section 
5309(d) of title 49, United States Code, the Secretary shall 
give strong consideration to the project for a full funding 
grant agreement.
    (h) Houston Metro.--
            (1) Local share.--Notwithstanding any other 
        provision of law, for the purpose of calculating the 
        non-Federal share of the net project cost of any new 
        fixed guideway capital project currently included in 
        the Advanced Transit Program (``Metro Solutions Plan'') 
        sponsored by the Metropolitan Transit Authority of 
        Harris County, Texas, the Secretary shall include 
        $324,000,000 in State and local funds expended for the 
        design and construction of the Red Line Light Rail 
        Transit system that operates in Harris County, Texas.
            (2) Special rule.--No provision of this Act shall 
        be construed to override or nullify the will of the 
        voters who approved the Metro Solutions Plan as 
        described on the ballot and in the accompanying Board 
        resolutions, nor shall any provision of this Act be 
        construed to override or nullify the terms and 
        conditions of Metro Board Resolution No. 2003-77 or any 
        applicable provision of State law or the charter of the 
        city of Houston as in effect as of the date of 
        enactment of this Act.
            (3) Amendment.--Section 178 of Public Law 108-447, 
        division H (118 Stat. 3230), is amended by striking 
        ``49 USC 5309(e)(1)(A), 23 CFR 771.123, and 49 CFR 
        611.7.'' and inserting ``49 U.S.C. 5309 and 49 CFR 
        611.7: Provided, That such projects shall retain their 
        status in preliminary engineering should bus rapid 
        transit be chosen as the locally preferred alternative 
        during that phase.''.
    (i) Exemption.--The Metra BNSF Naperville to Aurora 
Extension Project authorized under subsection (c) shall be 
exempted from all requirements related to criteria for grants 
for new fixed guideway capital projects under section 5309(d) 
of title 49, United States Code, and from regulations required 
under that section.
    (j) Rail Cars.--The project authorized by subsection 
(a)(31) includes an additional 52 rapid rail cars and project 
scope changes from amounts authorized by the Transportation 
Equity Act for the 21st Century.

SEC. 3044. PROJECTS FOR BUS AND BUS-RELATED FACILITIES AND CLEAN FUELS 
                    GRANT PROGRAM.

    (a) Projects.--Of the amounts made available to carry out 
section 5309(m)(2)(C) of title 49, United States Code, for each 
of fiscal years 2006 through 2009, the Secretary shall make 
funds available for the following projects in not less than the 
amounts specified for the fiscal year:


    (b) Clean Fuels Grants Program Projects.--
            (1) Funding.--Notwithstanding subsection (a), the 
        Secretary shall make funds available for the projects 
        listed in item numbers 497, 517, 519, 557, 575, 578, 
        605, 611, 612, 614, 631, 638, 640, 641, 648, and 659 in 
        the table contained in subsection (a), in the amounts 
        specified, from amounts made available to carry out 
        section 5308 of title 49, United States Code.
            (2) Purchase of buses under supplemental 
        environmental project.--With respect to the project 
        numbered 605, purchases of buses procured under a 
        supplemental environmental project executed by the 
        Rhode Island Public Transit Authority and the 
        Environmental Protection Agency are eligible for 
        assistance under section 5308 of such title.
    (c) Special Rule.--Notwithstanding any other provision of 
law, the Secretary shall pay the Federal share of the net 
project cost to a State or local governmental authority that 
carries out or has carried out any part of the bus and bus-
related facilities projects numbered 258 and 347 under 
subsection (a).

SEC. 3045. NATIONAL FUEL CELL BUS TECHNOLOGY DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a 
national fuel cell bus technology development program (in this 
section referred to as the ``program'') to facilitate the 
development of commercially viable fuel cell bus technology and 
related infrastructure.
    (b) General Authority.--The Secretary may enter into 
grants, contracts, and cooperative agreements with no more than 
3 geographically diverse nonprofit organizations and recipients 
under chapter 53 of title 49, United States Code, to conduct 
fuel cell bus technology and infrastructure projects under the 
program.
    (c) Grant Criteria.--In selecting applicants for grants 
under the program, the Secretary shall consider the 
applicant's--
            (1) ability to contribute significantly to 
        furthering fuel cell technology as it relates to 
        transit bus operations, including hydrogen production, 
        energy storage, fuel cell technologies, vehicle systems 
        integration, and power electronics technologies;
            (2) financing plan and cost share potential;
            (3) fuel cell technology to ensure that the program 
        advances different fuel cell technologies, including 
        hydrogen-fueled and methanol-powered liquid-fueled fuel 
        cell technologies, that may be viable for public 
        transportation systems; and
            (4) other criteria that the Secretary determines 
        are necessary to carry out the program.
    (d) Competitive Grant Selection.--The Secretary shall 
conduct a national solicitation for applications for grants 
under the program. Grant recipients shall be selected on a 
competitive basis. The Secretary shall give priority 
consideration to applicants that have successfully managed 
advanced transportation technology projects, including projects 
related to hydrogen and fuel cell public transportation 
operations for a period of not less than 5 years.
    (e) Federal Share.--The Federal share of costs of the 
program shall be provided from funds made available to carry 
out this section. The Federal share of the cost of a project 
carried out under the program shall not exceed 50 percent of 
such cost. The cost of a project carried out under the program 
shall not include the cost of a fuel cell power unit.
    (f) Grant Requirements.--A grant under this section shall 
be subject to--
            (1) all terms and conditions applicable to a grant 
        made under section 5309 of title 49, United States 
        Code; and
            (2) such other terms and conditions as are 
        determined by the Secretary.

SEC. 3046. ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS.

    (a) In General.--Amounts appropriated pursuant to section 
5338(d) of title 49, United States Code, for national research 
and technology programs under sections 5312, 5314, and 5322 of 
such title shall be allocated by the Secretary as follows:
            (1) Public transportation national security 
        study.--
                    (A) In general.--Not later than 6 months 
                after the date of enactment of this Act, the 
                Secretary shall enter into an agreement with 
                the National Academy of Sciences to conduct a 
                study and evaluation of the value major public 
                transportation systems in the United States 
                serving the 38 urbanized areas that have a 
                population of more than 1,000,000 individuals 
                provide to the Nation's security and the 
                ability of such systems to accommodate the 
                evacuation, egress or ingress of people to or 
                from critical locations in times of emergency.
                    (B) Alternative routes.--For each system 
                described in subparagraph (A) the study shall 
                identify--
                            (i) potential alternative routes 
                        for evacuation using other 
                        transportation modes such as highway, 
                        air, marine, and pedestrian activities; 
                        and
                            (ii) transit routes that, if 
                        disrupted, do not have sufficient 
                        transit alternatives available.
                    (C) Report.--Not later than 24 months after 
                the date of entry into the agreement, the 
                Academy shall submit to the Secretary and the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives and the 
                Committee on Banking, Housing and Urban Affairs 
                of the Senate a final report on the results of 
                the study and evaluation, together with such 
                recommendations as the Academy considers 
                appropriate.
                    (D) Funding.--For each of fiscal years 2006 
                and 2007 $250,000 shall be available to carry 
                out this paragraph.
            (2) Center for transit-oriented development.--For 
        each of fiscal years 2006 through 2009, not less than 
        $1,000,000 shall be made available by the Secretary for 
        establishment and operation of the Center for Transit-
        Oriented Development--
                    (A) to develop standards and definitions 
                for transit-oriented development adjacent to 
                public transportation facilities;
                    (B) to develop system planning guidance, 
                performance criteria, and modeling techniques 
                for metropolitan planning agencies and public 
                transportation agencies to maximize ridership 
                through land use planning and adjacent 
                development; and
                    (C) to provide research support and 
                technical assistance to public transportation 
                agencies, metropolitan planning agencies, and 
                other persons regarding transit-oriented 
                development.
            (3) Transportation equity research program.--For 
        each of fiscal years 2006 through 2009, not less than 
        $1,000,000 shall be made available by the Secretary for 
        research and demonstration activities that focus on the 
        impacts that transportation planning, investment, and 
        operations have on low-income and minority populations 
        that are transit dependent. Such activities shall 
        include the development of strategies to advance 
        economic and community development in low-income and 
        minority communities and the development of training 
        programs that promote the employment of low-income and 
        minority community residents on Federal-aid 
        transportation projects constructed in their 
        communities.
            (4) Cognitive impairment study.--For fiscal year 
        2006, $1,000,000 shall be made available by the 
        Secretary for research and demonstration activities 
        that focus on the capacity and resources of Oregon 
        public transportation systems to address the needs, 
        barriers, and desires for travel of people with 
        cognitive impairments.
            (5) Transit career ladder training program.--For 
        each fiscal years 2006 through 2009, not less than 
        $1,000,000 shall be available for a nationwide career 
        ladder job training partnership program for public 
        transportation employees to respond to technological 
        changes in the public transportation industry, 
        especially in the area of maintenance. Such program 
        shall be carried out by the Secretary through a 
        contract with a national nonprofit organization with a 
        demonstrated capacity to develop and provide such 
        programs.
            (6) Pilot program for remote infrared audible 
        signs.--
                    (A) In general.--For each of fiscal years 
                2006 through 2009, not less than $500,000 shall 
                be made available by the Secretary to carry out 
                a pilot program to determine the benefits of 
                remote infrared audible signage technology for 
                provision of wayfinding and information to 
                people who are visually, cognitively, or 
                learning disabled.
                    (B) Report.--
                            (i) In general.--Not later than 
                        September 30, 2009, the Secretary shall 
                        transmit to the Committee on 
                        Transportation and Infrastructure of 
                        the House of Representatives and the 
                        Committee on Banking, Housing, and 
                        Urban Affairs of the Senate a report on 
                        the pilot program carried out under 
                        this section.
                            (ii) Contents.--The report--
                                    (I) shall include--
                                            (aa) an evaluation 
                                        of the effect of the 
                                        pilot program on 
                                        multimodal 
                                        accessibility in public 
                                        transportation;
                                            (bb) an evaluation 
                                        of the effect of the 
                                        program on operators of 
                                        public transportation 
                                        and their passengers;
                                            (cc) an evaluation 
                                        of the effect of making 
                                        public transportation 
                                        accessible to people 
                                        with visual, cognitive, 
                                        and learning 
                                        disabilities on 
                                        ridership of public 
                                        transportation and use 
                                        of paratransit; and
                                            (dd) an evaluation 
                                        of the effect of the 
                                        program on the 
                                        education, community 
                                        integration, work life, 
                                        and general quality of 
                                        life of the targeted 
                                        populations.
            (7) Hydrogen fuel cell shuttle deployment 
        demonstration project.--To demonstrate the utility of 
        hydrogen fuel cell vehicles in daily shuttle service, 
        $800,000 in each of fiscal years 2006 and 2007 shall be 
        provided for hydrogen fuel cell employee shuttle vans, 
        related equipment, operations, public education and 
        outreach in Allentown, Pennsylvania.
            (8) Wisconsin supplemental transportation rural 
        assistance program (strap).--
                    (A) In general.--For capital projects, 
                operations, purchase or lease of vehicles, and 
                integration, planning and coordination of 
                public transportation services in the State of 
                Wisconsin that will supplement and expand 
                existing rural and special public 
                transportation services in that State, 
                $2,000,000 in each of fiscal years 2006, 2007, 
                2008, and 2009 shall be provided to the State 
                of Wisconsin Department of Transportation.
                    (B) Purpose.--Funds received under this 
                program may be used to supplement public 
                transportation programs for rural populations 
                for activities authorized under sections 5310, 
                5311, and 5316 of title 49, United States Code. 
                Funds made available under this program are 
                subject to the requirements of section 5311 of 
                title 49, United States Code, except that funds 
                may be made available for up to 80 percent of 
                net operating costs. In awarding grants made 
                available under this program, the State shall 
                consider--
                            (i) rural population in the area to 
                        be served by the applicant;
                            (ii) extent to which the applicant 
                        demonstrates coordination of existing 
                        transportation services or proposed 
                        public transportation services;
                            (iii) need for additional services 
                        in the area being serviced by the 
                        applicant and the extent to which the 
                        proposed services will address those 
                        needs and provide accessibility for 
                        non-ambulatory recipients;
                            (iv) extent to which the applicant 
                        demonstrates an innovative approach 
                        that is responsive to the identified 
                        service needs of the rural population; 
                        and
                            (v) extent to which the applicant 
                        demonstrates that the communities being 
                        served have been consulted in the 
                        planning process.
            (9) Human services transportation coordination.--
                    (A) In general.--For the management of a 
                program to improve and enhance the coordination 
                of Federal resources for human services 
                transportation with those of the Department of 
                Transportation, $1,600,000 in each of fiscal 
                years 2006, 2007, 2008, and 2009 shall be 
                provided to a national non-profit organization 
                that is competitively selected by the 
                Secretary. Such organization shall have 
                demonstrated expertise in issues of 
                transportation coordination and in providing 
                technical assistance to local transportation 
                organizations.
                    (B) Eligible activities.--Under this 
                program, the organization selected by the 
                Secretary shall--
                            (i) establish an advisory panel 
                        consisting of federal, state and local 
                        officials and organizations;
                            (ii) prepare an inventory of human 
                        service transportation agencies 
                        operating in the United States;
                            (iii) prepare an inventory of 
                        Federal transportation spending;
                            (iv) develop a program of technical 
                        assistance and training for human 
                        services transportation organizations 
                        that shall include on-site technical 
                        assistance, a resource clearinghouse, 
                        and preparation of technical manuals;
                            (v) prepare an annual report for 
                        the Secretary on activities under this 
                        program and make recommendations for 
                        improving coordination.
            (10) Portland, oregon streetcar prototype purchase 
        and deployment.--Not less than $1,000,000 shall be made 
        available in each of fiscal years 2006, 2007, 2008, and 
        2009 by the Secretary to TriMet for the purchase and 
        deployment of a domestically manufactured streetcar.
            (11) Public transportation participation pilot 
        program.--
                    (A) In general.--Of the funds allocated 
                under this section for each of fiscal years 
                2006 through 2009, $1,000,000 for each fiscal 
                year shall be made available by the Secretary 
                to establish a pilot program to support 
                planning and public participation activities 
                related to public transportation projects.
                    (B) Eligible activities.--Activities 
                eligible to be carried out under the pilot 
                program may include the following:
                            (i) Improving data collection 
                        analysis and transportation access for 
                        all users of the public transportation 
                        systems.
                            (ii) Supporting public 
                        participation through the project 
                        development phases.
                            (iii) Using innovative techniques 
                        to improve the coordination of 
                        transportation alternatives.
                            (iv) Enhancing the coordination of 
                        public transportation benefits and 
                        services.
                            (v) Contracting with stakeholders 
                        to focus on the delivery of 
                        transportation plans and programs.
                            (vi) Measuring and reporting on the 
                        annual performance of the 
                        transportation systems.
            (12) Transportation hybrid electric vehicle and 
        fuel cell research.--$500,000 in each of fiscal years 
        2006 through 2009 for a transportation hybrid electric 
        vehicle and fuel cell research program at the 
        University of Alabama.
            (13) Trauma care system research and development.--
        $500,000 in each of fiscal years 2006 through 2009 for 
        trauma care system research and development at the 
        University of Alabama in Birmingham.
            (14) Transportation infrastructure and logistics 
        research.--$500,000 in each of fiscal years 2006 
        through 2009 for transportationinfrastructure and 
logistics research at the University of Alabama in Huntsville.
            (15) National bus rapid transit institute.--
        $1,750,000 in each of fiscal years 2006 though 2009 for 
        the National Bus Rapid Transit Institute at the 
        University of South Florida.
            (16) Application of information technology to 
        transportation logistics and security.--$400,000 in 
        each of fiscal years 2006 through 2009 for research on 
        the application of information technology to 
        transportation logistics and security at the Northern 
        Kentucky University.
            (17) Intelligent transportation system pilot 
        project.--$465,000 in each of fiscal years 2006 through 
        2009 for an intelligent transportation system pilot 
        project with the National Consortium on Remote Sensing 
        in Transportation Flows at the Ohio State University.
            (18) Regional public safety training center.--
        $500,000 in each of fiscal years 2006 through 2009 for 
        a regional public safety training center at the Lehigh-
        Carbon Community College.
            (19) Transit security training facility.--$750,000 
        in each of fiscal years 2006 though 2009 for a transit 
        security training facility at the Chester County 
        Community College.
            (20) Small urban and rural transit center.--
        $800,000 in fiscal year 2006, $800,000 in fiscal year 
        2007, $1,200,000 in fiscal year 2008, and $1,200,000 in 
        fiscal year 2009 for the Small Urban and Rural Transit 
        Center at North Dakota State University.
            (21) Advanced technology bus rapid transit 
        project.-- $500,000 in fiscal year 2006, $540,000 in 
        fiscal year 2007, $550,000 in fiscal year 2008, and 
        $625,000 in fiscal year 2009 for the Southeastern 
        Connecticut Advanced Technology Bus Rapid Transit 
        Project.
            (22) Greater new haven transit district fuel cell-
        powered bus research.--$500,000 in fiscal year 2006, 
        $540,000 in fiscal year 2007, $550,000 in fiscal year 
        2008, and $625,000 in fiscal year 2009 for the Greater 
        New Haven Transit District Fuel Cell-Powered Bus 
        Research.
            (23) Center for advanced transportation 
        initiatives.--$500,000 in fiscal year 2006, $540,000 in 
        fiscal year 2007, $540,000 in fiscal year 2008, and 
        $625,000 in fiscal year 2009 for the Rutgers Center for 
        Advanced Transportation Initiatives (CAIT).
            (24) Institute of technology's transportation, 
        economic, and land use system.--$500,000 in fiscal year 
        2006, $540,000 in fiscal year 2007, $540,000 in fiscal 
        year 2008, and $625,000 in fiscal year 2009 for the New 
        Jersey Institute of Technology's Transportation, 
        Economic, and Land Use System program (TELUS).
            (25) Regional transit training consortium pilot 
        program.--$270,000 in fiscal year 2006, $380,000 in 
        fiscal year 2007, $380,000 in fiscal year 2008, and 
        $450,000 in fiscal year 2009 for the Southern 
        California Regional Transit Training Consortium Pilot 
        Program.
    (b) Remainder.--After making allocations under subsection 
(a), the remainder of funds made available by section 5338(d) 
of title 49, United States Code, for national research and 
technology programs under sections 5312, 5314, and 5322 for a 
fiscal year shall be allocated at the discretion of the 
Secretary to other transit research, development, demonstration 
and deployment projects authorized by sections 5312, 5314, and 
5322 of such title.

SEC. 3047. FORGIVENESS OF GRANT AGREEMENT.

    (a) Lane County Transit District.--Notwithstanding any 
other provision of law (including any regulation), any 
outstanding balances on the following grant agreements made to 
the Lane County Transit District, Oregon, do not have to be 
repaid:
            (1) Federal Contract Number OR-03-0087.
            (2) Federal Contract Number OR-90-X094.
    (b) Pee Dee Regional Transit Authority.--The debt 
identified in the 2000 Triennial Review of the Pee Dee Regional 
Transit Authority as owed to the Federal Transit Administration 
by the Pee Dee Regional Transit Authority does not have to be 
repaid.

SEC. 3048. COOPERATIVE PROCUREMENT.

    Not later than 6 months after the date of enactment of this 
Act, the Secretary shall undertake a 30-day review of efforts 
to use cooperative procurement to determine whether benefits 
are sufficient to formally incorporate cooperative procurement 
into the mass transit program. In particular, the Secretary 
shall review the progress made under the pilot program 
authorized under section 166 of division F of the Consolidated 
Appropriations Act, 2004 (49 U.S.C. 5397 note; 118 Stat. 309), 
based on experience to date in the pilot program and any 
available reports to Congress submitted under such section 166. 
The Secretary shall also consider information gathered from 
grantees about cooperative procurement, whether or not related 
to the pilot program.

SEC. 3049. TRANSPORTATION FRINGE BENEFITS.

    (a) Transit Pass Transportation Fringe Benefits.--
            (1) In general.--Effective as of the first day of 
        the next fiscal year beginning after the date of the 
        enactment of this Act, each covered agency shall 
        implement a program under which all qualified Federal 
        employees serving in or under such agency shall be 
        offered transit pass transportation fringe benefits, as 
        described in paragraph (2).
            (2) Benefits described.--The benefits described in 
        this paragraph are the transit pass transportation 
        fringe benefits which, under section 2 of Executive 
        Order 13150, are required to be offered by Federal 
        agencies in the National Capital Region on the date of 
        the enactment of this Act.
            (3) Definitions.--In this subsection--
                    (A) the term ``covered agency'' means any 
                agency, to the extent of its facilities in the 
                National Capital Region;
                    (B) the term ``agency'' means any agency 
                (as defined by 7905(a)(2) of title 5, United 
                States Code), the Postal Rate Commission, and 
                the Smithsonian Institution;
                    (C) the term ``National Capital Region'' 
                includes the District of Columbia and every 
                county or other geographic area covered by 
                section 2 of Executive Order 13150;
                    (D) the term ``Executive Order 13150'' 
                refers to Executive Order 13150 (5 U.S.C. 7905 
                note);
                    (E) the term ``Federal agency'' is used in 
                the same way as under section 2 of Executive 
                Order 13150; and
                    (F) any determination as to whether or not 
                one is a ``qualified Federal employee'' shall 
                be made applying the same criteria as would 
                apply under section 2 of Executive Order 13150.
            (4) Rule of construction.--Nothing in this 
        subsection shall be considered to require that a 
        covered agency--
                    (A) terminate any program or benefits in 
                existence on the date of the enactment of this 
                Act, or postpone any plans to implement (before 
                the effective date referred to in paragraph 
                (1)) any program or benefits permitted or 
                required under any other provision of law; or
                    (B) discontinue (on or after the effective 
                date referred to in paragraph (1)) any program 
                or benefits referred to in subparagraph (A), so 
                long as such program or benefits satisfy the 
                requirements of paragraphs (1) through (3).
    (b) Authority To Transport Federal Employees Between Their 
Place of Employment and Mass Transit Facilities.--
            (1) In general.--Section 1344 of title 31, United 
        States Code, is amended--
                    (A) by redesignating subsections (g) and 
                (h) as subsections (h) and (i), respectively; 
                and
                    (B) by inserting after subsection (f) the 
                following:
    ``(g)(1) If and to the extent that the head of a Federal 
agency, in his or her sole discretion, deems it appropriate, a 
passenger carrier may be used to transport an officer or 
employee of a Federal agency between the officer's or 
employee's place of employment and a mass transit facility 
(whether or not publicly owned) in accordance with succeeding 
provisions of this subsection.
            ``(2) Notwithstanding section 1343, a Federal 
        agency that provides transportation services under this 
        subsection (including by passenger carrier) may absorb 
        the costs of such services using any funds available to 
        such agency, whether by appropriation or otherwise.
            ``(3) In carrying out this subsection, a Federal 
        agency, to the maximum extent practicable and 
        consistent with sound budget policy, should--
                    ``(A) use alternative fuel vehicles for the 
                provision of transportation services;
                    ``(B) to the extent consistent with the 
                purposes of this subsection, provide 
                transportation services in a manner that does 
                not result in additional gross income for 
                Federal income tax purposes; and
                    ``(C) coordinate with other Federal 
                agencies to share, and otherwise avoid 
                duplication of, transportation services 
                provided under this subsection.
            ``(4) For purposes of any determination under 
        chapter 81 of title 5 or chapter 171 of title 28, an 
        individual shall not be considered to be in the 
        `performance of duty' or `acting within the scope of 
        his or her office or employment' by virtue of the fact 
        that such individual is receiving transportation 
        services under this subsection. Nor shall any time 
        during which an individual uses such services be 
        considered when calculating the hours of work or 
        employment for that individual for purposes of title 5 
        of the United States Code, including chapter 55 of that 
        title.
            ``(5)(A) The Administrator of General Services, 
        after consultation with the appropriate agencies, shall 
        prescribe any regulations necessary to carry out this 
        subsection.
                    ``(B) Transportation services under this 
                subsection shall be subject neither to the last 
                sentence of subsection (d)(3) nor to any 
                regulations under the last sentence of 
                subsection (e)(1).
            ``(6) In this subsection, the term `passenger 
        carrier' means a passenger motor vehicle or similar 
        means of transportation that is owned, leased, or 
        provided pursuant to contract by the United States 
        Government.''.
            (2) Funds for maintenance, repair, etc.--Subsection 
        (a) of section 1344 of title 31, United States Code, is 
        amended by adding at the end the following:
            ``(3) For purposes of paragraph (1), the 
        transportation of an individual between such 
        individual's place of employment and a mass transit 
        facility pursuant to subsection (g) is transportation 
        for an official purpose.''.
            (3) Coordination.--The authority to provide 
        transportation services under section 1344(g) of title 
        31, United States Code (as amended by paragraph (1)) 
        shall be in addition to any authority otherwise 
        available to the agency involved.

SEC. 3050. COMMUTER RAIL.

    (a) In General.--The Federal Transit Administration shall 
approve final design for the projects authorized under section 
3030(c)(1)(A)(xliv) of the Federal Transit Act of 1998 and 
section 1214(g) of the Transportation Equity Act for the 21st 
Century (16 U.S.C. 668dd note) in the absence of an access 
agreement with the owner of the railroad right of way.
    (b) Timely Resolution of Issues.--The Secretary shall 
timely resolve any issues delaying the completion of the 
projects authorized under section 1214(g) of the Transportation 
Equity Act for the 21st Century (16 U.S.C. 668dd note) and 
section 3030(c)(1)(A)(xliv) of the Federal Transit Act of 1998.

SEC. 3051. PARATRANSIT SERVICE IN ILLINOIS.

    In the State of Illinois, a regional or State agency, or 
another transit agency, may be responsible for providing the 
complementary paratransit services that would otherwise be 
provided by a transit agency under the Americans with 
Disabilities Act of 1990. Where a regional or State agency, or 
another transit agency, undertakes to provide such services, 
either by agreement or pursuant to State legislation, the 
Secretary may audit the paratransit services provided, make 
recommendations, and take appropriate enforcement action 
directed to such regional, State, or transit agency providing 
the services, to ensure that the requirements of the Americans 
with Disabilities Act of 1990 are met. Nothing in this Act 
shall be construed to conflict with the requirements of the 
Americans with Disabilities Act of 1990 and its implementing 
regulations.

                     TITLE IV--MOTOR CARRIER SAFETY

SECTION 4001. SHORT TITLE.

    This title may be cited as the ``Motor Carrier Safety 
Reauthorization Act of 2005''.

              Subtitle A--Commercial Motor Vehicle Safety

SEC. 4101. AUTHORIZATION OF APPROPRIATIONS.

    (a) Motor Carrier Safety Grants.--Section 31104(a) of title 
49, United States Code, is amended to read as follows:
    ``(a) In General.--Subject to subsection (f), there are 
authorized to be appropriated from the Highway Trust Fund 
(other than the Mass Transit Account) to carry out section 
31102--
            ``(1) $188,480,000 for fiscal year 2005;
            ``(2) $188,000,000 for fiscal year 2006;
            ``(3) $197,000,000 for fiscal year 2007;
            ``(4) $202,000,000 for fiscal year 2008; and
            ``(5) $209,000,000 for fiscal year 2009.''.
    (b) Administrative Expenses.--Section 31104 of such title 
is amended by adding the following at the end:
    ``(i) Administrative Expenses.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated from the Highway Trust 
        Fund (other than the Mass Transit Account) for the 
        Secretary of Transportation to pay administrative 
        expenses of the Federal Motor Carrier Safety 
        Administration--
                    ``(A) $254,849,000 for fiscal year 2005;
                    ``(B) $213,000,000 for fiscal year 2006;
                    ``(C) $223,000,000 for fiscal year 2007;
                    ``(D) $228,000,000 for fiscal year 2008; 
                and
                    ``(E) $234,000,000 for fiscal year 2009.
            ``(2) Use of funds.--The funds authorized by this 
        subsection shall be used for personnel costs; 
        administrative infrastructure; rent; information 
        technology; programs for research and technology, 
        information management, regulatory development, the 
        administration of the performance and registration 
        information system management, and outreach and 
        education; other operating expenses; and such other 
        expenses as may from time to time become necessary to 
        implement statutory mandates of the Administration not 
        funded from other sources.
    ``(j) Availability of Funds; Contract Authority.--
            ``(1) Period of availability.--The amounts made 
        available under this section shall remain available 
        until expended.
            ``(2) Initial date of availability.--Authorizations 
        from the Highway Trust Fund (other than the Mass 
        Transit Account) by this section shall be available for 
        obligation on the date of their apportionment or 
        allocation or on October 1 of the fiscal year for which 
        they are authorized, whichever occurs first.
            ``(3) Contract authority.--Approval by the 
        Secretary of a grant with funds made available under 
        this section imposes upon the United States a 
        contractual obligation for payment of the Government's 
        share of costs incurred in carrying out the objectives 
        of the grant.''.
    (c) Grant Programs.--There are authorized to be 
appropriated from the Highway Trust Fund (other than the Mass 
Transit Account) the following sums for the following Federal 
Motor Carrier Safety Administration programs:
            (1) Commercial driver's license program improvement 
        grants.--For commercial driver's license program 
        improvement grants under section 31313 of title 49, 
        United States Code $25,000,000 for each of fiscal years 
        2006 through 2009.
            (2) Border enforcement grants.--For border 
        enforcement grants under section 31107 of such title 
        $32,000,000 for each of fiscal years 2006, 2007, 2008, 
        and 2009.
            (3) Performance and registration information system 
        management grant program.--For the performance and 
        registration information system management grant 
        program under section 31109 of such title $5,000,000 
        for each of fiscal years 2006, 2007, 2008, and 2009.
            (4) Commercial vehicle information systems and 
        networks deployment.--For carrying out the commercial 
        vehicle information systems and networks deployment 
        program under section 4126 of this Act, $25,000,000 for 
        each of fiscal years 2006 through 2009.
            (5) Safety data improvement grants.--For safety 
        data improvement grants under section 4128 of this Act 
        $2,000,000 for fiscal year 2006 and $3,000,000 for each 
        of fiscal years 2007 through 2009.
    (d) Period of Availability.--The amounts made available 
under subsection (b) of this section shall remain available 
until expended.
    (e) Initial Date of Availability.--Amounts authorized to be 
appropriated from the Highway Trust Fund (other than the Mass 
Transit Account) by subsection (b) shall be available for 
obligation on the date of their apportionment or allocation or 
on October 1 of the fiscal year for which they are authorized, 
whichever occurs first.
    (f) Contract Authority.--Approval by the Secretary of a 
grant with funds made available under subsection (b) imposes 
upon the United States a contractual obligation for payment of 
the Government's share of costs incurred in carrying out the 
objectives of the grant.

SEC. 4102. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS AND FALSE 
                    RECORDS.

    (a) Recordkeeping and Reporting Violations.--Section 
521(b)(2)(B) of title 49, United States Code, is amended--
            (1) in clause (i) by striking ``$500'' and 
        inserting ``$1,000''; and
            (2) by striking ``$5,000'' each place it appears 
        and inserting ``$10,000''.
    (b) Violations of Out-of-Service Orders.--Section 
31310(i)(2) of title 49, United States Code, is amended--
            (1) by striking ``Not later than December 18, 1992, 
        the'' and inserting ``The'';
            (2) in subparagraph (A)--
                    (A) by striking ``90 days'' and inserting 
                ``180 days''; and
                    (B) by striking ``$1,000'' and inserting 
                ``$2,500'';
            (3) in subparagraph (B)--
                    (A) by striking ``one year'' and inserting 
                ``2 years''; and
                    (B) by striking ``$1,000; and'' and 
                inserting ``$5,000;'';
            (4) in subparagraph (C) by striking ``$10,000.'' 
        and inserting ``$25,000; and''; and
            (5) by adding at the end the following:
                    ``(D) an employer that knowingly and 
                willfully allows or requires an employee to 
                operate a commercial motor vehicle in violation 
                of an out-of-service order shall, upon 
                conviction, be subject for each offense to 
                imprisonment for a term not to exceed one year 
                or a fine under title 18, or both.''.

SEC. 4103. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

    Section 521(b) of title 49, United States Code, is 
amended--
            (1) by striking ``(b)(1)(A) If the Secretary'' and 
        inserting the following:
    ``(b) Violations Relating to Commercial Motor Vehicle 
Safety Regulation and Operators.--
            ``(1) Notice.--
                    ``(A) In general.--If the Secretary''; and
            (2) by adding at the end of paragraph (2) the 
        following:
                    ``(E) Copying of records and access to 
                equipment, lands, and buildings.--A person 
                subject to chapter 51 or a motor carrier, 
                broker, freight forwarder, or owner or operator 
                of a commercial motor vehicle subject to part B 
                of subtitle VI who fails to allow promptly, 
                upon demand, the Secretary (or an employee 
                designated by the Secretary) to inspect and 
                copy any record or inspect and examine 
                equipment, lands, buildings and other property 
                in accordance with sections 504(c), 5121(c), 
                and 14122(b) shall be liable to the United 
                States for a civil penalty not to exceed $1,000 
                for each offense. Each day the Secretary is 
                denied the right to inspect and copy any record 
                or inspect and examine equipment, lands, 
                buildings and other property shall constitute a 
                separate offense, except that the total of all 
                civil penalties against any violator for all 
                offenses related to a single violation shall 
                not exceed $10,000. It shall be a defense to 
                such penalty that the records did not exist at 
                the time of the Secretary's request or could 
                not be timely produced without unreasonable 
                expense or effort. Nothing in this subparagraph 
                amends or supersedes any remedy available to 
                the Secretary under section 502(d), section 
                507(c), or any other provision of this 
                title.''.

SEC. 4104. REVOCATION OF OPERATING AUTHORITY.

    Section 13905(e) of title 49, United States Code, is 
amended--
            (1) by striking paragraph (1) and inserting the 
        following:
            ``(1) Protection of safety.--Notwithstanding 
        subchapter II of chapter 5 of title 5, the Secretary--
                    ``(A) may suspend the registration of a 
                motor carrier, a freight forwarder, or a broker 
                for failure to comply with requirements of the 
                Secretary pursuant to section 13904(c) or 13906 
                or an order or regulation of the Secretary 
                prescribed under those sections; and
                    ``(B) shall revoke the registration of a 
                motor carrier that has been prohibited from 
                operating in interstate commerce for failure to 
                comply with the safety fitness requirements of 
                section 31144.'';
            (2) in paragraph (2) by striking ``may suspend a 
        registration'' and inserting ``shall revoke the 
        registration''; and
            (3) by striking paragraph (3) and inserting the 
        following:
            ``(3) Notice; period of suspension.--The Secretary 
        may suspend or revoke under this subsection the 
        registration only after giving notice of the suspension 
        or revocation to the registrant. A suspension remains 
        in effect until the registrant complies with the 
        applicable sections or, in the case of a suspension 
        under paragraph (2), until the Secretary revokes the 
        suspension.''.

SEC. 4105. STATE LAWS RELATING TO VEHICLE TOWING.

    (a) State Laws Relating to Vehicle Towing.--Section 
14501(c) of title 49, United States Code, is amended by adding 
at the end the following:
            ``(5) Limitation on statutory construction.--
        Nothing in this section shall be construed to prevent a 
        State from requiring that, in the case of a motor 
        vehicle to be towed from private property without the 
        consent of the owner or operator of the vehicle, the 
        person towing the vehicle have prior written 
        authorization from the property owner or lessee (or an 
        employee or agent thereof) or that such owner or lessee 
        (or an employee or agent thereof) be present at the 
        time the vehicle is towed from the property, or 
        both.''.
    (b) Predatory Tow Truck Operations.--
            (1) Study.--The Secretary shall conduct a study--
                    (A) to identify issues related to the 
                protection of the rights of individuals whose 
                motor vehicles are towed;
                    (B) to establish the scope and geographic 
                reach of any issues so identified, and
                    (C) to identify potential remedies for 
                those issues.
            (2) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit to 
        the Committee on Commerce, Science, and Transportation 
        of the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives a report 
        on the results of the study.

SEC. 4106. MOTOR CARRIER SAFETY GRANTS.

    (a) State Plan Contents.--Section 31102(b)(1) of title 49, 
United States Code, is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) implements performance-based 
                activities, including deployment of technology 
                to enhance the efficiency and effectiveness of 
                commercial motor vehicle safety programs;'';
            (2) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) provides that the total expenditure 
                of amounts of the State and its political 
                subdivisions (not including amounts of the 
                Government) for commercial motor vehicle safety 
                programs for enforcement of commercial motor 
                vehicle size and weight limitations, drug 
                interdiction, and State traffic safety laws and 
                regulations under subsection (c) of this 
                section will be maintained at a level at least 
                equal to the average level of that expenditure 
                for the 3 full fiscal years beginning after 
                October 1 of the year 5 years prior to the 
                beginning of each Government fiscal year.'';
            (3) by striking subparagraph (Q) and inserting the 
        following:
                    ``(Q) provides that the State has 
                established a program to ensure that--
                            ``(i) accurate, complete, and 
                        timely motor carrier safety data is 
                        collected and reported to the 
                        Secretary; and
                            ``(ii) the State will participate 
                        in a national motor carrier safety data 
                        correction system prescribed by the 
                        Secretary;'';
            (4) by aligning subparagraph (R) with subparagraph 
        (S);
            (5) by striking ``and'' at the end of subparagraph 
        (S);
            (6) by striking the period at the end of 
        subparagraph (T) and inserting a semicolon; and
            (7) by adding at the end the following:
                    ``(U) provides that the State will include 
                in the training manual for the licensing 
                examination to drive a noncommercial motor 
                vehicle and a commercial motor vehicle, 
                information on best practices for driving 
                safely in the vicinity of noncommercial and 
                commercial motor vehicles;
                    ``(V) provides that the State will enforce 
                the registration requirements of section 13902 
                by prohibiting the operation of any vehicle 
                discovered to be operated by a motor carrier 
                without a registration issued under such 
                section or to operate beyond the scope of such 
                registration;
                    ``(W) provides that the State will conduct 
                comprehensive and highly visible traffic 
                enforcement and commercial motor vehicle safety 
                inspection programs in high-risk locations and 
                corridors; and
                    ``(X) except in the case of an imminent or 
                obvious safety hazard, ensures that an 
                inspection of a vehicle transporting passengers 
                for a motor carrier of passengers is conducted 
                at a station, terminal, border crossing, 
                maintenance facility, destination, or other 
                location where a motor carrier may make a 
                planned stop.''.
    (b) Use of Grants to Enforce Other Laws.--Section 31102 of 
such title is amended--
            (1) by striking subsection (c) and inserting the 
        following:
    ``(c) Use of Grants to Enforce Other Laws.--A State may use 
amounts received under a grant under subsection (a)--
            ``(1) for the following activities if the 
        activities are carried out in conjunction with an 
        appropriate inspection of the commercial motor vehicle 
        to enforce Government or State commercial motor vehicle 
        safety regulations:
                    ``(A) enforcement of commercial motor 
                vehicle size and weight limitations at 
                locations other than fixed weight facilities, 
                at specific locations such as steep grades or 
                mountainous terrains where the weight of a 
                commercial motor vehicle can significantly 
                affect the safe operation of the vehicle, or at 
                ports where intermodal shipping containers 
                enter and leave the United States; and
                    ``(B) detection of the unlawful presence of 
                a controlled substance (as defined under 
                section 102 of the Comprehensive Drug Abuse 
                Prevention and Control Act of 1970 (21 U.S.C. 
                802)) in a commercial motor vehicle or on the 
                person of any occupant (including the operator) 
                of the vehicle; and
            ``(2) for documented enforcement of State traffic 
        laws and regulations designed to promote the safe 
        operation of commercial motor vehicles, including 
        documented enforcement of such laws and regulations 
        relating to noncommercial motor vehicles when necessary 
        to promote the safe operation of commercial motor 
        vehicles if the number of motor carrier safety 
        activities (including roadside safety inspections) 
        conducted in the State is maintained at a level at 
        least equal to the average level of such activities 
        conducted in the State in fiscal years 2003, 2004, and 
        2005; except that the State may not use more than 5 
        percent of the basic amount the State receives under 
        the grant under subsection (a) for enforcement 
        activities relating to noncommercial motor vehicles 
        described in this paragraph unless the Secretary 
        determines a higher percentage will result in 
        significant increases in commercial motor vehicle 
        safety.''; and
            (2) by adding at the end the following:
    ``(e) Annual Report.--The Secretary shall submit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science and 
Transportation of the Senate an annual report that--
            ``(1) analyzes commercial motor vehicle safety 
        trends among the States and documents the most 
        effective commercial motor vehicle safety programs 
        implemented with grants under this section; and
            ``(2) describes the effect of activities carried 
        out with grants made under this section on commercial 
        motor vehicle safety.''.

SEC. 4107. HIGH PRIORITY ACTIVITIES AND NEW ENTRANTS AUDITS.

    (a) High Priority Activities.--Section 31104 of title 49, 
United States Code (as amended by section 4101 of this Act), is 
amended by adding at the end the following:
    ``(k) High-Priority Activities.--
            ``(1) Criteria.--The Secretary shall establish 
        safety performance criteria to be used to distribute 
        high priority program funds under this subsection.
            ``(2) Set aside.--The Secretary may set aside from 
        amounts made available by subsection (a) up to 
        $15,000,000 for each of fiscal years 2006 through 2009 
        for States, local governments, and organizations 
        representing government agencies or officials described 
        in paragraph (3) for carrying out high priority 
        activities and projects that improve commercial motor 
        vehicle safety and compliance with commercial motor 
        vehicle safety regulations (including activities and 
        projects that are national in scope), increase public 
        awareness and education, demonstrate new technologies, 
        and reduce the number and rate of accidents involving 
        commercial motor vehicles.
            ``(3) Description of recipients.--Amounts set aside 
        under this subsection shall be allocated by the 
        Secretary only to State agencies, local governments, 
        and organizations representing government agencies or 
        officials that use and train qualified officers and 
        employees in coordination with State motor vehicle 
        safety agencies.
            ``(4) Limitation.--At least 90 percent of the 
        amounts set aside for a fiscal year under this 
        subsection shall be awarded in grants to State agencies 
        and local government agencies.''.
    (b) New Entrant Audits.--Section 31104 of such title is 
amended--
            (1) by redesignating the second subsection as 
        subsection (f); and
            (2) by adding at the end of such subsection the 
        following:
            ``(5) New entrant audits.--
                    ``(A) Grants.--The Secretary may make 
                grants to States and local governments for new 
                entrant motor carrier audits under this 
                subsection without requiring a matching 
                contribution from such States and local 
                governments.
                    ``(B) Set aside.--The Secretary shall set 
                aside from amounts made available by section 
                31104(a) up to $29,000,000 per fiscal year for 
                audits of new entrant motor carriers conducted 
                pursuant to this paragraph.
                    ``(C) Determination.--If the Secretary 
                determines that a State or local government is 
                not able to use government employees to conduct 
                new entrant motor carrier audits, the Secretary 
                may use the funds set aside under this 
                paragraph to conduct audits for such States or 
                local governments.''.

SEC. 4108. DATA QUALITY IMPROVEMENT.

    (a) In General.--Section 31106(a)(3) of title 49, United 
States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph 
        (D);
            (2) by striking the period at the end of 
        subparagraph (E) and inserting a semicolon; and
            (3) by adding at the end the following:
                    ``(F) ensure, to the maximum extent 
                practical, all the data is complete, timely, 
                and accurate across all information systems and 
                initiatives; and
                    ``(G) establish and implement a national 
                motor carrier safety data correction system.''.
    (b) Report on Status of Safety Fitness Rating System 
Revision.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the 
Committee on Transportation and Infrastructure of the House of 
Representatives a report on the status of revision of the 
safety fitness rating system of motor carriers.

SEC. 4109. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT.

    (a) Design and Conditions for Participation.--Section 
31106(b) of title 49, United States Code, is amended by 
striking paragraphs (2), (3), and (4) and inserting the 
following:
            ``(2) Design.--The program shall link Federal motor 
        carrier safety information systems with State 
        commercial vehicle registration and licensing systems 
        and shall be designed to enable a State to--
                    ``(A) determine the safety fitness of a 
                motor carrier or registrant when licensing or 
                registering the registrant or motor carrier or 
                while the license or registration is in effect; 
                and
                    ``(B) deny, suspend, or revoke the 
                commercial motor vehicle registrations of a 
                motor carrier or registrant that has been 
                issued an operations out-of-service order by 
                the Secretary.
            ``(3) Conditions for participation.--The Secretary 
        shall require States, as a condition of participation 
        in the program, to--
                    ``(A) comply with the uniform policies, 
                procedures, and technical and operational 
                standards prescribed by the Secretary under 
                subsection (a)(4);
                    ``(B) possess or seek the authority to 
                possess for a time period no longer than 
                determined reasonable by the Secretary, to 
                impose sanctions relating to commercial motor 
                vehicle registration on the basis of a Federal 
                safety fitness determination; and
                    ``(C) establish and implement a process to 
                cancel the motor vehicle registration and seize 
                the registration plates of a vehicle when an 
                employer is found liable under section 
                31310(i)(2)(C) for knowingly allowing or 
                requiring an employee to operate such a 
                commercial motor vehicle in violation of an 
                out-of-service order.
            ``(4) Grants.--From the funds authorized by section 
        31104(i), the Secretary may make a grant in a fiscal 
        year to a State to implement the performance and 
        registration information system management requirements 
        of this subsection.''.
    (b) Performance and Registration Information System 
Management Grants.--
            (1) In general.--Subchapter I of chapter 311 of 
        title 49, United States Code, is further amended by 
        adding at the end the following:

``Sec. 31109. Performance and registration information System 
                    management

    ``The Secretary of Transportation may make a grant to a 
State to implement the performance and registration information 
system management requirements of section 31106(b).''.
            (2) Conforming amendment.--The analysis for such 
        subchapter is amended by adding at the end the 
        following:

``31109. Performance and registration information system management.''.

SEC. 4110. BORDER ENFORCEMENT GRANTS.

    (a) In General.--Chapter 311 of title 49, United States 
Code, is amended--
            (1) by striking the heading for subchapter I and 
        inserting the following:

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

            (2) by striking section 31107 and inserting the 
        following:

``Sec. 31107. Border enforcement grants

    ``(a) General Authority.--The Secretary of Transportation 
may make a grant in a fiscal year to an entity or State that 
shares a land border with another country for carrying out 
border commercial motor vehicle safety programs and related 
enforcement activities and projects.
    ``(b) Maintenance of Expenditures.--The Secretary may make 
a grant to a State under this section only if the State agrees 
that the total expenditure of amounts of the State and 
political subdivisions of the State, exclusive of amounts from 
the United States, for carrying out border commercial motor 
vehicle safety programs and related enforcement activities and 
projects will be maintained at a level at least equal to the 
average level of that expenditure by the State and political 
subdivisions of the State for the last 2 fiscal years of the 
State or the Federal Government ending before October 1, 2005, 
whichever the State designates.
    ``(c) Governments Share of Costs.--The Secretary shall 
reimburse a State under a grant made under this section an 
amount that is not more than 100 percent of the costs incurred 
by the State in a fiscal year for carrying out border 
commercial motor vehicle safety programs and related 
enforcement activities and projects.
    ``(d) Availability and Reallocation of Amounts.--
Allocations to a State remain available for expenditure in the 
State for the fiscal year in which they are allocated and for 
the next fiscal year. Amounts not expended by a State during 
those 2 fiscal years are available to the Secretary for 
reallocation under this section.''.
    (b) Clerical Amendments.--
            (1) Item relating to subchapter I.--The analysis 
        for such chapter is amended by striking the item 
        relating to subchapter I and inserting the following:

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

            (2) Item relating to section 31107.--The analysis 
        for such chapter is amended by striking the item 
        relating to section 31107 and inserting the following:

``31107. Border enforcement grants.''.

SEC. 4111. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

    (a) In General.--Section 31108 of title 49, United States 
Code, is amended to read as follows:

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

    ``(a) Research, Technology, and Technology Transfer 
Activities.--
            ``(1) Establishment.--The Secretary of 
        Transportation shall establish and carry out a motor 
        carrier and motor coach research and technology 
        program.
            ``(2) Multiyear plan.--The program must include a 
        multi-year research plan that focuses on nonredundant 
        innovative research and shall be coordinated with other 
        research programs or projects ongoing or planned within 
        the Department of Transportation, as appropriate.
            ``(3) Research, development, and technology 
        transfer activities.--The Secretary may carry out under 
        the program research, development, technology, and 
        technology transfer activities with respect to--
                    ``(A) the causes of accidents, injuries, 
                and fatalities involving commercial motor 
                vehicles;
                    ``(B) means of reducing the number and 
                severity of accidents, injuries, and fatalities 
                involving commercial motor vehicles;
                    ``(C) improving the safety and efficiency 
                of commercial motor vehicles through 
                technological innovation and improvement;
                    ``(D) improving technology used by 
                enforcement officers when conducting roadside 
                inspections and compliance reviews to increase 
                efficiency and information transfers; and
                    ``(E) increasing the safety and security of 
                hazardous materials transportation.
            ``(4) Tests and development.--The Secretary may 
        test, develop, or assist in testing and developing any 
        material, invention, patented article, or process 
        related to the research and technology program.
            ``(5) Training.--The Secretary may use the funds 
        made available to carry out this section for training 
        or education of commercial motor vehicle safety 
        personnel, including training in accident 
        reconstruction and detection of controlled substances 
        or other contraband and stolen cargo or vehicles.
            ``(6) Procedures.--The Secretary may carry out this 
        section--
                    ``(A) independently;
                    ``(B) in cooperation with other Federal 
                departments, agencies, and instrumentalities 
                and Federal laboratories; or
                    ``(C) by making grants to, or entering into 
                contracts and cooperative agreements with, any 
                Federal laboratory, State agency, authority, 
                association, institution, for-profit or 
                nonprofit corporation, organization, foreign 
                country, or person.
            ``(7) Development and promotion of use of 
        products.--The Secretary shall use funds made available 
        to carry out this section to develop, administer, 
        communicate, and promote the use of products of 
        research, technology, and technology transfer programs 
        under this section.
    ``(b) Collaborative Research and Development.--
            ``(1) In general.--To advance innovative solutions 
        to problems involving commercial motor vehicle and 
        motor carrier safety, security, and efficiency, and to 
        stimulate the deployment of emerging technology, the 
        Secretary may carry out, on a cost-shared basis, 
        collaborative research and development with--
                    ``(A) non-Federal entities, including State 
                and local governments, foreign governments, 
                colleges and universities, corporations, 
                institutions, partnerships, and sole 
                proprietorships that are incorporated or 
                established under the laws of any State; and
                    ``(B) Federal laboratories.
            ``(2) Cooperative agreements.--In carrying out this 
        subsection, the Secretary may enter into cooperative 
        research and development agreements (as fined in 
        section 12 of the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3710a)).
            ``(3) Cost sharing.--
                    ``(A) Federal share.--The Federal share of 
                the cost of activities carried out under a 
                cooperative research and development agreement 
                entered into under this subsection shall not 
                exceed 50 percent; except that, if there is 
                substantial public interest or benefit 
                associated with any such activity, the 
                Secretary may approve a greater Federal share.
                    ``(B) Treatment of directly incurred non-
                federal costs.--All costs directly incurred by 
                the non-Federal partners, including personnel, 
                travel, and hardware or software development 
                costs, shall be credited toward the non-Federal 
                share of the cost of the activities described 
                in subparagraph (A).
            ``(4) Use of technology.--The research, 
        development, or use of a technology under a cooperative 
        research and development agreement entered into under 
        this subsection, including the terms under which the 
        technology may be licensed and the resulting royalties 
        may be distributed, shall be subject to the Stevenson-
        Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3701 et seq.).''.
    (b) Clerical Amendment.--The analysis for chapter 311 of 
such title is amended by striking the item relating to section 
31108 and inserting the following:

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

SEC. 4112. NEBRASKA CUSTOM HARVESTERS LENGTH EXEMPTION.

    (a) In General.--Section 31112(c) of title 49, United 
States Code, is amended by adding at the end the following:
            ``(5) Nebraska may allow the operation of a truck 
        tractor and 2 trailers or semitrailers not in actual 
        lawful operation on a regular or periodic basis on June 
        1, 1991, if the length of the property-carrying units 
        does not exceed 81 feet 6 inches and such combination 
        is used only to transport equipment utilized by custom 
        harvesters under contract to agricultural producers to 
        harvest one or more of wheat, soybeans, and milo during 
        the harvest months for such crops, as defined by the 
        State of Nebraska.''.
    (b) Conforming Amendment.--Such section 31112(c) is amended 
by striking the subsection designation and heading and 
inserting the following:
    ``(c) Special Rules for Wyoming, Ohio, Alaska, Iowa, and 
Nebraska.--''.

SEC. 4113. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT.

    (a) Duties of Employers and Employees.--Section 31135 of 
title 49, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before 
        ``Each''; and
            (2) by adding at the end the following:
    ``(b) Pattern of Noncompliance.--If the Secretary finds 
that an officer of a motor carrier engages or has engaged in a 
pattern or practice of avoiding compliance, or masking or 
otherwise concealing noncompliance, with regulations on 
commercial motor vehicle safety prescribed under this 
subchapter, while serving as an officer of any motor carrier, 
the Secretary may suspend, amend, or revoke any part of the 
motor carrier's registration under section 13905.
    ``(c) Regulations.--Not later than 1 year after the date of 
enactment of this subsection, the Secretary shall by regulation 
establish standards to implement subsection (b).
    ``(d) Definitions.--In this section, the following 
definitions apply:
            ``(1) Motor carrier.--The term `motor carrier' has 
        the meaning such term has under section 13102.
            ``(2) Officer.--The term `officer' means an owner, 
        director, chief executive officer, chief operating 
        officer, chief financial officer, safety director, 
        vehicle maintenance supervisor, and driver supervisor 
        of a motor carrier, regardless of the title attached to 
        those functions, and any person, however designated, 
        exercising controlling influence over the operations of 
        a motor carrier.''.
    (b) Cross Reference.--Section 13902(a)(1)(B) of such title 
is amended to read as follows:
                    ``(B)(i) any safety regulations imposed by 
                the Secretary;
                    ``(ii) the duties of employers and 
                employees established by the Secretary under 
                section 31135; and
                    ``(iii) the safety fitness requirements 
                established by the Secretary under section 
                31144; and''.

SEC. 4114. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS.

    (a) In General.--Section 31144(a) of title 49, United 
States Code, is amended to read as follows:
    ``(a) In General.--The Secretary shall--
            ``(1) determine whether an owner or operator is fit 
        to operate safely commercial motor vehicles, utilizing 
        among other things the accident record of an owner or 
        operator operating in interstate commerce and the 
        accident record and safety inspection record of such 
        owner or operator--
                    ``(A) in operations that affect interstate 
                commerce within the United States; and
                    ``(B) in operations in Canada and Mexico if 
                the owner or operator also conducts operations 
                within the United States;
            ``(2) periodically update such safety fitness 
        determinations;
            ``(3) make such final safety fitness determinations 
        readily available to the public; and
            ``(4) prescribe by regulation penalties for 
        violations of this section consistent with section 
        521.''.
    (b) Prohibited Transportation.--The first subsection (c) of 
section 31144 of such title is amended by adding at the end the 
following:
            ``(5) Transportation affecting interstate 
        commerce.--Owners or operators of commercial motor 
        vehicles prohibited from operating in interstate 
        commerce pursuant to paragraphs (1) through (3) of this 
        section may not operate any commercial motor vehicle 
        that affects interstate commerce until the Secretary 
        determines that such owner or operator is fit.''.
    (c) Determination of Unfitness by State.--Section 31144 of 
such title is amended--
            (1) by redesignating subsections (d), (e), and the 
        second subsection (c) as subsections (e), (f), and (g), 
        respectively; and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Determination of Unfitness by State.--If a State that 
receives motor carrier safety assistance program funds under 
section 31102 determines, by applying the standards prescribed 
by the Secretary under subsection (b), that an owner or 
operator of a commercial motor vehicle that has its principal 
place of business in that State and operates in intrastate 
commerce is unfit under such standards and prohibits the owner 
or operator from operating such vehicle in the State, the 
Secretary shall prohibit the owner or operator from operating 
such vehicle in interstate commerce until the State determines 
that the owner or operator is fit.''.

SEC. 4115. TRANSFER PROVISION.

    (a) In General.--Title II of the Motor Carrier Safety 
Improvement Act of 1999 (113 Stat. 1748-1773) is amended by 
inserting after section 228--
            (1) the following:

``SEC. 229. CERTAIN EXEMPTIONS.'';

        and
            (2) the text of section 345 of the National Highway 
        System Designation Act of 1995 (49 U.S.C. 31136 note).
    (b) Clerical Amendment.--The table of contents for such Act 
is amended by inserting after the item relating to section 228 
the following:

``Sec. 229. Certain exemptions.''.

    (c) Conforming Amendment.--Section 229 of such Act (as 
added by this section) is amended by striking subsection (f).
    (d) Conforming Repeal.--Section 345 of the National Highway 
System Designation Act of 1995 (49 U.S.C. 31136 note; 109 Stat. 
613) is repealed.

SEC. 4116. MEDICAL PROGRAM.

    (a) In General.--Subchapter III of chapter 311 of title 49, 
United States Code, is amended by adding at the end the 
following:

``Sec. 31149. Medical program

    ``(a) Medical Review Board.--
            ``(1) Establishment and function.--The Secretary of 
        Transportation shall establish a Medical Review Board 
        to provide the Federal Motor Carrier Safety 
        Administration with medical advice and recommendations 
        on medical standards and guidelines for the physical 
        qualifications of operators of commercial motor 
        vehicles, medical examiner education, and medical 
        research.
            ``(2) Composition.--The Medical Review Board shall 
        be appointed by the Secretary and shall consist of 5 
        members selected from medical institutions and private 
        practice. The membership shall reflect expertise in a 
        variety of medical specialties relevant to the driver 
        fitness requirements of the Federal Motor Carrier 
        Safety Administration.
    ``(b) Chief Medical Examiner.--The Secretary shall appoint 
a chief medical examiner who shall be an employee of the 
Federal Motor Carrier Safety Administration and who shall hold 
a position under section 3104 of title 5, United States Code, 
relating to employment of specially qualified scientific and 
professional personnel, and shall be paid under section 5376 of 
title 5, United States Code, relating to pay for certain 
senior-level positions.
    ``(c) Medical Standards and Requirements.--
            ``(1) In general.--The Secretary, with the advice 
        of the Medical Review Board and the chief medical 
        examiner, shall--
                    ``(A) establish, review, and revise--
                            ``(i) medical standards for 
                        operators of commercial motor vehicles 
                        that will ensure that the physical 
                        condition of operators of commercial 
                        motor vehicles is adequate to enable 
                        them to operate the vehicles safely;
                            ``(ii) requirements for periodic 
                        physical examinations of such operators 
                        performed by medical examiners who 
                        have, at a minimum, self-certified that 
                        they have completed training in 
                        physical and medical examination 
                        standards and are listed on a national 
                        registry maintained by the Department 
                        of Transportation; and
                    ``(B) require each such operator to have a 
                current valid medical certificate;
                    ``(C) conduct periodic reviews of a select 
                number of medical examiners on the national 
                registry to ensure that proper examinations of 
                such operators are being conducted;
                    ``(D) develop, as appropriate, specific 
                courses and materials for medical examiners 
                listed in the national registry established 
                under this section, and require those medical 
                examiners to, at a minimum, self-certify that 
                they have completed specific training, 
                including refresher courses, to be listed in 
                the registry;
                    ``(E) require medical examiners to transmit 
                the name of the applicant and numerical 
                identifier, as determined by the Administrator 
                of the Federal Motor Carrier Safety 
                Administration, for any completed medical 
                examination report required under section 
                391.43 of title 49, Code of Federal 
                Regulations, electronically to the chief 
                medical examiner on monthly basis; and
                    ``(F) periodically review a representative 
                sample of the medical examination reports 
                associated with the name and numerical 
                identifiers of applicants transmitted under 
                subparagraph (E) for errors, omissions, or 
                other indications of improper certification.
            ``(2) Monitoring performance.--The Secretary shall 
        investigate patterns of errors or improper 
        certification by a medical examiner. If the Secretary 
        finds that a medical examiner has issued a medical 
        certificate to an operator of a commercial motor 
        vehicle who fails to meet the applicable standards at 
        the time of the examination or that a medical examiner 
        has falsely claimed to have completed training in 
        physical and medical examination standards as required 
        by this section, the Secretary may remove such medical 
        examiner from the registry and may void the medical 
        certificate of the applicant or holder.
    ``(d) National Registry of Medical Examiners.--The 
Secretary, acting through the Federal Motor Carrier Safety 
Administration--
            ``(1) shall establish and maintain a current 
        national registry of medical examiners who are 
        qualified to perform examinations and issue medical 
        certificates;
            ``(2) shall remove from the registry the name of 
        any medical examiner that fails to meet or maintain the 
        qualifications established by the Secretary for being 
        listed in the registry or otherwise does not meet the 
        requirements of this section or regulation issued under 
        this section;
            ``(3) shall accept as valid only medical 
        certificates issued by persons on the national registry 
        of medical examiners; and
            ``(4) may make participation of medical examiners 
        in the national registry voluntary if such a change 
        will enhance the safety of operators of commercial 
        motor vehicles.
    ``(e) Regulations.--The Secretary such regulations as may 
be necessary to carry out this section.''.
    (b) Medical Examiners.--Section 31136(a)(3) of such title 
is amended to read as follows:
            ``(3) the physical condition of operators of 
        commercial motor vehicles is adequate to enable them to 
        operate the vehicles safely and the periodic physical 
        examinations required of such operators are performed 
        by medical examiners who have received training in 
        physical and medical examination standards and, after 
        the national registry maintained by the Department of 
        Transportation under section 31149(d) is established, 
        are listed on such registry; and''.
    (c) Definition of Medical Examiner.--Section 31132 of such 
title is amended--
            (1) by redesignating paragraphs (6) through (10) as 
        paragraphs (7) through (11), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) `medical examiner' means an individual 
        licensed, certified, or registered in accordance with 
        regulations issued by the Federal Motor Carrier Safety 
        Administration as a medical examiner.''.
    (d) Funding.--Amounts made available pursuant to section 
31104(i) of title 49, United States Code, shall be used by the 
Secretary to carry out section 31149 of title 49, United States 
Code.
    (e) Clerical Amendment.--The analysis for such subchapter 
is amended by inserting after the item relating to section 
31148 the following:

``31149. Medical program.''.

    (f) Effective Date.--The amendment made by subsection (a) 
shall take effect on the 365th day following the date of 
enactment of this Act.

SEC. 4117. SAFETY PERFORMANCE HISTORY SCREENING.

    (a) In General.--Subchapter III of chapter 311 of title 49, 
United States Code (as amended by section 4116 of this Act), is 
amended by adding at the end the following:

``Sec. 31150. Safety performance history screening

    ``(a) In General.--The Secretary of Transportation shall 
provide persons conducting preemployment screening services for 
the motor carrier industry electronic access to the following 
reports contained in the Motor Carrier Management Information 
System:
            ``(1) Commercial motor vehicle accident reports.
            ``(2) Inspection reports that contain no driver-
        related safety violations.
            ``(3) Serious driver-related safety violation 
        inspection reports.
    ``(b) Conditions on Providing Access.--Before providing a 
person access to the Motor Carrier Management Information 
System under subsection (a), the Secretary shall--
            ``(1) ensure that any information that is released 
        to such person will be in accordance with the Fair 
        Credit Reporting Act (15 U.S.C. 1681 et seq.) and all 
        other applicable Federal law;
            ``(2) ensure that such person will not conduct a 
        screening without the operator-applicant's written 
        consent;
            ``(3) ensure that any information that is released 
        to such person will not be released to any person or 
        entity, other than the motor carrier requesting the 
        screening services or the operator-applicant, unless 
        expressly authorized or required by law; and
            ``(4) provide a procedure for the operator-
        applicant to correct inaccurate information in the 
        System in a timely manner.
    ``(c) Design.--The process for providing access to the 
Motor Carrier Management Information System under subsection 
(a) shall be designed to assist the motor carrier industry in 
assessing an individual operator's crash and serious safety 
violation inspection history as a preemployment condition. Use 
of the process shall not be mandatory and may only be used 
during the preemployment assessment of an operator-applicant.
    ``(d) Serious Driver-Related Safety Violation Defined.--In 
this section, the term `serious driver-related violation' means 
a violation by an operator of a commercial motor vehicle that 
the Secretary determines will result in the operator being 
prohibited from continuing to operate a commercial motor 
vehicle until the violation is corrected.''.
    (b) Clerical Amendment.--The analysis for such subchapter 
(as amended by section 4116 of this Act) is amended by adding 
at the end the following:

``31150. Safety performance history screening.''.

SEC. 4118. ROADABILITY.

    (a) In General.--Subchapter III of chapter 311 of title 49, 
United States Code (as amended by sections 4116 and 4117 of 
this Act) is amended by adding at the end the following:

``Sec. 31151. Roadability

    ``(a) Inspection, Repair, and Maintenance of Intermodal 
Equipment.--
            ``(1) In general.--Not later than 1 year after the 
        date of enactment of this section, the Secretary of 
        Transportation, after providing notice and opportunity 
        for comment, shall issue regulations establishing a 
        program to ensure that intermodal equipment used to 
        transport intermodal containers is safe and 
        systematically maintained.
            ``(2) Intermodal equipment safety regulations.--The 
        Secretary shall issue the regulations under this 
        section as a subpart of the Federal motor carry safety 
        regulations.
            ``(3) Contents.--The regulations issued under this 
        section shall include, at a minimum--
                    ``(A) a requirement to identify intermodal 
                equipment providers responsible for the 
                inspection and maintenance of intermodal 
                equipment that is interchanged or intended for 
                interchange to motor carriers in intermodal 
                transportation;
                    ``(B) a requirement to match intermodal 
                equipment readily to an intermodal equipment 
                provider through a unique identifying number;
                    ``(C) a requirement that an intermodal 
                equipment provider identified under 
                subparagraph (A) systematically inspect, 
                repair, and maintain, or cause to be 
                systematically inspected, repaired, and 
                maintained, intermodal equipment described in 
                subparagraph (A) that is intended for 
                interchange with a motor carrier;
                    ``(D) a requirement to ensure that each 
                intermodal equipment provider identified under 
                subparagraph (A) maintains a system of 
                maintenance and repair records for such 
                equipment;
                    ``(E) requirements that--
                            ``(i) a specific list of intermodal 
                        equipment components or items be 
                        identified for the visual or audible 
                        inspection of which a driver is 
                        responsible before operating the 
                        equipment over the road; and
                            ``(ii) the inspection under clause 
                        (i) be conducted as part of the Federal 
                        requirement in effect on the date of 
                        enactment of this Act that a driver be 
                        satisfied that the intermodal equipment 
                        components are in good working order 
                        before the equipment is operated over 
                        the road;
                    ``(F) a requirement that a facility at 
                which an intermodal equipment provider 
                regularly makes intermodal equipment available 
                for interchange have an operational process and 
                space readily available for a motor carrier to 
                have an equipment defect identified pursuant to 
                subparagraph (E) repaired or the equipment 
                replaced prior to departure;
                    ``(G) a program for the evaluation and 
                audit of compliance by intermodal equipment 
                providers with applicable Federal motor carrier 
                safety regulations;
                    ``(H) a civil penalty structure consistent 
                with section 521(b) of title 49, United States 
                Code, for intermodal equipment providers that 
                fail to attain satisfactory compliance with 
                applicable Federal motor carrier safety 
                regulations; and
                    ``(I) a prohibition on intermodal equipment 
                providers from placing intermodal equipment in 
                service on the public highways to the extent 
                such providers or their equipment are found to 
                pose an imminent hazard;
                    ``(J) a process by which motor carriers and 
                agents of motor carriers shall be able to 
                request the Federal Motor Carrier Safety 
                Administration to undertake an investigation of 
                an intermodal equipment provider identified 
                under subparagraph (A) that is alleged to be 
                not in compliance with the regulations under 
                this section;
                    ``(K) a process by which equipment 
                providers and agents of equipment providers 
                shall be able to request the Administration to 
                undertake an investigation of a motor carrier 
                that is alleged to be not in compliance with 
                the regulations issued under this section;
                    ``(L) a process by which a driver or motor 
                carrier transporting intermodal equipment is 
                required to report to the intermodal equipment 
                provider or the provider's designated agent any 
                actual damage or defect in the intermodal 
                equipment of which the driver or motor carrier 
                is aware at the time the intermodal equipment 
                is returned to the intermodal equipment 
                provider or the provider's designated agent;
                    ``(M) a requirement that any actual damage 
                or defect identified in the process established 
                under subparagraph (L) be repaired before the 
                equipment is made available for interchange to 
                a motor carrier and that repairs of equipment 
                made pursuant to the requirements of this 
                subparagraph and reports made pursuant to the 
                subparagraph (L) process be documented in the 
                maintenance records for such equipment; and
                    ``(N) a procedure under which motor 
                carriers, drivers and intermodal equipment 
                providers may seek correction of their motor 
                carrier safety records through the deletion 
                from those records of violations of safety 
                regulations attributable to deficiencies in the 
                intermodal chassis or trailer for which they 
                should not have been held responsible.
            ``(4) Deadline for rulemaking proceeding.--Not 
        later than 120 days after the date of enactment of this 
        section, the Secretary shall initiate a rulemaking 
        proceeding for issuance of the regulations under this 
        section.
    ``(b) Inspection, Repair, and Maintenance of Intermodal 
Equipment.--The Secretary or an employee of the Department of 
Transportation designated by the Secretary may inspect 
intermodal equipment, and copy related maintenance and repair 
records for such equipment, on demand and display of proper 
credentials.
    ``(c) Out-of-Service Until Repair.--Any intermodal 
equipment that is determined under this section to fail to 
comply with applicable Federal safety regulations may be placed 
out of service by the Secretary or a Federal, State, or 
government official designated by the Secretary and may not be 
used on a public highway until the repairs necessary to bring 
such equipment into compliance have been completed. Repairs of 
equipment taken out of service shall be documented in the 
maintenance records for such equipment.
    ``(d) Preemption Generally.--Except as provided in 
subsection (e), a law, regulation, order, or other requirement 
of a State, a political subdivision of a State, or a tribal 
organization relating to commercial motor vehicle safety is 
preempted if such law, regulation, order, or other requirement 
exceeds or is inconsistent with a requirement imposed under or 
pursuant to this section.
    ``(e) Pre-Existing State Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a State requirement for the periodic inspection of 
        intermodal chassis by intermodal equipment providers 
        that was in effect on January 1, 2005, shall remain in 
        effect only until the date on which requirements 
        prescribed under this section take effect.
            ``(2) Nonpreemption determinations.--
                    ``(A) In general.--Notwithstanding 
                subsection (d), a State requirement described 
                in paragraph (1) is not preempted by a Federal 
                requirement prescribed under this section if 
                the Secretary determines that the State 
                requirement is as effective as the Federal 
                requirement and does not unduly burden 
                interstate commerce.
                    ``(B) Application required.--Subparagraph 
                (A) applies to a State requirement only if the 
                State applies to the Secretary for a 
                determination under this paragraph with respect 
                to the requirement before the date on which the 
                regulations issued under this section take 
                effect.The Secretary shall make a determination 
with respect to any such application within 6 months after the date on 
which the Secretary receives the application.
                    ``(C) Amended state requirements.--Any 
                amendment to a State requirement not preempted 
                under this subsection because of a 
                determination by the Secretary under 
                subparagraph (A) may not take effect unless--
                            ``(i) it is submitted to the 
                        Secretary before the effective date of 
                        the amendment; and
                            ``(ii) the Secretary determines 
                        that the amendment would not cause the 
                        State requirement to be less effective 
                        than the Federal requirement and would 
                        not unduly burden interstate commerce.
    ``(f) Definitions.--In this section, the following 
definitions apply:
            ``(1) Intermodal equipment.--The term `intermodal 
        equipment' means trailing equipment that is used in the 
        intermodal transportation of containers over public 
        highways in interstate commerce, including trailers and 
        chassis.
            ``(2) Intermodal equipment interchange agreement.--
        The term `intermodal equipment interchange agreement' 
        means the Uniform Intermodal Interchange and Facilities 
        Access Agreement or any other written document executed 
        by an intermodal equipment provider or its agent and a 
        motor carrier or its agent, the primary purpose of 
        which is to establish the responsibilities and 
        liabilities of both parties with respect to the 
        interchange of the intermodal equipment.
            ``(3) Intermodal equipment provider.--The term 
        `intermodal equipment provider' means any person that 
        interchanges intermodal equipment with a motor carrier 
        pursuant to a written interchange agreement or has a 
        contractual responsibility for the maintenance of the 
        intermodal equipment.
            ``(4) Interchange.--The term `interchange'--
                    ``(A) means the act of providing intermodal 
                equipment to a motor carrier pursuant to an 
                intermodal equipment interchange agreement for 
                the purpose of transporting the equipment for 
                loading or unloading by any person or 
                repositioning the equipment for the benefit of 
                the equipment provider; but
                    ``(B) does not include the leasing of 
                equipment to a motor carrier for primary use in 
                the motor carrier's freight hauling 
                operations.''.
    (b) Clerical Amendment.--The analysis for such subchapter 
(as amended by sections 4116 and 4117 of this Act) is amended 
by adding at the end the following:

``31151. Roadability.''.

SEC. 4119. INTERNATIONAL COOPERATION.

    (a) In General.--Chapter 311 of title 49, United States 
Code, is amended by adding at the end the following:

                     ``SUBCHAPTER IV--MISCELLANEOUS

``Sec. 31161. International cooperation

    ``The Secretary of Transportation is authorized to use 
funds made available by section 31104(i) to participate and 
cooperate in international activities to enhance motor carrier, 
commercial motor vehicle, driver, and highway safety by such 
means as exchanging information, conducting research, and 
examining needs, best practices, and new technology.''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by adding at the end the following:

                     ``SUBCHAPTER IV--MISCELLANEOUS

``31161. International cooperation.''.

SEC. 4120. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR CARRIERS.

    (a) Transportation of Passengers.--
            (1) General requirement.--Section 31138(a) of title 
        49, United States Code, is amended--
                    (A) by striking ``for compensation''; and
                    (B) by inserting ``commercial'' before 
                ``motor vehicle''.
            (2) Other persons.--Section 31138(c) of such title 
        is amended by adding at the end the following:
            ``(4) Other persons.--The Secretary may require a 
        person, other than a motor carrier (as defined in 
        section 13102), transporting passengers by commercial 
        motor vehicle to file with the Secretary the evidence 
        of financial responsibility specified in subsection 
        (c)(1) in an amount not less than the greater of the 
        amount required by subsection (b)(1) or the amount 
        required for such person to transport passengers under 
        the laws of the State or States in which the person is 
        operating; except that the amount of the financial 
        responsibility must be sufficient to pay not more than 
        the amount of the financial responsibility for each 
        final judgment against the person for bodily injury to, 
        or death of, an individual resulting from the negligent 
        operation, maintenance, or use of the commercial motor 
        vehicle, or for loss or damage to property, or both.''.
    (b) Transportation of Property.--Section 31139 of such 
title is amended--
            (1) in subsection (b)(1)--
                    (A) by striking ``for compensation''; and
                    (B) by inserting ``commercial'' before 
                ``motor vehicle'';
            (2) by redesignating subsections (c) through (g) as 
        subsections (d) through (h), respectively; and
            (3) by inserting after subsection (b) the 
        following:
    ``(c) Filing of Evidence of Financial Responsibility.--The 
Secretary may require a motor private carrier (as defined in 
section 13102) to file with the Secretary the evidence of 
financial responsibility specified in subsection (b) in an 
amount not less than the greater of the minimum amount required 
by this section or the amount required for such motor private 
carrier to transport property under the laws of the State or 
States in which the motor private carrier is operating; except 
that the amount of the financial responsibility must be 
sufficient to pay not more than the amount of the financial 
responsibility for each final judgment against the motor 
private carrier for bodily injury to, or death of, an 
individual resulting from negligent operation, maintenance, or 
use of the commercial motor vehicle, or for loss or damage to 
property, or both.''.

SEC. 4121. DEPOSIT OF CERTAIN CIVIL PENALTIES INTO HIGHWAY TRUST FUND.

    Sections 31138(d)(5) and 31139(f)(5) of title 49, United 
States Code, are each amended by striking ``Treasury as 
miscellaneous receipts'' and inserting ``Highway Trust Fund 
(other than the Mass Transit Account)''.

SEC. 4122. CDL LEARNER'S PERMIT PROGRAM.

    Chapter 313 of title 49, United States Code, is amended--
            (1) in section 31302 by inserting ``and may have 
        only 1 learner's permit at any time'' after ``time'';
            (2) in section 31308--
                    (A) by inserting after ``license'' the 
                first place it appears ``and learner's 
                permits'' ;
                    (B) by striking ``licenses.'' and inserting 
                ``licenses and permits.'';
                    (C) by redesignating paragraphs (2) and (3) 
                as paragraphs (3) and (4), respectively; and
                    (D) by inserting after paragraph (1) the 
                following:
            ``(2) before a commercial driver's license 
        learner's permit may be issued to an individual, the 
        individual must pass a written test, that complies with 
        the minimum standards prescribed by the Secretary under 
        section 31305(a), on the operation of the commercial 
        motor vehicle that the individual will be operating 
        under the permit;''; and
                    (E) in paragraphs (3) and (4) of section 
                31308 (as so redesignated) and in section 31309 
                (b) by inserting after ``license'' each place 
                it appears ``or learner's permit''.

SEC. 4123. COMMERCIAL DRIVER'S LICENSE INFORMATION SYSTEM 
                    MODERNIZATION.

    (a) Modernization Plan.--Section 31309 of title 49, United 
States Code, is amended by adding at the end the following:
    ``(e) Modernization Plan.--
            ``(1) In general.--Not later than 120 days after 
        the date of enactment of this subsection, the Secretary 
        shall develop and publish a comprehensive national plan 
        to modernize the information system under this section 
        that--
                    ``(A) complies with applicable Federal 
                information technology security standards;
                    ``(B) provides for the electronic exchange 
                of all information including the posting of 
                convictions;
                    ``(C) contains self auditing features to 
                ensure that data is being posted correctly and 
                consistently by the States;
                    ``(D) integrates the commercial driver's 
                license and the medical certificate; and
                    ``(E) provides a schedule for modernization 
                of the system.
            ``(2) Consultation.--The plan shall be developed in 
        consultation with representatives of the motor carrier 
        industry, State safety enforcement agencies, and State 
        licensing agencies designated by the Secretary.
            ``(3) State funding of future efforts.--The plan 
        shall specify that States will fund future efforts to 
        modernize the commercial driver's information system.
            ``(4) Deadline for state participation.--
                    ``(A) In general.--The Secretary shall 
                establish in the plan a date by which all 
                States must be operating commercial driver's 
                license information systems that are compatible 
                with the modernized information system under 
                this section.
                    ``(B) Factors to consider.--In establishing 
                the date under subparagraph (A), the Secretary 
                shall consider the following:
                            ``(i) Availability and cost of 
                        technology and equipment needed to 
                        comply with subparagraph (A).
                            ``(ii) Time necessary to install, 
                        and test the operation of, such 
                        technology and equipment.
            ``(5) Implementation.--The Secretary shall 
        implement the plan developed under subsection (a) and 
        modernize the information system under this section to 
        meet the requirements of the plan.
    ``(f) Funding.--At the Secretary's discretion, a State may 
use the funds made available to the State under section 31318 
to modernize its commercial driver's license information system 
to be compatible with the modernized information system under 
this section.''.
    (b) State Participations.--Section 31311(a) of such title 
is amended--
            (1) in paragraph (15) by striking ``(g)(1)(A), and 
        (g)(2)'' and inserting ``(i)(1)(A) and (i)(2)'';
            (2) in paragraph (17) by striking ``section 
        31310(h)'' and inserting ``as 31310(j)''; and
            (3) by adding at the end the following:
            ``(21) By the date established by the Secretary 
        under section 31309(e)(4), the State shall be operating 
        a commercial driver's license information system that 
        is compatible with the modernized commercial driver's 
        license information system under section 31309.''.
    (c) Grants.--
            (1) In general.--The Secretary may make a grant to 
        a State or organization representing agencies and 
        officials of a State in a fiscal year to modernize the 
        commercial driver's license information system of the 
        State to be compatible with the modernized commercial 
        driver's license information system under section 31309 
        of title 49, United States Code, if the State is in 
        substantial compliance with the requirements of section 
        31311 of such title and this section, as determined by 
        the Secretary.
            (2) Criteria.--The Secretary shall establish 
        criteria for the distribution of grants and notify each 
        State annually of such criteria.
            (3) Use of grant.--A State may use a grant under 
        this subsection only to implement improvements that are 
        consistent with the modernization plan developed by the 
        Secretary.
            (4) Government share.--A grant under this 
        subsection to a State or organization may not be for 
        more than 80 percent of the costs incurred by the State 
        or organization in a fiscal year in modernizing the 
        commercial driver's license information system of the 
        State to be compatible with the modernized commercial 
        driver's license information system under section 31309 
        of title 49, United States Code. In determining these 
        costs, the Secretary shall include in-kind 
        contributions of the State.
    (d) Funding.--There are authorized to be appropriated from 
the Highway Trust Fund (other than the Mass Transit Account) to 
carry out this section--
            (1) $5,000,000 for fiscal year 2006;
            (2) $7,000,000 for fiscal year 2007;
            (3) $8,000,000 for fiscal year 2008; and
            (4) $8,000,000 for fiscal year 2009.
    (e) Contract Authority and Availability.--
            (1) Period of availability.--The amounts made 
        available under subsection (d) shall remain available 
        until expended.
            (2) Initial date of availability.--Amounts 
        authorized to be appropriated from the Highway Trust 
        Fund (other than the Mass Transit Account) by 
        subsection (d) shall be available for obligation on the 
        date of their apportionment or allocation or on October 
        1 of the fiscal year for which they are authorized, 
        whichever occurs first.
            (3) Contract authority.--Approval by the Secretary 
        of a grant with funds made available under subsection 
        (d) imposes upon the United States a contractual 
        obligation for payment of the Government's share of 
        costs incurred in carrying out the objectives of the 
        grant.
    (f) Baseline Audit.--Not later than 1 year after the date 
of enactment of this Act, the Secretary, in consultation with 
the Inspector General of the Department of Transportation, 
shall perform a baseline audit of the information system 
maintained under section 31309 of title 49, United States Code. 
The audit shall include--
            (1) an assessment of the validity of data in the 
        information system on a State-by-State basis;
            (2) an assessment of the extent to which 
        convictions are validly posted on a driver's record;
            (3) recommendations to the Secretary on how to 
        update the baseline audit annually to ensure that any 
        shortcomings in the information system are addressed, 
        and a methodology for conducting the update;
            (4) identification, on a State-by-State basis, of 
        any actions that the Inspector General finds necessary 
        to improve the integrity of data collected by the 
        system and to ensure the proper posting of convictions; 
        and
            (5) an analysis of amounts and use of the revenues 
        derived from fees charged for use of the commercial 
        driver's license information system.

SEC. 4124. COMMERCIAL DRIVER'S LICENSE IMPROVEMENTS.

    (a) State Grants.--Chapter 313 of title 49, United States 
Code, is amended by inserting after section 31312 the 
following:

``Sec. 31313. Grants for commercial driver's license program 
                    improvements

    ``(a) Grants for Commercial Driver's License Program 
Improvements.--
            ``(1) General authority.--The Secretary of 
        Transportation may make a grant to a State in a fiscal 
        year--
                    ``(A) to comply with the requirements of 
                section 31311; and
                    ``(B) in the case of a State that is making 
                a good faith effort toward substantial 
                compliance with the requirements of section 
                31311 and this section, to improve its 
                implementation of its commercial driver's 
                license program.
            ``(2) Purposes for which grants may be used.--
                    ``(A) In general.--A State may use grants 
                under paragraphs (1)(A) and (1)(B) only for 
                expenses directly related to its compliance 
                with section 31311; except that a grant under 
                paragraph (1)(B) may be used for improving 
                implementation of the State's commercial 
                driver's license program, including expenses 
                for computer hardware and software, 
                publications, testing, personnel, training, and 
                quality control. The grant may not be used to 
                rent, lease, or buy land or buildings.
                    ``(B) Priority.--In making grants under 
                paragraph (1)(B), the Secretary shall give 
                priority to States that will use such grants to 
                achieve compliance with the requirements of the 
                Motor Carrier Safety Improvement Act of 1999, 
                including the amendments made by such Act.
            ``(3) Application.--In order to receive a grant 
        under this section, a State shall submit an application 
        for such grant that is in such form, and contains such 
        information, as the Secretary may require. The 
        application shall include the State's assessment of its 
        commercial drivers license program.
            ``(4) Maintenance of expenditures.--The Secretary 
        may make a grant to a State under this subsection only 
        if the State agrees that the total expenditure of 
        amounts of the State and political subdivisions of the 
        State, exclusive of amounts from the United States, for 
        the State's commercial driver's license program will be 
        maintained at a level at least equal to the average 
        level of that expenditure by the State and political 
        subdivisions of the State for the last 2 fiscal years 
        of the State ending before the date of enactment of 
        this section.
            ``(5) Government share.--The Secretary shall 
        reimburse a State under a grant made under this 
        subsection an amount that is not more than 100 percent 
        of the costs incurred by the State in a fiscal year in 
        complying with section 31311 and improving its 
        implementation of its commercial driver's license 
        program. In determining such costs, the Secretary shall 
        include in-kind contributions by the State. Amounts 
        required to be expended by the State under paragraph 
        (4) may not be included as part of the non-Federal 
        share of such costs.
    ``(b) High-Priority Activities.--
            ``(1) Grants for national concerns.--The Secretary 
        may make a grant to a State agency, local government, 
        or other person for 100 percent of the costs of 
        research, development, demonstration projects, public 
        education, and other special activities and projects 
        relating to commercial driver licensing and motor 
        vehicle safety that are of benefit to all jurisdictions 
        of the United States or are designed to address 
        national safety concerns and circumstances.
            ``(2) Funding.--The Secretary may deduct up to 10 
        percent of the amounts made available to carry out this 
        section for a fiscal year to make grants under this 
        subsection.
    ``(c) Emerging Issues.--The Secretary may designate up to 
10 percent of the amounts made available to carry out this 
section for a fiscal year for allocation to a State agency, 
local government, or other person at the discretion of the 
Secretary to address emerging issues relating to commercial 
driver's license improvements.
    ``(d) Apportionment.--Except as otherwise provided in 
subsection (c), all amounts made available to carry out this 
section for a fiscal year shall be apportioned to States 
according to criteria prescribed by the Secretary.''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 31312 
the following:

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

    (c) Amounts Withheld.--Subsections (a) and (b) of section 
31314 of such title are each amended by inserting ``up to'' 
after ``withhold''.

SEC. 4125. HOBBS ACT.

    (a) Jurisdiction of Court of Appeals Over Commercial Motor 
Vehicle Safety Regulation and Operators and Motor Carrier 
Safety.--Section 2342(3)(A) of title 28, United States Code, is 
amended by inserting before ``of title 49'' the following: ``, 
subchapter III of chapter 311, chapter 313, or chapter 315''.
    (b) Judicial Review.--Section 351(a) of title 49, United 
States Code, is amended by striking ``Federal Highway 
Administration'' and inserting ``Federal Motor Carrier Safety 
Administration''.
    (c) Authority To Carry Out Certain Transferred Duties and 
Powers.--Section 352 of title 49, United States Code, is 
amended by striking ``Federal Highway Administration'' and 
inserting ``Federal Motor Carrier Safety Administration''.

SEC. 4126. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS 
                    DEPLOYMENT.

    (a) In General.--The Secretary shall carry out a commercial 
vehicle information systems and networks program to--
            (1) improve the safety and productivity of 
        commercial vehicles and drivers; and
            (2) reduce costs associated with commercial vehicle 
        operations and Federal and State commercial vehicle 
        regulatory requirements.
    (b) Purpose.--The program shall advance the technological 
capability and promote the deployment of intelligent 
transportation system applications for commercial vehicle 
operations, including commercial vehicle, commercial driver, 
and carrier-specific information systems and networks.
    (c) Core Deployment Grants.--
            (1) In general.--The Secretary shall make grants to 
        eligible States for the core deployment of commercial 
        vehicle information systems and networks.
            (2) Amount of grants.--The maximum aggregate amount 
        the Secretary may grant to a Statefor the core 
deployment of commercial vehicle information systems and networks under 
this subsection and sections 5001(a)(5) and 5001(a)(6) of the 
Transportation Equity Act for the 21st Century (112 Stat. 420) may not 
exceed $2,500,000.
            (3) Use of funds.--Funds from a grant under this 
        subsection may only be used for the core deployment of 
        commercial vehicle information systems and networks. An 
        eligible State that has either completed the core 
        deployment of commercial vehicle information systems 
        and networks or completed such deployment before grant 
        funds are expended under this subsection may use the 
        grant funds for the expanded deployment of commercial 
        vehicle information systems and networks in the State.
    (d) Expanded Deployment Grants.--
            (1) In general.--For each fiscal year, from the 
        funds remaining after the Secretary has made grants 
        under subsection (c), the Secretary may make grants to 
        each eligible State, upon request, for the expanded 
        deployment of commercial vehicle information systems 
        and networks.
            (2) Eligibility.--Each State that has completed the 
        core deployment of commercial vehicle information 
        systems and networks in such State is eligible for an 
        expanded deployment grant under this subsection.
            (3) Amount of grants.--Each fiscal year, the 
        Secretary may distribute funds available for expanded 
        deployment grants equally among the eligible States, 
        but not to exceed $1,000,000 per State.
            (4) Use of funds.--A State may use funds from a 
        grant under this subsection only for the expanded 
        deployment of commercial vehicle information systems 
        and networks.
    (e) Eligibility.--To be eligible for a grant under this 
section, a State--
            (1) shall have a commercial vehicle information 
        systems and networks program plan approved by the 
        Secretary that describes the various systems and 
        networks at the State level that need to be refined, 
        revised, upgraded, or built to accomplish deployment of 
        core capabilities;
            (2) shall certify to the Secretary that its 
        commercial vehicle information systems and networks 
        deployment activities, including hardware procurement, 
        software and system development, and infrastructure 
        modifications--
                    (A) are consistent with the national 
                intelligent transportation systems and 
                commercial vehicle information systems and 
                networks architectures and available standards; 
                and
                    (B) promote interoperability and efficiency 
                to the extent practicable; and
            (3) shall agree to execute interoperability tests 
        developed by the Federal Motor Carrier Safety 
        Administration to verify that its systems conform with 
        the national intelligent transportation systems 
        architecture, applicable standards, and protocols for 
        commercial vehicle information systems and networks.
    (f) Federal Share.--The Federal share of the cost of a 
project payable from funds made available to carry out this 
section shall not exceed 50 percent. The total Federal share of 
the cost of a project payable from all eligible Federal sources 
shall not exceed 80 percent.
    (g) Definitions.--In this section, the following 
definitions apply:
            (1) Commercial vehicle information systems and 
        networks.--The term ``commercial vehicle information 
        systems and networks'' means the information systems 
        and communications networks that provide the capability 
        to--
                    (A) improve the safety of commercial motor 
                vehicle operations;
                    (B) increase the efficiency of regulatory 
                inspection processes to reduce administrative 
                burdens by advancing technology to facilitate 
                inspections and increase the effectiveness of 
                enforcement efforts;
                    (C) advance electronic processing of 
                registration information, driver licensing 
                information, fuel tax information, inspection 
                and crash data, and other safety information;
                    (D) enhance the safe passage of commercial 
                motor vehicles across the United States and 
                across international borders; and
                    (E) promote the communication of 
                information among the States and encourage 
                multistate cooperation and corridor 
                development.
            (2) Commercial motor vehicle operations.--The term 
        ``commercial motor vehicle operations''--
                    (A) means motor carrier operations and 
                motor vehicle regulatory activities associated 
                with the commercial motor vehicle movement of 
                goods, including hazardous materials, and 
                passengers; and
                    (B) with respect to the public sector, 
                includes the issuance of operating credentials, 
                the administration of motor vehicle and fuel 
                taxes, and roadside safety and border crossing 
                inspection and regulatory compliance 
                operations.
            (3) Core deployment.--The term ``core deployment'' 
        means the deployment of systems in a State necessary to 
        provide the State with the following capabilities:
                    (A) Safety information exchange to--
                            (i) electronically collect and 
                        transmit commercial motor vehicle and 
                        driver inspection data at a majority of 
                        inspection sites in the State;
                            (ii) connect to the safety and 
                        fitness electronic records system for 
                        access to interstate carrier and 
                        commercial motor vehicle data, 
                        summaries of past safety performance, 
                        and commercial motor vehicle 
                        credentials information; and
                            (iii) exchange carrier data and 
                        commercial motor vehicle safety and 
                        credentials information within the 
                        State and connect to such system for 
                        access to interstate carrier and 
                        commercial motor vehicle data.
                    (B) Interstate credentials administration 
                to--
                            (i) perform end-to-end processing, 
                        including carrier application, 
                        jurisdiction application processing, 
                        and credential issuance, of at least 
                        the international registration plan and 
                        international fuel tax agreement 
                        credentials and extend this processing 
                        to other credentials, including 
                        intrastate registration, vehicle 
                        titling, oversize vehicle permits, 
                        overweight vehicle permits, carrier 
                        registration, and hazardous materials 
                        permits;
                            (ii) connect to such plan and 
                        agreement clearinghouses; and
                            (iii) have at least 10 percent of 
                        the credentialing transaction volume in 
                        the State handled electronically and 
                        have the capability to add more 
                        carriers and to extend to branch 
                        offices where applicable.
                    (C) Roadside electronic screening to 
                electronically screen transponder-equipped 
                commercial vehicles at a minimum of one fixed 
                or mobile inspection site in the State and to 
                replicate this screening at other sites in the 
                State.
            (4) Expanded deployment.--The term ``expanded 
        deployment'' means the deployment of systems in a State 
        that exceed the requirements of a core deployment of 
        commercial vehicle information systems and networks, 
        improve safety and the productivity of commercial motor 
        vehicle operations, and enhance transportation 
        security.

SEC. 4127. OUTREACH AND EDUCATION.

    (a) In General.--The Secretary shall conduct, through any 
combination of grants, contracts, or cooperative agreements, an 
outreach and education program to be administered by the 
Federal Motor Carrier Safety Administration and the National 
Highway Traffic Safety Administration.
    (b) Program Elements.--The program shall include, at a 
minimum, the following:
            (1) A program to promote a more comprehensive and 
        national effort to educate commercial motor vehicle 
        drivers and passenger vehicle drivers about how 
        commercial motor vehicle drivers and passenger vehicle 
        drivers can more safely share the road with each other.
            (2) A program to promote enhanced traffic 
        enforcement efforts aimed at reducing the incidence of 
        the most common unsafe driving behaviors that cause or 
        contribute to crashes involving commercial motor 
        vehicles and passenger vehicles.
            (3) A program to establish a public-private 
        partnership to provide resources and expertise for the 
        development and dissemination of information relating 
        to sharing the road referred to in paragraphs (1) and 
        (2) to each partner's constituents and to the general 
        public through the use of brochures, videos, paid and 
        public advertisements, the Internet, and other media.
    (c) Federal Share.--The Federal share of a program or 
activity for which a grant is made under this section shall be 
100 percent of the cost of such program or activity.
    (d) Annual Report.--The Secretary shall prepare and 
transmit to Congress an annual report on the programs and 
activities carried out under this section. The final annual 
report shall be submitted not later than September 30, 2009.
    (e) Funding.--From amounts made available under section 
31104(i) of title 49, United States Code, the Secretary shall 
make available $1,000,000 to the Federal Motor Carrier Safety 
Administration, and $3,000,000 to the National Highway Traffic 
Safety Administration, for each of fiscal years 2006, 2007, 
2008, and 2009 to carry out this section (other than subsection 
(f)).
    (f) Study.--The Comptroller General shall update the 
Government Accountability Office's evaluation of the ``Share 
the Road Safely'' program to determine if it has achieved 
reductions in the number and severity of commercial motor 
vehicle crashes, including reductions in the number of deaths 
and the severity of injuries sustained in these crashes and 
shall report its updated evaluation to Congress no later than 
June 30, 2006.

SEC. 4128. SAFETY DATA IMPROVEMENT PROGRAM.

    (a) In General.--The Secretary shall make grants to States 
for projects and activities to improve the accuracy, 
timeliness, and completeness of commercial motor vehicle safety 
data reported to the Secretary.
    (b) Eligibility.--A State shall be eligible for a grant 
under this section in a fiscal year if the Secretary determines 
that the State has--
            (1) conducted a comprehensive audit of its 
        commercial motor vehicle safety data system within the 
        preceding 2 years;
            (2) developed a plan that identifies and 
        prioritizes its commercial motor vehicle safety data 
        needs and goals; and
            (3) identified performance-based measures to 
        determine progress toward those goals.
    (c) Federal Share.--The Federal share of a grant under this 
section shall be 80 percent of the cost of the activities for 
which the grant is made.
    (d) Biennial Report.--Not later 2 years after the date of 
enactment of this Act, and biennially thereafter, the Secretary 
shall transmit to Congress a report on the activities and 
results of the program carried out under this section, together 
with any recommendations the Secretary determines appropriate.

SEC. 4129. OPERATION OF COMMERCIAL MOTOR VEHICLES BY INDIVIDUALS WHO 
                    USE INSULIN TO TREAT DIABETES MELLITUS.

    (a) Revision of Final Rule.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary shall 
begin revising the final rule published in the Federal Register 
on September 3, 2003, relating to persons with diabetes, to 
allow individuals who use insulin to treat their diabetes to 
operate commercial motor vehicles in interstate commerce. The 
revised final rule shall provide for the individual assessment 
of applicants who use insulin to treat their diabetes and who 
are, except for their use of insulin, otherwise qualified under 
the Federal motor carrier safety regulations. The revised final 
rule shall be consistent with the criteria described in section 
4018 of the Transportation Equity Act for the 21st Century (49 
U.S.C. 31305 note) and shall conclude the rulemaking process in 
the Federal Motor Carrier Safety Administration docket relating 
to qualifications of drivers with diabetes.
    (b) No Period of Commercial Driving While Using Insulin 
Required for Qualification.--After the earlier of the date of 
issuance of the revised final rule under subsection (a) or the 
90th day following the date of enactment of this Act, the 
Secretary may not require individuals with insulin-treated 
diabetes mellitus who are applying for an exemption from the 
physical qualification standards to have experience operating 
commercial motor vehicles while using insulin in order to be 
exempted from the physical qualification standards to operate a 
commercial motor vehicle in interstate commerce.
    (c) Minimum Period of Insulin Use.--Subject to subsection 
(b), the Secretary shall require individuals with insulin-
treated diabetes mellitus to have a minimum period of insulin 
use to demonstrate stable control of diabetes before operating 
a commercial motor vehicle in interstate commerce. Such 
demonstration shall be consistent with the findings reported in 
July 2000, by the expert medical panel established by the 
Secretary, in ``A Report to Congress on the Feasibility of a 
Program to Qualify Individuals with Insulin-Treated Diabetes 
Mellitus to Operate Commercial Motor Vehicles in Interstate 
Commerce as Directed by the Transportation Equity Act for the 
21st Century''. For individuals who have been newly diagnosed 
with type 1 diabetes, the minimum period of insulin use may not 
exceed 2 months, unless directed by the treating physician. For 
individuals who have type 2 diabetes and are converting to 
insulin use, the minimum period of insulin use may not exceed 1 
month, unless directed by the treating physician.
    (d) Limitations.--Insulin-treated individuals may not be 
held by the Secretary to a higher standard of physical 
qualification in order to operate a commercial motor vehicle in 
interstate commerce than other individuals applying to operate, 
or operating, a commercial motor vehicle in interstate 
commerce; except to the extent that limited operating, 
monitoring, and medical requirements are deemed medically 
necessary under regulations issued by the Secretary.

SEC. 4130. OPERATORS OF VEHICLES TRANSPORTING AGRICULTURAL COMMODITIES 
                    AND FARM SUPPLIES.

    (a) Agricultural Exemption.--Section 229(a)(1) of the 
Federal Motor Carrier Safety Improvement Act of 1999 (as added 
by section 4115 of this Act), is amended to read as follows:
            ``(1) Transportation of agricultural commodities 
        and farm supplies.--Regulations prescribed by the 
        Secretary under sections 31136 and 31502 regarding 
        maximum driving and on-duty time for drivers used by 
        motor carriers shall not apply during planting and 
        harvest periods, as determined by each State, to 
        drivers transporting agricultural commodities or farm 
        supplies for agricultural purposes in a State if such 
        transportation is limited to an area within a 100 air 
        mile radius from the source of the commodities or the 
        distribution point for the farm supplies.''.
    (b) Review by the Secretary.--Section 229(c) of such Act is 
amended by striking ``paragraph (2)'' and inserting ``paragraph 
(1), (2), or (4)''.
    (c) Definitions.--Section 229(e) of such Act is amended by 
adding at the end the following:
            ``(7) Agricultural commodity.--The term 
        `agricultural commodity' means any agricultural 
        commodity, non-processed food, feed, fiber, or 
        livestock (including livestock as defined in section 
        602 of the Emergency Livestock Feed Assistance Act of 
        1988 (7 U.S.C. 1471) and insects).
            ``(8) Farm supplies for agricultural purposes.--The 
        term `farm supplies for agricultural purposes' means 
        products directly related to the growing or harvesting 
        of agricultural commodities during the planting and 
        harvesting seasons within each State, as determined by 
        the State, and livestock feed at any time of the 
        year.''.

SEC. 4131. MAXIMUM HOURS OF SERVICE FOR OPERATORS OF GROUND WATER WELL 
                    DRILLING RIGS.

    Section 229(a)(2) of the Motor Carrier Safety Improvement 
Act of 1999 (as added by section 4115 of this Act), is amended 
by adding at the end the following: ``Except as required in 
section 395.3 of title 49, Code of Federal Regulations, as in 
effect on the date of enactment of this sentence, no additional 
off-duty time shall be required in order to operate such 
vehicle.''.

SEC. 4132. HOURS OF SERVICE FOR OPERATORS OF UTILITY SERVICE VEHICLES.

    Section 229 of the Federal Motor Carrier Safety 
Improvements Act of 1999 (as added by section 4115 of this 
Act), is amended--
            (1) in subsection (a) by striking paragraph (4) and 
        inserting the following:
            ``(4) Operators of utility service vehicles.--
                    ``(A) Inapplicability of federal 
                regulations.--Such regulations shall not apply 
                to a driver of a utility service vehicle.
                    ``(B) Prohibition on state regulations.--A 
                State, a political subdivision of a State, an 
                interstate agency, or other entity consisting 
                of 2 or more States, shall not enact or enforce 
                any law, rule, regulation, or standard that 
                imposes requirements on a driver of a utility 
                service vehicle that are similar to the 
                requirements contained in such regulations.''; 
                and
            (2) in subsection (b) by striking ``Nothing'' and 
        inserting ``Except as provided in subsection (a)(4), 
        nothing''.

SEC. 4133. HOURS OF SERVICE RULES FOR OPERATORS PROVIDING 
                    TRANSPORTATION TO MOVIE PRODUCTION SITES .

    Notwithstanding sections 31136 and 31502 of title 49, 
United States Code, and any other provision of law, the maximum 
daily hours of service for an operator of a commercial motor 
vehicle providing transportation of property or passengers to 
or from a theatrical or television motion picture production 
site located within a 100 air mile radius of the work reporting 
location of such operator shall be those in effect under the 
regulations in effect under such sections on April 27, 2003.

SEC. 4134. GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE OPERATORS.

    (a) Establishment.--The Secretary shall establish a grant 
program for persons to train operators of commercial motor 
vehicles (as defined in section 31301 of title 49, United 
States Code). The purpose of the program shall be to train 
operators and future operators in the safe use of such 
vehicles.
    (b) Federal Share.--The Federal share of the cost for which 
a grant is made under this section shall be 80 percent.
    (c) Funding.--From amounts made available under section 
31104(i) of title 49, United States Code, the Secretary shall 
make available $1,000,000 for each of fiscal years 2005 through 
2009 to carry out this section.

SEC. 4135. CDL TASK FORCE.

    (a) In General.--The Secretary shall convene a task force 
to study and address current impediments and foreseeable 
challenges to the commercial driver's license program's 
effectiveness and measures needed to realize the full safety 
potential of the commercial driver's license program, including 
such issues as--
            (1) State enforcement practices;
            (2) operational procedures to detect and deter 
        fraud;
            (3) needed improvements for seamless information 
        sharing between States;
            (4) effective methods for accurately sharing 
        electronic data between States;
            (5) adequate proof of citizenship;
            (6) updated technology; and
            (7) timely notification from judicial bodies 
        concerning traffic and criminal convictions of 
        commercial drivers license holders.
    (b) Membership.--Members of the task force should include 
State motor vehicle administrators, organizations representing 
government agencies or officials, members of the Judicial 
Conference, representatives of the trucking industry, 
representatives of labor organizations, safety advocates, and 
other significant stakeholders.
    (c) Report.--Not later than 2 years after the date of 
enactment of this Act, the Secretary, on behalf of the task 
force, shall complete a report of the task forces findings and 
recommendations for legislative, regulatory, and enforcement 
changes to improve the commercial drivers license program and 
submit such the report to the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives.
    (d) Funding.--From the funds amounts made available by 
section 4101(c)(1), $200,000 shall be available for each of 
fiscal years 2006 and 2007 to carry out this section.

SEC. 4136. INTERSTATE VAN OPERATIONS.

    The Federal motor carrier safety regulations that apply to 
interstate operations of commercial motor vehicles designed to 
transport between 9 and 15 passengers (including the driver) 
shall apply to all interstate operations of such carriers 
regardless of the distance traveled.

SEC. 4137. DECALS.

    The Commercial Vehicle Safety Alliance may not restrict the 
sale of any inspection decal to the Federal Motor Carrier 
Safety Administration unless the Administration fails to meet 
its responsibilities under its memorandum of understanding with 
the Alliance (other than a failure due to the Administration's 
compliance with Federal law).

SEC. 4138. HIGH RISK CARRIER COMPLIANCE REVIEWS.

    From the funds authorized by section 31104(i) of title 49, 
United States Code, the Secretary shall ensure that compliance 
reviews are completed on motor carriers that have demonstrated 
through performance data that they pose the highest safety 
risk. At a minimum, a compliance review shall be conducted 
whenever a motor carrier is rated as category A or B for 2 
consecutive months.

SEC. 4139. FOREIGN COMMERCIAL MOTOR VEHICLES.

    (a) Operating Authority Enforcement Assistance for 
States.--
            (1) Training and outreach.--Not later than 180 days 
        after the date of enactment of this Act, the 
        Administrator of the Federal Motor Carrier Safety 
        Administration shall conduct outreach and provide 
        training as necessary to State personnel engaged in the 
        enforcement of Federal motor carrier safety regulations 
        to ensure their awareness of the process to be used for 
        verification of the operating authority of motor 
        carriers, including motor carriers of passengers, and 
        to ensure proper enforcement when motor carriers are 
        found to be in violation of operating authority 
        requirements.
            (2) Assessment.--The Inspector General of the 
        Department of Transportation may periodically assess 
        the implementation and effectiveness of the training 
        and outreach program.
    (b) Study of Foreign Commercial Motor Vehicles.--
            (1) Review.--Not later than 1 year after the date 
        of enactment of this Act, the Administratorshall 
conduct a review to determine the degree to which Canadian and Mexican 
commercial motor vehicles, including motor carriers of passengers, 
currently operating or expected to operate in the United States comply 
with the Federal motor vehicle safety standards.
            (2) Reports.--Not later than 1 year after the date 
        of enactment, the Adminstrator shall submit a report to 
        the Committee on Commerce, Science, and Transportation 
        of the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives 
        containing the findings and conclusions of the review. 
        Not later than 4 months after the date on which the 
        report is submitted to the Committees, the Inspector 
        General of the Department shall provide comments and 
        observations to the Committees on the scope and 
        methodology of the review.

SEC. 4140. SCHOOL BUS DRIVER QUALIFICATIONS AND ENDORSEMENT KNOWLEDGE 
                    TEST.

    (a) Recognition of Test.--The Secretary shall recognize any 
driver who passes a test approved by the Federal Motor Carrier 
Safety Administration as meeting the knowledge test requirement 
for a school bus endorsement under section 383.123 of title 49, 
Code of Federal Regulations.
    (b) Driver Qualifications.-- Section 383.123 of such title 
(as in effect on the date of enactment of this Act) shall not 
be in effect during the period beginning on the date of 
enactment of this Act and ending on September 30, 2006.

SEC. 4141. DRIVEAWAY SADDLEMOUNT VEHICLES.

    (a) Definition.--Section 31111(a) of tile 49, United States 
Code, is amended by adding at the end of the following:
            ``(4) Drive-away saddlemount with fullmount vehicle 
        transporter combination.--The term `drive-away 
        saddlemount with fullmount vehicle transporter 
        combination' means a vehicle combination designed and 
        specifically used to tow up to 3 trucks or truck 
        tractors, each connected by a saddle to the frame or 
        fifth-wheel of the forward vehicle of the truck or 
        truck tractor in front of it.''.
    (b) General Limitations.--Section 31111(b)(1) of such title 
is amended
            (1) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively; and
            (2) by inserting after subparagraph (C) the 
        following:
                    ``(D) imposes a vehicle length limitation 
                of not less than or more than 97 feet on a 
                driveaway saddlemount with fullmount vehicle 
                transporter combinations;''.

SEC. 4142. REGISTRATION OF MOTOR CARRIERS AND FREIGHT FORWARDERS.

    (a) Definitions Relating to Motor Carriers.--Paragraphs 
(6), (7), (12), and (13) of section 13102 of title 49, United 
States Code, are each amended by striking ``motor vehicle'' and 
inserting ``commercial motor vehicle (as defined in section 
31132)''.
    (b) Freight Forwarders.--Section 13903(a) of such title is 
amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Household goods.--The Secretary'';
            (2) by inserting ``of household goods'' after 
        ``freight forwarder''; and
            (3) by adding at the end the following:
            ``(2) Others.--The Secretary may register a person 
        to provide service subject to jurisdiction under 
        subchapter III of chapter 135 as a freight forwarder 
        (other than a freight forwarder of household goods) if 
        the Secretary finds that such registration is needed 
        for the protection of shippers and that the person is 
        fit, willing, and able to provide the service and to 
        comply with this part and applicable regulations of the 
        Secretary and Board.''.
    (c) Brokers.--Section 13904(a) of such title is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Household Goods.--The Secretary'';
            (2) by inserting ``of household goods'' after 
        ``broker''; and
            (3) by adding at the end the following:
            ``(2) Others.--The Secretary may register a person 
        to provide service subject to jurisdiction under 
        subchapter III of chapter 135 as a broker (other than a 
        broker of household goods) if the Secretary finds that 
        such registration is needed for the protection of 
        shippers and that the person is fit, willing, and able 
        to provide the service and to comply with this part and 
        applicable regulations of the Secretary and Board.''.

SEC. 4143. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

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

``Sec. 39. Commercial motor vehicles required to stop for inspections

    ``(a) A driver of a commercial motor vehicle (as defined in 
section 31132 of title 49) shall stop and submit to inspection 
of the vehicle, driver, cargo, and required records when 
directed to do so by an authorized employee of the Federal 
Motor Carrier Safety Administration of the Department of 
Transportation, at or in the vicinity of an inspection site. 
The driver shall not leave the inspection site until authorized 
to do so by an authorized employee.
    ``(b) A driver of a commercial motor vehicle, as defined in 
subsection (a), who knowingly fails to stop for inspection when 
directed to do so by an authorized employee of the 
Administration at or in the vicinity of an inspection site, or 
leaves the inspection site without authorization, shall be 
fined under this title or imprisoned not more than 1 year, or 
both.''.
    (b) Authority of FMCSA.--Chapter 203 of such title is 
amended by adding at the end the following:

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

    ``Authorized employees of the Federal Motor Carrier Safety 
Administration may direct a driver of a commercial motor 
vehicle (as defined in section 31132 of title 49) to stop for 
inspection of the vehicle, driver, cargo, and required records 
at or in the vicinity of an inspection site.''.
    (c) Clerical Amendments.--
            (1) The analysis for chapter 2 of such title is 
        amended by inserting after the item relating to section 
        38 the following:

``39. Commercial motor vehicles required to stop for inspections.''.

            (2) The analysis for chapter 203 of such title is 
        amended by inserting after the item relating to section 
        3063 the following:

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

SEC. 4144. MOTOR CARRIER SAFETY ADVISORY COMMITTEE.

    (a) Establishment and Duties.--The Secretary shall 
establish in the Federal Motor Carrier Safety Administration a 
motor carrier safety advisory committee. The committee shall--
            (1) provide advice and recommendations to the 
        Administrator of the Federal Motor Carrier Safety 
        Administration about needs, objectives, plans, 
        approaches, content, and accomplishments of the motor 
        carrier safety programs carried out by the 
        Administration; and
            (2) provide advice and recommendations to the 
        Administrator on motor carrier safety regulations.
    (b) Members, Chairman, Pay, and Expenses.--
            (1) In general.--The committee shall be composed of 
        not more than 20 members appointed by the Administrator 
        from among individuals who are not employees of the 
        Administration and who are specially qualified to serve 
        on the committee because of their education, training, 
        or experience. The members shall include 
        representatives of the motor carrier industry, safety 
        advocates, and safety enforcement officials. 
        Representatives of a single enumerated interest group 
        may not constitute a majority of the members of the 
        advisory committee.
            (2) Chairman.--The Administrator shall designate 
        the chairman of the committee.
            (3) Pay.--A member of the committee shall serve 
        without pay; except that the Administrator may allow a 
        member, when attending meetings of the committee or a 
        subcommittee of the committee, expenses authorized 
        under section 5703 of title 5, relating to per diem, 
        travel, and transportation expenses.
    (c) Support Staff, Information, and Services.--The 
Administrator shall provide support staff for the committee. On 
request of the committee, the Administrator shall provide 
information, administrative services, and supplies that the 
Administrator considers necessary for the committee to carry 
out its duties and powers.
    (d) Termination Date.--Notwithstanding the Federal Advisory 
Committee Act (5 U.S.C. App.), the advisory committee shall 
terminate on September 30, 2010.

SEC. 4145. TECHNICAL CORRECTIONS.

    (a) Intermodal Transportation Advisory Board.--Section 
5502(b) of title 49, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph 
        (4);
            (2) by striking the period at the end of paragraph 
        (5) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) the Federal Motor Carrier Safety 
        Administration.''.
    (b) Reference to Agency.--Section 31502(e) of such title is 
amended--
            (1) in paragraph (2) by striking ``Regional 
        Director of the Federal Highway Administration'' and 
        inserting ``Field Administrator of the Federal Motor 
        Carrier Safety Administration''; and
            (2) in paragraph (3) by striking ``Regional 
        Director'' and inserting ``Field Administrator''.

SEC. 4146. EXEMPTION DURING HARVEST PERIODS.

    Regulations issued by the Secretary under sections 31136 
and 31502 of title 49, United States Code, regarding maximum 
driving and on-duty time for a driver used by a motor carrier, 
shall not apply, beginning on the date of enactment of this Act 
and ending at the end of fiscal year 2009, for the 
transportation of grapes west of Interstate 81 in the State of 
New York if such transportation--
            (1) is during a harvesting period, as determined by 
        the State; and
            (2) is limited to a 150-air mile radius from where 
        the grapes are picked or distributed.

SEC. 4147. EMERGENCY CONDITION REQUIRING IMMEDIATE RESPONSE.

    Section 229 of the Motor Carrier Safety Improvement Act of 
1999 (as added and amended by section 4115 of this Act) is 
amended by adding at the end the following:
    ``(f) Emergency Condition Requiring Immediate Response.--
            ``(1) Propane or pipeline emergency.--A regulation 
        prescribed under section 31136 or 31502 of title 49, 
        United States Code, shall not apply to a driver of a 
        commercial motor vehicle which is used primarily in the 
        transportation of propane winter heating fuel or a 
        driver of a motor vehicle used to respond to a pipeline 
        emergency if such regulations would prevent the driver 
        from responding to an emergency condition requiring 
        immediate response.
            ``(2) Definition.--An emergency condition requiring 
        immediate response is any condition that, if left 
        unattended, is reasonably likely to result in immediate 
        serious bodily harm, death, or substantial damage to 
        property. In the case of propane such conditions shall 
        include (but are not limited to) the detection of gas 
        odor, the activation of carbon monoxide alarms, the 
        detection of carbon monoxide poisoning, and any real or 
        suspected damage to a propane gas system following a 
        severe storm or flooding. An `emergency condition 
        requiring an immediate response' does not include 
        requests to re-fill empty gas tanks. In the case of 
        pipelines such conditions include (but are not limited 
        to) indication of an abnormal pressure event, leak, 
        release or rupture.''.

SEC. 4148. SUBSTANCE ABUSE PROFESSIONALS.

    The Secretary shall conduct a rulemaking to permit a State 
licensed or certified marriage and family therapist, to act as 
a substance abuse professional under subpart O of part 40 of 
title 49, Code of Federal Regulations.

SEC. 4149. OFFICE OF INTERMODALISM.

    Section 5503 of title 49, United States Code, is amended--
            (1) in subsection (e) by inserting ``Amounts 
        reserved under section 5504(d) not awarded to States as 
        grants may be used by the Director to provide technical 
        assistance under this subsection.'' after 
        ``organizations.'';
            (2) by redesignating subsection (f) as subsection 
        (h); and
            (3) by inserting after subsection (e) the 
        following:
    ``(f) National Intermodal System Improvement Plan.--
            ``(1) In general.--The Director, in consultation 
        with the advisory board established under section 5502 
        and other public and private transportation interests, 
        shall develop a plan to improve the national intermodal 
        transportation system. The plan shall include--
                    ``(A) an assessment and forecast of the 
                national intermodal transportation system's 
                impact on mobility, safety, energy consumption, 
                the environment, technology, international 
                trade, economic activity, and quality of life 
                in the United States;
                    ``(B) an assessment of the operational and 
                economic attributes of each passenger and 
                freight mode of transportation and the optimal 
                role of each mode in the national intermodal 
                transportation system;
                    ``(C) a description of recommended 
                intermodal and multi-modal research and 
                development projects;
                    ``(D) a description of emerging trends that 
                have an impact on the national intermodal 
                transportation system;
                    ``(E) recommendations for improving 
                intermodal policy, transportation decision-
                making, and financing to maximize mobility and 
                the return on investment of Federal spending on 
                transportation;
                    ``(F) an estimate of the impact of current 
                Federal and State transportation policy on the 
                national intermodal transportation system; and
                    ``(G) specific near and long-term goals for 
                the national intermodal transportation system.
            ``(2) Progress reports.--The Director shall submit 
        an initial report on the plan to improve the national 
        intermodal transportation system 2 years after the date 
        of enactment of the Surface Transportation Safety 
        Improvement Act of 2005, and a follow-up report 2 years 
        after that, to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives. The progress report shall--
                    ``(A) describe progress made toward 
                achieving the plan's goals;
                    ``(B) describe challenges and obstacles to 
                achieving the plan's goals;
                    ``(C) update the plan to reflect changed 
                circumstances or new developments; and
                    ``(D) make policy and legislative 
                recommendations the Director believes are 
                necessary and appropriate to achieve the goals 
                of the plan.
            ``(3) Plan development funding.--Such sums as may 
        be necessary from the administrative expenses of the 
        Research and Innovative Technology Administration shall 
        be reserved by the Secretary of Transportation each 
        year for the purpose of completing and updating the 
        plan to improve the national intermodal transportation 
        plan.
    ``(g) Impact Measurement Methodology; Impact Review.--The 
Director and the Director of the Bureau of Transportation 
Statistics shall jointly--
            ``(1) develop, in consultation with the modal 
        administrations, and State and local planning 
        organizations, common measures to compare 
        transportation investment decisions across the various 
        modes of transportation; and
            ``(2) formulate a methodology for measuring the 
        impact of intermodal transportation on--
                    ``(A) the environment;
                    ``(B) public health and welfare;
                    ``(C) energy consumption;
                    ``(D) the operation and efficiency of the 
                transportation system;
                    ``(E) congestion, including congestion at 
                the Nation's ports; and
                    ``(F) the economy and employment.
    ``(h) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary of Transportation such sums 
as may be necessary for fiscal years 2006 through 2009 to carry 
out this chapter.''.

               Subtitle B--Household Goods Transportation

SEC. 4201. SHORT TITLE.

    This subtitle may be cited as the ``Househood Goods Mover 
Oversight Enforcement and Reform Act of 2005''

SEC. 4202. DEFINITIONS; APPLICATION OF PROVISIONS.

    (a) Terms Used in This Chapter.--In this subtitle, the 
terms ``carrier'', ``household goods'', ``motor carrier'', 
``Secretary'', and ``transportation'' have the meaning given to 
such terms in section 13102 of title 49, United States Code.
    (b) Household Goods Motor Carrier and Individual Shipper in 
Part B of Subtitle IV of Title 49.--Section 13102 of title 49, 
United States Code (as amended by section 4141 of this Act) is 
amended by redesignating paragraphs (12) through (24) as 
paragraphs (14) through (26) and by inserting after paragraph 
(11) the following:
            ``(12) Household goods motor carrier.--
                    ``(A) In general.--The term `household 
                goods motor carrier' means a motor carrier 
                that, in the ordinary course of its business of 
                providing transportation of household goods, 
                offers some or all of the following additional 
                services:
                            ``(i) Binding and nonbinding 
                        estimates.
                            ``(ii) Inventorying.
                            ``(iii) Protective packing and 
                        unpacking of individual items at 
                        personal residences.
                            ``(iv) Loading and unloading at 
                        personal residences.
                    ``(B) Inclusion.--The term includes any 
                person that is considered to be a household 
                goods motor carrier under regulations, 
                determinations, and decisions of the Federal 
                Motor Carrier Safety Administration that are in 
                effect on the date of enactment of the 
                Household Goods Mover Oversight Enforcement and 
                Reform Act of 2005.
                    ``(C) Limited service exclusion.--The term 
                does not include a motor carrier when the motor 
                carrier provides transportation of household 
                goods in containers or trailers that are 
                entirely loaded and unloaded by an individual 
                (other than an employee or agent of the motor 
                carrier).
            ``(13) Individual shipper.--The term `individual 
        shipper' means any person who--
                    ``(A) is the shipper, consignor, or 
                consignee of a household goods shipment;
                    ``(B) is identified as the shipper, 
                consignor, or consignee on the face of the bill 
                of lading;
                    ``(C) owns the goods being transported; and
                    ``(D) pays his or her own tariff 
                transportation charges.''.
    (c) Application of Certain Provisions of Law.--The 
provisions of title 49, United States Code, and this subtitle 
(including any amendments made by this subtitle), that relate 
to the transportation of household goods apply only to a 
household goods motor carrier (as defined in section 13102 of 
title 49, United States Code).

SEC. 4203. PAYMENT OF RATES.

    Section 13707(b) of title 49, United States Code, is 
amended by adding at the end the following:
            ``(3) Shipments of household goods.--
                    ``(A) In general.--A carrier providing 
                transportation of a shipment of household goods 
                shall give up possession of the household goods 
                being transported at the destination upon 
                payment of--
                            ``(i) 100 percent of the charges 
                        contained in a binding estimate 
                        provided by the carrier;
                            ``(ii) not more than 110 percent of 
                        the charges contained in a nonbinding 
                        estimate provided by the carrier; or
                            ``(iii) in the case of a partial 
                        delivery of the shipment, the prorated 
                        percentage of the charges calculated in 
                        accordance with subparagraph (B).
                    ``(B) Calculation of prorated charges.--For 
                purposes of subparagraph (A)(iii), the prorated 
                percentage of the charges shall be the 
                percentage of the total charges due to the 
                carrier as described in clause (i) or (ii) of 
                subparagraph (A) that is equal to the 
                percentage of the weight of that portion of the 
                shipment delivered to the total weight of the 
                shipment.
                    ``(C) Post-contract services.--Subparagraph 
                (A) does not apply to additional services 
                requested by a shipper after the contract of 
                service is executed that were not included in 
                the estimate.
                    ``(D) Impracticable operations.--
                Subparagraph (A) does not apply to 
                impracticable operations, as defined by the 
                applicable carrier tariff, except that the 
                charges collected at delivery for such 
                operations shall not exceed 15 percent of all 
                other charges due at delivery. Any remaining 
                charges due shall be paid within 30 days after 
                the carrier presents its freight bill.''.

SEC. 4204. ADDITIONAL REGISTRATION REQUIREMENTS FOR MOTOR CARRIERS OF 
                    HOUSEHOLD GOODS.

    Section 13902(a) of title 49, United States Code, is 
amended--
            (1) by striking paragraphs (2) and (3);
            (2) by redesignating paragraph (4) as paragraph 
        (5);
            (3) by inserting after paragraph (1) the following:
            ``(2) Additional registration requirements for 
        household goods motor carriers.--In addition to meeting 
        the requirements of paragraph (1), the Secretary may 
        register a person to provide transportation of 
        household goods as a household goods motor carrier only 
        after that person--
                    ``(A) provides evidence of participation in 
                an arbitration program and provides a copy of 
                the notice of the arbitration program as 
                required by section 14708(b)(2);
                    ``(B) identifies its tariff and provides a 
                copy of the notice of the availability of that 
                tariff for inspection as required by section 
                13702(c);
                    ``(C) provides evidence that it has access 
                to, has read, is familiar with, and will 
                observe all applicable Federal laws relating to 
                consumer protection, estimating, consumers' 
                rights and responsibilities, and options for 
                limitations of liability for loss and damage; 
                and
                    ``(D) discloses any relationship involving 
                common stock, common ownership, common 
                management, or common familial relationships 
                between that person and any other motor 
                carrier, freight forwarder, or broker of 
                household goods within 3 years of the proposed 
                date of registration.
            ``(3) Consideration of evidence; findings.--The 
        Secretary shall consider, and, to the extent 
        applicable, make findings on any evidence demonstrating 
        that the registrant is unable to comply with any 
        applicable requirement of paragraph (1) or, in the case 
        of a registrant to which paragraph (2) applies, 
        paragraph (1) or (2).
            ``(4) Withholding.--If the Secretary determines 
        that a registrant under this section does not meet, or 
        is not able to meet, any requirement of paragraph (1) 
        or, in the case of a registrant to which paragraph (2) 
        applies, paragraph (1) or (2), the Secretary shall 
        withhold registration.''; and
            (4) by adding at the end of paragraph (5) (as 
        redesignated by paragraph (2) of this section) ``In the 
        case of a registration for the transportation of 
        household goods as a household goods motor carrier, the 
        Secretary may also hear a complaint on the ground that 
        the registrant fails or will fail to comply with the 
        requirements of paragraph (2) of this subsection.''.

SEC. 4205. HOUSEHOLD GOODS CARRIER OPERATIONS.

    Section 14104(b) of title 49, United States Code, is 
amended--
            (1) by redesignating paragraph (2) as paragraph 
        (3); and
            (2) by striking paragraph (1) and inserting the 
        following:
            ``(1) Required to be in writing.--
                    ``(A) In general.--Except as otherwise 
                provided in this subsection, every motor 
                carrier providing transportation of household 
                goods described in section 13102(10)(A) as a 
                household goods motor carrier and subject to 
                jurisdiction under subchapter I of chapter 135 
                shall conduct a physical survey of the 
                household goods to be transported on behalf of 
                a prospective individual shipper and shall 
                provide the shipper with a written estimate of 
                charges for the transportation and all related 
                services.
                    ``(B) Waiver.--A shipper may elect to waive 
                a physical survey under this paragraph by 
                written agreement signed by the shipper before 
                the shipment is loaded. A copy of the waiver 
                agreement must be retained as an addendum to 
                the bill of lading and shall be subject to the 
                same record inspection and preservation 
                requirements of the Secretary as are applicable 
                to bills of lading.
                    ``(C) Estimate.--
                            ``(i) In general.--Notwithstanding 
                        a waiver under subparagraph (B), a 
                        carrier's statement of charges for 
                        transportation must be submitted to the 
                        shipper in writing and must indicate 
                        whether it is binding or nonbinding. 
                        The written estimate shall be based on 
                        a physical survey of the household 
                        goods if the household goods are 
                        located within a 50-mile radius of the 
                        location of the carrier's household 
                        goods agent preparing the estimate.
                            ``(ii) Binding.--A binding estimate 
                        under this paragraph must indicate that 
                        the carrier and shipper are bound by 
                        such charges. The carrier may impose a 
                        charge for providing a written binding 
                        estimate.
                            ``(iii) Nonbinding.--A nonbinding 
                        estimate under this paragraph must 
                        indicate that the actual charges will 
                        be based upon the actual weight of the 
                        individual shipper's shipment and the 
                        carrier's lawful tariff charges. The 
                        carrier may not impose a charge for 
                        providing a nonbinding estimate.
            ``(2) Other information.--At the time that a motor 
        carrier provides the written estimate required by 
        paragraph (1), the motor carrier shall provide the 
        shipper a copy of the Department of Transportation 
        publication FMCSA-ESA-03-005 (or its successor 
        publication) entitled `Ready to Move?'. Before the 
        execution of a contract for service, the motor carrier 
        shall provide the shipper copy of the Department of 
        Transportation publication OCE 100, entitled `Your 
        Rights and Responsibilities When You Move' required by 
        section 375.213 of title 49, Code of Federal 
        Regulations (or any successor regulation). ''.

SEC. 4206. ENFORCEMENT OF REGULATIONS RELATED TO TRANSPORTATION OF 
                    HOUSEHOLD GOODS.

    (a) Nonpreemption of Intrastate Transportation of Household 
Goods.--Section 14501(c)(2)(B) of title 49, United States Code, 
is amended by inserting ``intrastate'' before 
``transportation''.
    (b) Enforcement of Federal Law With Respect to Interstate 
Household Goods Carriers.--
            (1) In general.--Chapter 147 of such title is 
        amended by adding at the end the following:

``Sec. 14710. Enforcement of Federal laws and regulations with respect 
                    to transportation of household goods

    ``(a) Enforcement by States.--Notwithstanding any other 
provision of this title, a State authority may enforce the 
consumer protection provisions of this title that apply to 
individual shippers, as determined by the Secretary, and are 
related to the delivery and transportation of household goods 
in interstate commerce. Any fine or penalty imposed on a 
carrier in a proceeding under this subsection shall be paid, 
notwithstanding any other provision of law, to and retained by 
the State.
    ``(b) Notice.--The State shall serve written notice to the 
Secretary or the Board, as the case may be, of any civil action 
under subsection (a) prior to initiating such civil action. The 
notice shall include a copy of the complaint to be filed to 
initiate such civil action, except that if it is not feasible 
for the State to provide such prior notice, the State shall 
provide the notice immediately upon instituting such civil 
action.
    ``(c) Enforcement Assistance Outreach Plan.--The Federal 
Motor Carrier Safety Administration shall implement an outreach 
plan to enhance the coordination and effective enforcement of 
Federal laws and regulations with respect to transportation of 
household goods between and among Federal and State law 
enforcement and consumer protection authorities. The outreach 
shall include, as appropriate, local law enforcement and 
consumer protection authorities.
    ``(d) State Authority Defined.--In this section, the term 
`State authority' means an agency of a State that has authority 
under the laws of the State to regulate the intrastate movement 
of household goods.

``Sec. 14711. Enforcement by State attorneys general

    ``(a) In General.--A State, as parens patriae, may bring a 
civil action on behalf of its residents in an appropriate 
district court of the United States to enforce the consumer 
protection provisions of this title that apply to individual 
shippers, as determined by the Secretary, and are related to 
the delivery and transportation of household goods by a 
household goods motor carrier subject to jurisdiction under 
subchapter I of chapter 135 or regulations or orders of the 
Secretary or the Board issued under such provisions or to 
impose the civil penalties authorized by this part or such 
regulations or orders, whenever the attorney general of the 
State has reason to believe that the interests of the residents 
of the State have been or are being threatened or adversely 
affected by a carrier or broker providing transportation 
subject to jurisdiction under subchapter I or III of chapter 
135 or a foreign motor carrier providing transportation that is 
registered under section 13902 and is engaged in household 
goods transportation that violates this part or a regulation or 
order of the Secretary or Board, as applicable, issued under 
this part.
    ``(b) Notice and Consent.--
            ``(1) In general.--The State shall serve written 
        notice to the Secretary or the Board, as the case may 
        be, of any civil action under subsection (a) prior to 
        initiating such civil action. The notice shall include 
        a copy of the complaint to be filed to initiate such 
        civil action.
            ``(2) Conditions.--The Secretary or the Board--
                    ``(A) shall review the initiation of a 
                civil action under this section by a State if--
                            ``(i) the carrier or broker that is 
                        the subject of the action is not 
                        registered with the Department of 
                        Transportation;
                            ``(ii) the license of the carrier 
                        or broker for failure to file proof of 
                        required bodily injury or cargo 
                        liability insurance is pending, or the 
                        license has been revoked for any other 
                        reason by the Department;
                            ``(iii) the carrier is not rated or 
                        has received a conditional or 
                        unsatisfactory safety rating by the 
                        Department; or
                            ``(iv) the carrier or broker has 
                        been licensed with the Department for 
                        less than 5 years; and
                    ``(B) may review if the carrier or broker 
                fails to meet criteria developed by the 
                Secretary that are consistent with this 
                section.
            ``(3) Congressional notification.--The Secretary 
        shall notify the Committee on Commerce, Science, and 
        Transportation, of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives of any criteria developed by the 
        Secretary under paragraph (2)(B).
            ``(4) 60-day deadline.--The Secretary or the Board 
        shall be considered to have consented to any civil 
        action of a State under this section if the Secretary 
        or the Board has taken no action with respect to the 
        notice within 60 calendar days after the date on which 
        the Secretary or the Board received notice under 
        paragraph (1).
    ``(c) Authority to Intervene.--Upon receiving the notice 
required by subsection (b), the Secretary or board may 
intervene in a civil action of a State under this section and 
upon intervening--
            ``(1) be heard on all matters arising in such civil 
        action; and
            ``(2) file petitions for appeal of a decision in 
        such civil actions.
    ``(d) Construction.--For purposes of bringing any civil 
action under subsection (a), nothing in this section shall--
            ``(1) convey a right to initiate or maintain a 
        class action lawsuit in the enforcement of a Federal 
        law or regulation; or
            ``(2) prevent the attorney general of a State from 
        exercising the powers conferred on the attorney general 
        by the laws of such State to conduct investigations or 
        to administer oaths or affirmations or to compel the 
        attendance of witnesses or the production of 
        documentary and other evidence.
    ``(e) Venue; Service of Process.--In a civil action brought 
under subsection (a)--
            ``(1) the venue shall be a Federal judicial 
        district in which--
                    ``(A) the carrier, foreign motor carrier, 
                or broker operates;
                    ``(B) the carrier, foreign motor carrier, 
                or broker was authorized to provide 
                transportation at the time the complaint arose; 
                or
                    ``(C) where the defendant in the civil 
                action is found;
            ``(2) process may be served without regard to the 
        territorial limits of the district or of the State in 
        which the civil action is instituted; and
            ``(3) a person who participated with a carrier or 
        broker in an alleged violation that is being litigated 
        in the civil action may be joined in the civil action 
        without regard to the residence of the person.
    ``(f) Enforcement of State Law.--Nothing contained in this 
section shall prohibit an authorized State official from 
proceeding in State court to enforce a criminal statute of such 
State.''.
    (c) Clerical Amendment.--The analysis for such chapter 147 
is amended by inserting after the item relating to section 
14709 the following:

``14710. Enforcement of Federal laws and regulations with respect to 
          transportation of household goods.
``14711. Enforcement by State attorneys general.''.

SEC. 4207. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF LADING.

    Section 14706(f) of title 49, United States Code, is 
amended--
            (1) by striking ``A carrier'' and inserting the 
        following:
            ``(1) In general.--A carrier''; and
            (2) by adding at the end the following:
            ``(2) Full value protection obligation.--Unless the 
        carrier receives a waiver in writing under paragraph 
        (3), a carrier's maximum liability for household goods 
        that are lost, damaged, destroyed, or otherwise not 
        delivered to the final destination is an amount equal 
        to the replacement value of such goods, subject to a 
        maximum amount equal to the declared value of the 
        shipment and to rules issued by the Surface 
        Transportation Board and applicable tariffs.
            ``(3) Application of rates.--The released rates 
        established by the Board under paragraph (1) (commonly 
        known as `released rates') shall not apply to the 
        transportation of household goods by a carrier unless 
        the liability of the carrier for the full value of such 
        household goods under paragraph (2) is waived, in 
        writing, by the shipper.''.

SEC. 4208. ARBITRATION REQUIREMENTS.

    (a) Offering Shippers Arbitration.--Section 14708(a) of 
title 49, United States Code, is amended by inserting before 
the period at the end the following: ``and to determine whether 
carrier charges, in addition to those collected at delivery, 
must be paid by shippers for transportation and services 
related to transportation of household goods''.
    (b) Threshold for Binding Arbitration.--Section 14708(b)(6) 
of such title is amended by striking ``$5,000'' each place it 
appears and inserting ``$10,000''.
    (c) Deadline for Decision.--Section 14708(b)(8) of such 
title is amended in last sentence--
            (1) by striking ``and''; and
            (2) by inserting after ``for damages'' the 
        following: ``, and an order requiring the payment of 
        additional carrier charges''.
    (d) Attorney's Fees to Shippers.--Section 14708(d)(3) of 
such title is amended--
            (1) by redesignating subparagraph (B) as 
        subparagraph (C); and
            (2) by striking ``(3)(A) a decision resolving the 
        dispute was not'' and inserting the following:
            ``(3)(A) the shipper was not advised by the carrier 
        during the claim settlement process that a dispute 
        settlement program was available to resolve the 
        dispute;
            ``(B) a decision resolving the dispute was not''.

SEC. 4209. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS BROKERS AND 
                    UNAUTHORIZED TRANSPORTATION.

    Section 14901(d) of title 49, United States Code, is 
amended--
            (1) by striking ``If a carrier'' and inserting the 
        following:
            ``(1) In general.--If a carrier''; and
            (2) by adding at the end the following:
            ``(2) Estimate of broker without carrier 
        agreement.--If a broker for transportation of household 
        goods subject to jurisdiction under subchapter I of 
        chapter 135 makes an estimate of the cost of 
        transporting any such goods before entering into an 
        agreement with a carrier to provide transportation of 
        household goods subject to such jurisdiction, the 
        broker is liable to the United States for a civil 
        penalty of not less than $10,000 for each violation.
            ``(3) Unauthorized transportation.--If a person 
        provides transportation of household goods subject to 
        jurisdiction under subchapter I of chapter 135 or 
        provides broker services for such transportation 
        without being registered under chapter 139 to provide 
        such transportation or services as a motor carrier or 
        broker, as the case may be, such person is liable to 
        the United States for a civil penalty of not less than 
        $25,000 for each violation.''.

SEC. 4210. PENALTIES FOR HOLDING HOUSEHOLD GOODS HOSTAGE.

    (a) In General.--Chapter 149 of title 49, United States 
Code, is amended by adding at the end the following:

``Sec. 14915. Penalties for failure to give up possession of household 
                    goods

    ``(a) Civil Penalty.--
            ``(1) In general.--Whoever is found holding a 
        household goods shipment hostage is liable to the 
        United States for a civil penalty of not less than 
        $10,000 for each violation.
            ``(2) Each day, a separate violation.--Each day a 
        carrier is found to have failed to give up possession 
        of household goods may constitute a separate violation.
            ``(3) Suspension.--If the person found holding a 
        shipment hostage is a carrier or broker, the Secretary 
        may suspend for a period of not less than 12 months nor 
        more than 36 months the registration of such carrier or 
        broker under chapter 139. The force and effect of such 
        suspension of a carrier or broker shall extend to and 
        include any carrier or broker having the same ownership 
        or operational control as the suspended carrier or 
        broker.
    ``(b) Criminal Penalty.--Whoever has been convicted of 
having failed to give up possession of household goods shall be 
fined under title 18 or imprisoned for not more than 2 years, 
or both.
    ``(c) Failure to Give Up Possession of Household Goods 
Defined.--For purposes of this section, the term `failed to 
give up possession of household goods' means the knowing and 
willful failure, in violation of a contract, to deliver to, or 
unload at, the destination of a shipment of household goods 
that is subject to jurisdiction under subchapter I or III of 
chapter 135 of this title, for which charges have been 
estimated by the motor carrier providing transportation of such 
goods, and for which the shipper has tendered a payment 
described in clause (i), (ii), or (iii) of section 
13707(b)(3)(A).''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by adding at the end the following:

``14915. Penalties for failure to give up possession of household 
          goods.''.

SEC. 4211. CONSUMER HANDBOOK ON DOT WEB SITE.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary shall take such action as may be necessary 
to ensure that publication ESA 03005 of the Federal Motor 
Carrier Safety Administration entitled ``Your Rights and 
Responsibilities When You Move'', is prominently displayed, and 
available in language that is readily understandable by the 
general public, on the Web site of the Department of 
Transportation.

SEC. 4212. RELEASE OF HOUSEHOLD GOODS BROKER INFORMATION.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary shall modify the regulations contained in 
part 375 of title 49, Code of Federal Regulations, to require a 
broker that is subject to such regulations to provide shippers 
with the following information whenever they have contact with 
a shipper or potential shipper:
            (1) The Department of Transportation number of the 
        broker.
            (2) The ESA 03005 publication referred to in 
        section 4211 of this Act.
            (3) A list of all motor carriers providing 
        transportation of household goods used by the broker 
        and a statement that the broker is not a motor carrier 
        providing transportation of household goods.

SEC. 4213. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND PROCEDURES TO 
                    ENHANCE FEDERAL-STATE RELATIONS.

    (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a working 
group of State attorneys general, State consumer protection 
administrators, and Federal and local law enforcement officials 
for the purpose of developing practices and procedures to 
enhance the Federal-State partnership in enforcement efforts, 
exchange of information, and coordination of enforcement 
efforts with respect to interstate transportation of household 
goods and of making legislative and regulatory recommendations 
to the Secretary concerning such enforcement efforts.
    (b) Consultation.--In carrying out subsection (a), the 
working group shall consult with industries involved in the 
transportation of household goods, the public, and other 
interested parties.
    (c) Federal Advisory Committee Act Exemption.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
working group established under subsection (a).
    (d) Termination Date.--The working group shall remain in 
effect until September 30, 2009.

SEC. 4214. CONSUMER COMPLAINT INFORMATION.

    (a) Establishment of System.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall--
            (1) establish (A) a system for filing and logging 
        consumer complaints relating to household goods motor 
        carriers for the purpose of compiling or linking 
        complaint information gathered by the Department of 
        Transportation and the States with regard to such 
        carriers, (B) a database of the complaints, and (C) a 
        procedure for the public to have access, subject to 
        section 552(a) of title 5, United States Code, to 
        aggregated information and for carriers to challenge 
        duplicate or fraudulent information in the database;
            (2) issue regulations requiring each motor carrier 
        of household goods to submit on a quarterly basis a 
        report summarizing--
                    (A) the number of shipments that originate 
                and are delivered for individual shippers 
                during the reporting period by the carrier;
                    (B) the number and general category of 
                complaints lodged by consumers with the 
                carrier;
                    (C) the number of claims filed with the 
                carrier for loss and damage in excess of $500;
                    (D) the number of such claims resolved 
                during the reporting period;
                    (E) the number of such claims declined in 
                the reporting period; and
                    (F) the number of such claims that are 
                pending at the close of the reporting period; 
                and
            (3) develop a procedure to forward a complaint, 
        including the motor carrier bill of lading number, if 
        known, related to the complaint to a motor carrier 
        named in such complaint and to an appropriate State 
        authority (as defined in section 14710(d) of title 49, 
        United States Code) in the State in which the 
        complainant resides.
    (b) Use of Information.--The Secretary shall consider 
information in the data base established under subsection (a) 
in its household goods compliance and enforcement program.

SEC. 4215. REVIEW OF LIABILITY OF CARRIERS.

    (a) Review.--Not later than 1 year after the date of 
enactment of this Act, the Surface Transportation Board shall 
complete a review of the current Federal regulations regarding 
the level of liability protection provided by motor carriers 
that provide transportation of household goods and revise such 
regulations, if necessary, to provide enhanced protection in 
the case of loss or damage.
    (b) Determinations.--The review required by subsection (a) 
shall include a determination of--
            (1) whether the current regulations provide 
        adequate protection;
            (2) the benefits of purchase by a shipper of 
        insurance to supplement the carrier's limitations on 
        liability; and
            (3) whether there are abuses of the current 
        regulations that leave the shipper unprotected in the 
        event of loss and damage to a shipment of household 
        goods.

SEC. 4216. APPLICATION OF STATE CONSUMER PROTECTION LAWS TO CERTAIN 
                    HOUSEHOLD GOODS CARRIERS.

    (a) Study.--The Comptroller General shall conduct a study 
on the current consumer protection authorities and actions of 
the Department of Transportation and the impact on shippers and 
carriers of household goods involved in interstate 
transportation of allowing State attorneys general to apply 
State consumer protection laws to such transportation.
    (b) Matters to Be Considered.--In conducting the study, the 
Comptroller General shall consider, at a minimum--
            (1) the level of consumer protection being provided 
        to consumers through Federal household goods 
        regulations and how household goods regulations 
        relating to consumer protection compare to regulations 
        relating to consumer protection for other modes of 
        transportation regulated by the Department of 
        Transportation;
            (2) the history and background of State enforcement 
        of State consumer protection laws on household goods 
        carriers providing intrastate transportation and what 
        effects such laws have on the ability of intrastate 
        household goods carriers to operate;
            (3) what operational impacts, if any, would result 
        on household goods carriers engaged in interstate 
        commerce being subject to the State consumer protection 
        laws; and
            (4) the potential for States to regulate rates or 
        other business operations if State consumer protection 
        laws applied to interstate household goods movements.
    (c) Consultation.--In conducting the study, the Comptroller 
General shall consult with the Secretary, State attorneys 
general, consumer protection agencies, and the household goods 
industry.
    (d) Report.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General shall transmit 
to the Committee of Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science 
and Transportation of the Senate a report on the results of the 
study.

          Subtitle C--Unified Carrier Registration Act of 2005

SEC. 4301. SHORT TITLE.

    This subtitle may be cited as the ``Unified Carrier 
Registration Act of 2005''.

SEC. 4302. RELATIONSHIP TO OTHER LAWS.

    Except as provided in section 14504 of title 49, United 
States Code, and sections 14504a and 14506 of title 49, United 
States Code, as added by this subtitle, this subtitle is not 
intended to prohibit any State or any political subdivision of 
any State from enacting, imposing, or enforcing any law or 
regulation with respect to a motor carrier, motor private 
carrier, broker, freight forwarder, or leasing company that is 
not otherwise prohibited by law.

SEC. 4303. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS.

    (a) Persons Registered to Provide Transportation or Service 
as a Motor Carrier or Motor Private Carrier.--Section 13905 of 
title 49, United States Code, is amended--
            (1) by redesignating subsections (b), (c), (d), and 
        (e) as subsections (c), (d), (e), and (f), 
        respectively; and
            (2) by inserting after subsection (a) the 
        following:
    ``(b) Person Registered With Secretary.--
            ``(1) In general.--Except as provided in paragraph 
        (2), any person having registered with the Secretary to 
        provide transportation or service as a motor carrier or 
        motor private carrier under this title, as in effect on 
        January 1, 2005, but not having registered pursuant to 
        section 13902(a), shall be treated, for purposes of 
        this part, to be registered to provide such 
        transportation or service for purposes of sections 
        13908 and 14504a.
            ``(2) Exclusively intrastate operators.--Paragraph 
        (1) does not apply to a motor carrier or motor private 
        carrier (including a transporter of waste or recyclable 
        materials) engaged exclusively in intrastate 
        transportation operations.''.
    (b) Security Requirement.--Section 13906(a) of such title 
is amended--
            (1) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Security requirement.--Not later than 120 
        days after the date of enactment of the Unified Carrier 
        Registration Act of 2005, any person, other than a 
        motor private carrier, registered with the Secretary to 
        provide transportation or service as a motor carrier 
        under section 13905(b) shall file with the Secretary a 
        bond, insurance policy, or other type of security 
        approved by the Secretary, in an amount not less than 
        required by sections 31138 and 31139.''.
    (c) Termination of Transition Rule.--Section 13902 of such 
title is amended--
            (1) by adding at the end of subsection (d) the 
        following:
            ``(3) Termination.--This subsection shall cease to 
        be in effect on the transition termination date.''; and
            (2) by redesignating subsection (f) as subsection 
        (g), and inserting after subsection (e) the following:
    ``(f) Modification of Carrier Registration.--
            ``(1) In general.--On and after the transition 
        termination date, the Secretary--
                    ``(A) may not register a motor carrier 
                under this section as a motor common carrier or 
                a motor contract carrier;
                    ``(B) shall register applicants under this 
                section as motor carriers; and
                    ``(C) shall issue any motor carrier 
                registered under this section after that date a 
                motor carrier certificate of registration that 
                specifies whether the holder of the certificate 
                may provide transportation of persons, 
                household goods, other property, or any 
                combination thereof.
            ``(2) Pre-existing certificates and permits.--The 
        Secretary shall redesignate any motor carrier 
        certificate or permit issued before the transition 
        termination date as a motor carrier certificate of 
        registration. On and after the transition termination 
        date, any person holding a motor carrier certificate of 
        registration redesignated under this paragraph may 
        provide both contract carriage (as defined in section 
        13102(4)(B)) and transportation under terms and 
        conditions meeting the requirements of section 
        13710(a)(1). The Secretary may not, pursuant to any 
        regulation or form issued before or after the 
        transition termination date, make any distinction among 
        holders of motor carrier certificates of registration 
        on the basis of whether the holder would have been 
        classified as a common carrier or as a contract carrier 
        under--
                    ``(A) subsection (d) of this section, as 
                that section was in effect before the 
                transition termination date; or
                    ``(B) any other provision of this title 
                that was in effect before the transition 
                termination date.
            ``(3) Transition termination date defined.--In this 
        section, the term `transition termination date' means 
        the first day of January occurring more than 12 months 
        after the date of enactment of the Unified Carrier 
        Registration Act of 2005.''.
    (d) Clerical Amendments.--
            (1) Heading for section 13906.--Section 13906 of 
        such title is amended by striking the section 
        designation and heading and inserting the following:

``Sec. 13906. Security of motor carriers, motor private carriers, 
                    brokers, and freight forwarders''.

            (2) Chapter analysis.--The analysis for chapter 139 
        of such title is amended by striking the item relating 
        to section 13906 and inserting the following:

``13906. Security of motor carriers, motor private carriers, brokers, 
          and freight forwarders.''.

SEC. 4304. UNIFIED CARRIER REGISTRATION SYSTEM.

    Section 13908 of title 49, United States Code, is amended 
to read as follows:

``Sec. 13908. Registration and other reforms

    ``(a) Establishment of Unified Carrier Registration 
System.--The Secretary, in cooperation with the States, 
representatives of the motor carrier, motor private carrier, 
freight forwarder, and broker industries and after notice and 
opportunity for public comment, shall issue within 1 year after 
the date of enactment of the Unified Carrier Registration Act 
of 2005 regulations to establish an online Federal registration 
system, to be named the `Unified Carrier Registration System', 
to replace--
            ``(1) the current Department of Transportation 
        identification number system, the single state 
        registration system under section 14504;
            ``(2) the registration system contained in this 
        chapter and the financial responsibility information 
        system under section 13906; and
            ``(3) the service of process agent systems under 
        sections 503 and 13304.
    ``(b) Role as Clearinghouse and Depository of 
Information.--The Unified Carrier Registration System shall 
serve as a clearinghouse and depository of information on, and 
identification of, all foreign and domestic motor carriers, 
motor private carriers, brokers, freight forwarders, and others 
required to register with the Department of Transportation, 
including information with respect to a carrier's safety 
rating, compliance with required levels of financial 
responsibility, and compliance with the provisions of section 
14504a. The Secretary shall ensure that Federal agencies, 
States, representatives of the motor carrier industry, and the 
public have access to the Unified Carrier Registration System, 
including the records and information contained in the System.
    ``(c) Procedures for Correcting Information.--Not later 
than 60 days after the effective date of this section, the 
Secretary shall prescribe regulations establishing procedures 
that enable a motor carrier to correct erroneous information 
contained in any part of the Unified Carrier Registration 
System.
    ``(d) Fee System.--The Secretary shall establish, under 
section 9701 of title 31, a fee system for the Unified Carrier 
Registration System according to the following guidelines:
            ``(1) Registration and filing evidence of financial 
        responsibility.--The fee for new registrants shall as 
        nearly as possible cover the costs of processing the 
        registration but shall not exceed $300.
            ``(2) Evidence of financial responsibility.--The 
        fee for filing evidence of financial responsibility 
        pursuant to this section shall not exceed $10 per 
        filing. No fee shall be charged for a filing for 
        purposes of designating an agent for service of process 
        or the filing of other information relating to 
        financial responsibility.
            ``(3) Access and retrieval fees.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the fee system shall include 
                a nominal fee for the access to or retrieval of 
                information from the Unified Carrier 
                Registration System to cover the costs of 
                operating and upgrading the System, including 
                the personnel costs incurred by the Department 
                and the costs of administration of the unified 
                carrier registration agreement.
                    ``(B) Exceptions.--There shall be no fee 
                charged under this paragraph--
                            ``(i) to any agency of the Federal 
                        Government or a State government or any 
                        political subdivision of any such 
                        government for the access to or 
                        retrieval of information and data from 
                        the Unified Carrier Registration System 
                        for its own use; or
                            ``(ii) to any representative of a 
                        motor carrier, motor private carrier, 
                        leasing company, broker, or freight 
                        forwarder (as each is defined in 
                        section 14504a) for the access to or 
                        retrieval of the individual information 
                        related to such entity from the Unified 
                        Carrier Registration System for the 
                        individual use of such entity.
    ``(e) Application to Certain Intrastate Operations.--
Nothing in this section requires the registration of a motor 
carrier, a motor private carrier of property, or a transporter 
of waste or recyclable materials operating exclusively in 
intrastate transportation not otherwise required to register 
with the Secretary under another provision of this title.''.

SEC. 4305. REGISTRATION OF MOTOR CARRIERS BY STATES.

    (a) Termination of Registration Provisions.--Section 14504, 
and the item relating to such section in the analysis for 
chapter 145, of title 49, United States Code, are repealed 
effective on the first January 1st occurring more than 12 
months after the date of enactment of this Act.
    (b) Unified Carrier Registration System Plan and 
Agreement.--Chapter 145 of title 49, United States Code is 
amended by inserting after section 14504 the following:

``Sec. 14504a. Unified Carrier Registration System plan and agreement

    ``(a) Definitions.--In this section and section 14506, the 
following definitions apply :
            ``(1) Commercial motor vehicle.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `commercial motor 
                vehicle' has the meaning such term has under 
                section 31101.
                    ``(B) Exception.--With respect to a motor 
                carrier required to make any filing or pay any 
                fee to a State with respect to the motor 
                carrier's authority or insurance related to 
                operation within such State, the motor carrier 
                shall have the option to include, in addition 
                to commercial motor vehicles as defined in 
                subparagraph (A), any self-propelled vehicle 
                used on the highway in commerce to transport 
                passengers or property for compensation 
                regardless of the gross vehicle weight rating 
                of the vehicle or the number of passengers 
                transported by such vehicle.
            ``(2) Base-state.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the term `base-State' means, with respect 
                to a unified carrier registration agreement, a 
                State--
                            ``(i) that is in compliance with 
                        the requirements of subsection (e); and
                            ``(ii) in which the motor carrier, 
                        motor private carrier, broker, freight 
                        forwarder, or leasing company to which 
                        the agreement applies maintains its 
                        principal place of business.
                    ``(B) Designation of base-state.--A motor 
                carrier, motor private carrier, broker, freight 
                forwarder, or leasing company may designate 
                another State in which it maintains an office 
                or operating facility to be its base-State in 
                the event that--
                            ``(i) the State in which the motor 
                        carrier, motor private carrier, broker, 
                        freight forwarder, or leasing company 
                        maintains its principal place of 
                        business is not in compliance with the 
                        requirements of subsection (e); or
                            ``(ii) the motor carrier, motor 
                        private carrier, broker, freight 
                        forwarder, or leasing company does not 
                        have a principal place of business in 
                        the United States.
            ``(3) Intrastate fee.--The term `intrastate fee' 
        means any fee, tax, or other type of assessment, 
        including per vehicle fees and gross receipts taxes, 
        imposed on a motor carrier or motor private carrier for 
        the renewal of the intrastate authority or insurance 
        filings of such carrier with a State.
            ``(4) Leasing company.--The term `leasing company' 
        means a lessor that is engaged in the business of 
        leasing or renting for compensation motor vehicles 
        without drivers to a motor carrier, motor private 
        carrier, or freight forwarder.
            ``(5) Motor carrier.--The term `motor carrier' 
        includes all carriers that are otherwise exempt from 
        this part under subchapter I of chapter 135 or 
        exemption actions by the former Interstate Commerce 
        Commission under this title.
            ``(6) Participating state.--The term `participating 
        State' means a State that has complied with the 
        requirements of subsection (e).
            ``(7) SSRS.--The term `SSRS' means the single state 
        registration system in effect on the date of enactment 
        this section.
            ``(8) Unified carrier registration agreement.--The 
        terms `unified carrier registration agreement' and `UCR 
        agreement' mean the interstate agreement developed 
        under the unified carrier registration plan governing 
        the collection and distribution of registration and 
        financial responsibility information provided and fees 
        paid by motor carriers, motor private carriers, 
        brokers, freight forwarders, and leasing companies 
        pursuant to this section.
            ``(9) Unified carrier registration plan.--The terms 
        `unified carrier registration plan' and `UCR plan' mean 
        the organization of State, Federal, and industry 
        representatives responsible for developing, 
        implementing, and administering the unified carrier 
        registration agreement.
            ``(10) Vehicle registration.--The term `vehicle 
        registration' means the registration of any commercial 
        motor vehicle under the International Registration Plan 
        (as defined in section 31701) or any other registration 
        law or regulation of a jurisdiction.
    ``(b) Applicability of Provisions to Freight Forwarders.--A 
freight forwarder that operates commercial motor vehicles and 
is not required to register as a carrier pursuant to section 
13903(b) shall be subject to the provisions of this section as 
if the freight forwarder is a motor carrier.
    ``(c) Unreasonable Burden.--For purposes of this section, 
it shall be considered an unreasonable burden upon interstate 
commerce for any State or any politicalsubdivision of a State, 
or any political authority of 2 or more States--
            ``(1) to enact, impose, or enforce any requirement 
        or standards with respect to, or levy any fee or charge 
        on, any motor carrier or motor private carrier 
        providing transportation or service subject to 
        jurisdiction under subchapter I of chapter 135 (in this 
        section referred to as an `interstate motor carrier' 
        and an `interstate motor private carrier', 
        respectively) in connection with--
                    ``(A) the registration with the State of 
                the interstate operations of the motor carrier 
                or motor private carrier;
                    ``(B) the filing with the State of 
                information relating to the financial 
                responsibility of the motor carrier or motor 
                private carrier pursuant to sections 31138 or 
                31139;
                    ``(C) the filing with the State of the name 
                of the local agent for service of process of 
                the motor carrier or motor private carrier 
                pursuant to sections 503 or 13304; or
                    ``(D) the annual renewal of the intrastate 
                authority, or the insurance filings, of the 
                motor carrier or motor private carrier, or 
                other intrastate filing requirement necessary 
                to operate within the State if the motor 
                carrier or motor private carrier is--
                            ``(i) registered under section 
                        13902 or section 13905(b); and
                            ``(ii) in compliance with the laws 
                        and regulations of the State 
                        authorizing the carrier to operate in 
                        the State in accordance with section 
                        14501(c)(2)(A); except with respect 
                        to--
                                    ``(I) intrastate service 
                                provided by motor carriers of 
                                passengers that is not subject 
                                to the preemption provisions of 
                                section 14501(a);
                                    ``(II) motor carriers of 
                                property, motor private 
                                carriers, brokers, or freight 
                                forwarders, or their services 
                                or operations, that are 
                                described in subparagraphs (B) 
                                and (C) of section 14501(c)(2).
                                    ``(III) the intrastate 
                                transportation of waste or 
                                recyclable materials by any 
                                carrier; or
            ``(2) to require any interstate motor carrier or 
        motor private carrier that also performs intrastate 
        operations to pay any fee or tax which a carrier 
        engaged exclusively in interstate operations is exempt.
    ``(d) Unified Carrier Registration Plan.--
            ``(1) Board of directors.--
                    ``(A) Governance of plan; establishment.--
                The unified carrier registration plan shall 
                have a board of directors consisting of 
                representatives of the Department of 
                Transportation, participating States, and the 
                motor carrier industry. The Secretary shall 
                establish the board.
                    ``(B) Composition.--The board shall consist 
                of 15 directors appointed by the Secretary as 
                follows:
                            ``(i) Federal motor carrier safety 
                        administration.--One director from each 
                        of the Federal Motor Carrier Safety 
                        Administration's 4 service areas (as 
                        those areas were defined by the Federal 
                        Motor Carrier Safety Administration on 
                        January 1, 2005) from among the chief 
                        administrative officers of the State 
                        agencies responsible for overseeing the 
                        administration of the UCR agreement.
                            ``(ii) State agencies.--Five 
                        directors from the professional staffs 
                        of State agencies responsible for 
                        overseeing the administration of the 
                        UCR agreement in their respective 
                        States. Nominees for these 5 
                        directorships shall be submitted to the 
                        Secretary by the national association 
                        of professional employees of the State 
                        agencies responsible for overseeing the 
                        administration of the UCR agreement in 
                        their respective States.
                            ``(iii) Motor carrier industry.--
                        Five directors from the motor carrier 
                        industry. At least 1 of the appointees 
                        under this clause shall be a 
                        representative of a national trade 
                        association representing the general 
                        motor carrier of property industry. At 
                        least 1 of the appointees under this 
                        clause shall represent a motor carrier 
                        that falls within the smallest fleet 
                        fee bracket.
                            ``(iv) Department of 
                        transportation.--The Deputy 
                        Administrator of the Federal Motor 
                        Carrier Safety Administration, or such 
                        other presidential appointee from the 
                        Department, as the Secretary may 
                        appoint.
                    ``(C) Chairperson and vice-chairperson.--
                The Secretary shall designate 1 director as 
                chairperson and 1 director as vice-chairperson 
                of the board. The chairperson and vice-
                chairperson shall serve in such capacity for 
                the term of their appointment as directors.
                    ``(D) Terms.--
                            ``(i) Initial terms.--In appointing 
                        the initial board, the Secretary shall 
                        designate 5 of the appointed directors 
                        for initial terms of 3 years, 5 of the 
                        appointed directors for initial terms 
                        of 2 years, and 5 of the appointed 
                        directors for initial terms of 1 year.
                            ``(ii) Thereafter.--After the 
                        initial term, all directors shall be 
                        appointed for terms of 3 years; except 
                        that the term of the Deputy 
                        Administrator or other individual 
                        designated by the Secretary under 
                        subparagraph (B)(iv) shall be at the 
                        discretion of the Secretary.
                            ``(iii) Succession.--A director may 
                        be appointed to succeed himself or 
                        herself.
                            ``(iv) End of service.--A director 
                        may continue to serve on the board 
                        until his or her successor is 
                        appointed.
            ``(2) Rules and regulations governing the ucr 
        agreement.--The board of directors shall issue rules 
        and regulations to govern the UCR agreement. The rules 
        and regulations shall--
                    ``(A) prescribe uniform forms and formats, 
                for--
                            ``(i) the annual submission of the 
                        information required by a base-State of 
                        a motor carrier, motor private carrier, 
                        leasing company, broker, or freight 
                        forwarder;
                            ``(ii) the transmission of 
                        information by a participating State to 
                        the Unified Carrier Registration 
                        System;
                            ``(iii) the payment of excess fees 
                        by a State to the designated depository 
                        and the distribution of fees by the 
                        depository to those States so entitled; 
                        and
                            ``(iv) the providing of notice by a 
                        motor carrier, motor private carrier, 
                        broker, freight forwarder, or leasing 
                        company to the board of the intent of 
                        such entity to change its base-State, 
                        and the procedures for a State to 
                        object to such a change under 
                        subparagraph (C);
                    ``(B) provide for the administration of the 
                unified carrier registration agreement, 
                including procedures for amending the agreement 
                and obtaining clarification of any provision of 
                the Agreement;
                    ``(C) provide procedures for dispute 
                resolution under the agreement that provide due 
                process for all involved parties; and
                    ``(D) designate a depository.
            ``(3) Compensation and expenses.--
                    ``(A) In general.--Except for the 
                representative of the Department appointed 
                under paragraph (1)(B)(iv), no director shall 
                receive any compensation or other benefits from 
                the Federal Government for serving on the board 
                or be considered a Federal employee as a result 
                of such service.
                    ``(B) Expenses.--All directors shall be 
                reimbursed for expenses they incur attending 
                meetings of the board. In addition, the board 
                may approve the reimbursement of expenses 
                incurred by members of any subcommittee or task 
                force appointed under paragraph (5) for 
                carrying out the duties of the subcommittee or 
                task force. The reimbursement of expenses to 
                directors and subcommittee and task force 
                members shall be under subchapter II of chapter 
                57 of title 5, United States Code, governing 
                reimbursement of expenses for travel by Federal 
                employees.
            ``(4) Meetings.--
                    ``(A) In general.--The board shall meet at 
                least once per year. Additional meetings may be 
                called, as needed, by the chairperson of the 
                board, a majority of the directors, or the 
                Secretary.
                    ``(B) Quorum.--A majority of directors 
                shall constitute a quorum.
                    ``(C) Voting.--Approval of any matter 
                before the board shall require the approval of 
                a majority of all directors present at the 
                meeting.
                    ``(D) Open meetings.--Meetings of the board 
                and any subcommittees or task forces appointed 
                under paragraph (5) shall be subject to the 
                provisions of section 552b of title 5.
            ``(5) Subcommittees.--
                    ``(A) Industry advisory subcommittee.--The 
                chairperson shall appoint an industry advisory 
                subcommittee. The industry advisory 
                subcommittee shall consider any matter before 
                the board and make recommendations to the 
                board.
                    ``(B) Other subcommittees.--The chairperson 
                shall appoint an audit subcommittee, a dispute 
                resolution subcommittee, and any additional 
                subcommittees and task forces that the board 
                determines to be necessary.
                    ``(C) Membership.--The chairperson of each 
                subcommittee shall be a director. The other 
                members of subcommittees and task forces may be 
                directors or nondirectors.
                    ``(D) Representation on subcommittees.--
                Except for the industry advisory subcommittee 
                (the membership of which shall consist solely 
                of representatives of entities subject to the 
                fee requirements of subsection (f)), each 
                subcommittee and task force shall include 
                representatives of the participating States and 
                the motor carrier industry.
            ``(6) Delegation of authority.--The board may 
        contract with any person or any agency of a State to 
        perform administrative functions required under the 
        unified carrier registration agreement, but may not 
        delegate its decision or policy-making 
        responsibilities.
            ``(7) Determination of fees.--
                    ``(A) Recommendation by board.--The board 
                shall recommend to the Secretary the initial 
                annual fees to be assessed carriers, leasing 
                companies, brokers, and freight forwarders 
                under the unified carrier registration 
                agreement. In making its recommendation to the 
                Secretary for the level of fees to be assessed 
                in any agreement year, and in setting the fee 
                level, the board and the Secretary shall 
                consider--
                            ``(i) the administrative costs 
                        associated with the unified carrier 
                        registration plan and the agreement;
                            ``(ii) whether the revenues 
                        generated in the previous year and any 
                        surplus or shortage from that or prior 
                        years enable the participating States 
                        to achieve the revenue levels set by 
                        the board; and
                            ``(iii) the provisions governing 
                        fees under in subsection (f)(1).
                    ``(B) Setting fees.--The Secretary shall 
                set the initial annual fees for the next 
                agreement year and any subsequent adjustment of 
                those fees--
                            ``(i) within 90 days after 
                        receiving the board's recommendation 
                        under subparagraph (A); and
                            ``(ii) after notice and opportunity 
                        for public comment.
            ``(8) Liability protections for directors.--No 
        individual appointed to serve on the board shall be 
        liable to any other director or to any other party for 
        harm, either economic or non-economic, caused by an act 
        or omission of the individual arising from the 
        individual's service on the board if--
                    ``(A) the individual was acting within the 
                scope of his or her responsibilities as a 
                director; and
                    ``(B) the harm was not caused by willful or 
                criminal misconduct, gross negligence, reckless 
                misconduct, or a conscious, flagrant 
                indifference to the right or safety of the 
                party harmed by the individual.
            ``(9) Inapplicability of federal advisory committee 
        act.--The Federal Advisory Committee Act (5 U.S.C. 
        App.) shall not apply to the unified carrier 
        registration plan, the board, or its committees.
            ``(10) Certain fees not affected.--This section 
        does not limit the amount of money a State may charge 
        for vehicle registration or the amount of any fuel use 
        tax a State may impose pursuant to the International 
        Fuel Tax Agreement (as defined in section 31701).
    ``(e) State Participation.--
            ``(1) State plan.--No State shall be eligible to 
        participate in the unified carrier registration plan or 
        to receive any revenues derived under the UCR 
        agreement, unless the State submits to the Secretary, 
        not later than 3 years after the date of enactment of 
        the Unified Carrier Registration Act of 2005, a plan--
                    ``(A) identifying the State agency that has 
                or will have the legal authority, resources, 
                and qualified personnel necessary to administer 
                the agreement in accordance with the rules and 
                regulations promulgated by the board of 
                directors; and
                    ``(B) demonstrating that an amount at least 
                equal to the revenue derived by the State from 
                the unified carrier registration agreementshall 
be used for motor carrier safety programs, enforcement, or the 
administration of the UCR plan and UCR agreement.
            ``(2) Amended plans.--A State that submits a plan 
        under this subsection may change the agency designated 
        in the plan by filing an amended plan with the 
        Secretary and the chairperson of the board of 
        directors.
            ``(3) Withdrawal of plan.--If a State withdraws, or 
        notifies the Secretary that it is withdrawing, the plan 
        it submitted under this subsection, the State may no 
        longer participate in the unified carrier registration 
        agreement or receive any portion of the revenues 
        derived under the agreement. The Secretary shall notify 
        the chairperson upon receiving notice from a State that 
        it is withdrawing its plan or withdrawing from the 
        agreement, or both.
            ``(4) Termination of eligibility.--If a State fails 
        to submit a plan to the Secretary in accordance with 
        paragraph (1) or withdraws its plan under paragraph 
        (3), the State may not submit or resubmit a plan or 
        participate in the agreement.
            ``(5) Provision of plan to chairperson.--The 
        Secretary shall provide a copy of each plan submitted 
        under this subsection to the chairperson of the board 
        of directors not later than 10 days after date of 
        submission of the plan.
    ``(f) Contents of Unified Carrier Registration Agreement.--
The unified carrier registration agreement shall provide the 
following:
            ``(1) Fees.--(A) Fees charged--
                    ``(i) to a motor carrier, motor private 
                carrier, or freight forwarder in connection 
                with the filing of proof of financial 
                responsibility under the UCR agreement shall be 
                based on the number of commercial motor 
                vehicles owned or operated by the motor 
                carrier, motor private carrier, or freight 
                forwarder; and
                    ``(ii) to a broker or leasing company in 
                connection with such a filing shall be equal to 
                the smallest fee charged to a motor carrier, 
                motor private carrier, and freight forwarder or 
                under this paragraph.
            ``(B) The fees shall be determined by the Secretary 
        based upon the recommendation of the board under 
        subsection (d)(7).
            ``(C) The board shall develop for purposes of 
        charging fees no more than 6 and no less than 4 
        brackets of carriers (including motor private carriers) 
        based on the size of fleet.
            ``(D) The fee scale shall be progressive in the 
        amount of the fee.
            ``(E) The board may ask the Secretary to adjust the 
        fees within a reasonable range on an annual basis if 
        the revenues derived from the fees--
                    ``(i) are insufficient to provide the 
                revenues to which the States are entitled under 
                this section; or
                    ``(ii) exceed those revenues.
            ``(2) Determination of ownership or operation.--For 
        purposes of this subsection, a commercial motor vehicle 
        is owned or operated by a motor carrier, motor private 
        carrier, or freight forwarder if the vehicle is 
        registered under Federal law or State law, or both, in 
        the name of the motor carrier, motor private carrier, 
        or freight forwarder or is controlled by the motor 
        carrier, motor private carrier, or freight forwarder 
        under a long term lease during a vehicle registration 
        year.
            ``(3) Calculation of number of commercial motor 
        vehicles owned or operated.--The number of commercial 
        motor vehicles owned or operated by a motor carrier, 
        motor private carrier, or freight forwarder for 
        purposes of paragraph (1) shall be based either on the 
        number of commercial motor vehicles the motor carrier, 
        motor private carrier, or freight forwarder has 
        indicated it operates on its most recently filed MCS-
        150 or the total number of such vehicles it owned or 
        operated for the 12-month period ending on June 30 of 
        the year immediately prior to the registration year of 
        the Unified Carrier Registration System. A motor 
        carrier may include in the calculation of its fleet 
        size for purposes of paragraph (1) any commercial motor 
        vehicle. Motor carriers and motor private carriers in 
        the calculation of their fleet size for purposes of 
        paragraph (1) may elect not to include commercial motor 
        vehicle used exclusively in the intrastate 
        transportation of property, waste, or recyclable 
        material.
            ``(4) Payment of fees.--Motor carriers, motor 
        private carriers, leasing companies, brokers, and 
        freight forwarders shall pay all fees required under 
        this section to their base-State pursuant to the UCR 
        Agreement.
    ``(g) Payment of Fees.--Revenues derived under the UCR 
Agreement shall be allocated to participating States as 
follows:
            ``(1) A State that participated in the SSRS in the 
        last registration year under the SSRS ending before the 
        date of enactment of the Unified Carrier Registration 
        Act of 2005 and complies with subsection (e) is 
        entitled to receive under this section a portion of the 
        revenues generated under the UCR agreement equivalent 
        to the revenues it received under the SSRS in such last 
        registration year, as long as the State continues to 
        comply with subsection (e).
            ``(2) A State that collected intrastate 
        registration fees from interstate motor carriers, 
        interstate motor private carriers, or interstate exempt 
        carriers and complies with subsection (e) is entitled 
        to receive under this section an additional portion of 
        the revenues generated under the UCR agreement 
        equivalent to the revenues it received from such 
        carriers in the last calendar year ending before the 
        date of enactment of the Unified Carrier Registration 
        Act of 2005, as long as the State continues to comply 
        with subsection (e).
            ``(3) States that comply with subsection (e) but 
        did not participate in SSRS during such last 
        registration year shall be entitled under this section 
        to an annual allotment not to exceed $500,000 from the 
        revenues generated under the UCR agreement, as long as 
        the State continues to comply with the provisions of 
        subsection (e).
            ``(4) The amount of revenues generated under the 
        UCR agreement to which a State is entitled under this 
        section shall be calculated by the board and approved 
        by the Secretary.
    ``(h) Distribution of UCR Agreement Revenues.--
            ``(1) Eligibility.--Each State that is in 
        compliance with subsection (e) shall be entitled under 
        this section to a portion of the revenues derived from 
        the UCR Agreement in accordance with subsection (g).
            ``(2) Entitlement to revenues.--A State that is in 
        compliance with subsection (e) may retain an amount of 
        the gross revenues it collects from motor carriers, 
        motor private carriers, brokers, freight forwarders and 
        leasing companies under the UCR agreement equivalent to 
        the portion of revenues to which the State is entitled 
        under subsection (g). All revenues a participating 
        State collects in excess of the amount to which the 
        State is so entitled shall be forwarded to the 
        depository designated by the board under subsection 
        (d)(2)(D).
            ``(3) Distribution of funds from depository.--The 
        excess funds deposited in the depository shall be 
        distributed by the board of directors as follows:
                    ``(A) On a pro rata basis to each 
                participating State that did not collect 
                revenues under the UCR agreement equivalent to 
                the amount such State is entitled under 
                subsection (g), except that the sum of the 
                gross revenues collected under the UCR 
                agreement by a participating State and the 
                amount distributed to it from the depository 
                shall not exceed the amount to which the State 
                is entitled under subsection (g).
                    ``(B) After all distributions under 
                subparagraph (A) have been made, to pay the 
                administrative costs of the UCR plan and the 
                UCR agreement.
            ``(4) Retention of certain excess funds.--Any 
        excess funds held by the depository after distributions 
        and payments under paragraphs (3)(A) and (3)(B) shall 
        be retained in the depository, and the fees charged 
        under the UCR agreement to motor carriers, motor 
        private carriers, leasing companies, freight 
        forwarders, and brokers for the next fee year shall be 
        reduced by the Secretary accordingly.
    ``(i) Enforcement.--
            ``(1) Civil actions.--Upon request by the 
        Secretary, the Attorney General may bring a civil 
        action in the United States district court described in 
        paragraph (2) to enforce an order issued to require 
        compliance with this section and with the terms of the 
        UCR agreement.
            ``(2) Venue.--An action under this section may be 
        brought only in a United States district court in the 
        State in which compliance with the order is required.
            ``(3) Relief.--Subject to section 1341 of title 28, 
        the court, on a proper showing shall issue a temporary 
        restraining order or a preliminary or permanent 
        injunction requiring that the State or any person 
        comply with this section.
            ``(4) Enforcement by states.--Nothing in this 
        section--
                    ``(A) prohibits a participating State from 
                issuing citations and imposing reasonable fines 
                and penalties pursuant to the applicable laws 
                and regulations of the State on any motor 
                carrier, motor private carrier, freight 
                forwarder, broker, or leasing company for 
                failure to--
                            ``(i) submit information documents 
                        as required under subsection (d)(2); or
                            ``(ii) pay the fees required under 
                        subsection (f); or
                    ``(B) authorizes a State to require a motor 
                carrier, motor private carrier, or freight 
                forwarder to display as evidence of compliance 
                any form of identification in excess of those 
                permitted under section 14506 on or in a 
                commercial motor vehicle.
    ``(j) Application to Intrastate Carriers.--Notwithstanding 
any other provision of this section, a State may elect to apply 
the provisions of the UCR agreement to motor carriers and motor 
private carriers and freight forwarders subject to its 
jurisdiction that operate solely in intrastate commerce within 
the borders of the State.''.
    (c) Clerical Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 14504 
the following:

``14504a. Unified Carrier Registration System plan and agreement.''.

SEC. 4306. IDENTIFICATION OF VEHICLES.

    (a) In General.--Chapter 145 of title 49, United States 
Code; is amended by adding at the end the following:

``Sec. 14506. Identification of vehicles

    ``(a) Restriction on Requirements.--No State, political 
subdivision of a State, interstate agency, or other political 
agency of 2 or more States may enact or enforce any law, rule, 
regulation standard, or other provision having the force and 
effect of law that requires a motor carrier, motor private 
carrier, freight forwarder, or leasing company to display any 
form of identification on or in a commercial motor vehicle (as 
defined in section 14504a), other than forms of identification 
required by the Secretary of Transportation under section 
390.21 of title 49, Code of Federal Regulations.
    ``(b) Exception.--Notwithstanding subsection (a), a State 
may continue to require display of credentials that are 
required--
            ``(1) under the International Registration Plan 
        under section 31704;
            ``(2) under the International Fuel Tax Agreement 
        under section 31705;
            ``(3) under a State law regarding motor vehicle 
        license plates or other displays that the Secretary 
        determines are appropriate;
            ``(4) in connection with Federal requirements for 
        hazardous materials transportation under section 5103; 
        or
            ``(5) in connection with the Federal vehicle 
        inspection standards under section 31136.''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 14505 
the following:

``14506. Identification of vehicles.''.

SEC. 4307. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS.

    (a) In General.--Section 31103(a) of title 49, United 
States Code, is amended--
            (1) by striking ``31102(b)(1)(D)'' inserting 
        ``31102(b)(1)(E)''; and
            (2) by inserting ``Amounts generated under the 
        unified carrier registration agreement under section 
        14504a and received by a State and used for motor 
        carrier safety purposes may be included as part of the 
        State's share not provided by the United States.'' 
        after ``United States Government.''.
    (b) Technical Correction.--Sections 31102(b)(3) of such 
title is amended by striking ``paragraph (1)(D)'' and inserting 
``paragraph (1)(E)''.

SEC. 4308. REGULATIONS.

    The Secretary may issue such regulations as the Secretary 
determines are necessary to carry out this subtitle and the 
amendments made by this subtitle.

                  Subtitle D--Miscellaneous Provisions

SEC. 4401. TECHNICAL ADJUSTMENT.

    (a) Definitions.--In this section the following 
definitions:
            (1) The term ``Administrator'' means the 
        Administrator of General Services.
            (2) The term ``donee'' means the corporation to 
        which the Administrator donated the vessel.
            (3) The term ``vessel'' means the vessel with Unit 
        Identification number 13862.
    (b) Transfer.--Not later than 30 days after the date of 
enactment of this Act, the donee shall transfer all of the 
rights, title, and interest of the donee in and to the vessel 
to the Administrator.
    (c) Future Conveyance.--Within 30 days after the transfer 
of the vessel under subsection (b), the Administrator shall 
remove the vessel to a Federal facility. Within 60 days after 
the date of the transfer of the vessel under subsection (b), 
the Administrator shall sell the vessel for fair market value. 
The Administrator shall require as a condition of any 
conveyance of the vessel that the vessel shall not be used 
within the United States, as defined in section 2101(44) of 
title 46, United States Code, or within the territorial sea of 
the United States as described in Presidential Proclamation No. 
5928 of December 27, 1988. The donee shall not be required to 
pay any amounts for removing the vessel to a Federal facility 
under this subsection.
    (d) Effect on Pending Lawsuits.--Nothing in this section 
shall have any effect on any lawsuit relating to transfer or 
use of the vessel.
    (e) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary $4,000,000 for a grant to 
the donee. The Secretary shall transfer any funds appropriated 
under this subsection to the Secretary of the Interior, who 
shall obligate such funds through instruments and procedures 
that are equivalent to the instruments and procedures required 
to be used by the Bureau of Indian Affairs pursuant to title IV 
of the Indian Self-Determination and Education Assistance Act 
(25 U.S.C. 458aa et seq.). Amounts paid to the donee under this 
section shall be treated as revenues originating from the 
Alaska Native Fund for purposes of section 21(a) of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602(a)).

SEC. 4402. TRANSFER.

    Section 407(b) of the Coast Guard Authorization Act of 1998 
(112 Stat. 3430) is amended--
            (1) by striking ``made--'' and all that follows 
        through ``(1) subject'' and inserting ``made subject''; 
        and
            (2) by striking ``; and'' and all that follows and 
        inserting a period.

SEC. 4403. EXTENSION OF ASSISTANCE.

    Section 206(c) of Public Law 89-702 (16 U.S.C. 1166(c)) is 
amended--
            (1) by striking ``for fiscal years 2001, 2002, 
        2003, 2004, and 2005'' the first place it appears; and
            (2) in paragraph (1) by inserting ``, for fiscal 
        years 2001, 2002, 2003, 2004, 2005, 2006, and 2007'' 
        after ``subsection (a)''.

SEC. 4404. DESIGNATIONS.

    (a) Designation.--In the States of Alaska and Hawaii, 
members of the State legislature may serve on the policy board 
of a metropolitan planning organization designated under 
section 134 of title 23, United States Code, if such service is 
allowed by State law.
    (b) Redesignation.--In the States of Alaska and Hawaii, a 
metropolitan planning organization designated under section 134 
of title 23, United Sates Code, may be redesignated as a result 
of changes in State law that define new requirements for the 
metropolitan planning organization policy board.

SEC. 4405. LIMITED EXCEPTION.

     Section 44704(a) of title 49, United States Code is 
amended--
            (1) in paragraph (1) by striking ``The'' the first 
        place it appears and inserting ``Issuance, 
        investigations, and tests.--The'';
            (2) in paragraph (2) by striking ``The'' and 
        inserting ``Specifications.--The'';
            (3) in paragraph (3) by striking ``If'' and 
        inserting ``Special rules for new aircraft and 
        appliances.--Except as provided in paragraph (4), if'';
            (4) by adding at the end the following:
            ``(4) Limitation for aircraft manufactured before 
        august 5, 2004.--Paragraph (3) shall not apply to a 
        person who began the manufacture of an aircraft before 
        August 5, 2004, and who demonstrates to the 
        satisfaction of the Administrator that such manufacture 
        began before August 5, 2004, if the name of the holder 
        of the type certificate for the aircraft does not 
        appear on the airworthiness certificate or 
        identification plate of the aircraft. The holder of the 
        type certificate for the aircraft shall not be 
        responsible for the continued airworthiness of the 
        aircraft. A person may invoke the exception provided by 
        this paragraph with regard to the manufacture of only 
        one aircraft.'';
            (5) by indenting paragraph (1); and
            (6) by aligning the left margin of paragraphs (1), 
        (2), and (3) with the left margin of paragraph (4) (as 
        added by paragraph (4) of this section.)

SEC. 4406. AIRPORT LAND AMENDMENT.

    (a) Release of Reverter Condition.--The Secretary of the 
Interior shall execute such instruments as are necessary to 
release the condition on a portion of land situated adjacent to 
the community of Beaver, Alaska, conveyed pursuant to Patent 
No. 50-69-0130 and dated August 23, 1968, requiring that such 
land reverts to the United States if the land is not used for 
airport purposes. The Secretary shall ensure that the release 
executed pursuant to this subsection--
            (1) applies only to approximately 33 acres of land 
        identified as tracts II through VI of the Beaver 
        Airport, a part of U.S. Survey No. 3798, Alaska 
        (referred to in this section as the ``community 
        expansion land'');
            (2) is without any requirement for receipt of fair 
        market value for the release and conveyance of the 
        conditions otherwise applicable to the community 
        expansion land; and
            (3) is contingent on the conveyance by the State of 
        Alaska of the community expansion land to the Beaver 
        Kwit'chin Corporation, the Village Corporation of the 
        village of Beaver, Alaska.
    (b) Reconveyance.--The Beaver Kwit'chin Corporation--
            (1) shall reconvey to any individual who currently 
        occupies a portion of the land referred to in 
        subsection (a) or successor in interest to such an 
        individual, all right, title, and interest of the 
        Kwit'chin Corporation in and to such land as is 
        currently occupied;
            (2) may subsequently--
                    (A) convey the remaining land to other 
                individuals or persons for community expansion 
                purposes; or
                    (B) retain the remaining land in whole or 
                in part for community uses.

SEC. 4407. RIGHTS-OF-WAY.

    Notwithstanding any other provision of law, the reciprocal 
rights-of-way and easements identified on the map numbered 
92337 and dated June 15, 2005, are hereby enacted into law.

SEC. 4408. RIALTO MUNICIPAL AIRPORT.

    (a) Findings.--Congress finds that--
            (1) Rialto Municipal Airport/Art Scholl Memorial 
        Airport (Rialto Municipal Airport) is a general 
        aviation airport located within a 20-mile radius of 10 
        other general aviation airports;
            (2) Rialto Municipal Airport is located 
        approximately 8.5 nautical miles from the former Norton 
        Air Force Base which was selected for closure by the 
        Base Realignment and Closure Commission in 1988 and was 
        closed in 1994;
            (3) there has been a significant decline in based 
        aircraft and aviation operations at Rialto Municipal 
        Airport due to the unexpected impact of increased 
        capacity in the immediate vicinity of the airport;
            (4) the transfer of Rialto Municipal Airport's 
        operations, assets and liabilities is supported by the 
        general aviation operators at the airport and will not 
        compromise service or safety; and
            (5) the closure of Rialto Municipal Airport shall 
        be in compliance with applicable federal laws and 
        regulations.
    (b) In General.--Notwithstanding any law, regulation or 
grant assurance, but subject to the requirements of this 
section, the United States shall release all restrictions, 
conditions, and limitations on the use, encumbrance, 
conveyance, or closure of the Rialto Municipal Airport, in 
Rialto, California, to the extent such restrictions, 
conditions, and limitations are enforceable by the United 
States.
    (c) Conditions.--A release under subsection (b) shall be 
subject to the following conditions:
            (1) Upon conveyance of the land or transfer of any 
        interest or rights of use or occupancy of the land--
                    (A) the city of Rialto will pay the United 
                States 45 percent of the current fair market 
                value of the property, and this amount shall be 
                used for projects eligible under chapter 471 of 
                title 49, United States Code, at a commercial 
                airport--
                            (i) for which a certificate is 
                        issued under part 139 of title 14, Code 
                        of Federal Regulations;
                            (ii) that is located within 10 
                        nautical miles of Rialto Municipal 
                        Airport; and
                            (iii) that was included on the 
                        Department of Defense base closure list 
                        of 1988;
                    (B) the remaining 55 percent of the fair 
                market value referred to in subparagraph (A) 
                shall be retained by the city of Rialto;
                    (C) the city shall pay to the United States 
                90 percent of the unamortized portion of any 
                Federal development grant for airport 
                facilities other than land, amortized over a 
                20-year term, with interest. These funds shall 
                be payable over a period of 5 years and 
                deposited into the Airport and Airway Trust 
                Fund and available for projects eligible under 
                chapter 471 of title 49, United States Code.
            (2) The United States will not be responsible for 
        any environmental cleanup of any land with respect to 
        which such release is made.
            (3) All airport and aviation-related equipment 
        located at Rialto Municipal Airport and owned by the 
        city of Rialto before the date of the release will be 
        transferred to a commercial airport referred to in 
        paragraph (1)(A).

SEC. 4409. CONFORMING AMENDMENTS.

    Section 218 of title 23, United States Code, is amended--
            (1) in subsection (a) by striking ``prior to the 
        date of the enactment of the reauthorization of the 
        Transportation Equity Act for the 21st Century''; and
            (2) by adding at the end the following:
    ``(c) For purposes of this section, the term `Alaska Marine 
Highway System' includes all existing or planned transportation 
facilities and equipment in Alaska, including the lease, 
purchase, or construction of vessels, terminals, docks, floats, 
ramps, staging areas, parking lots, bridges and approaches 
thereto, and necessary roads.''.

SEC. 4410. RALPH M. BARTHOLOMEW VETERANS' MEMORIAL BRIDGE.

    (a) Designation.--The bridge joining the Island of Gravina 
to the community of Ketchican, Alaska, constructed pursuant to 
section 144(g)(1)(E) of title 23, United States Code, is 
designated as the ``Ralph M. Bartholomew Veterans' Memorial 
Bridge''.
    (b) References.--Any reference in law, map, regulation, 
document, paper, or other record of the United States to the 
bridge referred to in subsection (a) shall be deemed to be a 
reference to the ``Ralph M. Bartholomew Veterans' Memorial 
Bridge''.

SEC. 4411. DON YOUNG'S WAY.

    (a) Designation.--The Knik Arm bridge in Alaska to be 
planned, designed, and constructed pursuant to section 117 of 
title 23, United States Code, as high priority project number 
2465 under section 1702 of this Act, is designated as ``Don 
Young's Way''.
    (b) References.--Any reference in law, map, regulation, 
document, paper, or other record of the United States to the 
bridge referred to in subsection (a) shall be deemed to be a 
reference to ``Don Young's Way''.

SEC. 4412. QUALITY BANK ADJUSTMENTS.

    (a) Definition of TAPS Quality Bank Adjustments.--In this 
section, the term ``TAPS quality bank adjustments'' means 
monetary adjustments paid by or to a shipper of oil on the 
Trans Alaska Pipeline System through the operation of a quality 
bank to compensate for the value of the oil of the shipper that 
is commingled in the Pipeline.
    (b) Proceedings.--
            (1) In general.--In a proceeding commenced before 
        the date of enactment of this Act, the Federal Energy 
        Regulatory Commission may not order retroactive changes 
        in TAPS quality bank adjustments for any period before 
        February 1, 2000.
            (2) Proceedings commenced after the date of 
        enactment.--In a proceeding commenced after the date of 
        enactment of this Act, the Commission may not order 
        retroactive changes in TAPS quality bank adjustments 
        for any period that exceeds the 15-month period 
        immediately preceding the earliest date of the first 
        order of the Federal Energy Regulatory Commission 
        imposing quality bank adjustments in the proceeding.
    (c) Deadline for Claims.--
            (1) In general.--A claim relating to a quality bank 
        under this section shall be filed with the Federal 
        Energy Regulatory Commission not later than 2 years 
        after the date on which the claim arose.
            (2) Final order.--Not later than 15 months after 
        the date on which a claim is filed under paragraph (1), 
        the Federal Energy Regulatory Commission shall issue a 
        final order with respect to the claim.

SEC. 4413. TECHNICAL AMENDMENT.

    Section 5006(d) of Public Law 101-380 is amended by 
inserting ``annual'' before ``amount''.

                           TITLE V--RESEARCH

                          Subtitle A--Funding

SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass 
Transit Account):
            (1) Surface transportation research, development, 
        and deployment program.--To carry out sections 502, 
        503, 506, 507, 509, and 510 of title 23, United States 
        Code, and sections 5201, 5203, 5204, 5309, 5501, 5502, 
        5503, 5504, 5506, 5511, 5512, 5513 of this title 
        $196,400,000 for each of fiscal years 2005 through 2009 
        shall be available.
            (2) Training and education.--To carry out section 
        504 of title 23, United States Code, and section 5502 
        of this Act $26,700,000 for each of fiscal years 2005 
        through 2009.
            (3) Bureau of transportation statistics.--For the 
        Bureau of Transportation Statistics to carry out 
        section 111 of title 49, United States Code, 
        $27,000,000 for each of fiscal years 2005 through 2009.
            (4) University transportation research.--To carry 
        out sections 5505 and 5506 of title 49, United States 
        Code, $69,700,000 for each of fiscal years 2005 through 
        2009.
            (5) Intelligent transportation systems (its) 
        research.--To carry out subtitle C of this title, and 
        section 511 of title 23, United States Code, 
        $110,000,000 for each of fiscal years 2005 through 
        2009.
            (6) ITS deployment.--To carry out sections 5208 and 
        5209 of the Transportation Equity Act for the 21st 
        Century (112 Stat. 458; 112 Stat. 460), $122,000,000 
        for fiscal year 2005.
    (b) Applicability of Title 23, United States Code.--Funds 
authorized to be appropriated by subsection (a) shall be 
available for obligation in the same manner as if such funds 
were apportioned under chapter 1 of title 23, United States 
Code; except that the Federal share of the cost of a project or 
activity carried out using such funds shall be 50 percent, 
unless otherwise expressly provided by this Act (including the 
amendments made by this Act) or otherwise determined by the 
Secretary, and such funds shall remain available until expended 
and shall not be transferable.

SEC. 5102. OBLIGATION CEILING.

    Notwithstanding any other provision of law, the total of 
all obligations from amounts made available from the Highway 
Trust Fund (other than the Mass Transit Account) by section 
5101(a) of this Act shall be $410,888,888 for each of fiscal 
years 2005 through 2009.

SEC. 5103. FINDINGS.

    Congress finds the following:
            (1) Research and development are critical to 
        developing and maintaining a transportation system that 
        meets the goals of safety, mobility, economic vitality, 
        efficiency, equity, and environmental protection.
            (2) Federally sponsored surface transportation 
        research and development has produced many successes. 
        The development of rumble strips has increased safety; 
        research on materials has increased the lifespan of 
        pavements, saving money and reducing the disruption 
        caused by construction; and Geographic Information 
        Systems have improved the management and efficiency of 
        transit fleets.
            (3) Despite these important successes, the Federal 
        surface transportation research and development 
        investment represents less than one percent of overall 
        Government spending on surface transportation.
            (4) While Congress increased funding for overall 
        transportation programs by about 40 percent in the 
        Transportation Equity Act for the 21st Century, funding 
        for transportation research and development remained 
        relatively flat.
            (5) The Federal investment in research and 
        development should be balanced between short-term 
        applied and long-term fundamental research and 
        development. The investment should also cover a wide 
        range of research areas, including research on 
        materials and construction, research on operations, 
        research on transportation trends and human factors, 
        and research addressing the institutional barriers to 
        deployment of new technologies.
            (6) That it is in the United States interest to 
        increase the Federal investment in transportation 
        research and development, and to conduct research in 
        critical research gaps, in order to ensure that the 
        transportation system meets the goals of safety, 
        mobility, economic vitality, efficiency, equity, and 
        environmental protection.

            Subtitle B--Research, Technology, and Education

SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION.

    (a) Research, Technology, and Education.--Title 23, United 
States Code, is amended--
            (1) in the table of chapters by striking the item 
        relating to chapter 5 and inserting the following:

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

; and
            (2) by striking the heading for chapter 5 and 
        inserting the following:

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

    (b) Statement of Principles Governing Research and 
Technology Investments.--Section 502 of such title is amended--
            (1) by redesignating subsections (a) through (g) as 
        subsections (b) through (h), respectively; and
            (2) by inserting before subsection (b) (as so 
        redesignated) the following:
    ``(a) Basic Principles Governing Research and Technology 
Investments.--
            ``(1) Coverage.--Surface transportation research 
        and technology development shall include all activities 
        leading to technology development and transfer, as well 
        as the introduction of new and innovative ideas, 
        practices, and approaches, through such mechanisms as 
        field applications, education and training, and 
        technical support.
            ``(2) Federal responsibility.--Funding and 
        conducting surface transportation research and 
        technology transfer activities shall be considered a 
        basic responsibility of the Federal Government when the 
        work--
                    ``(A) is of national significance;
                    ``(B) supports research in which there is a 
                clear public benefit and private sector 
                investment is less than optimal;
                    ``(C) supports a Federal stewardship role 
                in assuring that State and local governments 
                use national resources efficiently; or
                    ``(D) presents the best means to support 
                Federal policy goals compared to other policy 
                alternatives.
            ``(3) Role.--Consistent with these Federal 
        responsibilities, the Secretary shall--
                    ``(A) conduct research;
                    ``(B) support and facilitate research and 
                technology transfer activities by State highway 
                agencies;
                    ``(C) share results of completed research; 
                and
                    ``(D) support and facilitate technology and 
                innovation deployment.
            ``(4) Program content.--A surface transportation 
        research program shall include--
                    ``(A) fundamental, long-term highway 
                research;
                    ``(B) research aimed at significant highway 
                research gaps and emerging issues with national 
                implications; and
                    ``(C) research related to policy and 
                planning.
            ``(5) Stakeholder input.--Federal surface 
        transportation research and development activities 
        shall address the needs of stakeholders. Stakeholders 
        include States, metropolitan planning organizations, 
        local governments, the private sector, researchers, 
        research sponsors, and other affected parties, 
        including public interest groups.
            ``(6) Competition and peer review.--Except as 
        otherwise provided in this chapter, the Secretary shall 
        award, to the maximum extent practicable, all grants, 
        contracts, and cooperative agreements for research and 
        development under this chapter based on open 
        competition and peer review of proposals.
            ``(7) Performance review and evaluation.--To the 
        maximum extent practicable, all surface transportation 
        research and development projects shall include a 
        component of performance measurement and evaluation. 
        Performance measures shall be established during the 
        proposal stage of a research and development project 
        and shall, to the maximum extent possible, be outcome-
        based. All evaluations shall be made readily available 
        to the public.
            ``(8) Technological innovation.--The programs and 
        activities carried out under this section shall be 
        consistent with the surface transportation research and 
        technology development strategic plan developed under 
        section 508.''.
    (c) Procurement for Research, Development, and Technology 
Transfer Activities.--Section 502(b)(3) of such title (as 
redesignated by subsection (b) of this section) is amended to 
read as follows:
            ``(3) Cooperation, grants, and contracts.--The 
        Secretary may carry out research, development, and 
        technology transfer activities related to 
        transportation--
                    ``(A) independently;
                    ``(B) in cooperation with other Federal 
                departments, agencies, and instrumentalities 
                and Federal laboratories; or
                    ``(C) by making grants to, or entering into 
                contracts and cooperative agreements with one 
                or more of the following: the National Academy 
                of Sciences, the American Association of State 
                Highway and Transportation Officials, any 
                Federal laboratory, Federal agency, State 
                agency, authority, association, institution, 
                for-profit or nonprofit corporation, 
                organization, foreign country, or any other 
                person.''.
    (d) Transportation Pooled Fund Program.--Section 502(b) of 
such title (as redesignated by subsection (b) of this section) 
is amended by adding at the end the following:
            ``(6) Pooled funding.--
                    ``(A) Cooperation.--To promote effective 
                utilization of available resources, the 
                Secretary may cooperate with a State and an 
                appropriate agency in funding research, 
                development, and technology transfer activities 
                of mutual interest on a pooled funds basis.
                    ``(B) Secretary as agent.--The Secretary 
                may enter into contracts, cooperative 
                agreements, and grants as the agent for all 
                participating parties in carrying out such 
                research, development, or technology transfer 
                activities.''.
    (e) Operations Elements in Research Activities.--Section 
502 of such title is further amended--
            (1) in subsection (b)(1)(B) (as redesignated by 
        subsection (b) of this section) by inserting 
        ``transportation system management and operations,'' 
        after ``operation,'';
            (2) in subsection (d)(5)(C) (as redesignated by 
        subsection (b) of this section) by inserting ``system 
        management and'' after ``transportation''; and
            (3) by inserting at the end of subsection (d) (as 
        redesignated by subsection (b) of this section) the 
        following:
            ``(12) Investigation and development of various 
        operational methodologies to reduce the occurrence and 
        impact of recurrent congestion and nonrecurrent 
        congestion and increase transportation system 
        reliability.
            ``(13) Investigation of processes, procedures, and 
        technologies to secure container and hazardous material 
        transport, including the evaluation of regulations and 
        the impact of good security practices on commerce and 
        productivity.
            ``(14) Research, development, and technology 
        transfer related to asset management.''.
    (f) Facilitating Transportation Research and Technology 
Deployment Partnerships.--Section 502(c)(2) of such title (as 
redesignated by subsection (b) of this section) is amended to 
read as follows:
            ``(2) Cooperation, grants, contracts, and 
        agreements.--Notwithstanding any other provision of 
        law, the Secretary may directly initiate contracts, 
        cooperative research and development agreements (as 
        defined in section 12 of the Stevenson-Wydler 
        Technology Innovation Act of 1980 (15 U.S.C. 3710a)) to 
        fund, and accept funds from, the Transportation 
        Research Board of the National Research Council of the 
        National Academy of Sciences, State departments of 
        transportation, cities, counties, and their agents to 
        conduct joint transportation research and technology 
        efforts.''.
    (g) Exploratory Advanced Research Program.--Section 502(e) 
of such title (as redesignated by subsection (b) of this 
section) is amended to read as follows:
    ``(e) Exploratory Advanced Research.--
            ``(1) In general.--The Secretary shall establish an 
        exploratory advanced research program, consistent with 
        the surface transportation research and technology 
        development strategic plan developed under section 508 
        that addresses longer-term, higher-risk research with 
        potentially dramatic breakthroughs for improving the 
        durability, efficiency, environmental impact, 
        productivity, and safety (including bicycle and 
        pedestrian safety) aspects of highway and intermodal 
        transportation systems. In carrying out the program, 
        the Secretary shall strive to develop partnerships with 
        public and private sector entities.
            ``(2) Research areas.--In carrying out the program, 
        the Secretary may make grants and enter into 
        cooperative agreements and contracts in such areas of 
        surface transportation research and technology as the 
        Secretary determines appropriate, including the 
        following:
                    ``(A) Characterization of materials used in 
                highway infrastructure, including analytical 
                techniques, microstructure modeling, and the 
                deterioration processes.
                    ``(B) Assessment of the effects of 
                transportation decisions on human health.
                    ``(C) Development of surrogate measures of 
                safety.
                    ``(D) Environmental research.
                    ``(E) Data acquisition techniques for 
                system condition and performance monitoring.
                    ``(F) System performance data and 
                information processing needed to assess the 
                day-to-day operational performance of the 
                system in support of hour-to-hour operational 
                decisionmaking.''.
    (h) Funding.--Of the amounts made available by section 
5101(a) of this Act, $14,000,000 for each of fiscal years 2005 
through 2009 shall be available to carry out section 502(e) of 
such title.
    (i) Long-Term Pavement Performance Program.--
            (1) In general.--Section 502(f) of such title (as 
        redesignated by subsection (b) of this section) is 
        amended to read as follows:
    ``(f) Long-Term Pavement Performance Program.--
            ``(1) Authority.--The Secretary shall continue to 
        carry out, through September 30, 2009, tests, 
        monitoring, and data analysis under the long-term 
        pavement performance program.
            ``(2) Grants, cooperative agreements, and 
        contracts.--Under the program, the Secretary shall make 
        grants and enter into cooperative agreements and 
        contracts to--
                    ``(A) monitor, material-test, and evaluate 
                highway test sections in existence as of the 
                date of the grant, agreement, or contract;
                    ``(B) analyze the data obtained under 
                subparagraph (A); and
                    ``(C) prepare products to fulfill program 
                objectives and meet future pavement technology 
                needs.''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $10,120,000 for each of 
        fiscal years 2005 through 2009 shall be available to 
        carry out section 502(f) of such title.
    (j) Seismic Research.--
            (1) In general.--Section 502(g) of such title (as 
        redesignated by subsection (b) of this section) is 
        amended to read as follows:
    ``(g) Seismic Research.--The Secretary shall--
            ``(1) in consultation and cooperation with Federal 
        agencies participating in the National Earthquake 
        Hazards Reduction Program established by section 5 of 
        the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 
        7704), coordinate the conduct of seismic research;
            ``(2) take such actions as are necessary to ensure 
        that the coordination of the research is consistent 
        with--
                    ``(A) planning and coordination activities 
                of the National Institute of Standards and 
                Technology under section 5(b)(1) of that Act 
                (42 U.S.C. 7704(b)(1)); and
                    ``(B) the plan developed by the Director of 
                the National Institute of Standards and 
                Technology under section 8(b) of that Act (42 
                U.S.C. 7705b(b)); and
            ``(3) in cooperation with the Center for Civil 
        Engineering Research at the University of Nevada, Reno, 
        and the National Center for Earthquake Engineering 
        Research at the University of Buffalo, carry out a 
        seismic research program--
                    ``(A) to study the vulnerability of the 
                Federal-aid system and other surface 
                transportation systems to seismic activity;
                    ``(B) to develop and implement cost-
                effective methods to reduce the vulnerability; 
                and
                    ``(C) to conduct seismic research and 
                upgrade earthquake simulation facilities as 
                necessary to carry out the program.''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $2,500,000 for each of 
        fiscal years 2005 through 2009 shall be available to 
        carry out section 502(g) of such title.
    (k) Infrastructure Investment Needs Report.--Section 502 of 
such title is further amended by adding at the end the 
following:
    ``(h) Infrastructure Investment Needs Report.--
            ``(1) In general.--Not later than July 31, 2006, 
        and July 31 of every second year thereafter, the 
        Secretary shall submit to the Committee on Environment 
        and Public Works of the Senate and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives a report that describes--
                    ``(A) estimates of the future highway, 
                transit, and bridge needs of the United States; 
                and
                    ``(B) the backlog of current highway, 
                transit, and bridge needs.
            ``(2) Comparison with prior reports.--Each report 
        under paragraph (1) shall provide the means, including 
        all necessary information, to relate and compare the 
        conditions and service measures used in the previous 
        biennial reports.''.
    (l) Turner-Fairbank Highway Research Center.--Section 502 
of such title is further amended by adding at the end the 
following:
    ``(i) Turner-Fairbank Highway Research Center.--
            ``(1) In general.--The Secretary shall operate in 
        the Federal Highway Administration a Turner-Fairbank 
        Highway Research Center.
            ``(2) Uses of the center.--The Turner-Fairbank 
        Highway Research Center shall support--
                    ``(A) the conduct of highway research and 
                development related to new highway technology;
                    ``(B) the development of understandings, 
                tools, and techniques that provide solutions to 
                complex technical problems through the 
                development of economical and environmentally 
                sensitive designs, efficient and quality-
                controlled construction practices, and durable 
                materials; and
                    ``(C) the development of innovative highway 
                products and practices.''.
    (m) Biobased Transportation Research.--Of the amounts made 
available by section 5101(a)(1) of this Act, $12,500,000 for 
each of fiscal years 2006 through 2009, equally divided and 
available, shall be available to carry out biobased research of 
national importance at the National Biodiesel Board and at 
research centers identified in section 9011 of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 8109).

SEC. 5202. LONG-TERM BRIDGE PERFORMANCE PROGRAM; INNOVATIVE BRIDGE 
                    RESEARCH AND DEPLOYMENT PROGRAM.

    (a) Long-Term Bridge Performance Program.--
            (1) In general.--Section 502 of title 23, United 
        States Code, is further amended by adding at the end 
        the following:
    ``(j) Long-Term Bridge Performance Program.--
            ``(1) Authority.--The Secretary shall establish a 
        20-year long-term bridge performance program.
            ``(2) Grants, cooperative agreements, and 
        contracts.--Under the program, the Secretary shall make 
        grants and enter into cooperative agreements and 
        contracts to--
                    ``(A) monitor, material-test, and evaluate 
                test bridges;
                    ``(B) analyze the data obtained under 
                subparagraph (A); and
                    ``(C) prepare products to fulfill program 
                objectives and meet future bridge technology 
                needs.''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $7,750,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out section 502(j) of such title.
    (b) Innovative Bridge Research and Deployment Program.--
            (1) In general.--Section 503(b)(1) of such title is 
        amended to read as follows:
            ``(1) In general.--The Secretary shall establish 
        and carry out a program to promote, demonstrate, 
        evaluate, and document the application of innovative 
        designs, materials, and construction methods in the 
        construction, repair, and rehabilitation of bridges and 
        other highway structures.''.
            (2) Goals.--Section 503(b)(2) of such title is 
        amended to read as follows:
            ``(2) Goals.--The goals of the program shall 
        include--
                    ``(A) the development of new, cost-
                effective, innovative highway bridge 
                applications;
                    ``(B) the development of construction 
                techniques to increase safety and reduce 
                construction time and traffic congestion;
                    ``(C) the development of engineering design 
                criteria for innovative products, materials, 
                and structural systems for use in highway 
                bridges and structures;
                    ``(D) the reduction of maintenance costs 
                and life-cycle costs of bridges, including the 
                costs of new construction, replacement, or 
                rehabilitation of deficient bridges;
                    ``(E) the development of highway bridges 
                and structures that will withstand natural 
                disasters;
                    ``(F) the documentation and wide 
                dissemination of objective evaluations of the 
                performance and benefits of these innovative 
                designs, materials, and construction methods;
                    ``(G) the effective transfer of resulting 
                information and technology; and
                    ``(H) the development of improved methods 
                to detect bridge scour and economical bridge 
                foundation designs that will withstand bridge 
                scour.''.
            (3) Funding.--
                    (A) In general.--Of the amounts made 
                available by section 5101(a)(1) of this Act, 
                $13,100,000 for each of fiscal years 2005 
                through 2009 shall be available to carry out 
                section 503(b) of such title.
                    (B) High performance concrete bridge 
                technology research and deployment.--The 
                Secretary shall obligate $4,125,000 of the 
                amount described in subparagraph (A) for each 
                of fiscal years 2006 through 2009 to conduct 
                research and deploy technology related to high-
                performance concrete bridges.
    (c) High Performing Steel Bridge Research and Technology 
Transfer.--
            (1) In general.--The Secretary shall carry out a 
        program to demonstrate the application of high-
        performing steel in the construction and rehabilitation 
        of bridges.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $4,100,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
    (d) Steel Bridge Testing.--
            (1) In general.--The Secretary shall carry out a 
        program to test steel bridges using a nondestructive 
        technology that is able to detect growing cracks, 
        including subsurface flaws as small as 0.010 inches in 
        length or depth, in the bridges.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $1,250,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
            (3) Federal share.--The Federal share of the cost 
        of activities carried out in accordance with this 
        subsection shall be 80 percent.

SEC. 5203. TECHNOLOGY DEPLOYMENT.

    (a) Technology Deployment Program.--Section 503(a) of title 
23, United States Code, is amended--
            (1) in the subsection heading by striking 
        ``Initiatives and Partnerships'';
            (2) by striking paragraph (1) and inserting the 
        following:
            ``(1) Establishment.--The Secretary shall develop 
        and administer a national technology deployment 
        program.'';
            (3) by striking paragraph (7) and inserting the 
        following:
            ``(7) Grants, cooperative agreements, and 
        contracts.--
                    ``(A) In general.--Under the program, the 
                Secretary may make grants to, and enter into 
                cooperative agreements and contracts with, 
                States, other Federal agencies, universities 
                and colleges, private sector entities, and 
                nonprofit organizations to pay the Federal 
                share of the cost of research, development, and 
                technology transfer activities concerning 
                innovative materials.
                    ``(B) Applications.--To receive a grant 
                under this subsection, an entity described in 
                subparagraph (A) shall submit an application to 
                the Secretary. The application shall be in such 
                form and contain such information as the 
                Secretary may require. The Secretary shall 
                select and approve an application based on 
                whether the project that is the subject of the 
                grant meets the purpose of the program 
                described in paragraph (2).''; and
            (4) by striking paragraph (8) and inserting the 
        following:
            ``(8) Technology and information transfer.--The 
        Secretary shall ensure that the information and 
        technology resulting from research conducted under 
        paragraph (7) is made available to State and local 
        transportation departments and other interested parties 
        as specified by the Secretary.''.
    (b) Innovative Pavement Research and Deployment Program.--
            (1) In general.--Section 503 of such title is 
        further amended by adding at the end the following:
    ``(c) Innovative Pavement Research and Deployment 
Program.--
            ``(1) In general.--The Secretary shall establish 
        and implement a program to promote, demonstrate, 
        support, and document the application of innovative 
        pavement technologies, practices, performance, and 
        benefits.
            ``(2) Goals.--The goals of the innovative pavement 
        research and deployment program shall include--
                    ``(A) the deployment of new, cost-
                effective, innovative designs, materials, 
                recycled materials (including taconite tailings 
                and foundry sand), and practices to extend 
                pavement life and performance and to improve 
                customer satisfaction;
                    ``(B) the reduction of initial costs and 
                life-cycle costs of pavements, including the 
                costs of new construction, replacement, 
                maintenance, and rehabilitation;
                    ``(C) the deployment of accelerated 
                construction techniques to increase safety and 
                reduce construction time and traffic disruption 
                and congestion;
                    ``(D) the deployment of engineering design 
                criteria and specifications for innovative 
                practices, products, and materials for use in 
                highway pavements;
                    ``(E) the deployment of new nondestructive 
                and real-time pavement evaluation technologies 
                and techniques;
                    ``(F) the evaluation, refinement, and 
                documentation of the performance and benefits 
                of innovative technologies deployed to improve 
                life, performance, cost effectiveness, safety, 
                and customer satisfaction;
                    ``(G) effective technology transfer and 
                information dissemination to accelerate 
                implementation of innovative technologies and 
                to improve life, performance, cost 
                effectiveness, safety, and customer 
                satisfaction; and
                    ``(H) the development of designs and 
                materials to reduce storm water runoff.
            ``(3) Research to improve nhs pavement.--The 
        Secretary shall obligate for each of fiscal years 2006 
        through 2009 from funds made available to carry out 
        this subsection, $4,100,000 to conduct research to 
        improve asphalt pavement, $4,100,000 to conduct 
        research to improve concrete pavement, $4,100,000 to 
        conduct research to improve alternative materials used 
        in highways (including alternative materials used in 
        highway drainage applications), and $2,450,000 to 
        conduct research to improve aggregates used in highways 
        on the National Highway System.''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $22,625,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out section 503(c) of such title.
    (c) Safety Innovation Deployment Program.--
            (1) In general.--Section 503 of such title is 
        further amended by adding at the end the following:
    ``(d) Safety Innovation Deployment Program.--
            ``(1) In general.--The Secretary shall establish 
        and implement a program to demonstrate the application 
        of innovative technologies in highway safety.
            ``(2) Goals.--The goals of the program shall 
        include--
                    ``(A) the deployment and evaluation of 
                safety technologies and innovations at State 
                and local levels; and
                    ``(B) the deployment of best practices in 
                training, management, design, and planning.
            ``(3) Grants, cooperative agreements, and 
        contracts.--
                    ``(A) In general.--Under the program, the 
                Secretary shall make grants to, and enter into 
                cooperative agreements and contracts with, 
                States, other Federal agencies, universities 
                and colleges, private sector entities, and 
                nonprofit organizations for research, 
                development, and technology transfer for 
                innovative safety technologies.
                    ``(B) Applications.--To receive a grant 
                under this subsection, an entity described in 
                subparagraph (A) shall submit to the Secretary 
                an application at such time and containing such 
                information as the Secretary may require. The 
                Secretary shall select and approve an 
                application based on whether the project that 
                is the subject of the application meets the 
                goals of the program described in paragraph 
                (2).
            ``(4) Technology and information transfer.--The 
        Secretary shall take such action as is necessary to 
        ensure that the information and technology resulting 
        from research conducted under paragraph (3) is made 
        available to State and local transportation departments 
        and other interested parties as specified by the 
        Secretary.''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $12,750,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out section 503(d) of such title.
    (d) Authority to Purchase Promotional Items.--Section 503 
of such title is further amended by adding at the end the 
following:
    ``(e) Promotional Authority.--Funds authorized to be 
appropriated for necessary expenses for administration and 
operation of the Federal Highway Administration shall be 
available to purchase promotional items of nominal value for 
use in the recruitment of individuals and to promote the 
programs of the Federal Highway Administration.''.
    (e) Demonstration Projects and Studies.--
            (1) Wood composite materials demonstration 
        project.--Of the funds made available by section 
        5101(a)(1) of this Act, $1,000,000 for each of fiscal 
        years 2006 and 2007 shall be made available for 
        conducting a demonstration at the University of Maine 
        of the durability and potential effectiveness of wood 
        composite materials in multimodal transportation 
        facilities.
            (2) Asphalt reclamation study.--Of the funds made 
        available by section 5101(a)(1) of this Act, $1,500,000 
        for fiscal year 2006 shall be available for asphalt and 
        asphalt-related reclamation research at the South 
        Dakota School of Mines.
            (3) Alkali silica reactivity.--Of the funds made 
        available by section 5101(a)(1) of this Act, $2,450,000 
        shall be made available by the Secretary for each of 
        fiscal years 2006 through 2009 for further development 
        and deployment of techniques to prevent and mitigate 
        alkali silica reactivity.
            (4) Federal share.--The Federal share of the cost 
        of the projects--
                    (A) under paragraph (1) shall be 100 
                percent; and
                    (B) under paragraphs (2) and (3) shall be 
                the share applicable under section 120(b) of 
                such title unless otherwise specified or 
                determined by the Secretary.
    (f) Turner-Fairbank Facility.--Of the funds made available 
by section 5101(a)(1) of this Act, $625,000 shall be available 
for each of fiscal years 2006 through 2009 to provide for 
physical demonstrations of the ongoing work at the Turner-
Fairbank facility with respect to ultra-high performance 
concrete with ductility.

SEC. 5204. TRAINING AND EDUCATION.

    (a) National Highway Institute.--
            (1) Courses.--Section 504(a)(3) of title 23, United 
        States Code, is amended to read as follows:
            ``(3) Courses.--
                    ``(A) In general.--The Institute shall--
                            ``(i) develop or update existing 
                        courses in asset management, including 
                        courses that include such components 
                        as--
                                    ``(I) the determination of 
                                life-cycle costs;
                                    ``(II) the valuation of 
                                assets;
                                    ``(III) benefit-to-cost 
                                ratio calculations; and
                                    ``(IV) objective 
                                decisionmaking processes for 
                                project selection; and
                            ``(ii) continually develop courses 
                        relating to the application of emerging 
                        technologies for--
                                    ``(I) transportation 
                                infrastructure applications and 
                                asset management;
                                    ``(II) intelligent 
                                transportation systems;
                                    ``(III) operations 
                                (including security 
                                operations);
                                    ``(IV) the collection and 
                                archiving of data;
                                    ``(V) expediting the 
                                planning and development of 
                                transportation projects; and
                                    ``(VI) the intermodal 
                                movement of individuals and 
                                freight.
                    ``(B) Additional courses.--In addition to 
                the courses developed under subparagraph (A), 
                the Institute, in consultation with State 
                transportation departments, metropolitan 
                planning organizations, and the American 
                Association of State Highway and Transportation 
                Officials, may develop courses relating to 
                technology, methods, techniques, engineering, 
                construction, safety, maintenance, 
                environmental mitigation and compliance, 
                regulations, management, inspection, and 
                finance.
                    ``(C) Revision of courses offered.--The 
                Institute shall periodically--
                            ``(i) review the course inventory 
                        of the Institute; and
                            ``(ii) revise or cease to offer 
                        courses based on course content, 
                        applicability, and need.''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(2) of this Act, $9,600,000 for each of 
        fiscal years 2005 through 2009 shall be available to 
        carry out section 504(a) of such title.
    (b) Local Technical Assistance Program.--Section 504(b) of 
such title is amended to read as follows:
    ``(b) Local Technical Assistance Program.--
            ``(1) Authority.--The Secretary shall carry out a 
        local technical assistance program that will provide 
        access to surface transportation technology to--
                    ``(A) highway and transportation agencies 
                in urbanized and rural areas;
                    ``(B) contractors that perform work for the 
                agencies; and
                    ``(C) infrastructure security staff.
            ``(2) Grants, cooperative agreements, and 
        contracts.--The Secretary may make grants and enter 
        into cooperative agreements and contracts to provide 
        education and training, technical assistance, and 
        related support services to--
                    ``(A) assist rural, local transportation 
                agencies and tribal governments, and the 
                consultants and construction personnel working 
                for the agencies and governments, to--
                            ``(i) develop and expand expertise 
                        in road and transportation areas 
                        (including pavement, bridge, concrete 
                        structures, intermodal connections, 
                        safety management systems, intelligent 
                        transportation systems, incident 
                        response, operations, and traffic 
                        safety countermeasures);
                            ``(ii) improve roads and bridges;
                            ``(iii) enhance--
                                    ``(I) programs for the 
                                movement of passengers and 
                                freight; and
                                    ``(II) intergovernmental 
                                transportation planning and 
                                project selection; and
                            ``(iv) deal effectively with 
                        special transportation-related problems 
                        by preparing and providing training 
                        packages, manuals, guidelines, and 
                        technical resource materials;
                    ``(B) develop technical assistance for 
                tourism and recreational travel;
                    ``(C) identify, package, and deliver 
                transportation technology and traffic safety 
                information to local jurisdictions to assist 
                urban transportation agencies in developing and 
                expanding their ability to deal effectively 
                with transportation-related problems 
                (particularly the promotion of regional 
                cooperation);
                    ``(D) operate, in cooperation with State 
                transportation departments and universities--
                            ``(i) local technical assistance 
                        program centers designated to provide 
                        transportation technology transfer 
                        services to rural areas and to 
                        urbanized areas; and
                            ``(ii) local technical assistance 
                        program centers designated to provide 
                        transportation technical assistance to 
                        tribal governments; and
                    ``(E) allow local transportation agencies 
                and tribal governments, in cooperation with the 
                private sector, to enhance new technology 
                implementation.
            ``(3) Federal share.--The Federal share of the cost 
        of activities carried out by the tribal technical 
        assistance centers under paragraph (2)(D)(ii) shall be 
        100 percent. ''.
    (c) Funding.--Of the funds made available by section 
5101(a)(2) of this Act, $11,100,000 for each of fiscal years 
2005 through 2009 shall be available to carry out section 
504(b) of such title.
    (d) Garrett A. Morgan Technology and Transportation 
Education Program.--
            (1) In general.--Section 504 of such title, is 
        further amended by adding at the end the following new 
        subsection:
    ``(d) Garrett A. Morgan Technology and Transportation 
Education Program.--
            ``(1) In general.--The Secretary shall establish 
        the Garrett A. Morgan Technology and Transportation 
        Education Program to improve the preparation of 
        students, particularly women and minorities, in 
        science, technology, engineering, and mathematics 
        through curriculum development and other activities 
        related to transportation.
            ``(2) Authorized activities.--The Secretary shall 
        award grants under this subsection on the basis of 
        competitive peer review. Grants awarded under this 
        subsection may be used for enhancing science, 
        technology, engineering, and mathematics at the 
        elementary and secondary school level through such 
        means as--
                    ``(A) internships that offer students 
                experience in the transportation field;
                    ``(B) programs that allow students to spend 
                time observing scientists and engineers in the 
                transportation field; and
                    ``(C) developing relevant curriculum that 
                uses examples and problems related to 
                transportation.
            ``(3) Application and review procedures.--
                    ``(A) In general.--An entity described in 
                subparagraph (C) seeking funding under this 
                subsection shall submit an application to the 
                Secretary at such time, in such manner, and 
                containing such information as the Secretary 
                may require. Such application, at a minimum, 
                shall include a description of how the funds 
                will be used to serve the purposes described in 
                paragraph (2).
                    ``(B) Priority.--In making awards under 
                this subsection, the Secretary shall give 
                priority to applicants that will encourage the 
                participation of women and minorities.
                    ``(C) Eligibility.--Local educational 
                agencies and State educational agencies, which 
                may enter into a partnership agreement with 
                institutions of higher education, businesses, 
                or other entities, shall be eligible to apply 
                for grants under this subsection.
            ``(4) Definitions.--In this subsection, the 
        following definitions apply:
                    ``(A) Institution of higher education.--The 
                term `institution of higher education' has the 
                meaning given that term in section 101 of the 
                Higher Education Act of 1965 (20 U.S.C. 1001).
                    ``(B) Local educational agency.--The term 
                `local educational agency' has the meaning 
                given that term in section 9101 of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801).
                    ``(C) State educational agency.--The term 
                `State educational agency' has the meaning 
                given that term in section 9101 of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 7801).''.
            (2) Funding.--Of the amounts made available by 
        section 5101(a)(2) of this Act, $1,250,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out section 504(d) of such title.
            (3) Federal share.--The Federal share of the cost 
        of activities carried out in accordance with this 
        section 504(d) of such title shall be 100 percent.
    (e) Surface Transportation Workforce Development, Training, 
and Education.--Section 504 of such title is further amended by 
adding at the end the following:
    ``(e) Surface Transportation Workforce Development, 
Training, and Education.--
            ``(1) Funding.--Subject to project approval by the 
        Secretary, a State may obligate funds apportioned to 
        the State under sections 104(b)(1), 104(b)(2), 
        104(b)(3), 104(b)(4), and 144(e) for surface 
        transportation workforce development, training, and 
        education, including--
                    ``(A) tuition and direct educational 
                expenses, excluding salaries, in connection 
                with the education and training of employees of 
                State and local transportation agencies;
                    ``(B) employee professional development;
                    ``(C) student internships;
                    ``(D) university or community college 
                support; and
                    ``(E) education activities, including 
                outreach, to develop interest and promote 
                participation in surface transportation 
                careers.
            ``(2) Federal share.--The Federal share of the cost 
        of activities carried out in accordance with this 
        subsection shall be 100 percent.
            ``(3) Surface transportation workforce development, 
        training, and education defined.--In this subsection, 
        the term `surface transportation workforce development, 
        training, and education' means activities associated 
        with surface transportation career awareness, student 
        transportation career preparation, and training and 
        professional development for surface transportation 
        workers, including activities for women and minorities.
    ``(f) Transportation Education Development Pilot Program.--
            ``(1) Establishment.--The Secretary shall establish 
        a program to make grants to institutions of higher 
        education that, in partnership with industry or State 
        departments of transportation, will develop, test, and 
        revise new curricula and education programs to train 
        individuals at all levels of the transportation 
        workforce.
            ``(2) Selection of grant recipients.--In selecting 
        applications for awards under this subsection, the 
        Secretary shall consider--
                    ``(A) the degree to which the new curricula 
                or education program meets the specific needs 
                of a segment of the transportation industry, 
                States, or regions;
                    ``(B) providing for practical experience 
                and on-the-job training;
                    ``(C) proposals oriented toward 
                practitioners in the field rather than the 
                support and growth of the research community;
                    ``(D) the degree to which the new curricula 
                or program will provide training in areas other 
                than engineering, such as business 
                administration, economics, information 
                technology, environmental science, and law;
                    ``(E) programs or curricula in 
                nontraditional departments that train 
                professionals for work in the transportation 
                field, such as materials, information 
                technology, environmental science, urban 
                planning, and industrial technology; and
                    ``(F) the commitment of industry or a 
                State's department of transportation to the 
                program.
            ``(3) Limitations.--The amount of a grant under 
        this subsection shall not exceed $300,000 per year. 
        After a recipient has received 3 years of Federal 
        funding under this subsection, Federal funding may 
        equal not more than 75 percent of a grantee's program 
        costs.''.
    (f) Funding.--
            (1) In general.--Of the amounts made available by 
        section 5101(a)(2) of this Act, $1,875,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out section 504(f) of such title.
            (2) Federal share.--The Federal share of the cost 
        of activities carried out in accordance with section 
        504(f) of such title shall be 100 percent.
    (g) Transportation Technology Innovations.--
            (1) Fundamental properties of asphalts and modified 
        asphalts.--The Secretary shall continue to carry out 
        section 5117(b)(5) of the Transportation Equity Act for 
        the 21st Century (112 Stat. 450).
            (2) Transportation, economic, and land use 
        system.--The Secretary shall continue to carry out 
        section 5117(b)(7) of the Transportation Equity Act for 
        the 21st Century (112 Stat. 450).
            (3) Funding.--Of the amounts made available by 
        section 5101(a)(1) of this Act, for each of fiscal 
        years 2005 through 2009 $4,200,000 shall be available 
        to carry out paragraph (1) and $1,000,000 shall be 
        available to carry out paragraph (2).
    (h) Freight Planning Capacity Building.--
            (1) In general.--Section 504 of title 23, United 
        States Code, is further amended by adding at the end 
        the following:
    ``(g) Freight Capacity Building Program.--
            ``(1) Establishment.--The Secretary shall establish 
        a freight planning capacity building initiative to 
        support enhancements in freight transportation planning 
        in order to--
                    ``(A) better target investments in freight 
                transportation systems to maintain efficiency 
                and productivity; and
                    ``(B) strengthen the decisionmaking 
                capacity of State transportation departments 
                and local transportation agencies with respect 
                to freight transportation planning and systems.
            ``(2) Agreements.--The Secretary shall enter into 
        agreements to support and carry out administrative and 
        management activities relating to the governance of the 
        freight planning capacity initiative.
            ``(3) Stakeholder involvement.--In carrying out 
        this section, the Secretary shall consult with the 
        Association of Metropolitan Planning Organizations, the 
        American Association of State Highway and 
        Transportation Officials, and other freight planning 
        stakeholders, including the other Federal agencies, 
        State transportation departments, local governments, 
        nonprofit entities, academia, and the private sector.
            ``(4) Eligible activities.--The freight planning 
        capacity building initiative shall include research, 
        training, and education in the following areas:
                    ``(A) The identification and dissemination 
                of best practices in freight transportation.
                    ``(B) Providing opportunities for freight 
                transportation staff to engage in peer 
                exchange.
                    ``(C) Refinement of data and analysis tools 
                used in conjunction with assessing freight 
                transportation needs.
                    ``(D) Technical assistance to State 
                transportation departments and local 
                transportation agencies reorganizing to address 
                freight transportation issues.
                    ``(E) Facilitating relationship building 
                between governmental and private entities 
                involved in freight transportation.
                    ``(F) Identifying ways to target the 
                capacity of State transportation departments 
                and local transportation agencies to address 
                freight considerations in operations, security, 
                asset management, and environmental excellence 
                in connection with long-range multimodal 
                transportation planning and project 
                implementation.
            ``(5) Federal share.--The Federal share of the cost 
        of an activity carried out under this section shall be 
        up to 100 percent, and such funds shall remain 
        available until expended.
            ``(6) Use of funds.--Funds made available for the 
        program established under this subsection may be used 
        for research, program development, information 
        collection and dissemination, and technical assistance. 
        The Secretary may use such funds independently or make 
        grants or to and enter into contracts and cooperative 
        agreements with a Federal agency, State agency, local 
        agency, federally recognized Indian tribal government 
        or tribal consortium, authority, association, nonprofit 
        or for-profit corporation, or institution of higher 
        education, to carry out the purposes of this 
        subsection.''.
            (2) Funding.--Of the amounts made available under 
        section 5101(a)(2) of this Act, $875,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out section 504(g) of such title.
    (i) Eisenhower Transportation Fellowship Program.--Of the 
amounts made available by section 5101(a)(2) of this Act, 
$2,200,000 for each of fiscal years 2005 through 2009 shall be 
available to carry out section 504(c)(2) of such title.

SEC. 5205. STATE PLANNING AND RESEARCH.

    Section 505 of title 23, United States Code, is amended--
            (1) in subsection (a) by adding at the end the 
        following--
            ``(7) The conduct of activities relating to the 
        planning of real-time monitoring elements.''; and
            (2) in subsection (d) by striking ``for the same'' 
        and all that follows through the period and inserting 
        the following: ``for the period described in section 
        118(b)(2).''.

SEC. 5206. INTERNATIONAL HIGHWAY TRANSPORTATION OUTREACH PROGRAM.

    (a) In General.--Section 506 of title 23, United States 
Code, is amended to read as follows:

``Sec. 506. International highway transportation outreach program

    ``(a) Establishment.--The Secretary may establish an 
international highway transportation outreach program--
            ``(1) to inform the United States highway community 
        of technological innovations in foreign countries that 
        could significantly improve highway transportation in 
        the United States;
            ``(2) to promote United States highway 
        transportation expertise, goods, and services in 
        foreign countries; and
            ``(3) to increase transfers of United States 
        highway transportation technology to foreign countries.
    ``(b) Activities.--Activities carried out under the program 
may include--
            ``(1) the development, monitoring, assessment, and 
        dissemination in the United States of information about 
        highway transportation innovations in foreign countries 
        that could significantly improve highway transportation 
        in the United States;
            ``(2) research, development, demonstration, 
        training, and other forms of technology transfer and 
        exchange;
            ``(3) the provision to foreign countries, through 
        participation in trade shows, seminars, expositions, 
        and other similar activities, of information relating 
        to the technical quality of United States highway 
        transportation goods and services;
            ``(4) the offering of technical services of the 
        Federal Highway Administration that cannot be readily 
        obtained from private sector firms in the United States 
        for incorporation into the proposals of those firms 
        undertaking highway transportation projects outside the 
        United States, if the costs of the technical services 
        will be recovered under the terms of the project;
            ``(5) the conduct of studies to assess the need 
        for, or feasibility of, highway transportation 
        improvements in foreign countries; and
            ``(6) the gathering and dissemination of 
        information on foreign transportation markets and 
        industries.
    ``(c) Cooperation.--The Secretary may carry out this 
section in cooperation with any appropriate--
            ``(1) Federal, State, or local agency;
            ``(2) authority, association, institution, or 
        organization;
            ``(3) for-profit or nonprofit corporation;
            ``(4) national or international entity;
            ``(5) foreign country; or
            ``(6) person.
    ``(d) Funds.--
            ``(1) Contributions.--Funds available to carry out 
        this section shall include funds deposited by any 
        cooperating organization or person into a special 
        account of the Treasury established for this purpose.
            ``(2) Eligible uses of funds.--The funds deposited 
        into the account, and other funds available to carry 
        out this section, shall be available to cover the cost 
        of any activity eligible under this section, including 
        the cost of--
                    ``(A) promotional materials;
                    ``(B) travel;
                    ``(C) reception and representation 
                expenses; and
                    ``(D) salaries and benefits.
            ``(3) Reimbursements for salaries and benefits.--
        Reimbursements for salaries and benefits of Department 
        employees providing services under this section shall 
        be credited to the account.
    ``(e) Report.--For each fiscal year, the Secretary shall 
submit to the Committee on Environment and Public Works of the 
Senate and the Committee on Transportation and Infrastructure 
of the House of Representatives a report that describes the 
destinations and individual trip costs of international travel 
conducted in carrying out activities described in this 
section.''.
    (b) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $300,000 for each of fiscal years 2005 
through 2009 shall be available to carry out section 506 of 
such title.

SEC. 5207. SURFACE TRANSPORTATION ENVIRONMENT AND PLANNING COOPERATIVE 
                    RESEARCH PROGRAM.

    (a) In General.--Section 507 of title 23, United States 
Code, is amended to read as follows:

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

    ``(a) In General.--The Secretary shall establish and carry 
out a surface transportation-environmental cooperative research 
program.
    ``(b) Contents.--The program carried out under this section 
may include research--
            ``(1) to develop more accurate models for 
        evaluating transportation control measures and 
        transportation system designs that are appropriate for 
        use by State and local governments (including 
        metropolitan planning organizations) in designing 
        implementation plans to meet Federal, State, and local 
        environmental requirements;
            ``(2) to improve understanding of the factors that 
        contribute to the demand for transportation;
            ``(3) to develop indicators of economic, social, 
        and environmental performance of transportation systems 
        to facilitate analysis of potential alternatives;
            ``(4) to meet additional priorities as determined 
        by the Secretary in the strategic planning process 
        under section 508; and
            ``(5) to refine, through the conduct of workshops, 
        symposia, and panels, and in consultation with 
        stakeholders (including the Department of Energy, the 
        Environmental Protection Agency, and other appropriate 
        Federal and State agencies and associations) the scope 
        and research emphases of the program.
    ``(c) Program Administration.--The Secretary shall--
            ``(1) administer the program established under this 
        section; and
            ``(2) ensure, to the maximum extent practicable, 
        that--
                    ``(A) the best projects and researchers are 
                selected to conduct research in the priority 
                areas described in subsection (b)--
                            ``(i) on the basis of merit of each 
                        submitted proposal; and
                            ``(ii) through the use of open 
                        solicitations and selection by a panel 
                        of appropriate experts;
                    ``(B) a qualified, permanent core staff 
                with the ability and expertise to manage a 
                large multiyear budget is used;
                    ``(C) the stakeholders are involved in the 
                governance of the program, at the executive, 
                overall program, and technical levels, through 
                the use of expert panels and committees; and
                    ``(D) there is no duplication of research 
                effort between the program established under 
                this section and the new strategic highway 
                research program established under section 510.
    ``(d) National Academy of Sciences.--The Secretary may make 
grants to, and enter into cooperative agreements with, the 
National Academy of Sciences to carry out such activities 
relating to the research, technology, and technology transfer 
activities described in subsections (b) and (c) as the 
Secretary determines to be appropriate.''.
    (b) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $16,875,000 for each of fiscal years 
2006 through 2009 shall be available to carry out section 507 
of such title.
    (c) Conforming Amendment.--The analysis for chapter 5 of 
such title is amended by striking the item relating to section 
507 and inserting the following:

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

SEC. 5208. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC PLANNING.

    (a) In General.--Section 508 of title 23, United States 
Code, is amended to read as follows:

``Sec. 508. Transportation research and development strategic planning

    ``(a) In General.--
            ``(1) Development.--Not later than 1 year after the 
        date of enactment of the SAFETEA-LU, the Secretary 
        shall develop a 5-year transportation research and 
        development strategic plan to guide Federal 
        transportation research and development activities. 
        This plan shall be consistent with section 306 of title 
        5, sections 1115 and 1116 of title 31, and any other 
        research and development plan within the Department of 
        Transportation.
            ``(2) Contents.--The strategic plan developed under 
        paragraph (1) shall--
                    ``(A) describe the primary purposes of the 
                transportation research and development 
                program, which shall include, at a minimum--
                            ``(i) reducing congestion and 
                        improving mobility;
                            ``(ii) promoting safety;
                            ``(iii) promoting security;
                            ``(iv) protecting and enhancing the 
                        environment;
                            ``(v) preserving the existing 
                        transportation system; and
                            ``(vi) improving the durability and 
                        extending the life of transportation 
                        infrastructure;
                    ``(B) for each purpose, list the primary 
                research and development topics that the 
                Department intends to pursue to accomplish that 
                purpose, which may include the fundamental 
                research in the physical and natural sciences, 
                applied research, technology development, and 
                social science research intended for each 
                topic; and
                    ``(C) for each research and development 
                topic, describe--
                            ``(i) the anticipated annual 
                        funding levels for the period covered 
                        by the strategic plan; and
                            ``(ii) the additional information 
                        the Department expects to gain at the 
                        end of the period covered by the 
                        strategic plan as a result of the 
                        research and development in that topic 
                        area.
            ``(3) Considerations.--In developing the strategic 
        plan, the Secretary shall ensure that the plan--
                    ``(A) reflects input from a wide range of 
                stakeholders;
                    ``(B) includes and integrates the research 
                and development programs of all the 
                Department's operating administrations, 
                including aviation, transit, rail, and 
                maritime; and
                    ``(C) takes into account how research and 
                development by other Federal, State, private 
                sector, and nonprofit institutions contributes 
                to the achievement of the purposes identified 
                under paragraph (2)(A), and avoids unnecessary 
                duplication with these efforts.
            ``(4) Performance plans and reports.--In reports 
        submitted under sections 1115 and 1116 of title 31, the 
        Secretary shall include--
                    ``(A) a summary of the Federal 
                transportation research and development 
                activities for the previous fiscal year in each 
                topic area;
                    ``(B) the amount of funding spent in each 
                topic area;
                    ``(C) a description of the extent to which 
                the research and development is meeting the 
                expectations set forth in paragraph (2)(C)(ii); 
                and
                    ``(D) any amendments to the strategic plan.
    ``(b) Annual Report.--The Secretary shall submit to 
appropriate committees of Congress an annual report, in 
conjunction with the President's annual budget request as set 
forth in section 1105 of title 31, describing the amount spent 
in the last completed fiscal year on transportation research 
and development and the amount proposed in the current budget 
for transportation research and development.
    ``(c) National Research Council Review.--The Secretary 
shall enter into an agreement for the review by the National 
Research Council of the details of each--
            ``(1) strategic plan under this section;
            ``(2) performance plan required under section 1115 
        of title 31; and
            ``(3) program performance report required under 
        section 1116 of title 31, with respect to 
        transportation research and development.''.
    (b) Conforming Amendment.--The analysis for chapter 5 of 
such title is amended by striking the item relating to section 
508 and inserting the following:

``508. Transportation research and development strategic planning.''.

SEC. 5209. NATIONAL COOPERATIVE FREIGHT TRANSPORTATION RESEARCH 
                    PROGRAM.

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

``Sec. 509. National cooperative freight transportation research 
                    program

    ``(a) Establishment.--The Secretary shall establish and 
support a national cooperative freight transportation research 
program.
    ``(b) Agreement.--The Secretary shall enter into an 
agreement with the National Academy of Sciences to support and 
carry out administrative and management activities relating to 
the governance of the national cooperative freight 
transportation research program.
    ``(c) Advisory Committee.--The National Academy of Sciences 
shall select an advisory committee consisting of a 
representative cross-section of freight stakeholders, including 
the Department of Transportation, other Federal agencies, State 
transportation departments, local governments, nonprofit 
entities, academia, and the private sector.
    ``(d) Governance.--The national cooperative freight 
transportation research program established under this section 
shall include the following administrative and management 
elements:
            ``(1) National research agenda.--The advisory 
        committee, in consultation with interested parties, 
        shall recommend a national research agenda for the 
        program. The agenda shall include a multiyear strategic 
        plan.
            ``(2) Involvement.--Interested parties may--
                    ``(A) submit research proposals to the 
                advisory committee;
                    ``(B) participate in merit reviews of 
                research proposals and peer reviews of research 
                products; and
                    ``(C) receive research results.
            ``(3) Open competition and peer review of research 
        proposals.--The National Academy of Sciences may award 
        research contracts and grants under the program through 
        open competition and merit review conducted on a 
        regular basis.
            ``(4) Evaluation of research.--
                    ``(A) Peer review.--Research contracts and 
                grants under the program may allow peer review 
                of the research results.
                    ``(B) Programmatic evaluations.--The 
                National Academy of Sciences may conduct 
                periodic programmatic evaluations on a regular 
                basis of research contracts and grants.
            ``(5) Dissemination of research findings.--The 
        National Academy of Sciences shall disseminate research 
        findings to researchers, practitioners, and 
        decisionmakers, through conferences and seminars, field 
        demonstrations, workshops, training programs, 
        presentations, testimony to government officials, the 
        World Wide Web, publications for the general public, 
        and other appropriate means.
    ``(e) Contents.--The national research agenda required 
under subsection (d)(1) shall include research in the following 
areas:
            ``(1) Techniques for estimating and quantifying 
        public benefits derived from freight transportation 
        projects.
            ``(2) Alternative approaches to calculating the 
        contribution of truck and rail traffic to congestion on 
        specific highway segments.
            ``(3) The feasibility of consolidating origins and 
        destinations for freight movement.
            ``(4) Methods for incorporating estimates of 
        international trade into landside transportation 
        planning.
            ``(5) The use of technology applications to 
        increase capacity of highway lanes dedicated to truck-
        only traffic.
            ``(6) Development of physical and policy 
        alternatives for separating car and truck traffic.
            ``(7) Ways to synchronize infrastructure 
        improvements with freight transportation demand.
            ``(8) The effect of changing patterns of freight 
        movement on transportation planning decisions relating 
        to rest areas.
            ``(9) Other research areas to identify and address 
        emerging and future research needs related to freight 
        transportation by all modes.
    ``(f) Funding.--
            ``(1) Federal share.--The Federal share of the cost 
        of an activity carried out under this section shall be 
        up to 100 percent.
            ``(2) Use of non-federal funds.--In addition to 
        using funds authorized for this section, the National 
        Academy of Sciences may seek and accept additional 
        funding sources from public and private entities 
        capable of accepting funding from the Department of 
        Transportation, States, local governments, nonprofit 
        foundations, and the private sector.
            ``(3) Period of availability.--Amounts made 
        available to carry out this section shall remain 
        available until expended.''.
    (b) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $3,750,000 for each of fiscal years 
2006 through 2009 shall be available to carry out section 509 
of such title.
    (c) Conforming Amendment.--The analysis for such chapter is 
further amended by adding at the end the following:

``509. National cooperative freight transportation research program.''.

SEC. 5210. FUTURE STRATEGIC HIGHWAY RESEARCH PROGRAM.

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

``Sec. 510. Future strategic highway research program

    ``(a) Establishment.--The Secretary, in consultation with 
the American Association of State Highway and Transportation 
Officials, shall establish and carry out, acting through the 
National Research Council of the National Academy of Sciences, 
the future strategic highway research program.
    ``(b) Cooperative Agreements.--The Secretary may make 
grants to, and enter into cooperative agreements with, the 
American Association of State Highway and Transportation 
Officials and the National Academy of Sciences to carry out 
such activities under this section as the Secretary determines 
are appropriate.
    ``(c) Program Priorities.--
            ``(1) Program elements.--The program established 
        under this section shall be based on the National 
        Research Council Special Report 260, entitled 
        `Strategic Highway Research: Saving Lives, Reducing 
        Congestion, Improving Quality of Life' and the results 
        of the detailed planning work subsequently carried out 
        in 2002 and 2003 to identify the research areas through 
        National Cooperative Research Program Project 20-58. 
        The research program shall include an analysis of the 
        following:
                    ``(A) Renewal of aging highway 
                infrastructure with minimal impact to users of 
                the facilities.
                    ``(B) Driving behavior and likely crash 
                causal factors to support improved 
                countermeasures.
                    ``(C) Reducing highway congestion due to 
                nonrecurring congestion.
                    ``(D) Planning and designing new road 
                capacity to meet mobility, economic, 
                environmental, and community needs.
            ``(2) Dissemination of results.--The research 
        results of the program, expressed in terms of 
        technologies, methodologies, and other appropriate 
        categorizations, shall be disseminated to practicing 
        engineers for their use, as soon as practicable.
    ``(d) Program Administration.--In carrying out the program 
under this section, the National Research Council shall ensure, 
to the maximum extent practicable, that--
            ``(1) projects and researchers are selected to 
        conduct research for the program on the basis of merit 
        and open solicitation of proposals and review by panels 
        of appropriate experts;
            ``(2) State department of transportation officials 
        and other stakeholders, as appropriate, are involved in 
        the governance of the program at the overall program 
        level and technical level through the use of expert 
        panels and committees;
            ``(3) the Council acquires a qualified, permanent 
        core staff with the ability and expertise to manage the 
        program and multiyear budget; and
            ``(4) there is no duplication of research effort 
        between the program and any other research effort of 
        the Department.
    ``(e) Report on Implementation of Results.--
            ``(1) Report.--The Transportation Research Board of 
        the National Research Council shall complete a report 
        on the strategies and administrative structure to be 
        used for implementation of the results of the future 
        strategic highway research program.
            ``(2) Components.--The report under paragraph (1) 
        shall include with respect to the program--
                    ``(A) an identification of the most 
                promising results of research under the program 
                (including the persons most likely to use the 
                results);
                    ``(B) a discussion of potential incentives 
                for, impediments to, and methods of, 
                implementing those results;
                    ``(C) an estimate of costs of 
                implementation of those results; and
                    ``(D) recommendations on methods by which 
                implementation of those results should be 
                conducted, coordinated, and supported in future 
                years, including a discussion of the 
                administrative structure and organization best 
                suited to carry out those recommendations.
            ``(3) Consultation.--In developing the report, the 
        Transportation Research Board shall consult with a wide 
        variety of stakeholders, including--
                    ``(A) the Federal Highway Administration;
                    ``(B) the National Highway Traffic Safety 
                Administration; and
                    ``(C) the American Association of State 
                Highway and Transportation Officials.
            ``(4) Submission.--Not later than February 1, 2009, 
        the report shall be submitted to the Committee on 
        Environment and Public Works of the Senate and the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives.
    ``(f) Funding.--
            ``(1) Federal share.--The Federal share of the cost 
        of an activity carried out using amounts made available 
        under a grant or cooperative agreement under this 
        section shall be 100 percent, and such funds shall 
        remain available until expended.
            ``(2) Advance payments.--The Secretary may make 
        advance payments as necessary to carry out the program 
        under this section.
    ``(g) Limitation of Remedies.--
            ``(1) Same remedy as if united states.--The remedy 
        against the United States provided by sections 1346(b) 
        and 2672 of title 28 for injury, loss of property, 
        personal injury, or death shall apply to any claim 
        against the National Academy of Sciences for money 
        damages for injury, loss of property, personal injury, 
        or death caused by any negligent or wrongful act or 
        omission by employees and individuals described in 
        paragraph (3) arising from activities conducted under 
        or in connection with this section. Any such claim 
        shall be subject to the limitations and exceptions 
        which would be applicable to such claim if such claim 
        were against the United States. With respect to any 
        such claim, the Secretary shall be treated as the head 
        of the appropriate Federal agency for purposes of 
        sections 2672 and 2675 of title 28.
            ``(2) Exclusiveness of remedy.--The remedy referred 
        to in paragraph (1) shall be exclusive of any other 
        civil action or proceeding for the purpose of 
        determining liability arising from any such act or 
        omission without regard to when the act or omission 
        occurred.
            ``(3) Treatment.--Employees of the National Academy 
        of Sciences and other individuals appointed by the 
        president of the National Academy of Sciences and 
        acting on its behalf in connection with activities 
        carried out under this section shall be treated as if 
        they are employees of the Federal Government under 
        section 2671 of title 28 for purposes of a civil action 
        or proceeding with respect to a claim described in 
        paragraph (1). The civil action or proceeding shall 
        proceed in the same manner as any proceeding under 
        chapter 171 of title 28 or action against the United 
        States filed pursuant to section 1346(b) of title 28 
        and shall be subject to the limitations and exceptions 
        applicable to such a proceeding or action.
            ``(4) Sources of payments.--Payment of any award, 
        compromise, or settlement of a civil action or 
        proceeding with respect to a claim described in 
        paragraph (1) shall be paid first out of insurance 
        maintained by the National Academy of Sciences, second 
        from funds made available to carry out this section, 
        and then from sums made available under section 1304 of 
        title 31. For purposes of such section, such an award, 
        compromise, or settlement shall be deemed to be a 
        judgment, award, or settlement payable under section 
        2414 or 2672 of title 28. The Secretary may establish a 
        reserve of funds to carry out this section for making 
        payments under this paragraph.''.
    (b) Programmatic Evaluations.--Not later than 3 years after 
the first research and development project grants, cooperative 
agreements, or contracts are awarded under section 510 of title 
23, United States Code, the Comptroller General shall review 
the program under such section and recommend improvements to 
the program. The review shall assess the degree to which 
projects funded under such section have addressed the research 
and development topics identified in the Transportation 
Research Board Special Report 260, including identifying those 
topics that have not yet been addressed.
    (c) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $51,250,000 for each of fiscal years 
2006 through 2009, shall be available to carry out section 510 
of such title.
    (d) Conforming Amendment.--The analysis for chapter 5 of 
such title is further amended by adding at the end the 
following:

``510. Future strategic highway research program.''.

SEC. 5211. MULTISTATE CORRIDOR OPERATIONS AND MANAGEMENT.

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

``Sec. 511. Multistate corridor operations and management

    ``(a) In General.--The Secretary shall encourage multistate 
cooperative agreements, coalitions, or other arrangements to 
promote regional cooperation, planning, and shared project 
implementation for programs and projects to improve 
transportation system management and operations.
    ``(b) Interstate Route 95 Corridor Coalition Transportation 
Systems Management and Operations.--The Secretary shall make 
grants under this subsection to States to continue intelligent 
transportation system management and operations in the 
Interstate Route 95 corridor coalition region initiated under 
the Intermodal Surface Transportation Efficiency Act of 1991 
(Public Law 102-240).''.
    (b) Funding.--Of the amounts made available under section 
5101(a)(5) of this Act $7,000,000 for each of fiscal years 2005 
through 2009 shall be available to carry out section 511 of 
such title.
    (c) Conforming Amendment.--The analysis for such chapter is 
further amended by adding at the end the following:

``511. Multistate corridor operations and management.''.

         Subtitle C--Intelligent Transportation System Research

SEC. 5301. NATIONAL ITS PROGRAM PLAN.

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

``Sec. 512. National ITS program plan

    ``(a) In General.--
            ``(1) Updates.--Not later than 1 year after the 
        date of enactment of the SAFETEA-LU, the Secretary, in 
        consultation with interested stakeholders (including 
        State transportation departments) shall develop a 5-
        year National Intelligent Transportation System (in 
        this section referred to as `ITS') program plan.
            ``(2) Scope.--The National ITS program plan shall--
                    ``(A) specify the goals, objectives, and 
                milestones for the research and deployment of 
                intelligent transportation systems in the 
                contexts of--
                            ``(i) major metropolitan areas;
                            ``(ii) smaller metropolitan and 
                        rural areas; and
                            ``(iii) commercial vehicle 
                        operations;
                    ``(B) specify the manner in which specific 
                programs and projects will achieve the goals, 
                objectives, and milestones referred to in 
                subparagraph (A), including consideration of a 
                5-year timeframe for the goals and objectives;
                    ``(C) identify activities that provide for 
                the dynamic development, testing, and necessary 
                revision of standards and protocols to promote 
                and ensure interoperability in the 
                implementation of intelligent transportation 
                system technologies, including actions taken to 
                establish standards; and
                    ``(D) establish a cooperative process with 
                State and local governments for--
                            ``(i) determining desired surface 
                        transportation system performance 
                        levels; and
                            ``(ii) developing plans for 
                        accelerating the incorporation of 
                        specific intelligent transportation 
                        system capabilities into surface 
                        transportation systems.
    ``(b) Reporting.--The National ITS program plan shall be 
submitted and biennially updated as part of the transportation 
research and development strategic plan developed under section 
508.''.
    (b) Conforming Amendment.--The analysis for such chapter is 
further amended by adding at the end the following:

``512. National ITS Program Plan.''.

SEC. 5302. USE OF FUNDS.

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

``Sec. 513. Use of funds for ITS activities

    ``(a) In General.--For each fiscal year, not more than 
$250,000 of the funds made available to carry out this subtitle 
C of title V of the SAFETEA-LU shall be used for intelligent 
transportation system outreach, public relations, displays, 
tours, and brochures.
    ``(b) Applicability.--Subsection (a) shall not apply to 
intelligent transportation system training, scholarships, or 
the publication or distribution of research findings, technical 
guidance, or similar documents.''.
    (b) Conforming Amendment.--The analysis for such chapter is 
further amended by adding at the end the following:

``513. Use of funds for ITS activities.''.

SEC. 5303. GOALS AND PURPOSES.

    (a) Goals.--The goals of the intelligent transportation 
system program include--
            (1) enhancement of surface transportation 
        efficiency and facilitation of intermodalism and 
        international trade to enable existing facilities to 
        meet a significant portion of future transportation 
        needs, including public access to employment, goods, 
        and services and to reduce regulatory, financial, and 
        other transaction costs to public agencies and system 
        users;
            (2) achievement of national transportation safety 
        goals, including the enhancement of safe operation of 
        motor vehicles and nonmotorized vehicles and improved 
        emergency response to a crash, with particular emphasis 
        on decreasing the number and severity of collisions;
            (3) protection and enhancement of the natural 
        environment and communities affected by surface 
        transportation, with particular emphasis on assisting 
        State and local governments to achieve national 
        environmental goals;
            (4) accommodation of the needs of all users of 
        surface transportation systems, including operators of 
        commercial motor vehicles, passenger motor vehicles, 
        motorcycles, bicycles and pedestrians, including 
        individuals with disabilities; and
            (5) improvement of the Nation's ability to respond 
        to security-related or other manmade emergencies and 
        natural disasters and enhancement of national defense 
        mobility.
    (b) Purposes.--The Secretary shall implement activities 
under the intelligent system transportation program to, at a 
minimum--
            (1) expedite, in both metropolitan and rural areas, 
        deployment and integration of intelligent 
        transportation systems for consumers of passenger and 
        freight transportation;
            (2) ensure that Federal, State, and local 
        transportation officials have adequate knowledge of 
        intelligent transportation systems for consideration in 
        the transportation planning process;
            (3) improve regional cooperation and operations 
        planning for effective intelligent transportation 
        system deployment;
            (4) promote the innovative use of private 
        resources;
            (5) facilitate, in cooperation with the motor 
        vehicle industry, the introduction of vehicle-based 
        safety enhancing systems;
            (6) support the application of intelligent 
        transportation systems that increase the safety and 
        efficiency of commercial motor vehicle operations;
            (7) develop a workforce capable of developing, 
        operating, and maintaining intelligent transportation 
        systems; and
            (8) provide continuing support for operations and 
        maintenance of intelligent transportation systems.

SEC. 5304. INFRASTRUCTURE DEVELOPMENT.

    Funds made available to carry out this subtitle for 
operational tests--
            (1) shall be used primarily for the development of 
        intelligent transportation system infrastructure; and
            (2) to the maximum extent practicable, shall not be 
        used for the construction of physical highway and 
        public transportation infrastructure unless the 
        construction is incidental and critically necessary to 
        the implementation of an intelligent transportation 
        system project.

SEC. 5305. GENERAL AUTHORITIES AND REQUIREMENTS.

    (a) Scope.--Subject to the provisions of this subtitle, the 
Secretary shall conduct an ongoing intelligent transportation 
system program to research, develop, and operationally test 
intelligent transportation systems and to provide technical 
assistance in the nationwide application of those systems as a 
component of the surface transportation systems of the United 
States.
    (b) Policy.--Intelligent transportation system research 
projects and operational tests funded pursuant to this subtitle 
shall encourage and not displace public-private partnerships or 
private sector investment in such tests and projects.
    (c) Cooperation With Governmental, Private, and Educational 
Entities.--The Secretary shall carry out the intelligent 
transportation system program in cooperation with State and 
local governments and other public entities, the private sector 
firms of the United States, the Federal laboratories, and 
colleges and universities, including historically Black 
colleges and universities and other minority institutions of 
higher education.
    (d) Consultation With Federal Officials.--In carrying out 
the intelligent transportation system program, the Secretary 
shall consult with the heads of other Federal departments and 
agencies, as appropriate.
    (e) Technical Assistance, Training, and Information.--The 
Secretary may provide technical assistance, training, and 
information to State and local governments seeking to 
implement, operate, maintain, or evaluate intelligent 
transportation system technologies and services.
    (f) Transportation Planning.--The Secretary may provide 
funding to support adequate consideration of transportation 
systems management and operations, including intelligent 
transportation systems, within metropolitan and statewide 
transportation planning processes.
    (g) Information Clearinghouse.--
            (1) In general.--The Secretary shall--
                    (A) maintain a repository for technical and 
                safety data collected as a result of federally 
                sponsored projects carried out under this 
                subtitle (including the amendments made by this 
                subtitle); and
                    (B) make, on request, that information 
                (except for proprietary information and data) 
                readily available to all users of the 
                repository at an appropriate cost.
            (2) Agreement.--
                    (A) In general.--The Secretary may enter 
                into an agreement with a third party for the 
                maintenance of the repository for technical and 
                safety data under paragraph (1)(A).
                    (B) Federal financial assistance.--If the 
                Secretary enters into an agreement with an 
                entity for the maintenance of the repository, 
                the entity shall be eligible for Federal 
                financial assistance under this section.
            (3) Availability of information.--Information in 
        the repository shall not be subject to section 555 of 
        title 5, United States Code.
    (h) Advisory Committee.--
            (1) In general.--The Secretary shall establish an 
        Advisory Committee to advise the Secretary on carrying 
        out this subtitle.
            (2) Membership.--The Advisory Committee shall have 
        no more than 20 members, be balanced between 
        metropolitan and rural interests, and include, at a 
        minimum--
                    (A) a representative from a State highway 
                department;
                    (B) a representative from a local highway 
                department who is not from a metropolitan 
                planning organization;
                    (C) a representative from a State, local, 
                or regional transit agency;
                    (D) a representative from a metropolitan 
                planning organization;
                    (E) a private sector user of intelligent 
                transportation system technologies;
                    (F) an academic researcher with expertise 
                in computer science or another information 
                science field related to intelligent 
                transportation systems, and who is not an 
                expert on transportation issues;
                    (G) an academic researcher who is a civil 
                engineer;
                    (H) an academic researcher who is a social 
                scientist with expertise in transportation 
                issues;
                    (I) a representative from a nonprofit group 
                representing the intelligent transportation 
                system industry;
                    (J) a representative from a public interest 
                group concerned with safety;
                    (K) a representative from a public interest 
                group concerned with the impact of the 
                transportation system on land use and 
                residential patterns; and
                    (L) members with expertise in planning, 
                safety, and operations.
            (3) Duties.--The Advisory Committee shall, at a 
        minimum, perform the following duties:
                    (A) Provide input into the development of 
                the Intelligent Transportation System aspects 
                of the strategic plan under section 508 of 
                title 23, United States Code.
                    (B) Review, at least annually, areas of 
                intelligent transportation systems research 
                being considered for funding by the Department, 
                to determine--
                            (i) whether these activities are 
                        likely to advance either the state-of-
                        the-practice or state-of-the-art in 
                        intelligent transportation systems;
                            (ii) whether the intelligent 
                        transportation system technologies are 
                        likely to be deployed by users, and, if 
                        not, to determine the barriers to 
                        deployment; and
                            (iii) the appropriate roles for 
                        government and the private sector in 
                        investing in the research and 
                        technologies being considered.
            (4) Report.--Not later than February 1 of each year 
        after the date of enactment of this Act, the Secretary 
        shall transmit to the Congress a report including--
                    (A) all recommendations made by the 
                Advisory Committee during the preceding 
                calendar year;
                    (B) an explanation of how the Secretary has 
                implemented those recommendations; and
                    (C) for recommendations not implemented, 
                the reasons for rejecting the recommendations.
            (5) Applicability of federal advisory committee 
        act.--The Advisory Committee shall be subject to the 
        Federal Advisory Committee Act (5 U.S.C. App.).
    (i) Reporting.--
            (1) Guidelines and requirements.--
                    (A) In general.--The Secretary shall issue 
                guidelines and requirements for the reporting 
                and evaluation of operational tests and 
                deployment projects carried out under this 
                subtitle.
                    (B) Objectivity and independence.--The 
                guidelines and requirements issued under 
                subparagraph (A) shall include provisions to 
                ensure the objectivity and independence of the 
                reporting entity so as to avoid any real or 
                apparent conflict of interest or potential 
                influence on the outcome by parties to any such 
                test or deployment project or by any other 
                formal evaluation carried out under this 
                subtitle.
                    (C) Funding.--The guidelines and 
                requirements issued under subparagraph (A) 
                shall establish reporting funding levels based 
                on the size and scope of each test or project 
                that ensure adequate reporting of the results 
                of the test or project.
            (2) Special rule.--Any survey, questionnaire, or 
        interview that the Secretary considers necessary to 
        carry out the reporting of any test, deployment 
        project, or program assessment activity under this 
        subtitle shall not be subject to chapter 35 of title 
        44, United States Code.

SEC. 5306. RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall carry out a 
comprehensive program of intelligent transportation system 
research, development, and operational tests of intelligent 
vehicles and intelligent infrastructure systems and other 
similar activities that are necessary to carry out this 
subtitle.
    (b) Priority Areas.--Under the program, the Secretary shall 
give higher priority to funding projects that--
            (1) enhance mobility and productivity through 
        improved traffic management, incident management, 
        transit management, freight management, road weather 
        management, toll collection, traveler information, or 
        highway operations systems and remote sensing products;
            (2) utilize interdisciplinary approaches to develop 
        traffic management strategies and tools to address 
        multiple impacts of congestion concurrently;
            (3) address traffic management, incident 
        management, transit management, toll collection 
        traveler information, or highway operations systems 
        with goals of--
                    (A) reducing metropolitan congestion by not 
                less than 5 percent by 2010;
                    (B) ensuring that a national, interoperable 
                5-1-1 system, along with a national traffic 
                information system that includes a user-
                friendly, comprehensive website, is fully 
                implemented for use by travelers throughout the 
                United States by September 30, 2010; and
                    (C)(i) improving incident management 
                response, particularly in rural areas, so that 
                rural emergency response times are reduced by 
                an average of 10 minutes; and
                    (ii) improving communication between 
                emergency care providers and trauma centers;
            (4) incorporate research on the impact of 
        environmental, weather, and natural conditions on 
        intelligent transportation systems, including the 
        effects of cold climates;
            (5) enhance intermodal use of intelligent 
        transportation systems for diverse groups, including 
        for emergency and health-related services;
            (6) enhance safety through improved crash avoidance 
        and protection, crash and other notification, 
        commercial motor vehicle operations, and 
        infrastructure-based or cooperative safety systems; and
            (7) facilitate the integration of intelligent 
        infrastructure, vehicle, and control technologies.
    (c) Federal Share.--The Federal share of the cost of 
operational tests and demonstrations under subsection (a) shall 
not exceed 80.

SEC. 5307. NATIONAL ARCHITECTURE AND STANDARDS.

    (a) In General.--
            (1) Development, implementation, and maintenance.--
        Consistent with section 12(d) of the National 
        Technology Transfer and Advancement Act of 1995 (15 
        U.S.C. 272 note; 110 Stat. 783), the Secretary shall 
        develop, implement, and maintain a national 
        architecture and supporting standards and protocols to 
        promote the widespread use and evaluation of 
        intelligent transportation system technology as a 
        component of the surface transportation systems of the 
        United States.
            (2) Interoperability and efficiency.--To the 
        maximum extent practicable, the national architecture 
        shall promote interoperability among, and efficiency 
        of, intelligent transportation system technologies 
        implemented throughout the United States.
            (3) Use of standards development organizations.--In 
        carrying out this section, the Secretary shall use the 
        services of such standards development organizations as 
        the Secretary determines to be appropriate.
            (4) Use of expert panel.--
                    (A) Designation.--The Secretary shall 
                designate a panel of experts to recommend ways 
                to expedite and streamline the process for 
                developing the standards and protocols to be 
                developed pursuant to paragraph (1).
                    (B) Nonapplicability of advisory committee 
                act.--The expert panel shall not be subject to 
                the Federal Advisory Committee Act (5 U.S.C. 
                App.).
                    (C) Deadline for recommendation.--Not later 
                than September 30, 2007, the expert panel shall 
                provide the Secretary with a recommendation 
                relating to such standards development.
    (b) Provisional Standards.--
            (1) In general.--If the Secretary finds that the 
        development or balloting of an intelligent 
        transportation system standard jeopardizes the timely 
        achievement of the objectives identified in subsection 
        (a), the Secretary may establish a provisional 
        standard, after consultation with affected parties, 
        using,to the extent practicable, the work product of 
appropriate standards development organizations.
            (2) Period of effectiveness.--A provisional 
        standard established under paragraph (1) shall be 
        published in the Federal Register and remain in effect 
        until the appropriate standards development 
        organization adopts and publishes a standard.
    (c) Conformity With National Architecture.--
            (1) In general.--Except as provided in paragraphs 
        (2) and (3), the Secretary shall ensure that 
        intelligent transportation system projects carried out 
        using funds made available from the Highway Trust Fund, 
        including funds made available under this subtitle to 
        deploy intelligent transportation system technologies, 
        conform to the national architecture, applicable 
        standards or provisional standards, and protocols 
        developed under subsection (a).
            (2) Secretary's discretion.--The Secretary may 
        authorize exceptions to paragraph (1) for--
                    (A) projects designed to achieve specific 
                research objectives outlined in the national 
                intelligent transportation system program plan 
                or the surface transportation research and 
                development strategic plan developed under 
                section 508 of title 23, United States Code; or
                    (B) the upgrade or expansion of an 
                intelligent transportation system in existence 
                on the date of enactment of this Act if the 
                Secretary determines that the upgrade or 
                expansion--
                            (i) would not adversely affect the 
                        goals or purposes of this subtitle;
                            (ii) is carried out before the end 
                        of the useful life of such system; and
                            (iii) is cost-effective as compared 
                        to alternatives that would meet the 
                        conformity requirement of paragraph 
                        (1).
            (3) Exceptions.--Paragraph (1) shall not apply to 
        funds used for operation or maintenance of an 
        intelligent transportation system in existence on the 
        date of enactment of this Act.

SEC. 5308. ROAD WEATHER RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a road 
weather research and development program to--
            (1) maximize use of available road weather 
        information and technologies;
            (2) expand road weather research and development 
        efforts to enhance roadway safety, capacity, and 
        efficiency while minimizing environmental impacts; and
            (3) promote technology transfer of effective road 
        weather scientific and technological advances.
    (b) Stakeholder Input.--In carrying out this section, the 
Secretary shall consult with the National Oceanic and 
Atmospheric Administration, the National Science Foundation, 
the American Association of State Highway and Transportation 
Officials, nonprofit organizations, and the private sector.
    (c) Contents.--The program established under this section 
shall solely carry out research and development called for in 
the National Research Council's report entitled ``A Research 
Agenda for Improving Road Weather Services''. Such research and 
development includes--
            (1) integrating existing observational networks and 
        data management systems for road weather applications;
            (2) improving weather modeling capabilities and 
        forecast tools, such as the road surface and 
        atmospheric interface;
            (3) enhancing mechanisms for communicating road 
        weather information to users, such as transportation 
        officials and the public; and
            (4) integrating road weather technologies into an 
        information infrastructure.
    (d) Activities.--In carrying out this section, the 
Secretary shall--
            (1) enable efficient technology transfer;
            (2) improve education and training of road weather 
        information users, such as State and local 
        transportation officials and private sector 
        transportation contractors; and
            (3) coordinate with transportation weather research 
        programs in other modes, such as aviation.
    (e) Funding.--
            (1) In general.--In awarding funds under this 
        section, the Secretary shall give preference to 
        applications with significant matching funds from non-
        Federal sources.
            (2) Funds for road weather research and 
        development.--Of the amounts made available by section 
        5101(a)(5) of this Act, $5,000,000 for each of fiscal 
        years 2006 through 2009 shall be available to carry out 
        this section.

SEC. 5309. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE.

    (a) Establishment.--The Secretary shall establish 4 centers 
for surface transportation excellence.
    (b) Goals.--The goals of the centers for surface 
transportation excellence are to promote and support strategic 
national surface transportation programs and activities 
relating to the work of State departments of transportation in 
the areas of environment, surface transportation safety, rural 
safety, and project finance.
    (c) Role of Centers.--To achieve the goals set forth in 
subsection (b), the Secretary shall establish the 4 centers as 
follows:
            (1) Environmental excellence.--To provide technical 
        assistance, information sharing of best practices, and 
        training in the use of tools and decision-making 
        processes that can assist States in planning and 
        delivering environmentally sound surface transportation 
        projects.
            (2) Surface transportation safety.--To develop and 
        disseminate advanced transportation safety techniques 
        and innovations in both rural areas and urban 
        communities. The center will use a controlled access 
        highway with state of the art features, to test safety 
        devices and techniques that enhance driver performance, 
        examine advanced pavement and lighting systems, and 
        develop techniques to address older driver and fatigue 
        driver issues.
            (3) Rural safety.--To provide research, training, 
        and outreach on innovative uses of technology to 
        enhance rural safety and economic development, assess 
        local community needs to improve access to mobile 
        emergency treatment, and develop online and seminar 
        training needs of rural transportation practitioners 
        and policy-makers.
            (4) Project finance.--To provide support to State 
        transportation departments in the development of 
        finance plans and project oversight tools and to 
        develop and offer training in state of the art 
        financing methods to advance projects and leverage 
        funds.
    (d) Funding.--
            (1) In general.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $3,750,000 for each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this section.
            (2) Allocation of funds.--Of the funds made 
        available under paragraph (1) the Secretary shall use 
        such amounts as follows:
                    (A) $1,250,000 to establish the Center for 
                Environmental Excellence.
                    (B) $750,000 to establish the Center for 
                Excellence in Surface Transportation Safety at 
                the Virginia Tech Transportation Institute.
                    (C) $875,000 to establish the Center for 
                Excellence in Rural Safety at the Hubert H. 
                Humphrey Institute, Minnesota.
                    (D) $875,000 to establish the Center for 
                Excellence in Project Finance.
            (3) Applicability of title 23.--Funds authorized by 
        this section shall be available for obligation in the 
        same manner as if such funds were apportioned under 
        chapter 1 of title 23, United States Code, except that 
        the Federal share shall be 100 percent.
    (e) Program Administration.--
            (1) Competition.--A party entering into a contract, 
        cooperative agreement, or other transaction with the 
        Secretary, or receiving a grant to perform research or 
        provide technical assistance under subsections 
        (d)(2)(A) and (d)(2)(D) shall be selected on a 
        competitive basis, to the maximum extent practicable.
            (2) Strategic plan.--The Secretary shall require 
        each center to develop a multiyear strategic plan that 
        describes--
                    (A) the activities to be undertaken; and
                    (B) how the work of the center is 
                coordinated with the activities of the Federal 
                Highway Administration and the various other 
                research, development, and technology transfer 
                activities authorized by this title. Such plans 
                shall be submitted to the Secretary by January 
                1, 2006, and each year thereafter.

SEC. 5310. DEFINITIONS.

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

      Subtitle D--University Transportation Research; Scholarship 
                             Opportunities

SEC. 5401. NATIONAL UNIVERSITY TRANSPORTATION CENTERS.

    (a) In General.--Section 5505 of title 49, United States 
Code, is amended to read as follows:

``SEC. 5505. NATIONAL UNIVERSITY TRANSPORTATION CENTERS.

    ``(a) In General.--
            ``(1) Establishment and operation.--The Secretary 
        of Transportation shall make grants under this section 
        to eligible nonprofit institutions of higher learning 
        to establish and operate national university 
        transportation centers.
            ``(2) Role of centers.--The role of each center 
        shall be to advance significant transportation research 
        on critical national transportation issues and to 
        expand the workforce of transportation professionals.
    ``(b) Applicability of Requirements.--A grant received by 
an eligible nonprofit institution of higher learning under this 
section shall be available for the same purposes, and shall be 
subject to the same terms and conditions, as a grant made to a 
nonprofit institution of higher learning under section 5506.
    ``(c) Eligible Nonprofit Institution of Higher Learning 
Defined.--In this section, the term `eligible nonprofit 
institution of higher learning' means each of the following:
            ``(1) University of Alaska.
            ``(2) Marshall University, West Virginia, on behalf 
        of a consortium of West Virginia colleges and 
        universities.
            ``(3) University of Minnesota.
            ``(4) University of Missouri, Rolla.
            ``(5) Northwestern University.
            ``(6) Oklahoma Transportation Center.
            ``(7) Portland State University, in partnership 
        with the University of Oregon, Oregon State University, 
        and the Oregon Institute of Technology.
            ``(8) University of Vermont.
            ``(9) Western Transportation Institute at Montana 
        State University.
            ``(10) University of Wisconsin.
    ``(d) Grants.--The Secretary shall make a grant under this 
section to each eligible nonprofit institution of higher 
learning in an amount of $2,000,000 in fiscal year 2005 and 
$3,500,000 in each of fiscal years 2006 through 2009 to carry 
out this section.''.
    (b) Funding.--Of the amounts made available by section 
5101(a)(4) of this Act, $20,000,000 for fiscal year 2005 and 
$35,000,000 for each of fiscal years 2006 through 2009 shall be 
available to carry out section 5505 of such title.
    (c) Conforming Amendment.--The analysis for subchapter I of 
chapter 55 of such title is amended by striking the item 
relating to section 5505 and inserting the following:

``5505. National university transportation centers.''.

SEC. 5402. UNIVERSITY TRANSPORTATION RESEARCH.

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

``SEC. 5506. UNIVERSITY TRANSPORTATION RESEARCH.

    ``(a) In General.--The Secretary of Transportation shall 
make grants under this section to nonprofit institutions of 
higher learning to establish and operate university 
transportation centers.
    ``(b) Objectives.--Grants received under this section shall 
be used by nonprofit institutions of higher learning to advance 
significantly the state-of-the-art in transportation research 
and expand the workforce of transportation professionals 
through the following programs and activities:
            ``(1) Research.--Basic and applied research, the 
        products of which are judged by peers or other experts 
        in the field of transportation to advance the body of 
        knowledge in transportation.
            ``(2) Education.--An education program relating to 
        transportation that includes multidisciplinary course 
        work and participation in research.
            ``(3) Technology transfer.--An ongoing program of 
        technology transfer that makes transportation research 
        results available to potential users in a form that can 
        be implemented, utilized, or otherwise applied.
    ``(c) Regional, Tier I, and Tier II Centers.--
            ``(1) Regional and tier i centers.--For each of 
        fiscal years 2005 through 2009, the Secretary shall 
        make grants under subsection (a) to nonprofit 
        institutions of higher learning to establish and 
        operate--
                    ``(A) 10 regional university transportation 
                centers; and
                    ``(B) 10 Tier I university transportation 
                centers.
            ``(2) Tier ii centers.--
                    ``(A) For each of fiscal years 2006 through 
                2009, the Secretary shall make grants under 
                subsection (a) to nonprofit institutions of 
                higher learning to establish and operate 22 
                Tier II university transportation centers.
                    ``(B) The tier II centers consist of the 
                following:
                            ``(i) University of Arkansas, Mack-
                        Blackwell Rural Transportation Center.
                            ``(ii) University of California, 
                        Davis.
                            ``(iii) California State 
                        University, San Bernardino.
                            ``(iv) Cleveland State University, 
                        Work Zone Safety Institute.
                            ``(v) University of Connecticut.
                            ``(vi) University of Delaware in 
                        Newark.
                            ``(vii) University of Detroit Mercy 
                        (including the coalition partners of 
                        the university).
                            ``(viii) George Mason University.
                            ``(ix) Hampton University, Eastern 
                        Seaboard Intermodal Transportation 
                        Applications Center (ESITAC).
                            ``(x) Kansas State University.
                            ``(xi) Louisiana State University, 
                        LTRC-TTEC.
                            ``(xii) University of Massachusetts 
                        Amherst.
                            ``(xiii) Michigan Technological 
                        University.
                            ``(xiv) University of Nevada Las 
                        Vegas.
                            ``(xv) North Carolina State 
                        University, Center for Transportation 
                        and the Environment.
                            ``(xvi) Northwestern University.
                            ``(xvii) Ohio Higher Education 
                        Transportation Consortium-University of 
                        Akron.
                            ``(xviii) University of Rhode 
                        Island.
                            ``(xix) University of Toledo.
                            ``(xx) Utah State University.
                            ``(xxi) Youngstown State 
                        University.
                            ``(xxii) University of Memphis.
            ``(3) Location of regional centers.--One regional 
        university transportation center shall be located in 
        each of the 10 United States Government regions that 
        comprise the Standard Federal Regional Boundary System.
            ``(4) Limitation.--A nonprofit institution of 
        higher learning may not directly receive a grant under 
        this section for a fiscal year for more than one 
        university transportation center.
    ``(d) Competitive Selection Process.--
            ``(1) Applications.--In order to be eligible to 
        receive a grant under subsection (c)(1), a nonprofit 
        institution of higher learning shall submit to the 
        Secretary an application that is in such form and 
        contains such information as the Secretary may require.
            ``(2) General selection criteria.--Except as 
        otherwise provided by this section, the Secretary shall 
        select each recipient of a grant under subsection 
        (c)(1) through a competitive process on the basis of 
        the following:
                    ``(A) The demonstrated research and 
                extension resources available to the recipient 
                to carry out this section.
                    ``(B) The capability of the recipient to 
                provide leadership in making national and 
                regional contributions to the solution of 
                immediate and long-range transportation 
                problems.
                    ``(C) The recipient's demonstrated 
                commitment of at least $400,000 each year in 
                regularly budgeted institutional amounts to 
                support ongoing transportation research and 
                education programs.
                    ``(D) The recipient's demonstrated ability 
                to disseminate results of transportation 
                research and education programs through a 
                statewide or regionwide continuing education 
                program.
                    ``(E) The strategic plan the recipient 
                proposes to carry out under the grant.
    ``(e) Regional University Transportation Centers.--
            ``(1) Competition.--Not later than March 31, 2006, 
        and not later than March 31st of every 4th year 
        thereafter, the Secretary shall complete a competition 
        among nonprofit institutions of higher learning for 
        grants to establish and operate the 10 regional 
        university transportation centers referred to in 
        subsection (c)(1)(A).
            ``(2) Selection criteria.--In conducting a 
        competition under paragraph (1), the Secretary shall 
        select a nonprofit institution of higher learning on 
        the basis of--
                    ``(A) the criteria described in subsection 
                (d)(2);
                    ``(B) the location of the center within the 
                Federal region to be served; and
                    ``(C) whether or not the institution (or, 
                in the case of a consortium of institutions, 
                the lead institution) demonstrates that it has 
                a well-established, nationally recognized 
                program in transportation research and 
                education, as evidenced by--
                            ``(i) not less than $2,000,000 in 
                        highway or public transportation 
                        research expenditures each year for 
                        each of the preceding 5 years;
                            ``(ii) not less than 10 graduate 
                        degrees awarded in professional fields 
                        closely related to highways and public 
                        transportation each year for each of 
                        the preceding 5 years; and
                            ``(iii) not less than 5 tenured or 
                        tenure-track faculty members who 
                        specialize on a full-time basis in 
                        professional fields closely related to 
                        highways and public transportation who, 
                        as a group, have published a total at 
                        least 50 refereed journal publications 
                        on highway or public transportation 
                        research during the preceding 5 years.
            ``(3) Grant recipients.--After selecting a 
        nonprofit institution of higher learning as a grant 
        recipient on the basis of a competition conducted under 
        this subsection, the Secretary shall make a grant to 
        the recipient to establish and operate a regional 
        university transportation center in each of the first 4 
        fiscal years beginning after the date of the 
        competition.
            ``(4) Special rule for fiscal years 2005 and 
        2006.--For fiscal years 2005 and 2006, the Secretary 
        shall make a grant under this section to each of the 10 
        nonprofit institutions of higher learning that were 
        competitively selected for grants by the Secretary 
        under this section in July 1999 to operate regional 
        university transportation centers.
            ``(5) Amount of grants.--The Secretary shall make a 
        grant to a nonprofit institution of higher learning to 
        establish and operate a regional university 
        transportation center of--
                    ``(A) $1,000,000 for fiscal year 2005;
                    ``(B) $2,000,000 for each of fiscal years 
                2006 through 2008; and
                    ``(C) $2,225,000 for fiscal year 2009.
    ``(f) Tier I University Transportation Centers.--
            ``(1) Competition.--Not later than June 30, 2006, 
        and not later than June 30 of every 4th year 
        thereafter, the Secretary shall complete a competition 
        among nonprofit institutions of higher learning for 
        grants to establish and operate the 10 Tier I 
        university transportation centers referred to in 
        subsection (c)(1)(B).
            ``(2) Selection criteria.--In conducting a 
        competition under paragraph (1), the Secretary shall 
        select a nonprofit institution of higher learning on 
        the basis of--
                    ``(A) the criteria described in subsection 
                (d)(2); and
                    ``(B) whether or not the institution (or, 
                in the case of a consortium of institutions, 
                the lead institution) can demonstrate that it 
                has an established, recognized program in 
                transportation research and education, as 
                evidenced by--
                            ``(i) not less than $1,000,000 in 
                        highway or public transportation 
                        research expenditures each year for 
                        each of the preceding 5 years or not 
                        less than $6,000,000 in such 
                        expenditures during the 5 preceding 
                        years;
                            ``(ii) not less than 5 graduate 
                        degrees awarded in professional fields 
                        closely related to highways and public 
                        transportation each year for each of 
                        the preceding 5 years; and
                            ``(iii) not less than 3 tenured or 
                        tenure-track faculty members who 
                        specialize on a full-time basis in 
                        professional fields closely related to 
                        highways and public transportation who, 
                        as a group, have published a total at 
                        least 20 refereed journal publications 
                        on highway or public transportation 
                        research during the preceding 5 years.
            ``(3) Grant recipients.--After selecting a 
        nonprofit institution of higher learning as a grant 
        recipient on the basis of a competition conducted under 
        this subsection, the Secretary shall make a grant to 
        the recipient to establish and operate a Tier I 
        university transportation center in each of the first 4 
        fiscal years beginning after the date of the 
        competition.
            ``(4) Special rule for fiscal years 2005 and 
        2006.--For fiscal years 2005 and 2006, the Secretary 
        shall make a grant under this section to each of the 10 
        nonprofit institutions of higher learning that were 
        competitively selected for grant awards by the 
        Secretary under this section in May 2002 to operate 
        university transportation centers (other than regional 
        centers).
            ``(5) Amount of grants.--The Secretary shall make a 
        grant of $1,000,000 for each of fiscal years 2005 
        through 2009 to a nonprofit institution of higher 
        learning to establish and operate a Tier I university 
        transportation center.
    ``(g) Tier II University Transportation Centers.--
            ``(1) Selection.--The Secretary shall make grants 
        to the nonprofit institutions of higher learning to 
        establish and operate the 22 Tier II university 
        transportation centers referred to in subsection 
        (c)(2)(B).
            ``(2) Amount of grants.--The Secretary shall make a 
        grant of $500,000 for each of fiscal years 2006 through 
        2009 to a nonprofit institution of higher learning to 
        establish and operate a Tier II university 
        transportation center.
    ``(h) Support of National Strategy for Surface 
Transportation Research.--In order to be eligible to receive a 
grant under this section, a nonprofit institution of higher 
learning shall provide assurances satisfactory to the Secretary 
that the research and education activities of its university 
transportation center will support the national strategy for 
surface transportation research, as identified by--
            ``(1) the report of the National Highway Research 
        and Technology Partnership entitled `Highway Research 
        and Technology: The Need for Greater Investment', dated 
        April 2002; and
            ``(2) the programs of the National Research and 
        Technology Program of the Federal Transit 
        Administration.
    ``(i) Maintenance of Effort.--In order to be eligible to 
receive a grant under this section, a nonprofit institution of 
higher learning shall enter into an agreement with the 
Secretary to ensure that the institution will maintain total 
expenditures from all other sources to establish and operate a 
university transportation center and related research 
activities at a level at least equal to the average level of 
such expenditures in its 2 fiscal years prior to award of a 
grant under this section.
    ``(j) Federal Share.--The Federal share of the costs of 
activities carried out using a grant made under this section 
shall be 50 percent of such costs. The non-Federal share may 
include funds provided to a recipient under section 503, 
504(b), or 505 of title 23.
    ``(k) Program Coordination.--
            ``(1) Coordination.--The Secretary shall coordinate 
        the research, education, and technology transfer 
        activities that grant recipients carry out under this 
        section, disseminate the results of the research, and 
        establish and operate a clearinghouse to disseminate 
        the results of the research.
            ``(2) Annual review and evaluation.--At least 
        annually, and consistent with the plan developed under 
        section 508 of title 23, the Secretary shall review and 
        evaluate programs of grant recipients.
            ``(3) Management and oversight.--The Secretary 
        shall expend not more than $400,000 for each of fiscal 
        years 2005 through 2009 from amounts made available to 
        carry out this section to carry out management and 
        oversight of the centers receiving assistance under 
        this section and section 5505.
    ``(l) Program Administration.--The Secretary shall carry 
out this section acting through the Administrator of the 
Research and Innovative Technology Administration.
    ``(m) Limitation on Availability of Funds.--Funds made 
available to carry out this section shall remain available for 
obligation by the Secretary for a period of 2 years after the 
last day of the fiscal year for which such funds are 
authorized.''.
    (b) Funding.--Of the amounts made available by section 
5101(a)(4) of this Act, the following amounts shall be 
available to carry out section 5506 of such title.
            (1) $20,400,000 for fiscal year 2005.
            (2) $41,400,000 for each of fiscal years 2006 
        through 2008.
            (3) $43,900,000 for fiscal year 2009.
    (c) Conforming Amendment.--The analysis for subchapter I of 
chapter 55 of such title is amended by striking the item 
relating to section 5506 and inserting the following:

``5506. University transportation research.''.

                       Subtitle E--Other Programs

SEC. 5501. TRANSPORTATION SAFETY INFORMATION MANAGEMENT SYSTEM PROJECT.

    (a) In General.--The Secretary shall fund and carry out a 
project to further the development of a comprehensive 
transportation safety information management system (in this 
section referred to as ``TSIMS'').
    (b) Purposes.--The purpose of the TSIMS project is to 
further the development of a software application to provide 
for the collection, integration, management, and dissemination 
of safety data from and for use among State and local safety 
and transportation agencies, including driver licensing, 
vehicle registration, emergency management system, injury 
surveillance, roadway inventory, and motor carrier databases.
    (c) Funding.--
            (1) Federal funding.--Of the amounts made available 
        by section 5101(a)(1) of this Act, $1,000,000 for 
        fiscal years 2006 and 2007 shall be available to carry 
        out the TSIMS project under this section.
            (2) State contribution.--The sums authorized in 
        paragraph (1) are intended to supplement voluntary 
        contributions to be made by State departments of 
        transportation and other State safety and 
        transportation agencies.

SEC. 5502. SURFACE TRANSPORTATION CONGESTION RELIEF SOLUTIONS RESEARCH 
                    INITIATIVE.

    (a) Establishment.--The Secretary shall establish a surface 
transportation congestion solutions research initiative 
consisting of 2 independent research programs described in 
subsections (b)(1) and (b)(2) and designed to develop 
information to assist State transportation departments and 
metropolitan planning organizations measure and address surface 
transportation congestion problems.
    (b) Surface Transportation Congestion Solutions Research 
Program.--
            (1) Improved surface transportation congestion 
        management system measures.--The purposes of the first 
        research program established under this section shall 
        be--
                    (A) to examine the effectiveness of surface 
                transportation congestion management systems 
                since enactment of the Intermodal Surface 
                Transportation Efficiency Act of 1991 (Public 
                Law 102-240);
                    (B) to identify best case examples of 
                locally designed reporting methods and 
                incorporate such methods in research on 
                national models for developing and recommending 
                improved surface transportation congestion 
                measurement and reporting; and
                    (C) to incorporate such methods in the 
                development of national models and methods to 
                monitor, measure, and report surface 
                transportation congestion information.
            (2) Analytical techniques for action on surface 
        transportation congestion.--The purposes of the second 
        research program established under this section shall 
        be--
                    (A) to analyze the effectiveness of 
                procedures used by State transportation 
                departments and metropolitan planning 
                organizations to assess surface transportation 
                congestion problems and communicate those 
                problems to decisionmakers; and
                    (B) to identify methods to ensure that the 
                results of surface transportation congestion 
                analyses lead to the targeting of funding for 
                programs, projects, or services with 
                demonstrated effectiveness in reducing travel 
                delay, congestion, and system unreliability.
    (c) Technical Assistance and Training.--In fiscal year 
2006, the Secretary shall develop a technical assistance and 
training program to disseminate the results of the surface 
transportation congestion solutions research initiative for the 
purpose of assisting State transportation departments and local 
transportation agencies with improving their approaches to 
surface transportation congestion measurement, analysis, and 
project programming.
    (d) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $9,000,000 for each of fiscal years 
2006 through 2009 shall be available to carry out subsections 
(a) and (b) of this section. Of the amounts made available by 
section 5101(a)(2), $750,000 for each of fiscal years 2006 
through 2009 shall be available to carry out subsection (c) of 
this subsection.

SEC. 5503. MOTOR CARRIER EFFICIENCY STUDY.

    (a) In General.--The Secretary, in coordination with the 
motor carrier and wireless technology industry, shall conduct a 
study to--
            (1) identify inefficiencies in the transportation 
        of freight;
            (2) evaluate the safety, productivity, and reduced 
        cost improvements that may be achieved through the use 
        of wireless technologies to address the inefficiencies 
        identified in paragraph (1); and
            (3) conduct, as appropriate, field tests 
        demonstrating the technologies identified in paragraph 
        (2).
    (b) Program Elements.--The program shall include, at a 
minimum, the following:
            (1) Fuel monitoring and management systems.
            (2) Radio frequency identification technology.
            (3) Electronic manifest systems.
            (4) Cargo theft prevention.
    (c) Federal Share.--The Federal share of the cost of the 
study under this section shall be 100 percent.
    (d) Annual Report.--The Secretary shall prepare and submit 
to Congress an annual report on the programs and activities 
carried out under this section.
    (e) Funding.--Of the amounts made available under section 
5101(a)(1) of this Act, the Secretary shall make available 
$1,250,000 to the Federal Motor Carrier Safety Administration 
for each of fiscal years 2006 through 2009 to carry out this 
section.

SEC. 5504. CENTER FOR TRANSPORTATION ADVANCEMENT AND REGIONAL 
                    DEVELOPMENT.

    (a) Establishment.--The Secretary shall establish a Center 
for Transportation Advancement and Regional Development 
(referred to in this section as the ``Center'') to assist, 
through training, education, and research, in the comprehensive 
development of small metropolitan and rural regional 
transportation systems that are responsive to the needs of 
businesses and local communities.
    (b) Activities.--In carrying out this section, the Center 
shall--
            (1) provide training, information, and professional 
        resources for small metropolitan and rural regions to 
        pursue innovative strategies to expand the 
        capabilities, capacity, and effectiveness of a region's 
        transportation network, including activities related to 
        freight projects, transit system upgrades, roadways and 
        bridges, and intermodal transfer facilities and 
        operations;
            (2) assist local officials, rural transportation 
        and economic development planners, officials from State 
        departments of transportation and economic development, 
        business leaders, and other stakeholders in developing 
        public-private partnerships to enhance their 
        transportation systems; and
            (3) promote the leveraging of regional 
        transportation planning with regional economic and 
        business development planning to assure that 
        appropriate transportation systems are created.
    (c) Program Administration.--To carry out this section, the 
Secretary shall make a grant to, or enter into a cooperative 
agreement or contract with the National Association of 
Development Organizations.
    (d) Funding.--
            (1) In general.--Of the amounts made available by 
        section 5101(a)(1) of this Act, $625,000 shall be 
        available for each of fiscal years 2006 through 2009 to 
        carry out this section.
            (2) Federal share.--The Federal share of the cost 
        of activities carried out in accordance with this 
        subsection shall be 100 percent.

SEC. 5505. TRANSPORTATION SCHOLARSHIP OPPORTUNITIES PROGRAM.

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

SEC. 5506. COMMERCIAL REMOTE SENSING PRODUCTS AND SPATIAL INFORMATION 
                    TECHNOLOGIES.

    (a) In General.--The Secretary shall establish and carry 
out a program to validate commercial remote sensing products 
and spatial information technologies for application to 
national transportation infrastructure development and 
construction.
    (b) Program.--
            (1) National policy.--The Secretary shall establish 
        and maintain a national policy for the use of 
        commercial remote sensing products and spatial 
        information technologies in national transportation 
        infrastructure development and construction.
            (2) Policy implementation.--The Secretary shall 
        develop new applications of commercial remote sensing 
        products and spatial information technologies for the 
        implementation of the national policy established and 
        maintained under paragraph (1).
    (c) Cooperation.--The Secretary shall carry out this 
section in cooperation with a consortium of university research 
centers.
    (d) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $7,750,000 for each of fiscal years 
2006 through 2009 shall be available to carry out this section.

SEC. 5507. RURAL INTERSTATE CORRIDOR COMMUNICATIONS STUDY.

    (a) Study.--The Secretary, in cooperation with the 
Secretary of Commerce, State departments of transportation, and 
other appropriate State, regional, and local officials, shall 
conduct a study on the feasibility of installing fiber optic 
cabling and wireless communication infrastructure along 
multistate Interstate System route corridors for improved 
communications services to rural communities along such 
corridors.
    (b) Contents of Study.--In conducting the study, the 
Secretary shall identify--
            (1) impediments to installation of the 
        infrastructure described in subsection (a) along 
        multistate Interstate System route corridors and to 
        connecting such infrastructure to the rural communities 
        along such corridors;
            (2) the effective geographic range of such 
        infrastructure;
            (3) potential opportunities for the private sector 
        to fund, wholly or partially, the installation of such 
        infrastructure;
            (4) potential benefits fiber optic cabling and 
        wireless communication infrastructure may provide to 
        rural communities along such corridors, including the 
        effects of the installation of such infrastructure on 
        economic development, deployment of intelligent 
        transportation systems technologies and applications, 
        homeland security precaution and response, and 
        education and health systems in those communities;
            (5) rural broadband access points for such 
        infrastructure;
            (6) areas of environmental conflict with such 
        installation;
            (7) real estate ownership issues relating to such 
        installation;
            (8) preliminary design for placement of fiber optic 
        cable and wireless towers;
            (9) monetary value of the rights-of-way necessary 
        for such installation;
            (10) applicability and transferability of the 
        benefits of such installation to other rural corridors; 
        and
            (11) safety and other operational issues associated 
        with the installation and maintenance of fiber optic 
        cabling and wire infrastructure within Interstate 
        System rights-of-way and other publicly owned rights-
        of-way.
    (c) Corridor Locations.--The study required under 
subsection (a) shall be conducted for corridors along--
            (1) Interstate Route 90 through rural Wisconsin, 
        southern Minnesota, northern Iowa, and South Dakota;
            (2) Interstate Route 20 through Alabama, 
        Mississippi, and northern Louisiana;
            (3) Interstate Route 91 through Vermont, New 
        Hampshire, and Massachusetts; and
            (4) any other rural corridor the Secretary 
        considers appropriate.
    (d) Report to Congress.--Not later than September 30, 2007, 
the Secretary shall submit to Congress a report on the results 
of the study, including any recommendations of the Secretary.
    (e) Federal Share.--The Federal share of the cost of the 
study shall be 100 percent.
    (f) Funding.--Of the amounts made available under section 
5101(a)(5) of this Act, $1,000,000 shall be available for 
fiscal year 2006, and $2,000,000 shall be available for fiscal 
year 2007 to carry out this section.

SEC. 5508. TRANSPORTATION TECHNOLOGY INNOVATION AND DEMONSTRATION 
                    PROGRAM.

    Section 5117(b) of the Transportation Equity Act for the 
21st Century (112 Stat. 449; 112 Stat. 864; 115 Stat. 2330) is 
amended by striking paragraph (3) and inserting the following:
            ``(3) Intelligent transportation infrastructure.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Congested area.--The term 
                        `congested area' means a metropolitan 
                        area that experiences significant 
                        traffic congestion, as determined by 
                        the Secretary on an annual basis, 
                        including the metropolitan areas of 
                        Albany, Atlanta, Austin, Burlington, 
                        Charlotte, Columbus, Greensboro, 
                        Hartford, Jacksonville, Kansas City, 
                        Louisville, Milwaukee, Minneapolis-St. 
                        Paul, Nashville, New Orleans, Norfolk, 
                        Raleigh, Richmond, Sacramento, San 
                        Jose, Tuscson, and Tulsa.
                            ``(ii) Deployment area.--The term 
                        `deployment area' means any of the 
                        metropolitan areas of Baltimore, 
                        Birmingham, Boston, Chicago, Cleveland, 
                        Dallas/Ft. Worth, Denver, Detroit, 
                        Houston, Indianapolis, Las Vegas, Los 
                        Angeles, Miami, New York/Northern New 
                        Jersey, Northern Kentucky/Cincinnati, 
                        Oklahoma City, Orlando, Philadelphia, 
                        Phoenix, Pittsburgh, Portland, 
                        Providence, Salt Lake, San Diego, San 
                        Francisco, St. Louis, Seattle, Tampa, 
                        and Washington, District of Columbia.
                            ``(iii) Metropolitan area.--The 
                        term `metropolitan area', including a 
                        major transportation corridor serving a 
                        metropolitan area, means any area 
                        that--
                                    ``(I) has a population 
                                exceeding 300,000; and
                                    ``(II) meets criteria 
                                established by the Secretary in 
                                conjunction with the 
                                intelligent vehicle highway 
                                systems corridors program.
                            ``(iv) Original contract.--The term 
                        `original contract' means the 
                        Department of Transportation contract 
                        numbered DTTS 59-99-D-00445 T020013.
                            ``(v) Program.--The term `program' 
                        means the 2-part intelligent 
                        transportation infrastructure program 
                        carried out under this paragraph.
                            ``(vi) State transportation 
                        department.--The term `State 
                        transportation department' means--
                                    ``(I) a State 
                                transportation department (as 
                                defined in section 101 of title 
                                23, United States Code); and
                                    ``(II) a designee of a 
                                State transportation department 
                                (as so defined) for the purpose 
                                of entering into contracts.
                            ``(vii) Uncommitted funds.--The 
                        term `uncommitted funds' means the 
                        total amount of funds that, as of the 
                        date that is 180 days after the date of 
                        enactment of the SAFETEA-LU, remain 
                        uncommitted under the original 
                        contract.
                    ``(B) Intelligent transportation 
                infrastructure program.--
                            ``(i) In general.--The Secretary 
                        shall carry out a 2-part intelligent 
                        transportation infrastructure program 
                        in accordance with this paragraph to 
                        advance the deployment of an 
                        operational intelligent transportation 
                        infrastructure system, through 
                        measurement of various transportation 
                        system activities, to simultaneously--
                                    ``(I) aid in transportation 
                                planning and analysis; and
                                    ``(II) make a significant 
                                contribution to the ITS program 
                                under this title.
                            ``(ii) Objectives.--The objectives 
                        of the program are--
                                    ``(I) to build or integrate 
                                an infrastructure of the 
                                measurement of various 
                                transportation system metrics 
                                to aid in planning, analysis, 
                                and maintenance of the 
                                Department of Transportation, 
                                including the buildout, 
                                maintenance, and operation of 
                                greater than 40 metropolitan 
                                area systems with a total cost 
                                not to exceed $2,000,000 for 
                                each metropolitan area;
                                    ``(II) to provide private 
                                technology commercialization 
                                initiatives to generate 
                                revenues that will be 
                                reinvested in the intelligent 
                                transportation infrastructure 
                                system;
                                    ``(III) to aggregate data 
                                into reports for multipoint 
                                data distribution techniques; 
                                and
                                    ``(IV) with respect to part 
                                I of the program under 
                                subparagraph (C), to use an 
                                advanced information system 
                                designed and monitored by an 
                                entity with experience with the 
                                Department of Transportation in 
                                the design and monitoring of 
                                high-reliability, mission-
                                critical voice and data 
                                systems.
                    ``(C) Part I.--
                            ``(i) In general.--In carrying out 
                        part I of the program, the Secretary 
                        shall permit the entity to which the 
                        original contract was awarded to use 
                        uncommitted funds to deploy intelligent 
                        transportation infrastructure systems 
                        that have been accepted by the 
                        Secretary--
                                    ``(I) in accordance with 
                                the terms of the original 
                                contract; and
                                    ``(II) in any deployment 
                                area, with the consent of the 
                                State transportation department 
                                for the deployment area.
                            ``(ii) Applicable conditions.--The 
                        same asset ownership, maintenance, 
                        fixed price contract, and revenue 
                        sharing model, and the same 
                        competitively selected consortium 
                        leader, as were used for the deployment 
                        of intelligent transportation 
                        infrastructure systems under the 
                        original contract before the date of 
                        enactment of the SAFETEA-LU shall apply 
                        to each deployment carried out under 
                        clause (i).
                            ``(iii) Deployment in congested 
                        areas.--If the entity referred to in 
                        clause (i) is unable to use the 
                        uncommitted funds by deploying 
                        intelligent transportation 
                        infrastructure systems in deployment 
                        areas, as determined by the Secretary, 
                        the entity may deploy the systems in 
                        accordance with this paragraph in 1 or 
                        more congested areas, with the consent 
                        of the State transportation departments 
                        for the congested areas.
                    ``(D) Part II.--
                            ``(i) In general.--In carrying out 
                        part II of the program, the Secretary 
                        shall award, on a competitive basis, 
                        contracts for the deployment of 
                        intelligent transportation 
                        infrastructure systems that have been 
                        accepted by the Secretary in congested 
                        areas, with the consent of the State 
                        transportation departments for the 
                        congested areas.
                            ``(ii) Requirements.--The Secretary 
                        shall award contracts under clause 
                        (i)--
                                    ``(I) for individual 
                                congested areas among entities 
                                that seek to deploy intelligent 
                                transportation infrastructure 
                                systems in the congested areas; 
                                and
                                    ``(II) on the condition 
                                that the terms of each contract 
                                awarded requires the entity 
                                deploying such system to ensure 
                                that the deployed system is 
                                compatible (as determined by 
                                the Secretary) with systems 
                                deployed in other congested 
                                areas under this paragraph.
                            ``(iii) Provisions in contracts.--
                        The Secretary shall require that each 
                        contract for the deployment of an 
                        intelligent transportation 
                        infrastructure system under this 
                        subparagraph contain such provisions 
                        relating to asset ownership, 
                        maintenance, fixed price, and revenue 
                        sharing as the Secretary considers to 
                        be appropriate.
                    ``(E) Use of funds for undeployed 
                systems.--
                            ``(i) In general.--If, under part I 
                        or part II of the program, a State 
                        transportation department for a 
                        deployment area or congested area does 
                        not consent by the later of the date 
                        that is 180 days after the date of 
                        enactment of the SAFETEA-LU, or another 
                        date determined jointly by the State 
                        transportation department and the 
                        deployment area or congested area, to 
                        participate in the deployment of an 
                        intelligent transportation 
                        infrastructure system in the deployment 
                        area or congested area, upon 
                        application by any other deployment 
                        area or congested area that has 
                        consented by that date to participate 
                        in the deployment of such a system, the 
                        Secretary shall distribute any such 
                        unused funds to any other deployment or 
                        congested area that has consented by 
                        that date to participate in the 
                        deployment of such a system.
                            ``(ii) No inclusion in cost 
                        limitation.--Costs paid using funds 
                        provided through a distribution under 
                        clause (i) shall not be considered in 
                        determining the limitation on maximum 
                        cost described in subparagraph (F)(ii).
                    ``(F) Federal share; limits on costs of 
                systems for metropolitan areas.--
                            ``(i) Federal share.--Subject to 
                        clause (ii), the Federal share of the 
                        cost of any project or activity carried 
                        out under the program shall be 80 
                        percent.
                            ``(ii) Limit on costs of system for 
                        each metropolitan area.--
                                    ``(I) In general.--Not more 
                                than $2,000,000 may be provided 
                                under this paragraph for 
                                deployment of an intelligent 
                                transportation infrastructure 
                                system for a metropolitan area.
                                    ``(II) Funding under each 
                                part.--A metropolitan area in 
                                which an intelligent 
                                transportation infrastructure 
                                system is deployed under part I 
                                or part II under subparagraphs 
                                (C) and (D), respectively, 
                                including through a 
                                distribution of funds under 
                                subparagraph (E), may not 
                                receive any additional 
                                deployment under the other part 
                                of the program.
                    ``(G) Use of rights-of-way.--
                            ``(i) In general.--An intelligent 
                        transportation system project described 
                        in this paragraph or paragraph (6) that 
                        involves privately-owned intelligent 
                        transportation system components and is 
                        carried out using funds made available 
                        from the Highway Trust Fund shall not 
                        be subject to any law (including a 
                        regulation) of a State or political 
                        subdivision of a State prohibiting or 
                        regulating commercial activities in the 
                        rights-of-way of a highway for which 
                        Federal-aid highway funds have been 
                        used for planning, design, 
                        construction, or maintenance for the 
                        project, if the Secretary determines 
                        that such use is in the public 
                        interest.
                            ``(ii) Effect of subparagraph.--
                        Nothing in this subparagraph affects 
                        the authority of a State or political 
                        subdivision of a State--
                                    ``(I) to regulate highway 
                                safety; or
                                    ``(II) under sections 253 
                                and 332(c)(7) of the 
                                Communications Act of 1934 (47 
                                U.S.C. 253, 332(c)(7)).
                    ``(H) Authorization of appropriations.--
                There is authorized to be appropriated such 
                sums as may be necessary for each of fiscal 
                years 2005 through 2009 to carry out this 
                paragraph.''.

SEC. 5509. REPEAL.

    Effective October 1 of 2005, sections 5208 and 5209 of 
subtitle C of title V of The Transportation Equity Act for the 
21st Century (23 U.S.C. 502 note; 112 Stat. 452-463) is 
repealed.

SEC. 5510. 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 Committees on Appropriations, Transportation 
and Infrastructure, and Science of the House of Representatives 
and the Committees on Appropriations and Environment and Public 
Works of the Senate, notice of that action shall be 
concurrently provided to the Committee of Transportation and 
Infrastructure and the Committee on Science of the House of 
Representative and the Committee on Environment and Public 
Works of the Senate.
    (b) Notice of Reorganization.--On or before the 15th day 
preceding the date of any major reorganization of a program, 
project, or activity of the Department for which funds are 
authorized by this title or the amendments made by this title, 
the Secretary shall provide noticeof the reorganization to the 
Committees on Transportation and Infrastructure and Science of the 
House of Representatives and the Committee on Environment and Public 
Works of the Senate.

SEC. 5511. MOTORCYCLE CRASH CAUSATION STUDY GRANTS.

    (a) Grants.--The Secretary shall provide grants to the 
Oklahoma Transportation Center for the purpose of conducting a 
comprehensive, in-depth motorcycle crash causation study that 
employs the common international methodology for in-depth 
motorcycle accident investigation of the Organization for 
Economic Cooperation and Development.
    (b) Funding.--Of the amounts made available under section 
5101(a)(1) of this Act, $1,408,000 for each of fiscal years 
2006 and 2007 shall be available to carry out this section.

SEC. 5512. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM.

    (a) Continuation and Acceleration of Transims Deployment.--
            (1) In general.--The Secretary shall accelerate the 
        deployment of the advanced transportation model known 
        as the ``Transportation Analysis Simulation System'' 
        (in this section referred to as ``TRANSIMS''), 
        developed by the Los Alamos National Laboratory.
            (2) Program appreciation.--The purpose of the 
        program is to assist State departments of 
        transportation and metropolitan planning 
        organizations--
                    (A) to implement TRANSIMS;
                    (B) to develop methods for TRANSIMS 
                applications to transportation planning, air 
                quality analysis, regulatory compliance, and 
                response to natural disasters and other 
                transportation disruptions; and
                    (C) to provide training and technical 
                assistance for the implementation of TRANSIMS.
    (b) Required Activities.--The Secretary shall use funds 
made available to carry out this section to--
            (1) provide funding to State departments of 
        transportation and metropolitan planning organizations 
        serving transportation management areas designated 
        under chapter 52 of title 49, United States Code, 
        representing a diversity of populations, geographic 
        regions, and analytic needs to implement TRANSIMS;
            (2) develop methods to demonstrate a wide spectrum 
        of TRANSIMS applications to support local, 
        metropolitan, statewide transportation planning, 
        including integrating highway and transit operational 
        considerations into the transportation Planning 
        process, and estimating the effects of induced travel 
        demand and transit ridership in making transportation 
        conformity determinations where applicable;
            (3) provide training and technical assistance with 
        respect to the implementation and application of 
        TRANSIMS to States, local governments, and metropolitan 
        planning organizations with responsibility for travel 
        modeling;
            (4) to further develop TRANSIMS for additional 
        applications, including--
                    (A) congestion analyses;
                    (B) major investment studies;
                    (C) economic impact analyses;
                    (D) alternative analyses;
                    (E) freight movement studies;
                    (F) emergency evacuation studies;
                    (G) port studies; and
                    (H) airport access studies;
                    (I) induced demand studies; and
                    (J) transit ridership analysis.
    (c) Eligible Activities.--The program may support the 
development of methods to plan for the transportation response 
to chemical and biological terrorism and other security 
concerns.
    (d) Allocation of Funds.--Not more than 75 percent of the 
funds made available to carry out this section may be allocated 
to activities described in subsection (b)(1).
    (e) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $2,625,000 for each of fiscal years 
2006 through 2009 shall be available to carry out this section.

SEC. 5513. RESEARCH GRANTS.

    (a) Thermal Imaging.--
            (1) In general.--The Secretary shall make a grant 
        to carry out a demonstration project that uses a 
        thermal imaging inspection system (TIIS) that leverages 
        state-of-the-art thermal imagery technology, integrated 
        with signature recognition software, providing the 
        capability to identify, in real time, faults and 
        failures in tires, brakes and bearings mounted on 
        commercial motor vehicles.
            (2) Use of funds.--Funds shall be used--
                    (A) to employ a TIIS in a field 
                environment, along the Interstate, to further 
                assess the system's ability to identify faults 
                in tires, brakes, and bearings mounted on 
                commercial motor vehicles;
                    (B) to establish, through statistical 
                analysis, the probability of failure for each 
                component; and
                    (C) to develop and integrate a predictive 
                tool into the TIIS, which identifies an 
                impending tire, brake, or bearing failure and 
                provides the use a time frame in which this 
                failure may occur.
            (3) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $2,000,000 in fiscal 
        year 2006 shall be available to carry out this 
        subsection.
    (b) Transportation Injury Research.--
            (1) Grant.--The Secretary shall make a grant to 
        maintain a center for transportation injury research at 
        the Calspan University of Buffalo Research Center, 
        through the North Campus facility located in Amherst, 
        New York, and affiliated with the State University of 
        New York at Buffalo.
            (2) Recoup costs.-- Notwithstanding current law, 
        Federal regulations, or Office of Management and Budget 
        circulars or guidance, the Center shall be permitted to 
        recoup direct and indirect costs and apply a 7 percent 
        fee to the grant made under this subsection.
            (3) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $1,250,000 in each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
    (c) Technology Transfer Grant.--
            (1) Grant.--The Secretary shall make grants to the 
        Argonne National Laboratory-Advanced Transportation 
        Technology Center for the purpose of conducting 
        transportation research and demonstration projects that 
        would lead to the exchange of research results with the 
        private sector and collaboration with universities at a 
        centralized location conducive for technology transfer.
            (2) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $4,000,000 in each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
    (d) Appalachian Regional Commission.--
            (1) Grant.--The Secretary shall make a grant to the 
        Appalachian Regional Commission to conduct a 
        feasibility study for the creation of a system of 
        inland ports and distribution centers in Appalachia.
            (2) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $500,000 in fiscal year 
        2006 shall be available to carry out this subsection.
    (e) Automobile Accident Injury Research.--
            (1) Grants.--The Secretary shall make a grant to 
        the Forsyth Institute for research and technology 
        development for preventing and minimizing head, 
        craniofacial, and spinal cord injuries resulting from 
        automobile accidents.
            (2) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $500,000 in each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
    (f) Rural Transportation Research.--
            (1) Grants.--The Secretary shall make grants to the 
        New England Transportation Institute in White River 
        Junction, Vermont for rural transportation research.
            (2) Funding.--
                    (A) In general.--Of the amounts made 
                available by section 5101(a)(1) of this Act, 
                $1,000,000 for fiscal year 2006 shall be 
                available to carry out this subsection and 
                shall remain available until expended.
                    (B) Cost-sharing.--
                            (i) Federal share.--The Federal 
                        Share of the cost of activities carried 
                        out under this subsection shall be 80 
                        percent.
                            (ii) Non-federal share.--The fair 
                        market value of any materials or 
                        services provided by the non-Federal 
                        sponsor for activities under this 
                        subsection shall be credited to the 
                        non-Federal share.
    (g) Rural Transportation Research Initiative.--
            (1) Grants.--For each of fiscal years 2006 through 
        2009, the Secretary shall provide a grant to the Upper 
        Great Plains Transportation Institute at North Dakota 
        State University for use in carrying out the Rural 
        Transportation Research Initiative.
            (2) Funding.--
                    (A) In general.--Of the amounts made 
                available by section 5101(a)(1) of this Act, 
                $500,000 for each of fiscal years 2006 through 
                2009 shall be available to carry out this 
                subsection, and shall remain available until 
                expended.
                    (B) Cost-sharing.--
                            (i) Federal share.--The Federal 
                        share of the cost of the activities 
                        carried out under this subsection shall 
                        be 80 percent.
                            (ii) Non-federal share.--The fair 
                        market value of any materials or 
                        services provided by the non-Federal 
                        project sponsor for any activity under 
                        this subsection shall be credited to 
                        the non-Federal share.
    (h) Hydrogen-Powered Transportation Research Initiative.--
            (1) Grants.--For each of fiscal years 2006 through 
        2009, the Secretary shall provide a grant to the 
        University of Montana for use in carrying out the 
        Hydrogen-Powered Transportation Research Initiative.
            (2) Funding.--
                    (A) In general.--Of the amounts made 
                available by section 5101(a)(1) of this Act, 
                $750,000 for each of fiscal years 2006 through 
                2009 shall be available to carry out this 
                subsection, and shall remain available until 
                expended.
                    (B) Cost-sharing.--
                            (i) Federal share.--The Federal 
                        share of the cost of the activities 
                        carried out under this subsection shall 
                        be 80 percent.
                            (ii) Non-federal share.--The fair 
                        market value of any materials or 
                        services provided by the non-Federal 
                        project sponsor for an activity under 
                        this subsection shall be credited to 
                        the non-Federal share.
    (i) Cold Region and Rural Transportation Research, 
Maintenance, and Operations.--
            (1) Grants.--The Secretary shall provide grants to 
        the Western Transportation Institute at Montana State 
        University, for use in developing a research facility 
        in Lewistown, Montana, for basic and applied research 
        and testing on surface transportation issues facing 
        rural and cold regions.
            (2) Funding.--
                    (A) In general.--Of the amounts made 
                available by section 5101(a)(1) of this Act, 
                $1,000,000 for each of fiscal years 2006 
                through 2009 shall be available to carry out 
                this subsection, to remain available until 
                expended.
                    (B) Cost-sharing.--
                            (i) Federal share.--The Federal 
                        share of the cost of the activities 
                        carried out under this subsection shall 
                        be 80 percent.
                            (ii) Non-federal share.--The fair 
                        market value of any materials or 
                        services provided by the non-Federal 
                        project sponsor for an activity under 
                        this section shall be credited to the 
                        non-Federal share.
    (j) Advanced Vehicle Technology.--
            (1) Grant.--The Secretary shall make a grant to the 
        University of Kansas Transportation Research Institute 
        for research and development of advanced vehicle 
        technology concepts, focused on vehicle emissions, fuel 
        cells and catalytic processes, and intelligent 
        transportation systems.
            (2) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $2,500,000 in each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
    (k) Asphalt Research Consortium.--
            (1) Grant.--The Secretary shall make a grant to the 
        asphalt research consortium lead by the Western 
        Research Institute to research flexible pavement and 
        extending the life-cycle of asphalts.
            (2) Funding.--Of the amounts made available under 
        section 5101(a)(1) of this Act, $7,500,000 in each of 
        fiscal years 2006 through 2009 shall be available to 
        carry out this subsection.
    (l) Renewable Transportation Systems Research.--
            (1) Grants.--The Secretary shall make grants to the 
        University of Vermont for research, development and 
        field testing of hydrogen fuel cell and biofuel 
        transportation technology.
            (2) Funding.--
                    (A) In general.--Of the amounts made 
                available for section 5101(a)(1) of this Act, 
                $1,000,000 for fiscal year 2006 to remain 
                available until expended.
                    (B) Cost-sharing.--
                            (i) Federal share.--The Federal 
                        Share of the cost of activities carried 
                        out under this section shall be 80 
                        percent.
                            (ii) Non-federal share.--The fair 
                        market value of any materials or 
                        services provided by the non-federal 
                        sponsor for activities under this 
                        section shall be credited to the non-
                        federal share.
    (m) Federal Share.--The Federal share of the cost of 
activities carried out in accordance with this section shall be 
80 percent unless otherwise expressly provided by this section 
or otherwise determined by the Secretary.

SEC. 5514. COMPETITION FOR SPECIFICATION OF ALTERNATIVE TYPES OF 
                    CULVERT PIPES.

    Notwithstanding any contrary interpretation of appendix A 
of subpart D of section 635.411 of volume 23, Code of Federal 
Regulations (as in existence on the date of enactment of this 
Act), not later than 180 days after the date of enactment of 
this Act, the Secretary shall ensure that States provide for 
competition with respect to the specification of alternative 
types of culvert pipes through requirements that are 
commensurate with competition requirements for other 
construction materials, as determined by the Secretary.

            Subtitle F--Bureau of Transportation Statistics

SEC. 5601. BUREAU OF TRANSPORTATION STATISTICS.

    (a) In General.--Section 111 of title 49, United States 
Code, is amended to read as follows:

``Sec. 111. Bureau of Transportation Statistics

    ``(a) Establishment.--There is established in the Research 
and Innovative Technology Administration a Bureau of 
Transportation Statistics.
    ``(b) Director.--
            ``(1) Appointment.--The Bureau shall be headed by a 
        Director who shall be appointed in the competitive 
        service by the Secretary of Transportation.
            ``(2) Qualifications.--The Director shall be 
        appointed from among individuals who are qualified to 
        serve as the Director by virtue of their training and 
        experience in the collection, analysis, and use of 
        transportation statistics.
    ``(c) Responsibilities.--The Director of the Bureau shall 
serve as the Secretary's senior advisor on data and statistics 
and shall be responsible for carrying out the following duties:
            ``(1) Providing data, statistics, and analysis to 
        transportation decisionmakers.--Ensuring that the 
        statistics compiled under paragraph (5) are designed to 
        support transportation decisionmaking by the Federal 
        Government, State and local governments, metropolitan 
        planning organizations, transportation-related 
        associations, the private sector (including the freight 
        community), and the public.
            ``(2) Coordinating collection of information.--
        Working with the operating administrations of the 
        Department to establish and implement the Bureau's data 
        programs and to improve the coordination of information 
        collection efforts with other Federal agencies.
            ``(3) Data modernization.--Continually improving 
        surveys and data collection methods to improve the 
        accuracy and utility of transportation statistics.
            ``(4) Encouraging data standardization.--
        Encouraging the standardization of data, data 
        collection methods, and data management and storage 
        technologies for data collected by the Bureau, the 
        operating administrations of the Department of 
        Transportation, States, local governments, metropolitan 
        planning organizations, and private sector entities.
            ``(5) Transportation statistics.--Collecting, 
        compiling, analyzing, and publishing a comprehensive 
        set of transportation statistics on the performance and 
        impacts of the national transportation system, 
        including statistics on--
                    ``(A) productivity in various parts of the 
                transportation sector;
                    ``(B) traffic flows for all modes of 
                transportation;
                    ``(C) other elements of the intermodal 
                transportation database established under 
                subsection (e);
                    ``(D) travel times and measures of 
                congestion;
                    ``(E) vehicle weights and other vehicle 
                characteristics;
                    ``(F) demographic, economic, and other 
                variables influencing traveling behavior, 
                including choice of transportation mode and 
                goods movement;
                    ``(G) transportation costs for passenger 
                travel and goods movement;
                    ``(H) availability and use of mass transit 
                (including the number of passengers served by 
                each mass transit authority) and other forms of 
                for-hire passenger travel;
                    ``(I) frequency of vehicle and 
                transportation facility repairs and other 
                interruptions of transportation service;
                    ``(J) safety and security for travelers, 
                vehicles, and transportation systems;
                    ``(K) consequences of transportation for 
                the human and natural environment;
                    ``(L) the extent, connectivity, and 
                condition of the transportation system, 
                building on the national transportation atlas 
                database developed under subsection (g); and
                    ``(M) transportation-related variables that 
                influence the domestic economy and global 
                competitiveness.
            ``(6) National spatial data infrastructure.--
        Building and disseminating the transportation layer of 
        the National Spatial Data Infrastructure developed 
        under Executive Order No. 12906, including coordinating 
        the development of transportation geospatial data 
        standards, compiling intermodal geospatial data, and 
        collecting geospatial data that is not being collected 
        by others.
            ``(7) Issuing guidelines.--Issuing guidelines for 
        the collection of information by the Department 
        required for statistics to be compiled under paragraph 
        (5) in order to ensure that such information is 
        accurate, reliable, relevant, and in a form that 
        permits systematic analysis.
            ``(8) Review sources and reliability of 
        statistics.--Reviewing and reporting to the Secretary 
        on the sources and reliability of the statistics 
        proposed by the heads of the operating administrations 
        of the Department to measure outputs and outcomes as 
        required by the Government Performance and Results Act 
        of 1993 (Public Law 103-62; 107 Stat. 285), and the 
        amendments made by such Act, and carrying out such 
        other reviews of the sources and reliability of other 
        data collected or statistical information published by 
        the heads of the operating administrations of the 
        Department as shall be requested by the Secretary.
            ``(9) Making statistics accessible.--Making the 
        statistics published under this subsection readily 
        accessible to the public.
    ``(d) Information Needs Assessment.--
            ``(1) In general.--Not later than 60 days after the 
        date of enactment of the SAFETEA-LU, the Secretary 
        shall enter into an agreement with the National 
        Research Council to develop and publish a National 
        transportation information needs assessment (referred 
        to in this subsection as the `assessment'). The 
        assessment shall be submitted to the Secretary and the 
        appropriate committees of Congress not later than 24 
        months after such agreement is entered into.
            ``(2) Content.--The assessment shall--
                    ``(A) identify, in order of priority, the 
                transportation data that is not being collected 
                by the Bureau, operating administrations of the 
                Department, or other Federal, State, or local 
                entities, but is needed to improve 
                transportation decisionmaking at the Federal, 
                State, and local levels and to fulfill the 
                requirements of subsection (c)(5);
                    ``(B) recommend whether the data identified 
                in subparagraph (A) should be collected by the 
                Bureau, other parts of the Department, or by 
                other Federal, State, or local entities, and 
                whether any data is of a higher priority than 
                data currently being collected;
                    ``(C) identify any data the Bureau or other 
                Federal, State, or local entity is collecting 
                that is not needed;
                    ``(D) describe new data collection methods 
                (including changes in surveys) and other 
                changes the Bureau or other Federal, State, or 
                local entity should implement to improve the 
                standardization, accuracy, and utility of 
                transportation data and statistics; and
                    ``(E) estimate the cost of implementing any 
                recommendations.
            ``(3) Consultation.--In developing the assessment, 
        the National Research Council shall consult with the 
        Department's Advisory Council on Transportation 
        Statistics and a representative cross-section of 
        transportation community stakeholders as well as other 
        Federal agencies, including the Environmental 
        Protection Agency, the Department of Energy, and the 
        Department of Housing and Urban Development.
            ``(4) Report to congress.--Not later than 180 days 
        after the date on which the National Research Council 
        submits the assessment under paragraph (1), the 
        Secretary shall submit a report to Congress that 
        describes--
                    ``(A) how the Department plans to fill the 
                data gaps identified under paragraph (2)(A);
                    ``(B) how the Department plans to stop 
                collecting data identified under paragraph 
                (2)(C);
                    ``(C) how the Department plans to implement 
                improved data collection methods and other 
                changes identified under paragraph (2)(D);
                    ``(D) the expected costs of implementing 
                subparagraphs (A), (B), and (C) of this 
                paragraph;
                    ``(E) any findings of the assessment under 
                paragraph (1) with which the Secretary 
                disagrees, and why; and
                    ``(F) any proposed statutory changes needed 
                to implement the findings of the assessment 
                under paragraph (1).
    ``(e) Intermodal Transportation Database.--
            ``(1) In general.--In consultation with the Under 
        Secretary for Policy, the Assistant Secretaries, and 
        the heads of the operating administrations of the 
        Department, the Director shall establish and maintain a 
        transportation database for all modes of 
        transportation.
            ``(2) Use.--The database shall be suitable for 
        analyses carried out by the Federal Government, the 
        States, and metropolitan planning organizations.
            ``(3) Contents.--The database shall include--
                    ``(A) information on the volumes and 
                patterns of movement of goods, including local, 
                interregional, and international movement, by 
                all modes of transportation and intermodal 
                combinations and by relevant classification;
                    ``(B) information on the volumes and 
                patterns of movement of people, including 
                local, interregional, and international 
                movements, by all modes of transportation 
                (including bicycle and pedestrian modes) and 
                intermodal combinations and by relevant 
                classification;
                    ``(C) information on the location and 
                connectivity of transportation facilities and 
                services; and
                    ``(D) a national accounting of expenditures 
                and capital stocks on each mode of 
                transportation and intermodal combination.
    ``(f) National Transportation Library.--
            ``(1) In general.--The Director shall establish and 
        maintain a National Transportation Library, which shall 
        contain a collection of statistical and other 
        information needed for transportation decisionmaking at 
        the Federal, State, and local levels.
            ``(2) Access.--The Director shall facilitate and 
        promote access to the Library, with the goal of 
        improving the ability of the transportation community 
        to share information and the ability of the Director to 
        make statistics readily accessible under subsection 
        (c)(9).
            ``(3) Coordination.--The Director shall work with 
        other transportation libraries and transportation 
        information providers, both public and private, to 
        achieve the goal specified in paragraph (2).
    ``(g) National Transportation Atlas Database.--
            ``(1) In general.--The Director shall develop and 
        maintain a national transportation atlas database that 
        is comprised of geospatial databases that depict--
                    ``(A) transportation networks;
                    ``(B) flows of people, goods, vehicles, and 
                craft over the networks; and
                    ``(C) social, economic, and environmental 
                conditions that affect or are affected by the 
                networks.
            ``(2) Intermodal network analysis.--The databases 
        shall be able to support intermodal network analysis.
    ``(h) Mandatory Response Authority for Freight Data 
Collection.--Whoever, being the owner, official, agent, person 
in charge, or assistant to the person in charge of any freight 
corporation, company,business, institution, establishment, or 
organization of any nature whatsoever, neglects or refuses, when 
requested by the Director or other authorized officer, employee, or 
contractor of the Bureau, to answer completely and correctly to the 
best of the individual's knowledge all questions relating to the 
corporation, company, business, institution, establishment, or other 
organization, or to make available records or statistics in the 
individual's official custody, contained in a data collection request 
prepared and submitted under the authority of subsection (c)(1), shall 
be fined not more than $500; but if the individual willfully gives a 
false answer to such a question, the individual shall be fined not more 
than $10,000.
    ``(i) Research and Development Grants.--The Secretary may 
make grants to, or enter into cooperative agreements or 
contracts with, public and nonprofit private entities 
(including State transportation departments, metropolitan 
planning organizations, and institutions of higher education) 
for--
            ``(1) investigation of the subjects specified in 
        subsection (c)(5) and research and development of new 
        methods of data collection, standardization, 
        management, integration, dissemination, interpretation, 
        and analysis;
            ``(2) demonstration programs by States, local 
        governments, and metropolitan planning organizations to 
        coordinate data collection, reporting, management, 
        storage, and archiving to simplify data comparisons 
        across jurisdictions;
            ``(3) development of electronic clearinghouses of 
        transportation data and related information, as part of 
        the National Transportation Library under subsection 
        (f); and
            ``(4) development and improvement of methods for 
        sharing geographic data, in support of the database 
        under subsection (g) and the National Spatial Data 
        Infrastructure.
    ``(j) Limitations on Statutory Construction.--Nothing in 
this section shall be construed--
            ``(1) to authorize the Bureau to require any other 
        department or agency to collect data; or
            ``(2) to reduce the authority of any other officer 
        of the Department to collect and disseminate data 
        independently.
    ``(k) Prohibition on Certain Disclosures.--
            ``(1) In general.--An officer, employee, or 
        contractor of the Bureau may not--
                    ``(A) make any disclosure in which the data 
                provided by an individual or organization under 
                subsection (c) can be identified;
                    ``(B) use the information provided under 
                subsection (c) for a nonstatistical purpose; or
                    ``(C) permit anyone other than an 
                individual authorized by the Director to 
                examine any individual report provided under 
                subsection (c).
            ``(2) Copies of reports.--
                    ``(A) In general.--No department, bureau, 
                agency, officer, or employee of the United 
                States (except the Director in carrying out 
                this section) may require, for any reason, a 
                copy of any report that has been filed under 
                subsection (c) with the Bureau or retained by 
                an individual respondent.
                    ``(B) Limitation on judicial proceedings.--
                A copy of a report described in subparagraph 
                (A) that has been retained by an individual 
                respondent or filed with the Bureau or any of 
                its employees, contractors, or agents--
                            ``(i) shall be immune from legal 
                        process; and
                            ``(ii) shall not, without the 
                        consent of the individual concerned, be 
                        admitted as evidence or used for any 
                        purpose in any action, suit, or other 
                        judicial or administrative proceedings.
                    ``(C) Applicability.--This paragraph shall 
                apply only to reports that permit information 
                concerning an individual or organization to be 
                reasonably determined by direct or indirect 
                means.
            ``(3) Informing respondent of use of data.--In a 
        case in which the Bureau is authorized by statute to 
        collect data or information for a nonstatistical 
        purpose, the Director shall clearly distinguish the 
        collection of the data or information, by rule and on 
        the collection instrument, so as to inform a respondent 
        who is requested or required to supply the data or 
        information of the nonstatistical purpose.
    ``(l) Transportation Statistics Annual Report.--The 
Director shall submit to the President and Congress a 
transportation statistics annual report which shall include 
information on items referred to in subsection (c)(5), 
documentation of methods used to obtain and ensure the quality 
of the statistics presented in the report, and recommendations 
for improving transportation statistical information.
    ``(m) Data Access.--The Director shall have access to 
transportation and transportation-related information in the 
possession of any Federal agency, except information--
            ``(1) the disclosure of which to another Federal 
        agency is expressly prohibited by law; or
            ``(2) the disclosure of which the agency possessing 
        the information determines would significantly impair 
        the discharge of authorities and responsibilities which 
        have been delegated to, or vested by law, in such 
        agency.
    ``(n) Proceeds of Data Product Sales.--Notwithstanding 
section 3302 of title 31, funds received by the Bureau from the 
sale of data products, for necessary expenses incurred, may be 
credited to the Highway Trust Fund (other than the Mass Transit 
Account) for the purpose of reimbursing the Bureau for the 
expenses.
    ``(o) Advisory Council on Transportation Statistics.--
            ``(1) Establishment.--The Director shall establish 
        an advisory council on transportation statistics.
            ``(2) Function.--The function of the advisory 
        council established under this subsection is to--
                    ``(A) advise the Director on the quality, 
                reliability, consistency, objectivity, and 
                relevance of transportation statistics and 
                analyses collected, supported, or disseminated 
                by the Bureau and the Department;
                    ``(B) provide input to and review the 
                report to Congress under subsection (d)(4); and
                    ``(C) advise the Director on methods to 
                encourage cooperation and interoperability of 
                transportation data collected by the Bureau, 
                the operating administrations of the 
                Department, States, local governments, 
                metropolitan planning organizations, and 
                private sector entities.
            ``(3) Membership.--The advisory council established 
        under this subsection shall be composed of not fewer 
        than 9 and not more than 11 members appointed by the 
        Director, who are not officers or employees of the 
        United States. Each member shall have expertise in 
        transportation data collection or analysis or 
        application; except that 1 member shall have expertise 
        in economics, 1 member shall have expertise in 
        statistics, and 1 member shall have experience in 
        transportation safety. At least 1 member shall be a 
        senior official of a State department of 
        transportation. Members shall include representation of 
        a cross-section of transportation community 
        stakeholders.
            ``(4) Terms of appointment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), members of the advisory 
                council shall be appointed to staggered terms 
                not to exceed 3 years. A member may be 
                renominated for 1 additional 3-year term.
                    ``(B) Current members.--Members serving on 
                the Advisory Council on Transportation 
                Statistics as of the date of enactment of the 
                SAFETEA-LU shall serve until the end of their 
                appointed terms.
            ``(5) Applicability of federal advisory committee 
        act.--The Federal Advisory Committee Act shall apply to 
        the Advisory Council established under this subsection, 
        except that section 14 of such Act shall not apply.''.

         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY

SEC. 6001. TRANSPORTATION PLANNING.

    (a) In General.--Sections 134 and 135 of title 23, United 
States Code, are amended to read as follows:

``Sec. 134. Metropolitan transportation planning

    ``(a) Policy.--It is in the national interest to--
            ``(1) encourage and promote the safe and efficient 
        management, operation, and development of surface 
        transportation systems that will serve the mobility 
        needs of people and freight and foster economic growth 
        and development within and between States and urbanized 
        areas, while minimizing transportation-related fuel 
        consumption and air pollution through metropolitan and 
        statewide transportation planning processes identified 
        in this chapter; and
            ``(2) encourage the continued improvement and 
        evolution of the metropolitan and statewide 
        transportation planning processes by metropolitan 
        planning organizations, State departments of 
        transportation, and public transit operators as guided 
        by the planning factors identified in subsection (h) 
        and section 135(d).
    ``(b) Definitions.--In this section and section 135, the 
following definitions apply:
            ``(1) Metropolitan planning area.--The term 
        `metropolitan planning area' means the geographic area 
        determined by agreement between the metropolitan 
        planning organization for the area and the Governor 
        under subsection (e).
            ``(2) Metropolitan planning organization.--The term 
        `metropolitan planning organization' means the policy 
        board of an organization created as a result of the 
        designation process in subsection (d).
            ``(3) Nonmetropolitan area.--The term 
        `nonmetropolitan area' means a geographic area outside 
        designated metropolitan planning areas.
            ``(4) Nonmetropolitan local official.--The term 
        `nonmetropolitan local official' means elected and 
        appointed officials of general purpose local government 
        in a nonmetropolitan area with responsibility for 
        transportation.
            ``(5) TIP.--The term `TIP' means a transportation 
        improvement program developed by a metropolitan 
        planning organization under subsection (j).
            ``(6) Urbanized area.--The term `urbanized area' 
        means a geographic area with a population of 50,000 or 
        more, as designated by the Bureau of the Census.
    ``(c) General Requirements.--
            ``(1) Development of long-range plans and tips.--To 
        accomplish the objectives in subsection (a), 
        metropolitan planning organizations designated under 
        subsection (d), in cooperation with the State and 
        public transportation operators, shall develop long-
        range transportation plans and transportation 
        improvement programs for metropolitan planning areas of 
        the State.
            ``(2) Contents.--The plans and TIPs for each 
        metropolitan area shall provide for the development and 
        integrated management and operation of transportation 
        systems and facilities (including accessible pedestrian 
        walkways and bicycle transportation facilities) that 
        will function as an intermodal transportation system 
        for the metropolitan planning area and as an integral 
        part of an intermodal transportation system for the 
        State and the United States.
            ``(3) Process of development.--The process for 
        developing the plans and TIPs shall provide for 
        consideration of all modes of transportation and shall 
        be continuing, cooperative, and comprehensive to the 
        degree appropriate, based on the complexity of the 
        transportation problems to be addressed.
    ``(d) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation 
        planning process required by this section, a 
        metropolitan planning organization shall be designated 
        for each urbanized area with a population of more than 
        50,000 individuals--
                    ``(A) by agreement between the Governor and 
                units of general purpose local government that 
                together represent at least 75 percent of the 
                affected population (including the largest 
                incorporated city (based on population) as 
                named by the Bureau of the Census); or
                    ``(B) in accordance with procedures 
                established by applicable State or local law.
            ``(2) Structure.--Each metropolitan planning 
        organization that serves an area designated as a 
        transportation management area, when designated or 
        redesignated under this subsection, shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that 
                administer or operate major modes of 
                transportation in the metropolitan area; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--
        Nothing in this subsection shall be construed to 
        interfere with the authority, under any State law in 
        effect on December 18, 1991, of a public agency with 
        multimodal transportation responsibilities to--
                    ``(A) develop the plans and TIPs for 
                adoption by a metropolitan planning 
                organization; and
                    ``(B) develop long-range capital plans, 
                coordinate transit services and projects, and 
                carry out other activities pursuant to State 
                law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this 
        subsection or any other provision of law shall remain 
        in effect until the metropolitan planning organization 
        is redesignated under paragraph (5).
            ``(5) Redesignation procedures.--A metropolitan 
        planning organization may be redesignated by agreement 
        between the Governor and units of general purpose local 
        government that together represent at least 75 percent 
        of the existing planning area population (including the 
        largest incorporated city (based on population) as 
        named by the Bureau of the Census) as appropriate to 
        carry out this section.
            ``(6) Designation of more than 1 metropolitan 
        planning organization.--More than 1 metropolitan 
        planning organization may be designated within an 
        existing metropolitan planning area only if the 
        Governor and the existing metropolitan planning 
        organization determine that the size and complexity of 
        the existing metropolitan planning area make 
        designation of more than 1 metropolitan planning 
        organization for the area appropriate.
    ``(e) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this 
        section, the boundaries of a metropolitan planning area 
        shall be determined by agreement between the 
        metropolitan planning organization and the Governor.
            ``(2) Included area.--Each metropolitan planning 
        area--
                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected 
                to become urbanized within a 20-year forecast 
                period for the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Bureau of 
                the Census.
            ``(3) Identification of new urbanized areas within 
        existing planning area boundaries.--The designation by 
        the Bureau of the Census of new urbanized areas within 
        an existing metropolitan planning area shall not 
        require the redesignation of the existing metropolitan 
        planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--Notwithstanding paragraph (2), in the 
        case of an urbanized area designated as a nonattainment 
        area for ozone or carbon monoxide under the Clean Air 
        Act (42 U.S.C. 7401 et seq.) as of the date of 
        enactment of the SAFETEA-LU, the boundaries of the 
        metropolitan planning area in existence as of such date 
        of enactment shall be retained; except that the 
        boundaries may be adjusted by agreement of the Governor 
        and affected metropolitan planning organizations in the 
        manner described in subsection (d)(5).
            ``(5) New metropolitan planning areas in 
        nonattainment.--In the case of an urbanized area 
        designated after the date of enactment of the SAFETEA-
        LU, as a nonattainment area for ozone or carbon 
        monoxide, the boundaries of the metropolitan planning 
        area--
                    ``(A) shall be established in the manner 
                described in subsection (d)(1);
                    ``(B) shall encompass the areas described 
                in paragraph (2)(A);
                    ``(C) may encompass the areas described in 
                paragraph (2)(B); and
                    ``(D) may address any nonattainment area 
                identified under the Clean Air Act for ozone or 
                carbon monoxide.
    ``(f) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage 
        each Governor with responsibility for a portion of a 
        multistate metropolitan area and the appropriate 
        metropolitan planning organizations to provide 
        coordinated transportation planning for the entire 
        metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress 
        is granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, 
                not in conflict with any law of the United 
                States, for cooperative efforts and mutual 
                assistance in support of activities authorized 
                under this section as the activities pertain to 
                interstate areas and localities within the 
                States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine 
                desirable for making the agreements and 
                compacts effective.
            ``(3) Lake tahoe region.--
                    ``(A) Definition.--In this paragraph, the 
                term `Lake Tahoe region' has the meaning given 
                the term `region' in subdivision (a) of article 
                II of the Tahoe Regional Planning Compact, as 
                set forth in the first section of Public Law 
                96-551 (94 Stat. 3234).
                    ``(B) Transportation planning process.--The 
                Secretary shall--
                            ``(i) establish with the Federal 
                        land management agencies that have 
                        jurisdiction over land in the Lake 
                        Tahoe region a transportation planning 
                        process for the region; and
                            ``(ii) coordinate the 
                        transportation planning process with 
                        the planning process required of State 
                        and local governments under this 
                        section and section 135.
                    ``(C) Interstate compact.--
                            ``(i) In general.--Subject to 
                        clause (ii), and notwithstanding 
                        subsection (b), to carry out the 
                        transportation planning process 
                        required by this section, the consent 
                        of Congress is granted to the States of 
                        California and Nevada to designate a 
                        metropolitan planning organization for 
                        the Lake Tahoe region, by agreement 
                        between the Governors of the States of 
                        California and Nevada and units of 
                        general purpose local government that 
                        together represent at least 75 percent 
                        of the affected population (including 
                        the central city or cities (as defined 
                        by the Bureau of the Census)), or in 
                        accordance with procedures established 
                        by applicable State or local law.
                            ``(ii) Involvement of federal land 
                        management agencies.--
                                    ``(I) Representation.--The 
                                policy board of a metropolitan 
                                planning organization 
                                designated under clause (i) 
                                shall include a representative 
                                of each Federal land management 
                                agency that has jurisdiction 
                                over land in the Lake Tahoe 
                                region.
                                    ``(II) Funding.--In 
                                addition to funds made 
                                available to the metropolitan 
                                planning organization for the 
                                Lake Tahoe region under other 
                                provisions of this title and 
                                under chapter 53 of title 49, 1 
                                percent of the funds allocated 
                                under section 202 shall be used 
                                to carry out the transportation 
                                planning process for the Lake 
                                Tahoe region under this 
                                subparagraph.
                    ``(D) Activities.--Highway projects 
                included in transportation plans developed 
                under this paragraph--
                            ``(i) shall be selected for funding 
                        in a manner that facilitates the 
                        participation of the Federal land 
                        management agencies that have 
                        jurisdiction over land in the Lake 
                        Tahoe region; and
                            ``(ii) may, in accordance with 
                        chapter 2, be funded using funds 
                        allocated under section 202.
            ``(4) Reservation of rights.--The right to alter, 
        amend, or repeal interstate compacts entered into under 
        this subsection is expressly reserved.
    ``(g) MPO Consultation in Plan and TIP Coordination.--
            ``(1) Nonattainment areas.--If more than 1 
        metropolitan planning organization has authority within 
        a metropolitan area or an area which is designated as a 
        nonattainment area for ozone or carbon monoxide under 
        the Clean Air Act, each metropolitan planning 
        organization shall consult with the other metropolitan 
        planning organizations designated for such area and the 
        State in the coordination of plans and TIPs required by 
        this section.
            ``(2) Transportation improvements located in 
        multiple mpos.--If a transportation improvement, funded 
        from the Highway Trust Fund or authorized under chapter 
        53 of title 49, is located within the boundaries of 
        more than 1 metropolitan planning area, the 
        metropolitan planning organizations shall coordinate 
        plans and TIPs regarding the transportation 
        improvement.
            ``(3) Relationship with other planning officials.--
        The Secretary shall encourage each metropolitan 
        planning organization to consult with officials 
        responsible for other types of planning activities that 
        are affected by transportation in the area (including 
        State and local planned growth, economic development, 
        environmental protection, airport operations, and 
        freight movements) or to coordinate its planning 
        process, to the maximum extent practicable, with such 
        planning activities. Under the metropolitan planning 
        process, transportation plans and TIPs shall be 
        developed with due consideration of other related 
        planning activities within the metropolitan area, and 
        the process shall provide for the design and delivery 
        of transportation services within the metropolitan area 
        that are provided by--
                    ``(A) recipients of assistance under 
                chapter 53 of title 49;
                    ``(B) governmental agencies and nonprofit 
                organizations (including representatives of the 
                agencies and organizations) that receive 
                Federal assistance from a source other than the 
                Department of Transportation to provide 
                nonemergency transportation services; and
                    ``(C) recipients of assistance under 
                section 204.
    ``(h) Scope of Planning Process.--
            ``(1) In general.--The metropolitan planning 
        process for a metropolitan planning area under this 
        section shall provide for consideration of projects and 
        strategies that will--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling 
                global competitiveness, productivity, and 
                efficiency;
                    ``(B) increase the safety of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(C) increase the security of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(D) increase the accessibility and 
                mobility of people and for freight;
                    ``(E) protect and enhance the environment, 
                promote energy conservation, improve the 
                quality of life, and promote consistency 
                between transportation improvements and State 
                and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and 
                connectivity of the transportation system, 
                across and between modes, for people and 
                freight;
                    ``(G) promote efficient system management 
                and operation; and
                    ``(H) emphasize the preservation of the 
                existing transportation system.
            ``(2) Failure to consider factors.--The failure to 
        consider any factor specified in paragraph (1) shall 
        not be reviewable by any court under this title or 
        chapter 53 of title 49, subchapter II of chapter 5 of 
        title 5, or chapter 7 of title 5 in any matter 
        affecting a transportation plan, a TIP, a project or 
        strategy, or the certification of a planning process.
    ``(i) Development of Transportation Plan.--
            ``(1) In general.--Each metropolitan planning 
        organization shall prepare and update a transportation 
        plan for its metropolitan planning area in accordance 
        with the requirements of this subsection. The 
        metropolitan planning organization shall prepare and 
        update such plan every 4 years (or more frequently, if 
        the metropolitan planning organization elects to update 
        more frequently) in the case of each of the following:
                    ``(A) Any area designated as nonattainment, 
                as defined in section 107(d) of the Clean Air 
                Act (42 U.S.C. 7407(d)).
                    ``(B) Any area that was nonattainment and 
                subsequently designated to attainment in 
                accordance with section 107(d)(3) of that Act 
                (42 U.S.C. 7407(d)(3)) and that is subject to a 
                maintenance plan under section 175A of that Act 
                (42 U.S.C. 7505a).
        In the case of any other area required to have a 
        transportation plan in accordance with the requirements 
        of this subsection, the metropolitan planning 
        organization shall prepare and update such plan every 5 
        years unless the metropolitan planning organization 
        elects to update more frequently.
            ``(2) Transportation plan.--A transportation plan 
        under this section shall be in a form that the 
        Secretary determines to be appropriate and shall 
        contain, at a minimum, the following:
                    ``(A) Identification of transportation 
                facilities.--An identification of 
                transportation facilities (including major 
                roadways, transit, multimodal and intermodal 
                facilities, and intermodal connectors) that 
                should function as an integrated metropolitan 
                transportation system, giving emphasis to those 
                facilities that serve important national and 
                regional transportation functions. In 
                formulating the transportation plan, the 
                metropolitan planning organization shall 
                consider factors described in subsection (h) as 
                such factors relate to a 20-year forecast 
                period.
                    ``(B) Mitigation activities.--
                            ``(i) In general.--A long-range 
                        transportation plan shall include a 
                        discussion of types of potential 
                        environmental mitigation activities and 
                        potential areas to carry out these 
                        activities, including activities that 
                        may have the greatest potential to 
                        restore and maintain the environmental 
                        functions affected by the plan.
                            ``(ii) Consultation.--The 
                        discussion shall be developed in 
                        consultation with Federal, State, and 
                        tribal wildlife, land management, and 
                        regulatory agencies.
                    ``(C) Financial plan.--A financial plan 
                that demonstrates how the adopted 
                transportation plan can be implemented, 
                indicates resources from public and private 
                sources that are reasonably expected to be made 
                available to carry out the plan, and recommends 
                any additional financing strategies for needed 
                projects and programs. The financial plan may 
                include, for illustrative purposes, additional 
                projects that would be included in the adopted 
                transportation plan if reasonable additional 
                resources beyond those identified in the 
                financial plan were available. For the purpose 
                of developing the transportation plan, the 
                metropolitan planning organization, transit 
                operator, and State shall cooperatively develop 
                estimates of funds that will be available to 
                support plan implementation.
                    ``(D) Operational and management 
                strategies.--Operational and management 
                strategies to improve the performance of 
                existing transportation facilities to relieve 
                vehicular congestion and maximize the safety 
                and mobility of people and goods.
                    ``(E) Capital investment and other 
                strategies.--Capital investment and other 
                strategies to preserve the existing and 
                projected future metropolitan transportation 
                infrastructure and provide for multimodal 
                capacity increases based on regional priorities 
                and needs.
                    ``(F) Transportation and transit 
                enhancement activities.--Proposed 
                transportation and transit enhancement 
                activities.
            ``(3) Coordination with clean air act agencies.--In 
        metropolitan areas which are in nonattainment for ozone 
        or carbon monoxide under the Clean Air Act, the 
        metropolitan planning organization shall coordinate the 
        development of a transportation plan with the process 
        for development of the transportation control measures 
        of the State implementation plan required by the Clean 
        Air Act.
            ``(4) Consultation.--
                    ``(A) In general.--In each metropolitan 
                area, the metropolitan planning organization 
                shall consult, as appropriate, with State and 
                local agencies responsible for land use 
                management, natural resources, environmental 
                protection, conservation, and historic 
                preservation concerning the development of a 
                long-range transportation plan.
                    ``(B) Issues.--The consultation shall 
                involve, as appropriate--
                            ``(i) comparison of transportation 
                        plans with State conservation plans or 
                        maps, if available; or
                            ``(ii) comparison of transportation 
                        plans to inventories of natural or 
                        historic resources, if available.
            ``(5) Participation by interested parties.--
                    ``(A) In general.--Each metropolitan 
                planning organization shall provide citizens, 
                affected public agencies, representatives of 
                public transportation employees, freight 
                shippers, providers of freight transportation 
                services, private providers of transportation, 
                representatives of users of public 
                transportation, representatives of users of 
                pedestrian walkways and bicycle transportation 
                facilities, representatives of the disabled, 
                and other interested parties with a reasonable 
                opportunity to comment on the transportation 
                plan.
                    ``(B) Contents of participation plan.--A 
                participation plan--
                            ``(i) shall be developed in 
                        consultation with all interested 
                        parties; and
                            ``(ii) shall provide that all 
                        interested parties have reasonable 
                        opportunities to comment on the 
                        contents of the transportation plan.
                    ``(C) Methods.--In carrying out 
                subparagraph (A), the metropolitan planning 
                organization shall, to the maximum extent 
                practicable--
                            ``(i) hold any public meetings at 
                        convenient and accessible locations and 
                        times;
                            ``(ii) employ visualization 
                        techniques to describe plans; and
                            ``(iii) make public information 
                        available in electronically accessible 
                        format and means, such as the World 
                        Wide Web, as appropriate to afford 
                        reasonable opportunity for 
                        consideration of public information 
                        under subparagraph (A).
            ``(6) Publication.--A transportation plan involving 
        Federal participation shall be published or otherwise 
        made readily available by the metropolitan planning 
        organization for public review, including (to the 
        maximum extent practicable) in electronically 
        accessible formats and means, such as the World Wide 
        Web, approved by the metropolitan planning organization 
        and submitted for information purposes to the Governor 
        at such times and in such manner as the Secretary shall 
        establish.
            ``(7) Selection of projects from illustrative 
        list.--Notwithstanding paragraph (2)(C), a State or 
        metropolitan planning organization shall not be 
        required to select any project from the illustrative 
        list of additional projects included in the financial 
        plan under paragraph (2)(C).
    ``(j) Metropolitan TIP.--
            ``(1) Development.--
                    ``(A) In general.--In cooperation with the 
                State and any affected public transportation 
                operator, the metropolitan planning 
                organization designated for a metropolitan area 
                shall develop a TIP for the area for which the 
                organization is designated.
                    ``(B) Opportunity for comment.--In 
                developing the TIP, the metropolitan planning 
                organization, in cooperation with the State and 
                any affected public transportation operator, 
                shall provide an opportunity for participation 
                by interested parties in the development of the 
                program, in accordance with subsection (i)(5).
                    ``(C) Funding estimates.--For the purpose 
                of developing the TIP, the metropolitan 
                planning organization, public transportation 
                agency, and State shall cooperatively develop 
                estimates of funds that are reasonably expected 
                to be available to support program 
                implementation.
                    ``(D) Updating and approval.--The TIP shall 
                be updated at least once every 4 years and 
                shall be approved by the metropolitan planning 
                organization and the Governor.
            ``(2) Contents.--
                    ``(A) Priority list.--The TIP shall include 
                a priority list of proposed federally supported 
                projects and strategies to be carried out 
                within each 4-year period after the initial 
                adoption of the TIP.
                    ``(B) Financial plan.--The TIP shall 
                include a financial plan that--
                            ``(i) demonstrates how the TIP can 
                        be implemented;
                            ``(ii) indicates resources from 
                        public and private sources that are 
                        reasonably expected to be available to 
                        carry out the program;
                            ``(iii) identifies innovative 
                        financing techniques to finance 
                        projects, programs, and strategies; and
                            ``(iv) may include, for 
                        illustrative purposes, additional 
                        projects that would be included in the 
                        approved TIP if reasonable additional 
                        resources beyond those identified in 
                        the financial plan were available.
                    ``(C) Descriptions.--Each project in the 
                TIP shall include sufficient descriptive 
                material (such as type of work, termini, 
                length, and other similar factors) to identify 
                the project or phase of the project.
            ``(3) Included projects.--
                    ``(A) Projects under this title and chapter 
                53 of title 49.--A TIP developed under this 
                subsection for a metropolitan area shall 
                include the projects within the area that are 
                proposed for funding under chapter 1 of this 
                title and chapter 53 of title 49.
                    ``(B) Projects under chapter 2.--
                            ``(i) Regionally significant 
                        projects.--Regionally significant 
                        projects proposed for funding under 
                        chapter 2 shall be identified 
                        individually in the transportation 
                        improvement program.
                            ``(ii) Other projects.--Projects 
                        proposed for funding under chapter 2 
                        that are not determined to be 
                        regionally significant shall be grouped 
                        in 1 line item or identified 
                        individually in the transportation 
                        improvement program.
                    ``(C) Consistency with long-range 
                transportation plan.--Each project shall be 
                consistent with the long-range transportation 
                plan developed under subsection (i) for the 
                area.
                    ``(D) Requirement of anticipated full 
                funding.--The program shall include a project, 
                or an identified phase of a project, only if 
                full funding can reasonably be anticipated to 
                be available for the project within the time 
                period contemplated for completion of the 
                project.
            ``(4) Notice and comment.--Before approving a TIP, 
        a metropolitan planning organization, in cooperation 
        with the State and any affected public transportation 
        operator, shall provide an opportunity for 
        participation by interested parties in the development 
        of the program, in accordance with subsection (i)(5).
            ``(5) Selection of projects.--
                    ``(A) In general.--Except as otherwise 
                provided in subsection (k)(4) and in addition 
                to the TIP development required under paragraph 
                (1), the selection of federally funded projects 
                in metropolitan areas shall be carried out, 
                from the approved TIP--
                            ``(i) by--
                                    ``(I) in the case of 
                                projects under this title, the 
                                State; and
                                    ``(II) in the case of 
                                projects under chapter 53 of 
                                title 49, the designated 
                                recipients of public 
                                transportation funding; and
                            ``(ii) in cooperation with the 
                        metropolitan planning organization.
                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, 
                action by the Secretary shall not be required 
                to advance a project included in the approved 
                TIP in place of another project in the program.
            ``(6) Selection of projects from illustrative 
        list.--
                    ``(A) No required selection.--
                Notwithstanding paragraph (2)(B)(iv), a State 
                or metropolitan planning organization shall not 
                be required to select any project from the 
                illustrative list of additional projects 
                included in the financial plan under paragraph 
                (2)(B)(iv).
                    ``(B) Required action by the secretary.--
                Action by the Secretary shall be required for a 
                State or metropolitan planning organization to 
                select any project from the illustrative list 
                of additional projects included in the 
                financial plan under paragraph (2)(B)(iv) for 
                inclusion in an approved TIP.
            ``(7) Publication.--
                    ``(A) Publication of tips.--A TIP involving 
                Federal participation shall be published or 
                otherwise made readily available by the 
                metropolitan planning organization for public 
                review.
                    ``(B) Publication of annual listings of 
                projects.--An annual listing of projects, 
                including investments in pedestrian walkways 
                and bicycle transportation facilities, for 
                which Federal funds have been obligated in the 
                preceding year shall be published or otherwise 
                made available by the cooperative effort of the 
                State, transit operator, and metropolitan 
                planning organization for public review. The 
                listing shall be consistent with the categories 
                identified in the TIP.
    ``(k) Transportation Management Areas.--
            ``(1) Identification and designation.--
                    ``(A) Required identification.--The 
                Secretary shall identify as a transportation 
                management area each urbanized area (as defined 
                by the Bureau of the Census) with a population 
                of over 200,000 individuals.
                    ``(B) Designations on request.--The 
                Secretary shall designate any additional area 
                as a transportation management area on the 
                request of the Governor and the metropolitan 
                planning organization designated for the area.
            ``(2) Transportation plans.--In a metropolitan 
        planning area serving a transportation management area, 
        transportation plans shall be based on a continuing and 
        comprehensive transportation planning process carried 
        out by the metropolitan planning organization in 
        cooperation with the State and public transportation 
        operators.
            ``(3) Congestion management process.--Within a 
        metropolitan planning area serving a transportation 
        management area, the transportation planning process 
        under this section shall address congestion management 
        through a process that provides for effective 
        management and operation, based on a cooperatively 
        developed and implemented metropolitan-wide strategy, 
        of new and existing transportation facilities eligible 
        for funding under this title and chapter 53 of title 49 
        through the use of travel demand reduction and 
        operational management strategies. The Secretary shall 
        establish an appropriate phase-in schedule for 
        compliance with the requirements of this section but no 
        sooner than 1 year after the identification of a 
        transportation management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All federally funded 
                projects carried out within the boundaries of a 
                metropolitan planning area serving a 
                transportation management area under this title 
                (excluding projects carried out on the National 
                Highway System and projects carried out under 
                the bridge program or the Interstate 
                maintenance program) or under chapter 53 of 
                title 49 shall be selected for implementation 
                from the approved TIP by the metropolitan 
                planning organization designated for the area 
                in consultation with the State and any affected 
                public transportation operator.
                    ``(B) National highway system projects.--
                Projects carried out within the boundaries of a 
                metropolitan planning area serving a 
                transportation management area on the National 
                Highway System and projects carried out within 
                such boundaries under the bridge program or the 
                Interstate maintenance program under this title 
                shall be selected for implementation from the 
                approved TIP by the State in cooperation with 
                the metropolitan planning organization 
                designated for the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) ensure that the metropolitan 
                        planning process of a metropolitan 
                        planning organization serving a 
                        transportation management area is being 
                        carried out in accordance with 
                        applicable provisions of Federal law; 
                        and
                            ``(ii) subject to subparagraph (B), 
                        certify, not less often than once every 
                        4 years, that the requirements of this 
                        paragraph are met with respect to the 
                        metropolitan planning process.
                    ``(B) Requirements for certification.--The 
                Secretary may make the certification under 
                subparagraph (A) if--
                            ``(i) the transportation planning 
                        process complies with the requirements 
                        of this section and other applicable 
                        requirements of Federal law; and
                            ``(ii) there is a TIP for the 
                        metropolitan planning area that has 
                        been approved by the metropolitan 
                        planning organization and the Governor.
                    ``(C) Effect of failure to certify.--
                            ``(i) Withholding of project 
                        funds.--If a metropolitan planning 
                        process of a metropolitan planning 
                        organization serving a transportation 
                        management area is not certified, the 
                        Secretary may withhold up to 20 percent 
                        of the funds attributable to the 
                        metropolitan planning area of the 
                        metropolitan planning organization for 
                        projects funded under this title and 
                        chapter 53 of title 49. I26    ``(ii) 
                        Restoration of withheld funds.--The 
                        withheld funds shall be restored to the 
                        metropolitan planning area at such time 
                        as the metropolitan planning process is 
                        certified by the Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this 
                paragraph, the Secretary shall provide for 
                public involvement appropriate to the 
                metropolitan area under review.
    ``(l) Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the 
        case of a metropolitan area not designated as a 
        transportation management area under this section, the 
        Secretary may provide for the development of an 
        abbreviated transportation plan and TIP for the 
        metropolitan planning area that the Secretary 
        determines is appropriate to achieve the purposes of 
        this section, taking into account the complexity of 
        transportation problems in the area.
            ``(2) Nonattainment areas.--The Secretary may not 
        permit abbreviated plans or TIPs for a metropolitan 
        area that is in nonattainment for ozone or carbon 
        monoxide under the Clean Air Act.
    ``(m) Additional Requirements for Certain Nonattainment 
Areas.--
            ``(1) In general.--Notwithstanding any other 
        provisions of this title or chapter 53 of title 49, for 
        transportation management areas classified as 
        nonattainment for ozone or carbon monoxide pursuant to 
        the Clean Air Act, Federal funds may not be advanced in 
        such area for any highway project that will result in a 
        significant increase in the carrying capacity for 
        single-occupant vehicles unless the project is 
        addressed through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning 
        area boundaries determined under subsection (e).
    ``(n) Limitation on Statutory Construction.--Nothing in 
this section shall be construed to confer on a metropolitan 
planning organization the authority to impose legal 
requirements on any transportation facility, provider, or 
project not eligible under this title or chapter 53 of title 
49.
    ``(o) Funding.--Funds set aside under section 104(f) of 
this title or section 5305(g) of title 49 shall be available to 
carry out this section.
    ``(p) Continuation of Current Review Practice.--Since plans 
and TIPs described in this section are subject to a reasonable 
opportunity for public comment, since individual projects 
included in plans and TIPs are subject to review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), and since decisions by the Secretary concerning plans 
and TIPs described in this section have not been reviewed under 
such Act as of January 1, 1997, any decision by the Secretary 
concerning a plan or TIP described in this section shall not be 
considered to be a Federal action subject to review under such 
Act.

``Sec. 135. Statewide transportation planning

    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--To 
        accomplish the objectives stated in section 134(a), 
        each State shall develop a statewide transportation 
        plan and a statewide transportation improvement program 
        for all areas of the State, subject to section 134.
            ``(2) Contents.--The statewide transportation plan 
        and the transportation improvement program developed 
        for each State shall provide for the development and 
        integrated management and operation of transportation 
        systems and facilities (including accessible pedestrian 
        walkways and bicycle transportation facilities) that 
        will function as an intermodal transportation system 
        for the State and an integral part of an intermodal 
        transportation system for the United States.
            ``(3) Process of development.--The process for 
        developing the statewide plan and the transportation 
        improvement program shall provide for consideration of 
        all modes of transportation and the policies stated in 
        section 134(a), and shall be continuing, cooperative, 
        and comprehensive to the degree appropriate, based on 
        the complexity of the transportation problems to be 
        addressed.
    ``(b) Coordination With Metropolitan Planning; State 
Implementation Plan.--A State shall--
            ``(1) coordinate planning carried out under this 
        section with the transportation planning activities 
        carried out under section 134 for metropolitan areas of 
        the State and with statewide trade and economic 
        development planning activities and related multistate 
        planning efforts; and
            ``(2) develop the transportation portion of the 
        State implementation plan as required by the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(c) Interstate Agreements.--
            ``(1) In general.--The consent of Congress is 
        granted to 2 or more States entering into agreements or 
        compacts, not in conflict with any law of the United 
        States, for cooperative efforts and mutual assistance 
        in support of activities authorized under this section 
        related to interstate areas and localities in the 
        States and establishing authorities the States consider 
        desirable for making the agreements and compacts 
        effective.
            ``(2) Reservation of rights.--The right to alter, 
        amend, or repeal interstate compacts entered into under 
        this subsection is expressly reserved.
    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a 
        statewide transportation planning process that provides 
        for consideration and implementation of projects, 
        strategies, and services that will--
                    ``(A) support the economic vitality of the 
                United States, the States, nonmetropolitan 
                areas, and metropolitan areas, especially by 
                enabling global competitiveness, productivity, 
                and efficiency;
                    ``(B) increase the safety of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(C) increase the security of the 
                transportation system for motorized and 
                nonmotorized users;
                    ``(D) increase the accessibility and 
                mobility of people and freight;
                    ``(E) protect and enhance the environment, 
                promote energy conservation, improve the 
                quality of life, and promote consistency 
                between transportation improvements and State 
                and local planned growth and economic 
                development patterns;
                    ``(F) enhance the integration and 
                connectivity of the transportation system, 
                across and between modes throughout the State, 
                for people and freight;
                    ``(G) promote efficient system management 
                and operation; and
                    ``(H) emphasize the preservation of the 
                existing transportation system.
            ``(2) Failure to consider factors.--The failure to 
        consider any factor specified in paragraph (1) shall 
        not be reviewable by any court under this title or 
        chapter 53 of title 49, subchapter II of chapter 5 of 
        title 5, or chapter 7 of title 5 in any matter 
        affecting a statewide transportation plan, the 
        transportation improvement program, a project or 
        strategy, or the certification of a planning process.
    ``(e) Additional Requirements.--In carrying out planning 
under this section, each State shall consider, at a minimum--
            ``(1) with respect to nonmetropolitan areas, the 
        concerns of affected local officials with 
        responsibility for transportation;
            ``(2) the concerns of Indian tribal governments and 
        Federal land management agencies that have jurisdiction 
        over land within the boundaries of the State; and
            ``(3) coordination of transportation plans, the 
        transportation improvement program, and planning 
        activities with related planning activities being 
        carried out outside of metropolitan planning areas and 
        between States.
    ``(f) Long-Range Statewide Transportation Plan.--
            ``(1) Development.--Each State shall develop a 
        long-range statewide transportation plan, with a 
        minimum 20-year forecast period for all areas of the 
        State, that provides for the development and 
        implementation of the intermodal transportation system 
        of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation 
                with the metropolitan planning organization 
                designated for the metropolitan area under 
                section 134.
                    ``(B) Nonmetropolitan areas.--With respect 
                to nonmetropolitan areas, the statewide 
                transportation plan shall be developed in 
                consultation with affected nonmetropolitan 
                officials with responsibility for 
                transportation. The Secretary shall not review 
                or approve the consultation process in each 
                State.
                    ``(C) Indian tribal areas.--With respect to 
                each area of the State under the jurisdiction 
                of an Indian tribal government, the statewide 
                transportation plan shall be developed in 
                consultation with the tribal government and the 
                Secretary of the Interior.
                    ``(D) Consultation, comparison, and 
                consideration.--
                            ``(i) In general.--The long-range 
                        transportation plan shall be developed, 
                        as appropriate, in consultation with 
                        State, tribal, and local agencies 
                        responsible for land use management, 
                        natural resources, environmental 
                        protection, conservation, and historic 
                        preservation.
                            ``(ii) Comparison and 
                        consideration.--Consultation under 
                        clause (i) shall involve comparison of 
                        transportation plans to State and 
                        tribal conservation plans or maps, if 
                        available, and comparison of 
                        transportation plans to inventories of 
                        natural or historic resources, if 
                        available.
            ``(3) Participation by interested parties.--
                    ``(A) In general.--In developing the 
                statewide transportation plan, the State shall 
                provide citizens, affected public agencies, 
                representatives of public transportation 
                employees, freight shippers, private providers 
                of transportation, representatives of users of 
                public transportation, representatives of users 
                of pedestrian walkways and bicycle 
                transportation facilities, representatives of 
                the disabled, providers of freight 
                transportation services, and other interested 
                parties with a reasonable opportunity to 
                comment on the proposed plan.
                    ``(B) Methods.--In carrying out 
                subparagraph (A), the State shall, to the 
                maximum extent practicable--
                            ``(i) hold any public meetings at 
                        convenient and accessible locations and 
                        times;
                            ``(ii) employ visualization 
                        techniques to describe plans; and
                            ``(iii) make public information 
                        available in electronically accessible 
                        format and means, such as the World 
                        Wide Web, as appropriate to afford 
                        reasonable opportunity for 
                        consideration of public information 
                        under subparagraph (A).
            ``(4) Mitigation activities.--
                    ``(A) In general.--A long-range 
                transportation plan shall include a discussion 
                of potential environmental mitigation 
                activities and potential areas to carry out 
                these activities, including activities that may 
                have the greatest potential to restore and 
                maintain the environmental functions affected 
                by the plan.
                    ``(B) Consultation.--The discussion shall 
                be developed in consultation with Federal, 
                State, and tribal wildlife, land management, 
                and regulatory agencies.
            ``(5) Financial plan.--The statewide transportation 
        plan may include a financial plan that demonstrates how 
        the adopted statewide transportation plan can be 
        implemented, indicates resources from public and 
        private sources that are reasonably expected to be made 
        available to carry out the plan, and recommends any 
        additional financing strategies for needed projects and 
        programs. The financial plan may include, for 
        illustrative purposes, additional projects that would 
        be included in the adopted statewide transportation 
        plan if reasonable additional resources beyond those 
        identified in the financial plan were available.
            ``(6) Selection of projects from illustrative 
        list.--A State shall not be required to select any 
        project from the illustrative list of additional 
        projects included in the financial plan described in 
        paragraph (5).
            ``(7) Existing system.--The statewide 
        transportation plan should include capital, operations 
        and management strategies, investments, procedures, and 
        other measures to ensure the preservation and most 
        efficient use of the existing transportation system.
            ``(8) Publication of long-range transportation 
        plans.--Each long-range transportation plan prepared by 
        a State shall be published or otherwise made available, 
        including (to the maximum extent practicable) in 
        electronically accessible formats and means, such as 
        the World Wide Web.
    ``(g) Statewide Transportation Improvement Program.--
            ``(1) Development.--Each State shall develop a 
        statewide transportation improvement program for all 
        areas of the State. Such program shall cover a period 
        of 4 years and be updated every 4 years or more 
        frequently if the Governor elects to update more 
        frequently.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--With respect to 
                each metropolitan area in the State, the 
                program shall be developed in cooperation with 
                the metropolitan planning organization 
                designated for the metropolitan area under 
                section 134.
                    ``(B) Nonmetropolitan areas.--With respect 
                to each nonmetropolitan area in the State, the 
                program shall be developed in consultation with 
                affected nonmetropolitan local officials with 
                responsibility for transportation. The 
                Secretary shall not review or approve the 
                specific consultation process in the State.
                    ``(C) Indian tribal areas.--With respect to 
                each area of the State under the jurisdiction 
                of an Indian tribal government, the program 
                shall be developed in consultation with the 
                tribal government and the Secretary of the 
                Interior.
            ``(3) Participation by interested parties.--In 
        developing the program, the State shall provide 
        citizens, affected public agencies, representatives of 
        public transportation employees, freight shippers, 
        private providers of transportation, providers of 
        freight transportation services, representatives of 
        users of public transportation, representatives of 
        users of pedestrian walkways and bicycle transportation 
        facilities, representatives of the disabled, and other 
        interested parties with a reasonable opportunity to 
        comment on the proposed program.
            ``(4) Included projects.--24    ``(A) In general.--
        A transportation improvement program developed under 
        this subsection for a State shall include federally 
        supported surface transportation expenditures within 
        the boundaries of the State.
                    ``(B) Listing of projects.--An annual 
                listing of projects for which funds have been 
                obligated in the preceding year in each 
                metropolitan planning area shall be published 
                or otherwise made available by the cooperative 
                effort of the State, transit operator, and the 
                metropolitan planning organization for public 
                review. The listing shall be consistent with 
                the funding categories identified in each 
                metropolitan transportation improvement 
                program.
                    ``(C) Projects under chapter 2.--
                            ``(i) Regionally significant 
                        projects.--Regionally significant 
                        projects proposed for funding under 
                        chapter 2 shall be identified 
                        individually in the transportation 
                        improvement program.
                            ``(ii) Other projects.--Projects 
                        proposed for funding under chapter 2 
                        that are not determined to be 
                        regionally significant shall be grouped 
                        in 1 line item or identified 
                        individually in the transportation 
                        improvement program.
                    ``(D) Consistency with statewide 
                transportation plan.--Each project shall be--
                            ``(i) consistent with the statewide 
                        transportation plan developed under 
                        this section for the State;
                            ``(ii) identical to the project or 
                        phase of the project as described in an 
                        approved metropolitan transportation 
                        plan; and
                            ``(iii) in conformance with the 
                        applicable State air quality 
                        implementation plan developed under the 
                        Clean Air Act, if the project is 
                        carried out in an area designated as 
                        nonattainment for ozone, particulate 
                        matter, or carbon monoxide under such 
                        Act.
                    ``(E) Requirement of anticipated full 
                funding.--The transportation improvement 
                program shall include a project, or an 
                identified phase of a project, only if full 
                funding can reasonably be anticipated to be 
                available for the project within the time 
                period contemplated for completion of the 
                project.
                    ``(F) Financial plan.--The transportation 
                improvement program may include a financial 
                plan that demonstrates how the approved 
                transportation improvement program can be 
                implemented, indicates resources from public 
                and private sources that are reasonably 
                expected to be made available to carry out the 
                transportation improvement program, and 
                recommends any additional financing strategies 
                for needed projects and programs. The financial 
                plan may include, for illustrative purposes, 
                additional projects that would be included in 
                the adopted transportation plan if reasonable 
                additional resources beyond those identified in 
                the financial plan were available.
                    ``(G) Selection of projects from 
                illustrative list.--
                            ``(i) No required selection.--
                        Notwithstanding subparagraph (F), a 
                        State shall not be required to select 
                        any project from the illustrative list 
                        of additional projects included in the 
                        financial plan under subparagraph (F).
                            ``(ii) Required action by the 
                        secretary.--Action by the Secretary 
                        shall be required for a State to select 
                        any project from the illustrative list 
                        of additional projects included in the 
                        financial plan under subparagraph (F) 
                        for inclusion in an approved 
                        transportation improvement program.
                    ``(H) Priorities.--The transportation 
                improvement program shall reflect the 
                priorities for programming and expenditures of 
                funds, including transportation enhancement 
                activities, required by this title and chapter 
                53 of title 49.
            ``(5) Project selection for areas of less than 
        50,000 population.--Projects carried out in areas with 
        populations of less than 50,000 individuals shall be 
        selected, from the approved transportation improvement 
        program (excluding projects carried out on the National 
        Highway System and projects carried out under the 
        bridge program or the Interstate maintenance program 
        under this title or under sections 5310, 5311, 5316, 
        and 5317 of title 49), by the State in cooperation with 
        the affected nonmetropolitan local officials with 
        responsibility for transportation. Projects carried out 
        in areas with populations of less than 50,000 
        individuals on the National Highway System or under the 
        bridge program or the Interstate maintenance program 
        under this title or under sections 5310, 5311, 5316, 
        and 5317 of title 49 shall be selected, from the 
        approved statewide transportation improvement program, 
        by the State in consultation with the affected 
        nonmetropolitan local officials with responsibility for 
        transportation.
            ``(6) Transportation improvement program 
        approval.--Every 4 years, a transportation improvement 
        program developed under this subsection shall be 
        reviewed and approved by the Secretary if based on a 
        current planning finding.
            ``(7) Planning finding.--A finding shall be made by 
        the Secretary at least every 4 years that the 
        transportation planning process through which statewide 
        transportation plans and programs are developed is 
        consistent with this section and section 134.
            ``(8) Modifications to project priority.--
        Notwithstanding any other provision of law, action by 
        the Secretary shall not be required to advance a 
        project included in the approved transportation 
        improvement program in place of another project in the 
        program.
    ``(h) Funding.--Funds set aside pursuant to section 104(f) 
of this title and section 5305(g) of title 49, shall be 
available to carry out this section.
    ``(i) Treatment of Certain State Laws as Congestion 
Management Processes.--For purposes of this section and section 
134, and sections 5303 and 5304 of title 49, State laws, rules, 
or regulations pertaining to congestion management systems or 
programs may constitute the congestion management process under 
this section and section 134, and sections 5303 and 5304 of 
title 49, if the Secretary finds that the State laws, rules, or 
regulations are consistent with, and fulfill the intent of, the 
purposes of this section and section 134 and sections 5303 and 
5304 of title 49, as appropriate.
    ``(j) Continuation of Current Review Practice.--Since the 
statewide transportation plan and the transportation 
improvement program described in this section are subject to a 
reasonable opportunity for public comment, since individual 
projects included in the statewide transportation plans and the 
transportation improvement program are subject to review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.), and since decisions by the Secretary concerning 
statewide transportation plans or the transportation 
improvement program described in this section have not been 
reviewed under such Act as of January 1, 1997, any decision by 
the Secretary concerning a metropolitan or statewide 
transportation plan or the transportation improvement program 
described in this section shall not be considered to be a 
Federal action subject to review under such Act.''.
    (b) Schedule for Implementation.--The Secretary shall issue 
guidance on a schedule for implementation of the changes made 
by this section, taking into consideration the established 
planning update cycle for States and metropolitan planning 
organizations. The Secretary shall not require a State or 
metropolitan planning organization to deviate from its 
established planning update cycle to implement changes made by 
this section. Beginning July 1, 2007, State or metropolitan 
planning organization plan or program updates shall reflect 
changes made by this section.
    (c) Conforming Amendment.--The analysis for chapter 1 of 
such title is amended by striking the items relating to 
sections 134 and 135 and inserting the following:

``134. Metropolitan transportation planning.
``135. Statewide transportation planning.''.

SEC. 6002. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT DECISIONMAKING.

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

``Sec. 139. Efficient environmental reviews for project decisionmaking

    ``(a) Definitions.--In this section, the following 
definitions apply:
            ``(1) Agency.--The term `agency' means any agency, 
        department, or other unit of Federal, State, local, or 
        Indian tribal government.
            ``(2) Environmental impact statement.--The term 
        `environmental impact statement' means the detailed 
        statement of environmental impacts required to be 
        prepared under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.).
            ``(3) Environmental review process.--
                    ``(A) In general.--The term `environmental 
                review process' means the process for preparing 
                for a project an environmental impact 
                statement, environmental assessment, 
                categorical exclusion, or other document 
                prepared under the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4321 et seq.).
                    ``(B) Inclusions.--The term `environmental 
                review process' includes the process for and 
                completion of any environmental permit, 
                approval, review, or study required for a 
                project under any Federal law other than the 
                National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.).
            ``(4) Lead agency.--The term `lead agency' means 
        the Department of Transportation and, if applicable, 
        any State or local governmental entity serving as a 
        joint lead agency pursuant to this section.
            ``(5) Multimodal project.--The term `multimodal 
        project' means a project funded, in whole or in part, 
        under this title or chapter 53 of title 49 and 
        involving the participation of more than one Department 
        of Transportation administration or agency.
            ``(6) Project.--The term `project' means any 
        highway project, public transportation capital project, 
        or multimodal project that requires the approval of the 
        Secretary.
            ``(7) Project sponsor.--The term `project sponsor' 
        means the agency or other entity, including any private 
        or public-private entity, that seeks approval of the 
        Secretary for a project.
            ``(8) State transportation department.--The term 
        `State transportation department' means any statewide 
        agency of a State with responsibility for one or more 
        modes of transportation.
    ``(b) Applicability.--
            ``(1) In general.--The project development 
        procedures in this section are applicable to all 
        projects for which an environmental impact statement is 
        prepared under the National Environmental Policy Act of 
        1969 and may be applied, to the extent determined 
        appropriate by the Secretary, to other projects for 
        which an environmental document is prepared pursuant to 
        such Act.
            ``(2) Flexibility.--Any authorities granted in this 
        section may be exercised for a project, class of 
        projects, or program of projects.
    ``(c) Lead Agencies.--
            ``(1) Federal lead agency.--The Department of 
        Transportation shall be the Federal lead agency in the 
        environmental review process for a project.
            ``(2) Joint lead agencies.--Nothing in this section 
        precludes another agency from being a joint lead agency 
        in accordance with regulations under the National 
        Environmental Policy Act of 1969.
            ``(3) Project sponsor as joint lead agency.--Any 
        project sponsor that is a State or local governmental 
        entity receiving funds under this title or chapter 53 
        of title 49 for the project shall serve as a joint lead 
        agency with the Department for purposes of preparing 
        any environmental document under the National 
        Environmental Policy Act of 1969 and may prepare any 
        such environmental document required in support of any 
        action or approval by the Secretary if the Federal lead 
        agency furnishes guidance in such preparation and 
        independently evaluates such document and the document 
        is approved and adopted by the Secretary prior to the 
        Secretary taking any subsequent action or making any 
        approval based on such document, whether or not the 
        Secretary's action or approval results in Federal 
        funding.
            ``(4) Ensuring compliance.--The Secretary shall 
        ensure that the project sponsor complies with all 
        design and mitigation commitments made jointly by the 
        Secretary and the project sponsor in any environmental 
        document prepared by the project sponsor in accordance 
        with this subsection and that such document is 
        appropriately supplemented if project changes become 
        necessary.
            ``(5) Adoption and use of documents.--Any 
        environmental document prepared in accordance with this 
        subsection may be adopted or used by any Federal agency 
        making any approval to the same extent that such 
        Federal agency could adopt or use a document prepared 
        by another Federal agency.
            ``(6) Roles and responsibility of lead agency.--
        With respect to the environmental review process for 
        any project, the lead agency shall have authority and 
        responsibility--
                    ``(A) to take such actions as are necessary 
                and proper, within the authority of the lead 
                agency, to facilitate the expeditious 
                resolution of the environmental review process 
                for the project; and
                    ``(B) to prepare or ensure that any 
                required environmental impact statement or 
                other document required to be completed under 
                the National Environmental Policy Act of 1969 
                is completed in accordance with this section 
                and applicable Federal law.
    ``(d) Participating Agencies.--
            ``(1) In general.--The lead agency shall be 
        responsible for inviting and designating participating 
        agencies in accordance with this subsection.
            ``(2) Invitation.--The lead agency shall identify, 
        as early as practicable in the environmental review 
        process for a project, any other Federal and non-
        Federal agencies that may have an interest in the 
        project, and shall invite such agencies to become 
        participating agencies in the environmental review 
        process for the project. The invitation shall set a 
        deadline for responses to be submitted. The deadline 
        may be extended by the lead agency for good cause.
            ``(3) Federal participating agencies.--Any Federal 
        agency that is invited by the lead agency to 
        participate in the environmental review process for a 
        project shall be designated as a participating agency 
        by the lead agency unless the invited agency informs 
        the lead agency, in writing, by the deadline specified 
        in the invitation that the invited agency--
                    ``(A) has no jurisdiction or authority with 
                respect to the project;
                    ``(B) has no expertise or information 
                relevant to the project; and
                    ``(C) does not intend to submit comments on 
                the project.
            ``(4) Effect of designation.--Designation as a 
        participating agency under this subsection shall not 
        imply that the participating agency--
                    ``(A) supports a proposed project; or
                    ``(B) has any jurisdiction over, or special 
                expertise with respect to evaluation of, the 
                project.
            ``(5) Cooperating agency.--A participating agency 
        may also be designated by a lead agency as a 
        `cooperating agency' under the regulations contained in 
part 1500 of title 40, Code of Federal Regulations.
            ``(6) Designations for categories of projects.--The 
        Secretary may exercise the authorities granted under 
        this subsection for a project, class of projects, or 
        program of projects.
            ``(7) Concurrent reviews.--Each Federal agency 
        shall, to the maximum extent practicable--
                    ``(A) carry out obligations of the Federal 
                agency under other applicable law concurrently, 
                and in conjunction, with the review required 
                under the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.), unless doing so 
                would impair the ability of the Federal agency 
                to carry out those obligations; and
                    ``(B) formulate and implement 
                administrative, policy, and procedural 
                mechanisms to enable the agency to ensure 
                completion of the environmental review process 
                in a timely, coordinated, and environmentally 
                responsible manner.
    ``(e) Project Initiation.--The project sponsor shall notify 
the Secretary of the type of work, termini, length and general 
location of the proposed project, together with a statement of 
any Federal approvals anticipated to be necessary for the 
proposed project, for the purpose of informing the Secretary 
that the environmental review process should be initiated.
    ``(f) Purpose and Need.--
            ``(1) Participation.--As early as practicable 
        during the environmental review process, the lead 
        agency shall provide an opportunity for involvement by 
        participating agencies and the public in defining the 
        purpose and need for a project.
            ``(2) Definition.--Following participation under 
        paragraph (1), the lead agency shall define the 
        project's purpose and need for purposes of any document 
        which the lead agency is responsible for preparing for 
        the project.
            ``(3) Objectives.--The statement of purpose and 
        need shall include a clear statement of the objectives 
        that the proposed action is intended to achieve, which 
        may include--
                    ``(A) achieving a transportation objective 
                identified in an applicable statewide or 
                metropolitan transportation plan;
                    ``(B) supporting land use, economic 
                development, or growth objectives established 
                in applicable Federal, State, local, or tribal 
                plans; and
                    ``(C) serving national defense, national 
                security, or other national objectives, as 
                established in Federal laws, plans, or 
                policies.
            ``(4) Alternatives analysis.--
                    ``(A) Participation.--As early as 
                practicable during the environmental review 
                process, the lead agency shall provide an 
                opportunity for involvement by participating 
                agencies and the public in determining the 
                range of alternatives to be considered for a 
                project.
                    ``(B) Range of alternatives.--Following 
                participation under paragraph (1), the lead 
                agency shall determine the range of 
                alternatives for consideration in any document 
                which the lead agency is responsible for 
                preparing for the project.
                    ``(C) Methodologies.--The lead agency also 
                shall determine, in collaboration with 
                participating agencies at appropriate times 
                during the study process, the methodologies to 
                be used and the level of detail required in the 
                analysis of each alternative for a project.
                    ``(D) Preferred alternative.--At the 
                discretion of the lead agency, the preferred 
                alternative for a project, after being 
                identified, may be developed to a higher level 
                of detail than other alternatives in order to 
                facilitate the development of mitigation 
                measures or concurrent compliance with other 
                applicable laws if the lead agency determines 
                that the development of such higher level of 
                detail will not prevent the lead agency from 
                making an impartial decision as to whether to 
                accept another alternative which is being 
                considered in the environmental review process.
    ``(g) Coordination and Scheduling.--
            ``(1) Coordination plan.--
                    ``(A) In general.--The lead agency shall 
                establish a plan for coordinating public and 
                agency participation in and comment on the 
                environmental review process for a project or 
                category of projects. The coordination plan may 
                be incorporated into a memorandum of 
                understanding.
                    ``(B) Schedule.--
                            ``(i) In general.--The lead agency 
                        may establish as part of the 
                        coordination plan, after consultation 
                        with each participating agency for the 
                        project and with the State in which the 
                        project is located (and, if the State 
                        is not the project sponsor, with the 
                        project sponsor), a schedule for 
                        completion of the environmental review 
                        process for the project.
                            ``(ii) Factors for consideration.--
                        In establishing the schedule, the lead 
                        agency shall consider factors such as--
                                    ``(I) the responsibilities 
                                of participating agencies under 
                                applicable laws;
                                    ``(II) resources available 
                                to the cooperating agencies;
                                    ``(III) overall size and 
                                complexity of the project;
                                    ``(IV) the overall schedule 
                                for and cost of the project; 
                                and
                                    ``(V) the sensitivity of 
                                the natural and historic 
                                resources that could be 
                                affected by the project.
                    ``(C) Consistency with other time 
                periods.--A schedule under subparagraph (B) 
                shall be consistent with any other relevant 
                time periods established under Federal law.
                    ``(D) Modification.--The lead agency may--
                            ``(i) lengthen a schedule 
                        established under subparagraph (B) for 
                        good cause; and
                            ``(ii) shorten a schedule only with 
                        the concurrence of the affected 
                        cooperating agencies.
                    ``(E) Dissemination.--A copy of a schedule 
                under subparagraph (B), and of any 
                modifications to the schedule, shall be--
                            ``(i) provided to all participating 
                        agencies and to the State 
                        transportation department of the State 
                        in which the project is located (and, 
                        if the State is not the project 
                        sponsor, to the project sponsor); and
                            ``(ii) made available to the 
                        public.
            ``(2) Comment deadlines.--The lead agency shall 
        establish the following deadlines for comment during 
        the environmental review process for a project:
                    ``(A) For comments by agencies and the 
                public on a draft environmental impact 
                statement, a period of not more than 60 days 
                after publication in the Federal Register of 
                notice of the date of public availability of 
                such document, unless--
                            ``(i) a different deadline is 
                        established by agreement of the lead 
                        agency, the project sponsor, and all 
                        participating agencies; or
                            ``(ii) the deadline is extended by 
                        the lead agency for good cause.
                    ``(B) For all other comment periods 
                established by the lead agency for agency or 
                public comments in the environmental review 
                process, a period of no more than 30 days from 
                availability of the materials on which comment 
                is requested, unless--
                            ``(i) a different deadline is 
                        established by agreement of the lead 
                        agency, the project sponsor, and all 
                        participating agencies; or
                            ``(ii) the deadline is extended by 
                        the lead agency for good cause.
            ``(3) Deadlines for decisions under other laws.--In 
        any case in which a decision under any Federal law 
        relating to a project (including the issuance or denial 
        of a permit or license) is required to be made by the 
        later of the date that is 180 days after the date on 
        which the Secretary made all final decisions of the 
        lead agency with respect to the project, or 180 days 
        after the date on which an application was submitted 
        for the permit or license, the Secretary shall submit 
        to the Committee on Environment and Public Works of the 
        Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives--
                    ``(A) as soon as practicable after the 180-
                day period, an initial notice of the failure of 
                the Federal agency to make the decision; and
                    ``(B) every 60 days thereafter until such 
                date as all decisions of the Federal agency 
                relating to the project have been made by the 
                Federal agency, an additional notice that 
                describes the number of decisions of the 
                Federal agency that remain outstanding as of 
                the date of the additional notice.
            ``(4) Involvement of the public.--Nothing in this 
        subsection shall reduce any time period provided for 
        public comment in the environmental review process 
        under existing Federal law, including a regulation.
    ``(h) Issue Identification and Resolution.--
            ``(1) Cooperation.--The lead agency and the 
        participating agencies shall work cooperatively in 
        accordance with this section to identify and resolve 
        issues that could delay completion of the environmental 
        review process or could result in denial of any 
        approvals required for the project under applicable 
        laws.
            ``(2) Lead agency responsibilities.--The lead 
        agency shall make information available to the 
        participating agencies as early as practicable in the 
        environmental review process regarding the 
        environmental and socioeconomic resources located 
        within the project area and the general locations of 
        the alternatives under consideration. Such information 
        may be based on existing data sources, including 
        geographic information systems mapping.
            ``(3) Participating agency responsibilities.--Based 
        on information received from the lead agency, 
        participating agencies shall identify, as early as 
        practicable, any issues of concern regarding the 
        project's potential environmental or socioeconomic 
        impacts. In this paragraph, issues of concern include 
        any issues that could substantially delay or prevent an 
        agency from granting a permit or other approval that is 
        needed for the project.
            ``(4) Issue resolution.--
                    ``(A) Meeting of participating agencies.--
                At any time upon request of a project sponsor 
                or the Governor of a State in which the project 
                is located, the lead agency shall promptly 
                convene a meeting with the relevant 
                participating agencies, the project sponsor, 
                and the Governor (if the meeting was requested 
                by the Governor) to resolve issues that could 
                delay completion of the environmental review 
                process or could result in denial of any 
                approvals required for the project under 
                applicable laws.
                    ``(B) Notice that resolution cannot be 
                achieved.--If a resolution cannot be achieved 
                within 30 days following such a meeting and a 
                determination by the lead agency that all 
                information necessary to resolve the issue has 
                been obtained, the lead agency shall notify the 
                heads of all participating agencies, the 
                project sponsor, the Governor, the Committee on 
                Environment and Public Works of the Senate, the 
                Committee on Transportation and Infrastructure 
                of the House of Representatives, and the 
                Council on Environmental Quality, and shall 
                publish such notification in the Federal 
                Register.
    ``(i) Performance Measurement.--The Secretary shall 
establish a program to measure and report on progress toward 
improving and expediting the planning and environmental review 
process.
    ``(j) Assistance to Affected State and Federal Agencies.--
            ``(1) In general.--For a project that is subject to 
        the environmental review process established under this 
        section and for which funds are made available to a 
        State under this title or chapter 53 of title 49, the 
        Secretary may approve a request by the a State to 
        provide funds so made available under this title or 
        such chapter 53 to affected Federal agencies (including 
        the Department of Transportation), State agencies, and 
        Indian tribes participating in the environmental review 
        process for the projects in that State or participating 
        in a State process that has been approved by the 
        Secretary for that State. Such funds may be provided 
        only to support activities that directly and 
        meaningfully contribute to expediting and improving 
        transportation project planning and delivery for 
        projects in that State.
            ``(2) Activities eligible for funding.--Activities 
        for which funds may be provided under paragraph (1) 
        include transportation planning activities that precede 
        the initiation of the environmental review process, 
        dedicated staffing, training of agency personnel, 
        information gathering and mapping, and development of 
        programmatic agreements.
            ``(3) Use of federal lands highway funds.--The 
        Secretary may also use funds made available under 
        section 204 for a project for the purposes specified in 
        this subsection with respect to the environmental 
        review process for the project.
            ``(4) Amounts.--Requests under paragraph (1) may be 
        approved only for the additional amounts that the 
        Secretary determines are necessary for the Federal 
        agencies, State agencies, or Indian tribes 
        participating in the environmental review process to 
        meet the time limits for environmental review.
            ``(5) Condition.--A request under paragraph (1) to 
        expedite time limits for environmental review may be 
        approved only if such time limits are less than the 
        customary time necessary for such review.
    ``(k) Judicial Review and Savings Clause.--
            ``(1) Judicial review.--Except as set forth under 
        subsection (l), nothing in this section shall affect 
        the reviewability of any final Federal agency action in 
        a court of the United States or in the court of any 
        State.
            ``(2) Savings clause.--Nothing in this section 
        shall be construed as superseding, amending, or 
        modifying the National Environmental Policy Act of 1969 
        or any other Federal environmental statute or affect 
        the responsibility of any Federal officer to comply 
        with or enforce any such statute.
            ``(3) Limitations.--Nothing in this section shall 
        preempt or interfere with--
                    ``(A) any practice of seeking, considering, 
                or responding to public comment; or
                    ``(B) any power, jurisdiction, 
                responsibility, or authority that a Federal, 
                State, or local government agency, metropolitan 
                planning organization, Indian tribe, or project 
                sponsor has with respect to carrying out a 
                project or any other provisions of law 
                applicable to projects, plans, or programs.
    ``(l) Limitations on Claims.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, a claim arising under Federal law 
        seeking judicial review of a permit, license, or 
        approval issued by a Federal agency for a highway or 
        public transportation capital project shall be barred 
        unless it is filed within 180 days after publication of 
        a notice in the Federal Register announcing that the 
        permit, license, or approval is final pursuant to the 
        law under which the agency action is taken, unless a 
        shorter time is specified in the Federal law pursuant 
        to which judicial review is allowed. Nothing in this 
        subsection shall create a right to judicial review or 
        place any limit on filing a claim that a person has 
        violated the terms of a permit, license, or approval.
            ``(2) New information.--The Secretary shall 
        consider new information received after the close of a 
        comment period if the information satisfies the 
        requirements for a supplemental environmental impact 
        statement under section 771.130 of title 23, Code of 
        Federal Regulations. The preparation of a supplemental 
        environmental impact statement when required shall be 
        considered a separate final agency action and the 
        deadline for filing a claim for judicial review of such 
        action shall be 180 days after the date of publication 
        of a notice in the Federal Register announcing such 
        action.''.
    (b) Existing Environmental Review Process.--Nothing in this 
section affects any existing State environmental review 
process, program, agreement, or funding arrangement approved by 
the Secretary under section 1309 of the Transportation Equity 
Act for the 21st Century (112 Stat. 232; 23 U.S.C. 109 note) as 
such section was in effect on the day preceding the date of 
enactment of the SAFETEA-LU.
    (c) Conforming Amendment.--The analysis for such subchapter 
is amended by inserting after the item relating to section 138 
the following:

``139. Efficient environmental reviews for project decisionmaking.''.

    (d) Repeal.--Section 1309 of the Transportation Equity Act 
for the 21st Century (112 Stat. 232) is repealed.

SEC. 6003. STATE ASSUMPTION OF RESPONSIBILITIES FOR CERTAIN PROGRAMS 
                    AND PROJECTS.

    (a) In General.--Chapter 3 of title 23, United States Code, 
is amended by inserting after section 324 the following:

``Sec. 325. State assumption of responsibilities for certain programs 
                    and projects

    ``(a) Assumption of Secretary's Responsibilities Under 
Applicable Federal Laws.--
            ``(1) Pilot program.--
                    ``(A) Establishment.--The Secretary may 
                establish a pilot program under which States 
                may assume the responsibilities of the 
                Secretary under any Federal laws subject to the 
                requirements of this section.
                    ``(B) First 3 fiscal years.--In the first 3 
                fiscal years following the date of enactment of 
                the SAFETEA-LU, the Secretary may allow up to 5 
                States to participate in the pilot program.
            ``(2) Scope of program.--Under the pilot program, 
        the Secretary may assign, and a State may assume, any 
        of the Secretary's responsibilities (other than 
        responsibilities relating to federally recognized 
        Indian tribes) for environmental reviews, consultation, 
        or decisionmaking or other actions required under any 
        Federal law as such requirements apply to the following 
        projects:
                    ``(A) Projects funded under section 104(h).
                    ``(B) Transportation enhancement activities 
                under section 133, as such term is defined in 
                section 101(a)(35).
    ``(b) Agreements.--
            ``(1) In general.--The Secretary shall enter into a 
        memorandum of understanding with a State participating 
        in the pilot program setting forth the responsibilities 
        to be assigned under subsection (a)(2) and the terms 
        and conditions under which the assignment is being 
        made.
            ``(2) Certification.--Before the Secretary enters 
        into a memorandum of understanding with a State under 
        paragraph (1), the State shall certify that the State 
        has in effect laws (including regulations) applicable 
        to projects carried out and funded under this title and 
        chapter 53 of title 49 that authorize the State to 
        carry out the responsibilities being assumed.
            ``(3) Maximum duration.--A memorandum of 
        understanding with a State under this section shall be 
        established for an initial period of no more than 3 
        years and may be renewed by mutual agreement on a 
        periodic basis for periods of not more than 3 years.
            ``(4) Compliance.--
                    ``(A) In general.--After entering into a 
                memorandum of understanding under paragraph 
                (1), the Secretary shall review and determine 
                compliance by the State with the memorandum of 
                understanding.
                    ``(B) Renewals.--The Secretary shall take 
                into account the performance of a State under 
                the pilot program when considering renewal of a 
                memorandum of understanding with the State 
                under the program.
            ``(5) Sole responsibility.--A State that assumes 
        responsibility under subsection (a)(2) with respect to 
        a Federal law shall be solely responsible and solely 
        liable for complying with and carrying out that law, 
        and the Secretary shall have no such responsibility or 
        liability.
            ``(6) Acceptance of jurisdiction.--In a memorandum 
        of understanding, the State shall consent to accept the 
        jurisdiction of the Federal courts for the compliance, 
        discharge, and enforcement of any responsibility of the 
        Secretary that the State assumes.
    ``(c) Selection of States for Pilot Program.--
            ``(1) Application.--To be eligible to participate 
        in the pilot program, a State shall submit to the 
        Secretary an application that contains such information 
        as the Secretary may require. At a minimum, an 
        application shall include--
                    ``(A) a description of the projects or 
                classes of projects for which the State seeks 
                to assume responsibilities under subsection 
                (a)(2); and
                    ``(B) a certification that the State has 
                the capability to assume such responsibilities.
            ``(2) Public notice.--Before entering into a 
        memorandum of understanding allowing a State to 
        participate in the pilot program, the Secretary shall--
                    ``(A) publish notice in the Federal 
                Register of the Secretary's intent to allow the 
                State to participate in the program, including 
                a copy of the State's application to the 
                Secretary and the terms of the proposed 
                agreement with the State; and
                    ``(B) provide an opportunity for public 
                comment.
            ``(3) Selection criteria.--The Secretary may 
        approve the application of a State to assume 
        responsibilities under the program only if--
                    ``(A) the requirements under paragraph (2) 
                have been met; and
                    ``(B) the Secretary determines that the 
                State has the capability to assume the 
                responsibilities.
            ``(4) Other federal agency views.--Before assigning 
        to a State a responsibility of the Secretary that 
        requires the Secretary to consult with another Federal 
        agency, the Secretary shall solicit the views of the 
        Federal agency.
    ``(d) State Defined.--With respect to the recreational 
trails program, the term `State' means the State agency 
designated by the Governor of the State in accordance with 
section 206(c)(1).
    ``(e) Preservation of Public Interest Consideration.--
Nothing in this section shall be construed to limit the 
requirements under any applicable law providing for the 
consideration and preservation of the public interest, 
including public participation and community values in 
transportation decisionmaking.''.
    (b) Conforming Amendment.--The analysis for chapter 3 of 
title 23, United States Code, is amended by adding after the 
item relating to section 324 the following:

``325. State assumption of responsibilities for certain programs and 
          projects.''.

SEC. 6004. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                    EXCLUSIONS.

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

``Sec. 326. State assumption of responsibility for categorical 
                    exclusions

    ``(a) Categorical Exclusion Determinations.--
            ``(1) In general.--The Secretary may assign, and a 
        State may assume, responsibility for determining 
        whether certain designated activities are included 
        within classes of action identified in regulation by 
        the Secretary that are categorically excluded from 
        requirements for environmental assessments or 
        environmental impact statements pursuant to regulations 
        promulgated by the Council on Environmental Quality 
        under part 1500 of title 40, Code of Federal 
        Regulations (as in effect on October 1, 2003).
            ``(2) Scope of authority.--A determination 
        described in paragraph (1) shall be made by a State in 
        accordance with criteria established by the Secretary 
        and only for types of activities specifically 
        designated by the Secretary.
            ``(3) Criteria.--The criteria under paragraph (2) 
        shall include provisions for public availability of 
        information consistent with section 552 of title 5 and 
        the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.).
    ``(b) Other Applicable Federal Laws.--
            ``(1) In general.--If a State assumes 
        responsibility under subsection (a), the Secretary may 
        also assign and the State may assume all or part of the 
        responsibilities of the Secretary for environmental 
        review, consultation, or other related actions required 
        under any Federal law applicable to activities that are 
        classified by the Secretary as categorical exclusions, 
        with the exception of government-to-government 
        consultation with Indian tribes, subject to the same 
        procedural and substantive requirements as would be 
        required if that responsibility were carried out by the 
        Secretary.
            ``(2) Sole responsibility.--A State that assumes 
        responsibility under paragraph (1) with respect to a 
        Federal law shall be solely responsible and solely 
        liable for complying with and carrying out that law, 
        and the Secretary shall have no such responsibility or 
        liability.
    ``(c) Memoranda of Understanding.--
            ``(1) In general.--The Secretary and the State, 
        after providing public notice and opportunity for 
        comment, shall enter into a memorandum of understanding 
        setting forth the responsibilities to be assigned under 
        this section and the terms and conditions under which 
        the assignments are made, including establishment of 
        the circumstances under which the Secretary would 
        reassume responsibility for categorical exclusion 
        determinations.
            ``(2) Term.--A memorandum of understanding--
                    ``(A) shall have a term of not more than 3 
                years; and
                    ``(B) shall be renewable.
            ``(3) Acceptance of jurisdiction.--In a memorandum 
        of understanding, the State shall consent to accept the 
        jurisdiction of the Federal courts for the compliance, 
        discharge, and enforcement of any responsibility of the 
        Secretary that the State assumes.
            ``(4) Monitoring.--The Secretary shall--
                    ``(A) monitor compliance by the State with 
                the memorandum of understanding and the 
                provision by the State of financial resources 
                to carry out the memorandum of understanding; 
                and
                    ``(B) take into account the performance by 
                the State when considering renewal of the 
                memorandum of understanding.
    ``(d) Termination.--The Secretary may terminate any 
assumption of responsibility under a memorandum of 
understanding on a determination that the State is not 
adequately carrying out the responsibilities assigned to the 
State.
    ``(e) State Agency Deemed To Be Federal Agency.--A State 
agency that is assigned a responsibility under a memorandum of 
understanding shall be deemed to be a Federal agency for the 
purposes of the Federal law under which the responsibility is 
exercised.''.
    (b) Conforming Amendment.--The analysis for chapter 3 of 
title 23, United States Code, is further amended by adding 
after the item relating to section 325 the following:

``326. State assumption of responsibility for categorical exclusions.''.

SEC. 6005. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT PROGRAM.

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

``Sec. 327. Surface transportation project delivery pilot program

    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall carry out a 
        surface transportation project delivery pilot program 
        (referred to in this section as the `program').
            ``(2) Assumption of responsibility.--
                    ``(A) In general.--Subject to the other 
                provisions of this section, with the written 
                agreement of the Secretary and a State, which 
                may be in the form of a memorandum of 
                understanding, the Secretary may assign, and 
                the State may assume, the responsibilities of 
                the Secretary with respect to 1 or more highway 
                projects within the State under the National 
                Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.).
                    ``(B) Additional responsibility.--If a 
                State assumes responsibility under subparagraph 
                (A)--
                            ``(i) the Secretary may assign to 
                        the State, and the State may assume, 
                        all or part of the responsibilities of 
                        the Secretary for environmental review, 
                        consultation, or other action required 
                        under any Federal environmental law 
                        pertaining to the review or approval of 
                        a specific project; but
                            ``(ii) the Secretary may not 
                        assign--
                                    ``(I) responsibility for 
                                any conformity determination 
                                required under section 176 of 
                                the Clean Air Act (42 U.S.C. 
                                7506); or
                                    ``(II) any responsibility 
                                imposed on the Secretary by 
                                section 134 or 135.
                    ``(C) Procedural and substantive 
                requirements.--A State shall assume 
                responsibility under this section subject to 
                the same procedural and substantive 
                requirements as would apply if that 
                responsibility were carried out by the 
                Secretary.
                    ``(D) Federal responsibility.--Any 
                responsibility of the Secretary not explicitly 
                assumed by the State by written agreement under 
                this section shall remain the responsibility of 
                the Secretary.
                    ``(E) No effect on authority.--Nothing in 
                this section preempts or interferes with any 
                power, jurisdiction, responsibility, or 
                authority of an agency, other than the 
                Department of Transportation, under applicable 
                law (including regulations) with respect to a 
                project.
    ``(b) State Participation.--
            ``(1) Number of participating states.--The 
        Secretary may permit not more than 5 States (including 
        the States of Alaska, California, Ohio, Oklahoma, and 
        Texas) to participate in the program.
            ``(2) Application.--Not later than 270 days after 
        the date of enactment of this section, the Secretary 
        shall promulgate regulations that establish 
        requirements relating to information required to be 
        contained in any application of a State to participate 
        in the program, including, at a minimum--
                    ``(A) the projects or classes of projects 
                for which the State anticipates exercising the 
                authority that may be granted under the 
                program;
                    ``(B) verification of the financial 
                resources necessary to carry out the authority 
                that may be granted under the program; and
                    ``(C) evidence of the notice and 
                solicitation of public comment by the State 
                relating to participation of the State in the 
                program, including copies of comments received 
                from that solicitation.
            ``(3) Public notice.--
                    ``(A) In general.--Each State that submits 
                an application under this subsection shall give 
                notice of the intent of the State to 
                participate in the program not later than 30 
                days before the date of submission of the 
                application.
                    ``(B) Method of notice and solicitation.--
                The State shall provide notice and solicit 
                public comment under this paragraph by 
                publishing the complete application of the 
                State in accordance with the appropriate public 
                notice law of the State.
            ``(4) Selection criteria.--The Secretary may 
        approve the application of a State under this section 
        only if--
                    ``(A) the regulatory requirements under 
                paragraph (2) have been met;
                    ``(B) the Secretary determines that the 
                State has the capability, including financial 
                and personnel, to assume the responsibility; 
                and
                    ``(C) the head of the State agency having 
                primary jurisdiction over highway matters 
                enters into a written agreement with the 
                Secretary described in subsection (c).
            ``(5) Other federal agency views.--If a State 
        applies to assume a responsibility of the Secretary 
        that would have required the Secretary to consult with 
        another Federal agency, the Secretary shall solicit the 
        views of the Federal agency before approving the 
        application.
    ``(c) Written Agreement.--A written agreement under this 
section shall--
            ``(1) be executed by the Governor or the top-
        ranking transportation official in the State who is 
        charged with responsibility for highway construction;
            ``(2) be in such form as the Secretary may 
        prescribe;
            ``(3) provide that the State--
                    ``(A) agrees to assume all or part of the 
                responsibilities of the Secretary described in 
                subsection (a);
                    ``(B) expressly consents, on behalf of the 
                State, to accept the jurisdiction of the 
                Federal courts for the compliance, discharge, 
                and enforcement of any responsibility of the 
                Secretary assumed by the State;
                    ``(C) certifies that State laws (including 
                regulations) are in effect that--
                            ``(i) authorize the State to take 
                        the actions necessary to carry out the 
                        responsibilities being assumed; and
                            ``(ii) are comparable to section 
                        552 of title 5, including providing 
                        that any decision regarding the public 
                        availability of a document under those 
                        State laws is reviewable by a court of 
                        competent jurisdiction; and
                    ``(D) agrees to maintain the financial 
                resources necessary to carry out the 
                responsibilities being assumed.
    ``(d) Jurisdiction.--
            ``(1) In general.--The United States district 
        courts shall have exclusive jurisdiction over any civil 
        action against a State for failure to carry out any 
        responsibility of the State under this section.
            ``(2) Legal standards and requirements.--A civil 
        action under paragraph (1) shall be governed by the 
        legal standards and requirements that would apply in 
        such a civil action against the Secretary had the 
        Secretary taken the actions in question.
            ``(3) Intervention.--The Secretary shall have the 
        right to intervene in any action described in paragraph 
        (1).
    ``(e) Effect of Assumption of Responsibility.--A State that 
assumes responsibility under subsection (a)(2) shall be solely 
responsible and solely liable for carrying out, in lieu of the 
Secretary, the responsibilities assumed under subsection 
(a)(2), until the program is terminated as provided in 
subsection (i).
    ``(f) Limitations on Agreements.--Nothing in this section 
permits a State to assume any rulemaking authority of the 
Secretary under any Federal law.
    ``(g) Audits.--
            ``(1) In general.--To ensure compliance by a State 
        with any agreement of the State under subsection (c) 
        (including compliance by the State with all Federal 
        laws for which responsibility is assumed under 
        subsection (a)(2)), for each State participating in the 
        program under this section, the Secretary shall 
        conduct--
                    ``(A) semiannual audits during each of the 
                first 2 years of State participation; and
                    ``(B) annual audits during each subsequent 
                year of State participation.
            ``(2) Public availability and comment.--
                    ``(A) In general.--An audit conducted under 
                paragraph (1) shall be provided to the public 
                for comment.
                    ``(B) Response.--Not later than 60 days 
                after the date on which the period for public 
                comment ends, the Secretary shall respond to 
                public comments received under subparagraph 
                (A).
    ``(h) Report to Congress.--The Secretary shall submit to 
Congress an annual report that describes the administration of 
the program.
    ``(i) Termination.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the program shall terminate on the date that is 6 
        years after the date of enactment of this section.
            ``(2) Termination by secretary.--The Secretary may 
        terminate the participation of any State in the program 
        if--
                    ``(A) the Secretary determines that the 
                State is not adequately carrying out the 
                responsibilities assigned to the State;
                    ``(B) the Secretary provides to the State--
                            ``(i) notification of the 
                        determination of noncompliance; and
                            ``(ii) a period of at least 30 days 
                        during which to take such corrective 
                        action as the Secretary determines is 
                        necessary to comply with the applicable 
                        agreement; and
                    ``(C) the State, after the notification and 
                period provided under subparagraph (B), fails 
                to take satisfactory corrective action, as 
                determined by Secretary.''.
    (b) Conforming Amendment.--The analysis for chapter 3 of 
title 23, United States Code, is further amended by adding 
after the item relating to section 326 the following:

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

SEC. 6006. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; CONTROL 
                    OF NOXIOUS WEEDS AND AQUATIC NOXIOUS WEEDS AND 
                    ESTABLISHMENT OF NATIVE SPECIES.

    (a) Modification to NHS/STP for Environmental Restoration, 
Pollution Abatement, Control of Noxious Weeds and Aquatic 
Noxious Weeds.--
            (1) Modifications to national highway system.--
        Section 103(b)(6) of title 23, United States Code, is 
        amended by adding at the end the following:
                    ``(Q) Environmental restoration and 
                pollution abatement in accordance with section 
                328.
                    ``(R) Control of noxious weeds and aquatic 
                noxious weeds and establishment of native 
                species in accordance with section 329.''.
            (2) Modifications to surface transportation 
        program.--Section 133(b) of title 23, is amended by 
        striking paragraph (14) and inserting the following:
            ``(14) Environmental restoration and pollution 
        abatement in accordance with section 328.
            ``(15) Control of noxious weeds and aquatic noxious 
        weeds and establishment of native species in accordance 
        with section 329.''.
    (b) Eligible Activities.--Chapter 3 of title 23, United 
States Code, is further amended by adding after section 327 the 
following:

``Sec. 328. Eligibility for environmental restoration and pollution 
                    abatement

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

``Sec. 329. Eligibility for control of noxious weeds and aquatic 
                    noxious weeds and establishment of native species

    ``(a) In General.--In accordance with all applicable 
Federal law (including regulations), funds made available to 
carry out this section may be used for the following activities 
if such activities are related to transportation projects 
funded under this title:
            ``(1) Establishment of plants selected by State and 
        local transportation authorities to perform one or more 
        of the following functions: abatement of stormwater 
        runoff, stabilization of soil, and aesthetic 
        enhancement.
            ``(2) Management of plants which impair or impede 
        the establishment, maintenance, or safe use of a 
        transportation system.
    ``(b) Included Activities.--The establishment and 
management under subsection (a)(1) and (a)(2) may include--
            ``(1) right-of-way surveys to determine management 
        requirements to control Federal or State noxious weeds 
        as defined in the Plant Protection Act (7 U.S.C. 7701 
        et seq.) or State law, and brush or tree species, 
        whether native or nonnative, that may be considered by 
        State or local transportation authorities to be a 
        threat with respect to the safety or maintenance of 
        transportation systems;
            ``(2) establishment of plants, whether native or 
        nonnative with a preference for native to the maximum 
        extent possible, for the purposes defined in subsection 
        (a)(1);
            ``(3) control or elimination of plants as defined 
        in subsection (a)(2);
            ``(4) elimination of plants to create fuel breaks 
        for the prevention and control of wildfires; and
            ``(5) training.
    ``(c) Contributions.--
            ``(1) In general.--Subject to paragraph (2), an 
        activity described in subsection (a) may be carried out 
        concurrently with, in advance of, or following the 
        construction of a project funded under this title.
            ``(2) Condition for activities conducted in advance 
        of project construction.--An activity described in 
        subsection (a) may be carried out in advance of 
        construction of a project only if the activity is 
        carried out in accordance with all applicable 
        requirements of Federal law (including regulations) and 
        State transportation planning processes.''.
    (c) Conforming Amendment.--The analysis for chapter 3 of 
title 23 is further amended by adding after the item relating 
to section 327 the following:

``328. Eligibility for environmental restoration and pollution 
          abatement.
``329. Eligibility for control of noxious weeds and aquatic noxious 
          weeds and establishment of native species.''.

SEC. 6007. EXEMPTION OF INTERSTATE SYSTEM.

    Section 103(c) of title 23, United States Code, is amended 
by adding at the end the following:
            ``(5) Exemption of interstate system.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Interstate System shall 
                not be considered to be a historic site under 
                section 303 of title 49 or section 138 of this 
                title, regardless of whether the Interstate 
                System or portions or elements of the 
                Interstate System are listed on, or eligible 
                for listing on, the National Register of 
                Historic Places.
                    ``(B) Individual elements.--Subject to 
                subparagraph (C), the Secretary shall 
                determine, through the administrative process 
                established for exempting the Interstate System 
                from section 106 of the National Historic 
                Preservation Act (16 U.S.C. 470f), those 
                individual elements of the Interstate System 
                that possess national or exceptional historic 
                significance (such as a historic bridge or a 
                highly significant engineering feature). Such 
                elements shall be considered to be a historic 
                site under section 303 of title 49 or section 
                138 of this title, as applicable.
                    ``(C) Construction, maintenance, 
                restoration, and rehabilitation activities.--
                Subparagraph (B) does not prohibit a State from 
                carrying out construction, maintenance, 
                restoration, or rehabilitation activities for a 
                portion of the Interstate System referred to in 
                subparagraph (B) upon compliance with section 
                303 of title 49 or section 138 of this title, 
                as applicable, and section 106 of the National 
                Historic Preservation Act (16 U.S.C. 470f).''.

SEC. 6008. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO TRANSPORTATION 
                    PROJECT PLANNING.

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

SEC. 6009. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL REFUGES, AND 
                    HISTORIC SITES.

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

SEC. 6010. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT SUPPORT DEPLOYMENT 
                    OF INTELLIGENT TRANSPORTATION SYSTEMS.

    (a) Categorical Exclusions.--Not later than one year after 
the date of enactment of this Act, the Secretary shall initiate 
a rulemaking process to establish, to the extent appropriate, 
categorical exclusions for activities that support the 
deployment of intelligent transportation infrastructure and 
systems from the requirement that an environmental assessment 
or an environmental impact statement be prepared under section 
102 of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332) in compliance with the standards for categorical 
exclusions established by that Act.
    (b) Nationwide Programmatic Agreement.--
            (1) Development.--The Secretary shall develop a 
        nationwide programmatic agreement governing the review 
        of activities that support the deployment of 
        intelligent transportation infrastructure and systems 
        in accordance with section 106 of the National Historic 
        Preservation Act (16 U.S.C. 470f) and the regulations 
        of the Advisory Council on Historic Preservation.
            (2) Consultation.--The Secretary shall develop the 
        agreement under paragraph (1) in consultation with the 
        National Conference of State Historic Preservation 
        Officers and the Advisory Council on Historic 
        Preservation established under title II of the National 
        Historic Preservation Act (26 U.S.C. 470i et seq.) and 
        after soliciting the views of other interested parties.
    (c) Intelligent Transportation Infrastructure and Systems 
Defined.--In this section, the term ``intelligent 
transportation infrastructure and systems'' means intelligent 
transportation infrastructure and intelligent transportation 
systems, as such terms are defined in subtitle C of title V of 
this Act.

SEC. 6011. TRANSPORTATION CONFORMITY.

    (a) Conformity Redeterminations.--Section 176(c)(2) of the 
Clean Air Act (42 U.S.C. 7506(c)) is amended by adding at the 
end the following:
                    ``(E) The appropriate metropolitan planning 
                organization shall redetermine conformity of 
                existing transportation plans and programs not 
                later than 2 years after the date on which the 
                Administrator--
                            ``(i) finds a motor vehicle 
                        emissions budget to be adequate in 
                        accordance with section 93.118(e)(4) of 
                        title 40, Code of Federal Regulations 
                        (as in effect on October 1, 2004);
                            ``(ii) approves an implementation 
                        plan that establishes a motor vehicle 
                        emissions budget if that budget has not 
                        yet been determined to be adequate in 
                        accordance with clause (i); or
                            ``(iii) promulgates an 
                        implementation plan that establishes or 
                        revises a motor vehicle emissions 
                        budget.''.
    (b) Frequency of Conformity Determination Updates.--Section 
176(c)(4)(B)(ii) of the Clean Air Act (42 U.S.C. 
7506(c)(4)(B)(ii)) is amended to read as follows:
            ``(ii) address the appropriate frequency for making 
        conformity determinations, but the frequency for making 
        conformity determinations on updated transportation 
        plans and programs shall be every 4 years, except in a 
        case in which--
                    ``(I) the metropolitan planning 
                organization elects to update a transportation 
                plan or program more frequently; or
                    ``(II) the metropolitan planning 
                organization is required to determine 
                conformity in accordance with paragraph (2)(E); 
                and''.
    (c) Time Horizon for Conformity Determinations in 
Nonattainment Areas.--Section 176(c) of the Clean Air Act (42 
U.S.C. 7506(c)) is amended by adding at the end the following:
            ``(7) Conformity horizon for transportation 
        plans.--
                    ``(A) In general.--Each conformity 
                determination required under this section for a 
                transportation plan under section 134(i) of 
                title 23, United States Code, or section 
                5303(i) of title 49, United States Code, shall 
                require a demonstration of conformity for the 
                period ending on either the final year of the 
                transportation plan, or at the election of the 
                metropolitan planning organization, after 
                consultation with the air pollution control 
                agency and solicitation of public comments and 
                consideration of such comments, the longest of 
                the following periods:
                            ``(i) The first 10-year period of 
                        any such transportation plan.
                            ``(ii) The latest year in the 
                        implementation plan applicable to the 
                        area that contains a motor vehicle 
                        emission budget.
                            ``(iii) The year after the 
                        completion date of a regionally 
                        significant project if the project is 
                        included in the transportation 
                        improvement program or the project 
                        requires approval before the subsequent 
                        conformity determination.
                    ``(B) Regional emissions analysis.--The 
                conformity determination shall be accompanied 
                by a regional emissions analysis for the last 
                year of the transportation plan and for any 
                year shown to exceed emission budgets by a 
                prior analysis, if such year extends beyond the 
                applicable period as determined under 
                subparagraph (A).
                    ``(C) Exception.--In any case in which an 
                area has a revision to an implementation plan 
                under section 175A(b) and the Administrator has 
                found the motor vehicles emissions budgets from 
                that revision to be adequate in accordance with 
                section 93.118(e)(4) of title 40, Code of 
                Federal Regulations (as in effect on October 1, 
                2004), or has approved the revision, the 
                demonstration of conformity at the election of 
                the metropolitan planning organization, after 
                consultation with the air pollution control 
                agency and solicitation of public comments and 
                consideration of such comments, shall be 
                required to extend only through the last year 
                of the implementation plan required under 
                section 175A(b).
                    ``(D) Effect of election.--Any election by 
                a metropolitan planning organization under this 
                paragraph shall continue in effect until the 
                metropolitan planning organization elects 
                otherwise.
                    ``(E) Air pollution control agency 
                defined.--In this paragraph, the term `air 
                pollution control agency' means an air 
                pollution control agency (as defined in section 
                302(b)) that is responsible for developing 
                plans or controlling air pollution within the 
                area covered by a transportation plan.''.
    (d) Substitution of Transportation Control Measures.--
Section 176(c) of the Clean Air Act (42 U.S.C. 7506(c)) (as 
amended by subsection (c)) is amended by inserting after 
paragraph (7) the following:
            ``(8) Substitution of transportation control 
        measures.--
                    ``(A) In general.--Transportation control 
                measures that are specified in an 
                implementation plan may be replaced or added to 
                the implementation plan with alternate or 
                additional transportation control measures--
                            ``(i) if the substitute measures 
                        achieve equivalent or greater emissions 
                        reductions than the control measure to 
                        be replaced, as demonstrated with an 
                        emissions impact analysis that is 
                        consistent with the current methodology 
                        used for evaluating the replaced 
                        control measure in the implementation 
                        plan;
                            ``(ii) if the substitute control 
                        measures are implemented--
                                    ``(I) in accordance with a 
                                schedule that is consistent 
                                with the schedule provided for 
                                control measures in the 
                                implementation plan; or
                                    ``(II) if the 
                                implementation plan date for 
                                implementation of the control 
                                measure to be replaced has 
                                passed, as soon as practicable 
                                after the implementation plan 
                                date but not later than the 
                                date on which emission 
                                reductions are necessary to 
                                achieve the purpose of the 
                                implementation plan;
                            ``(iii) if the substitute and 
                        additional control measures are 
                        accompanied with evidence of adequate 
                        personnel and funding and authority 
                        under State or local law to implement, 
                        monitor, and enforce the control 
                        measures;
                            ``(iv) if the substitute and 
                        additional control measures were 
                        developed through a collaborative 
                        process that included--
                                    ``(I) participation by 
                                representatives of all affected 
                                jurisdictions (including local 
                                air pollution control agencies, 
                                the State air pollution control 
                                agency, and State and local 
                                transportation agencies);
                                    ``(II) consultation with 
                                the Administrator; and
                                    ``(III) reasonable public 
                                notice and opportunity for 
                                comment; and
                            ``(v) if the metropolitan planning 
                        organization, State air pollution 
                        control agency, and the Administrator 
                        concur with the equivalency of the 
                        substitute or additional control 
                        measures.
                    ``(B) Adoption.--(i) Concurrence by the 
                metropolitan planning organization, State air 
                pollution control agency and the Administrator 
                as required by subparagraph (A)(v) shall 
                constitute adoption of the substitute or 
                additional control measures so long as the 
                requirements of subparagraphs (A)(i), (A)(ii), 
                (A)(iii) and (A)(iv) are met.
                    ``(ii) Once adopted, the substitute or 
                additional control measures become, by 
                operation of law, part of the state 
                implementation plan and become federally 
                enforceable.
                    ``(iii) Within 90 days of its concurrence 
                under subparagraph (A)(v), the State air 
                pollution control agency shall submit the 
                substitute or additional control measure to the 
                Administrator for incorporation in the 
                codification of the applicable implementation 
                plan. Nothwithstanding any other provision of 
                this Act, no additional State process shall be 
                necessary to support such revision to the 
                applicable plan.
                    ``(C) No requirement for express 
                permission.--The substitution or addition of a 
                transportation control measure in accordance 
                with this paragraph and the funding or approval 
                of such a control measure shall not be 
                contingent on the existence of any provision in 
                the applicable implementation plan that 
                expressly permits such a substitution or 
                addition.
                    ``(D) No requirement for new conformity 
                determination.--The substitution or addition of 
                a transportation control measure in accordance 
                with this paragraph shall not require--
                            ``(i) a new conformity 
                        determination for the transportation 
                        plan; or
                            ``(ii) a revision of the 
                        implementation plan.
                    ``(E) Continuation of control measure being 
                replaced.--A control measure that is being 
                replaced by a substitute control measure under 
                this paragraph shall remain in effect until the 
                substitute control measure is adopted by the 
                State pursuant to subparagraph (B).
                    ``(F) Effect of adoption.--Adoption of a 
                substitute control measure shall constitute 
                rescission of the previously applicable control 
                measure.''.
    (e) Lapse of Conformity.--Section 176(c) of the Clean Air 
Act (42 U.S.C. 7506(c)) (as amended by subsections (c) and (d)) 
is amended by inserting after paragraph (8) the following:
            ``(9) Lapse of conformity.--If a conformity 
        determination required under this subsection for a 
        transportation plan under section 134(i) of title 23, 
        United States Code, or section 5303(i) of title 49, 
        United States Code, or a transportation improvement 
        program under section 134(j) of such title 23 or under 
        section 5303(j) of such title 49 is not made by the 
        applicable deadline and such failure is not corrected 
        by additional measures to either reduce motor vehicle 
        emissions sufficient to demonstrate compliance with the 
        requirements of this subsection within 12 months after 
        such deadline or other measures sufficient to correct 
        such failures, the transportation plan shall lapse.
            ``(10) Lapse.--In this subsection, the term `lapse' 
        means that the conformity determination for a 
        transportation plan or transportation improvement 
        program has expired, and thus there is no currently 
        conforming transportation plan or transportation 
        improvement program.''.
    (f) Conforming Amendments.--Section 176(c)(4) of the Clean 
Air Act (42 U.S.C. 7506(c)(4) (as amended by subsection (b)) is 
amended--
            (1) by redesignating subparagraphs (B), (C), and 
        (D) as subparagraphs (D), (E), and (F), respectively;
            (2) by striking ``(4)(A) No later than one year 
        after the date of enactment of the Clean Air Act 
        Amendments of 1990, the Administrator shall 
        promulgate'' and inserting the following:
            ``(4) Criteria and procedures for determining 
        conformity.--
                    ``(A) In general.--The Administrator shall 
                promulgate, and periodically update,'';
            (3) in the second sentence of subparagraph (A)--
                    (A) by striking ``No later than one year 
                after such date of enactment, the 
                Administrator, with the concurrence of the 
                Secretary of Transportation, shall promulgate'' 
                and inserting the following:
                    ``(B) Transportation plans, programs, and 
                projects.--The Administrator, with the 
                concurrence of the Secretary of Transportation, 
                shall promulgate, and periodically update,''; 
                and
                    (B) in the third sentence, by striking ``A 
                suit'' and inserting the following:
                    ``(C) Civil action to compel 
                promulgation.--A civil action''; and
            (4) by striking subparagraph (E) (as redesignated 
        by paragraph (1)) and inserting the following:
                    ``(E) Inclusion of criteria and procedures 
                in sip.--Not later than 2 years after the date 
                of enactment of the SAFETEA-LU the procedures 
                under subparagraph (A) shall include a 
                requirement that each State include in the 
                State implementation plan criteria and 
                procedures for consultation required by 
                subparagraph (D)(i), and enforcement and 
                enforceability (pursuant to sections 93.125(c) 
                and 93.122(a)(4)(ii) of title 40, Code of 
                Federal Regulations) in accordance with the 
                Administrator's criteria and procedures for 
                consultation, enforcement and 
                enforceability.''.
    (g) Regulations.--Not later than 2 years after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall promulgate revised regulations to 
implement the changes made by this section.

SEC. 6012. FEDERAL REFERENCE METHOD.

    (a) In General.--Section 6102(e) of the Transportation 
Equity Act for the 21st Century (42 U.S.C. 7407 note; 112 Stat. 
464-465) is amended to read as follows:
    ``(e) Field Study.--Not later than 2 years after the date 
of enactment of the SAFETEA-LU, the Administrator shall--
            ``(1) conduct a field study of the ability of the 
        PM2.5 Federal Reference Method to 
        differentiate those particles that are larger than 2.5 
        micrometers in diameter;
            ``(2) develop a Federal reference method to measure 
        directly particles that are larger than 2.5 micrometers 
        in diameter without reliance on subtracting from coarse 
        particle measurements those particles that are equal to 
        or smaller than 2.5 micrometers in diameter;
            ``(3) develop a method of measuring the composition 
        of coarse particles; and
            ``(4) submit a report on the study and 
        responsibilities of the Administrator under paragraphs 
        (1) through (3) to--
                    ``(A) the Committee on Energy and Commerce 
                of the House of Representatives; and
                    ``(B) the Committee on Environment and 
                Public Works of the Senate.''.

SEC. 6013. AIR QUALITY MONITORING DATA INFLUENCED BY EXCEPTIONAL 
                    EVENTS.

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

``SEC. 319. AIR QUALITY MONITORING.

    ``(a) In General.--After notice and opportunity for public 
hearing''; and
            (2) by adding at the end the following:
    ``(b) Air Quality Monitoring Data Influenced by Exceptional 
Events.--
            ``(1) Definition of exceptional event.--In this 
        section:
                    ``(A) In general.--The term `exceptional 
                event' means an event that--
                            ``(i) affects air quality;
                            ``(ii) is not reasonably 
                        controllable or preventable;
                            ``(iii) is an event caused by human 
                        activity that is unlikely to recur at a 
                        particular location or a natural event; 
                        and
                            ``(iv) is determined by the 
                        Administrator through the process 
                        established in the regulations 
                        promulgated under paragraph (2) to be 
                        an exceptional event.
                    ``(B) Exclusions.--In this subsection, the 
                term `exceptional event' does not include--
                            ``(i) stagnation of air masses or 
                        meteorological inversions;
                            ``(ii) a meteorological event 
                        involving high temperatures or lack of 
                        precipitation; or
                            ``(iii) air pollution relating to 
                        source noncompliance.
            ``(2) Regulations.--
                    ``(A) Proposed regulations.--Not later than 
                March 1, 2006, after consultation with Federal 
                land managers and State air pollution control 
                agencies, the Administrator shall publish in 
                the Federal Register proposed regulations 
                governing the review and handling of air 
                quality monitoring data influenced by 
                exceptional events.
                    ``(B) Final regulations.--Not later than 1 
                year after the date on which the Administrator 
                publishes proposed regulations under 
                subparagraph (A), and after providing an 
                opportunity for interested persons to make oral 
                presentations of views, data, and arguments 
                regarding the proposed regulations, the 
                Administrator shall promulgate final 
                regulations governing the review and handling 
                or air quality monitoring data influenced by an 
                exceptional event that are consistent with 
                paragraph (3).
            ``(3) Principles and requirements.--
                    ``(A) Principles.--In promulgating 
                regulations under this section, the 
                Administrator shall follow--
                            ``(i) the principle that protection 
                        of public health is the highest 
                        priority;
                            ``(ii) the principle that timely 
                        information should be provided to the 
                        public in any case in which the air 
                        quality is unhealthy;
                            ``(iii) the principle that all 
                        ambient air quality data should be 
                        included in a timely manner, an 
                        appropriate Federal air quality 
                        database that is accessible to the 
                        public;
                            ``(iv) the principle that each 
                        State must take necessary measures to 
                        safeguard public health regardless of 
                        the source of the air pollution; and
                            ``(v) the principle that air 
                        quality data should be carefully 
                        screened to ensure that events not 
                        likely to recur are represented 
                        accurately in all monitoring data and 
                        analyses.
                    ``(B) Requirements.--Regulations 
                promulgated under this section shall, at a 
                minimum, provide that--
                            ``(i) the occurrence of an 
                        exceptional event must be demonstrated 
                        by reliable, accurate data that is 
                        promptly produced and provided by 
                        Federal, State, or local government 
                        agencies;
                            ``(ii) a clear causal relationship 
                        must exist between the measured 
                        exceedances of a national ambient air 
                        quality standard and the exceptional 
                        event to demonstrate that the 
                        exceptional event caused a specific air 
                        pollution concentration at a particular 
                        air quality monitoring location;
                            ``(iii) there is a public process 
                        for determining whether an event is 
                        exceptional; and
                            ``(iv) there are criteria and 
                        procedures for the Governor of a State 
                        to petition the Administrator to 
                        exclude air quality monitoring data 
                        that is directly due to exceptional 
                        events from use in determinations by 
                        the Administrator with respect to 
                        exceedances or violations of the 
                        national ambient air quality standards.
            ``(4) Interim provision.--Until the effective date 
        of a regulation promulgated under paragraph (2), the 
        following guidance issued by the Administrator shall 
        continue to apply:
                    ``(A) Guidance on the identification and 
                use of air quality data affected by exceptional 
                events (July 1986).
                    ``(B) Areas affected by PM-10 natural 
                events, May 30, 1996.
                    ``(C) Appendices I, K, and N to part 50 of 
                title 40, Code of Federal Regulations.''.

SEC. 6014. FEDERAL PROCUREMENT OF RECYCLED COOLANT.

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

SEC. 6015. CLEAN SCHOOL BUS PROGRAM.

    (a) Definitions.--In this section, the following 
definitions apply:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Alternative fuel.--The term ``alternative 
        fuel'' means--
                    (A) liquefied natural gas, compressed 
                natural gas, liquefied petroleum gas, hydrogen, 
                or propane;
                    (B) methanol or ethanol at no less than 85 
                percent by volume; or
                    (C) biodiesel conforming with standards 
                published by the American Society for Testing 
                and Materials as of the date of enactment of 
                this Act.
            (3) Clean school bus.--The term ``clean school 
        bus'' means a school bus with a gross vehicle weight of 
        greater than 14,000 pounds that--
                    (A) is powered by a heavy duty engine; and
                    (B) is operated solely on an alternative 
                fuel or ultra-low sulfur diesel fuel.
            (4) Eligible recipient.--
                    (A) In general.--Subject to subparagraph 
                (B), the term ``eligible recipient'' means--
                            (i) one or more local or State 
                        governmental entities responsible for 
                        providing school bus service to one or 
                        more public school systems or the 
                        purchase of school buses;
                            (ii) one or more contracting 
                        entities that provide school bus 
                        service to one or more public school 
                        systems; or
                            (iii) a nonprofit school 
                        transportation association.
                    (B) Special requirements.--In the case of 
                eligible recipients identified under clauses 
                (ii) and (iii) of subparagraph (A), the 
                Administrator shall establish timely and 
                appropriate requirements for notice and may 
                establish timely and appropriate requirements 
                for approval by the public school systems that 
                would be served by buses purchased or retrofit 
                using grant funds made available under this 
                section.
            (5) Retrofit technology.--The term ``retrofit 
        technology'' means a particulate filter or other 
        emissions control equipment that is verified or 
        certified by the Administrator or the California Air 
        Resources Board as an effective emission reduction 
        technology when installed on an existing school bus.
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
            (7) Ultra-low sulfur diesel fuel.--The term 
        ``ultra-low sulfur diesel fuel'' means diesel fuel that 
        contains sulfur at not more than 15 parts per million.
    (b) Program for Retrofit or Replacement of Certain Existing 
School Buses With Clean School Buses.--
            (1) Establishment.--
                    (A) In general.--The Administrator, in 
                consultation with the Secretary and other 
                appropriate Federal departments and agencies, 
                shall establish a program for awarding grants 
                on a competitive basis to eligible recipients 
                for the replacement of, retrofit (including 
                repowering, aftertreatment, and remanufactured 
                engines) of, or purchase of alternative fuels 
                for, certain existing school buses. The 
                awarding of grants for the purchase of 
                alternative fuels should be consistent with the 
                historic funding levels of the program for such 
                purchase.
                    (B) Balancing.--In awarding grants under 
                this section, the Administrator shall achieve, 
                to the maximum extent practicable, achieve an 
                appropriate balance between awarding grants--
                            (i) to replace school buses;
                            (ii) to install retrofit 
                        technologies; and
                            (iii) to purchase and use 
                        alternative fuel.
            (2) Priority of grant applications.--
                    (A) Replacement.--In the case of grant 
                applications to replace school buses, the 
                Administrator shall give priority to applicants 
                that propose to replace school buses 
                manufactured before model year 1977.
                    (B) Retrofitting.--In the case of grant 
                applications to retrofit school buses, the 
                Administrator shall give priority to applicants 
                that propose to retrofit school buses 
                manufactured in or after model year 1991.
            (3) Use of school bus fleet.--
                    (A) In general.--All school buses acquired 
                or retrofitted with funds provided under this 
                section shall be operated as part of the school 
                bus fleet for which the grant was made for not 
                less than 5 years.
                    (B) Maintenance, operation, and fueling.--
                New school buses and retrofit technology shall 
                be maintained, operated, and fueled according 
                to manufacturer recommendations or State 
                requirements.
            (4) Retrofit grants.--The Administrator may award 
        grants under this section for up to 100 percent of the 
        retrofit technologies and installation costs.
            (5) Replacement grants.--
                    (A) Eligibility for 50 percent grants.--The 
                Administrator may award grants under this 
                section for replacement of school buses in the 
                amount of up to \1/2\ of the acquisition costs 
                (including fueling infrastructure) for--
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 
                        that emit not more than--
                                    (I) 1.8 grams per brake 
                                horsepower-hour of non-methane 
                                hydrocarbons and oxides of 
                                nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate 
                                matter; or
                            (ii) clean school buses with 
                        engines manufactured in model year 
                        2007, 2008, or 2009 that satisfy 
                        regulatory requirements established by 
                        the Administrator for emissions of 
                        oxides of nitrogen and particulate 
                        matter to be applicable for school 
                        buses manufactured in model year 2010.
                    (B) Eligibility for 25 percent grants.--The 
                Administrator may award grants under this 
                section for replacement of school buses in the 
                amount of up to \1/4\ of the acquisition costs 
                (including fueling infrastructure) for--
                            (i) clean school buses with engines 
                        manufactured in model year 2005 or 2006 
                        that emit not more than--
                                    (I) 2.5 grams per brake 
                                horsepower-hour of non-methane 
                                hydrocarbons and oxides of 
                                nitrogen; and
                                    (II) .01 grams per brake 
                                horsepower-hour of particulate 
                                matter; or
                            (ii) clean school buses with 
                        engines manufactured in model year 2007 
                        or thereafter that satisfy regulatory 
                        requirements established by the 
                        Administrator for emissions of oxides 
                        of nitrogen and particulate matter from 
                        school buses manufactured in that model 
                        year.
            (6) Ultra-low sulfur diesel fuel.--
                    (A) In general.--In the case of a grant 
                recipient receiving a grant for the acquisition 
                of ultra-low sulfur diesel fuel school buses 
                with engines manufactured in model year 2005 or 
                2006, the grant recipient shall provide, to the 
                satisfaction of the Administrator--
                            (i) documentation that diesel fuel 
                        containing sulfur at not more than 15 
                        parts per million is available for 
                        carrying out the purposes of the grant; 
                        and
                            (ii) a commitment by the applicant 
                        to use that fuel in carrying out the 
                        purposes of the grant.
            (7) Deployment and distribution.--The 
        Administrator, to the maximum extent practicable, 
        shall--
                    (A) achieve nationwide deployment of clean 
                school buses through the program under this 
                section; and
                    (B) ensure a broad geographic distribution 
                of grant awards, with no State receiving more 
                than 10 percent of the grant funding made 
                available under this section during a fiscal 
                year.
            (8) Annual report.--
                    (A) In general.--Not later than January 31 
                of each year, the Administrator shall submit to 
                Congress a report that--
                            (i) evaluates the implementation of 
                        this section; and
                            (ii) describes--
                                    (I) the total number of 
                                grant applications received;
                                    (II) the number and types 
                                of alternative fuel school 
                                buses, ultra-low sulfur diesel 
                                fuel school buses, and 
                                retrofitted buses requested in 
                                grant applications;
                                    (III) grants awarded and 
                                the criteria used to select the 
                                grant recipients;
                                    (IV) certified engine 
                                emission levels of all buses 
                                purchased or retrofitted under 
                                this section;
                                    (V) an evaluation of the 
                                in-use emission level of buses 
                                purchased or retrofitted under 
                                this section; and
                                    (VI) any other information 
                                the Administrator considers 
                                appropriate.
    (c) Education.--
            (1) In general.--Not later than 90 days after the 
        date of enactment of this Act, the Administrator shall 
        develop an education outreach program to promote and 
        explain the grant program.
            (2) Coordination with stakeholders.--The outreach 
        program shall be designed and conducted in conjunction 
        with national school bus transportation associations 
        and other stakeholders.
            (3) Components.--The outreach program shall--
                    (A) inform potential grant recipients on 
                the process of applying for grants;
                    (B) describe the available technologies and 
                the benefits of the technologies;
                    (C) explain the benefits of participating 
                in the grant program; and
                    (D) include, as appropriate, information 
                from the annual report required under 
                subsection (b)(8).
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to the Administrator to carry out this 
section, to remain available until expended--
            (1) $55,000,000 for each of fiscal years 2006 and 
        2007; and
            (2) such sums as are necessary for each of fiscal 
        years 2008, 2009, and 2010.

SEC. 6016. SPECIAL DESIGNATION.

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

SEC. 6017. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
                    FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
                    CONCRETE.

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

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

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

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

SEC. 6018. USE OF GRANULAR MINE TAILINGS.

    (a) In General.--Subtitle F of the Solid Waste Disposal Act 
(42 U.S.C. 6961 et seq.) (as amended by section 6017(a)) is 
amended by adding at the end the following:

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

    ``(a) Mine Tailings.--
            ``(1) In general.--Not later than 180 days after 
        the date of enactment of this section, the 
        Administrator, in consultation with the Secretary of 
        Transportation and heads of other Federal agencies, 
        shall establish criteria (including an evaluation of 
        whether to establish a numerical standard for 
        concentration of lead and other hazardous substances) 
        for the safe and environmentally protective use of 
        granular mine tailings from the Tar Creek, Oklahoma 
        Mining District, known as `chat', for--
                    ``(A) cement or concrete projects; and
                    ``(B) transportation construction projects 
                (including transportation construction projects 
                involving the use of asphalt) that are carried 
                out, in whole or in part, using Federal funds.
            ``(2) Requirements.--In establishing criteria under 
        paragraph (1), the Administrator shall consider--
                    ``(A) the current and previous uses of 
                granular mine tailings as an aggregate for 
                asphalt; and
                    ``(B) any environmental and public health 
                risks and benefits derived from the removal, 
                transportation, and use in transportation 
                projects of granular mine tailings.
            ``(3) Public participation.--In establishing the 
        criteria under paragraph (1), the Administrator shall 
        solicit and consider comments from the public.
            ``(4) Applicability of criteria.--On the 
        establishment of the criteria under paragraph (1), any 
        use of the granular mine tailings described in 
        paragraph (1) in a transportation project that is 
        carried out, in whole or in part, using Federal funds, 
        shall meet the criteria established under paragraph 
        (1).
    ``(b) Effect of Sections.--Nothing in this section or 
section 6005 affects any requirement of any law (including a 
regulation) in effect on the date of enactment of this 
section.''.
    (b) Conforming Amendment.--The table of contents in section 
1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 6901) (as 
amended by section 6017(b)) is amended by adding after the item 
relating to section 6005 the following:

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

             TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION

SEC. 7001. SHORT TITLE.

    This title may be cited as the ``Hazardous Materials 
Transportation Safety and Security Reauthorization Act of 
2005''.

SEC. 7002. AMENDMENT OF TITLE 49, UNITED STATES CODE.

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

    Subtitle A--General Authorities on Transportation of Hazardous 
                               Materials

SEC. 7101. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds with respect to hazardous 
materials transportation that--
            (1) approximately 4,000,000,000 tons of regulated 
        hazardous materials are transported each year and 
        approximately 1,200,000 movements of hazardous 
        materials occur each day, according to Department of 
        Transportation estimates;
            (2) the movement of hazardous materials in commerce 
        is necessary to maintain economic vitality and meet 
        consumer demands and must be conducted in a safe, 
        secure, and efficient manner;
            (3) accidents involving, or unauthorized access to, 
        hazardous materials in transportation may result in a 
        release of such materials and pose a serious threat to 
        public health and safety;
            (4) because of the potential risks to life, 
        property, and the environment posed by unintentional 
        releases of hazardous materials, consistency in laws 
        and regulations governing the transportation of 
        hazardous materials is necessary and desirable; and
            (5) in order to provide reasonable, adequate, and 
        cost-effective protection from the risks posed by the 
        transportation of hazardous materials, a network of 
        well-trained State and local emergency response 
        personnel and hazmat employees is essential.
    (b) Purpose.--Section 5101 is amended by striking ``The 
purpose'' and all that follows through the period at the end 
and inserting the following: ``The purpose of this chapter is 
to protect against the risks to life, property, and the 
environment that are inherent in the transportation of 
hazardous material in intrastate, interstate, and foreign 
commerce.''.

SEC. 7102. DEFINITIONS.

    Section 5102 is amended as follows:
            (1) Commerce.--Paragraph (1) is amended--
                    (A) by striking ``or'' after the semicolon 
                in subparagraph (A);
                    (B) by striking ``State.'' in subparagraph 
                (B) and inserting ``State; or''; and
                    (C) by adding at the end the following:
                    ``(C) on a United States-registered 
                aircraft.''.
            (2) Hazmat employee.--Paragraph (3)(A) is amended--
                    (A) by striking clause (i) and inserting 
                the following:
                            ``(i) who--
                                    ``(I) is employed on a full 
                                time, part time, or temporary 
                                basis by a hazmat employer; or
                                    ``(II) is self-employed 
                                (including an owner-operator of 
                                a motor vehicle, vessel, or 
                                aircraft) transporting 
                                hazardous material in commerce; 
                                and'';
                    (B) in clause (ii)--
                            (i) by striking ``course of 
                        employment'' and inserting ``course of 
                        such full time, part time, or temporary 
                        employment, or such self employment,''; 
                        and
                            (ii) by adding ``and'' after the 
                        semicolon;
                    (C) by striking subparagraph (B) and 
                redesignating subparagraph (C) as subparagraph 
                (B); and
                    (D) in subparagraph (B), as so 
                redesignated--
                            (i) by striking ``employed by a 
                        hazmat employer,'' and inserting 
                        ``employed on a full time, part time, 
                        or temporary basis by a hazmat 
                        employer, or self employed,''; and
                            (ii) by striking clause (ii) and 
                        inserting the following:
                            ``(ii) designs, manufactures, 
                        fabricates, inspects, marks, maintains, 
                        reconditions, repairs, or tests a 
                        package, container, or packaging 
                        component that is represented, marked, 
                        certified, or sold as qualified for use 
                        in transporting hazardous material in 
                        commerce;''.
            (3) Hazmat employer.--Paragraph (4) is amended to 
        read as follows:
            ``(4) `hazmat employer'--
                    ``(A) means a person--
                            ``(i) who--
                                    ``(I) employs or uses at 
                                least 1 hazmat employee on a 
                                full time, part time, or 
                                temporary basis; or
                                    ``(II) is self-employed 
                                (including an owner-operator of 
                                a motor vehicle, vessel, or 
                                aircraft) transporting 
                                hazardous material in commerce; 
                                and
                            ``(ii) who--
                                    ``(I) transports hazardous 
                                material in commerce;
                                    ``(II) causes hazardous 
                                material to be transported in 
                                commerce; or
                                    ``(III) designs, 
                                manufactures, fabricates, 
                                inspects, marks, maintains, 
                                reconditions, repairs, or tests 
                                a package, container, or 
                                packaging component that is 
                                represented, marked, certified, 
                                or sold as qualified for use in 
                                transporting hazardous material 
                                in commerce; and
                    ``(B) includes a department, agency, or 
                instrumentality of the United States 
                Government, or an authority of a State, 
                political subdivision of a State, or Indian 
                tribe, carrying out an activity described in 
                clause (ii).''.
            (4) Imminent hazard.--Paragraph (5) is amended by 
        inserting ``relating to hazardous material'' after ``of 
        a condition''.
            (5) Motor carrier.--Paragraph (7) is amended to 
        read as follows:
            ``(7) `motor carrier'--
                    ``(A) means a motor carrier, motor private 
                carrier, and freight forwarder as those terms 
                are defined in section 13102; but
                    ``(B) does not include a freight forwarder, 
                as so defined, if the freight forwarder is not 
                performing a function relating to highway 
                transportation.''.
            (6) National response team.--Paragraph (8) is 
        amended--
                    (A) by striking ``national response team'' 
                both places it appears and inserting ``National 
                Response Team''; and
                    (B) by striking ``national contingency 
                plan'' and inserting ``National Contingency 
                Plan''.
            (7) Person.--Paragraph (9)(A) is amended to read as 
        follows:
                    ``(A) includes a government, Indian tribe, 
                or authority of a government or tribe that--
                            ``(i) offers hazardous material for 
                        transportation in commerce;
                            ``(ii) transports hazardous 
                        material to further a commercial 
                        enterprise; or
                            ``(iii) designs, manufactures, 
                        fabricates, inspects, marks, maintains, 
                        reconditions, repairs, or tests a 
                        package, container, or packaging 
                        component that is represented, marked, 
                        certified, or sold as qualified for use 
                        in transporting hazardous material in 
                        commerce; but''.
            (8) Secretary of transportation.--Section 5102 is 
        further amended--
                    (A) by redesignating paragraphs (11), (12), 
                and (13) as paragraphs (12), (13), and (14), 
                respectively; and
                    (B) by inserting after paragraph (10) the 
                following:
            ``(11) `Secretary' means the Secretary of 
        Transportation except as otherwise provided.''.

SEC. 7103. GENERAL REGULATORY AUTHORITY.

    (a) Designating Material as Hazardous.--Section 5103(a) is 
amended--
            (1) by striking ``etiologic agent'' and all that 
        follows through ``corrosive material,'' and inserting 
        ``infectious substance, flammable or combustible 
        liquid, solid, or gas, toxic, oxidizing, or corrosive 
        material,''; and
            (2) by striking ``decides'' and inserting 
        ``determines''.
    (b) Regulations for Safe Transportation.--Section 
5103(b)(1)(A) is amended to read as follows:
                    ``(A) apply to a person who--
                            ``(i) transports hazardous material 
                        in commerce;
                            ``(ii) causes hazardous material to 
                        be transported in commerce;
                            ``(iii) designs, manufactures, 
                        fabricates, inspects, marks, maintains, 
                        reconditions, repairs, or tests a 
                        package, container, or packaging 
                        component that is represented, marked, 
                        certified, or sold as qualified for use 
                        in transporting hazardous material in 
                        commerce;
                            ``(iv) prepares or accepts 
                        hazardous material for transportation 
                        in commerce;
                            ``(v) is responsible for the safety 
                        of transporting hazardous material in 
                        commerce;
                            ``(vi) certifies compliance with 
                        any requirement under this chapter; or
                            ``(vii) misrepresents whether such 
                        person is engaged in any activity under 
                        clause (i) through (vi); and''.
    (c) Technical Amendment Regarding Consultation.--Section 
5103 is amended--
            (1) by striking subsection (b)(1)(C); and
            (2) by adding at the end the following:
    ``(c) Consultation.--When prescribing a security regulation 
or issuing a security order that affects the safety of the 
transportation of hazardous material, the Secretary of Homeland 
Security shall consult with the Secretary of Transportation.''.

SEC. 7104. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.

    (a) Covered Hazardous Materials.--Section 5103a(b) is 
amended by striking ``with respect to--'' and all that follows 
and inserting ``with respect to any material defined as 
hazardous material by the Secretary for which the Secretary 
requires placarding of a commercial motor vehicle transporting 
that material in commerce.''.
    (b) Recommendations on Chemical or Biological Materials.--
Section 5103a is further amended--
            (1) by redesignating subsections (c), (d), and (e) 
        as subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the 
        following:
    ``(c) Recommendations on Chemical and Biological 
Materials.--The Secretary of Health and Human Services shall 
recommend to the Secretary of Transportation any chemical or 
biological material or agent for regulation as a hazardous 
material under section 5103(a) if the Secretary of Health and 
Human Services determines that such material or agent poses a 
significant risk to the health of individuals.''.
    (c) Conforming Amendment.--Section 5103a(a)(1) is amended 
by striking ``subsection (c)(1)(B),'' and inserting 
``subsection (d)(1)(B),''.

SEC. 7105. BACKGROUND CHECKS FOR DRIVERS HAULING HAZARDOUS MATERIALS.

    Section 5103a is further amended by adding at the end the 
following:
    ``(g) Background Checks for Drivers Hauling Hazardous 
Materials.--
            ``(1) In general.--
                    ``(A) Employer notification.--Not later 
                than 90 days after the date of enactment of 
                this subsection, the Director of the 
                Transportation Security Administration, after 
                receiving comments from interested parties, 
                shall develop and implement a process for 
                notifying hazmat employers designated by an 
                applicant of the results of the applicant's 
                background record check, if--
                            ``(i) such notification is 
                        appropriate considering the potential 
                        security implications; and
                            ``(ii) the Director, in a final 
                        notification of threat assessment, 
                        served on the applicant determines that 
                        the applicant does not meet the 
                        standards set forth in regulations 
                        issued to carry out this section.
                    ``(B) Relationship to other background 
                records checks.--
                            ``(i) Elimination of redundant 
                        checks.--An individual with respect to 
                        whom the Transportation Security 
                        Administration--
                                    ``(I) has performed a 
                                security threat assessment 
                                under this section; and
                                    ``(II) has issued a final 
                                notification of no security 
                                threat,
                         is deemed to have met the requirements 
                        of any other background check that is 
                        required for purposes of any Federal 
                        law applicable to transportation 
                        workers if that background check is 
                        equivalent to, or less stringent than, 
                        the background check required under 
                        this section.
                            ``(ii) Determination by director.--
                        Not later than 60 days after the date 
                        of issuance of the report under 
                        paragraph (5), but no later than 120 
                        days after the date of enactment of 
                        this Act, the Director shall initiate a 
                        rulemaking proceeding, including notice 
                        and opportunity for comment, to 
                        determine which background checks 
                        required for purposes of Federal laws 
                        applicable to transportation workers 
                        are equivalent to, or less stringent 
                        than, those required under this 
                        section.
                            ``(iii) Future rulemakings.--The 
                        Director shall make a determination 
                        under the criteria established under 
                        clause (ii) with respect to any 
                        rulemaking proceeding to establish or 
                        modify required background checks for 
                        transportation workers initiated after 
                        the date of enactment of this 
                        subsection.
            ``(2) Appeals process for more stringent state 
        procedures.--If a State establishes its own standards 
        for applicants for a hazardous materials endorsement to 
        a commercial driver's license, the State shall also 
        provide--
                    ``(A) an appeals process similar to and to 
                the same extent as the process provided under 
                part 1572 of title 49, Code of Federal 
                Regulations, by which an applicant denied a 
                hazardous materials endorsement to a commercial 
                driver's license by that State may appeal that 
                denial; and
                    ``(B) a waiver process similar to and to 
                the same extent as the process provided under 
                part 1572 of title 49, Code of Federal 
                Regulations, by which an applicant denied a 
                hazardous materials endorsement to a commercial 
                driver's license by that State may apply for a 
                waiver.
            ``(3) Clarification of term defined in 
        regulations.--The term `transportation security 
        incident', as defined in part 1572 of title 49, Code of 
        Federal Regulations, does not include a work stoppage 
        or other nonviolent employee-related action resulting 
        from an employer-employee dispute. Not later than 30 
        days after the date of enactment of this subsection, 
        the Director shall modify the definition of that term 
        to reflect the preceding sentence.
            ``(4) Background check capacity.--Not later than 
        October 1, 2005, the Director shall transmit to the 
        Committee on Commerce, Science, and Transportation of 
        the Senate and the Committees on Transportation and 
        Infrastructure and Homeland Security of the House of 
        Representatives a report on the implementation of 
        fingerprint-based security threat assessments and the 
        adequacy of fingerprinting locations, personnel, and 
        resources to accomplish the timely processing of 
        fingerprint-based security threat assessments for 
        individuals holding commercial driver's licenses who 
        are applying to renew hazardous materials endorsements.
            ``(5) Report.--
                    ``(A) In general.--Not later than 60 days 
                after the date of enactment of this subsection, 
                the Director shall transmit to the committees 
                referred to in paragraph (4) a report on the 
                Director's plans to reduce or eliminate 
                redundant background checks for holders of 
                hazardous materials endorsements performed 
                under this section.
                    ``(B) Contents.--The report shall--
                            ``(i) include a list of background 
                        checks and other security or threat 
                        assessment requirements applicable to 
                        transportation workers under Federal 
                        laws for which the Department of 
                        Homeland Security is responsible and 
                        the process by which the Secretary of 
                        Homeland Security will determine 
                        whether such checks or assessments are 
                        equivalent to, or less stringent than, 
                        the background check performed under 
                        this section; and
                            ``(ii) provide an analysis of how 
                        the Director plans to reduce or 
                        eliminate redundant background checks 
                        in a manner that will continue to 
                        ensure the highest level of safety and 
                        security.
    ``(h) Commercial Motor Vehicle Operators Registered To 
Operate in Mexico or Canada.--
            ``(1) In general.--Beginning on the date that is 6 
        months after the date of enactment of this subsection, 
        a commercial motor vehicle operator registered to 
        operate in Mexico or Canada shall not operate a 
        commercial motor vehicle transporting a hazardous 
        material in commerce in the United States until the 
        operator has undergone a background records check 
        similar to the background records check required for 
        commercial motor vehicle operators licensed in the 
        United States to transport hazardous materials in 
        commerce.
            ``(2) Extension.--The Director of the 
        Transportation Security Administration may extend the 
        deadline established by paragraph (1) for a period not 
        to exceed 6 months if the Director determines that such 
        an extension is necessary.
            ``(3) Commercial motor vehicle defined.--In this 
        subsection, the term `commercial motor vehicle' has the 
        meaning given that term by section 31101.''.

SEC. 7106. REPRESENTATION AND TAMPERING.

    (a) Representation.--Section 5104(a)(1) is amended--
            (1) by striking ``a container,'' and all that 
        follows through ``packaging) for'' and inserting ``a 
        package, component of a package, or packaging for''; 
        and
            (2) by striking ``the container'' and all that 
        follows through ``packaging) meets'' and inserting 
        ``the package, component of a package, or packaging 
        meets''.
    (b) Tampering.--Section 5104(b) is amended--
            (1) by striking ``A person may not'' and inserting 
        ``No person may''; and
            (2) in paragraph (2) by inserting ``component of a 
        package, or packaging,'' after ``package,''.

SEC. 7107. TECHNICAL AMENDMENTS.

    Section 5105 is amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsection (e) as subsection 
        (d).

SEC. 7108. TRAINING OF CERTAIN EMPLOYEES.

    Section 5107 is amended--
            (1) by striking subsection (e) and inserting the 
        following:
    ``(e) Training Grants.--
            ``(1) In general.--Subject to the availability of 
        funds under section 5128(c), the Secretary shall make 
        grants under this subsection--
                    ``(A) for training instructors to train 
                hazmat employees; and
                    ``(B) to the extent determined appropriate 
                by the Secretary, for such instructors to train 
                hazmat employees.
            ``(2) Eligibility.--A grant under this subsection 
        shall be made to a nonprofit hazmat employee 
        organization that demonstrates--
                    ``(A) expertise in conducting a training 
                program for hazmat employees; and
                    ``(B) the ability to reach and involve in a 
                training program a target population of hazmat 
                employees.'';
            (2) by redesignating subsections (f) and (g) as 
        subsections (g) and (h), respectively;
            (3) by inserting after subsection (e) the 
        following:
    ``(f) Training of Certain Employees.--The Secretary shall 
ensure that maintenance-of-way employees and railroad signalmen 
receive general awareness and familiarization training and 
safety training pursuant to section 172.704 of title 49, Code 
of Federal Regulations.''; and
            (4) in subsection (g)(2) (as redesignated by 
        paragraph (2) of this subsection) by striking 
        ``sections 5106, 5108(a)-(g)(1) and (h), and 5109 of 
        this title'' and inserting ``section 5106''.

SEC. 7109. REGISTRATION.

    (a) Persons Required To File.--
            (1) Requirement to file.--Section 5108(a)(1)(B) is 
        amended by striking ``class A or B explosive'' and 
        inserting ``Division 1.1, 1.2, or 1.3 explosive 
        material''.
            (2) Authority to require to file.--Section 
        5108(a)(2)(B) is amended to read as follows:
            ``(B) a person designing, manufacturing, 
        fabricating, inspecting, marking, maintaining, 
        reconditioning, repairing, or testing a package, 
        container, or packaging component that is represented, 
        marked, certified, or sold as qualified for use in 
        transporting hazardous material in commerce.''.
            (3) No transportation without filing.--Section 
        5108(a)(3) is amended by striking ``manufacture,'' and 
        all that follows through ``package or'' and inserting 
        ``design, manufacture, fabricate, inspect, mark, 
        maintain, recondition, repair, or test a package, 
        container packaging component, or''.
    (b) Form and Content of Filings.--Section 5108(b)(1)(C) is 
amended by striking ``the activity.'' and inserting ``any of 
the activities.''.
    (c) Filing.--Section 5108(c) is amended to read as follows:
    ``(c) Filing.--Each person required to file a registration 
statement under subsection (a) shall file the statement in 
accordance with regulations prescribed by the Secretary.''.
    (d) Registration.--As soon as practicable, the 
Administrator of the Pipeline and Hazardous Materials Safety 
Administration shall transmit to the Federal Motor Carrier 
Safety Administration hazardous material registrant information 
obtained before, on, or after the date of enactment of this Act 
under section 5108 of title 49, United States Code, together 
with any Department of Transportation identification number for 
each registrant.
    (e) Relationship to Other Laws.--Section 5108(i)(2)(B) is 
amended by inserting ``an Indian tribe,'' after ``subdivision 
of a State,''.
    (f) Fees.--Section 5108(g) is amended--
            (1) in paragraph (1) by striking ``may'' and 
        inserting ``shall'';
            (2) in paragraph (2)(A) by striking ``$5,000'' and 
        inserting ``$3,000''; and
            (3) by adding at the end the following:
            ``(3) Fees on exempt persons.--Notwithstanding 
        subsection (a)(4), the Secretary shall impose and 
        collect a fee of $25 from a person who is required to 
        register under this section but who is otherwise 
        exempted by the Secretary from paying any fee under 
        this section. The fee shall be used to pay the costs 
        incurred by the Secretary in processing registration 
        statements filed by such persons.''.

SEC. 7110. SHIPPING PAPERS AND DISCLOSURE.

    (a) Disclosure Considerations and Requirements.--Section 
5110 is amended--
            (1) by striking ``under subsection (b) of this 
        section.'' in subsection (a) and inserting ``in 
        regulations.'';
            (2) by striking subsection (b); and
            (3) by redesignating subsections (c), (d), and (e) 
        as subsections (b), (c), and (d), respectively.
    (b) Retention of Papers.--Subsection (d) of section 5110, 
as redesignated by subsection (a)(3) of this section, is 
amended to read as follows:
    ``(d) Retention of Papers.--
            ``(1) Shippers.--The person who provides the 
        shipping paper under this section shall retain the 
        paper, or an electronic format of it, for a period of 2 
        years after the date that the shipping paper is 
        provided to the carrier, with the paper or electronic 
        format to be accessible through the shipper's principal 
        place of business.
            ``(2) Carriers.--The carrier required to keep the 
        shipping paper under this section, shall retain the 
        paper, or an electronic format of it, for a period of 1 
        year after the date that the shipping paper is provided 
        to the carrier, with the paper or electronic format to 
        be accessible through the carrier's principal place of 
        business.
            ``(3) Availability to government agencies.--Any 
        person required to keep a shipping paper under this 
        subsection shall, upon request, make it available to a 
        Federal, State, or local government agency at 
        reasonable times and locations.''.

SEC. 7111. RAIL TANK CARS.

    Section 5111, and the item relating to section 5111 in the 
analyis for chapter 51, are repealed.

SEC. 7112. UNSATISFACTORY SAFETY RATINGS.

    (a) In General.--The text of section 5113 is amended to 
read as follows: ``A violation of section 31144(c)(3) shall be 
considered a violation of this chapter, and shall be subject to 
the penalties in sections 5123 and 5124.''.
    (b) Conforming Amendments.--The first subsection (c) of 
section 31144, relating to prohibited transportation, is 
amended--
            (1) in paragraph (1) by striking ``sections 
        521(b)(5)(A) and 5113'' and inserting ``section 
        521(b)(5)(A)''; and
            (2) by adding at the end of paragraph (3) the 
        following: ``A violation of this paragraph by an owner 
        or operator transporting hazardous material shall be 
        considered a violation of chapter 51, and shall be 
        subject to the penalties in sections 5123 and 5124.''.
    (c) Technical Correction.--The second subsection (c) of 
section 31144, relating to safety reviews of new operators, is 
redesignated as subsection (f).

SEC. 7113. TRAINING CURRICULUM FOR THE PUBLIC SECTOR.

    (a) In General.--Section 5115(a) is amended by striking the 
subsection designation and all that follows through the period 
at the end of the first sentence and inserting the following:
    ``(a) In General.--In coordination with the Director of the 
Federal Emergency Management Agency, the Chairman of the 
Nuclear Regulatory Commission, the Administrator of the 
Environmental Protection Agency, the Secretaries of Labor, 
Energy, and Health and Human Services, and the Director of the 
National Institute of Environmental Health Sciences, and using 
existing coordinating mechanisms of the National Response Team 
and, for radioactive material, the Federal Radiological 
Preparedness Coordinating Committee, the Secretary of 
Transportation shall maintain, and update periodically, a 
current curriculum of courses necessary to train public sector 
emergency response and preparedness teams in matters relating 
to the transportation of hazardous material.''.
    (b) Requirements.--Section 5115(b) is amended--
            (1) in the matter preceding paragraph (1) by 
        striking ``developed'' and inserting ``maintained and 
        updated''; and
            (2) in paragraph (1)(C) by striking ``under other 
        United States Government grant programs, including 
        those'' and inserting ``with Federal financial 
        assistance, including programs''.
    (c) Training on Complying With Legal Requirements.--Section 
5115(c)(3) is amended by inserting before the period at the end 
the following: ``and such other voluntary consensus standard-
setting organizations as the Secretary of Transportation 
determines appropriate''.
    (d) Distribution and Publication.--Section 5115(d) is 
amended--
            (1) in the matter preceding paragraph (1) by 
        striking ``national response team'' and inserting 
        ``National Response Team'';
            (2) in paragraph (1) by striking ``Director of the 
        Federal Emergency Management Agency'' and inserting 
        ``Secretary''; and
            (3) in paragraph (2)--
                    (A) by inserting ``and distribute'' after 
                ``publish''; and
                    (B) by striking ``programs that uses'' and 
                all that follows before the period at the end 
                and inserting ``programs and courses maintained 
                and updated under this section and of any 
                programs utilizing such courses''.

SEC. 7114. PLANNING AND TRAINING GRANTS; HAZARDOUS MATERIALS EMERGENCY 
                    PREPAREDNESS FUND.

    (a) Maintenance of Effort.--Sections 5116(a)(2)(A) and 
5116(b)(2)(A) are amended by striking ``2 fiscal years'' and 
inserting ``5 fiscal years''.
    (b) Monitoring and Technical Assistance.--Section 5116(f) 
is amended by striking ``national response team'' and inserting 
``National Response Team''.
    (c) Delegation of Authority.--Section 5116(g) is amended by 
striking ``Government grant programs'' and inserting ``Federal 
financial assistance''.
    (d) Hazardous Materials Emergency Preparedness Fund.--
            (1) Name of fund.--Section 5116(i) is amended by 
        inserting after ``an account in the Treasury'' the 
        following: ``(to be known as the `Hazardous Materials 
        Emergency Preparedness Fund')''.
            (2) Publication of emergency response guide.--
        Section 5116(i) is further amended--
                    (A) by striking ``collects under section 
                5108(g)(2)(A) of this title and'';
                    (B) by striking ``and'' after the semicolon 
                in paragraph (2);
                    (C) by redesignating paragraph (3) as 
                paragraph (4);
                    (D) by inserting after paragraph (2) the 
                following:
            ``(3) to publish and distribute an emergency 
        response guide; and''; and
                    (E) in paragraph (4) (as redesignated by 
                subparagraph (C) of this paragraph) by striking 
                ``10 percent'' and inserting ``2 percent''.
            (3) Conforming amendment.--Section 5108(g)(2)(C) is 
        amended by striking ``the account the Secretary of the 
        Treasury establishes'' and inserting ``the Hazardous 
        Materials Emergency Preparedness Fund established''.
    (e) Reports.--Section 5116(k) is amended--
            (1) by striking the first sentence and inserting 
        the following: ``The Secretary shall submit annually to 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives and the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        make available to the public information on the 
        allocation and uses of the planning grants allocated 
        under subsection (a), training grants under subsection 
        (b), and grants under subsection (j) of this section 
        and under section 5107.''; and
            (2) by striking ``Such report'' in the second 
        sentence and inserting ``The report''.

SEC. 7115. SPECIAL PERMITS AND EXCLUSIONS.

    (a) Section Heading.--
            (1) In general.--Section 5117 is amended by 
        striking the section designation and heading and 
        inserting the following:

``Sec. 5117. Special permits and exclusions''.

            (2) Conforming amendment.--The item relating to 
        section 5117 in the analysis for chapter 51 is amended 
        to read as follows:

``5117. Special permits and exclusions.''.

    (b) Subsection Heading.--The heading for subsection (a) of 
section 5117 is amended by striking ``Exempt'' and inserting 
``Issue Special Permits''.
    (c) Authority to Issue Special Permits.--Section 5117(a)(1) 
is amended--
            (1) by striking ``an exemption'' and inserting ``, 
        modify, or terminate a special permit authorizing a 
        variance''; and
            (2) by striking ``transporting, or causing to be 
        transported, hazardous material'' and inserting 
        ``performing a function regulated by the Secretary 
        under section 5103(b)(1)''.
    (d) Period of Special Permit.--Section 5117(a)(2) is 
amended to read as follows:
    ``(2) A special permit issued under this section shall be 
effective for an initial period of not more than 2 years and 
may be renewed by the Secretary upon application for successive 
periods of not more than 4 years each or, in the case of a 
special permit relating to section 5112, for an additional 
period of not more than 2 years.''.
    (e) Applications.--Sections 5117(b) is amended--
            (1) by striking ``an exemption'' each place it 
        appears and inserting ``a special permit''; and
            (2) by striking ``the exemption'' and inserting 
        ``the special permit''.
    (f) Dealing With Applications Promptly.--Section 5117(c) is 
amended by striking ``the exemption'' each place it appears and 
inserting ``the special permit''.
    (g) Limitation on Authority.--Section 5117(e) is amended--
            (1) by striking ``an exemption'' and inserting ``a 
        special permit''; and
            (2) by striking ``be exempt'' and inserting ``be 
        granted a variance''.
    (h) Repeal of Section 5118.--Section 5118, and the item 
relating to such section in the analysis for chapter 51, are 
repealed.

SEC. 7116. UNIFORM FORMS AND PROCEDURES.

    Section 5119 is amended to read as follows:

``Sec. 5119. Uniform forms and procedures

    ``(a) Establishment of Working Group.--The Secretary shall 
establish a working group of State and local government 
officials, including representatives of the National Governors' 
Association, the National Association of Counties, the National 
League of Cities, the United States Conference of Mayors, the 
National Conference of State Legislatures, and the Alliance for 
Uniform Hazmat Transportation Procedures.
    ``(b) Purpose of Working Group.--The purpose of the working 
group shall be to develop uniform forms and procedures for a 
State to register, and to issue permits to, persons that 
transport, or cause to be transported, hazardous material by 
motor vehicle in the State.
    ``(c) Limitation on Working Group.--The working group may 
not propose to define or limit the amount of a fee a State may 
impose or collect.
    ``(d) Procedure.--The Secretary shall develop a procedure 
for the working group to employ in developing recommendations 
for the Secretary to harmonize existing State registration and 
permit laws and regulations relating to the transportation of 
hazardous materials, with special attention paid to each 
State's unique safety concerns and interest in maintaining 
strong hazmat safety standards.
    ``(e) Report of Working Group.--Not later than 18 months 
after the date of enactment of this subsection, the working 
group shall transmit to the Secretary a report containing 
recommendations for establishing uniform forms and procedures 
described in subsection (b).
    ``(f) Regulations.--Not later than 18 months after the date 
the working group's report is delivered to the Secretary, the 
Secretary shall issue regulations to carry out such 
recommendations of the working group as the Secretary considers 
appropriate. In developing such regulations, the Secretary 
shall consider the State needs associated with the transition 
to and implementation of a uniform forms and procedures 
program.
    ``(g) Limitation on Statutory Construction.--Nothing in 
this section shall be construed as prohibiting a State from 
voluntarily participating in a program of uniform forms and 
procedures until such time as the Secretary issues regulations 
under subsection (f).''.

SEC. 7117. INTERNATIONAL UNIFORMITY OF STANDARDS AND REQUIREMENTS.

    (a) Consultation.--Section 5120(b) is amended by inserting 
``and requirements'' after ``standards''.
    (b) Differences With International Standards and 
Requirements.--Section 5120(c) is amended--
            (1) in paragraph (1) by inserting ``or 
        requirement'' after ``standard'' each place it appears; 
        and
            (2) in paragraph (2)--
                    (A) by inserting ``standard or'' before 
                ``requirement'' each place it appears; and
                    (B) by striking ``included in a standard''.

SEC. 7118. ADMINISTRATIVE AUTHORITY.

    (a) General Authority.--Section 5121(a) is amended--
            (1) in the first sentence by inserting ``conduct 
        tests,'' after ``investigate,'';
            (2) in the second sentence by striking ``After'' 
        and inserting ``Except as provided in subsections (c) 
        and (d), after''; and
            (3) by striking ``regulation prescribed'' and 
        inserting ``regulation prescribed, or an order, special 
        permit, or approval issued,''.
    (b) Records, Reports, and Information.--Section 5121(b) is 
amended--
            (1) in paragraph (1) by inserting ``and property'' 
        after ``records''; and
            (2) in paragraph (2)--
                    (A) by inserting ``property,'' after 
                ``records,'';
                    (B) by inserting ``for inspection'' after 
                ``available''; and
                    (C) by striking ``requests'' and inserting 
                ``undertakes an investigation or makes a 
                request''.
    (c) Enhanced Authority To Discover Hidden Shipments of 
Hazardous Material.--Section 5121(c) is amended to read as 
follows:
    ``(c) Inspections and Investigations.--
            ``(1) In general.--A designated officer, employee, 
        or agent of the Secretary--
                    ``(A) may inspect and investigate, at a 
                reasonable time and in a reasonable manner, 
                records and property relating to a function 
                described in section 5103(b)(1);
                    ``(B) except in the case of packaging 
                immediately adjacent to its hazardous material 
                contents, may gain access to, open, and examine 
                a package offered for, or in, transportation 
                when the officer, employee, or agent has an 
                objectively reasonable and articulable belief 
                that the package may contain a hazardous 
                material;
                    ``(C) may remove from transportation a 
                package or related packages in a shipment 
                offered for or in transportation for which--
                            ``(i) such officer, employee, or 
                        agent has an objectively reasonable and 
                        articulable belief that the package may 
                        pose an imminent hazard; and
                            ``(ii) such officer, employee, or 
                        agent contemporaneously documents such 
                        belief in accordance with procedures 
                        set forth in guidance or regulations 
                        prescribed under subsection (e);
                    ``(D) may gather information from the 
                offeror, carrier, packaging manufacturer or 
                tester, or other person responsible for the 
                package, to ascertain the nature and hazards of 
                the contents of the package;
                    ``(E) as necessary, under terms and 
                conditions specified by the Secretary, may 
                order the offeror, carrier, packaging 
                manufacturer or tester, or other person 
                responsible for the package to have the package 
                transported to, opened, and the contents 
                examined and analyzed, at a facility 
                appropriate for the conduct of such examination 
                and analysis; and
                    ``(F) when safety might otherwise be 
                compromised, may authorize properly qualified 
                personnel to assist in the activities conducted 
                under this subsection.
            ``(2) Display of credentials.--An officer, 
        employee, or agent acting under this subsection shall 
        display proper credentials when requested.
            ``(3) Safe resumption of transportation.--In 
        instances when, as a result of an inspection or 
        investigation under this subsection, an imminent hazard 
        is not found to exist, the Secretary, in accordance 
        with procedures set forth in regulations prescribed 
        under subsection (e), shall assist--
                    ``(A) in the safe and prompt resumption of 
                transportation of the package concerned; or
                    ``(B) in any case in which the hazardous 
                material being transported is perishable, in 
                the safe and expeditious resumption of 
                transportation of the perishable hazardous 
                material.''.
    (d) Emergency Authority for Hazardous Material 
Transportation.--Section 5121 is amended--
            (1) by redesignating subsections (d) and (e) as 
        subsections (f) and (h), respectively; and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Emergency Orders.--
            ``(1) In general.--If, upon inspection, 
        investigation, testing, or research, the Secretary 
        determines that a violation of a provision of this 
        chapter, or a regulation prescribed under this chapter, 
        or an unsafe condition or practice, constitutes or is 
        causing an imminent hazard, the Secretary may issue or 
        impose emergency restrictions, prohibitions, recalls, 
        or out-of-service orders, without notice or an 
        opportunity for a hearing, but only to the extent 
        necessary to abate the imminent hazard.
            ``(2) Written orders.--The action of the Secretary 
        under paragraph (1) shall be in a written emergency 
        order that--
                    ``(A) describes the violation, condition, 
                or practice that constitutes or is causing the 
                imminent hazard;
                    ``(B) states the restrictions, 
                prohibitions, recalls, or out-of-service orders 
                issued or imposed; and
                    ``(C) describes the standards and 
                procedures for obtaining relief from the order.
            ``(3) Opportunity for review.--After taking action 
        under paragraph (1), the Secretary shall provide for 
        review of the action under section 554 of title 5 if a 
        petition for review is filed within 20 calendar days of 
        the date of issuance of the order for the action.
            ``(4) Expiration of effectivenesss of order.--If a 
        petition for review of an action is filed under 
        paragraph (3) and the review under that paragraph is 
        not completed by the end of the 30-day period beginning 
        on the date the petition is filed, the action shall 
        cease to be effective at the end of such period unless 
        the Secretary determines, in writing, that the imminent 
        hazard providing a basis for the action continues to 
        exist.
            ``(5) Out of service order defined.--In this 
        subsection, the term `out-of-service order' means a 
        requirement that an aircraft, vessel, motor vehicle, 
        train, railcar, locomotive, other vehicle, transport 
        unit, transport vehicle, freight container, potable 
        tank, or other package not be moved until specified 
        conditions have been met.
    ``(e) Regulations.--
            ``(1) Temporary regulations.--Not later than 60 
        days after the date of enactment of the Hazardous 
        Materials Transportation Safety and Security 
        Reauthorization Act of 2005, the Secretary shall issue 
        temporary regulations to carry out subsections (c) and 
        (d). The temporary regulations shall expire on the date 
        of issuance of the regulations under paragraph (2).
            ``(2) Final regulations.--Not later than 1 year 
        after such date of enactment, the Secretary shall issue 
        regulations to carry out subsections (c) and (d) in 
        accordance with subchapter II of chapter 5 of title 
        5.''.
    (e) Grants and Cooperative Agreements.--Section 5121 is 
amended by inserting after subsection (f) (as redesignated by 
subsection (d)(1) of this section) the following:
    ``(g) Grants and Cooperative Agreements.--The Secretary may 
enter into grants and cooperative agreements with a person, 
agency, or instrumentality of the United States, a unit of 
State or local government, an Indian tribe, a foreign 
government (in coordination with the Department of State), an 
educational institution, or other appropriate entity--
            ``(1) to expand risk assessment and emergency 
        response capabilities with respect to the security of 
        transportation of hazardous material;
            ``(2) to enhance emergency communications capacity 
        as determined necessary by the Secretary, including the 
        use of integrated, interoperable emergency 
        communications technologies where appropriate;
            ``(3) to conduct research, development, 
        demonstration, risk assessment, and emergency response 
        planning and training activities; or
            ``(4) to otherwise carry out this chapter.''.
    (f) Report.--Section 5121(h) (as redesignated by subsection 
(d)(1) of this section) is amended--
            (1) in the matter preceding paragraph (1) by 
        striking ``submit to the President for transmittal to 
        the Congress'' and inserting ``transmit to the 
        Committee on Transportation and Infrastructure of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate''; and
            (2) in paragraph (4) by inserting ``relating to a 
        function regulated by the Secretary under section 
        5103(b)(1)'' after ``activities''.

SEC. 7119. ENFORCEMENT.

    (a) In General.--Section 5122(a) is amended--
            (1) in the first sentence by striking ``chapter or 
        a regulation prescribed or order'' and inserting 
        ``chapter or a regulation prescribed or order, special 
        permit, or approval''; and
            (2) by striking the second sentence and inserting 
        the following: ``The court may award appropriate 
        relief, including a temporary or permanent injunction, 
        punitive damages, and assessment of civil penalties 
        considering the same penalty amounts and factors as 
        prescribed for the Secretary in an administrative case 
        under section 5123.''.
    (b) Imminent Hazards.--Section 5122(b)(1)(B) is amended by 
striking ``or ameliorate the'' and inserting ``or mitigate 
the''.

SEC. 7120. CIVIL PENALTY.

    (a) Penalty.--Section 5123(a) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``regulation prescribed or 
                order issued'' and inserting ``regulation, 
                order, special permit, or approval issued''; 
                and
                    (B) by striking ``$25,000'' and inserting 
                ``$50,000'';
            (2) by redesignating paragraph (2) as paragraph 
        (4); and
            (3) by inserting after paragraph (1) the following:
            ``(2) If the Secretary finds that a violation under 
        paragraph (1) results in death, serious illness, or 
        severe injury to any person or substantial destruction 
        of property, the Secretary may increase the amount of 
        the civil penalty for such violation to not more than 
        $100,000.
            ``(3) If the violation is related to training, 
        paragraph (1) shall be applied by substituting `$450' 
        for `$250'.''.
    (b) Hearing Requirement.--Section 5123(b) is amended by 
striking ``regulation prescribed'' and inserting ``regulation 
prescribed or order, special permit, or approval issued''.
    (c) Civil Actions To Collect.--Section 5123(d) is amended 
by striking ``section.'' and inserting ``section and any 
accrued interest on the civil penalty as calculated in 
accordance with section 1005 of the Oil Pollution Act of 1990 
(33 U.S.C. 2705). In the civil action, the amount and 
appropriateness of the civil penalty shall not be subject to 
review.''.
    (d) Effective Dates.--
            (1) Hearing requirement.--The amendment made by 
        subsection (b) shall take effect on the date of 
        enactment of this Act, and shall apply with respect to 
        violations described in section 5123(a) of title 49, 
        United States Code (as amended by this section), that 
        occur on or after that date.
            (2) Civil actions to collect.--The amendment made 
        by subsection (c) shall apply with respect to civil 
        penalties imposed on violations described in section 
        5123(a) of title 49, United States Code (as amended by 
        this section), that occur on or after the date of 
        enactment of this Act.

SEC. 7121. CRIMINAL PENALTY.

    Section 5124 is amended to read as follows:

``Sec. 5124. Criminal penalty

    ``(a) In General.--A person knowingly violating section 
5104(b) or willfully or recklessly violating this chapter or a 
regulation, order, special permit, or approval issued under 
this chapter shall be fined under title 18, imprisoned for not 
more than 5 years, or both; except that the maximum amount of 
imprisonment shall be 10 years in any case in which the 
violation involves the release of a hazardous material that 
results in death or bodily injury to any person.
    ``(b) Knowing Violations.--For purposes of this section--
            ``(1) a person acts knowingly when--
                    ``(A) the person has actual knowledge of 
                the facts giving rise to the violation; or
                    ``(B) a reasonable person acting in the 
                circumstances and exercising reasonable care 
                would have that knowledge; and
            ``(2) knowledge of the existence of a statutory 
        provision, or a regulation or a requirement required by 
        the Secretary, is not an element of an offense under 
        this section.
    ``(c) Willful Violations.--For purposes of this section, a 
person acts willfully when--
            ``(1) the person has knowledge of the facts giving 
        rise to the violation; and
            ``(2) the person has knowledge that the conduct was 
        unlawful.
    ``(d) Reckless Violations.--For purposes of this section, a 
person acts recklessly when the person displays a deliberate 
indifference or conscious disregard to the consequences of that 
person's conduct.''.

SEC. 7122. PREEMPTION.

    (a) Substantive Differences.--Section 5125(b) is amended--
            (1) by striking subparagraph (E) of paragraph (1) 
        and inserting the following:
            ``(E) the designing, manufacturing, fabricating, 
        inspecting, marking, maintaining, reconditioning, 
        repairing, or testing a package, container, or 
        packaging component that is represented, marked, 
        certified, or sold as qualified for use in transporting 
        hazardous material in commerce.''; and
            (2) by striking ``prescribes after November 16, 
        1990. However, the'' in paragraph (2) and inserting 
        ``prescribes. The''.
    (b) Decisions on Preemption.--Section 5125(d)(1) is amended 
in the first sentence by inserting before the period at the end 
``or section 5119(e)''.
    (c) Waiver of Preemption.--Section 5125(e) is amended in 
the first sentence by inserting before the period at the end 
``or section 5119(b)''.
    (d) Standards.--Section 5125 is amended by adding at the 
end the following:
    ``(h) Application of Each Preemption Standard.--Each 
standard for preemption in subsection (b), (c)(1), or (d), and 
in section 5119(b), is independent in its application to a 
requirement of a State, political subdivision of a State, or 
Indian tribe.
    ``(i) Non-Federal Enforcement Standards.--This section does 
not apply to any procedure, penalty, required mental state, or 
other standard utilized by a State, political subdivision of a 
State, or Indian tribe to enforce a requirement applicable to 
the transportation of hazardous material.''.

SEC. 7123. JUDICIAL REVIEW.

    (a) Repeal.--Section 5125 (as amended by section 7122 of 
this Act) is further amended--
            (1) by striking subsection (f);
            (2) by redesignating subsections (g), (h), and (i) 
        as subsections (f), (g), and (h), respectively; and
            (3) in subsection (f) (as so redesignated) by 
        moving paragraph (2) (including subparagraphs (A) 
        through (D)) 2 ems to the left.
    (b) Judicial Review.--Chapter 51 is amended by 
redesignating section 5127 as section 5128 and by inserting 
after section 5126 the following:

``Sec. 5127. Judicial review

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

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

SEC. 7124. RELATIONSHIP TO OTHER LAWS.

    Section 5126(a) is amended--
            (1) by striking ``or causes to be transported 
        hazardous material,'' and inserting ``hazardous 
        material, or causes hazardous material to be 
        transported,'';
            (2) by striking ``manufactures,'' and all that 
        follows through ``or sells'' and inserting ``designs, 
        manufactures, fabricates, inspects, marks, maintains, 
        reconditions, repairs, or tests a package, container, 
        or packaging component that is represented'';
            (3) by striking ``must'' and inserting ``shall''; 
        and
            (4) by striking ``manufacturing,'' and all that 
        follows through ``testing'' and inserting ``designing, 
        manufacturing, fabricating, inspecting, marking, 
        maintaining, reconditioning, repairing, or testing''.

SEC. 7125. AUTHORIZATION OF APPROPRIATIONS.

    Section 5128 (as redesignated by section 7123(b) of this 
Act) is amended to read as follows:

``Sec. 5128. Authorizations of appropriations

    ``(a) In General.--In order to carry out this chapter 
(except sections 5107(e), 5108(g)(2), 5113, 5115, 5116, and 
5119), the following amounts are authorized to be appropriated 
to the Secretary:
            ``(1) For fiscal year 2005, $24,940,000.
            ``(2) For fiscal year 2006, $29,000,000.
            ``(3) For fiscal year 2007, $30,000,000.
            ``(4) For fiscal year 2008, $30,000,000.
    ``(b) Hazardous Materials Emergency Preparedness Fund.--
There shall be available to the Secretary, from the account 
established pursuant to section 5116(i), for each of fiscal 
years 2005 through 2008 the following:
            ``(1) To carry out section 5115, $200,000.
            ``(2) To carry out sections 5116(a) and (b), 
        $21,800,000 to be allocated as follows:
                    ``(A) $5,000,000 to carry out section 
                5116(a).
                    ``(B) $7,800,000 to carry out section 
                5116(b).
                    ``(C) Of the amount provided for by this 
                paragraph for a fiscal year in excess of the 
                suballocations in subparagraphs (A) and (B)--
                            ``(i) 35 percent shall be used to 
                        carry out section 5116(a); and
                            ``(ii) 65 percent shall be used to 
                        carry out section 5116(b),
                except that the Secretary may increase the 
                proportion to carry out section 5116(b) and 
                decrease the proportion to carry out section 
                5116(a) if the Secretary determines that such 
                reallocation is appropriate to carry out the 
                intended uses of these funds as described in 
                the applications submitted by States and Indian 
                tribes.
            ``(3) To carry out section 5116(f), $150,000.
            ``(4) To publish and distribute the Emergency 
        Response Guidebook under section 5116(i)(3), $625,000.
            ``(5) To carry out section 5116(j), $1,000,000.
    ``(c) Hazmat Training Grants.--There shall be available to 
the Secretary, from the account established pursuant to section 
5116(i), to carry out section 5107(e) $4,000,000 for each of 
fiscal years 2005 through 2008.
    ``(d) Issuance of Hazmat Licenses.--There are authorized to 
be appropriated for the Department of Transportation such 
amounts as may be necessary to carry out section 5103a.
    ``(e) Credits to Appropriations.--The Secretary may credit 
to any appropriation to carry out this chapter an amount 
received from a State, Indian tribe, or other public authority 
or private entity for expenses the Secretary incurs in 
providing training to the State, authority, or entity.
    ``(f) Availability of Amounts.--Amounts made available by 
or under this section remain available until expended.''.

SEC. 7126. REFERENCES TO THE SECRETARY OF TRANSPORTATION.

    Chapter 51 is amended by striking ``Secretary of 
Transportation'' each place it appears (other than the second 
place it appears in section 5108(g)(2)(C) and in sections 
5102(11), 5103(c), 5103a(c), 5115(a), 5115(c)(3), 5116(i), and 
5120(a)) and inserting ``Secretary''.

SEC. 7127. CRIMINAL MATTERS.

    Section 845(a)(1) of title 18, United States Code, is 
amended to read as follows:
            ``(1) aspects of the transportation of explosive 
        materials via railroad, water, highway, or air that 
        pertain to safety, including security, and are 
        regulated by the Department of Transportation or the 
        Department of Homeland Security;''.

SEC. 7128. ADDITIONAL CIVIL AND CRIMINAL PENALTIES.

    (a) Title 49 Penalties.--Section 46312 is amended--
            (1) by striking ``part--'' in subsection (a) and 
        inserting ``part or chapter 51--''; and
            (2) by inserting ``or chapter 51'' in subsection 
        (b) after ``under this part''.
    (b) Title 18 Penalties.--Section 3663(a)(1)(A) of title 18, 
United States Code, is amended by inserting ``5124,'' before 
``46312,''.

SEC. 7129. HAZARDOUS MATERIAL TRANSPORTATION PLAN REQUIREMENT.

    (a) In General.--Subpart I of part 172 of the Department of 
Transportation's regulations (49 C.F.R. 172.800 et seq.), or 
any subsequent Department of Transportation regulation in pari 
materia, does not apply to the surface transportation 
activities of a farmer that are--
            (1) in direct support of the farmer's farming 
        operations; and
            (2) conducted within a 150-mile radius of those 
        operations.
    (b) Farmer Defined.--In this section, the term ``farmer'' 
means a person--
            (1) actively engaged in the production or raising 
        of crops, poultry, livestock, or other agricultural 
        commodities; and
            (2) whose gross receipts from the sale of such 
        agricultural commodities or products do not exceed 
        $500,000 annually.

SEC. 7130. DETERMINING AMOUNT OF UNDECLARED SHIPMENTS OF HAZARDOUS 
                    MATERIALS ENTERING THE UNITED STATES.

    (a) Study.--The Comptroller General shall review existing 
options and determine additional options for discovering the 
amount of undeclared shipments of hazardous materials (as 
defined in section 5101 of title 49, United States Code) 
entering the United States.
    (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General shall transmit 
to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
results of the study.

SEC. 7131. HAZARDOUS MATERIALS RESEARCH PROJECTS.

    (a) In General.--The Administrator of the Pipeline and 
Hazardous Materials Safety Administration shall enter into a 
contract with the National Academy of Sciences to carry out the 
9 research projects called for in the 2005 Special Report 283 
of the Transportation Research Board entitled ``Cooperative 
Research for Hazardous Materials Transportation: Defining the 
Need, Converging on Solutions''. In carrying out the research 
projects, the National Academy of Sciences shall consult with 
the Administrator.
    (b) Report.--Not later than 6 months after the date of 
enactment of this Act, the Secretary shall transmit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the need to establish 
a cooperative research program on hazardous materials 
transportation.
    (c) Funding.--Of the amounts made available by section 
5101(a)(1) of this Act, $1,250,000 for each of fiscal years 
2006 through 2009 shall be available to carry out this section.

SEC. 7132. NATIONAL FIRST RESPONDER TRANSPORTATION INCIDENT RESPONSE 
                    SYSTEM.

    (a) In General.--The Secretary shall provide funding to the 
Operation Respond Institute to design, build, and operate a 
seamless first responder hazardous materials incident 
detection, preparedness, and response system.
    (b) Expansion.--This system shall include an expansion of 
the Operation Respond Emergency Information System (OREIS).
    (c) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary to carry out this section 
$2,500,000 for each of fiscal years 2005 through 2008.

SEC. 7133. COMMON CARRIER PIPELINE SYSTEM.

    (a) Study.--The Secretary shall conduct a study of the 
economic, environmental, and homeland security advantages and 
disadvantages of operating a common carrier pipeline system in 
the States of Texas, Louisiana, Mississippi, and Alabama for 
the transportation of aromatic chemicals.
    (b) Evaluation.--In conducting the study, the Secretary 
shall evaluate the appropriateness of different Federal 
incentives for the construction and operation of such a 
pipeline system, including loan guarantees, other types of 
financial assistance, and various types of tax incentives.
    (c) Report.--Not later than December 31, 2005, the 
Secretary shall transmit to Congress a report on the results of 
the study, including recommendations, if any, for legislation.

                Subtitle B--Sanitary Food Transportation

SEC. 7201. SHORT TITLE.

    This subtitle may be cited as the ``Sanitary Food 
Transportation Act of 2005''.

SEC. 7202. RESPONSIBILITIES OF SECRETARY OF HEALTH AND HUMAN SERVICES.

    (a) Unsanitary Transport Deemed Adulteration.--Section 402 
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342) is 
amended by adding at the end the following:
    ``(i) If it is transported or offered for transport by a 
shipper, carrier by motor vehicle or rail vehicle, receiver, or 
any other person engaged in the transportation of food under 
conditions that are not in compliance with regulations 
promulgated under section 416.''.
    (b) Sanitary Transportation Requirements.--Chapter IV of 
the Federal Food, Drug, and Cosmetic Act(21 U.S.C. 341 et seq.) 
is amended by adding at the end the following:

``SEC. 416. SANITARY TRANSPORTATION PRACTICES.

    ``(a) Definitions.--In this section:
            ``(1) Bulk vehicle.--The term `bulk vehicle' 
        includes a tank truck, hopper truck, rail tank car, 
        hopper car, cargo tank, portable tank, freight 
        container, or hopper bin, and any other vehicle in 
        which food is shipped in bulk, with the food coming 
        into direct contact with the vehicle.
            ``(2) Transportation.--The term `transportation' 
        means any movement in commerce by motor vehicle or rail 
        vehicle.
    ``(b) Regulations.--The Secretary shall by regulation 
require shippers, carriers by motor vehicle or rail vehicle, 
receivers, and other persons engaged in the transportation of 
food to use sanitary transportation practices prescribed by the 
Secretary to ensure that food is not transported under 
conditions that may render the food adulterated.
    ``(c) Contents.--The regulations under subsection (b) 
shall--
            ``(1) prescribe such practices as the Secretary 
        determines to be appropriate relating to--
                    ``(A) sanitation;
                    ``(B) packaging, isolation, and other 
                protective measures;
                    ``(C) limitations on the use of vehicles;
                    ``(D) information to be disclosed--
                            ``(i) to a carrier by a person 
                        arranging for the transport of food; 
                        and
                            ``(ii) to a manufacturer or other 
                        person that--
                                    ``(I) arranges for the 
                                transportation of food by a 
                                carrier; or
                                    ``(II) furnishes a tank 
                                vehicle or bulk vehicle for the 
                                transportation of food; and
                    ``(E) recordkeeping; and
            ``(2) include--
                    ``(A) a list of nonfood products that the 
                Secretary determines may, if shipped in a bulk 
                vehicle, render adulterated food that is 
                subsequently transported in the same vehicle; 
                and
                    ``(B) a list of nonfood products that the 
                Secretary determines may, if shipped in a motor 
                vehicle or rail vehicle (other than a tank 
                vehicle or bulk vehicle), render adulterated 
                food that is simultaneously or subsequently 
                transported in the same vehicle.
    ``(d) Waivers.--
            ``(1) In general.--The Secretary may waive any 
        requirement under this section, with respect to any 
        class of persons, vehicles, food, or nonfood products, 
        if the Secretary determines that the waiver--
                    ``(A) will not result in the transportation 
                of food under conditions that would be unsafe 
                for human or animal health; and
                    ``(B) will not be contrary to the public 
                interest.
            ``(2) Publication.--The Secretary shall publish in 
        the Federal Register any waiver and the reasons for the 
        waiver.
    ``(e) Preemption.--
            ``(1) In general.--A requirement of a State or 
        political subdivision of a State that concerns the 
        transportation of food is preempted if--
                    ``(A) complying with a requirement of the 
                State or political subdivision and a 
                requirement of this section, or a regulation 
                prescribed under this section, is not possible; 
                or
                    ``(B) the requirement of the State or 
                political subdivision as applied or enforced is 
                an obstacle to accomplishing and carrying out 
                this section or a regulation prescribed under 
                this section.
            ``(2) Applicability.--This subsection applies to 
        transportation that occurs on or after the effective 
        date of the regulations promulgated under subsection 
        (b).
    ``(f) Assistance of Other Agencies.--The Secretary of 
Transportation, the Secretary of Agriculture, the Administrator 
of the Environmental Protection Agency, and the heads of other 
Federal agencies, as appropriate, shall provide assistance on 
request, to the extent resources are available, to the 
Secretary for the purposes of carrying out this section.''.
    (c) Inspection of Transportation Records.--
            (1) Requirement.--Section 703 of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 373) is amended--
                    (A) by striking the section heading and all 
                that follows through ``For the purpose'' and 
                inserting the following:

``SEC. 703. RECORDS.

    ``(a) In General.--For the purpose''; and
                    (B) by adding at the end the following:
    ``(b) Food Transportation Records.--A shipper, carrier by 
motor vehicle or rail vehicle, receiver, or otherperson subject 
to section 416 shall, on request of an officer or employee designated 
by the Secretary, permit the officer or employee, at reasonable times, 
to have access to and to copy all records that the Secretary requires 
to be kept under section 416(c)(1)(E).''.
            (2) Conforming amendment.--Subsection (a) of 
        section 703 of the Federal Food, Drug, and Cosmetic Act 
        (as designated by paragraph (1)(A)) is amended by 
        striking ``carriers.'' and inserting ``carriers, except 
        as provided in subsection (b).''.
    (d) Prohibited Acts; Records Inspection.--Section 301(e) of 
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) is 
amended by inserting ``416,'' before ``504,'' each place it 
appears.
    (e) Unsafe Food Transportation.--Section 301 of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amended by 
adding at the end the following:
    ``(hh) The failure by a shipper, carrier by motor vehicle 
or rail vehicle, receiver, or any other person engaged in the 
transportation of food to comply with the sanitary 
transportation practices prescribed by the Secretary under 
section 416.''.

SEC. 7203. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.

    Chapter 57 is amended to read as follows:

               ``CHAPTER 57--SANITARY FOOD TRANSPORTATION

``5701. Food Transportation safety inspections.

``Sec. 5701. Food transportation safety inspections

    ``(a) Inspection Procedures.--
            ``(1) In general.--The Secretary of Transportation, 
        in consultation with the Secretary of Health and Human 
        Services and the Secretary of Agriculture, shall 
        establish procedures for transportation safety 
        inspections for the purpose of identifying suspected 
        incidents of contamination or adulteration of--
                    ``(A) food in violation of regulations 
                promulgated under section 416 of the Federal 
                Food, Drug, and Cosmetic Act;
                    ``(B) a carcass, part of a carcass, meat, 
                meat food product, or animal subject to 
                detention under section 402 of the Federal Meat 
                Inspection Act (21 U.S.C. 672); and
                    ``(C) poultry products or poultry subject 
                to detention under section 19 of the Poultry 
                Products Inspection Act (21 U.S.C. 467a).
            ``(2) Training.--
                    ``(A) In general.--The Secretary of 
                Transportation shall develop and carry out a 
                training program to conduct enforcement of this 
                chapter and regulations prescribed under this 
                chapter or compatible State laws and 
                regulations.
                    ``(B) Conduct.--In carrying out this 
                paragraph, the Secretary of Transportation 
                shall train inspectors, including Department of 
                Transportation personnel, State employees 
                described under subsection (c), or personnel 
                paid with funds authorized under sections 31102 
                and 31104, in the recognition of adulteration 
                problems associated with the transportation of 
                cosmetics, devices, drugs, food, and food 
                additives and in the procedures for obtaining 
                assistance of the appropriate departments, 
                agencies, and instrumentalities of the 
                Government and State authorities to support the 
                enforcement.
            ``(3) Applicability.--The procedures established 
        under paragraph (1) shall apply, at a minimum, to 
        Department of Transportation personnel that perform 
        commercial motor vehicle or railroad safety 
        inspections.
    ``(b) Notification of Secretary of Health and Human 
Services or Secretary of Agriculture.--The Secretary of 
Transportation shall promptly notify the Secretary of Health 
and Human Services or the Secretary of Agriculture, as 
applicable, of any instances of potential food contamination or 
adulteration of a food identified during transportation safety 
inspections.
    ``(c) Use of State Employees.--The means by which the 
Secretary of Transportation carries out subsection (b) may 
include inspections conducted by State employees using funds 
authorized to be appropriated under sections 31102 through 
31104.''.

SEC. 7204. EFFECTIVE DATE.

    This subtitle takes effect on October 1, 2005.

     Subtitle C--Research and Innovative Technology Administration

SEC. 7301. ADMINISTRATIVE AUTHORITY.

    Section 112 is amended by adding at the end the following:
    ``(e) Administrative Authorities.--The Administrator may 
enter into grants and cooperative agreements with Federal 
agencies, State and local government agencies, other public 
entities, private organizations, and other persons--
            ``(1) to conduct research into transportation 
        service and infrastructure assurance; and
            ``(2) to carry out other research activities of the 
        Administration.''.

      TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE

SEC. 8001. DISCRETIONARY SPENDING LIMITS FOR THE HIGHWAY AND MASS 
                    TRANSIT CATEGORIES.

    (a) Limits.--Redesignate paragraphs (2) through (9) of 
section 251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 as paragraphs (6) through (13), 
respectively, and strike paragraph (1) of such section 251(c) 
and insert the following new paragraphs:
            ``(1) with respect to fiscal year 2005--
                    ``(A) for the highway category: 
                $31,277,000,000 in outlays;
                    ``(B) for the mass transit category: 
                $955,792,000 in new budget authority and 
                $6,674,000,000 in outlays;
            ``(2) with respect to fiscal year 2006--
                    ``(A) for the highway category: 
                $33,942,000,000 in outlays;
                    ``(B) for the mass transit category: 
                $1,643,000,000 in new budget authority and 
                $7,359,000,000 in outlays;
            ``(3) with respect to fiscal year 2007--
                    ``(A) for the highway category: 
                $36,960,000,000 in outlays;
                    ``(B) for the mass transit category: 
                $1,712,000,000 in new budget authority and 
                $8,120,000,000 in outlays;
            ``(4) with respect to fiscal year 2008--
                    ``(A) for the highway category: 
                $39,123,000,000 in outlays;
                    ``(B) for the mass transit category: 
                $1,858,000,000 in new budget authority and 
                $8,742,000,000 in outlays;
            ``(5) with respect to fiscal year 2009--
                    ``(A) for the highway category: 
                $40,660,000,000 in outlays;
                    ``(B) for the mass transit category: 
                $1,977,500,000 in new budget authority and 
                $9,180,000,000 in outlays;''.
    (b) Definitions.--Section 250(c)(4) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``the Transportation Equity 
                Act for the 21st Century'' and all that follows 
                through the colon and inserting: ``the Safe, 
                Accountable, Flexible, Efficient Transportation 
                Equity Act: A Legacy for Users:''; and
                    (B) by adding at the end thereof the 
                following new clauses:
                            ``(v) 69-8362-0-7-401 (National 
                        Driver Registry).
                            ``(vi) 69-8159-0-7-401 (Motor 
                        Carrier Safety Operations and 
                        Programs).
                            ``(vii) 06-8158-0-7-401 (Motor 
                        Carrier Safety Grants).''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) Mass transit category.--The term 
                `mass transit category' means the following 
                budget accounts, or portions of the accounts, 
                that are subject to the obligation limitations 
                on contract authority provided in the Safe, 
                Accountable, Flexible, Efficient Transportation 
                Equity Act: A Legacy for Users or for which 
                appropriations are provided in accordance with 
                authorizations contained in that Act:
                            ``(i) 69-1120-0-1-401 
                        (Administrative Expenses).
                            ``(ii) 69-1134-0-1-401 (Capital 
                        Investment Grants).
                            ``(iii) 69-8191-0-7-401 
                        (Discretionary Grants).
                            ``(iv) 69-1129-0-1-401 (Formula 
                        Grants).
                            ``(v) 69-1127-0-1-401 (Interstate 
                        Transfer Grants--Transit).
                            ``(vi) 69-1125-0-1-401 (Job Access 
                        and Reverse Commute).
                            ``(vii) 69-1122-0-1-401 
                        (Miscellaneous Expired Accounts).
                            ``(viii) 69-1121-0-1-401 (Research, 
                        Training and Human Resources).
                            ``(ix) 69-8350-0-7-401 (Trust Fund 
                        Share of Expenses).
                            ``(x) 69-1137-0-1-401 (Transit 
                        Planning and Research).
                            ``(xi) 69-1136-0-1-401 (University 
                        Transportation Research).
                            ``(xii) 69-1128-0-1-401 (Washington 
                        Metropolitan Area Transit 
                        Authority).''.

SEC. 8002. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH REVENUES.

    Subparagraphs (B) through (E) of section 251(b)(1) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are 
amended to read as follows:
                    ``(B) Adjustment to align highway spending 
                with revenues.--(i) When the President submits 
                the budget under section 1105 of title 31, 
                United States Code, OMB shall calculate and the 
                budget shall make adjustments to the highway 
                category for the budget year and each outyear 
                as provided in clause (ii)(I)(cc).
                    ``(ii)(I)(aa) OMB shall take the actual 
                level of highway receipts for the year before 
                the current year and subtract the sum of the 
                estimated level of highway receipts in 
                subclause (II) plus any amount previously 
                calculated under item (bb) for that year.
                    ``(bb) OMB shall take the current estimate 
                of highway receipts for the current year and 
                subtract the estimated level of receipts for 
                that year.
                    ``(cc) OMB shall add one-half of the sum of 
                the amount calculated under items (aa) and (bb) 
                to the obligation limitations set forth in the 
                section 8003 of the Safe, Accountable, 
                Flexible, Efficient Transportation Equity Act: 
                A Legacy for Users and, using current 
                estimates, calculate the outlay change 
                resulting from the change in obligations for 
                the budget year and the first outyear and the 
                outlays flowing therefrom through subsequent 
                fiscal years. After making the calculations 
                under the preceding sentence, OMB shall adjust 
                the amount of obligations set forth in that 
                section for the budget year and the first 
                outyear by adding one-half of the sum of the 
                amount calculated under items (aa) and (bb) to 
                each such year.
                    ``(II) The estimated level of highway 
                receipts for the purposes of this clause are--
                            ``(aa) for fiscal year 2005, 
                        $31,562,000,000;
                            ``(bb) for fiscal year 2006, 
                        $33,712,000,000;
                            ``(cc) for fiscal year 2007, 
                        $34,623,000,000;
                            ``(dd) for fiscal year 2008, 
                        $35,449,000,000; and
                            ``(ee) for fiscal year 2009, 
                        $36,220,000,000.
                    ``(III) In this clause, the term `highway 
                receipts' means the governmental receipts 
                credited to the highway account of the Highway 
                Trust Fund.
                    ``(C) In addition to the adjustment 
                required by subparagraph (B), when the 
                President submits the budget under section 1105 
                of title 31, United States Code, for fiscal 
                year 2007, 2008, or 2009, OMB shall calculate 
                and the budget shall include for the budget 
                year and each outyear an adjustment to the 
                limits on outlays for the highway category and 
                the mass transit category equal to--
                            ``(i) the outlays for the 
                        applicable category calculated assuming 
                        obligation levels consistent with the 
                        estimates prepared pursuant to 
                        subparagraph (D), as adjusted, using 
                        current technical assumptions; minus
                            ``(ii) the outlays for the 
                        applicable category set forth in the 
                        subparagraph (D) estimates, as 
                        adjusted.
                    ``(D)(i) When OMB and CBO submit their 
                final sequester report for fiscal year 2006, 
                that report shall include an estimate of the 
                outlays for each of the categories that would 
                result in fiscal years 2007 through 2010 from 
                obligations at the levels specified in section 
                8003 of the Safe, Accountable, Flexible, 
                Efficient Transportation Equity Act: A Legacy 
                for Users using current assumptions.
                    ``(ii) When the President submits the 
                budget under section 1105 of title 31, United 
                States Code, for fiscal year 2007, 2008, 2009, 
                or 2010, OMB shall adjust the estimates made in 
                clause (i) by the adjustments by subparagraphs 
                (B) and (C).
                    ``(E) OMB shall consult with the Committees 
                on the Budget and include a report on 
                adjustments under subparagraphs (B) and (C) in 
                the preview report.''.

SEC. 8003. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--For the purposes of section 251(b) 
of the Balanced Budget and Emergency Deficit Control Act of 
1985, the level of obligation limitations for the highway 
category is--
            (1) for fiscal year 2005, $35,164,292,000;
            (2) for fiscal year 2006, $37,220,843,903;
            (3) for fiscal year 2007, $39,460,710,516;
            (4) for fiscal year 2008, $40,824,075,404; and
            (5) for fiscal year 2009, $42,469,970,178.
    (b) Mass Transit Category.--For the purposes of section 
251(b) of the Balanced Budget and Emergency Deficit Control Act 
of 1985, the level of obligation limitations for the mass 
transit category is--
            (1) for fiscal year 2005, $7,646,336,000;
            (2) for fiscal year 2006, $8,622,931,000;
            (3) for fiscal year 2007, $8,974,775,000;
            (4) for fiscal year 2008, $9,730,893,000; and
            (5) for fiscal year 2009, $10,338,065,000.
For purposes of this subsection, the term ``obligation 
limitations'' means the sum of budget authority and obligation 
limitations.

SEC. 8004. ENFORCEMENT OF GUARANTEE.

    Clause 3 of rule XXI of the Rules of the House of 
Representatives is amended--
            (1) by striking ``section 8103 of the 
        Transportation Equity Act for the 21st Century'' and 
        inserting ``section 8003 of the Safe, Accountable, 
        Flexible, Efficient Transportation Equity Act: A Legacy 
        for Users''; and
            (2) by adding at the end the following: ``For 
        purposes of this clause, any obligation limitation 
        relating to surface transportation projects under 
        section 1602 of the Transportation Equity Act for the 
        21st Century and section 1702 of the Safe, Accountable, 
        Flexible, Efficient Transportation Equity Act: A Legacy 
        for Users shall be assumed to be administered on the 
        basis of sound program management practices that are 
        consistent with past practices of the administering 
        agency permitting States to decide High Priority 
        Project funding priorities within State program 
        allocations.''.

SEC. 8005. TRANSFER OF FEDERAL TRANSIT ADMINISTRATIVE EXPENSES.

    For purposes of clauses 2 and 3 of rule XXI of the House of 
Representatives, it shall be in order to transfer funds, in 
amounts specified in annual appropriation Acts to carry out the 
Safe, Accountable, Flexible, Efficient Transportation Equity 
Act: A Legacy for Users (including the amendments made by that 
Act), from the Federal Transit Administration's administrative 
expenses account to other mass transit budget accounts under 
section 250(c)(4)(C) of the Balanced Budget and Emergency 
Deficit Control Act of 1985.

                     TITLE IX--RAIL TRANSPORTATION

SEC. 9001. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT.

    (a) Corridor Development.--
            (1) Amendments.--Section 26101 of title 49, United 
        States Code, is amended--
                    (A) in the section heading, by striking 
                ``planning'' and inserting ``development'';
                    (B) in the heading of subsection (a), by 
                striking ``Planning'' and inserting 
                ``Development'';
                    (C) by striking ``corridor planning'' each 
                place it appears and inserting ``corridor 
                development'';
                    (D) in subsection (b)(1)--
                            (i) by inserting ``, or if it is an 
                        activity described in subparagraph 
                        (M)'' after ``high-speed rail 
                        improvements'';
                            (ii) by striking ``and'' at the end 
                        of subparagraph (K);
                            (iii) by striking the period at the 
                        end of subparagraph (L) and inserting 
                        ``; and''; and
                            (iv) by adding at the end the 
                        following new subparagraph:
                    ``(M) the acquisition of locomotives, 
                rolling stock, track, and signal equipment.''; 
                and
                    (E) in subsection (c)(2), by striking 
                ``planning'' and inserting ``development''.
            (2) Conforming amendment.--The item relating to 
        section 26101 in the table of sections of chapter 261 
        of title 49, United States Code, is amended by striking 
        ``planning'' and inserting ``development''.
    (b) Authorization of Appropriations.--Section 26104 of 
title 49, United States Code, is amended to read as follows:

``Sec. 26104. Authorization of appropriations

    ``(a) Fiscal Years 2006 Through 2013.--There are authorized 
to be appropriated to the Secretary--
            ``(1) $70,000,000 for carrying out section 26101; 
        and
            ``(2) $30,000,000 for carrying out section 26102,
for each of the fiscal years 2006 through 2013.
    ``(b) Funds to Remain Available.--Funds made available 
under this section shall remain available until expended.''.
    (c) Definition.--Section 26105(1) of title 49, United 
States Code, is amended by striking ``and cooperative 
agreements'' and inserting ``, cooperative agreements, and 
other transactions''.

SEC. 9002. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS.

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

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

    ``(a) Establishment of Program.--The Secretary of 
Transportation shall carry out a grant program to provide 
financial assistance for local rail line relocation and 
improvement projects.
    ``(b) Eligibility.--A State is eligible for a grant under 
this section for any construction project for the improvement 
of the route or structure of a rail line that either--
            ``(1) is carried out for the purpose of mitigating 
        the adverse effects of rail traffic on safety, motor 
        vehicle traffic flow, community quality of life, or 
        economic development; or
            ``(2) involves a lateral or vertical relocation of 
        any portion of the rail line.
    ``(c) Considerations for Approval of Grant Applications.--
In determining whether to award a grant to an eligible State 
under this section, the Secretary shall consider the following 
factors:
            ``(1) The capability of the State to fund the rail 
        line relocation project without Federal grant funding.
            ``(2) The requirement and limitation relating to 
        allocation of grant funds provided in subsection (d).
            ``(3) Equitable treatment of the various regions of 
        the United States.
            ``(4) The effects of the rail line, relocated or 
        improved as proposed, on motor vehicle and pedestrian 
        traffic, safety, community quality of life, and area 
        commerce.
            ``(5) The effects of the rail line, relocated as 
        proposed, on the freight and passenger rail operations 
        on the rail line.
    ``(d) Allocation Requirements.--At least 50 percent of all 
grant funds awarded under this section out of funds 
appropriated for a fiscal year shall be provided as grant 
awards of not more than $20,000,000 each. The $20,000,000 
amount shall be adjusted by the Secretary to reflect inflation 
for fiscal years beginning after fiscal year 2006.
    ``(e) Non-Federal Share.--
            ``(1) Percentage.--A State or other non-Federal 
        entity shall pay at least 10 percent of the shared 
        costs of a project that is funded in part by a grant 
        awarded under this section.
            ``(2) Forms of contributions.--The share required 
        by paragraph (1) may be paid in cash or in kind.
            ``(3) In-kind contributions.--The in-kind 
        contributions that are permitted to be counted under 
        paragraph (2) for a project for a State or other non-
        Federal entity are as follows:
                    ``(A) A contribution of real property or 
                tangible personal property (whether provided by 
                the State or a person for the State).
                    ``(B) A contribution of the services of 
                employees of the State or other non-Federal 
                entity, calculated on the basis of costs 
                incurred by the State or other non-Federal 
                entity for the pay and benefits of the 
                employees, but excluding overhead and general 
                administrative costs.
                    ``(C) A payment of any costs that were 
                incurred for the project before the filing of 
                an application for a grant for the project 
                under this section, and any in-kind 
                contributions that were made for the project 
                before the filing of the application, if and to 
                the extent that the costs were incurred or in-
                kind contributions were made, as the case may 
                be, to comply with a provision of a statute 
                required to be satisfied in order to carry out 
                the project.
            ``(4) Financial contribution from private 
        entities.--
                    ``(A) The Secretary shall require a State 
                to submit a description of the anticipated 
                public and private benefits associated with 
                each rail line relocation or improvement 
                project described in subsection (a). The 
                determination of such benefits shall be 
                developed in consultation with the owner and 
                user of the rail line being relocated or 
                improved or other private entity involved in 
                the project.
                    ``(B) The Secretary shall consider the 
                feasibility of seeking financial contributions 
                or commitments from private entities involved 
                with the project in proportion to the expected 
                benefits determined under subparagraph (A) that 
                accrue to such entities from the project.
    ``(f) Agreements to Combine Amounts.--Two or more States 
(not including political subdivisions of States) may, pursuant 
to an agreement entered into by the States, combine any part of 
the amounts provided through grants for a project under this 
section if--
            ``(1) the project will benefit each of the States 
        entering into the agreement; and
            ``(2) the agreement is not a violation of a law of 
        any such State.
    ``(g) Regulations.--The Secretary shall prescribe 
regulations for carrying out this section.
    ``(h) Definitions.--In this section:
            ``(1) Construction.--The term `construction' means 
        the supervising, inspecting, actual building, and 
        incurrence of all costs incidental to the construction 
        or reconstruction of a project described under 
        subsection (b)(1) of this section, including bond costs 
        and other costs relating to the issuance of bonds or 
        other debt financing instruments and costs incurred by 
        the State in performing project related audits, and 
        includes--
                    ``(A) locating, surveying, and mapping;
                    ``(B) track installation, restoration, and 
                rehabilitation;
                    ``(C) acquisition of rights-of-way;
                    ``(D) relocation assistance, acquisition of 
                replacement housing sites, and acquisition and 
                rehabilitation, relocation, and construction of 
                replacement housing;
                    ``(E) elimination of obstacles and 
                relocation of utilities; and
                    ``(F) and other activities defined by the 
                Secretary.
            ``(2) Quality of life.--The term `quality of life' 
        includes first responders' emergency response time, the 
        environment, noise levels, and other factors as 
        determined by the Secretary.
            ``(3) State.--The term `State' includes, except as 
        otherwise specifically provided, a political 
        subdivision of a State, and the District of Columbia.
    ``(i) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary for use in 
carrying out this section $350,000,000 for each of the fiscal 
years 2006 through 2009.''.
            (2) Clerical amendment.--The chapter analysis for 
        such chapter is amended by adding at the end the 
        following:

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

    (b) Regulations.--
            (1) Temporary regulations.--Not later than April 1, 
        2006, the Secretary of Transportation shall issue 
        temporary regulations to implement the grant program 
        under section 20154 of title 49, United States Code, as 
        added by subsection (a). Subchapter II of chapter 5 of 
        title 5, United States Code, shall not apply to the 
        issuance of a temporary regulation under this 
        subsection or of any amendment of such a temporary 
        regulation.
            (2) Final regulations.--Not later than October 1, 
        2006, the Secretary shall issue final regulations 
        implementing the program.

SEC. 9003. REHABILITATION AND IMPROVEMENT FINANCING.

    (a) Definitions.--Section 102(7) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
802(7)) is amended to read as follows:
            ``(7) `railroad' has the meaning given that term in 
        section 20102 of title 49, United States Code; and''.
    (b) General Authority.--Section 502(a) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822(a)) is amended to read as follows:
    ``(a) General Authority.--The Secretary shall provide 
direct loans and loan guarantees to--
            ``(1) State and local governments;
            ``(2) interstate compacts consented to by Congress 
        under section 410(a) of the Amtrak Reform and 
        Accountability Act of 1997 (49 U.S.C. 24101 nt);
            ``(3) government sponsored authorities and 
        corporations;
            ``(4) railroads;
            ``(5) joint ventures that include at least 1 
        railroad; and
            ``(6) solely for the purpose of constructing a rail 
        connection between a plant or facility and a second 
        rail carrier, limited option rail freight shippers that 
        own or operate a plant or other facility that is served 
        by no more than a single railroad.''.
    (c) Priority Projects.--Section 502(c) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822(c)) is amended--
            (1) by striking ``or'' after the semicolon in 
        paragraph (5);
            (2) by striking ``areas.'' in paragraph (6) and 
        inserting ``areas;''; and
            (3) by adding at the end the following:
            ``(7) enhance service and capacity in the national 
        rail system; or
            ``(8) would materially alleviate rail capacity 
        problems which degrade the provision of service to 
        shippers and would fulfill a need in the national 
        transportation system.''.
    (d) Extent of Authority.--Section 502(d) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822(d)) is amended--
            (1) by striking ``$3,500,000,000'' and inserting 
        ``$35,000,000,000'';
            (2) by striking ``$1,000,000,000'' and inserting 
        ``$7,000,000,000''; and
            (3) by adding at the end ``The Secretary shall not 
        establish any limit on the proportion of the unused 
        amount authorized under this subsection that may be 
        used for 1 loan or loan guarantee.''.
    (e) Cohorts of Loans.--Section 502(f) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822(f)) is amended--
            (1) by striking ``and'' after the semicolon in 
        subparagraph (D) of paragraph (2);
            (2) by redesignating subparagraph (E) of paragraph 
        (2) as subparagraph (F);
            (3) by adding after subparagraph (D) of paragraph 
        (2) the following:
                    ``(E) the size and characteristics of the 
                cohort of which the loan or loan guarantee is a 
                member; and''; and
            (4) by adding at the end of paragraph (4) ``A 
        cohort may include loans and loan guarantees. The 
        Secretary shall not establish any limit on the 
        proportion of a cohort that may be used for 1 loan or 
        loan guarantee.''.
    (f) Conditions of Assistance.--
            (1) Assurances.--Section 502(h) of the Railroad 
        Revitalization and Regulatory Reform Act of 1976 (45 
        U.S.C. 822(h)) is amended--
                    (A) by inserting ``(1)'' before ``The 
                Secretary'';
                    (B) by redesignating paragraphs (1), (2), 
                and (3) as subparagraphs (A), (B), and (C); and
                    (C) by adding at the end the following:
            ``(2) The Secretary shall not require an applicant 
        for a direct loan or loan guarantee under this section 
        to provide collateral. Any collateral provided or 
        thereafter enhanced shall be valued as a going concern 
        after giving effect to the present value of 
        improvements contemplated by the completion and 
        operation of the project. The Secretary shall not 
        require that an applicant for a direct loan or loan 
        guarantee under this section have previously sought the 
        financial assistance requested from another source.
            ``(3) The Secretary shall require recipients of 
        direct loans or loan guarantees under this section to 
        comply with--
            ``(A) the standards of section 24312 of title 49, 
        United States Code, as in effect on September 1, 2002, 
        with respect to the project in the same manner that the 
        National Railroad Passenger Corporation is required to 
        comply with such standards for construction work 
        financed under an agreement made under section 24308(a) 
        of that title; and
            ``(B) the protective arrangements established under 
        section 504 of this Act, with respect to employees 
        affected by actions taken in connection with the 
        project to be financed by the loan or loan 
        guarantee.''.
            (2) Technical correction.--Section 502 of the 
        Railroad Revitalization and Regulatory Reform Act of 
        1976 (45 U.S.C. 822) is amended by striking 
        ``offered;'' in subsection (f)(2)(A) and inserting 
        ``offered, if any;''.
    (g) Time Limit and Repayment Schedules.--Section 502 of the 
Railroad Revitalization and RegulatoryReform Act of 1976 (45 
U.S.C. 822) is amended by adding at the end the following:
    ``(i) Time Limit for Approval or Disapproval.--Not later 
than 90 days after receiving a complete application for a 
direct loan or loan guarantee under this section, the Secretary 
shall approve or disapprove the application.
    ``(j) Repayment Schedules.--
            ``(1) In general.--The Secretary shall establish a 
        repayment schedule requiring payments to commence not 
        later than the sixth anniversary date of the original 
        loan disbursement.
            ``(2) Accrual.--Interest shall accrue as of the 
        date of disbursement, and shall be amortized over the 
        remaining term of the loan beginning at the time the 
        payments begin.''.
    (h) Evaluation Charge.--Section 503(k) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
823(k)) is amended--
            (1) in the subsection heading, by striking 
        ``Investigation'' and inserting ``Evaluation'';
            (2) by inserting ``the cost of evaluating the 
        application, including'' after ``reasonable charge 
        for''; and
            (3) by adding at the end the following: ``Amounts 
        collected under this subsection shall be credited 
        directly to the Safety and Operations account of the 
        Federal Railroad Administration, and shall remain 
        available until expended to pay for the evaluation 
        costs described in this subsection.''.
    (i) Fees and Charges.--Section 503 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
823) is amended by adding at the end the following new 
subsection:
    ``(l) Fees and Charges.--Except as provided in this title, 
the Secretary may not assess any fees, including user fees, or 
charges in connection with a direct loan or loan guarantee 
provided under section 502.''.
    (j) Substantive Criteria and Standards.--Not later than 30 
days after the date of the enactment of this Act, the Secretary 
of Transportation shall publish in the Federal Register and 
post on the Department of Transportation website the 
substantive criteria and standards used by the Secretary to 
determine whether to approve or disapprove applications 
submitted under section 502 of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 822). The Secretary of 
Transportation shall ensure adequate procedures and guidelines 
are in place to permit the filing of complete applications 
within 30 days of such publication.

SEC. 9004. REPORT REGARDING IMPACT ON PUBLIC SAFETY OF TRAIN TRAVEL IN 
                    COMMUNITIES WITHOUT GRADE SEPARATION.

    (a) Study.--The Secretary of Transportation shall, in 
consultation with State and local government officials, conduct 
a study of the impact of blocked highway-railroad grade 
crossings on the ability of emergency responders to perform 
public safety and security duties.
    (b) Report on the Impact of Blocked Highway-Railroad Grade 
Crossings on Emergency Responders.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall submit 
the results of the study and recommendations for reducing the 
impact of blocked crossings on emergency response to the Senate 
Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and 
Infrastructure.

SEC. 9005. WELDED RAIL AND TANK CAR SAFETY IMPROVEMENTS.

    (a) Track Standards.--Section 20142 of title 49, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(e) Track Standards.--
            ``(1) In general.--Within 90 days after the date of 
        enactment of this subsection, the Federal Railroad 
        Administration shall--
                    ``(A) require each track owner using 
                continuous welded rail track to include 
                procedures (in its procedures filed with the 
                Administration pursuant to section 213.119 of 
                title 49, Code of Federal Regulations) to 
                improve the identification of cracks in rail 
                joint bars;
                    ``(B) instruct Administration track 
                inspectors to obtain copies of the most recent 
                continuous welded rail programs of each 
                railroad within the inspectors' areas of 
                responsibility and require that inspectors use 
                those programs when conducting track 
                inspections; and
                    ``(C) establish a program to review 
                continuous welded rail joint bar inspection 
                data from railroads and Administration track 
                inspectors periodically.
            ``(2) Inspection.--Whenever the Administration 
        determines that it is necessary or appropriate, the 
        Administration may require railroads to increase the 
        frequency of inspection, or improve the methods of 
        inspection, of joint bars in continuous welded rail.''.
    (b) Tank Car Standards.--
            (1) Amendment.--Subchapter II of chapter 201 of 
        title 49, United States Code, is amended by adding at 
        the end the following new section:

``Sec. 20155. Tank cars

    ``(a) Standards.--The Federal Railroad Administration 
shall--
            ``(1) validate a predictive model to quantify the 
        relevant dynamic forces acting on railroad tank cars 
        under accident conditions within 1 year after the date 
        of enactment of this section; and
            ``(2) initiate a rulemaking to develop and 
        implement appropriate design standards for pressurized 
        tank cars within 18 months after the date of enactment 
        of this section.
    ``(b) Older Tank Car Impact Resistance Analysis and 
Report.--Within 1 year after the date of enactment of this 
section the Federal Railroad Administration shall conduct a 
comprehensive analysis to determine the impact resistance of 
the steels in the shells of pressure tank cars constructed 
before 1989. Within 6 months after completing that analysis the 
Administration shall transmit a report, including 
recommendations for reducing any risk of catastrophic fracture 
and separation of such cars, to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives. ''.
            (2) Table of sections amendment.--The table of 
        sections for subchapter II of chapter 201 of title 49, 
        United States Code, is amended by adding at the end the 
        following new item:

``20155. Tank cars.''.

SEC. 9006. ALASKA RAILROAD.

    (a) Grants.--The Secretary shall make grants to the Alaska 
Railroad for capital rehabilitation and improvements benefiting 
its passenger operations.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary.

SEC. 9007. STUDY OF RAIL TRANSPORTATION AND REGULATION.

    (a) Requirement.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Transportation shall 
enter into an arrangement with the Transportation Research 
Board of the National Academy of Sciences to conduct a 
comprehensive study of the Nation's railroad transportation 
system since the enactment of the Staggers Rail Act of 1980. 
The study shall address and make recommendations on--
            (1) the performance of the Nation's major railroads 
        regarding service levels, service quality, and rates;
            (2) the projected demand for freight transportation 
        over the next two decades and the constraints limiting 
        the railroads' ability to meet that demand;
            (3) the effectiveness of public policy in balancing 
        the need for railroads to earn adequate returns with 
        those of shippers for reasonable rates and adequate 
        service; and
            (4) the future role of the Surface Transportation 
        Board in regulating railroad rates, service levels, and 
        the railroads' common carrier obligations, particularly 
        as railroads may become revenue adequate.
    (b) Report to Congress.--Not later than 1 year after the 
Secretary and the Transportation Research Board enter into the 
arrangement for the study, the Secretary shall transmit the 
results of the study conducted under subsection (a) to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Transportation 
$1,000,000 for fiscal year 2006 and $800,000 for fiscal year 
2007 to carry out this section. Such sums are to remain 
available until expended.

SEC. 9008. HAWAII PORT INFRASTRUCTURE EXPANSION PROGRAM.

    (a) In General.--Amounts appropriated or otherwise made 
available for any fiscal year for an intermodal or marine 
facility comprising a component of the Hawaii Port 
Infrastructure Expansion Program, and any non-Federal 
contributions made available for that program, shall be--
            (1) transferred to and administered by the 
        Administrator of the Maritime Administration; and
            (2) subject only to such conditions and 
        requirements as may be required by the Maritime 
        Administration.
    (b) Intermodal Authorizations.--
            (1) Intermodal centers.--Notwithstanding any other 
        provision of law, an intermodal or marine facility 
        described in subsection (a) is eligible for funding 
        under section 5309(m)(1)(C) of title 49, United States 
        Code.
            (2) Intermodal surface freight transfer facility 
        eligibility.--Notwithstanding any other provision of 
        law, an intermodal or marine facility described in 
        subsection (a) is deemed to be eligible to be an 
        intermodal surface freight transfer facility for the 
        purposes of section 181(9)(D) of title 23, United 
        States Code.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be 
        appropriated to the Secretary of Transportation such 
        sums as may be necessary to carry out this section.
            (2) No limitation.--Nothing in paragraph (1) shall 
        be construed--
                    (A) to limit or prevent the transfer or 
                administration under subsection (a) of any 
                funds appropriated or otherwise made available 
                pursuant to any other authorization of 
                appropriations or by any appropriations Act; or
                    (B) to limit the application of subsection 
                (b) to title 49, United States Code.

                   TITLE X--MISCELLANEOUS PROVISIONS

        Subtitle A--Sportfishing and Recreational Boating Safety

SEC. 10101. SHORT TITLE.

    This subtitle may be cited as the ``Sportfishing and 
Recreational Boating Safety Act of 2005''.

    CHAPTER 1--DINGELL-JOHNSON SPORT FISH RESTORATION ACT AMENDMENTS

SEC. 10111. AMENDMENT OF DINGELL-JOHNSON SPORT FISH RESTORATION ACT.

    Except as otherwise expressly provided, whenever in this 
chapter an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Dingell-Johnson Sport Fish Restoration Act (16 
U.S.C. 777 et seq.).

SEC. 10112. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 3 (16 U.S.C. 777b) is amended--
            (1) by striking ``the succeeding fiscal year.'' in 
        the third sentence and inserting ``succeeding fiscal 
        years.''; and
            (2) by striking ``in carrying on the research 
        program of the Fish and Wildlife Service in respect to 
        fish of material value for sport and recreation.'' and 
        inserting ``to supplement the 57 percent of the balance 
        of each annual appropriation to be apportioned among 
        the States, as provided for in section 4(c).''.
    (b) Conforming Amendments.--
            (1) In general.--The first sentence of section 3 
        (16 U.S.C. 777b) is amended--
                    (A) by striking ``Sport Fish Restoration 
                Account'' and inserting ``Sport Fish 
                Restoration and Boating Trust Fund''; and
                    (B) by striking ``that Account'' and 
                inserting ``that Trust Fund, except as provided 
                in section 9504(c) of the Internal Revenue Code 
                of 1986''.
            (2) Effective date.--The amendments made by 
        paragraph (1) take effect on October 1, 2005.

SEC. 10113. DIVISION OF ANNUAL APPROPRIATIONS.

    Section 4 (16 U.S.C. 777c) is amended--
            (1) by striking subsections (a) through (c) and 
        redesignating subsections (d), (e), (f), and (g) as 
        subsections (b), (c), (d), and (e), respectively;
            (2) by inserting before subsection (b), as 
        redesignated by paragraph (1), the following:
    ``(a) In General.--For each of fiscal years 2006 through 
2009, the balance of each annual appropriation made in 
accordance with the provisions of section 3 remaining after the 
distributions for administrative expenses and other purposes 
under subsection (b) and for multistate conservation grants 
under section 14 shall be distributed as follows:
            ``(1) Coastal wetlands.--An amount equal to 18.5 
        percent to the Secretary of the Interior for 
        distribution as provided in the Coastal Wetlands 
        Planning, Protection, and Restoration Act (16 U.S.C. 
        3951 et seq.).
            ``(2) Boating safety.--An amount equal to 18.5 
        percent to the Secretary of the department in which the 
        Coast Guard is operating for State recreational boating 
        safety programs under section 13106 of title 46, United 
        States Code.
            ``(3) Clean vessel act.--An amount equal to 2.0 
        percent to the Secretary of the Interior for qualified 
        projects under section 5604(c) of the Clean Vessel Act 
        of 1992 (33 U.S.C. 1322 note).
            ``(4) Boating infrastructure.--An amount equal to 
        2.0 percent to the Secretary of the Interior for 
        obligation for qualified projects under section 7404(d) 
        of the Sportfishing and Boating Safety Act of 1998 (16 
        U.S.C. 777g-1(d)).
            ``(5) National outreach and communications.--An 
        amount equal to 2.0 percent to the Secretary of the 
        Interior for the National Outreach and Communications 
        Program under section 8(d) of this Act. Such amounts 
        shall remain available for 3 fiscal years, after which 
        any portion thereof that is unobligated by the 
        Secretary for that program may be expended by the 
        Secretary under subsection (c) of this section.'';
            (3) by striking (b)(1)(A), as redesignated by 
        paragraph (1), and inserting the following:
                    ``(A) Set-aside for administration.--From 
                the annual appropriation made in accordance 
                with section 3, for each of fiscal years 2006 
                through 2009, the Secretary of the Interior may 
                use no more than the amount specified in 
                subparagraph (B) for the fiscal year for 
                expenses for administration incurred in the 
                implementation of this Act, in accordance with 
                this section and section 9. The amount 
                specified in subparagraph (B) for a fiscal year 
                may not be included in the amount of the annual 
                appropriation distributed under subsection (a) 
                for the fiscal year.'';
            (4) by striking ``Secretary of the Interior, after 
        the distribution, transfer, use, and deduction under 
        subsections (a), (b), (c), and (d), respectively, and 
        after deducting amounts used for grants under section 
        14, shall apportion the remainder'' in subsection (c), 
        as redesignated by paragraph (1), and inserting 
        ``Secretary, for each of fiscal years 2006 through 
        2009, after the distribution, transfer, use and 
        deduction under subsection (b), and after deducting 
        amounts used for grants under section 14 of this title, 
        shall apportion 57 percent of the balance'';
            (5) by striking ``per centum'' each place it 
        appears in subsection (c), as redesignated by paragraph 
        (1), and inserting ``percent'';
            (6) by striking ``subsections (a), (b)(3)(A), 
        (b)(3)(B), and (c)'' in paragraph (1) of subsection 
        (e), as redesignated by paragraph (1), and inserting 
        ``paragraphs (1), (3), (4), and (5) of subsection 
        (a)''; and
            (7) by adding at the end the following:
    ``(f) Transfer of Certain Funds.--Amounts available under 
paragraphs (3) and (4) of subsection (a) that are unobligated 
by the Secretary of the Interior after 3 fiscal years shall be 
transferred to the Secretary of the department in which the 
Coast Guard is operating and shall be expended for State 
recreational boating safety programs under section 13106(a) of 
title 46, United States Code.''.

SEC. 10114. MAINTENANCE OF PROJECTS.

    Section 8 (16 U.S.C. 777g) is amended--
            (1) by striking ``in carrying out the research 
        program of the Fish and Wildlife Service in respect to 
        fish of material value for sport or recreation.'' in 
        subsection (b)(2) and inserting ``to supplement the 57 
        percent of the balance of each annual appropriation to 
        be apportioned among the States under section 4(c).''; 
        and
            (2) by striking ``subsection (c) or (d)'' in 
        subsection (d)(3) and inserting ``subsection (a)(5) or 
        subsection (b)''.

SEC. 10115. BOATING INFRASTRUCTURE.

    Section 7404(d)(1) of the Sportfishing and Boating Safety 
Act of 1998 (16 U.S.C. 777g-1(d)(1)) is amended by striking 
``section 4(b)(3)(B) of the Act entitled `An Act to provide 
that the United States shall aid the States in fish restoration 
and management projects, and for other purposes,' approved 
August 9, 1950, as amended by this Act,'' and inserting 
``section 4(a)(4) of the Dingell-Johnson Sport Fish Restoration 
Act''.

SEC. 10116. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF AMOUNTS FOR 
                    EXPENSES FOR ADMINISTRATION.

    Section 9 (16 U.S.C. 777h) is amended--
            (1) by striking ``section 4(d)(1)'' in subsection 
        (a) and inserting ``section 4(b)''; and
            (2) by striking ``section 4(d)(1)'' in subsection 
        (b)(1) and inserting ``section 4(b)''.

SEC. 10117. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO RICO, THE 
                    DISTRICT OF COLUMBIA, GUAM, AMERICAN SAMOA, THE 
                    COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS, AND 
                    THE VIRGIN ISLANDS.

    Section 12 (16 U.S.C. 777k) is amended by striking ``in 
carrying on the research program of the Fish and Wildlife 
Service in respect to fish of material value for sport or 
recreation.'' and inserting ``to supplement the 57 percent of 
the balance of each annual appropriation to be apportioned 
among the States under section 4(b) of this Act.''.

SEC. 10118. MULTISTATE CONSERVATION GRANT PROGRAM.

    Section 14 (16 U.S.C. 777m) is amended--
            (1) by striking so much of subsection (a) as 
        precedes paragraph (2) and inserting the following:
    ``(a) In General.--
            ``(1) Amount for grants.--For each of fiscal years 
        2006 through 2009, not more than $3,000,000 of each 
        annual appropriation made in accordance with the 
        provisions of section 3 shall be distributed to the 
        Secretary of the Interior for making multistate 
        conservation project grants in accordance with this 
        section.'';
            (2) by striking ``section 4(e)'' each place it 
        appears in subsection (a)(2)(B) and inserting ``section 
        4(c)''; and
            (3) by striking ``Of the balance of each annual 
        appropriation made under section 3 remaining after the 
        distribution and use under subsections (a), (b), and 
        (c) of section 4 for each fiscal year and after 
        deducting amounts used for grants under subsection 
        (a)--'' in subsection (e) and inserting ``Of amounts 
        made available under section 4(b) for each fiscal 
        year--''.

SEC. 10119. EXPENDITURE OF REMAINING BALANCE IN BOAT SAFETY ACCOUNT.

    The Act is amended by redesignating section 15 (16 U.S.C. 
777 note) as section 16, and by inserting after section 14 the 
following:

``SEC. 15. EXPENDITURE OF REMAINING BALANCE IN BOAT SAFETY ACCOUNT.

    ``Amounts remaining in the Boat Safety Account on October 
1, 2005, and amounts thereafter credited to the Account under 
section 9602(b) of the Internal Revenue Code of 1986, shall be 
available, without further appropriation, for making 
expenditures before October 1, 2010, to carry out the purposes 
of this section and shall be distributed as follows:
            ``(1) In fiscal year 2006, $28,155,000 shall be 
        distributed--
                    ``(A) under section 4 of this Act in the 
                following manner:
                            ``(i) $11,200,000 to be added to 
                        funds available under subsection (a)(2) 
                        of that section;
                            ``(ii) $1,245,000 to be added to 
                        funds available under subsection (a)(3) 
                        of that section;
                            ``(iii) $1,245,000 to be added to 
                        funds available under subsection (a)(4) 
                        of that section;
                            ``(iv) $1,245,000 to be added to 
                        funds available under subsection (a)(5) 
                        of that section; and
                            ``(v) $12,800,000 to be added to 
                        funds available under subsection (b) of 
                        that section; and
                    ``(B) under section 14 of this Act, 
                $420,000, to be added to funds available under 
                subsection (a)(1) of that section.
            ``(2) In fiscal year 2007, $22,419,000 shall be 
        distributed--
                    ``(A) under section 4 of this Act in the 
                following manner:
                            ``(i) $8,075,000 to be added to 
                        funds available under subsection (a)(2) 
                        of that section;
                            ``(ii) $713,000 to be added to 
                        funds available under subsection (a)(3) 
                        of that section;
                            ``(iii) $713,000 to be added to 
                        funds available under subsection (a)(4) 
                        of that section;
                            ``(iv) $713,000 to be added to 
                        funds available under subsection (a)(5) 
                        of that section; and
                            ``(v) $11,925,000 to be added to 
                        funds available under subsection (b) of 
                        this Act; and
                    ``(B) under section 14 of this Act, 
                $280,000 to be added to funds available under 
                subsection (a)(1) of that section.
            ``(3) In fiscal year 2008, $17,139,000 shall be 
        distributed--
                    ``(A) under section 4 of this Act in the 
                following manner:
                            ``(i) $6,800,000 to be added to 
                        funds available under subsection (a)(2) 
                        of that section;
                            ``(ii) $333,000 to be added to 
                        funds available under subsection (a)(3) 
                        of that section;
                            ``(iii) $333,000 to be added to 
                        funds available under subsection (a)(4) 
                        of that section;
                            ``(iv) $333,000 to be added to 
                        funds available under subsection (a)(5) 
                        of that section; and
                            ``(v) $9,200,000 to be added to 
                        funds available under subsection (b) of 
                        that section; and
                    ``(B) under section 14 of this Act, 
                $140,000, to be added to funds available under 
                subsection (a)(1) of that section.
            ``(4) In fiscal year 2009, $12,287,000 shall be 
        distributed--
                    ``(A) under section 4 of this Act in the 
                following manner:
                            ``(i) $5,100,000 to be added to 
                        funds available under subsection (a)(2) 
                        of that section;
                            ``(ii) $48,000 to be added to funds 
                        available under subsection (a)(3) of 
                        that section;
                            ``(iii) $48,000 to be added to 
                        funds available under subsection (a)(4) 
                        of that section;
                            ``(iv) $48,000 to be added to funds 
                        available under subsection (a)(5) of 
                        that section; and
                            ``(v) $6,900,000 to be added to 
                        funds available under subsection (b) of 
                        that section; and
                    ``(B) under section 14 of this Act, 
                $143,000, to be added to funds available under 
                subsection (a)(1) of that section.
            ``(5) In fiscal year 2010, all remaining funds in 
        the Account shall be distributed under section 4 of 
        this Act in the following manner:
                    ``(A) one-third to be added to funds 
                available under subsection (b); and
                    ``(B) two-thirds to be added to funds 
                available under subsection (h).''.

             CHAPTER 2--CLEAN VESSEL ACT OF 1992 AMENDMENTS

SEC. 10131. GRANT PROGRAM.

    Section 5604(c)(2) of the Clean Vessel Act of 1992 (33 
U.S.C. 1322 note) is amended--
            (1) by striking subparagraph (A);
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (A) and (B), respectively; and
            (3) in subparagraph (A), as so redesignated, by 
        striking ``receptions'' and inserting ``reception''.

       CHAPTER 3--RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS

SEC. 10141. TECHNICAL CORRECTION.

    Section 13102(a) of title 46, United States Code, is 
amended by striking ``the Boat Safety Account'' and inserting 
``the Sport Fish Restoration and Boating Trust Fund''.

SEC. 10142. AVAILABILITY OF ALLOCATIONS.

    Section 13104(a) of title 46, United States Code, is 
amended--
            (1) by striking ``2 years'' in paragraph (1) and 
        inserting ``3 years''; and
            (2) by striking ``2-year'' in paragraph (2) and 
        inserting ``3-year''.

SEC. 10143. AUTHORIZATION OF APPROPRIATIONS FOR STATE RECREATIONAL 
                    BOATING SAFETY PROGRAMS.

    Section 13106 of title 46, United States Code, is amended--
            (1) in subsection (a)(1) by striking ``the amount 
        appropriated from the Boat Safety Account for that 
        fiscal year'' and inserting ``the amount made available 
        from the Boat Safety Account for that fiscal year under 
        section 10119 of the Sportfishing and Recreational 
        Boating Safety Act of 2005'';
            (2) in subsection (a)(1) by striking ``section 4(b) 
        of the Act of August 9, 1950 (16 U.S.C. 777c(b))'' and 
        inserting ``subsection (a)(2) of section 4 of the 
        Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 
        777c(a)(2))'';
            (3) in subsection (a)(2) by striking ``not less 
        than one percent and'';
            (4) in subsection (c)(1)--
                    (A) by striking ``Secretary of 
                Transportation under paragraph (5)(C) of 
                section 4(b)'' and inserting ``Secretary under 
                subsection (a)(2) of section 4'';
                    (B) by striking ``(16 U.S.C. 777c(b))'' and 
                inserting ``(16 U.S.C. 777c(a)(2)'';
                    (C) by striking ``$3,333,336'' and 
                inserting ``$4,266,666'';
                    (D) by striking ``$1,333,336'' and 
                inserting ``not less than $2,083,333''; and
            (5) in subsection (c)(3) by striking ``until 
        expended.'' and inserting ``during the 2 succeeding 
        fiscal years. Any amount that is unexpected or 
        unobligated at the end of the 3-year period during 
        which it is available shall be withdrawn by the 
        Secretary and allocated to the States in addition to 
        any other amounts available for allocation in the 
        fiscal year in which they are withdrawn or the 
        following fiscal year.''.

               Subtitle B--Other Miscellaneous Provisions

SEC. 10201. NOTICE REGARDING PARTICIPATION OF SMALL BUSINESS CONCERNS.

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

SEC. 10202. EMERGENCY MEDICAL SERVICES.

    (a) Federal Interagency Committee on Emergency Medical 
Services.--
            (1) Establishment.--The Secretary of 
        Transportation, the Secretary of Health and Human 
        Services, and the Secretary of Homeland Security, 
        acting through the Under Secretary for Emergency 
        Preparedness and Response, shall establish a Federal 
        Interagency Committee on Emergency Medical Services.
            (2) Membership.--The Interagency Committee shall 
        consist of the following officials, or their designees:
                    (A) The Administrator, National Highway 
                Traffic Safety Administration.
                    (B) The Director, Preparedness Division, 
                Directorate of Emergency Preparedness and 
                Response of the Department of Homeland 
                Security.
                    (C) The Administrator, Health Resources and 
                Services Administration, Department of Health 
                and Human Services.
                    (D) The Director, Centers for Disease 
                Control and Prevention, Department of Health 
                and Human Services.
                    (E) The Administrator, United States Fire 
                Administration, Directorate of Emergency 
                Preparedness and Response of the Department of 
                Homeland Security.
                    (F) The Administrator, Centers for Medicare 
                & Medicaid Services, Department of Health and 
                Human Services.
                    (G) The Under Secretary of Defense for 
                Personnel and Readiness.
                    (H) The Director, Indian Health Service, 
                Department of Health and Human Services.
                    (I) The Chief, Wireless Telecommunications 
                Bureau, Federal Communications Commission.
                    (J) A representative of any other Federal 
                agency appointed by the Secretary of 
                Transportation or the Secretary of Homeland 
                Security through the Under Secretary for 
                Emergency Preparedness and Response, in 
                consultation with the Secretary of Health and 
                Human Services, as having a significant role in 
                relation to the purposes of the Interagency 
                Committee.
                    (K) A State emergency medical services 
                director appointed by the Secretary.
            (3) Purposes.--The purposes of the Interagency 
        Committee are as follows:
                    (A) To ensure coordination among the 
                Federal agencies involved with State, local, 
                tribal, or regional emergency medical services 
                and 9-1-1 systems.
                    (B) To identify State, local, tribal, or 
                regional emergency medical services and 9-1-1 
                needs.
                    (C) To recommend new or expanded programs, 
                including grant programs, for improving State, 
                local, tribal, or regional emergency medical 
                services and implementing improved emergency 
                medical services communications technologies, 
                including wireless 9-1-1.
                    (D) To identify ways to streamline the 
                process through which Federal agencies support 
                State, local, tribal or regional emergency 
                medical services.
                    (E) To assist State, local, tribal or 
                regional emergency medical services in setting 
                priorities based on identified needs.
                    (F) To advise, consult, and make 
                recommendations on matters relating to the 
                implementation of the coordinated State 
                emergency medical services programs.
            (4) Administration.--The Administrator of the 
        National Highway Traffic Safety Administration, in 
        cooperation with the Administrator of the Health 
        Resources and Services Administration of the Department 
        of Health and Human Services and the Director of the 
        Preparedness Division, Directorate of Emergency 
        Preparedness and Response of the Department of Homeland 
        Security, shall provide administrative support to the 
        Interagency Committee, including scheduling meetings, 
        setting agendas, keeping minutes and records, and 
        producing reports.
            (5) Leadership.--The members of the Interagency 
        Committee shall select a chairperson of the Committee 
        each year.
            (6) Meetings.--The Interagency Committee shall meet 
        as frequently as is determined necessary by the 
        chairperson of the Committee.
            (7) Annual reports.--The Interagency Committee 
        shall prepare an annual report to Congress regarding 
        the Committee's activities, actions, and 
        recommendations.

SEC. 10203. HUBZONE PROGRAM.

    Section 3(p)(4)(B)(ii) of the Small Business Act (15 U.S.C. 
632(p)(4)(B)(ii)) is amended--
            (1) in subclause (I) by striking ``or'' at the end;
            (2) in subclause (II) by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding after subclause (II) the following:
                                    ``(III) there is located a 
                                difficult development area, as 
                                designated by the Secretary of 
                                Housing and Urban Development 
                                in accordance with section 
                                42(d)(5)(C)(iii) of the 
                                Internal Revenue Code of 1986, 
                                within Alaska, Hawaii, or any 
                                territory or possession of the 
                                United States outside the 48 
                                contiguous States.''.

SEC. 10204. CATASTROPHIC HURRICANE EVACUATION PLANS.

    (a) In General.--The Secretary and the Secretary of 
Homeland Security (referred to in this section as the 
``Secretaries''), in coordination with the Gulf Coast States 
and contiguous States, shall jointly review and assess Federal 
and State evacuation plans for catastrophic hurricanes 
impacting the Gulf Coast Region and report its findings and 
recommendations to Congress.
    (b) Consultation.--In carrying out this section, the 
Secretaries shall consult with appropriate Federal, State, and 
local transportation and emergency management agencies.
    (c) Contents.--In conducting the review, the Secretaries 
shall consider, at a minimum--
            (1) all practical modes of transportation available 
        for evacuations;
            (2) the extent to which evacuation plans are 
        coordinated with neighboring States;
            (3) methods of communicating evacuation plans and 
        preparing citizens in advance of evacuations; and
            (4) methods of coordinating communication with 
        evacuees during plan execution.
    (d) Report.--The Secretaries shall submit to Congress a 
report of their findings under this section and recommendations 
not later than October 1, 2006.

SEC. 10205. INTERMODAL TRANSPORTATION FACILITY EXPANSION.

    Any funds provided for the Federal share, and any funds 
provided for the non-Federal share, for an intermodal 
transportation maritime facility at the Port of Anchorage, 
Alaska, or for access to that facility shall be transferred to 
and administered by the Administrator of the Maritime 
Administration.

SEC. 10206. ELIGIBILITY TO PARTICIPATE IN WESTERN ALASKA COMMUNITY 
                    DEVELOPMENT QUOTA PROGRAM.

    A community shall be eligible to participate in the western 
Alaska community development quota program established under 
section 305(i) of the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1855(i)) if the community--
            (1) is listed in table 7 to part 679 of title 50, 
        Code of Federal Regulations, as in effect on March 8, 
        2004; or
            (2) was determined to be eligible participate in 
        such program by the National Marine Fisheries Service 
        on April 19, 1999.

SEC. 10207. RAIL REHABILITATION AND BRIDGE REPAIR.

    There are authorized to be appropriated to the Secretary of 
Transportation for rail rehabilitation and bridge repair in the 
State of Alabama for the period encompassing fiscal years 2006 
through 2010 such sums as may be necessary, for work on--
            (1) the Luxapalila Valley Railroad from the 
        Mississippi and Alabama State line east to Belk, 
        Alabama;
            (2) the Meridian & Bigbee Railroad from the 
        Mississippi and Alabama State line east to Burkeville, 
        Alabama;
            (3) the Three Notch Railroad from Georgiana, 
        Alabama, to Andalusia, Alabama;
            (4) the Wiregrass Railroad in Alabama;
            (5) the Alabama & Gulf Coast Railroad from the 
        Mississippi and Alabama State line southeast to Mobile 
        and Atmore in Alabama; and
            (6) the railroad bridge that spans the Coosa River, 
        connecting the east and west sides of the City of 
        Gadsden, Alabama.

SEC. 10208. RENTED OR LEASED MOTOR VEHICLES.

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

``Sec. 30106. Rented or leased motor vehicle safety and responsibility

    ``(a) In General.--An owner of a motor vehicle that rents 
or leases the vehicle to a person (or an affiliate of the 
owner) shall not be liable under the law of any State or 
political subdivision thereof, by reason of being the owner of 
the vehicle (or an affiliate of the owner), for harm to persons 
or property that results or arises out of the use, operation, 
or possession of the vehicle during the period of the rental or 
lease, if--
            ``(1) the owner (or an affiliate of the owner) is 
        engaged in the trade or business of renting or leasing 
        motor vehicles; and
            ``(2) there is no negligence or criminal wrongdoing 
        on the part of the owner (or an affiliate of the 
        owner).
    ``(b) Financial Responsibility Laws.--Nothing in this 
section supersedes the law of any State or political 
subdivision thereof--
            ``(1) imposing financial responsibility or 
        insurance standards on the owner of a motor vehicle for 
        the privilege of registering and operating a motor 
        vehicle; or
            ``(2) imposing liability on business entities 
        engaged in the trade or business of renting or leasing 
        motor vehicles for failure to meet the financial 
        responsibility or liability insurance requirements 
        under State law.
    ``(c) Applicability and Effective Date.--Notwithstanding 
any other provision of law, this section shall apply with 
respect to any action commenced on or after the date of 
enactment of this section without regard to whether the harm 
that is the subject of the action, or the conduct that caused 
the harm, occurred before such date of enactment.
    ``(d) Definitions.--In this section, the following 
definitions apply:
            ``(1) Affiliate.--The term `affiliate' means a 
        person other than the owner that directly or indirectly 
        controls, is controlled by, or is under common control 
        with the owner. In the preceding sentence, the term 
        `control' means the power to direct the management and 
        policies of a person whether through ownership of 
        voting securities or otherwise.
            ``(2) Owner.--The term `owner' means a person who 
        is--
                    ``(A) a record or beneficial owner, holder 
                of title, lessor, or lessee of a motor vehicle;
                    ``(B) entitled to the use and possession of 
                a motor vehicle subject to a security interest 
                in another person; or
                    ``(C) a lessor, lessee, or a bailee of a 
                motor vehicle, in the trade or business of 
                renting or leasing motor vehicles, having the 
                use or possession thereof, under a lease, 
                bailment, or otherwise.
            ``(3) Person.--The term `person' means any 
        individual, corporation, company, limited liability 
        company, trust, association, firm, partnership, 
        society, joint stock company, or any other entity.''.
    (b) Clerical Amendment.--The analysis for such chapter is 
amended by inserting after the item relating to section 30105 
the following:

``30106. Rented or leased motor vehicle safety and responsibility.''.

SEC. 10209. MIDWAY ISLAND.

    (a) Grants.--In order to provide for both the safety of 
commercial and military aviation operations and the support of 
resource management in the remote Pacific, the Commandant of 
the Coast Guard, in consultation with the Secretary of 
Transportation and the Undersecretary of Commerce for Oceans 
and Atmosphere, shall develop such memoranda of understanding 
as may be necessary, and to make grants or otherwise provide 
funding, to provide for the operation of the Midway Airport, 
the rightsizing of necessary infrastructure and support 
facilities, the maintenance and development of the Airport, and 
other related matters.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated to the United States Coast Guard, the 
Department of Transportation, and the National Oceanic and 
Atmospheric Administration such sums as may be necessary to 
carry out this section for fiscal years 2006 through 2009.

SEC. 10210. DEMONSTRATION OF DIGITAL PROJECT SIMULATION.

    (a) In General.--
            (1) Digital project simulation demonstration 
        project.--The Secretary shall establish a demonstration 
        initiative using digital project simulation to plan, 
        design, and construct the project listed in item 31 
        designated in section 1934 of the SAFETEA-LU.
            (2) Cooperation.--To be eligible to receive funds 
        made available for the project referred to in paragraph 
        (1), the project sponsor, including private entities 
        working with the project sponsor on the project, and 
        the State shall enter into an agreementto work 
cooperatively with the Secretary to use digital project simulation for 
such project and to evaluate the effectiveness of using such 
simulation.
    (b) Simulation Program Development.--
            (1) In general.--In establishing the demonstration 
        initiative under subsection (a), the Secretary shall 
        provide, to the extent practicable, that--
                    (A) the planning, design, and construction 
                of the project is carried out by using digital 
                project simulation to achieve savings and 
                efficiency in investment planning, project 
                delivery coordination, and facility management; 
                and
                    (B) in constructing such project, the 
                project sponsor use digital lifecycle 
                management techniques, including the use of 
                embedded electronics and software to monitor 
                performance of the infrastructure and provide 
                safety and security information to the project 
                sponsor.
            (2) Collaboration.--The Secretary, the State, and 
        the project sponsor may consult with technology 
        companies and educational institutions that strive to 
        develop and enhance technologies, including digital 
        project simulation, that save money and time by using 
        efficient methods of design, construction, and 
        operation for transportation infrastructure projects.
    (c) Report.--
            (1) In general.--Not later than one year after 
        completion of the project described in subsection (a), 
        the Secretary shall submit to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and 
        Public Works of the Senate a detailed report comparing 
        the application of digital project simulation for such 
        project to more traditional approaches to planning, 
        design, and construction.
            (2) Performance measures and recommendations.--The 
        report shall also include--
                    (A) a description of the performance 
                measures applied, including cost comparisons 
                and length of construction; and
                    (B) recommendations, if any, for 
                administrative or legislative action.
    (d) Definition.--For purposes of this section, the term 
``digital project simulation'' means computer-assisted three-
dimensional technology and digital lifecycle management.

SEC. 10211. ENVIRONMENTAL PROGRAMS.

    (a) Oklahoma.--Notwithstanding any other provision of law, 
if the Administrator of the Environmental Protection Agency 
(referred to in this section as the ``Administrator'') 
determines that a regulatory program submitted by the State of 
Oklahoma for approval by the Administrator under a law 
administered by the Administrator meets applicable requirements 
of the law, and the Administrator approves the State to 
administer the State program under the law with respect to 
areas in the State that are not Indian country, on request of 
the State, the Administrator shall approve the State to 
administer the State program in the areas of the State that are 
in Indian country, without any further demonstration of 
authority by the State.
    (b) Treatment as State.--Notwithstanding any other 
provision of law, the Administrator may treat an Indian tribe 
in the State of Oklahoma as a State under a law administered by 
the Administrator only if--
            (1) the Indian tribe meets requirements under the 
        law to be treated as a State; and
            (2) the Indian tribe and the agency of the State of 
        Oklahoma with federally delegated program authority 
        enter into a cooperative agreement, subject to review 
        and approval of the Administrator after notice and 
        opportunity for public hearing, under which the Indian 
        tribe and that State agency agree to treatment of the 
        Indian tribe as a State and to jointly plan administer 
        program requirements.

SEC. 10212. RESCISSION OF UNOBLIGATED BALANCES.

    (a) In General.--On September 30, 2009, $8,543,000,000 of 
the unobligated balances of funds apportioned before such date 
to the States for the Interstate maintenance, national highway 
system, bridge, congestion mitigation and air quality 
improvement, surface transportation (other than the STP set-
aside programs), metropolitan planning, minimum guarantee, 
Appalachian development highway system, recreational trails, 
safe routes to school, freight intermodal connectors, 
coordinated border infrastructure, high risk rural road, and 
highway safety improvement programs, and each of the STP set-
aside programs, is rescinded.
    (b) Allocation Among States.--The Secretary shall determine 
each State's share of the amount to be rescinded by subsection 
(a) on September 30, 2009, by multiplying $8,543,000,000 by the 
ratio of the aggregate amount apportioned to such State for 
fiscal years 2004 through 2009 for all the programs referred to 
in subsection (a) to the aggregate amount apportioned to all 
States for such fiscal years for those programs.
    (c) Calculations.--To determine the allocation of the 
amount to be rescinded for a State under subsection (b) among 
the programs referred to in subsection (a), the Secretary shall 
make the following calculations:
            (1) The Secretary shall multiply such amount to be 
        rescinded by the ratio that the aggregate amount of 
        unobligated funds available to the State on September 
        30, 2009, for each such program bears to the aggregate 
        amount of unobligated funds available to the State on 
        September 30, 2009, for all such programs.
            (2) The Secretary shall multiply such amount to be 
        rescinded by the ratio that the aggregate of the amount 
        apportioned to the State for each such program for 
        fiscal years 2004 through 2009 bears to the aggregate 
        amount apportioned to the State for all such programs 
        for fiscal years 2004 through 2009.
    (d) Allocation Among Programs.--
            (1) In general.--The Secretary, in consultation 
        with the State, shall rescind for the State from each 
        program referred to in subsection (a) the amount 
        determined for the program under subsection (c)(1).
            (2) Special rule.--
                    (A) Restoration of funds for covered 
                programs.--If the rescission calculated under 
                subsection (c)(1) for a covered program exceeds 
                the amount calculated for the covered program 
                under subsection (c)(2), the State shall 
                immediately restore to the apportionment 
                account for the covered program from the 
                unobligated balances of programs referred to in 
                subsection (a) (other than covered programs) 
                the amount of funds required so that the net 
                rescission from the covered program does not 
                exceed the amount calculated for the covered 
                program under subsection (c)(2).
                    (B) Treatment of restored funds.--Any funds 
                restored under subparagraph (A) shall be deemed 
                to be the funds that were rescinded for the 
                purposes of obligation.
            (3) Covered program defined.--In paragraph (2), the 
        term ``covered program'' means a program authorized 
        under sections 130 and 152 of title 23, United States 
        Code, paragraph (2) or (3) of section 133(d) of that 
        title, section 144 of that title, section 149 of that 
        title, or section 1404 of this Act.
    (e) Treatment of Safety Programs.--In making calculations 
under subsections (c)(1), (c)(2), and (d)(2), the Secretary 
shall treat the STP set-aside program for safety programs and 
the highway safety improvement program as a single program.
    (f) STP Set-Aside Program Defined.--In this section, the 
term ``STP set-aside program'' means the amount set aside under 
section 133(d) of title 23, United States Code, for each of the 
safety programs, transportation enhancement activities, and 
division between urbanized areas of over 200,000 population and 
other areas.

SEC. 10213. TRIBAL LAND.

    Section 707(a) of Public Law 106-568 (25 U.S.C. 1041e(a)) 
is amended--
            (1) in paragraph (1) by striking ``(1) In 
        general.--''; and
            (2) by striking paragraph (2).

          Subtitle C--Specific Vehicle Safety-related Rulings

SEC. 10301. VEHICLE ROLLOVER PREVENTION AND CRASH MITIGATION.

    (a) In General.--Subchapter II of chapter 301 is amended by 
adding at the end the following:

``Sec. 30128. Vehicle rollover prevention and crash mitigation

    ``(a) In General.--The Secretary shall initiate rulemaking 
proceedings, for the purpose of establishing rules or standards 
that will reduce vehicle rollover crashes and mitigate deaths 
and injuries associated with such crashes for motor vehicles 
with a gross vehicle weight rating of not more than 10,000 
pounds.
    ``(b) Rollover Prevention.--One of the rulemaking 
proceedings initiated under subsection (a) shall be to 
establish performance criteria to reduce the occurrence of 
rollovers consistent with stability enhancing technologies. The 
Secretary shall issue a proposed rule in this proceeding by 
rule by October 1, 2006, and a final rule by April 1, 2009.
    ``(c) Occupant Ejection Prevention.--
            ``(1) In general.--The Secretary shall also 
        initiate a rulemaking proceeding to establish 
        performance standards to reduce complete and partial 
        ejections of vehicle occupants from outboard seating 
        positions. In formulating the standards the Secretary 
        shall consider various ejection mitigation systems. The 
        Secretary shall issue a final rule under this paragraph 
        no later than October 1, 2009.
            ``(2) Door locks and door retention.--The Secretary 
        shall complete the rulemaking proceeding initiated to 
        upgrade Federal Motor Vehicle Safety Standard No. 206, 
        relating to door locks and door retention, no later 
        than 30 months after the date of enactment of this 
        section.
    ``(d) Protection of Occupants.--One of the rulemaking 
proceedings initiated under subsection (a) shall be to 
establish performance criteria to upgrade Federal Motor Vehicle 
Safety Standard No. 216 relating to roof strength for driver 
and passenger sides. The Secretary may consider industry and 
independent dynamic tests that realistically duplicate the 
actual forces transmitted during a rollover crash. The 
Secretary shall issue a proposed rule by December 31, 2005, and 
a final rule by July 1, 2008.
    ``(e) Deadlines.--If the Secretary determines that the 
deadline for a final rule under this section cannot be met, the 
Secretary shall--
            ``(1) notify the Senate Committee on Commerce, 
        Science, and Transportation and the House of 
        Representatives Committee on Energy and Commerce and 
        explain why that deadline cannot be met; and
            ``(2) establish a new deadline.''.

SEC. 10302. SIDE-IMPACT CRASH PROTECTION RULEMAKING.

    (a) Rulemaking.--The Secretary shall complete a rulemaking 
proceeding under chapter 301 of title 49, United States Code, 
to establish a standard designed to enhance passenger motor 
vehicle occupant protection, in all seating positions, in side 
impact crashes. The Secretary shall issue a final rule by July 
1, 2008.
    (b) Deadlines.--If the Secretary determines that the 
deadline for a final rule under this section cannot be met, the 
Secretary shall--
            (1) notify the Senate Committee on Commerce, 
        Science, and Transportation and the House of 
        Representatives Committee on Energy and Commerce and 
        explain why that deadline cannot be met; and
            (2) establish a new deadline.

SEC. 10303. TIRE RESEARCH.

    Within 2 years after the date of enactment of this Act, the 
Secretary shall transmit a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of 
Representatives Committee on Energy and Commerce on research 
conducted to address tire aging. The report shall include a 
summary of any Federal agency findings, activities, 
conclusions, and recommendations concerning tire aging and 
recommendations for potential rulemaking regarding tire aging.
    (a) Conforming Amendment.--The chapter analysis for chapter 
301 is amended by inserting after the item relating to section 
30127 the following:

``30128. Vehicle accident ejection protection.''.

SEC. 10304. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY.

    (a) In General.--The Administrator of the National Highway 
Traffic Safety Administration shall conduct a study of 
effective methods for reducing the incidence of injury and 
death outside of parked passenger motor vehicles with a gross 
vehicle weight rating of not more than 10,000 pounds 
attributable to movement of such vehicles. The Administrator 
shall complete the study within 1 year after the date of 
enactment of this Act and report its findings to the Senate 
Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Energy and Commerce not 
later than 15 months after the date of enactment of this Act.
    (b) Specific Issues To Be Covered.--The study required by 
subsection (a) shall--
            (1) include an analysis of backover prevention 
        technology;
            (2) identify, evaluate, and compare the available 
        technologies for detecting people or objects behind a 
        motor vehicle with a gross vehicle weight rating of not 
        more than 10,000 pounds for their accuracy, 
        effectiveness, cost, and feasibility for installation; 
        and
            (3) provide an estimate of cost savings that would 
        result from widespread use of backover prevention 
        devices and technologies in motor vehicles with a gross 
        vehicle weight rating of not more than 10,000 pounds, 
        including savings attributable to the prevention of--
                    (A) injuries and fatalities; and
                    (B) damage to bumpers and other motor 
                vehicle parts and damage to other objects.

SEC. 10305. NONTRAFFIC INCIDENT DATA COLLECTION.

    (a) In General.--In conjunction with the study required in 
section 10304, the National Highway Traffic Safety 
Administration shall establish a method to collect and maintain 
data on the number and types of injuries and deaths involving 
motor vehicles with a gross vehicle weight rating of not more 
than 10,000 pounds in non-traffic incidents.
    (b) Data Collection and Publication.--The Secretary of 
Transportation shall publish the data collected under 
subsection (a) no less frequently than biennially.

SEC. 10306. STUDY OF SAFETY BELT USE TECHNOLOGIES.

    The Secretary shall conduct a review of safety belt use 
technologies to consider possible revisions in strategies for 
achieving further gains in safety belt use. The Secretary shall 
complete the study by July 1, 2008.

SEC. 10307. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE ACT.

    (a) Safety Labeling Requirement.--Section 3 of the 
Automobile Information Disclosure Act (15 U.S.C. 1232) is 
amended--
            (1) by striking ``and'' after the semicolon in 
        subsection (e);
            (2) by inserting ``and'' after the semicolon in 
        subsection (f)(3);
            (3) by striking ``(3).'' in subsection (f)(4) and 
        inserting ``(3);''; and
            (4) by adding at the end the following:
    ``(g) if 1 or more safety ratings for such automobile have 
been assigned and formally published or released by the 
National Highway Traffic Safety Administration under the New 
Car Assessment Program, information about safety ratings that--
            ``(1) includes a graphic depiction of the number of 
        stars, or other applicable rating, that corresponds to 
        each such assigned safety rating displayed in a clearly 
        differentiated fashion indicating the maximum possible 
        safety rating;
            ``(2) refers to frontal impact crash tests, side 
        impact crash tests, and rollover resistance tests 
        (whether or not such automobile has been assigned a 
        safety rating for such tests);
            ``(3) contains information describing the nature 
        and meaning of the crash test data presented and a 
        reference 
        to additional vehicle safety resources, including 
        http://www.safecar.gov; and
            ``(4) is presented in a legible, visible, and 
        prominent fashion and covers at least--
                    ``(A) 8 percent of the total area of the 
                label; or
                    ``(B) an area with a minimum length of 4\1/
                2\ inches and a minimum height of 3\1/2\ 
                inches; and
    ``(h) if an automobile has not been tested by the National 
Highway Traffic Safety Administration under the New Car 
Assessment Program, or safety ratings for such automobile have 
not been assigned in one or more rating categories, a statement 
to that effect.''.
    (b) Regulations.--The Secretary of Transportation shall 
issue regulations to ensure that the labeling requirements 
under subsections (g) and (h) of section 3 of the Automobile 
Information Disclosure Act, as added by subsection (a), are 
implemented by September 1, 2007.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Transportation, to 
accelerate the testing processes and increasing the number of 
vehicles tested under the New Car Assessment Program of the 
National Highway Traffic Safety Administration--
            (1) $15,000,000 for fiscal year 2006;
            (2) $8,134,065 for fiscal year 2007;
            (3) $8,418,760 for fiscal year 2008;
            (4) $8,713,410 for fiscal year 2009; and
            (5) $9,018,385 for fiscal year 2010.

SEC. 10308. POWER WINDOW SWITCHES.

    The Secretary shall upgrade Federal Motor Vehicle Safety 
Standard 118 to require that power windows in motor vehicles 
not in excess of 10,000 pounds have switches that raise the 
window only when the switch is pulled up or out. The Secretary 
shall issue a final rule implementing this section by April 1, 
2007.

SEC. 10309. 15-PASSENGER VAN SAFETY.

    (a) Testing.--
            (1) In general.--The Secretary of Transportation 
        shall require the testing of 15-passenger vans as part 
        of the rollover resistance program of the National 
        Highway Traffic Safety Administration's new car 
        assessment program.
            (2) 15-passenger van defined.--In this subsection, 
        the term ``15-passenger van'' means a vehicle that 
        seats 10 to 14 passengers, not including the driver.
    (b) Prohibition of Purchase, Rental, or Lease of 
Noncomplying 15-Passenger Vans for School Use.--Section 
30112(a) is amended--
            (1) by inserting ``(1)'' before ``Except as 
        provided''; and
            (2) by adding at the end the following:
            ``(2) Except as provided in this section, sections 
        30113 and 30114 of this title, and subchapter III of 
        this chapter, a school or school system may not 
        purchase or lease a new 15-passenger van if it will be 
        used significantly by, or on behalf of, the school or 
        school system to transport preprimary, primary, or 
        secondary school students to or from school or an event 
        related to school, unless the 15-passenger van complies 
        with the motor vehicle standards prescribed for school 
        buses and multifunction school activity buses under 
        this title. This paragraph does not apply to the 
        purchase or lease of a 15-passenger van under a 
        contract executed before the date of enactment of this 
        paragraph.''.
    (c) Penalty.--Section 30165(a) is amended--
            (1) by redesignating paragraph (2) as paragraph 
        (3); and
            (2) by inserting after paragraph (1) the following:
            ``(2) School buses.--
                    ``(A) In general.--Notwithstanding 
                paragraph (1), the maximum amount of a civil 
                penalty under this paragraph shall be $10,000 
                in the case of--
                          ``(i) the manufacture, sale, offer 
                        for sale, introduction or delivery for 
                        introduction into interstate commerce, 
                        or importation of a school bus or 
                        school bus equipment (as those terms 
                        are defined in section 30125(a) of this 
                        title) in violation of section 
                        30112(a)(1) of this title; or
                          ``(ii) a violation of section 
                        30112(a)(2) of this title.
                            ``(B) Related series of 
                        violations.--A separate violation 
                        occurs for each motor vehicle or item 
                        of motor vehicle equipment and for each 
                        failure or refusal to allow or perform 
                        an act required by that section. The 
                        maximum penalty under this paragraph 
                        for a related series of violations is 
                        $15,000,000.''.

SEC. 10310. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to 
carry out this subtitle, chapter 301 of title 49, and part C of 
subtitle VI of title 49, United States Code--
            (1) $136,000,000 for fiscal year 2006;
            (2) $142,800,000 for fiscal year 2007;
            (3) $149,900,000 for fiscal year 2008; and
            (4) $157,400,000 for fiscal year 2009.

    TITLE XI--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

SEC. 1100. AMENDMENT OF 1986 CODE.

    Except as otherwise expressly provided, whenever in this 
title an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

                 Subtitle A--Trust Fund Reauthorization

SEC. 1101. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUST FUNDS.

    (a) Extension of Taxes.--
            (1) In general.--The following provisions are each 
        amended by striking ``2005'' each place it appears and 
        inserting ``2011'':
                    (A) Section 4041(a)(1)(C)(iii)(I) (relating 
                to rate of tax on certain buses).
                    (B) Section 4041(a)(2)(B) (relating to rate 
                of tax on special motor fuels).
                    (C) Section 4041(m)(1) (relating to certain 
                alcohol fuels).
                    (D) Section 4051(c) (relating to 
                termination of tax on heavy trucks and 
                trailers).
                    (E) Section 4071(d) (relating to 
                termination of tax on tires).
                    (F) Section 4081(d)(1) (relating to 
                termination of tax on gasoline, diesel fuel, 
                and kerosene).
            (2) Extension of tax, etc., on use of certain heavy 
        vehicles.--The following provisions are each amended by 
        striking ``2006'' each place it appears and inserting 
        ``2011'':
                    (A) Section 4481(f) (relating to period tax 
                in effect).
                    (B) Section 4482(c)(4) (relating to taxable 
                period).
                    (C) Section 4482(d) (relating to special 
                rule for taxable period in which termination 
                date occurs).
            (3) Floor stocks refunds.--Section 6412(a)(1) 
        (relating to floor stocks refunds) is amended--
                    (A) by striking ``2005'' each place it 
                appears and inserting ``2011'', and
                    (B) by striking ``2006'' each place it 
                appears and inserting ``2012''.
    (b) Extension of Certain Exemptions.--
            (1) Certain tax-free sales.--Section 4221(a) 
        (relating to certain tax-free sales) is amended by 
        striking ``2005'' and inserting ``2011''.
            (2) Termination of exemptions for highway use 
        tax.--Section 4483(h) (relating to termination of 
        exemptions for highway use tax) is amended by striking 
        ``2006'' and inserting ``2011''.
    (c) Extension of Transfers of Certain Taxes.--
            (1) In general.--Paragraphs (1) and (2) of 
        subsection (b), and paragraphs (2) and (3) of 
        subsection (c), of section 9503 (relating to the 
        Highway Trust Fund) are each amended--
                    (A) by striking ``2005'' each place it 
                appears and inserting ``2011'', and
                    (B) by striking ``2006'' each place it 
                appears and inserting ``2012''.
            (2) Motorboat and small-engine fuel tax 
        transfers.--
                    (A) In general.--Subparagraph (A) of 
                section 9503(c)(5) is amended by striking 
                ``2005'' and inserting ``2011''.
                    (B) Conforming amendments to land and water 
                conservation fund.--Section 201(b) of the Land 
                and Water Conservation Fund Act of 1965 (16 
                U.S.C. 460l-11(b)) is amended--
                            (i) by striking ``2003'' and 
                        inserting ``2011'', and
                            (ii) by striking ``2004'' each 
                        place it appears and inserting 
                        ``2012''.
    (d) Extension and Expansion of Expenditures From Trust 
Funds.--
            (1) Highway trust fund.--
                    (A) Highway account.--Paragraph (1) of 
                section 9503(c) of such Code is amended to read 
                as follows:
            ``(1) Federal-aid highway program.--Except as 
        provided in subsection (e), amounts in the Highway 
        Trust Fund shall be available, as provided by 
        appropriation Acts, for making expenditures before 
        September 30, 2009 (October 1, 2009, in the case of 
        expenditures for administrative expenses), to meet 
        those obligations of the United States heretofore or 
        hereafter incurred which are authorized to be paid out 
        of the Highway Trust Fund under the Safe, Accountable, 
        Flexible, Efficient Transportation Equity Act: A Legacy 
        for Users or any other provision of law which was 
        referred to in this paragraph before the date of the 
        enactment of such Act (as such Act and provisions of 
        law are in effect on the date of the enactment of such 
        Act).''.
                    (B) Mass transit account.--Paragraph (3) of 
                section 9503(e) of such Code is amended to read 
                as follows:
            ``(3) Expenditures from account.--Amounts in the 
        Mass Transit Account shall be available, as provided by 
        appropriation Acts, for making capital or capital 
        related expenditures (including capital expenditures 
        for new projects) before October 1, 2009, in accordance 
        with the Safe, Accountable, Flexible, Efficient 
        Transportation Equity Act: A Legacy for Users or any 
        other provision of law which was referred to in this 
        paragraph before the date of the enactment of such Act 
        (as such Act and provisions of law are in effect on the 
        date of the enactment of such Act).''.
                    (C) Exception to limitation on transfers.--
                Subparagraph (B) of section 9503(b)(6) is 
                amended by striking ``July 31, 2005'' and 
                inserting ``September 30, 2009 (October 1, 
                2009, in the case of expenditures for 
                administrative expenses)''.
            (2) Aquatic resources trust fund.--
                    (A) Sport fish restoration account.--
                Paragraph (2) of section 9504(b) is amended by 
                striking ``Surface Transportation Extension Act 
                of 2005, Part V'' each place it appears and 
                inserting ``Safe, Accountable, Flexible, 
                Efficient Transportation Equity Act: A Legacy 
                for Users''.
                    (B) Exception to limitation on transfers.--
                Paragraph (2) of section 9504(d) is amended by 
                striking ``July 31, 2005'' and inserting 
                ``October 1, 2009''.
    (e) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act.

SEC. 1102. MODIFICATION OF ADJUSTMENTS OF APPORTIONMENTS.

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

            Subtitle B--Excise Tax Reform and Simplification

                      PART 1--HIGHWAY EXCISE TAXES

SEC. 1111. MODIFICATION OF GAS GUZZLER TAX.

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

SEC. 1112. EXCLUSION FOR TRACTORS WEIGHING 19,500 POUNDS OR LESS FROM 
                    FEDERAL EXCISE TAX ON HEAVY TRUCKS AND TRAILERS.

    (a) In General.--Subsection (a) of section 4051 (relating 
to imposition of tax) is amended by redesignating paragraph (4) 
as paragraph (5) and by inserting after paragraph (3) the 
following new paragraph:
            ``(4) Exclusion for tractors weighing 19,500 pounds 
        or less.--The tax imposed by paragraph (1) shall not 
        apply to tractors of the kind chiefly used for highway 
        transportation in combination with a trailer or 
        semitrailer if--
                    ``(A) such tractor has a gross vehicle 
                weight of 19,500 pounds or less (as determined 
                by the Secretary), and
                    ``(B) such tractor, in combination with a 
                trailer or semitrailer, has a gross combined 
                weight of 33,000 pounds or less (as determined 
                by the Secretary).''.
    (b) Effective Date.--The amendments made by this section 
shall apply to sales after September 30, 2005.

SEC. 1113. VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE FUELS.

    (a) Imposition of Tax.--
            (1) In general.--Section 4041(a)(2)(B) (relating to 
        rate of tax) is amended--
                    (A) by adding ``and'' at the end of clause 
                (i),
                    (B) by striking clauses (ii) and (iii),
                    (C) by striking the last sentence, and
                    (D) by adding after clause (i) the 
                following new clause:
                            ``(ii) in the case of liquefied 
                        natural gas, any liquid fuel (other 
                        than ethanol and methanol) derived from 
                        coal (including peat), and liquid 
                        hydrocarbons derived from biomass (as 
                        defined in section 29(c)(3)), 24.3 
                        cents per gallon.''.
            (2) Treatment of compressed natural gas.--Section 
        4041(a)(3) (relating to compressed natural gas) is 
        amended--
                    (A) by striking ``48.54 cents per MCF 
                (determined at standard temperature and 
                pressure)'' in subparagraph (A) and inserting 
                ``18.3 cents per energy equivalent of a gallon 
                of gasoline'', and
                    (B) by striking ``MCF'' in subparagraph (C) 
                and inserting ``energy equivalent of a gallon 
                of gasoline''.
            (3) New reference.--The heading for paragraph (2) 
        of section 4041(a) is amended by striking ``Special 
        motor fuels'' and inserting ``Alternative fuels''.
    (b) Credit for Alternative Fuel and Alternative Fuel 
Mixtures.--
            (1) In general.--Section 6426(a) (relating to 
        allowance of credits) is amended to read as follows:
    ``(a) Allowance of Credits.--There shall be allowed as a 
credit--
            ``(1) against the tax imposed by section 4081 an 
        amount equal to the sum of the credits described in 
        subsections (b), (c), and (e), and
            ``(2) against the tax imposed by section 4041 an 
        amount equal to the sum of the credits described in 
        subsection (d).
No credit shall be allowed in the case of the credits described 
in subsections (d) and (e) unless the taxpayer is registered 
under section 4101.''.
            (2) Alternative fuel and alternative fuel mixture 
        credit.--Section 6426 (relating to credit for alcohol 
        fuel and biodiesel mixtures) is amended by 
        redesignating subsections (d) and (e) as subsections 
        (f) and (g) and by inserting after subsection (c) the 
        following new subsections:
    ``(d) Alternative Fuel Credit.--
            ``(1) In general.--For purposes of this section, 
        the alternative fuel credit is the product of 50 cents 
        and the number of gallons of an alternative fuel or 
        gasoline gallon equivalents of a nonliquid alternative 
        fuel sold by the taxpayer for use as a fuel in a motor 
        vehicle or motorboat, or so used by the taxpayer.
            ``(2) Alternative fuel.--For purposes of this 
        section, the term `alternative fuel' means--
                    ``(A) liquefied petroleum gas,
                    ``(B) P Series Fuels (as defined by the 
                Secretary of Energy under section 13211(2) of 
                title 42, United States Code),
                    ``(C) compressed or liquefied natural gas,
                    ``(D) liquefied hydrogen,
                    ``(E) any liquid fuel derived from coal 
                (including peat) through the Fischer-Tropsch 
                process, and
                    ``(F) liquid hydrocarbons derived from 
                biomass (as defined in section 29(c)(3)).
        Such term does not include ethanol, methanol, or 
        biodiesel.
            ``(3) Gasoline gallon equivalent.--For purposes of 
        this subsection, the term `gasoline gallon equivalent' 
        means, with respect to any nonliquid alternative fuel, 
        the amount of such fuel having a Btu content of 124,800 
        (higher heating value).
            ``(4) Termination.--This subsection shall not apply 
        to any sale or use for any period after September 30, 
        2009 (September 30, 2014, in the case of any sale or 
        use involving liquefied hydrogen).
    ``(e) Alternative Fuel Mixture Credit.--
            ``(1) In general.--For purposes of this section, 
        the alternative fuel mixture credit is the product of 
        50 cents and the number of gallons of alternative fuel 
        used by the taxpayer in producing any alternative fuel 
        mixture for sale or use in a trade or business of the 
        taxpayer.
            ``(2) Alternative fuel mixture.--For purposes of 
        this section, the term `alternative fuel mixture' means 
        a mixture of alternative fuel and taxable fuel (as 
        defined in subparagraph (A), (B), or (C) of section 
        4083(a)(1)) which--
                    ``(A) is sold by the taxpayer producing 
                such mixture to any person for use as fuel, or
                    ``(B) is used as a fuel by the taxpayer 
                producing such mixture.
            ``(3) Termination.--This subsection shall not apply 
        to any sale or use for any period after September 30, 
        2009 (September 30, 2014, in the case of any sale or 
        use involving liquefied hydrogen).''.
            (3) Conforming amendments.--
                    (A) The section heading for section 6426 is 
                amended by striking ``ALCOHOL FUEL AND 
                BIODIESEL'' and inserting ``ALCOHOL FUEL, 
                BIODIESEL, AND ALTERNATIVE FUEL''.
                    (B) The table of sections for subchapter B 
                of chapter 65 is amended by striking ``alcohol 
                fuel and biodiesel'' in the item relating to 
                section 6426 and inserting ``alcohol fuel, 
                biodiesel, and alternative fuel''.
                    (C) Section 6427(e) is amended--
                            (i) by inserting ``or the 
                        alternative fuel mixture credit'' after 
                        ``biodiesel mixture credit'' in 
                        paragraph (1),
                            (ii) by redesignating paragraph (2) 
                        as paragraph (3) and paragraph (4) as 
                        paragraph (5),
                            (iii) by inserting after paragraph 
                        (1) the following new paragraph:
            ``(2) Alternative fuel.--If any person sells or 
        uses an alternative fuel (as defined in section 
        6426(d)(2)) for a purpose described in section 
        6426(d)(1) in such person's trade or business, the 
        Secretary shall pay (without interest) to such person 
        an amount equal to the alternative fuel credit with 
        respect to such fuel.'',
                            (iv) by striking ``under paragraph 
                        (1) with respect to any mixture'' in 
                        paragraph (3) (as redesignated by 
                        clause (ii)) and inserting ``under 
                        paragraph (1) or (2) with respect to 
                        any mixture or alternative fuel'',
                            (v) by inserting after paragraph 
                        (3) (as so redesignated) the following 
                        new paragraph:
            ``(4) Registration requirement for alternative 
        fuels.--The Secretary shall not make any payment under 
        this subsection to any person with respect to any 
        alternative fuel credit or alternative fuel mixture 
        credit unless the person is registered under section 
        4101.'',
                            (vi) by striking ``and'' at the end 
                        of paragraph (5)(A) (as redesignated by 
                        clause (ii)),
                            (vii) by striking the period at the 
                        end of paragraph (5)(B) (as so 
                        redesignated) and inserting a comma,
                            (viii) by adding at the end of 
                        paragraph (5) (as so redesignated) the 
                        following new subparagraphs:
                    ``(C) except as provided in subparagraph 
                (D), any alternative fuel or alternative fuel 
                mixture (as defined in subsection (d)(2) or 
                (e)(3) of section 6426) sold or used after 
                September 30, 2009, and
                    ``(D) any alternative fuel or alternative 
                fuel mixture (as so defined) involving 
                liquefied hydrogen sold or used after September 
                30, 2014.'', and
                            (ix) by striking ``or Biodiesel 
                        Used To Produce Alcohol Fuel and 
                        Biodiesel Mixtures'' in the heading and 
                        inserting ``, Biodiesel, or Alternative 
                        Fuel''.
    (c) Additional Registration Requirements.--Section 
4101(a)(1) (relating to registration) is amended by striking 
``4041(a)(1)'' and inserting ``4041(a)''.
    (d) Effective Date.--The amendments made by this section 
shall apply to any sale or use for any period after September 
30, 2006.

                      PART 2--AQUATIC EXCISE TAXES

SEC. 1115. ELIMINATION OF AQUATIC RESOURCES TRUST FUND AND 
                    TRANSFORMATION OF SPORT FISH RESTORATION ACCOUNT.

    (a) Simplification of Funding for Boat Safety Account.--
            (1) In general.--Paragraph (4) of section 9503(c) 
        (relating to transfers from Trust Fund for motorboat 
        fuel taxes) is amended--
                    (A) by striking so much of that paragraph 
                as precedes subparagraph (D),
                    (B) by redesignating subparagraphs (D) and 
                (E) as subparagraphs (C) and (D), respectively, 
                and
                    (C) by inserting before subparagraph (C) 
                (as so redesignated) the following:
            ``(4) Transfers from the trust fund for motorboat 
        fuel taxes.--
                    ``(A) Transfer to land and water 
                conservation fund.--
                            ``(i) In general.--The Secretary 
                        shall pay from time to time from the 
                        Highway Trust Fund into the land and 
                        water conservation fund provided for in 
                        title I of the Land and Water 
                        Conservation Fund Act of 1965 amounts 
                        (as determined by the Secretary) 
                        equivalent to the motorboat fuel taxes 
                        received on or after October 1, 2005, 
                        and before October 1, 2011.
                            ``(ii) Limitation.--The aggregate 
                        amount transferred under this 
                        subparagraph during any fiscal year 
                        shall not exceed $1,000,000.
                    ``(B) Excess funds transferred to sport 
                fish restoration and boating trust fund.--Any 
                amounts in the Highway Trust Fund--
                            ``(i) which are attributable to 
                        motorboat fuel taxes, and
                            ``(ii) which are not transferred 
                        from the Highway Trust Fund under 
                        subparagraph (A),
                shall be transferred by the Secretary from the 
                Highway Trust Fund into the Sport Fish 
                Restoration and Boating Trust Fund.''.
            (2) Conforming amendment.--Paragraph (5) of section 
        9503(c) is amended by striking ``Account in the Aquatic 
        Resources'' in subparagraph (A) and inserting ``and 
        Boating''.
    (b) Merging of Accounts.--
            (1) In general.--Subsection (a) of section 9504 is 
        amended to read as follows:
    ``(a) Creation of Trust Fund.--There is hereby established 
in the Treasury of the United States a trust fund to be known 
as the `Sport Fish Restoration and Boating Trust Fund'. Such 
Trust Fund shall consist of such amounts as may be 
appropriated, credited, or paid to it as provided in this 
section, section 9503(c)(4), section 9503(c)(5), or section 
9602(b).''.
            (2) Conforming amendments.--
                    (A) Subsection (b) of section 9504, as 
                amended by section 1101 of this Act, is 
                amended--
                            (i) by striking ``Account'' in the 
                        heading thereof and inserting ``and 
                        Boating Trust Fund'',
                            (ii) by striking ``Account'' both 
                        places it appears in paragraphs (1) and 
                        (2) and inserting ``and Boating Trust 
                        Fund'', and
                            (iii) by striking ``account'' both 
                        places it appears in the headings for 
                        paragraphs (1) and (2) and inserting 
                        ``trust fund''.
                    (B) Subsection (d) of section 9504, as 
                amended by section 1101 of this Act, is 
                amended--
                            (i) by striking ``Aquatic 
                        Resources'' in the heading thereof,
                            (ii) by striking ``any Account in 
                        the Aquatic Resources'' in paragraph 
                        (1) and inserting ``the Sport Fish 
                        Restoration and Boating'', and
                            (iii) by striking ``any such 
                        Account'' in paragraph (1) and 
                        inserting ``such Trust Fund''.
                    (C) Subsection (e) of section 9504 is 
                amended by striking ``Boat Safety Account and 
                Sport Fish Restoration Account'' and inserting 
                ``Sport Fish Restoration and Boating Trust 
                Fund''.
                    (D) Section 9504 is amended by striking 
                ``AQUATIC RESOURCES'' in the heading thereof 
                and inserting ``SPORT FISH RESTORATION AND 
                BOATING''.
                    (E) The item relating to section 9504 in 
                the table of sections for subchapter A of 
                chapter 98 is amended by striking ``aquatic 
                resources'' and inserting ``sport fish 
                restoration and boating''.
                    (F) Paragraph (2) of section 1511(e) of the 
                Homeland Security Act of 2002 (6 U.S.C. 551(e)) 
                is amended by striking ``Aquatic Resources 
                Trust Fund of the Highway Trust Fund'' and 
                inserting ``Sport Fish Restoration and Boating 
                Trust Fund''.
    (c) Phaseout of Boat Safety Account.--Subsection (c) of 
section 9504 is amended to read as follows:
    ``(c) Expenditures From Boat Safety Account.--Amounts 
remaining in the Boat Safety Account on October 1, 2005, and 
amounts thereafter credited to the Account under section 
9602(b), shall be available, without further appropriation, for 
making expenditures before October 1, 2010, to carry out the 
purposes of section 15 of the Dingell-Johnson Sport Fish 
Restoration Act (as in effect on the date of the enactment of 
the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users). For purposes of section 9602, 
the Boat Safety Account shall be treated as a Trust Fund 
established by this subchapter.''.
    (d) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2005.

SEC. 1116. REPEAL OF HARBOR MAINTENANCE TAX ON EXPORTS.

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

SEC. 1117. CAP ON EXCISE TAX ON CERTAIN FISHING EQUIPMENT.

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

                      PART 3--AERIAL EXCISE TAXES

SEC. 1121. CLARIFICATION OF EXCISE TAX EXEMPTIONS FOR AGRICULTURAL 
                    AERIAL APPLICATORS AND EXEMPTION FOR FIXED-WING 
                    AIRCRAFT ENGAGED IN FORESTRY OPERATIONS.

    (a) No Waiver by Farm Owner, Tenant, or Operator 
Necessary.--Subparagraph (B) of section 6420(c)(4) (relating to 
certain farming use other than by owner, etc.) is amended to 
read as follows:
                    ``(B) if the person so using the gasoline 
                is an aerial or other applicator of fertilizers 
                or other substances and is the ultimate 
                purchaser of the gasoline, then subparagraph 
                (A) of this paragraph shall not apply and the 
                aerial or other applicator shall be treated as 
                having used such gasoline on a farm for farming 
                purposes.''.
    (b) Exemption Includes Fuel Used Between Airfield and 
Farm.--Section 6420(c)(4), as amended by subsection (a), is 
amended by adding at the end the following new flush sentence:
        ``In the case of an aerial applicator, gasoline shall 
        be treated as used on a farm for farming purposes if 
        the gasoline is used for the direct flight between the 
        airfield and 1 or more farms.''.
    (c) Exemption From Tax on Air Transportation of Persons for 
Forestry Purposes Extended to Fixed-Wing Aircraft.--Subsection 
(f) of section 4261 (relating to tax on air transportation of 
persons) is amended to read as follows:
    ``(f) Exemption for Certain Uses.--No tax shall be imposed 
under subsection (a) or (b) on air transportation--
            ``(1) by helicopter for the purpose of transporting 
        individuals, equipment, or supplies in the exploration 
        for, or the development or removal of, hard minerals, 
        oil, or gas, or
            ``(2) by helicopter or by fixed-wing aircraft for 
        the purpose of the planting, cultivation, cutting, or 
        transportation of, or caring for, trees (including 
        logging operations),
but only if the helicopter or fixed-wing aircraft does not take 
off from, or land at, a facility eligible for assistance under 
the Airport and Airway Development Act of 1970, or otherwise 
use services provided pursuant to section 44509 or 44913(b) or 
subchapter I of chapter 471 of title 49, United States Code, 
during such use. In the case of helicopter transportation 
described in paragraph (1), this subsection shall be applied by 
treating each flight segment as a distinct flight.''.
    (d) Effective Date.--The amendments made by this section 
shall apply to fuel use or air transportation after September 
30, 2005.

SEC. 1122. MODIFICATION OF RURAL AIRPORT DEFINITION.

    (a) In General.--Section 4261(e)(1)(B) (defining rural 
airport) is amended--
            (1) by inserting ``(in the case of any airport 
        described in clause (ii)(III), on flight segments of at 
        least 100 miles)'' after ``by air'' in clause (i), and
            (2) by striking ``or'' at the end of subclause (I) 
        of clause (ii), by striking the period at the end of 
        subclause (II) of clause (ii) and inserting ``, or'', 
        and by adding at the end of clause (ii) the following 
        new subclause:
                                    ``(III) is not connected by 
                                paved roads to another 
                                airport.''.
    (b) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2005.

SEC. 1123. EXEMPTION FROM TAXES ON TRANSPORTATION PROVIDED BY 
                    SEAPLANES.

    (a) In General.--Section 4261 (relating to imposition of 
tax) is amended by redesignating subsection (i) as subsection 
(j) and by inserting after subsection (h) the following new 
subsection:
    ``(i) Exemption for Seaplanes.--No tax shall be imposed by 
this section or section 4271 on any air transportation by a 
seaplane with respect to any segment consisting of a takeoff 
from, and a landing on, water, but only if the places at which 
such takeoff and landing occur have not received and are not 
receiving financial assistance from the Airport and Airways 
Trust Fund.''.
    (b) Rate of Fuel Tax for Seaplanes Subject to Exemption.--
Subsection (b) of section 4083 is amended by striking ``section 
4261(h)'' and inserting ``subsection (h) or (i) of section 
4261''.
    (c) Effective Date.--The amendments made by this section 
shall apply to transportation beginning after September 30, 
2005.

SEC. 1124. CERTAIN SIGHTSEEING FLIGHTS EXEMPT FROM TAXES ON AIR 
                    TRANSPORTATION.

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

                   PART 4--TAXES RELATING TO ALCOHOL

SEC. 1125. REPEAL OF SPECIAL OCCUPATIONAL TAXES ON PRODUCERS AND 
                    MARKETERS OF ALCOHOLIC BEVERAGES.

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

                  ``PART II--MISCELLANEOUS PROVISIONS

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

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

``Part II. Miscellaneous provisions.''.

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

         ``Subpart C--Recordkeeping and Registration by Dealers

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

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

``SEC. 5432. RECORDKEEPING BY WHOLESALE DEALERS.''

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

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

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

``SEC. 5124. REGISTRATION BY DEALERS.

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

                     ``Subpart D--Other Provisions

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

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

``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

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

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

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

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

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

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

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

SEC. 1126. INCOME TAX CREDIT FOR DISTILLED SPIRITS WHOLESALERS AND FOR 
                    DISTILLED SPIRITS IN CONTROL STATE BAILMENT 
                    WAREHOUSES FOR COSTS OF CARRYING FEDERAL EXCISE 
                    TAXES ON BOTTLED DISTILLED SPIRITS.

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

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

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

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

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

SEC. 1127. QUARTERLY EXCISE TAX FILING FOR SMALL ALCOHOL EXCISE 
                    TAXPAYERS.

    (a) In General.--Subsection (d) of section 5061 (relating 
to time for collecting tax on distilled spirits, wines, and 
beer) is amended by redesignating paragraphs (4) and (5) as 
paragraphs (5) and (6), respectively, and by inserting after 
paragraph (3) the following new paragraph:
            ``(4) Taxpayers liable for taxes of not more than 
        $50,000.--
                    ``(A) In general.--In the case of any 
                taxpayer who reasonably expects to be liable 
                for not more than $50,000 in taxes imposed with 
                respect to distilled spirits, wines, and beer 
                under subparts A, C, and D and section 7652 for 
                the calendar year and who was liable for not 
                more than $50,000 in such taxes in the 
                preceding calendar year, the last day for the 
                payment of tax on withdrawals, removals, and 
                entries (and articles brought into the United 
                States from Puerto Rico) under bond for 
                deferred payment shall be the 14th day after 
                the last day of the calendar quarter during 
                which the action giving rise to the imposition 
                of such tax occurs.
                    ``(B) No application after limit 
                exceeded.--Subparagraph (A) shall not apply to 
                any taxpayer for any portion of the calendar 
                year following the first date on which the 
                aggregate amount of tax due under subparts A, 
                C, and D and section 7652 from such taxpayer 
                during such calendar year exceeds $50,000, and 
                any tax under such subparts which has not been 
                paid on such date shall be due on the 14th day 
                after the last day of the semimonthly period in 
                which such date occurs.
                    ``(C) Calendar quarter.--For purposes of 
                this paragraph, the term `calendar quarter' 
                means the three-month period ending on March 
                31, June 30, September 30, or December 31.''.
    (b) Conforming Amendment.--Section 5061(d)(6), as 
redesignated by subsection (a), is amended by striking 
``paragraph (4)'' and inserting ``paragraph (5)''.
    (c) Effective Date.--The amendments made by this section 
shall apply with respect to quarterly periods beginning on and 
after January 1, 2006.

                       PART 5--SPORT EXCISE TAXES

SEC. 1131. CUSTOM GUNSMITHS.

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

                  Subtitle C--Miscellaneous Provisions

SEC. 1141. MOTOR FUEL TAX ENFORCEMENT ADVISORY COMMISSION.

    (a) Establishment.--There is established a Motor Fuel Tax 
Enforcement Advisory Commission (in this section referred to as 
the ``Commission'').
    (b) Function.--The Commission shall--
            (1) review motor fuel revenue collections, 
        historical and current;
            (2) review the progress of investigations with 
        respect to motor fuel taxes;
            (3) develop and review legislative proposals with 
        respect to motor fuel taxes;
            (4) monitor the progress of administrative 
        regulation projects relating to motor fuel taxes;
            (5) review the results of Federal and State agency 
        cooperative efforts regarding motor fuel taxes;
            (6) review the results of Federal interagency 
        cooperative efforts regarding motor fuel taxes; and
            (7) evaluate and make recommendations to the 
        President and Congress regarding--
                    (A) the effectiveness of existing Federal 
                enforcement programs regarding motor fuel 
                taxes,
                    (B) enforcement personnel allocation, and
                    (C) proposals for regulatory projects, 
                legislation, and funding.
    (c) Membership.--
            (1) Appointment.--The Commission shall be composed 
        of the following representatives appointed by the 
        Chairmen and the Ranking Members of the Committee on 
        Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives:
                    (A) At least 1 representative from each of 
                the following Federal entities: the Department 
                of Homeland Security, the Department of 
                Transportation--Office of Inspector General, 
                the Federal Highway Administration, the 
                Department of Defense, and the Department of 
                Justice.
                    (B) At least 1 representative from the 
                Federation of State Tax Administrators.
                    (C) At least 1 representative from any 
                State department of transportation.
                    (D) 2 representatives from the highway 
                construction industry.
                    (E) 6 representatives from industries 
                relating to fuel distribution -- refiners (2 
                representatives), distributors (1 
                representative), pipelines (1 representative), 
                and terminal operators (2 representatives).
                    (F) 1 representative from the retail fuel 
                industry.
                    (G) 2 representatives from the staff of the 
                Committee on Finance of the Senate and 2 
                representatives from the staff of the Committee 
                on Ways and Means of the House of 
                Representatives.
            (2) Terms.--Members shall be appointed for the life 
        of the Commission.
            (3) Vacancies.--A vacancy in the Commission shall 
        be filled in the manner in which the original 
        appointment was made.
            (4) Travel expenses.--Members shall serve without 
        pay but shall receive travel expenses, including per 
        diem in lieu of subsistence, in accordance with 
        sections 5702 and 5703 of title 5, United States Code.
            (5) Chairman.--The Chairman of the Commission shall 
        be elected by the members.
    (d) Funding.--Such sums as are necessary shall be available 
from the Highway Trust fund for the expenses of the Commission.
    (e) Consultation.--Upon request of the Commission, 
representatives of the Department of the Treasury and the 
Internal Revenue Service shall be available for consultation to 
assist the Commission in carrying out its duties under this 
section.
    (f) Obtaining Data.--The Commission may secure directly 
from any department or agency of the United States, information 
(other than information required by any law to be kept 
confidential by such department or agency) necessary for the 
Commission to carry out its duties under this section. Upon 
request of the Commission, the head of that department or 
agency shall furnish such nonconfidential information to the 
Commission. The Commission shall also gather evidence through 
such means as it may deem appropriate, including through 
holding hearings and soliciting comments by means of Federal 
Register notices.
    (g) Termination.--The Commission shall terminate as of the 
close of September 30, 2009.

SEC. 1142. NATIONAL SURFACE TRANSPORTATION INFRASTRUCTURE FINANCING 
                    COMMISSION.

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

SEC. 1143. TAX-EXEMPT FINANCING OF HIGHWAY PROJECTS AND RAIL-TRUCK 
                    TRANSFER FACILITIES.

    (a) Treatment as Exempt Facility Bond.--Subsection (a) of 
section 142 (relating to exempt facility bond) is amended by 
striking ``or'' at the end of paragraph (13), by striking the 
period at the end of paragraph (14) and inserting ``, or'', and 
by adding at the end the following new paragraph:
            ``(15) qualified highway or surface freight 
        transfer facilities.''.
    (b) Qualified Highway or Surface Freight Transfer 
Facilities.--Section 142 is amended by adding at the end the 
following:
    ``(m) Qualified Highway or Surface Freight Transfer 
Facilities.--
            ``(1) In general.--For purposes of subsection 
        (a)(15), the term `qualified highway or surface freight 
        transfer facilities' means--
                    ``(A) any surface transportation project 
                which receives Federal assistance under title 
                23, United States Code (as in effect on the 
                date of the enactment of this subsection),
                    ``(B) any project for an international 
                bridge or tunnel for which an international 
                entity authorized under Federal or State law is 
                responsible and which receives Federal 
                assistance under title 23, United States Code 
                (as so in effect), or
                    ``(C) any facility for the transfer of 
                freight from truck to rail or rail to truck 
                (including any temporary storage facilities 
                directly related to such transfers) which 
                receives Federal assistance under either title 
                23 or title 49, United States Code (as so in 
                effect).
            ``(2) National limitation on amount of tax-exempt 
        financing for facilities.--
                    ``(A) National limitation.--The aggregate 
                amount allocated by the Secretary of 
                Transportation under subparagraph (C) shall not 
                exceed $15,000,000,000.
                    ``(B) Enforcement of national limitation.--
                An issue shall not be treated as an issue 
                described in subsection (a)(15) if the 
                aggregate face amount of bonds issued pursuant 
                to such issue for any qualified highway or 
                surface freight transfer facility (when added 
                to the aggregate face amount of bonds 
                previously so issued for such facility) exceeds 
                the amount allocated to such facility under 
                subparagraph (C).
                    ``(C) Allocation by secretary of 
                transportation.--The Secretary of 
                Transportation shall allocate the amount 
                described in subparagraph (A) among qualified 
                highway or surface freight transfer facilities 
                in such manner as the Secretary determines 
                appropriate.
            ``(3) Expenditure of proceeds.--An issue shall not 
        be treated as an issue described in subsection (a)(15) 
        unless at least 95 percent of the net proceeds of the 
        issue is expended for qualified highway or surface 
        freight transfer facilities within the 5-year period 
        beginning on the date of issuance. If at least 95 
        percent of such net proceeds is not expended within 
        such 5-year period, an issue shall be treated as 
        continuing to meet the requirements of this paragraph 
        if the issuer uses all unspent proceeds of the issue to 
        redeem bonds of the issue within 90 days after the end 
        of such 5-year period. The Secretary, at the request of 
        the issuer, may extend such 5-year period if the issuer 
        establishes that any failure to meet such period is due 
        to circumstances beyond the control of the issuer.
            ``(4) Exception for current refunding bonds.--
        Paragraph (2) shall not apply to any bond (or series of 
        bonds) issued to refund a bond issued under subsection 
        (a)(15) if--
                    ``(A) the average maturity date of the 
                issue of which the refunding bond is a part is 
                not later than the average maturity date of the 
                bonds to be refunded by such issue,
                    ``(B) the amount of the refunding bond does 
                not exceed the outstanding amount of the 
                refunded bond, and
                    ``(C) the refunded bond is redeemed not 
                later than 90 days after the date of the 
                issuance of the refunding bond.
        For purposes of subparagraph (A), average maturity 
        shall be determined in accordance with section 
        147(b)(2)(A).''.
    (c) Exemption From General State Volume Caps.--Paragraph 
(3) of section 146(g) of the Internal Revenue Code of 1986 
(relating to exception for certain bonds) is amended by 
striking ``or (14)'' and all that follows through the end of 
the paragraph and inserting ``(14), or (15) of section 142(a), 
and''.
    (d) Effective Date.--The amendments made by this section 
apply to bonds issued after the date of the enactment of this 
Act.

SEC. 1144. TREASURY STUDY OF HIGHWAY FUELS USED BY TRUCKS FOR NON-
                    TRANSPORTATION PURPOSES.

    (a) Study.--The Secretary of the Treasury shall conduct a 
study regarding the use of highway motor fuel by trucks that is 
not used for the propulsion of the vehicle. As part of such 
study--
            (1) in the case of vehicles carrying equipment that 
        is unrelated to the transportation function of the 
        vehicle--
                    (A) the Secretary of the Treasury, in 
                consultation with the Secretary of 
                Transportation, and with public notice and 
                comment, shall determine the average annual 
                amount of tax-paid fuel consumed per vehicle, 
                by type of vehicle, used by the propulsion 
                engine to provide the power to operate the 
                equipment attached to the highway vehicle, and
                    (B) the Secretary of the Treasury shall 
                review the technical and administrative 
                feasibility of exempting such nonpropulsive use 
                of highway fuels from the highway motor fuels 
                excise taxes, and, if such exemptions are 
                technically and administratively feasible, 
                shall propose options for implementing such 
                exemptions for--
                            (i) mobile machinery (as defined in 
                        section 4053(8) of the Internal Revenue 
                        Code of 1986) whose nonpropulsive fuel 
                        use exceeds 50 percent, and
                            (ii) any highway vehicle which 
                        consumes fuel for both transportation- 
                        and non-transportation-related 
                        equipment, using a single motor,
            (2) in the case where non-transportation equipment 
        is run by a separate motor--
                    (A) the Secretary of the Treasury shall 
                determine the annual average amount of fuel 
                exempted from tax in the use of such equipment 
                by equipment type, and
                    (B) the Secretary of the Treasury shall 
                review issues of administration and compliance 
                related to the present-law exemption provided 
                for such fuel use, and
            (3) the Secretary of the Treasury shall--
                    (A) estimate the amount of taxable fuel 
                consumed by trucks and the emissions of various 
                pollutants due to the long-term idling of 
                diesel engines, and
                    (B) determine the cost of reducing such 
                long-term idling through the use of plug-ins at 
                truck stops, auxiliary power units, or other 
                technologies.
    (b) Report.--Not later than January 1, 2007, the Secretary 
of the Treasury shall report the findings of the study required 
under subsection (a) to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of 
Representatives.

SEC. 1145. DIESEL FUEL TAX EVASION REPORT.

     Not later than 360 days after the date of the enactment of 
this Act, the Commissioner of the Internal Revenue shall report 
to the Committees on Finance and Environment and Public Works 
of the Senate and the Committees on Ways and Means and 
Transportation and Infrastructure of the House of 
Representatives on--
            (1) the availability of new technologies, including 
        forensic or chemical molecular markers, that can be 
        employed to enhance collections of the excise tax on 
        diesel fuel and the plans of the Internal Revenue 
        Service to employ such technologies,
            (2) the design of a test to place forensic or 
        chemical molecular markers in any excluded liquid (as 
        defined in section 48.4081-1(b) of title 26, Code of 
        Federal Regulations),
            (3) the design of a test, in consultation with the 
        Department of Defense, to place forensic or chemical 
        molecular markers in all nonstrategic bulk fuel 
        deliveries of diesel fuel to the military, and
            (4) the design of a test to place forensic or 
        chemical molecular markers in all diesel fuel bound for 
        export utilizing the Gulf of Mexico.

SEC. 1146. TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD REAL ESTATE 
                    INVESTMENT TRUST.

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

SEC. 1147. LIMITATION ON TRANSFERS TO THE LEAKING UNDERGROUND STORAGE 
                    TANK TRUST FUND.

    (a) In General.--Section 9508 is amended by adding at the 
end the following new subsection:
    ``(e) Limitation on Transfers to Leaking Underground 
Storage Tank Trust Fund.--
            ``(1) In general.--Except as provided in paragraph 
        (2), no amount may be appropriated to the Leaking 
        Underground Storage Tank Trust Fund on and after the 
        date of any expenditure from the Leaking Underground 
        Storage Tank Trust Fund which is not permitted by this 
        section. The determination of whether an expenditure is 
        so permitted shall be made without regard to--
                    ``(A) any provision of law which is not 
                contained or referenced in this title or in a 
                revenue Act, and
                    ``(B) whether such provision of law is a 
                subsequently enacted provision or directly or 
                indirectly seeks to waive the application of 
                this paragraph.
            ``(2) Exception for prior obligations.--Paragraph 
        (1) shall not apply to any expenditure to liquidate any 
        contract entered into (or for any amount otherwise 
        obligated) before October 1, 2011, in accordance with 
        the provisions of this section.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect on the date of the enactment of this Act.

           Subtitle D--Highway-Related Technical Corrections

SEC. 1151. HIGHWAY-RELATED TECHNICAL CORRECTIONS.

    (a) Amendments Related to Section 301 of the American Jobs 
Creation Act of 2004.--Section 6427 is amended--
            (1) by striking subsection (f), and
            (2) by striking subsection (o) and redesignating 
        subsection (p) as subsection (o).
    (b) Amendments Related to Section 853 of the American Jobs 
Creation Act of 2004.--
            (1) Subparagraph (C) of section 4081(a)(2) is 
        amended by striking ``for use in commercial aviation'' 
        and inserting ``for use in commercial aviation by a 
        person registered for such use under section 4101''.
            (2) So much of paragraph (2) of section 4081(d) as 
        precedes subparagraph (A) is amended to read as 
        follows:
            ``(2) Aviation fuels.--The rates of tax specified 
        in clauses (ii) and (iv) of subsection (a)(2)(A) shall 
        be 4.3 cents per gallon--''.
            (3) Section 6421(f)(2) is amended--
                    (A) by striking ``noncommercial aviation 
                (as defined in section 4041(c)(2))'' in 
                subparagraph (A) and inserting ``aviation which 
                is not commercial aviation (as defined in 
                section 4083(b))'', and
                    (B) by striking ``aviation which is not 
                noncommercial aviation'' in subparagraph (B) 
                and inserting ``commercial aviation''.
    (c) Amendment Related to Section 9005 of the Transportation 
Equity Act for the 21st Century.--The last sentence of 
paragraph (2) of section 9504(b) is amended by striking 
``subparagraph (B)'', and inserting ``subparagraph (C)''.
    (d) Amendment Related to Section 1306 of the Energy Policy 
Act of 2005.--
            (1) Subsection (b) of section 1306 of the Energy 
        Tax Incentives Act of 2005 is amended by striking 
        ``Transportation Equity Act: A Legacy for Users'' and 
        inserting ``Safe, Accountable, Flexible, Efficient 
        Transportation Equity Act: A Legacy for Users''.
            (2) If the Energy Policy Act of 2005 is enacted 
        before the date of the enactment of this Act, for 
        purposes of executing any amendments made by the Energy 
        Policy Act of 2005 to section 38(b) of the Internal 
        Revenue Code of 1986, the amendments made by section 
        1126(b) of this Act shall be treated as having been 
        executed before such amendments made by the Energy 
        Policy Act of 2005.
    (e) Clerical Amendments.--
            (1) Subparagraph (A) of section 9504(b)(2) is 
        amended by striking ``the Act entitled `An Act to 
        provide that the United States shall aid the States in 
        fish restoration and management projects, and for other 
        purposes', approved August 9, 1950'' and inserting 
        ``the Dingell-Johnson Sport Fish Restoration Act''.
            (2) Sections 6426(d)(2)(F) and 4041(a)(2)(B)(ii) 
        are both amended by striking ``section 29(c)(3)'' and 
        inserting ``section 45K(c)(3)''.
    (f) Effective Dates.--
            (1) American jobs creation act of 2004.--The 
        amendments made by subsections (a) and (b) shall take 
        effect as if included in the provisions of the American 
        Jobs Creation Act of 2004 to which they relate.
            (2) Transportation equity act for the 21st 
        century.--The amendment made by subsection (c) shall 
        take effect as if included in the provision of the 
        Transportation Equity Act for the 21st Century to which 
        it relates.
            (3) Energy policy act of 2005.--The amendments made 
        by subsections (d)(1) and (e)(2) shall take effect as 
        if included in the provision of the Energy Tax 
        Incentives Act of 2005 to which they relate.

                   Subtitle E--Preventing Fuel Fraud

SEC. 1161. TREATMENT OF KEROSENE FOR USE IN AVIATION.

    (a) All Kerosene Taxed at Highest Rate.--
            (1) In general.--Section 4081(a)(2)(A) (relating to 
        rates of tax) is amended by adding ``and'' at the end 
        of clause (ii), by striking ``, and'' at the end of 
        clause (iii) and inserting a period, and by striking 
        clause (iv).
            (2) Exception for use in aviation.--Subparagraph 
        (C) of section 4081(a)(2) is amended to read as 
        follows:
                    ``(C) Taxes imposed on fuel used in 
                aviation.--In the case of kerosene which is 
                removed from any refinery or terminal directly 
                into the fuel tank of an aircraft for use in 
                aviation, the rate of tax under subparagraph 
                (A)(iii) shall be--
                            ``(i) in the case of use for 
                        commercial aviation by a person 
                        registered for such use under section 
                        4101, 4.3 cents per gallon, and
                            ``(ii) in the case of use for 
                        aviation not described in clause (i), 
                        21.8 cents per gallon.''.
            (3) Applicable rate in case of certain refueler 
        trucks, tankers, and tank wagons.--Section 4081(a)(3) 
        (relating to certain refueler trucks, tankers, and tank 
        wagons treated as terminals) is amended--
                    (A) by striking ``a secured area of'' in 
                subparagraph (A)(i), and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Applicable rate.--For purposes of 
                paragraph (2)(C), in the case of any kerosene 
                treated as removed from a terminal by reason of 
                this paragraph--
                            ``(i) the rate of tax specified in 
                        paragraph (2)(C)(i) in the case of use 
                        described in such paragraph shall apply 
                        if such terminal is located within a 
                        secured area of an airport, and
                            ``(ii) the rate of tax specified in 
                        paragraph (2)(C)(ii) shall apply in all 
                        other cases.''.
            (4) Conforming amendments.--
                    (A) Sections 4081(a)(3)(A) and 4082(b) are 
                amended by striking ``aviation-grade'' each 
                place it appears.
                    (B) Section 4081(a)(4) is amended by 
                striking ``paragraph (2)(C)'' and inserting 
                ``paragraph (2)(C)(i)''.
                    (C) The heading for paragraph (4) of 
                section 4081(a) is amended by striking 
                ``aviation-grade''.
                    (D) Section 4081(d)(2) is amended by 
                striking so much as precedes subparagraph (A) 
                and inserting the following:
            ``(2) Aviation fuels.--The rates of tax specified 
        in subsections (a)(2)(A)(ii) and (a)(2)(C)(ii) shall be 
        4.3 cents per gallon--''.
                    (E) Subsection (e) of section 4082 is 
                amended--
                            (i) by striking ``aviation-grade'',
                            (ii) by striking ``section 
                        4081(a)(2)(A)(iv)'' and inserting 
                        ``section 4081(a)(2)(A)(iii)'',
                            (iii) by adding at the end the 
                        following new sentence: ``For purposes 
                        of this subsection, any removal 
                        described in section 4081(a)(3)(A) 
                        shall be treated as a removal from a 
                        terminal but only if such terminal is 
                        located within a secure area of an 
                        airport.'', and
                            (iv) by striking ``Aviation-grade 
                        Kerosene'' in the heading thereof and 
                        inserting ``Kerosene Removed Into an 
                        Aircraft''.
    (b) Reduced Rate for Use of Certain Liquids in Aviation.--
            (1) In general.--Subsection (c) of section 4041 
        (relating to imposition of tax) is amended--
                    (A) by striking ``aviation-grade kerosene'' 
                in paragraph (1) and inserting ``any liquid for 
                use as a fuel other than aviation gasoline'',
                    (B) by striking ``aviation-grade kerosene'' 
                in paragraph (2) and inserting ``liquid for use 
                as a fuel other than aviation gasoline'',
                    (C) by striking paragraph (3) and inserting 
                the following new paragraph:
            ``(3) Rate of tax.--The rate of tax imposed by this 
        subsection shall be 21.8 cents per gallon (4.3 cents 
        per gallon with respect to any sale or use for 
        commercial aviation).'', and
                    (D) by striking ``Aviation-grade Kerosene'' 
                in the heading thereof and inserting ``Certain 
                Liquids Used as a Fuel in Aviation''.
            (2) Partial refund of full rate.--
                    (A) In general.--Paragraph (2) of section 
                6427(l) (relating to nontaxable uses of diesel 
                fuel, kerosene and aviation fuel) is amended to 
                read as follows:
            ``(2) Nontaxable use.--For purposes of this 
        subsection, the term `nontaxable use' means any use 
        which is exempt from the tax imposed by section 
        4041(a)(1) other than by reason of a prior imposition 
        of tax.''.
                    (B) Refunds for noncommercial aviation.--
                Section 6427(l) (relating to nontaxable uses of 
                diesel fuel, kerosene and aviation fuel) is 
                amended by redesignating paragraph (5) as 
                paragraph (6) and by inserting after paragraph 
                (4) the following new paragraph:
            ``(5) Refunds for kerosene used in noncommercial 
        aviation.--
                    ``(A) In general.--In the case of kerosene 
                used in aviation not described in paragraph 
                (4)(A) (other than any use which is exempt from 
                the tax imposed by section 4041(c) other than 
                by reason of a prior imposition of tax), 
                paragraph (1) shall not apply to so much of the 
                tax imposed by section 4081 as is attributable 
                to--
                            ``(i) the Leaking Underground 
                        Storage Tank Trust Fund financing rate 
                        imposed by such section, and
                            ``(ii) so much of the rate of tax 
                        specified in section 4081(a)(2)(A)(iii) 
                        as does not exceed the rate specified 
                        in section 4081(a)(2)(C)(ii).
                    ``(B) Payment to ultimate, registered 
                vendor.--The amount which would be paid under 
                paragraph (1) with respect to any kerosene 
                shall be paid only to the ultimate vendor of 
                such kerosene. A payment shall be made to such 
                vendor if such vendor--
                            ``(i) is registered under section 
                        4101, and
                            ``(ii) meets the requirements of 
                        subparagraph (A), (B), or (D) of 
                        section 6416(a)(1).''.
            (3) Conforming amendments.--
                    (A) Section 4041(a)(1)(B) is amended by 
                striking the last sentence.
                    (B) The heading for subsection (l) of 
                section 6427 is amended by striking ``, 
                Kerosene and Aviation Fuel'' and inserting 
                ``and Kerosene''.
                    (C) Section 4082(d)(2)(B) is amended by 
                striking ``section 6427(l)(5)(B)'' and 
                inserting ``section 6427(l)(6)(B)''.
                    (D) Section 6427(i)(4)(A) is amended--
                            (i) by striking ``paragraph (4)(B) 
                        or (5)'' both places it appears and 
                        inserting ``paragraph (4)(B), (5), or 
                        (6)'', and
                            (ii) by striking ``subsection 
                        (b)(4) and subsection (l)(5)'' in the 
                        last sentence and inserting 
                        ``subsections (b)(4), (l)(5), and 
                        (l)(6)''.
                    (E) Paragraph (4) of section 6427(l) is 
                amended--
                            (i) by striking ``aviation-grade'' 
                        in subparagraph (A),
                            (ii) by striking ``section 
                        4081(a)(2)(A)(iv)'' and inserting 
                        ``section 4081(a)(2)(iii)'',
                            (iii) by striking ``aviation-grade 
                        kerosene'' in subparagraph (B) and 
                        inserting ``kerosene used in commercial 
                        aviation as described in subparagraph 
                        (A)'', and
                            (iv) by striking ``aviation-grade 
                        kerosene'' in the heading thereof and 
                        inserting ``kerosene used in commercial 
                        aviation''.
                    (F) Section 6427(l)(6)(B), as redesignated 
                by paragraph (2)(B), is amended by striking 
                ``aviation-grade kerosene'' and inserting 
                ``kerosene used in aviation''.
    (c) Transfers From Highway Trust Fund of Taxes on Fuels 
Used in Aviation to Airport and Airway Trust Fund.--
            (1) In general.--Section 9503(c) (relating to 
        expenditures from Highway Trust Fund) is amended by 
        adding at the end the following new paragraph:
            ``(7) Transfers from the trust fund for certain 
        aviation fuel taxes.--The Secretary shall pay at least 
        monthly from the Highway Trust Fund into the Airport 
        and Airway Trust Fund amounts (as determined by the 
        Secretary) equivalent to the taxes received on or after 
        October 1, 2005, and before October 1, 2011, under 
        section 4081 with respect to so much of the rate of tax 
        as does not exceed--
                    ``(A) 4.3 cents per gallon of kerosene with 
                respect to which a payment has been made by the 
                Secretary under section 6427(l)(4), and
                    ``(B) 21.8 cents per gallon of kerosene 
                with respect to which a payment has been made 
                by the Secretary under section 6427(l)(5).
        Transfers under the preceding sentence shall be made on 
        the basis of estimates by the Secretary, and proper 
        adjustments shall be made in the amounts subsequently 
        transferred to the extent prior estimates were in 
        excess of or less than the amounts required to be 
        transferred. Any amount allowed as a credit under 
        section 34 by reason of paragraph (4) or (5) of section 
        6427(l) shall be treated for purposes of subparagraphs 
        (A) and (B) as a payment made by the Secretary under 
        such paragraph.''.
            (2) Conforming amendments.--
                    (A) Section 9502(a) is amended by striking 
                ``appropriated or credited to the Airport and 
                Airway Trust Fund as provided in this section 
                or section 9602(b)'' and inserting 
                ``appropriated, credited, or paid into the 
                Airport and Airway Trust Fund as provided in 
                this section, section 9503(c)(7), or section 
                9602(b)''.
                    (B) Section 9502(b)(1) is amended--
                            (i) by striking ``subsections (c) 
                        and (e) of section 4041'' in 
                        subparagraph (A) and inserting 
                        ``section 4041(c)'', and
                            (ii) by striking ``and aviation-
                        grade kerosene'' in subparagraph (C) 
                        and inserting ``and kerosene to the 
                        extent attributable to the rate 
                        specified in section 4081(a)(2)(C)''.
                    (C) Section 9503(b) is amended by striking 
                paragraph (3).
    (d) Certain Refunds Not Transferred From Airport and Airway 
Trust Fund.--
            (1) Section 9502(d)(2) (relating to transfers from 
        Airport and Airway Trust Fund on account of certain 
        refunds) is amended by inserting ``(other than 
        subsections (l)(4) and (l)(5) thereof)'' after ``or 
        6427 (relating to fuels not used for taxable 
        purposes)''.
            (2) The text of section 9502(d)(3) (relating to 
        transfers from Airport and Airway Trust Fund on account 
        of certain section 34 credits) is amended by inserting 
        ``(other than payments made by reason of paragraph (4) 
        or (5) of section 6427(l))'' after ``section 34''.
    (e) Effective Date.--The amendments made by this section 
shall apply to fuels or liquids removed, entered, or sold after 
September 30, 2005.

SEC. 1162. REPEAL OF ULTIMATE VENDOR REFUND CLAIMS WITH RESPECT TO 
                    FARMING.

    (a) In General.--Subparagraph (A) of section 6427(l)(6) 
(relating to registered vendors to administer claims for refund 
of diesel fuel or kerosene sold to farmers and State and local 
governments), as redesignated by section 1161, is amended to 
read as follows:
                    ``(A) In general.--Paragraph (1) shall not 
                apply to diesel fuel or kerosene used by a 
                State or local government.''.
    (b) Conforming Amendment.--The heading of paragraph (6) of 
section 6427(l), as so redesignated, is amended by striking 
``farmers and''.
    (c) Effective Date.--The amendments made by this section 
shall apply to sales after September 30, 2005.

SEC. 1163. REFUNDS OF EXCISE TAXES ON EXEMPT SALES OF FUEL BY CREDIT 
                    CARD.

    (a) Registration of Person Extending Credit on Certain 
Exempt Sales of Fuel.--Section 4101(a) (relating to 
registration) is amended by adding at the end the following new 
paragraph:
            ``(4) Registration of persons extending credit on 
        certain exempt sales of fuel.--The Secretary shall 
        require registration by any person which--
                    ``(A) extends credit by credit card to any 
                ultimate purchaser described in subparagraph 
                (C) or (D) of section 6416(b)(2) for the 
                purchase of taxable fuel upon which tax has 
                been imposed under section 4041 or 4081, and
                    ``(B) does not collect the amount of such 
                tax from such ultimate purchaser.''.
    (b) Refunds of Tax on Gasoline.--
            (1) In general.--Paragraph (4) of section 6416(a) 
        (relating to condition to allowance) is amended--
                    (A) by inserting ``except as provided in 
                subparagraph (B),'' after ``For purposes of 
                this subsection,'' in subparagraph (A),
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C) and by inserting after 
                subparagraph (A) the following new 
                subparagraph:
                    ``(B) Credit card issuer.--For purposes of 
                this subsection, if the purchase of gasoline 
                described in subparagraph (A) (determined 
                without regard to the registration status of 
                the ultimate vendor) is made by means of a 
                credit card issued to the ultimate purchaser, 
                paragraph (1) shall not apply and the person 
                extending the credit to the ultimate purchaser 
                shall be treated as the person (and the only 
                person) who paid the tax, but only if such 
                person--
                            ``(i) is registered under section 
                        4101, and
                            ``(ii) has established, under 
                        regulations prescribed by the 
                        Secretary, that such person--
                                    ``(I) has not collected the 
                                amount of the tax from the 
                                person who purchased such 
                                article, or
                                    ``(II) has obtained the 
                                written consent from the 
                                ultimate purchaser to the 
                                allowance of the credit or 
                                refund, and
                            ``(iii) has so established that 
                        such person--
                                    ``(I) has repaid or agreed 
                                to repay the amount of the tax 
                                to the ultimate vendor,
                                    ``(II) has obtained the 
                                written consent of the ultimate 
                                vendor to the allowance of the 
                                credit or refund, or
                                    ``(III) has otherwise made 
                                arrangements which directly or 
                                indirectly provides the 
                                ultimate vendor with 
                                reimbursement of such tax.
                If clause (i), (ii), or (iii) is not met by 
                such person extending the credit to the 
                ultimate purchaser, then such person shall 
                collect an amount equal to the tax from the 
                ultimate purchaser and only such ultimate 
                purchaser may claim such credit or payment.'',
                    (C) by striking ``subparagraph (A)'' in 
                subparagraph (C), as redesignated by paragraph 
                (2), and inserting ``subparagraph (A) or (B)'',
                    (D) by inserting ``or credit card issuer'' 
                after ``vendor'' in subparagraph (C), as so 
                redesignated, and
                    (E) by inserting ``or credit card issuer'' 
                after ``vendor'' in the heading thereof.
            (2) Conforming amendment.--Section 6416(b)(2) is 
        amended by adding at the end the following new 
        sentence: ``Subparagraphs (C) and (D) shall not apply 
        in the case of any tax imposed on gasoline under 
        section 4081 if the requirements of subsection (a)(4) 
        are not met.''.
    (c) Diesel Fuel or Kerosene.--Paragraph (6) of section 
6427(l) (relating to nontaxable uses of diesel fuel and 
kerosene), as redesignated by section 1161, is amended--
            (1) by striking ``The amount'' in subparagraph (C) 
        and inserting ``Except as provided in subparagraph (D), 
        the amount'', and
            (2) by adding at the end the following new 
        subparagraph:
                    ``(D) Credit card issuer.--For purposes of 
                this paragraph, if the purchase of any fuel 
                described in subparagraph (A) (determined 
                without regard to the registration status of 
                the ultimate vendor) is made by means of a 
                credit card issued to the ultimate purchaser, 
                the Secretary shall pay to the person extending 
                the credit to the ultimate purchaser the amount 
                which would have been paid under paragraph (1) 
                (but for subparagraph (A)), but only if such 
                person meets the requirements of clauses (i), 
                (ii), and (iii) of section 6416(a)(4)(B). If 
                such clause (i), (ii), or (iii) is not met by 
                such person extending the credit to the 
                ultimate purchaser, then such person shall 
                collect an amount equal to the tax from the 
                ultimate purchaser and only such ultimate 
                purchaser may claim such amount.''.
    (d) Conforming Penalty Amendments.--
            (1) Section 6206 (relating to special rules 
        applicable to excessive claims under sections 6420, 
        6421, and 6427) is amended--
                    (A) by striking ``Any portion'' in the 
                first sentence and inserting ``Any portion of a 
                refund made under section 6416(a)(4) and any 
                portion'',
                    (B) by striking ``payments under sections 
                6420'' in the first sentence and inserting 
                ``refunds under section 6416(a)(4) and payments 
                under sections 6420'',
                    (C) by striking ``section 6420'' in the 
                second sentence and inserting ``section 
                6416(a)(4), 6420'', and
                    (D) by striking ``SECTIONS 6420, 6421, AND 
                6427'' in the heading thereof and inserting 
                ``CERTAIN SECTIONS''.
            (2) Section 6675(a) is amended by inserting 
        ``section 6416(a)(4) (relating to certain sales of 
        gasoline),'' after ``made under''.
            (3) Section 6675(b)(1) is amended by inserting 
        ``6416(a)(4),'' after ``under section''.
            (4) The item relating to section 6206 in the table 
        of sections for subchapter A of chapter 63 is amended 
        by striking ``sections 6420, 6421, and 6427'' and 
        inserting ``certain sections''.
    (e) Effective Date.--The amendments made by this section 
shall apply to sales after December 31, 2005.

SEC. 1164. REREGISTRATION IN EVENT OF CHANGE IN OWNERSHIP.

    (a) In General.--Section 4101(a) (relating to registration) 
is amended by adding at the end the following new paragraph:
            ``(4) Reregistration in event of change in 
        ownership.--Under regulations prescribed by the 
        Secretary, a person (other than a corporation the stock 
        of which is regularly traded on an established 
        securities market) shall be required to reregister 
        under this section if after a transaction (or series of 
        related transactions) more than 50 percent of ownership 
        interests in, or assets of, such person are held by 
        persons other than persons (or persons related thereto) 
        who held more than 50 percent of such interests or 
        assets before the transaction (or series of related 
        transactions).''.
    (b) Conforming Amendments.--
            (1) Civil penalty.--Section 6719 (relating to 
        failure to register) is amended--
                    (A) by inserting ``or reregister'' after 
                ``register'' each place it appears,
                    (B) by inserting ``or Reregister'' after 
                ``Register'' in the heading for subsection (a), 
                and
                    (C) by inserting ``OR REREGISTER'' after 
                ``REGISTER'' in the heading thereof.
            (2) Criminal penalty.--Section 7232 (relating to 
        failure to register under section 4101, false 
        representations of registration status, etc.) is 
        amended--
                    (A) by inserting ``or reregister'' after 
                ``register'',
                    (B) by inserting ``or reregistration'' 
                after ``registration'', and
                    (C) by inserting ``OR REREGISTER'' after 
                ``REGISTER'' in the heading thereof.
            (3) Additional civil penalty.--Section 7272 
        (relating to penalty for failure to register) is 
        amended--
                    (A) by inserting ``or reregister'' after 
                ``failure to register'' in subsection (a),
                    (B) by inserting ``OR REREGISTER'' after 
                ``REGISTER'' in the heading thereof.
            (4) Clerical amendments.--The item relating to 
        section 6719 in the table of sections for part I of 
        subchapter B of chapter 68, the item relating to 
        section 7232 in the table of sections for part II of 
        subchapter A of chapter 75, and the item relating to 
        section 7272 in the table of sections for subchapter B 
        of chapter 75 are each amended by inserting ``or 
        reregister'' after ``register''.
    (c) Effective Date.--The amendments made by this section 
shall apply to actions, or failures to act, after the date of 
the enactment of this Act.

SEC. 1165. RECONCILIATION OF ON-LOADED CARGO TO ENTERED CARGO.

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

SEC. 1166. TREATMENT OF DEEP-DRAFT VESSELS.

    (a) In General.--On and after the date of the enactment of 
this Act, the Secretary of the Treasury shall require that a 
vessel described in section 4042(c)(1) of the Internal Revenue 
Code of 1986 be considered a vessel for purposes of the 
registration of the operator of such vessel under section 4101 
of such Code, unless such operator uses such vessel exclusively 
for purposes of the entry of taxable fuel.
    (b) Exemption for Domestic Bulk Transfers by Deep-Draft 
Vessels.--
            (1) In general.--Subparagraph (B) of section 
        4081(a)(1) (relating to tax on removal, entry, or sale) 
        is amended to read as follows:
                    ``(B) Exemption for bulk transfers to 
                registered terminals or refineries.--
                            ``(i) In general.--The tax imposed 
                        by this paragraph shall not apply to 
                        any removal or entry of a taxable fuel 
                        transferred in bulk by pipeline or 
                        vessel to a terminal or refinery if the 
                        person removing or entering the taxable 
                        fuel, the operator of such pipeline or 
                        vessel (except as provided in clause 
                        (ii)), and the operator of such 
                        terminal or refinery are registered 
                        under section 4101.
                            ``(ii) Nonapplication of 
                        registration to vessel operators 
                        entering by deep-draft vessel.--For 
                        purposes of clause (i), a vessel 
                        operator is not required to be 
                        registered with respect to the entry of 
                        a taxable fuel transferred in bulk by a 
                        vessel described in section 
                        4042(c)(1).''.
            (2) Effective date.--The amendment made by this 
        subsection shall take effect on the date of the 
        enactment of this Act.

SEC. 1167. PENALTY WITH RESPECT TO CERTAIN ADULTERATED FUELS.

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

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

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

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

    (d) Effective Date.--The amendments made by this section 
shall apply to any transfer, sale, or holding out for sale or 
resale occurring after the date of the enactment of this Act.
    And the Senate agree to the same.
                From the Committee on Transportation and 
                Infrastructure, for consideration of the House 
                bill (except title X) and the Senate amendment 
                (except title V), and modifications committed 
                to conference:
                                   Don Young,
                                   Thomas E. Petri,
                                   Sherwood Boehlert,
                                   Howard Coble,
                                   John J. Duncan, Jr.,
                                   John L. Mica,
                                   Pete Hoekstra,
                                   Steven C. LaTourette,
                                   Spencer Bachus,
                                   Richard H. Baker,
                                   Gary G. Miller,
                                   Robin Hayes,
                                   Rob Simmons,
                                   Henry E. Brown, Jr.,
                                   Sam Graves,
                                   Bill Shuster,
                                   John Boozman,
                                   James L. Oberstar,
                                   Nick Rahall,
                                   Peter A. DeFazio,
                                   Jerry F. Costello,
                                   Eleanor Holmes Norton,
                                   Jerrold Nadler,
                                   Robert Menendez,
                                   Corrine Brown,
                                   Bob Filner,
                                   Eddie Bernice Johnson,
                                   Gene Taylor,
                                   Juanita Millender-McDonald,
                                   Elijah E. Cummings,
                                   Earl Blumenauer,
                                   Ellen O. Tauscher,
                From the Committee on the Budget, for 
                consideration of secs. 8001-8003 of the House 
                bill, and title III of the Senate amendment, 
                and modifications committed to conference:
                                   Jim Nussle,
                                   Mario Diaz-Balart,
                                   John Spratt,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 1118, 
                1605, 1809, 3018, and 3030 of the House bill, 
                and secs. 1304, 1819, 6013, 6031, 6038, and 
                7603 of the Senate amendment, and modifications 
                committed to conference:
                                   Ric Keller,
                                   John Barrow,
                From the Committee on Energy and Commerce, for 
                consideration of provisions in the House bill 
                and Senate amendment relating to Clean Air Act 
                provisions of transportation planning contained 
                in secs. 6001 and 6006 of the House bill, and 
                secs. 6005 and 6006 of the Senate amendment; 
                and secs. 1210, 1824, 1833, 5203, and 6008 of 
                the House bill, and secs. 1501, 1511, 1522, 
                1610-1619, 1622, 4001, 4002, 6016, 6023, 7218, 
                7223, 7251, 7252, 7256-7262, 7324, 7381, 7382, 
                and 7384 of the Senate amendment, and 
                modifications committed to conference:
                                   Joe Barton,
                                   Chip Pickering,
                                   John D. Dingell,
                From the Committee on Government Reform, for 
                consideration of sec. 4205 of the House bill, 
                and sec. 2101 of the Senate amendment, and 
                modifications committed to conference:
                                   Tom Davis,
                                   Todd R. Platts,
                From the Committee on Homeland Security, for 
                consideration of secs. 1834, 6027, 7324, and 
                7325 of the Senate amendment, and modifications 
                committed to conference:
                                   Chris Cox,
                                   Daniel E. Lungren,
                                   Bennie G. Thompson,
                From the Committee on the Judiciary, for 
                consideration of secs. 1211, 1605, 1812, 1832, 
                2013, 2017, 4105, 4201, 4202, 4214, 7018-7020, 
                and 7023 of the House bill, and secs. 1410, 
                1512, 1513, 6006, 6029, 7108, 7113, 7115, 7338, 
                7340, 7343, 7345, 7362, 7363, 7406, 7407, and 
                7413 of the Senate amendment, and modifications 
                committed to conference:
                                   Lamar Smith,
                                   John Conyers,
                From the Committee on Resources, for 
                consideration of secs. 1119, 3021, 6002, and 
                6003 of the House bill, and secs. 1501, 1502, 
                1505, 1511, 1514, 1601, 1603, 6040, and 7501-
                7518 of the Senate amendment, and modifications 
                committed to conference:
                                   Greg Walden,
                                   Ron Kind,
                From the Committee on Rules, for consideration 
                of secs. 8004 and 8005 of the House bill, and 
                modifications committed to conference:
                                   David Dreier,
                                   Shelley Moore Capito,
                                   Jim McGovern,
                From the Committee on Science, for 
                consideration of secs. 2010, 3013, 3015, 3034, 
                3039, 3041, 4112, and title V of the House 
                bill, and title II and secs. 6014, 6015, 6036, 
                7118, 7212, 7214, 7361, and 7370 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Vernon J. Ehlers,
                                   David Reichert,
                                   Bart Gordon,
                From the Committee on Ways and Means, for 
                consideration of title X of the House bill, and 
                title V of the Senate amendment, and 
                modifications committed to conference:
                                   William M. Thomas,
                                   Jim McCrery,
                For consideration of the House bill and Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom DeLay,
                                 Managers on the Part of the House.

                                   James M. Inhofe,
                                   John Warner,
                                   Kit Bond,
                                   George V. Voinovich,
                                   Lincoln Chafee,
                                   Lisa Murkowski,
                                   John Thune,
                                   Jim DeMint,
                                   Johnny Isakson,
                                   David Vitter,
                                   Chuck Grassley,
                                   Orrin Hatch,
                                   Richard Shelby,
                                   Wayne Allard,
                                   Ted Stevens,
                                   Trent Lott,
                                   Jim Jeffords,
                                   Max Baucus,
                                   Joe Lieberman,
                                   Barbara Boxer,
                                   Tom Carper,
                                   Hillary Rodham Clinton,
                                   Frank R. Lautenberg,
                                   Barack Obama,
                                   Kent Conrad,
                                   Daniel K. Inouye,
                                   Jay Rockefeller,
                                    Paul Sarbanes,
                                   Jack Reed,
                                   Tim Johnson,
                                Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 3), to authorize 
funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes, submit the following 
joint statement to the House and the Senate in explanation of 
the effect of the action agreed upon by the managers and 
recommended in the accompanying conference report:
      The Senate amendment to the text of the bill struck all 
of the House bill after the enacting clause and inserted a 
substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The difference between the 
House bill, the Senate amendment, and the substitute agreed to 
in conference are noted below, except for clerical corrections, 
conforming changes made necessary by agreements reached by the 
conferees, and minor drafting and clarifying changes.

                     TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorizations of Programs

               SEC. 1101. AUTHORIZATION OF APPROPRIATIONS

House Bill
            Sec. 1101.
      Subsection (a) authorizes funds out of the Highway Trust 
Fund (other than the Mass Transit Account) for the following 
highway programs: Interstate Maintenance Program, National 
Highway System, Bridge Program, Highway Safety Improvements 
Program, Surface Transportation Program, Congestion Mitigation 
and Air Quality Improvement Program, Appalachian Development 
Highway System Program, Recreational Trails Program, Federal 
Lands Highways Program, National Corridor Infrastructure 
Improvement Program, Coordinated Border Infrastructure Program, 
Projects of National and Regional Significance Program, 
Construction of Ferry Boats and Ferry Terminal Facilities, 
National Scenic Byways Program, Congestion Pricing Pilot 
Program, Deployment of 511 Traveler Information Program, High 
Priority Projects Program, Freight Intermodal Connector 
Program, High Risk Rural Road Safety Improvement Program, 
Highway Use Tax Evasion Program, Pedestrian and Cyclist Equity, 
Dedicated Truck Lanes, Highways for LIFE Program, and 
Commonwealth of Puerto Rico Program.
      Subsection (b) continues the disadvantaged business 
enterprise (DBE) program with minor changes. The Committee 
finds there is a continuing compelling need for the DBE 
program. In enacting TEA-21 in 1998, Congress compiled an 
extensive record on the effects of discrimination in 
transportation contracting. Much of this information remains 
valid today. We agree with those courts that have observed that 
evidence concerning the exclusion of disadvantaged groups 
remains relevant over a considerable period of time. The 
Committee has relied on the information that Congress used in 
1998 in finding a continuing compelling need for the DBE 
program.
      The Committee has also taken notice of data about the 
period between 1998 and today. The data demonstrates the 
continuing need for the program, as DBEs are still not able to 
compete on the same basis as other businesses. First, the 
regulation, found constitutional in a series of recent court 
rulings, tells recipients to set overall goals. Under the 
rules, recipients may set DBE contract goals only for that 
portion of the overall goal that cannot be achieved by 
completely race-neutral means. Highway and transit program data 
for 2000-2002 shows that the overwhelming majority of 
recipients have to set DBE contract goals to achieve all or 
part of their overall goals. Unfortunately, race-neutral means 
alone cannot overcome the persisting effects of discrimination.
      Second, in several States for which DOT has comparative 
2002 data, participation by minority- and women-owned 
businesses in State-funded highway contracts to which no 
contract goals applied fell well short both of DBE overall 
goals and DBE participation in federally-assisted contracts. If 
states are to ensure equal opportunity for DBEs, contract goal 
programs remain essential. Third, DOT provided 15 detailed 
studies from states and cities that found disparities between 
the availability and utilization of minority- and women-owned 
businesses in government contracting. The courts agree that it 
is fair to make an inference of discriminatory exclusion from 
such disparities.
Senate Bill
            Sec. 1101.
      This section authorizes sums out of the Highway Trust 
Fund (other than Mass Transit Account) for the Interstate 
Maintenance Program, National Highway System, Bridge Program, 
Surface Transportation Program, Congestion Mitigation and Air 
Quality Improvement Program, Highway Safety Improvement 
Program, Appalachian Development Highway System Program, 
Recreational Trails Program, Federal Lands Highway Program, 
Multi-State Corridor Planning Program, Border, Planning, 
Operations and Technology Program, National Scenic Byways 
Program, Infrastructure Performance and Maintenance Program, 
Construction of Ferry Boats and Ferry Terminal Facilities, 
Puerto Rico Highway Program, Public-Private Partnerships Pilot 
Program, Denali Access System, Delta Region Transportation 
Development Program, and Intermodal Passenger Facilities.
      The authorizing amounts to be appropriated are as 
follows:
      Interstate Maintenance Program: $5,799,188,140 for fiscal 
year 2005, $6,032,059,334 for fiscal year 2006, $6,049,378,729 
for fiscal year 2007, $6,351,069,528 for fiscal year 2008, and 
$6,443,591,248 for fiscal year 2009.
      National Highway System: $7,054,146,316 for fiscal year 
2005, $7,333,629,462 for fiscal year 2006, $7,354,650,712 for 
fiscal year 2007, $7,720,825,041 for fiscal year 2008, and 
$7,833,068,496 for fiscal year 2009.
      Bridge Program: $4,970,732,691 for fiscal year 2005, 
$5,157,180,500 for fiscal year 2006, $5,141,987,920 for fiscal 
year 2007, $5,429,922,039 for fiscal year 2008, and 
$5,509,052,458 for fiscal year 2009.
      Surface Transportation: $7,318,023,129 for fiscal year 
2005, $7,597,631,986 for fiscal year 2006, $7,619,446,491 for 
fiscal year 2007, $7,999,438,719 for fiscal year 2008, and 
$8,116,064,782 for fiscal year 2009.
      Congestion Mitigation and Air Quality Improvement: 
$1,979,088,016 for fiscal year 2005, $2,049,058,323 for fiscal 
year 2006, $2,054,941,629 for fiscal year 2007, $2,157,424,382 
for fiscal year 2008, and $2,188,954,810 for fiscal year 2009.
      Highway Safety Improvement Program: $1,196,657,870 for 
fiscal year 2005, $1,234,248,870 for fiscal year 2006, 
$1,246,818,516 for fiscal year 2007, $1,308,999,063 for fiscal 
year 2008, and $1,328,233,842 for fiscal year 2009.
      Appalachian Development Highway System Program: 
$532,518,499 for fiscal years 2005 through 2009.
      Recreational Trails Program: $54,154,424 for fiscal years 
2005 through 2009.
      Federal Lands Highway Program Indian Reservation Roads: 
$291,251,572 for fiscal year 2005, $312,578,616 for fiscal year 
2006, $334,905,660 for fiscal year 2007, $357,232,704 for 
fiscal year 2008, and $379,559,748 for fiscal year 2009.
      Recreation Roads: $44,654,088 for each fiscal years 2005 
through 2009.
      Park Roads and Parkways: $276,855,346 for fiscal year 
2005, and $285,786,164 for fiscal years 2006 through 2009.
      Refuge Roads: $26,792,453 for fiscal years 2005 through 
2009.
      Public Lands Highways: $267,924,258 for fiscal years 2005 
through 2009.
      Safety: $35,723,270 for fiscal years 2005 through 2009.
      Multi-State Corridor Planning Program: $120,566,038 for 
fiscal year 2005, $140,660,377 for fiscal year 2006, 
$160,754,717 for fiscal year 2007, $180,849,057 for fiscal year 
2008, and $200,943,396 for fiscal year 2009.
      Border Planning, Operations, and Technology Program: 
$120,566,038 for fiscal year 2005, $140,660,377 for fiscal year 
2006, $160,754,717 for fiscal year 2007, $180,849,057 for 
fiscal year 2008, and $200,943,396 for fiscal year 2009.
      National Scenic Byways Program: $31,257,862 for fiscal 
year 2005, $32,150,943 for fiscal year 2006, $33,044,025 for 
fiscal year 2007, and $34,830,189 for fiscal years 2008 and 
2009.
      Infrastructure Performance and Maintenance Program: $0.
      Construction of Ferry Boats and Terminal Facilities 
Program: $54,154,424 for fiscal years 2005 through 2009.
      Puerto Rico Highway Program: $129,496,855 for fiscal year 
2005, $133,069,182 for fiscal year 2006, $137,534,591 for 
fiscal year 2007, $142,893,082 for fiscal year 2008, and 
$145,572,327 for fiscal year 2009.
      Public-Private Partnerships Pilot Program: $8,930,818 for 
fiscal years 2005 through 2009.
      Denali Access System: $26,792,453 for fiscal years 2005 
through 2009.
      Delta Region Transportation Development Program: 
$71,446,541 for fiscal years 2005 through 2009.
      Intermodal Passenger Facilities: $8,930,818 for fiscal 
years 2005 through 2009.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications. This provision authorizes funds out of the 
Highway Trust Fund (other than the Mass Transit Account) for 
the highway programs: Interstate Maintenance Program, National 
Highway System, Bridge Program, Highway Safety Improvements 
Program, Surface Transportation Program, Congestion Mitigation 
and Air Quality Improvement Program, Appalachian Development 
Highway System Program, Recreational Trails Program, Federal 
LandsHighways Program, National Corridor Infrastructure 
Improvement Program, Coordinated Border Infrastructure Program, 
Projects of National and Regional Significance Program, Construction of 
Ferry Boats and Ferry Terminal Facilities, National Scenic Byways 
Program, High Priority Projects Program, Safe Routes to School Program, 
Highways for LIFE Program, and Puerto Rico Highway Program.
      Subsection (b) continues the disadvantaged business 
enterprise (DBE) program with minor changes. The Committee 
finds there is a continuing compelling need for the DBE 
program. In enacting TEA 21 in 1998, Congress compiled an 
extensive record on the effects of discrimination in 
transportation contracting. Much of this information remains 
valid today. We agree with those courts that have observed that 
evidence concerning the exclusion of disadvantaged groups 
remains relevant over a considerable period of time. The 
Committee has relied on the information that Congress used in 
1998 in finding a continuing compelling need for the DBE 
program. Under DBE, not less than 10 percent of the funds 
provided under titles I and II of this Act shall be expended 
with small businesses owned and controlled by socially and 
economically disadvantaged individuals, except to the extent 
the Secretary of Transportation determines otherwise. The 
provision in current law requiring a review of the program by 
the Comptroller General of the United States has been 
eliminated. The Comptroller General completed the required 
review in June 2001.

                     SEC. 1102. OBLIGATION CEILING

House Bill
            Sec. 1102.
      This section provides the obligation limitation for the 
federal-aid highway and highway safety construction programs. 
Subsection (b) addresses the exemptions to the obligation 
limitation. Paragraphs 1-8 in this subsection are identical to 
TEA-21. Paragraph (9) is added to address three year obligation 
authority (OA) made available under TEA-21 for research 
programs and ``no-year'' OA made available for certain programs 
and projects under TEA-21 or in subsequent appropriations acts. 
Subsections (c), (d), (e), (f), (g), (h), and (i) address how 
the obligation authority is distributed, the redistribution of 
unused obligation authority, and the limitation on obligations 
for administrative expenses are virtually identical to TEA-21.
Senate Bill
            Sec. 1102.
      This section sets limits on obligations for spending.
      The general limitation on spending shall be as follows:
      $34,425,380,000 for fiscal year 2005,
      $37,154,999,523 for fiscal year 2006,
      $37,450,167,691 for fiscal year 2007,
      $38,816,364,417 for fiscal year 2008, and
      $40,321,257,845 for fiscal year 2009.
Conference Substitute
      The Conference adopts provisions from both House and 
Senate bills with modified funding levels and a funding 
flexibility provision for fiscal year 2005. This flexibility 
provision allows states to obligate funds from 1301 and 1302 of 
this Act and sections 117 and 144(g) of title 23 on core 
formula programs.

                       SEC. 1103. APPORTIONMENTS

House Bill
            Sec. 1103.
      This section makes changes to the process by which 
apportionments are made pursuant to Section 104 of Title 23. 
Subsection (a) of this section amends the way administrative 
expenses for FHWA and FMCSA are provided. These expenses were 
formerly funded as a takedown and are now a specific authorized 
amount.
      Subsection (b) of this section changes the set-aside 
amount for the Alaska Highway and the set-asides for the U.S. 
Territories under the National Highway System program 
apportionment formula.
      Subsection (c) of this section requires the report 
mandated by Section 104(j) of Title 23 be available on the 
Internet.
      Subsection (d) of this section makes a conforming 
amendment to the metropolitan planning set-aside formula to 
reflect the fact that administrative expenses are no longer 
funded as a takedown.
      Subsection (e) of this section updates the reference for 
the Puerto Rico Highway program, replacing the TEA-21 reference 
with a TEA-LU reference.
Senate Bill
            Sec. 1103.
      This section makes amendments to current apportionments. 
It authorizes the appropriation of funds for the administrative 
expenses of the Federal Highway Administration and details the 
use of these funds.
      This section amends the amounts authorized for 
administrative expenses, for specified programs to:
      $415,283,019 for fiscal year 2005,
      $428,679,245 for fiscal year 2006,
      $442,075,472 for fiscal year 2007,
      $455,471,698 for fiscal year 2008, and
      $468,867,925 for fiscal year 2009.
      Funds authorized in this section shall be used for the 
Federal-aid highway program and programs authorized under 
chapter 2 of title 23, U.S.C. Such sums as the Secretary 
determines to be appropriate shall be transferred to the 
Appalachian Regional Commission for administrative activities 
associated with the Appalachian highway development system.
      The bill increases the set-aside for metropolitan 
planning to 1.5 percent from the same programs as under TEA-21 
and, additionally, the new Highway Safety Program and Equity 
Bonus Program. Because the 2000 Census establishes 46 new 
Metropolitan Planning Organizations (MPOs), an increase in 
funding for metropolitan planning is required. Under the law, 
each MPO is directed to assume the responsibility for carrying 
out specific, costly and detailed Federal analysis as required 
under NEPA, Air Quality Conformity, Long Range Planning, 
Transportation Improvement Program planning, transportation 
modeling, operations, and public involvement. This bill further 
enhances MPO planning for habitat plan development, freight 
movement, transportation security, deployment of ITS systems 
including operating and managing traffic centers and incident 
management programs, and interacting with emergency management 
officials regarding homeland security issues.
Conference Substitute
      The Conference agrees to provisions from both House and 
Senate bills with modifications. This section amends current 
apportionments. It authorizes the appropriation of funds for 
the administrative expenses of the Federal Highway 
Administration and details the use of these funds.
      This provision increases the set-aside amount for the 
Alaska Highway and the set-asides for the U.S. Territories 
under the National Highway System programapportionment formula. 
Changes are also made to the Operation Lifesaver and High-Speed Rail 
Corridor programs from set-asides to become individually-funded 
programs.
      The Conference adopts the Senate CMAQ provision with 
modifications. The addition of a weighting factor for PM2.5 
nonattainment areas is not included in the substitute. The 
Senate language regarding an additional adjustment factor for 
carbon monoxide is adopted with no modifications.
      For areas in ozone nonattainment, the Conference applies 
a weighting factor of 1.0 for areas designated under subpart 1 
of part D of title I of the Clean Air Act. The Conference 
maintains the current system of varied weighting factors for 
areas classified under subpart 2 and intends it to apply to 8-
hour nonattainment areas in the same manner it did to 1-hour 
nonattainment areas. For example, an 8-hour ozone nonattainment 
area that is classified by EPA as moderate pursuant to subpart 
2 would receive a weighting factor of 1.1, while an 8-hour 
nonattainment area classified by EPA as serious pursuant to 
subpart 2 would receive a weighting factor of 1.2.

                    SEC. 1104. EQUITY BONUS PROGRAM

House Bill
            Sec. 1104.
      This section retains the Minimum Guarantee program that 
was created in TEA-21.
Senate Bill
            Sec. 1104.
      This section strikes and replaces the Minimum Guarantee 
Program under Section 105 of Title 23, United States Code with 
the Equity Bonus Program.
      The Secretary shall ensure that the percentages of 
apportionments of each State is sufficient to ensure that no 
State's percentage return from the Highway Trust Fund is less 
than 92 percent in each of the fiscal years 2005-2009. The rate 
of return shall include from each State, the total 
apportionments made for the fiscal year for the Interstate 
Maintenance Program, the National Highway System Program, the 
Bridge Program, the Surface Transportation Program, the 
Congestion Mitigation and Air Quality Improvement Program, the 
Highway Safety Improvement Program, the Appalachian Development 
Highway System Program, the Recreational Trails Program, the 
Infrastructure Performance and Maintenance Program, the 
Metropolitan Planning Program, and the Equity Bonus Program.
      Special rules protect the calculations for States with a 
population density of less than 20 persons per square mile, a 
population less than 1 million, a median household income less 
than $35,000, or a State with a fatality rate during 2002 on 
Interstate highways greater than 1 fatality per 100 million 
vehicle miles traveled on Interstate highways. Further, no 
State receives apportionments less than 110 percent of the 
average annual apportionments for specified programs during 
1998-2003. There is a cap on the Equity Bonus such that no 
State may receive apportionments more than a specified 
percentage of their average for 1998-2003. The scope, or 
percent funding included in the Equity Bonus program, remains 
the same as TEA-21 at 92.5 percent.
Conference Substitute
      The conference adopts the Senate structure with 
modifications. The Secretary shall ensure that the percentages 
of apportionments of each State is sufficient to ensure that no 
State's percentage return from the Highway Trust Fund is less 
than 90.5 percent in fiscal year 2005 and 2006, 91.5 percent in 
2007, and 92 percent in 2008 and 2009. The rate of return shall 
include from each State, the total apportionments made for the 
fiscal year for the Interstate Maintenance Program, the 
National Highway System Program, the Bridge Program, the 
Surface Transportation Program, the Congestion Mitigation and 
Air Quality Improvement Program, the Highway Safety Improvement 
Program, the Appalachian Development Highway System Program, 
the Recreational Trails Program, the Safe Routes to School 
Program, the Metropolitan Planning Program, the High Priority 
Project Program, the Railway-Highway Crossings Program, the 
Coordinated Border Infrastructure Program, and the Equity Bonus 
Program.
      Special rules protect the share of apportionments to be 
provided to any State meeting any one or more of the following 
criteria: total population density of less than 40 persons per 
square mile, as reported in the decennial census conducted by 
the Federal Government in 2000, having at least 1.25 percent of 
its total acreage in Federal ownership based on GSA's ``Federal 
Real Property Profile, as of September 30, 2004'' report; or a 
population less than 1 million as reported in that census; or a 
median household income less than $35,000 as reported in that 
census; or a State with a fatality rate during 2002 on 
Interstate highways greater than 1 fatality per 100 million 
vehicle miles traveled on Interstate highways; or a State with 
an indexed, state motor fuels excise tax rate higher than 150 
percent of the Federal motor fuels excise tax rate on the date 
of enactment of this Act.
      Further, no State receives apportionments less than 
certain percentages above their TEA-21 average annual 
apportionments for specified programs during 1998-2003. (FY 
2005--117 percent; FY 2006--118 percent; FY 2007--119 percent; 
FY 2008--120 percent; and FY 2009--121 percent)

              SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY

House Bill
            Sec. 1108.
      This section continues the revenue aligned budget 
authority, but in a way that ensures greater stability in 
program funding level adjustments.
Senate Bill
            Sec. 1105.
      This section changes the calculation of Revenue Aligned 
Budget Authority under section 110 of title 23, United States 
Code.
      A new method of determining RABA is established in this 
section. This provision amends section 110 of title 23, to 
extend the RABA provision through FY 2009. It also amends 
section 110 to provide that if the RABA adjustment in a fiscal 
year is negative, the amount of contract authority apportioned 
to the States for that year shall be reduced by an amount equal 
to the negative RABA. Under TEA-21, negative adjustments were 
delayed until the succeeding fiscal year. Under the new method, 
no reduction to apportionments are made for RABA for a fiscal 
year if the cash balance of the highway trust fund (other than 
the mass transit account) exceeds $6,000,000,000 on October 1 
of that fiscal year.
Conference Substitute
      The Conference adopts concepts from both the House and 
Senate provisions. This provision changes the calculation of 
Revenue Aligned Budget Authority under section 110 of title 23 
to ensure greater stability in program funding level 
adjustments.
      A new method of determining RABA is established in this 
section. This provision amends section 110 of title 23, to 
extend the RABA provision through FY 2009. RABA calculations 
will be spread over 2 fiscal years, rather than in a single 
year as in TEA-21.
      For fiscal year 2007, any positive RABA amounts will be 
applied to increasing the minimum rate of return for donor 
States as close to 92 percent as possible. Any remaining funds 
are to be distributed proportionally.
      Under the new method, no reduction to apportionments are 
made for RABA for a fiscal year if the cash balance of the 
highway trust fund (other than the mass transit account) 
exceeds $6,000,000,000 on October 1 of that fiscal year.

               SEC. 1106. FUTURE INTERSTATE SYSTEM ROUTES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1801.
      This section replaces the 12-year requirement with a 20-
year requirement to provide States more time to substantially 
complete construction of highways designated as future 
Interstate System routes, before the States forfeit future 
Interstate designation status. This section also extends the 
time limitation contained in existing agreements from 12 years 
to 20 years.
Conference Substitute
      The Conference adopts the Senate provision with a 
modification to change the timeframes from 20 years to 25 
years.

                    SEC. 1107. METROPOLITAN PLANNING

House Bill
            Sec. 1816.
      This section requires the States to distribute planning 
funds to the metropolitan planning organizations within 30 days 
of receipt of such funds from the Secretary.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with a 
modification to increase the set-aside for metropolitan 
planning funds from 1 percent to 1.25 percent.

            SEC. 1108. TRANSFER OF HIGHWAY AND TRANSIT FUNDS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1302.
      This section clarifies and authorizes the transferability 
of funds from the Highway Trust Fund.
      This provision clarifies that title 23 funds may be 
transferred by the Secretary to the Federal Transit 
Administration for other than a transit capital project, 
provided such project is eligible for title 23 assistance.
      This section also allows funds derived from the HTF to be 
transferred, at the request of a State, to another State or 
States or to a Federal agency provided that they are expended 
on title 23 eligible projects.
      An equal amount of obligation authority is transferred 
with funds transferred from one State to another State. Funds 
may only be used for the same purpose and in the same manner 
for which they were authorized.
Conference Substitute
      The Conference adopts the Senate provision.

                     SEC. 1109. RECREATIONAL TRAILS

House Bill
            Sec. 1119.
      This section makes various improvements to the 
recreational trails program established in section 206 of Title 
23, U.S. Code.
      Subsection (a) amends 23 U.S.C. 104(h) to permit the use 
of administrative funds for training and deletes reference to 
the National Recreational Trails Advisory Committee.
      Subsection (b) amends 23 U.S.C. 206(d)(2) regarding 
permissible uses of funds to include assessment of trail 
conditions and to clarify that new trails on Federal lands must 
be recommended in a statewide comprehensive outdoor recreation 
plan.
      Subsection (c) strikes 23 U.S.C. 206 (b)(3)(C), which 
permits States to waive requirements regarding distribution of 
funds for various types of projects.
      Subsection (d) amends 23 U.S.C. 206(f) to provide that 
the federal share for recreational trails projects shall be 
determined in accordance with section 120(b) of Title 23 and 
allows recreational trails funds to be used toward the Federal 
share of certain other Federal programs.
      Subsection (e) amends 23 U.S.C. 206(h)(1) to provide that 
pre-approval planning and environmental compliance costs can be 
credited toward the non-Federal share of a project.
      Subsection (f) directs the Secretary to encourage the 
States to use qualified youth conservation or service corps to 
complete trail projects.
Senate Bill
            Sec. 1603.
      This section allows funds to be used to provide and 
maintain recreational trails for motorized and nonmotorized 
recreational trail uses.
      The changes in section 206 of title 23 amend the 
permissible uses of funds apportioned to States under this 
program. Eligible categories are added to permit trail 
assessment for accessibility and maintenance, and to hire trail 
crews, youth conservation, or service corps to perform 
recreational trails activities. Non-law enforcement trail 
safety and trail-use monitoring patrols, and trail-related 
training are now activities eligible for Recreational Trails 
Program (RTP) educational funds. However, funds provided under 
this program are not intended to support routine law 
enforcement.
      Under this section, pre-approval planning and 
environmental compliance costs may be credited toward the non-
Federal share for RTP projects, limited to costs incurred less 
than 18 months prior to project approval.
      Since projects in this section are much smaller than 
typical highway projects, this program is relieved of several 
requirements, which, while appropriate for large highway 
projects, are excessively burdensome for small trail projects. 
RTP projects are not subject to sections 112, 114, 116, 134, 
135, 138, 217, and 301, of title 23 and section 303 of title 
49.
Conference Substitute
      The Conference adopts the House provision with a 
modification to add the Senate provision (H) under 
``Permissible Uses'' which allows for the development and 
dissemination of publications and operation of educational 
programs to promote safety and environmental protection, 
supporting non-law enforcement trail safety and trail use 
monitoring patrol programs, and providing trail-related 
training. The Conferees change the administrative expenses from 
a percentage of program funding to a specific annual 
authorization.

              SEC. 1110. TEMPORARY TRAFFIC CONTROL DEVICES

House Bill
            Sec. 1107.
      This section amends section 109(e) of title 23 and 
section 112 of title 23 to require that contracts for federally 
funded highway construction projects include costs for 
appropriate safety measures. The amendment to section 109 
requires that temporary traffic control devices be installed 
and maintained during construction and maintenance projects in 
order to provide protection for construction workers. The 
amendment to section 112 requires the Secretary to issue 
regulations establishing the conditions for and the appropriate 
use of Federal funds for uniformed law enforcement officers, 
positiveprotective measures between traffic and workers, and 
installation of temporary traffic control devices during construction 
and maintenance projects.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House position.

      SEC. 1111. SET-ASIDES FOR INTERSTATE DISCRETIONARY PROJECTS

House Bill
            Sec. 1115.
      This section eliminates the Interstate Maintenance 
Discretionary program in Section 118 of Title 23. The Committee 
does not intend to have any changes to this program affect any 
projects that have already been funded under this program.
Senate Bill
            Sec. 1805.
      This section continues the interstate discretionary 
project set-aside listed in section 118(c)(1) of title 23 for 
fiscal years 2005 through 2009 and increases the amount.
Conference Substitute
      The Conference adopts the Senate position.

                      SEC. 1112. EMERGENCY RELIEF

House Bill
            Sec. 1110.
      This section authorizes additional amounts for this 
program above the $100 million per year to be derived from the 
General Fund. It is the Committee's intent that if there is a 
need for additional funds over and above the annually 
authorized level of $100 million that those funds be 
appropriated from the General Fund.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House version.

               SEC. 1113. SURFACE TRANSPORTATION PROGRAM

House Bill
            Sec. 1111.
      This section continues the requirement in Section 
133(f)(1) of Title 23 that States suballocate a portion of 
their Surface Transportation Program funds to urbanized areas 
with over 200,000 individuals.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with a 
modification to add eligibility for projects relating to 
intersections that have high accident rates or high levels of 
congestion on the Federal-aid system.

                   SEC. 1114. HIGHWAY BRIDGE PROGRAM

House Bill
            Sec. 1116.
      Subsection (a) retains the principles for applications 
for and approval of Federal assistance for bridge replacement 
or rehabilitation allowed in current law. It also includes 
additional language to allow Federal participation in 
preventive maintenance on a bridge, as well as, installing 
scour countermeasures to a bridge.
      Subsection (b) continues the discretionary bridge program 
and subsection (c) changes the lower bound for the off-system 
set-aside from 15 percent to 20 percent.
Senate Bill
            Sec. 1807.
      The Highway Bridge Program provides funds to assist 
States in improving the condition of their bridges, through 
replacement, rehabilitation, and systematic preventive 
maintenance.
      The changes to section 144 allow the use of bridge funds 
for: (1) preventive maintenance activities consistent with the 
section 116(d) of the NHS Designation Act, (2) preventive 
maintenance on off-system bridges, and (3) scour 
countermeasures without regard to eligibility. This section 
also increased bridge discretionary funding to $133,962,264.
Conference Substitute
      The Conference agrees to accept the House provision with 
modifications. The off-system bridge set-aside is to remain as 
current law at 15 percent and the Federal share for highway 
bridges projects is now eligible for up to 90 percent.

              SEC. 1115. HIGHWAY USE TAX EVASION PROJECTS

House Bill
            Sec. 1112.
      This section continues the existing program to combat 
highway use tax evasion and makes changes designed to reduce 
tax evasion and increase receipts into the Highway Trust Fund.
      The Highway Use Tax Evasion program supports State and 
Federal efforts to enhance motor fuel tax enforcement. To make 
the program more effective, this provision would amend section 
143 of title 23 to: (1) dedicate funding for intergovernmental 
enforcement efforts; (2) allow projects for identification of 
tax evasion in the area of foreign imported fuel; (3) assist 
States and Indian Tribes in addressing issues related to the 
collection of State motor fuel taxes; and (4) provide for 
annual reporting on examinations, criminal investigations, and 
audits by the States and the Internal Revenue Service (IRS).
Senate Bill
      Comparable provision in Senate finance title.
Conference Substitute
      The Conference agrees to the House provision with funding 
modifications.

           SEC. 1116. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM

House Bill
            Sec. 1113.
      This section directs the Secretary to apportion funds 
made available for the Appalachian Development Highway System 
(ADHS) among the states on the basis of theestimated cost to 
complete the system. It specifies that such funds are subject to title 
23 requirements and are available to construct ADHS highways and access 
roads. It also prohibits the use of toll revenues as non-federal match 
for the construction, improvement, and maintenance of highways, 
bridges, or tunnels.
Senate Bill
            Sec. 1808.
      The Appalachian Development Highway System program 
provides funds for the construction of the Appalachian corridor 
highways in thirteen States and for the establishment of a 
State-Federal framework to meet the needs of the region.
      This section prescribes how funds made available for the 
Appalachian development highway system are to be apportioned to 
the States in the Appalachian region. The latest cost estimate 
is to be used as the basis for apportionments. The funding 
shall remain available until expended and the Federal share is 
delineated in section 201 of the Appalachian Regional 
Development Act of 1965. This section also prohibits the use of 
toll credits on projects funded under the Appalachian 
development highway system program under subtitle IV of title 
40.
Conference Substitute
      The Conference adopts the House version.

 SEC. 1117. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM

House Bill
            Sec. 1117.
      This section reauthorizes the program for fiscal years 
2004 through 2009. It prohibits funds made available for this 
program from being transferred to other programs, and 
establishes the federal cost share for projects carried out 
under this program in accordance with section 120(b) of title 
23. Subsection (c) establishes a pilot program to support 
transportation planning and public participation in decision 
making.
Senate Bill
            Sec. 1813.
      This section continues the Transportation and Community 
and System Preservation (TCSP) Pilot Program, a comprehensive 
initiative of research and implementation grants to investigate 
the relationships between transportation and community and 
system preservation, as well as private sector-based 
initiatives. This section also makes TCSP projects STP 
eligible.
      This section requires the Secretary to establish a 
comprehensive program to facilitate the planning, development, 
and implementation of strategies by States, metropolitan 
planning organizations, Federally-recognized Indian tribes, and 
local governments to integrate transportation, community, and 
system preservation plans and practices.
Conference Substitute
      The conference agrees to the Senate provision with 
modifications to drop subsection (b)(18) from the Senate passed 
bill and move (19) to an eligible activity under the Surface 
Transportation Program. The conference also agreed to not 
codify this program.

                 SEC. 1118. TERRITORIAL HIGHWAY PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1818.
      The changes made in section 215 of title 23 update and 
consolidate the statutory provisions governing the territorial 
highway program.
Conference Substitute
      The Conference adopts the Senate provision.

                   SEC. 1119. FEDERAL LANDS HIGHWAYS

House Bill
            Sec. 1120.
      Subsection (a) amends the contracting provisions of the 
Indian reservation roads program in section 202(d)(3) of title 
23. This section was added to the United States Code in TEA 21. 
The Committee felt at that time that the congressional intent 
with regard to tribal contracting authority was clear. 
Unfortunately, the Committee now believes the full intent of 
the TEA 21 amendments has not been fulfilled. This subsection 
aims to clarify the intent of the Committee on this important 
point for the Indian tribes.
      The Committee is aware that certain tribes currently 
possess the ability to carry out themselves, or contract 
directly with outside providers, highway, bridge, and transit 
projects that are located on Indian reservations or that 
provide access to the reservations, including planning, 
research, engineering, and construction activities relating to 
such projects. Other tribes are developing their ability to 
perform those functions.
      This amendment to section 202(d)(3) of title 23 is 
intended to empower Indian tribes that have the ability and 
interest to carry out the activities in-house or to contract 
directly with outside providers for the activities consistent 
with the Indian Self-Determination and Education Assistance 
Act. It allows tribes to choose, on a project-by-project basis, 
those activities that they want to perform themselves or to 
contract directly with outside providers. At the same time, 
existing capabilities within the Bureau of Indian Affairs are 
retained to support tribes that do not have such ability or 
interest. It directs that funds be paid directly by the Federal 
Highway Administration (FHWA) to the Indian tribal government 
when a tribe carries out, or contracts directly with outside 
providers for a planning, research, engineering, or 
construction activity relating to a highway, bridge, or transit 
project located on an Indian reservation or that provides 
access to the reservation. Furthermore, it directs FHWA to 
determine the amount of funds for such activity and project 
that is to be received by the Indian tribe according to the 
funding formula established under section 202(d) of title 23, 
without deducting from it any non-project-related 
administrative take-down or project management costs imposed by 
the Bureau of Indian Affairs or the Department of the Interior.
Senate Bill
            Sec. 1806.
      The Federal Lands Highway Program provides funding for a 
coordinated program of public roads and transit facilities 
serving Federal and Indian lands.
      Section 101 of title 23 is amended to include new 
definitions for `recreation roads' and `public forest service 
roads,' to reflect new classes of Federal lands highways. It 
also changes the definitions of `forest development roads and 
trails' and `forest road or trail' to reflect current U.S. 
Forest Service definitions and a new class of Federal lands 
highways.
      The Federal Lands Highways program allocation in section 
202 of title 23, USC is amended to: (1) revise the date on 
which the Indian Reservation Road fund distribution formula 
regulation is published, from April 1999 to April 2004, and the 
year in which the new formula is implemented, from October 1999 
to October 2004; (2) allow the use of Indian Reservation Road 
Bridge funds to be used for design, engineering and 
preconstruction as well as construction; (3) limit the amounts 
that the Bureau of Indian Affairs may use to pay the costs of 
administering the Indian reservation roads program (including 
the administrative expenses relating to individual projects 
associated with the Indian reservation roads program) to 6 
percent; (4) require not later than 30 days after the date on 
which funds are made available to the Secretary of the Interior 
the distributionand availability of such funds for immediate 
use by eligible Indian tribes; (5) establish a demonstration program 
under which eligible tribes may enter into contracts and agreements 
with the Secretary of Transportation under the Indian Self-
Determination and Education Assistance Act; (6) authorize $13,396,226 
annually for IRR bridge planning, design, engineering, preconstruction, 
construction and inspection; and (7) make Indian reservation road 
maintenance expenses eligible for funding up to certain amounts.
      Section 204 of title 23 is amended to: (1) allow the 
Secretary to enter into agreements as well as contracts, and 
(2) expand the use of refuge road funds to be used for 
interpretive signage, maintenance of public roads in National 
Fish hatcheries, payment of the non-Federal share of Federal-
aid highway and transit projects, and maintenance and 
improvement of recreational trails. Funding used for trails 
would be limited to 5 percent of available funding per fiscal 
year.
      Maintenance and improvement projects on recreation roads 
consistent with or identified in a land use plan do not need 
any additional environmental reviews or assessments under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) if there is no new information and no significant changes 
to the proposal bearing on environmental concerns. Improvement 
projects include those consisting of one or more of the 
following elements: roadway widening, adding shoulders, paving 
of gravel roads, gravelling of earth roads, rebuilding of the 
roadway subgrade, reshaping the roadway surface, replacing 
culverts, rehabilitation or widening of bridges, minor grade 
and curvature adjustments to short sections of roads, and the 
installation of signs, pavement striping, guardrails and other 
safety hardware.
      A safety funding category is created to provide dedicated 
funds for transportation safety improvement projects, 
collection of safety information, development and operation of 
safety management systems, highway safety education programs, 
and other eligible activities under section 402 of title 23. 
Safety funding is distributed among the Bureau of Reclamation, 
the Bureau of Indian Affairs, the Bureau of Land Management, 
the Forest Service, the Fish and Wildlife Service, and the Army 
Corps of Engineers.
      A recreation roads funding category is created to provide 
dedicated funds for improvement projects for public roads under 
the jurisdiction of the Bureau of Land Management, Bureau of 
Reclamation, Forest Service, Department of Defense, and Army 
Corps of Engineers, and that are owned by the U.S. Government.
Conference Substitute
      The conference adopts the Senate provision with several 
modifications. New funding and eligibility categories for 
safety and recreation roads are eliminated. Specific dollar 
amounts are identified for program management oversight and 
project-related administrative expenses of the Bureau of Indian 
Affairs equaling roughly 6 percent of each year's program 
allocation. These amounts are still subject to reduction upon a 
tribe's request for use in carrying out contracts and 
agreements in accordance with the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.).
      In addition to contracts and agreements currently 
permitted under section 202(d)(3) of title 23 between tribes 
and the Secretary of the Interior in accordance with the Indian 
Self-Determination and Education Assistance Act (ISDEAA), 
tribes will also be able to enter into contracts and agreements 
in accordance with ISDEAA for IRR programs or projects with the 
Secretary of Transportation.
      Amounts authorized for Indian reservation road bridges is 
increased to $14 million annually. Within the office of the 
Secretary is created a new Deputy Assistant Secretary for 
Tribal Government Affairs. The Secretary is also directed to 
conduct a national IRR survey, and to conduct a study of 
methods to reduce collisions between motor vehicles and 
wildlife.

                 SEC. 1120. PUERTO RICO HIGHWAY PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1811.
      Section 173 of title 23 authorizes the continuation of 
the Puerto Rico Highway Program to carry out a highway program 
in the Commonwealth of Puerto Rico.
      The committee continues the requirement to distribute the 
lump sum authorized each year to programs in the same 
proportions that Puerto Rico received apportionments of such 
funds in 1997. The funds are subject to the penalties under 
titles 23 and 49 that would apply to apportionments from the 
programs.
Conference Substitute
      The Conference adopts the Senate language with minor 
modifications.

                       SEC. 1121. HOV FACILITIES

House Bill
            Sec. 1208.
      This section adds a new section 168 to title 23 that 
authorizes the use of High Occupancy Vehicle lanes. Subsection 
(a) of the proposed section 168 in title 23 allows a state 
agency to establish the occupancy requirements of vehicles 
operating on an HOV facility except that no fewer than 2 
occupants per vehicle may be required for use of a HOV 
facility.
      This section also provides the exemptions for the HOV 
occupancy requirements including motorcycles, bicycles, public 
transportation vehicles, and High Occupancy Toll (HOT) vehicles 
and low emission and energy-efficient vehicles.
      For HOT lanes the state agency must charge operators of 
vehicles with less than the established occupancy requirements 
a fee. The agency must also establish a program that addresses 
how motorists can enroll and participate in the toll program, 
automatically collects tolls, and establishes policies and 
procedures to manage demand by varying the toll, enforce 
violations, and permit low-income drivers to pay a reduced 
toll.
      For inherently low emission vehicles, a state may allow 
the use of HOV lanes even if the occupancy requirements are not 
met so long as the vehicles are certified pursuant to section 
88.311-93 of title 40, Code of Federal Regulations. The state 
agency may also allow other low emission and energy efficient 
vehicles to pay a toll to use HOV lanes even if the occupancy 
requirements are not met if those vehicles meet the 
certification requirements that the EPA is directed to develop 
in subsection (e). The toll amount charged to low emission 
vehicles not certified pursuant to the CFR and other energy 
efficient vehicles may be less than other HOT lane vehicles, or 
the toll may be zero.
      This section also sets requirements applicable to tolls 
on HOV lanes. This subsection verifies that HOV facilities on 
the interstate can be tolled pursuant to the provisions of this 
section. The subsection also states that the state agency must 
first use the toll revenue to repay debt and provide a 
reasonable rate of return on investments and then must give 
priority consideration to projects for developing alternatives 
to single occupancy vehicle travel and projects for improving 
highway safety, including projects that improve safety by 
providing increased capacity.
      This section addresses HOV facility management, 
operation, monitoring and enforcement. If a state agency allows 
single occupancy HOV vehicles to use the facility it must 
ensure that vehicles maintain a minimum operating speed 90 
percent of the time over a 6-month period during weekday peak 
travel periods.
Senate Bill
            Sec. 1606.
      This section amends section 102(a) of title 23 to clarify 
existing law and provide more flexibility to State and local 
agencies for effective management of HOV facilities.
      This section identifies the types of vehicles that are 
exempt from meeting the minimum occupancy requirements for HOV 
facilities. This provision also identifies the possible options 
that responsible agencies may select from and use as 
operational strategies to maximize the use of existing and 
planned future HOV facilities and highway capacity, mitigate 
congestion, and reduce fuel consumption. Motorcycles shall not 
beconsidered single-occupant vehicles and shall be allowed to 
use HOV facilities, consistent with the provisions of section 163 of 
the Surface Transportation Assistance Act of 1982.
      Responsible agencies may allow low-emission and energy-
efficient vehicles to use HOV facilities provided that the 
agency: (1) creates a program that defines how such qualifying 
vehicles are selected and certified, (2) establishes a method 
to label qualifying vehicles (3) continuously monitors, 
evaluates, reports to the Secretary on performance, (4) and 
imposes restrictions on the use of HOV lanes by vehicles that 
do not meet established requirements.
      Responsible agencies are provided with the option of 
charging vehicles a toll for the use of an HOV facility if 
these vehicles do not meet the minimum occupancy requirements, 
and if the requirements of section 129 of title 23 are met.
      A responsible agency under this section includes a State 
department of transportation, local transportation agency, or 
other public or private entity designated by a State to collect 
a toll on HOV lanes.
Conference Substitute
      The conference agrees to the House provision, with 
certain accommodations to the Senate language, to add a new 
section 168 to title 23 that authorizes the use of HOV lanes. 
Subsection (a) of the new section 168 in title 23 allows a 
state agency to establish the occupancy requirements of 
vehicles operating on an HOV facility except that no fewer than 
2 occupants per vehicle may be required for use of a HOV 
facility.
      The conferees intend for this provision to provide 
exemptions for the HOV occupancy requirements including 
motorcycles, bicycles, public transportation vehicles, 
inherently low emission vehicles, low emission and energy-
efficient vehicles, and High Occupancy Toll (HOT) vehicles.
      For inherently low emission vehicles, the conferees 
accept the House provisions that the state may allow the use of 
HOV lanes even if the occupancy requirements are not met so 
long as the vehicles are certified pursuant to section 88.311-
93 of title 40, Code of Federal Regulations. The state agency 
may also allow other low emission and energy efficient vehicles 
to pay a toll to use HOV lanes even if the occupancy 
requirements are not met if those vehicles meet the 
certification requirements that the EPA is directed to develop 
in subsection (e). The toll amount charged to low emission 
vehicles not certified pursuant to the CFR and other energy 
efficient vehicles may be less than other HOT lane vehicles, or 
the toll may be zero.
      The House recedes to the Senate on the definition of low 
emission and energy efficient vehicles. Under this language, 
the Administrator of EPA must certify that a low emission or 
energy efficient vehicles operating in the HOV lane with fewer 
than 2 passengers meets Tier II emissions levels established 
under section 202(i) of the Clean Air Act (42 U.S.C. 7521(i)) 
for that make and model vehicle. In addition to meeting Tier 
II, a low emission or energy efficient vehicles must meet one 
of two additional requirements: it must be an alternative fuel 
vehicle operating on alternative fuel or, if it is propelled by 
on-board hybrid technologies, it must meet particular fuel 
economy performance requirements.
      For the purposes of this section, Senate recedes to the 
House on the definition of alternative fuel vehicles with one 
clarification that such fuels include additional substantially 
non-petroleum fuels regulated under 10 C.F.R. 490.
      With respect to the determination of fuel economy 
performance requirements for a low emission or energy efficient 
vehicle not meeting occupancy requirements that is propelled by 
on-board hybrid technologies, the conferees have agreed to 
accept language in the Senate-passed legislation. Under this 
subsection, a low emission or energy efficient vehicle 
propelled by hybrid technology may access the HOV lane if the 
EPA certifies that it has achieved not less than a 50-percent 
increase in city fuel economy or not less than a 25-percent 
increase in combined city-highway fuel economy. The conferees 
also have made conforming changes to the section to ensure that 
states have the ability to increase either of these percentages 
as part of their HOV management programs. The conferees intend 
to give the states broad discretion to increase these 
percentages for individual vehicles as a way of managing 
vehicle access, maintaining air quality and preventing lane 
degradation.
      The conferees note that some current hybrid manufacturers 
make hybrid versions of a vehicle and do not make a gasoline 
counterpart. In such cases, the conferees feel that EPA and the 
states should compare the hybrid vehicle to a group or class of 
gasoline vehicles of similar size, weight and performance.
      This section also sets requirements applicable to tolls 
on HOV lanes. This subsection verifies that HOV facilities on 
the Interstate can be tolled pursuant to the provisions of this 
section. The subsection also states that the state agency must 
first use the toll revenue to repay debt and provide a 
reasonable rate of return on investments and then must give 
priority consideration to projects for developing alternatives 
to single occupancy vehicle travel and projects for improving 
highway safety, including projects that improve safety by 
providing increased capacity.
      This section addresses HOV facility management, 
operation, monitoring and enforcement. If a state agency allows 
single occupancy HOV vehicles to use the facility it must 
ensure that vehicles maintain a minimum operating speed 90 
percent of the time over a 6-month period during weekday peak 
travel periods. The conferees intend that a state agency 
include a public authority or a public or private entity 
designated by the state agency.

                   SEC. 1122. BIA INDIAN ROAD PROGRAM

                         SEC. 1123. DEFINITIONS

House Bill
      This section adds ``Advanced Truck Stop Electrification 
System'' to the definitions in section 101.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference adopts the House provision with a 
modification to add an additional provision to amend the 
definition of ``Transportation Enhancement Activity'' to 
include the acquisition of historic battlefields and to clarify 
that inventory for outdoor advertising is currently and shall 
continue to be an eligible activity.
      Inventory control may include, but not be limited to, 
data collection, acquisition and maintenance of digital aerial 
photography, video logging, scanning and imaging of data, 
developing and maintaining an inventory and control database, 
and hiring of outside legal counsel.

                     Subtitle B--Congestion Releif

       SEC. 1201. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM

House Bill
            Sec. 1203.
      This section requires the Secretary to establish a 
program that provides to all States the capability to monitor, 
in real-time, the traffic and travel conditions of the nation's 
major highways and to share the information with other States, 
local governments, and the traveling public.
      The Secretary is required to establish a steering 
committee to provide guidance regarding the content and 
uniformity of data exchange formats to ensure that data can be 
shared.
      With approval from the Secretary, States may obligate 
certain formula funds for activities related to the planning 
and deployment of this program.
Senate Bill
            Sec. 1702.
      This section encourages the deployment of systems to 
monitor the condition of key surface transportation facilities.
      Changes made to 23 U.S.C. 169(c) in this section require 
the States to establish an incident reporting system within two 
years of enactment of this section. If a State demonstrates 
that it cannot meet this deadline, the Secretary may extend 
this deadline up to 5 years after date of enactment.
      The purpose of the proposed real-time system management 
information program is to provide the nationwide capability to 
monitor and disseminate real-time traffic and travel conditions 
of major highways. The committee hopes this program will 
improve the security of the surface transportation system, 
address congestion problems, support improved response to 
weather events, and facilitate national and regional traveler 
information.
      Specifically, this section requires the Secretary to 
establish data exchange formats within one year of enactment of 
this bill. Within two years of enactment of this bill, each 
State will be required to establish a statewide incident 
reporting system, unless a waiver is received from the 
Secretary that allows up to 3 additional years. In exercising 
this discretion, the committee expects that the Secretary will 
only provide the State the minimum extension necessary to 
complete development of its reporting system.
      The committee expects State and local governments to 
explicitly address real-time highway and transit needs and the 
systems needed to meet those needs including coverage, 
monitoring systems, data fusion and archiving, and methods of 
information sharing and exchange within their intelligent 
transportation system regional architecture.
      Activities related to the planning and deployment of 
real-time monitoring elements would be eligible for Surface 
Transportation Program and National Highway System funds. Under 
this section, a State may obligate State Planning and Research 
funds for activities related to the planning of real-time 
monitoring elements.
Conference Substitute
      The Conference agrees to accept the House provision with 
one exception in dropping the provision to establish a National 
Steering Committee.

                  Subtitle C--Mobility and Efficiency

       SEC. 1301. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE

House Bill
            Sec. 1304.
      This section establishes a program to finance critical, 
high-cost transportation infrastructure that address critical 
national economic and transportation needs. These projects of 
national and regional significance will improve the safe, 
secure, and efficient movement of people and goods throughout 
the United States and improve the health and welfare of the 
national economy by increasing economic productivity, 
facilitating international trade, relieving transportation 
congestion, and enhancing transportation safety.
      The program will fund the construction of high-cost 
surface transportation projects, including freight railroad 
projects eligible under title 23. To be eligible for assistance 
under this program, eligible project costs must equal or exceed 
the lesser of $500 million or 75 percent of the State's highway 
apportionment for the prior fiscal year. The Secretary of 
Transportation will conduct a national solicitation for 
applications for projects of national and regional significance 
and award grants on a competitive basis. The program creates a 
rigorous review process for project applicants similar to the 
Federal Transit Administration's review process for transit new 
start projects.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference agrees to adopt the House provision.

    SEC. 1302. NATIONAL CORRIDOR INFRASTRUCTURE IMPROVEMENT PROGRAM

House Bill
            Sec. 1301.
      This section directs the Secretary to establish and 
implement a program to allocate funding to States for highway 
construction projects in corridors of national significance. A 
State must submit applications to the Secretary for funds.
      The Secretary shall give priority to corridor projects 
that are part of, or will be designated as part of, the Dwight 
D. Eisenhower National System of Interstate and Defense 
highways and to any project that will be complete in five 
years. The Secretary shall consider such factors as mobility, 
economic growth, linking two existing segments of Interstate, 
commercial vehicle traffic due to NAFTA, reduction of travel 
time, value of the cargo traveling through the corridor, 
economic costs, and the financing associated with the project.
Senate Bill
            Sec. 1809.
      The program supports and encourages multistate 
transportation planning and facilitates both project 
development and decision-making for multistate corridors. State 
transportation departments or metropolitan planning 
organizations may receive and administer the funds provided 
under this section for multistate highway and multimodal 
planning studies and construction.
      Freight demand is forecasted to increase significantly in 
the coming years. The committee's goal is to meet this growing 
demand by improving highways and intermodal connections in the 
nation's key corridors. Funds provided by the Corridor Program 
should supplement other public and private funding to support 
strategic improvements, expanding both capacity and efficiency.
      The Secretary shall select studies and projects to be 
carried out under this program based on: (1) the existence and 
significance of binding agreements; (2) the endorsement of the 
study or project by elected representative; (3) prospects for 
early completion; and (4) whether the study or project was 
listed in 1105(c) of ISTEA.
      The committee expects that the Secretary will encourage 
States and other jurisdictions to work together and shall give 
priority to projects that increase mobility, freight 
productivity, access to marine or inland ports, safety and 
security, and reliability.
Conference Substitute
      The Conference agrees to continue this program as current 
law with a modification for the funding to be as such sums as 
necessary out of the General Fund.

          SEC. 1303. COORDINATED BORDER INFRASTRUCTURE PROGRAM

House Bill
            Sec. 1302.
      This section establishes a new formula program for border 
infrastructure projects. The Secretary apportions funds to the 
States based upon several factors: incoming commercial trucks 
passing through land border ports of entry; the number of 
incoming personal motor vehicles and buses passing through the 
land border ports of entry; the weight of incoming cargo by 
commercial trucks passing through such ports of entry; and the 
number of land border ports of entry.
      Definitions--``Border region'' means any portion of a 
border State within 20 miles in an international land border 
with Canada or Mexico. ``Border State'' means any State that 
has an international land border with Canada or Mexico. 
``Commercial Truck'' means a commercial motor vehicle as 
defined in section 31301(4) (other than subparagraph (B)) of 
title 49, U.S.C.
Senate Bill
            Sec. 1810.
      The purpose of this program is to support the 
coordination and improvement of bi-national transportation 
planning, operations, efficiency, capacity, information 
exchange, safety, and security at the international borders of 
the United States with Canada and Mexico. The term border State 
in this section means any of the States of Alaska, Arizona, 
California, Idaho, Maine, Michigan, Minnesota, Montana, New 
Hampshire, New Mexico, New York, North Dakota, Texas, Vermont, 
and Washington.
      The committee is aware of the ever growing strain on the 
nation's points of entry caused by the demands of a global 
economy. As with the Corridors Program, the committee has 
elected to expand funding for the Borders program in hopes that 
both capacity and operational efficiency can be improved to 
meet future freight mobility needs.
      The General Services Administration (GSA) is authorized 
to receive funding under this section at the request of a 
border State. The committee intends transportation improvement 
projects undertaken with funds directly transferred by the 
Secretary to the GSA to be designed and constructed in 
coordination with State transportation officials. State 
transportation departments and metropolitan planning 
organizations at or near an international land border in a 
border State may receive and administer funds allocated under 
this program to carry out the eligible activities listed in 
this section.
      For each fiscal year, the Secretary shall allocate funds 
based on the specified formula listed in this section. In 
choosing projects, it is the hope of the committee that border 
States choose projects that emphasize multimodal planning, 
improvements in infrastructure, and improvements that stress 
both the environment and a desire to promote increased safety, 
security, freight capacity, and highway access to rail, marine, 
and air services.
Conference Substitute
      The Conference agrees to the House provision with a 
change to the definition of Border region being any portion of 
a border State within 100 miles in an international land border 
with Canada or Mexico. Under this section a border state may 
use funds apportioned to it for this program for, among other 
things, highway projects located within 100 geographic miles of 
an international land border, and for planning and 
environmental studies for such projects. Such projects are 
considered to be within a border region and as facilitating 
cross-border motor vehicle and cargo movements and motor 
vehicle and cargo movements related to international trade. The 
Conferees intend funding provided under this program be used to 
improve highway infrastructure or highway safety for the 
purpose of facilitating movement of people and goods. Under the 
provision, various features of title 23 are incorporated by 
reference, including the sliding scale match provision of 23 
U.S.C. 120.

   SEC. 1304. HIGH PRIORITY CORRIDORS ON THE NATIONAL HIGHWAY SYSTEM

House Bill
            Sec. 1804.
      This section adds new corridor designations to the high 
priority corridor list in ISTEA.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference agrees to House provision with 
modifications adding additional corridors.

                  SEC. 1305. TRUCK PARKING FACILITIES

House Bill
            Sec. 1306.
      This section establishes a pilot program in cooperation 
with appropriate State, regional, and local governments to 
address the shortage of long-term parking for commercial motor 
vehicles on the National Highway System.
      This section allows State, regional, and local 
governments to address the safety problem of fatigued drivers 
through a pilot program designed to allow for the creation of 
new rest stops, as stated in section 120(c) of title 23, 
addition of new commercial motor vehicle parking facilities 
adjacent to commercial truck stops or travel plazas, or opening 
existing weigh stations or park-and-ride facilities to 
commercial motor vehicle parking. Pilot programs may also 
include using intelligent transportation systems, or other 
means, to promote the availability of public or privately 
available parking facilities.
      The Committee developed this pilot project after working 
closely with the Administration, industry, State safety and 
construction agencies, and truck plaza and rest stop operators. 
It is the Committee's intent that the projects funded from this 
pilot program only address adding parking facilities in 
corridors with an identified truck parking shortage. This pilot 
program is not intended to compete with local businesses or 
commercial enterprises.
      Not later than five years after the enactment of this 
bill, tle Secretary shall transmit a report on the results of 
the pilot programs developed under this section.
Senate Bill
            Sec. 1814.
      Vhis section creates the!Commercial Truck Parking and the 
Corridor and Fringe Parking Pilot Programs. This section also 
authorizes the Secretary to appropriate funds for these 
programs/
      The committee aims to create additional parkiog on the 
National Highway System by creating two different pilot 
programs: the Commercial Truck Parking Pilot Program and the 
Corridor and Fringe Parking Pilot Program. The section 
authorizes the Secretary to appropriate $8,930,818 in grants 
from the Highway Trust Fund for each of these programs.
      The Commercial Truck Parking Pilot Program allows funds 
to be used for construction of safety rest areas that include 
truck parking, commercial vehicle parking facilities adjacent 
to commercial truck stops, and projects designed to improve 
accessibility for truck parking on or near the National Highway 
System. The committee expects priority for these funds will be 
given to States with a severe shortage of commercial vehicle 
parking, as well as potential for positive effects on safety, 
congestion, and air quality from improved parking facility.
      The committee also recognized the importance of adequate 
and accessible parking for car pooling, van pooling, ride 
sharing, commuting, and high occupancy vehicle travel. The 
committee notes that these practices have a definitive impact 
on congestion, air quality and traffic safety and proposes the 
Corridor and Fringe Parking Pilot Program to be given to the 
States for the construction of parking facilities, costs to 
promote public awareness of the facilities, and geometric 
design improvement on adjoining roadways.
Conference Substitute
      The Conference agrees to adopt the House provision.

     SEC. 1306. FREIGHT INTERMODAL DISTRIBUTION PILOT GRANT PROGRAM

House Bill
            Sec. 1307.
      This provision establishes a pilot program to demonstrate 
the feasibility of developing inland intermodal port facilities 
that can accommodate short-haul rail shipments, relieve traffic 
congestion, and improve safety at coastal ports in metropolitan 
areas on the West Coast. Priority will be given to projects 
that will reduce congestion into and out of international ports 
in the U.S., reduce the need to move empty containers into and 
out of ports, and establish or expand intermodal facilities 
that encourage the development of inland freight distribution 
centers. Eligible projects may include developing and 
constructing intermodal freight distribution and transfer 
facilities at inland ports or at facilities serving inland 
ports.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The conference adopts the House provision with 
modifications that eliminate the preference for West Coast 
ports and names six projects to carry out the pilot program.

  SEC. 1307. DEPLOYMENT OF MAGNETIC LEVITATION TRANSPORTATION PROJECTS

House Bill
            Sec. 1118.
      This section details the funding and eligibility 
requirements for constructing fixed guideway infrastructure, as 
well as the related components necessary for the construction, 
but not including costs incurred for a new station. Eligible 
projects under this section must involve a segment or segments 
of high speed ground transportation corridor, result in an 
operating transportation facility that provides a revenue-
producing service and be approved by the Secretary. It is the 
Committee's intent for this program to be administered as a new 
program and not the continuation of any previously authorized 
program.
Senate Bill
            Sec. 1819.
      This section continues the authorization of the Magnetic 
Levitation Transportation Technology Deployment program 
(MAGLEV) in section 322 of title 23.
      Section 322 of title 23 is amended to allow the Secretary 
to solicit additional applications from States or authorities 
designated by one or more States, for financial assistance for 
planning, design, and construction of eligible MAGLEV projects. 
Authorized from the Highway Trust Fund for this program is 
$357,232,704 for fiscal year 2005, $370,628,931 for fiscal year 
2006, $379,559,748 for fiscal year 2007, $388,490,566 for 
fiscal year 2008, $401,886,792 for fiscal year 2009.
Conference Substitute
      The Conference adopts the House provision.

       SEC. 1308. DELTA REGION TRANSPORTATION DEVELOPMENT PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1824.
      This section creates section 178 of title 23, the Delta 
Regional Transportation Development Program.
      The Delta Regional Transportation Development Program is 
a discretionary program to assist the Delta Regional Authority 
in developing adequate transportation infrastructure in the 8-
state region served by the authority. The committee feels that 
this investment will remedy severe economic distress by 
stimulating development in the region through the mobilization 
of people and goods through a safe transportation program. 
Funds under this program may be used for multi-state highway 
and transit planning, development, and construction.
Conference Substitute
      The Conference adopts the Senate provision.

  SEC. 1309. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE 
                          WEIGHT RESTRICTIONS

House Bill
            Sec. 1830.
      This section extends the exemption that public transit 
vehicles and over-the-road buses have from axle weight 
restrictions.
Senate Bill
            Sec. 1404.
      This section amends section 127 of title 23, relating to 
axle weight limitations for vehicles using the interstate 
system.
      This section amends section 127 of title 23 to exempt any 
over-the-road bus (as defined in section 301 of the Americans 
With Disabilities Act of 1990) or any vehicle that is regularly 
and exclusively used as an intrastate public agency transit 
passenger bus using the National System of Interstate and 
Defense Highways from the maximum gross weight limitations 
imposed by any State.
Conference Substitute
      The Conference adopts the House provision.

                  SEC. 1310. INTERSTATE OASIS PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1815.
      This section establishes an interstate oasis program.
      This section requires the Secretary to establish an 
interstate oasis program for designating interstate oases that 
provide products and services to the public, 24 hour access to 
restrooms, and parking for automobiles and heavy trucks. The 
Secretary shall also take into account the appearance of the 
facility as well as the proximity of the system to the 
interstate for its designation.
Conference Substitute
      The Conference adopts the Senate provision.

                       Subtitle D--Highway Safety

             SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM

House Bill
            Sec. 1401.
      This section amends title 23 by eliminating the 
requirement that States set aside 10 percent of their section 
133, Surface Transportation Program, funds to carry out section 
130 of title 23, the Railway-Highway Crossing program and 
section 152, the Hazard Elimination program. This section also 
establishes a separate funding authorization for a combined 
section 130 and 152 called Highway Safety Improvement Program. 
However, the authorizing language for the two programs still 
resides in Section 130 and Section 152.
      In subsection (a) the definition of Safety Improvement 
Project as used in Section 101(a)(30) of title 23 is expanded 
to include the installation of fluorescent, yellow-green signs 
at pedestrian or bicycle crossings or school zones.
      Subsection (b) amends title 23 to move the set-aside for 
Operation Lifesaver from the apportionment under the Surface 
Transportation Program to the apportionment for Section 130. It 
also increases the amount for this program from $500,000 to 
$600,000.
      Subsection (c) increases the amount of the set-aside for 
hazard elimination in high-speed rail corridors designated 
under 104(d)(2) of title 23 and for the Minneapolis/St. Paul--
Chicago segment of the Midwest High-Speed Rail Corridor. The 
subsection also adds the Northern New England High Speed Rail 
Corridor and expands the South Central Corridor to section 
104(d)(2) of title 23.
      Subsection (d) adds a special rule to allow States to use 
funds for protective devices on other section 130 activities if 
the State demonstrates to the Secretary that it has met the 
needs in such State for protective devices. The apportionment 
formula for rail highway crossings is amended to distribute 
funds 50 percent based on the STP formula and 50 percent based 
on the number of rail highway crossings. Each state shall 
receive at least a minimum of one half of one percent. The 
federal share will be 90 percent. States will be required to 
report to Congress every two years and can use up to two 
percent of their funds for analysis and data collection.
      Subsection (e) makes technical changes.
      Subsection (f) amends section 152(a)(1) of title 23 to 
include in the state survey dangers to the disabled from 
hazardous road conditions. It also includes a requirement that 
States identify the roadway safety improvements for hazardous 
locations. It also adds four new activities for which the funds 
can be used. The Secretary will use the STP apportionment 
formula to apportion funds to the States for the Hazard 
Elimination program. Each State shall receive at least one half 
of one percent from funds apportioned to the States. The 
federal share will be 90 percent. The Secretary is required to 
report to Congress every two years the results of this program, 
including projects completed, the effectiveness of the 
projects, adequacy of funding and recommendation of 
improvements to the program.
      Subsection (g) makes the amendments in subsection (d), 
(e) and (f) effective September 30, 2005 since there is no 
funding for the new Highway Safety Improvement Program in 
fiscal year 2005.
Senate Bill
            Sec. 1401.
      This program authorizes a new core Federal-aid funding 
program for the Highway Safety Improvement Program (HSIP) in 
section 148 of title 23.
      The Committee heard compelling testimony that further 
progress was needed to protect the safety of the traveling 
public. While rates of highway fatalities have decreased in 
recent years, 42,000 Americans still lose their lives on the 
nation's highways each year. In response, the committee has 
elected to create and apportion funds for a new core program, 
the Highway Safety Improvement Program. Recognizing that needs 
and circumstances vary in each State, the committee has sought 
to provide flexibility to the States on how the new program 
funds are spent. To ensure that such flexibility is well 
applied, the Committee will require each State to develop a 
safety plan and restrict spending under the program to projects 
or activities arising from that plan.
      Section 133 of title 23, is amended by eliminating the 
current provision that requires States to set-aside a minimum 
of 10% of Surface Transportation Program funds for safety 
programs. Section 148 is subject to three set-asides: (1) 
$178,616,352 for the elimination of hazards and the 
installation of protective devices at railway-highway 
crossings; (2) $22,327,044 for the improvement of traffic signs 
and pavement markings to accommodate older drivers and 
pedestrians, and (3) $62,515,723 for the Safe Routes to Schools 
program under section 150 of title 23.
      Section 1401 eliminates the Hazard Elimination Program 
under Section 152 of title 23, and incorporates it into 23 
U.S.C. 148 the new HSIP. Additional categories eligible for 
funding under this section have been added to what is currently 
eligible under subsection (f) and (g) of section 152, title 23.
      The HSIP directs State transportation departments to 
establish and implement a State strategic highway safety plan 
in their State. In order to receive funds for this program, 
States must have a process in place to analyze highway safety 
problems and opportunities and to produce strategies to 
mitigate identified safety problems. States must also submit an 
annual report to the Secretary that identifies hazardous 
locations and elements, and assesses the costs and impediments 
to eliminating the hazards.
      States that have developed a strategic highway safety 
plan are also permitted to use up to 25% of their section 148 
funds on safety projects carried out under any other section of 
title 23 as long as the project is consistent with the State's 
strategic highway safety plan.
      The development of a strategic highway safety plan does 
not require changes in existing planning processes, plans, or 
programs of other State transportation or highway safety 
agencies.
            Sec. 1402.
      This section increases the funding level for Operation 
Lifesaver from $500,000 to $535,849 for each fiscal year and 
moves the source of funding from the Surface Transportation 
Program to section 148, the Highway Safety Improvement Program.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications. The program set-asides within the Senate HSIP 
structure were modified: (1) to eliminate the set-aside for the 
Safe Routes to School program, making it a separately funded 
program; (2) eliminating the mandatory set-aside for bicycle 
and pedestrian improvements; (3) added a set-aside of 
$90,000,000 annually for construction and operational 
improvements on high risk rural roads; (4) increasing the set-
aside for the installation of protective devices at railway-
highway crossings to $220,000,000; and (5) increasing the set-
aside for Operation Lifesaver to $560,000.
      With regards to the State strategic highway safety plans, 
States are given until October 1, 2007 to develop the plan. If 
such a plan has not been developed by October 1, 2007, a 
State's HSIP apportionment for subsequent fiscal years will be 
frozen at fiscal year 2007 levels, until the State completes 
development of the strategic highway safety plan. States that 
have developed a strategic highway safety plan and also certify 
to the Secretary that they have met their State's needs 
relating to railway-highway crossings and infrastructure 
highway safety improvement projects, are also permitted to use 
up to 10% of their HSIP funds on safety projects carried out 
under any other section of title 23 (e.g., section 402 Highway 
Safety programs), consistent with the State's strategic highway 
safety plan. If a State certifies that it has met all of its 
needs for installation of protective devices at railway-highway 
crossings, the State may use funds set-aside for section 130 
Railway-Highway Crossings to pay for any other safety projects 
eligible under the HSIP, consistent with that State's strategic 
safety plan. If a State certifies that it has met all of its 
needs for construction and operational improvements on high 
risk rural roads, the State may use funds set-aside for that 
purpose to pay for any other safety projects eligible under the 
HSIP, consistent with that State's strategic safety plan. The 
high risk rural roads program requires the Secretary to ensure 
States set aside an aggregate of $90 million a year to improve 
the safety of rural roads. The Conferees intend for the set-
aside to be applied proportionally to each State's share of the 
HSIP apportionment.
      With regards to the distribution formula used to 
apportion funds for the HSIP program to the States, the 
Conference abandons the Surface Transportation Program formula 
previously used to distribute funds for sections 152 and 130. 
Adopted in its place is the following formula for distributing 
funds apportioned for the HSIP program: \1/3\ of the funds are 
apportioned based on each State's percentage of lane miles of 
Federal-aid highways; \1/3\ of the funds are apportioned based 
on each State's percentage of vehicle miles traveled on 
Federal-aid highways; and \1/3\ of the funds are apportioned 
based on each State's percentage of fatalities on the Federal-
aid system. Additionally, of the amounts set-aside from the 
HSIP for the elimination of hazards and the installation of 
protective devices at railway-highway crossings under section 
130(e), \1/2\ of the funds are apportioned based on the formula 
set forth in section 104(b)(3)(A) and \1/2\ of the funds are 
apportioned based on each State's percentage of railway-highway 
crossings.

 SEC. 1402. WORKER INJURY PREVENTION AND FREE FLOW OF VEHICULAR TRAFFIC

House Bill
            Sec. 1402.
      The Secretary shall, within one year, issue regulations 
requiring workers whose duties place them in close proximity to 
a Federal-aid highway to wear high visibility garments.
Senate Bill
            Sec. 1408.
      This section ensures increased worker safety and assists 
with the free flow of vehicular traffic.
      This section directs the Secretary to promulgate 
regulations recommending workers near a Federal-aid highway to 
wear high-visibility clothing, and to recommend any other 
worker-safety measures that the Secretary deems necessary to 
minimize worker injuries and maintain the free flow of 
vehicular traffic.
Conference Substitute
      The Conference adopts the House provision and finds the 
provisions in both the House and Senate to be substantially 
equivalent.

           SEC. 1403. TOLL FACILITIES WORKPLACE SAFETY STUDY

House Bill
            Sec. 1807.
      This section directs the Secretary to conduct a study to 
determine the safety of highway toll collection facilities for 
toll collectors who work in and around such facilities. It 
requires the Secretary to submit within 1 year a report on the 
results of the study and recommendations for improving 
workplace safety at toll facilities to the congressional 
committees of jurisdiction.
Senate Bill
            Sec. 7214.
      This program is reauthorized for FYs 2006 through 2009 at 
an average annual funding level of $142 million. These programs 
focus on the research and development of safety countermeasures 
related to impaired driving, occupant protection, traffic law 
enforcement and criminal justice, licensing, motorcycle, 
pedestrian, bicycle, teen drivers and emergency medical 
services. The States use this research to model their safety 
programs for the most impact on saving lives and reducing 
injuries. This section also would provide $24 million a year to 
NHTSA to launch national advertising campaigns to increase seat 
belt use and reduce drunk driving during holiday periods. 
Launching these advertising campaigns at the national level is 
much more cost effective than individual States buying 
advertising at the local level.
Conference Substitute
      The Conference adopts the House provision. It is the 
intent of the conference that those agencies operating such 
toll facilities shall, at the request of the Secretary, provide 
data as necessary to adhere to this provision.

                SEC. 1404. SAFE ROUTES TO SCHOOL PROGRAM

House Bill
            Sec. 1122(a).
      This section establishes two new programs--a Safe Routes 
to School Program and a Nonmotorized Transportation Pilot 
Program.
      Subsection (a) establishes a Safe Routes to School 
Program for the benefit of children in primary and middle 
schools. The purposes of the program are to enable and 
encourage children, including those with disabilities, to walk 
and bicycle to school; to make bicycling and walking to school 
a safer and more appealing transportation alternative, thereby 
encouraging a healthy and active lifestyle from an early age; 
and to facilitate the planning, development and implementation 
of projects and activities that will improve safety and reduce 
traffic, fuel consumption, and air pollution in the vicinity of 
schools.
      Funding is made available by formula to state departments 
of transportation on the basis of student enrollment in primary 
and middle schools. No state will receive less than $2 million 
annually. Funds will be used by the state to provide financial 
assistance to state, local and regional agencies, including 
nonprofit organizations, which demonstrate an ability to meet 
the requirements of this section.
      The program funds two distinct types of projects: 
infrastructure projects and non-infrastructure related 
activities. States should be encouraged to create competitive 
application forms, criteria, and evaluations that are 
appropriate for the two different types of projects.
      The creation of a state level safe routes to school 
coordinator position provides a central point of contact for 
the program. Funding for the state level safe routes to school 
coordinator position is not included in the 10 to 30 percent of 
funds required to be used for non-infrastructure related 
activities under this subsection. The state coordinator's 
position is to be funded from the balance of the state's safe 
routes to school funds.
      The safe routes to school clearinghouse provides an 
important opportunity to insure successful implementation of 
the program. As a new program, states will be interested in 
guidance on implementing the program effectively and 
efficiently. The clearinghouse can provide case studies, gather 
and disseminate information, track implementation, and monitor 
the program.
      Given the broad scope of safe routes to school 
activities, the Committee acknowledges the need to include a 
broad range of agencies and organizations in the Task Force 
authorized by this section. In addition to representatives from 
federal agencies, additional task force members could include 
representatives from state and local agencies as well as 
relevant non-profit organizations and associations including 
organizations or associations that represent automobile 
drivers.
Senate Bill
            Sec. 1405.
      This section creates a new Safe Routes to Schools 
Program, section 150 of title 23. The Secretary shall establish 
and carry out a safe routes to schools program for the benefit 
of children who walk and bicycle to school.
      The Safe Routes to Schools program works towards this 
goal by making bicycling and walking safer and more appealing 
transportation alternatives. For this program, the Secretary 
shall set-aside $65,704,024 from section 148 to facilitate the 
planning, development, and implementation of projects and 
activities that will improve safety within two miles of primary 
and secondary schools. The Secretary shall distribute these 
funds using the formula established in section 148.
Conference Substitute
      The Conference adopts the House provision with a 
modification to reduce the minimum state apportionment to $1 
million.

     SEC. 1405. ROADWAY SAFETY IMPROVEMENTS FOR OLDER DRIVERS AND 
                              PEDESTRIANS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1401.
      As part of the Highway Safety Improvement Program, 
$23,465,723 is authorized for projects to improve traffic signs 
and pavement markings in a manner consistent with the 
recommendations included in the publication of the Federal 
Highway Administration entitled ``Guidelines and 
Recommendations to Accommodate Older Drivers and Pedestrians 
(FHWA-RD-01-103)''.
Conference Substitute
      The Conference adopts the Senate provision with a 
modification to authorize such sums as necessary for the 
eligible projects.

        SEC. 1406. SAFETY INCENTIVE GRANTS FOR USE OF SEAT BELTS

House Bill
            Sec. 1405.
      This section authorizes $112,000,000 for each of fiscal 
years 2004 and 2005 for grants to States that have met certain 
requirements with regards to seat belts.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

SEC. 1407. SAFETY INCENTIVES TO PREVENT OPERATION OF MOTOR VEHICLES BY 
                          INTOXICATED PERSONS

House Bill
            Sec. 1406.
      Subsection (a) codifies the penalty against States for 
not enacting and enforcing a 0.08 drunk driving law. This 
penalty was originally enacted in the 2001 DOT appropriations 
bill.
      Subsection (b) authorizes $110,000,000 for each of fiscal 
years 2004 and 2005 for grants to States that have enacted 0.08 
laws.
      Subsection (c) repeals the appropriations language that 
enacted the penalty in 2001.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

 SEC. 1408. IMPROVEMENT OR REPLACEMENT OF HIGHWAY FEATURES ON NATIONAL 
                             HIGHWAY SYSTEM

House Bill
            Sec. 1408.
      This section instructs the Secretary to conduct a 
rulemaking to determine the standards to which a State should 
replace or repair damaged highway features after they have been 
damaged.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with 
modifications. The Secretary is required to issue guidance when 
choosing to improve or replace highway features on the NHS in 
lieu of a rulemaking. The conferees deleted the word ``repair'' 
that was in the House provision. Only planned capital projects 
to ``replace'' or ``improve'' NHS features are covered by the 
conference provision.

                   SEC. 1409. WORK ZONE SAFETY GRANTS

House Bill
            Sec. 1809.
      This section directs the Secretary to establish a work 
zone safety grant program to provide training to prevent or 
reduce highway work zone injuries and fatalities.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference agrees to adopt the House provision with a 
modification to subsection (d) Construction Work in Alaska.

     SEC. 1410. NATIONAL WORK ZONE SAFETY INFORMATION CLEARINGHOUSE

House Bill
            Sec. 1823.
      This section provides grants to establish and operate a 
National Work Zone Safety Information Clearinghouse.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                       SEC. 1411. ROADWAY SAFETY

House Bill
            Sec. 1125.
      Subsection (a) directs the Secretary to enter into an 
agreement with an organization to develop a public service 
campaign to educate transportation officials, public safety 
officials, and motorists regarding the extent to which road 
hazards and design features are a factor in motor vehicle 
crashes.
      Subsection (b) directs the Secretary to make grants to an 
organization to operate a national bicycle and pedestrian 
clearinghouse, to disseminate techniques and strategies for 
improving bicycle and pedestrian safety, and to develop 
information and educational programs related to pedestrian 
activities and cycling.
Senate Bill
            Sec. 1607.
      This section makes minor amendments to section 217 of 
Title 23.
      These changes explicitly allow the use of STP and CMAQ 
funds for non-construction pedestrian safety programs whereby 
current law only mentions bicycle safety. It also explicitly 
mentions pedestrian use on bridges, whereby current law only 
mentions bicycle use.
      The current practice of charging user fees for shared-use 
paths is now explicitly allowed. The fees collected by a State 
must be used for maintenance and operation of shared use paths 
within the State. This provision restricts the application of a 
user fee to shared-use paths not within a highway right-of-way 
and prohibits extension of user fees to sidewalks or bicycle 
lanes.
      In order to address concerns regarding bicycle and 
pedestrian safety, the national bicycle and pedestrian 
clearinghouse first authorized in section 1212(i) of TEA-21 is 
reauthorized. A new subsection (i) provides funding and 
contract authority for these safety efforts for fiscal years 
2004 through 2009.
      This section also provides that the bicycle and safety 
grants are to be funded by a set-aside from the Surface 
Transportation Program.
Conference Substitute
      The Conference adopts the House provision.

   SEC. 1412. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY

House Bill
            Sec. 1828.
      This section includes a definition for Advanced Truck 
Stop Electrification Systems in Title 23 and clarifies that 
such systems are eligible under CMAQ.
Senate Bill
            Sec. 1608.
      This section creates an exception to the prohibition of 
the placement of commercial establishments in rest and 
recreation areas, and in safety rest areas, constructed or 
located on rights-of-way of the Interstate System.
      The purpose of this exception allows States (either 
directly or through contracts) to place electrification or 
other idling reduction facilities in rest areas that can be 
used to provide heating, air conditioning, electricity, and 
communication to motor vehicles used for commercial purposes. 
Through these facilities, operators of such motor vehicles are 
able to receive these services without turning on their 
engines, thereby reducing vehicle emissions. States, other 
public agencies, and private entities that are already allowed 
to operate on the Interstate System, may charge for the 
services provided under this authority.
Conference Substitute
      The Conference adopted both the House and Senate 
provision with modifications.

            Subtitle E--Construction and Contract Efficiency

                    SEC. 1501. PROGRAM EFFICIENCIES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1804.
      This section amends 23 U.S.C. 115, Advance construction, 
and 23 U.S.C. 118, Availability of funds.
      Section 115 is amended to remove the restriction that a 
State must obligate all of its allocated or apportioned funds, 
or demonstrate that it will use all obligation authority 
allocated to it for Federal-aid highways and highway safety 
construction prior to approval of advance construction 
projects.
      The revisions clarify that advance construction 
procedures can be used for all categories of Federal-aid 
highway funds and that when a project is converted to a regular 
Federal-aid project, any available Federal-aid funds may be 
used to convert the project.
      This section further modifies section 115 to remove the 
requirement that the Secretary must first approve an 
application of the State prior to authorizing the payment of 
the Federal share of the cost of the project when additional 
funds are later apportioned or allocated to the State. The new 
provision allows the Secretary to obligate the Federal share or 
a portion of the Federal share of cost of the project by 
executing a project agreement.
      Section 118 of Title 23, is amended to clarify the method 
used by FHWA to account for Federal-aid funds and determine 
amounts subject to lapse. This revision results in no change to 
current practice but simplifies the language to reduce 
ambiguity.
Conference Substitute
      The Conference adopts the Senate provision.

               SEC. 1502. HIGHWAYS FOR LIFE PILOT PROGRAM

House Bill
            Sec. 1504.
      The Committee intends with this pilot program to 
incentivize the use of innovative technologies and practices in 
the construction of highways and bridges. The Committee expects 
that safe, efficient highways and bridges can be built faster, 
and with greater durability, if innovative practices and 
technologies are utilized. This pilot authorizes the Secretary 
to allocate funds for projects deemed to satisfy the 
requirements of the project. The selection criteria are 
designed to identify projects that employ material and 
technique innovations which will produce more quickly 
constructed, longer lasting, high-quality and cost-effective 
projects.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference agrees to accept the House provision with 
a modification to allow 15 projects at the most each fiscal 
year.

                        SEC. 1503. DESIGN-BUILD

House Bill
            Sec. 1501.
      Subsection (a) amends section 112 of title 23 with the 
intent of clarifying and improving the design-build authority 
provided. During the rulemaking process for the design-build 
regulation required by section 1307 of TEA 21, which also 
amended 23 U.S.C. 112, FHWA received several comments regarding 
the restrictive nature of the ``qualified project'' definition 
with respect to the project cost threshold. Approximately 85 
percent of the design-build projects that have been evaluated 
under the FHWA experimental contracting program (Special 
Experimental Project No. 14 (SEP-14)--Innovative Contracting) 
are too small to meet the definition of ``qualified project.'' 
Based on the Haw's experience with design-build projects under 
SEP-14, there is no need to limit design-build projects to 
those costing more than $5 million in the case of a project 
that involves installation of an intelligent transportation 
system and to those costing more than $50 million in the case 
of any other project.
      Subsection (b) similarly amends section 112 of title 23 
making clear the parameters of the authority for the use of 
project evaluation criteria. The subsection also makes clear 
that this amendment does not disturb any other authority that 
the Secretary has under current law or that is being carried 
out by the Secretary as of the date of enactment.
Senate Bill
            Sec. 1803.
      This section amends section 112(b)(3) of title 23, to 
include intermodal facilities in the definition of qualified 
projects.
Conference Substitute
      The Conference adopts the Senate provision. The Conferees 
intend that the Secretary's required concurrence is based in 
part on a determination that activities a state of local 
transportation agency plans to undertake will not influence the 
environmental review of those activities under NEPA.

                          Subtitle F--Finance

  SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT 
                               AMENDMENTS

House Bill
            Sec. 1601.
      This section makes programmatic changes to the TIFIA 
program.
      Subsection (a) makes technical changes to the definitions 
in Section 181 of title 23.
      Subsection (b) amends section 182 of title 23 to clarify 
the requirements regarding statewide and metropolitan planning. 
This subsection also decreases the minimum eligible project 
costs to $50,000,000 and to $15,000,000 for ITS projects.
      Subsection (c) makes technical changes to the project 
selection process in section 182 of title 23.
      Subsection (d) makes technical changes to section 183 of 
Title 23. The change to section 183(a)(4) codifies a DOT 
regulation that requires the project's senior obligations to 
receive an investment-grade rating in order to execute a 
secured loan agreement. The change to section 183(b)(2) ensures 
that the amount of the TIFIA credit instrument may not exceed 
that of the senior project obligations. The elimination of 
section 183(c)(3) deletes the description of sources of 
repayment funds because the subject is already covered in 
section 183(b)(3).
      Subsection (e)(1) makes changes to section 184(b)(3) to 
ease the restrictions on funding draws on a line of credit in 
order to help a borrower avoid a payment default. The changes 
to section 184(b)(4) conform the interest rate setting 
mechanism for the line of credit with that for secured loans. 
The change to section 184(b)(5) has the same purpose as the 
changes to sections 183(b)(3) and 182(a)(4).
      Subsection (e)(2) makes changes to Section 184(c) to 
clarify language regarding the scheduling of principal and 
interest repayments. The elimination of section 184(c)(3) 
deletes the description of sources of repayment funds because 
the subject is already covered in section 184(b)(5)(A)(i).
      The changes to sections 185(a), 185(b), and 185(c) in 
subsection (f) clarify that the Secretary may establish fees to 
cover the cost of servicing TIFIA credit instruments. The 
change to section 185(d) clarifies that the program may retain 
outside counsel to assist in the underwriting and servicing of 
TIFIA credit instruments.
      Subsection (g) sets the funding levels for the TIFIA 
program, including administrative expenses and limitations on 
credit amounts.
Senate Bill
            Sec. 1303.
      This section makes amendments to the TIFIA program under 
sections 181 through 189 of title 23.
      The change to section 181(8)(D), as redesignated, expands 
the definition of freight-related projects eligible for TIFIA 
assistance. The provision also allows for a group of such 
related projects to be eligible, each of which individually 
might not meet the threshold requirements to apply for TIFIA 
credit assistance.
      The change to section 182(a)(1) clarifies the provision 
regarding statewide and metropolitan planning requirements. The 
existing provision contained language that could be 
misinterpreted to constrain TIFIA assistance in the case of a 
project with a construction timetable that extended beyond the 
typical three-year approved State Transportation Improvement 
Program (STIP).
      The changes to section 182(a)(3) lowers the threshold 
cost for eligible projects to $50 million, and also allows to 
be eligible projects that are equal to or exceed 20 percent of 
the Federal highway funds apportioned to that State in the most 
recently completed fiscal year.
      The change to section 183(a)(4) codifies current 
regulation requiring a project's senior obligations to receive 
an investment-grade rating in order to execute a secured loan 
agreement.
      The changes to section 184(b)(4) conform the interest 
rate setting mechanism for the line of credit with that for 
secured loans. This change allows the Department to execute 
both agreements on the same date at the same interest rate if a 
borrower utilizes both a secured loan and a line of credit for 
the same project.
      Section 188(a)(2) allows all collected fees to be 
available to the Secretary without further appropriation to 
carry out this section.
      Section 188(a)(3) maintains the limit on administrative 
costs.
Conference Substitute
      The Conference agrees to adopt provisions from both the 
House and Senate. This section makes programmatic changes to 
the TIFIA program. Subsection (a) makes technical changes to 
the definitions in Section 181 of title 23.
      The conferees eliminated section 181(7) to reflect the 
Department's decision not to use local servicers to perform the 
enumerated duties on behalf of the Secretary. Conferees also 
believe that ongoing servicing of TIFIA loans should be managed 
by a single entity as it has done so to date.
      These provisions also expand the definition of freight-
related projects eligible for TIFIA assistance to allow private 
rail facilities that serve a public benefit for highway users. 
The provision also makes eligible a group of such related 
projects, each of which separately might not meet the threshold 
requirements, to apply for TIFIA assistance.
      Subsection (b) amends Section 182 of title 23 to clarify 
the requirements regarding statewide and metropolitan planning. 
This subsection also decreases the minimum eligible project 
costs to from $100 million to $50 million, $50,000,000 and to 
$15,000,000 for ITS projects, and changes clause (ii) by 
striking 50 and inserting 33.3 to ensure that smaller states 
have the opportunity to benefit from this program as well.
      Subsection (d) makes technical changes to Section 183 of 
Title 23. The change to section 183(a)(4) codifies a DOT 
regulation that requires the project's senior obligations to 
receive an investment-grade rating in order to execute a 
secured loan agreement. The change to section 183(b)(2) ensures 
that the amount of the TIFIA credit instrument may not exceed 
that of the senior project obligations. The elimination of 
section 183(c)(3) deletes the description of sources of 
repayment funds because the subject is already covered in 
section 183(b)(3). It was the intent of the conference to allow 
agreements to refinance long-term project obligations or 
Federal credit instruments, if such refinancing provides 
additional funding capacity for the completion enhancement or 
expansion of any project selected under section 602 or that 
otherwise meets the requirements of section 602.
      The changes to section 184(b) conform the interest rate 
setting mechanism for the line of credit with that for secured 
loans. This change allows the Department to execute both 
agreements on the same date at the same interest rate if a 
borrower utilizes both a secured loan and a line of credit for 
the same project. The changes to this section also eliminate 
the 20% cap on what a borrower can draw. It is the conference's 
understanding that the line of credit tool has not been widely 
used and the elimination of this cap could incentivize this 
credit instrument.
      The changes in section 185 clarify that the Secretary may 
establish, collect and spend fees to cover the cost of 
servicing TIFIA credit instruments. This section also clarifies 
that the program may retain outside counsel to assist in the 
underwriting and servicing of TIFIA credit instruments.
      Sections 181-189 are redesignated to 601-609.

                 SEC. 1602. STATE INFRASTRUCTURE BANKS

House Bill
            Sec. 1602.
      Subsection (a) of this section codifies a state 
infrastructure bank (SIB) program in Section 189 of title 23.
      Subsection (a) of section 189 provides definitions for 
the SIB program. Subsection (b) permits the Secretary to enter 
into a cooperative agreement with a State for the establishment 
of a SIB. Subsection (c) allows two or more States to enter 
into a cooperative agreement with the Secretary to establish a 
multi-state SIB. Subsection (d) establishes funding 
requirements for SIBs, restricting the amount of federal 
funding that a State can deposit in their highway, transit, and 
rail SIB accounts. Subsection (e) establishes the forms of 
assistance that a SIB can offer. Subsection (f) describes the 
eligible projects that are allowed to be funded by the SIB.
      Subsection (g) establishes the requirements that a State 
must adhere to when establishing a SIB. Subsection (h) speaks 
to the applicability of Federal law in the SIBs program. 
Subsection (i) states that the United States is not obligated 
by any commitment made by a state SIB. Subsection (k) limits 
the amount of federal funds that can be used to administer the 
state SIB to 2 percent of the federal funds contributed to the 
SIB.
      Subsection (b), (c), (d), and (e) of Section 1602 
establishes a new chapter 6 in title 23 for infrastructure 
finance.
Senate Bill
            Sec. 1306.
      This section amends 1511(b)(1)(A) of TEA-21, which named 
the following States: Missouri, Rhode Island, California, and 
Florida. This change extends the program to any State that 
seeks to establish a State infrastructure bank.
      This bill reauthorizes the State Infrastructure Bank 
(SIB) program under which all States are authorized to enter 
into cooperative agreements with the Secretary to set up 
infrastructure revolving funds eligible to be capitalized with 
Federal transportation funds authorized for the FY 2005-2009 
period.
      The SIB program gives States the capacity to increase the 
efficiency of their transportation investment and significantly 
leverage Federal resources by attracting non-Federal public and 
private investment. The program provides greater flexibility to 
the States by allowing other types of project assistance in 
addition to the traditional reimbursable grant.
      SIBs provide various forms of non-grant assistance to 
eligible projects, including at or below-market rate 
subordinate loans, interest rate buy-downs on third party 
loans, and guarantees and other forms of credit enhancement. 
Any debt that the SIB issues or guarantees must be of 
investment grade caliber.
Conference Substitute
      The Conference adopts the House provision.

     SEC. 1603. USE OF EXCESS FUNDS AND FUNDS FOR INACTIVE PROJECTS

House Bill
            Sec. 1106.
      This section allows states to audit projects funded with 
apportionments under sections 104 and 144 of title 23 to 
determine whether there are excess project funds. If the audit 
reveals that there are excess funds, the state may develop a 
plan for spending the apportionment for the design or 
construction of other similar eligible projects. The state must 
certify to the Secretary that an audit was conducted and has 
developed a plan. Excess funds used to carry out a project 
under this section are subject to the requirements of this 
title that are applicable to the program for which the funds 
were originally apportioned.
Senate Bill
            Sec. 1106.
      This provision allows States to convert demonstration 
projects that were designated prior to 1998 to the Surface 
Transportation Program (STP). This section also requires States 
to certify to the Secretary that inactive funds will not be 
used in order to reobligate them under STP.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications. States can convert demonstration projects that 
were designated prior to 1991 in public law or a report 
accompanying public law and reprogram them under STP. States 
can also convert funds from projects that have no expenditures 
during any 1-year period or if a State certifies that a project 
is unlikely to be advanced, it can be converted to STP.
      The Secretary is required to submit to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives a report on what each state has reprogrammed.
      It is the Sense of the Congress that funds released from 
demonstration projects are required to reprogram those funds 
into the same geographic area for which they were originally 
allocated.

                           SEC. 1604. TOLLING

      The Conference agrees to combine all tolling programs 
under one section.
House Bill
            Sec. 1209.
      This section amends the congestion pricing pilot program 
established under the Intermodal Surface Transportation Equity 
Act of 1991 to expand the authority to conduct such projects to 
all States, although the number of congestion pricing pilot 
projects is limited to 25. The limit of 25 projects includes 
all projects previously approved under this section (prior to 
the enactment of TEA LU) that collect tolls. This section also 
requires that any congestion pricing toll programs include a 
program for low-income drivers to pay a reduced toll. This 
section also sets aside $3 million a year for congestion 
pricing programs that do not include tolls.
Senate Bill
            Sec. 1827.
      This section amends section 1012(b) of ISTEA by 
continuing the program for fiscal year 2005 and each fiscal 
year thereafter.
Conference Substitute
      The Conference agrees to continue the 15 tolling programs 
under current law and set aside one third of the total funding 
for the 15 programs to go toward non-tolling programs.
House Bill
            Sec. 1603.
      This section establishes an interstate system 
reconstruction and rehabilitation pilot program similar to the 
one authorized in TEA 21. The new program is limited to three 
facilities and requires states to show that tolling is the most 
efficient and economical way to finance the project. The 
previous program required that states prove that tolling was 
the only way to finance the interstate reconstruction or 
rehabilitation project. The new program also requires that the 
state agency collect tolls electronically and that the agency 
include a program to permit low-income drivers to pay a reduced 
toll amount.
Senate Bill
      This section amends section 1216(b) or TEA-21 to expand 
the criteria by which states can apply. It is further amended 
by only allowing the state of Virginia to be eligible for 
funding under this program if accepted.
Conference Substitute
      The Conference agrees to drop both provisions and 
continue current law.
House Bill
            Sec. 1604.
      This section establishes a new pilot program for projects 
involving the construction of new interstate facilities. The 
program is limited to three facilities (multi-state corridor 
projects may be considered as one facility) and states must 
show that tolling is the most efficient and economical way to 
finance the project. The new program also requires that the 
state agency collect tolls electronically and that the agency 
include a program to permit low-income drivers to pay a reduced 
toll amount.
      It is the Committee's intent that this program be used 
only for the construction of new interstate facilities and that 
the pilot program authorized in Section 1603 be used only for 
rehabilitation and reconstruction of existing interstate 
facilities.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference adopts the House provision.
            Sec. 1609.
House Bill
      No comparable provision in the House bill.
Senate Bill
      This section modifies the Interstate System 
Reconstruction and Rehabilitation Program and establishes a new 
Fast and Sensible Toll Lanes Program. The Interstate System 
Reconstruction and Rehabilitation Pilot Program, established in 
TEA-21 is amended to ease the eligibility criteria for 
participation in the pilot program. The Fast and Sensible Lanes 
Program replaces the Value Pricing Pilot Program under TEA-21.
      The change to the Interstate System Reconstruction and 
Rehabilitation Pilot Program eases the requirement for States 
to demonstrate that financing the improvements through tolls is 
the most efficient, economical, or expeditious way to advance 
the project. It is the intent of the committee that States may 
use variable pricing under this program. The pilot program 
remains limited to 3 facilities in 3 different States. A 
modification to this section designates that one of the 
facilities be located in Virginia.
      This section also establishes the Fast and Sensible Toll 
(FAST) Lanes program to manage congestion, reduce emissions in 
a nonattainment or maintenance area, or to finance the addition 
of one or more lanes to an interstate to reduce congestion. The 
Secretary may permit a State to place tolls on highway, bridge 
or tunnel that are facilities that currently collect tolls, 
existing HOV facilities, or facilities that are upgraded for 
additional tolled capacity. Revenues may be used for debt 
service on highway or transit projects, a reasonable return on 
investment of any private financing, operational and 
maintenance costs, or any other purpose related to highway or 
transit projects under titles 23 or 49. The program also allows 
for the States to vary in price a toll according to time of day 
or level of traffic, as appropriate to manage congestion or 
improve air quality. To be eligible to participate in this 
program, a State must provide to the Secretary a description of 
the congestion and air quality problems to be addressed, a 
description of the congestion and air quality problems to be 
addressed, and the goals to be achieved. The committee realizes 
that commercial trucks utilize more capacity on roads than 
other vehicles, and States may toll trucks under this program 
to fairly reflect the additional capacity that they utilize on 
a facility. It is not the intent of the committee for States to 
unfairly charge trucks under a variable toll pricing program.
      This section also permits any State or public authority 
currently operating under the authority of a cooperative 
agreement developed under the value pricing pilot program from 
TEA-21 to continue under the terms of that agreement and states 
that any State or public authority shall be allowed to continue 
tolling under that authority.
Conference Substitute
      The Conference agrees to the Senate provision with a 
modification that this program will be a pilot program. The 
name of this program is changed to ``EXPRESS Lanes''.

                   Subtitle G--High Priority Projects

               SEC. 1701. HIGH PRIORITY PROJECTS PROGRAM

House Bill
            Sec. 1701.
      This section updates the current high priority projects 
program to reflect the funding and year-by-year allocations 
provided in TEA LU.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House version.

                   SEC. 1702. PROJECT AUTHORIZATIONS

House Bill
            Sec. 1702.
      This section lists the State, project description, and 
dollar amount for each high priority project.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with additional 
projects listed.

           SEC. 1703. TECHNICAL AMENDMENTS TO TEA-21 PROJECTS

House Bill
            Sec. 1822.
      This section makes changes to projects authorized in TEA-
21.
Senate Bill
            Sec. 1835, Sec. 1836.
      These sections make changes to projects authorized in 
TEA-21.
Conference Substitute
      The Conference agrees to accept all technical changes 
provided in the sections from both bodies.

                        Subtitle H--Environment

  SEC. 1801. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES

House Bill
            Sec. 1114.
      Subsections (a) and (b) codify the existing Ferry Boat 
Discretionary Program authorized in Section 1064 of ISTEA. 
Subsection (c) requires the Secretary to establish a national 
ferry database. It is the Committee's intent that the 
information collected and maintained in this database will be 
used as part of the decision making process for funding 
allocations under this program.
Senate Bill
            Sec. 1204.
      This bill codifies the Ferry Boat Program and requires 
the Secretary to carry out a program for the construction of 
ferry boats and ferry facilities in accordance with section 
129(c). The section specifies projects to be given priority.
      In allocating these funds, the Secretary shall give 
priority to ferry boat services that carry the greatest number 
of passengers and vehicles, as well as those that provide 
critical access to areas that are not well-served by other 
modes of transportation.
Conference Substitute
      The Conference agrees to accept and merge both 
provisions.

               SEC. 1802. NATIONAL SCENIC BYWAYS PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1602.
      This section amends section 162 of title 23, the National 
Scenic Byways Program.
      Section 162 of title 23 is amended to recognize that the 
Secretary already promotes a collection of National Scenic 
Byways and All-American Roads as `America's Byways.' If State 
and byway representatives reach consensus on establishing a 
single designation category, then these amendments will provide 
the Secretary with the authority to use any of the three 
terms--National Scenic Byways, All-American Roads, or America's 
Byways--as the single designation.
      A new subsection is added to authorize the Secretary to 
form public-private partnerships to carry out technical 
assistance, marketing, market research, and promotion with 
respect to National Scenic Byways, All-American Roads, or 
America's Byways. The National Scenic Byways and All-American 
Roads currently are promoted collectively as America's Byways.
Conference Substitute
      The Conference adopts the Senate provision with the 
modification to drop subsection (d) Research, Technical 
Assistance, Marketing, and promotion.

              SEC. 1803. AMERICA'S BYWAYS RESOURCE CENTER

House Bill
            Sec. 1811.
      This section reauthorizes the America's Byways Resource 
Center. The Byways Resource Center provides technical support 
and conducts educational activities for the National Scenic 
Byways program. Technical support and educational activities 
will provide local officials and organizations with proactive, 
technical, and on-site customized assistance, including 
training, communications (including a public awareness series), 
publications, conferences, on-site meetings, and other 
assistance considered appropriate to develop and sustain Scenic 
Byways and All-American Roads.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

        SEC. 1804. NATIONAL HISTORIC COVERED BRIDGE PRESERVATION

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1812.
      This section authorizes the Secretary to make grants to 
States for covered bridges that are listed or eligible for 
listing on the National Register of Historic Places.
      Subject to the availability of appropriations, the 
Secretary shall make grants to States demonstrating a need for 
assistance in carrying out 1 or more historic covered bridge 
projects described in this section.
Conference Substitute
      The Conference adopts the Senate provision.

    SEC. 1805. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES

House Bill
            Sec. 1820.
      This section specifies that any debris from a demolished 
Federal-aid bridge or overpass can be used for beneficial 
public use by Federal, State, and local governments.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with a 
modification.

 SEC. 1806. ADDITIONAL AUTHORIZATION OF CONTRACT AUTHORITY FOR STATES 
                        WITH INDIAN RESERVATIONS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1826.
      Section 1826 increases funding for roads that are 
adjacent to or provide access to Indian reservations.
      This section increases funds that supplement maintenance 
funds provided by the Bureau of Indian Affairs from $1,500,000 
to $1,607,547 for fiscal years 2005 through 2009. The committee 
intends these funds to be shared equally by States (except 
Arizona) that have Indian reservations larger than 10 million 
acres. These funds shall be used for roads that are adjacent to 
or provide access to Indian reservations, as well as roads used 
by a school bus to transport children to a school or Headstart 
program.
Conference Substitute
      The Conference adopts the Senate provision.

          SEC. 1807. NONMOTORIZED TRANSPORTATION PILOT PROGRAM

House Bill
            Sec. 1122(b).
      This section establishes two new programs--a Safe Routes 
to School Program and a Nonmotorized Transportation Pilot 
Program.
      Subsection (b) establishes a Nonmotorized Transportation 
Pilot Program to construct a network of nonmotorized 
transportation infrastructure facilities in four communities to 
demonstrate the extent to which bicycling and walking can carry 
a significant part of the transportation load. This program is 
designed to develop the statistical information necessary to 
properly evaluate the impact of investments in nonmotorized 
travel and increases in pedestrian and bicycle trips on 
congestion, energy usage, clean air and public health. It 
recognizes that only complete, comprehensive and connected 
networks of nonmotorized transportation facilities will provide 
the opportunity for the pedestrian and bicycle usage needed for 
the measurement of impacts.
      In making grants, the Secretary may select public 
agencies that are suitably equipped and organized to carry out 
the requirements of this subsection. An agency that receives a 
grant under this subsection may work with and provide grant 
funds to a nonprofit organization to assist in carrying out the 
program.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with a 
modification to name four communities to carry out the pilot 
program. The Minnesota Department of Transportation shall 
provide funds for the Minneapolis non-motorized pilot program 
grant to Transit for Livable Communities.

             SEC. 1808. ADDITION TO CMAQ-ELIGIBLE PROJECTS

House Bill
            Sec. 1210.
      This section clarifies that transportation system 
management and operations are an eligible activity under this 
program.
            Sec. 1833.
      This section specifies that advanced truck stop 
electrification system is an eligible activity under CMAQ.
Senate Bill
            Sec. 1612.
      Subsection (a) of section 1612 makes the following 
projects and programs eligible activities under the CMAQ 
program: the purchase of alternative fuel (as defined in the 
Energy Policy Act of 1992) and biodiesel fuel; the purchase of 
integrated, interoperable emergency communications equipment; 
diesel retrofit technologies for on-road vehicles and non-road 
vehicles and engines used in construction projects located in 
ozone or particulate matter nonattainment or maintenance areas 
and funded in whole or in part under Title 23; and outreach 
activities to provide information and technical assistance to 
the owners and operators of diesel equipment and vehicles.
      Subsection (b) of this section ensures that States that 
receive the minimum apportionment can use CMAQ money to fund 
projects for the purpose of congestion mitgation or improving 
air quality, instead of only being able to use CMAQ dollars for 
projects that can be funded under the surface transportation 
program.
      Subsection (c) of this section provides for reducing air 
emissions from the construction equipment used in projects 
funded under Title 23 by requiring emission reduction 
strategies. The subsection includes requirements and 
limitations to be applied in these strategies, but does not 
affect a State's current authority under the Clean Air Act. EPA 
is directed to publish guidance to support the development of 
the strategies. Finally, the subsection establishes a funding 
priority for diesel retrofits and other cost-effective emission 
reduction activities identified in the strategies developed 
under the section.
      Subsection (d) authorizes the State of Maine to use CMAQ 
funds for the operation of passenger rail service between 
Boston, Massachusetts, and Portland, Maine.
      Subsection (e) authorizes the State of Montana to use 
CMAQ funds for the operation of public transit activities that 
serve a nonattainment or maintenance area.
      Currently, CMAQ funds can be used for a wide array of 
purposes designed to improve air quality, including 
improvements to transit systems, capital improvements to ITS 
projects, bicycle and pedestrian facilities, traffic flow 
improvements, alternative fuel infrastructure, inspection and 
maintenance programs, and shared ride services. The Clean Air 
Act (CAA) and EPA encourage the use of alternative fuels to 
assist areas in reducing criteria pollutants. CMAQ provisions 
in TEA-21/ISTEA include a specific subsection authorizing the 
use of CMAQ funds on alternative fuel infrastructure. Section 
1612 further facilitates the use of alternative fuels by also 
allowing purchase of alternative fuels with CMAQ funds. The 
purchase of integrated, interoperable emergency communications 
equipment with CMAQ funds is also authorized under this 
subsection.
      Subsection (b) of this section remedies an oversight that 
exists in the current law by providing States that receive the 
minimum amount of CMAQ funding the ability to use the money for 
air quality and congestion mitigation projects, if they so 
choose. States that receive the minimum apportionment either do 
not have nonattainment and maintenance areas, or have a 
nonattainment or maintenance area with a small enough 
population that they would only receive the guaranteed minimum 
\1/2\ of 1 percent based on the population apportionment 
formula. This section of the bill allows these States to fund 
CMAQ-type projects with their CMAQ funds. It allows these areas 
to fund projects that would otherwise be eligible under section 
149(b), regardless of the fact that section 149(b) specifically 
states that the eligible projects may only be funded in 
nonattainment or maintenance areas. This change is in keeping 
with the overall purpose of the CMAQ program.
      Just as the bill adjusts the CMAQ apportionment formula 
to reflect the importance of reducing fine particulate matter 
(PM2.5), section 1612(c) adjusts the list of eligible 
activities to include cost-effective means of reducing PM2.5. 
Specifically, this subsection addresses emissions from 
construction equipment (both on-road and non-road) used in 
Federally-funded highway projects. Reducing emissions from 
long-term construction activities in the middle of a non-
attainment area will provide great improvements to the 
immediate non-attainment area. For example, in 2000, the 
Massachusetts Department of Environmental Protection estimated 
that in five years the diesel retrofit program instituted at 
the Central Artery Tunnel Project in Boston would reduce 
construction emissions, including PM2.5, by an amount 
equivalent to eliminating 96 million truck miles or removing 
1,300 diesel-powered public buses for a year.
      These activities are also very cost-effective, 
particularly as compared to the cost-effectiveness of other 
CMAQ-eligible projects. For example, early estimates by the 
Environmental Protection Agency are that retrofitting a diesel 
engine bulldozer costs $15,000-20,000 per ton of fine 
particulate matter reduced. In contrast, the Transportation 
Research Board reported in its 2002 assessment of the CMAQ 
program that traditional CMAQ activities cost significantly 
more per ton of pollution reduced (bicycle and pedestrian 
facilities at $84,100 per ton; telework programs at $251,800 
per ton; and park-and-ride lots at $43,000).
      The Senate is also aware that some confusion remains in 
DOT and EPA field and regional offices regarding whether 
projects to control the extended idling of vehicles, such as 
advanced truck stop electrification projects, are eligible for 
CMAQ funding. Such confusion has led to delays in project 
approvals. Advanced truck stop electrification projects 
dramatically reduce emissions, and therefore improve air 
quality, by allowing long-haul drivers to turn off their 
engines during extended stops (e.g., during USDOT-mandated rest 
periods); mitigate congestion by providing drivers timely 
information regarding road congestion and alternative routes; 
enhance energy independence by reducing diesel fuel 
consumption; enhance highway safety by providing drivers a 
quieter, more restful sleep environment; and reduce noise 
impacts to nearby neighborhoods. Furthermore, advanced truck 
stop electrification projects can qualify for CMAQ funding, 
whether they are implemented through public-private 
partnerships; involve private ownership of land, project 
facilities or other physical assets, emission reduction credits 
and offsets; or are located on public or private land or 
rights-of-way. Such programs are clearly authorized under 
section 108(f)(1)(A)(xi) of the Clean Air Act (42 U.S.C. 
7408(f)(1)(A)(xi) and associated Federal guidance (65 Fed. Reg. 
9040 (Feb. 23, 2000)). Therefore, the committee directs the 
Secretary of Transportation and the Administrator of the 
Environmental Protection Agency to issue guidance to all 
appropriate Federal, State and local agencies that interpret 
and implement CMAQ and/or Clean Air Act programs informing such 
agencies as to the foregoing.
      Section 1613 requires the Secretary to encourage States 
and metropolitan planning organizations (MPOs) to consult with 
State and local air quality agencies in nonattainment and 
maintenance areas on the estimated emissions reductions from 
proposed congestion mitigation and air quality improvement 
programs and projects.
      The purpose of the Congestion Mitigation and Air Quality 
Improvement program is to help States meet their air quality 
goals of attaining or maintaining the air quality standards. 
This section has been added to acknowledge that State and local 
air quality agencies have valuable input with regard to which 
projects can best serve this purpose intheir particular areas, 
and their participation in selecting projects, while not mandated, is 
to be encouraged. States, MPOs, and transit agencies, in consultation 
with State and local air quality agencies, are encouraged to work 
cooperatively in developing criteria for project selection and in 
making decisions over which projects and programs to fund under the 
CMAQ program.
      Section 1614 requires DOT to evaluate and assess a 
representative sample of CMAQ projects in consultation with 
EPA, maintain and disseminate a database of CMAQ projects, and 
consider the recommendations and findings of the NAS CMAQ 
report in consultation with EPA.
      Evaluation and information sharing are important aspects 
of the CMAQ program, and should be used to direct CMAQ funding 
toward the most cost-effective projects and programs. CMAQ 
funding can be used to innovative projects that contribute to 
improved air quality. If a particular type of project is 
successful in achieving emissions reductions, the goals of the 
program are furthered if that information is shared widely with 
other nonattainment and maintenance areas. DOT, in consultation 
with EPA, must consider the NAS report recommendations and 
finding to improve the operation and evaluation of the program. 
The committee's interest is to ensure that the information from 
previous effort and expense is used wisely.
Conference Substitute
      The Conference adopts Senate provisions with additions 
and modifications. First, the Conference includes authorization 
to use CMAQ funds in areas that are required to prepare and 
file with the Administrator maintenance plans under the Clean 
Air Act. This provision is intended to benefit those areas that 
were designated nonattainment under the 1-hour ozone standard, 
which was revoked in June 2005, but are designated attainment 
for the new 8-hour ozone standard. These areas still must file 
maintenance plans for a period of time and while that is a 
requirement, the areas will be eligible to receive CMAQ funds.
      The adopted language amends the eligibility requirements 
to limit eligibility of transportation control measures and 
projects under section 108(f)(1)(A) of the Clean Air Act to 
those that are likely to contribute to a high level of 
effectiveness in reducing air pollution, where sufficient 
information is available in the database established by this 
section to make a determination of their relative 
effectiveness. The language also clarifies that only 
transportation systems management and operations that mitigate 
congestion and improve air quality are eligible activities.
      The requirement for States to develop emission reduction 
strategies, with the accompanying considerations, limitations 
and EPA guidance to support the strategies, is not adopted. EPA 
is still directed to publish guidance regarding diesel retrofit 
technologies and supporting technical information.
      The Senate language establishing a CMAQ funding priority 
is amended to include cost-effective congestion mitigation 
activities, in addition to diesel retrofits and other cost-
effective emission reduction activities. The substitute 
clarifies that the priority need only apply to funds a State 
receives based on its population in nonattainment or 
maintenance areas. A State receiving the minimum apportionment 
under the program need not consider the priority when 
determining how to distribute that portion of CMAQ funds 
apportioned to the State to raise the State's funding to the 
minimum apportionment level. The priority is further clarified 
to ensure that governmental agencies retain existing 
authorities and roles in making final project selections. These 
clarifications to the original Senate priority language are 
intended to retain needed flexibility in utilizing CMAQ funds 
while providing States with direction to focus on cost-
effectiveness as an important consideration in distributing 
program funds.
      The Conference retains Senate language encouraging 
interagency consultation on the estimated emission reductions 
from proposed CMAQ projects and requiring the Secretary, in 
consultation with the Administrator of the Environmental 
Protection Agency, to evaluate and assess a representative 
sample of CMAQ projects for their effectiveness.
      The Conference adopts several CMAQ eligibility provisions 
for certain States authorizing: use in Montana of CMAQ funds 
for the operation of public transit activities that serve a 
nonattainment or maintenance area; use in Missouri, Iowa, 
Minnesota, Wisconsin, Illinois, Indiana, and Ohio of CMAQ funds 
for the purchase of alternative fuel (as defined in section 301 
of the Energy Policy Act of 1992 (42 U.S.C. 13211)) or 
biodiesel; use in Michigan of CMAQ funds for the operation and 
maintenance of intelligent transportation system strategies 
that serve a nonattainment or maintenance area; use in Maine of 
CMAQ funds to support operation of passenger rail service 
between Boston, Massachusetts, and Portland, Maine; and use in 
Oregon of CMAQ funds to support operation of passenger rail 
service between Portland, Oregon and Eugene, Oregon.

                       Subtitle I--Miscellaneous

  SEC. 1901. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING 
                          SOURCES IN TITLE 23

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1903.
      Section 154 of the Federal-Aid Highway Act of 1987 (23 
U.S.C. 101 note; 101 Stat. 209) establishes the basis for 
erecting signs at Federally assisted highway projects 
identifying the source and amount of funding being used. This 
section transfers the provision to 23 U.S.C. 321 and makes a 
needed conforming amendment.
Conference Substitute
      The Conference adopts the Senate provision.

                    SEC. 1902. DONATIONS AND CREDITS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1820.
      Section 323 of title 23 is amended to give States and 
local governments additional flexibility to match Federal funds 
and expedite project implementation.
      This provision expands section 323 to include the value 
of donated services provided by local government employees to 
be credited to the non-Federal share for projects funded under 
title 23 funds.
Conference Substitute
      The Conference adopts the Senate provision.

      SEC. 1903. INCLUSION OF BUY AMERICA REQUIREMENTS IN TITLE 23

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1904.
      This section sets forth the ``Buy America'' provision and 
designates it as 23 U.S.C. 321. The provision makes non-
substantive, conforming amendments to the text needed because 
of the transfer, simplifies the text, and deletes an executed 
report requirement.
Conference Substitute
      The Conference agrees with language from both the House 
and Senate bills.

                  SEC. 1904. STEWARDSHIP AND OVERSIGHT

House Bill
            Sec. 1105.
      This section amends the Financial Plan portion of section 
106 of title 23 requiring states with a project that costs $500 
million or more to submit an annual financial plan.
Senate Bill
            Sec. 1802.
      This section requires the Secretary to establish an 
oversight program to monitor the effective and efficient use of 
funds authorized under title 23, with a specific focus on 
financial integrity and project delivery.
      The Secretary shall require the States to annually 
certify the adequacy of their financial management systems and 
project delivery systems to meet all requirements for financial 
integrity. As part of the financial integrity oversight, the 
Secretary is required to develop minimum standards for 
estimating project costs and to periodically evaluate States' 
practices for estimating project costs, awarding contracts, and 
reducing project costs. States are required to determine that 
subrecipients of Federal funds have sufficient accounting 
controls and project delivery systems.
      Under section 1802, recipients of Federal financial 
assistance are required to prepare an annual financial plan for 
projects that receive $100,000,000 or more in Federal financial 
assistance and that are not subject to the requirements for 
major projects.
      This section also mandates debarment of contractors who 
have been convicted of fraud related to Federal-aid highway or 
transit programs and suspension of contractors who have been 
indicted for offenses relating to fraud. In addition, it 
requires that portions of monetary judgments won in Federal 
criminal and civil cases against contractors pertaining to 
Federal-aid highway and transit program fraud be shared with 
the State or local transit agency injured by the fraud.
      Finally, this section requires a value engineering 
analysis, as defined in this section, for all projects over $25 
million and bridge projects over $20 million.
Conference Substitute
      The Conference agrees to accept provisions from both the 
House and Senate with modifications. The Secretary is required 
to establish an oversight program to monitor the effective and 
efficient use of funds with a specific focus on financial 
integrity and project delivery. States will have to annually 
certify their financial management systems and project delivery 
systems to meet all requirements for financial integrity.
      The conference adopted the House provision to require a 
project sponsor who receives Federal financial assistance and 
who has a total project cost of $500,000,000 or more be 
required to submit a project management plan and an annual 
financial plan for projects to the Secretary or for any project 
as determined by the Secretary.
      Finally, this section requires a value engineering 
analysis for any project on the Federal-aid system with an 
estimated cost of $25 million or more, for bridge projects $20 
million or more, or for any other project the Secretary 
determines to be appropriate.

             SEC. 1905. TRANSPORTATION DEVELOPMENT CREDITS

House Bill
            Sec. 1841.
      This provision allows states to use toll credits toward 
the states' match of a project.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

         SEC. 1906. GRANT PROGRAM TO PROHIBIT RACIAL PROFILING

House Bill
            Sec. 1810.
      On February 27, 2001, in the Address to a Joint Session 
of Congress, President George W. Bush declared that racial 
profiling is ``wrong and we will end it in America''. The 
President issued a Memorandum for the Attorney General that 
directed the Attorney General to review the use of Federal law 
enforcement authorities use of race in conducting stops, 
searches, and other investigative procedures. In particular, 
the President asked the Attorney General to work with Congress 
to develop methods or mechanisms to collect any relevant data 
from Federal law enforcement agencies and to work in 
cooperation with state and local law enforcement agencies in 
order to asses the extent and nature of any such policies.
      In response to the efforts of the President to end the 
use of racial profiling, this section establishes a new 
incentive grant program to encourage states to enact and to 
enforce laws that prohibit the use of racial profiling in the 
enforcement of traffic laws on Federal-aid highways. The 
incentive grant program will assist the states with the 
compilation of data to support efforts to eliminate the use of 
race or ethnicity as a key factor in whether to make a traffic 
stop.
      Subsection (a) authorizes the Secretary to make a grant 
to a State that has enacted and is enforcing a law that 
prohibits the use of racial profiling in the enforcement of 
traffic laws on Federal-aid highways. To be eligible for a 
grant, a State must maintain and allow public inspection of 
statistical information for each motor vehicle stop in the 
state showing the race and ethnicity of the driver and any 
passengers. Also, a State may receive a grant if the State 
provides assurances satisfactory to the Secretary that the 
State is undertaking activities that will lead to compliance 
with the requirements to this section.
      Subsection (b) authorizes the eligible activities for 
which a grant may be used by the State. In the case of a state 
eligible for a grant under subsection (a)(1), the grant may be 
used for: collecting and maintaining of data on traffic stops; 
evaluating the results of the data; and developing and 
implementing programs to reduce the occurrence of racial 
profiling. An eligible State receiving a grant by providing 
assurances to the Secretary that the State is undertaking 
activities that will lead to compliance with this section may 
use the grant for any eligible activity under this section. The 
collection, maintenance, and evaluation of data relating to 
traffic stops could be used to determine whether race has been 
a key factor in motor vehicle stops. According to the report 
published by the Comptroller General entitled Racial Profiling, 
more information is needed to determine the extent to which 
race, as opposed to other factors, is a key factor for traffic 
stops.
      Subsection (c) clarifies the meaning of racial profiling 
as it pertains to making routine or spontaneous law enforcement 
decisions, such as ordinary traffic stops. The racial profiling 
provisions under this section is not intended to affect the 
ability of law enforcement officers from considering race or 
ethnicity whenever there is trustworthy information available 
that links persons of a particular race or ethnicity to an 
identified criminal incident, scheme, or organization.
      Subsection (d) limits the maximum amount for which a 
state may receive a grant to not more than 5 percent of the 
amount authorized in a fiscal year to carry out this section. A 
state that provides assurances to the Secretary that the state 
is undertaking activities that will lead to compliance with the 
requirements of this section may not receive a grant in more 
than two fiscal years.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

       SEC. 1907. PAVEMENT MARKING SYSTEMS DEMONSTRATION PROJECTS

House Bill
            Sec. 1808.
      This section directs the Secretary to conduct 
demonstration projects in Alaska and Tennessee to study the 
impacts of increasing the minimum width for pavement markings 
from four inches to six inches and report the results to 
Congress by June 30, 2009.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

SEC. 1908. INCLUSION OF CERTAIN ROUTE SEGMENTS ON THE INTERSTATE SYSTEM 
                                AND NHS

House Bill
            Sec. 1839.
      This section amends 1105(e)(5) of ISTEA to designate US 
41 in Wisconsin as I-41.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      This provision was added in conference to makes two 
changes to section 1105 of ISTEA and to designate segments of 
the Interstate System and routes on the National Highway 
System.

           SEC. 1909. FUTURE OF SURFACE TRANSPORTATION SYSTEM

House Bill
            Sec. 1123.
      This section establishes two commissions, one to study 
future revenue sources to support the Highway Trust Fund and 
another to study the future of the Interstate Highway System. 
Both commissions are established using the same criteria for 
the selection of the members. This section also amends section 
101 of title 23 to include a declaration of policy regarding 
the study of the Interstate Highway System.
      The Commission on Future Revenue Sources to Support the 
Highway Trust Fund will study alternative short-term sources of 
revenue for the Highway Trust Fund, as well as evaluating 
alternative long-term sources of revenue to support the Highway 
Trust Fund. When studying the long-term sources, the Commission 
is directed to consider the findings, conclusions, and 
recommendations of a recent study completed by the 
Transportation Research Board of the National Academy of 
Sciences on alternatives to the user fee to support highway 
financing.
      The Commission is directed to develop ways to generate 
revenues to accomplish the requirements of section 1125; 
oversee a comprehensive investigation of alternatives to 
replace the user fee as the principal source of revenue for the 
Highway Trust Fund; consult with the Secretaries of 
Transportation and Treasury to ensure that their views 
concerning essential revenue alternatives are understood; 
consider State transportation agencies views on alternative 
revenue sources for the Highway Trust Fund; and make specific 
recommendations regarding their findings and necessary actions 
to Congress.
      When considering alternative sources of revenue, the 
Commission shall address the advantages or disadvantages of 
alternative revenue sources and identify the most promising 
revenue sources to support long-term financing requirements. 
The Commission shall also establish a time frame for which the 
necessary actions must be taken and a broad transition strategy 
to move from the current user fee base to new funding 
mechanisms, including the time frame for the transition 
strategy.
      Not later than September 30, 2005, the Commission shall 
transmit to Congress a report on revenues to support actions 
necessary to meet the requirements of section 1125. The 
Commission has until September 30, 2006 to transmit to Congress 
a report on the alternative long-term sources of revenue for 
the Highway Trust Fund.
      The Commission on the Future of the Interstate Highway 
System will study the current condition and future of the 
Dwight D. Eisenhower National System of Interstate and Defense 
Highways (the ``Interstate System''). The study will include a 
conceptual plan with alternative approaches for the future of 
the Interstate System and will assure that the Interstate 
System will continue to serve its National needs.
      The Commission is directed to consider the views of State 
transportation agencies and make specific recommendations 
regarding design standards, Federal policies, and legislative 
changes that must be made to assure that national interests in 
meeting future needs are addressed.
      When conducting the study, the Commission is specifically 
directed to address all issues that could impact the Interstate 
system including, demographics; usage; natural disasters; 
design standards; system-wide needs; potential expansion, 
upgrades, or other changes; community values; environmental 
issues; and system performance.
      The Commission has until September 30, 2006 to transmit 
to Congress a report on the results of the study.
Senate Bill
            Sec. 1202.
      Actions under this section shall address the future 
transportation needs in the interest of preserving and 
enhancing the surface transportation system to meet the needs 
of the United States for the 21st Century.
      Section 101 of title 23 is amended by changing the 
declaration of policy to include additional language to support 
the transportation needs of the 21st century. The Secretary 
shall conduct a complete investigation and study of the current 
conditions and the future needs of the surface transportation 
system. This section describes the specific issues to be 
addressed and what shall be reported to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives.
Conference Substitute
      The Conference adopts language from both the House and 
Senate provisions. This section establishes a 12 member 
commission comprised of individuals with knowledge and 
experience in the area of surface transportation policy and 
revenue who will make recommendations to Congress about the 
future transportation policy considerations that will need to 
be considered in future legislation. The Commission will 
conduct a comprehensive, thorough study of current and future 
needs of the surface transportation system, short and long term 
revenue sources and alternatives, other forms of revenue that 
might be needed, and the impact changing dynamics will have 
upon the Highway Trust Fund and other revenue sources. A plan 
to address these needs will be presented in coordination with 
the Secretary and other government entities across the United 
States.

  SEC. 1910. MOTORIST INFORMATION CONCERNING FULL SERVICE RESTAURANTS

House Bill
            Sec. 1803.
      This section requires the Secretary to do a rulemaking to 
determine whether to give priority to full service restaurants 
on at least two of the panels for highway food service signs.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

   SEC. 1911. APPROVAL AND FUNDING FOR CERTAIN CONSTRUCTION PROJECTS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1829.
      This provision allows the State of Georgia to receive 
project approval by the Secretary for the project stated in the 
bill. This project was previously listed on the State's 
Transportation Improvement Plan and was erroneously removed, 
subsequently, not eligible for project approval.
Conference Substitute
      The Conference adopts the Senate provision.

                   SEC. 1912. LEAD AGENCY DESIGNATION

House Bill
            Sec. 1819.
      This section specifies that a specific agency in 
California be the lead agency for a highway project authorized 
in 1991.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

              SEC. 1913. BRIDGE CONSTRUCTION, NORTH DAKOTA

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1832.
      This provision increases the Federal share for a specific 
bridge project in North Dakota from 80 percent to 90 percent.
Conference Substitute
      The Conference adopts the Senate provision.

                SEC. 1914. MOTORCYCLIST ADVISORY COUNCIL

House Bill
            Sec. 1831.
      This section establishes an advisory council to address 
relevant highway infrastructure issues as they relate to 
motorcyclists.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                      SEC. 1915. LOAN FORGIVENESS

House Bill
            Sec. 1818.
      This section specifies that a loan has satisfied its 
repayment obligations.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                    SEC. 1916. TREATMENT OF OFF RAMP

House Bill
            Sec. 1817.
      This section specifies that an off-ramp in California 
meets the requirements of title 23 that govern the approval of 
the placement of ramps off a Federal-aid Highway.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference agrees to the House provision. It is the 
Committee's intent that notwithstanding any other provision of 
law, the New Harbor Boulevard North Off-Ramp project along the 
Interstate 405 Collector-Distributor Road in Costa Mesa, 
California (Susan Street Slip Ramp) is hereby deemed to satisfy 
all Federal requirements, and the California State Department 
of Transportation shall authorize any final environmental, 
engineering, or design analyses necessary to approve, as 
expeditiously as possible, construction of the project 
consistent with applicable California State Operational and 
Safety standards.

                 SEC. 1917. OPENING OF INTERSTATE RAMPS

House Bill
            Sec. 1212.
      This section provides for opening a ramp connecting I-495 
and Arena Drive in the State of Maryland.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference agrees to House provision with a 
modification to that the State DOT certifies to the Secretary 
that the opening of this ramp does not present a safety risk.

    SEC. 1918. CREDIT TO STATE OF LOUISIANA FOR STATE MATCHING FUNDS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1828.
      This provision allows the State of Louisiana to receive a 
credit in an amount equal to the cost of any planning, 
engineering, design, or construction work carried out by the 
State on any project numbered 202 under section 1602 of TEA-21.
Conference Substitute
      The Conference adopts the Senate provision.

                       SEC. 1919. ROAD USER FEES

House Bill
            Sec. 1813.
      The issue of future financing of the Highway Trust Fund 
is a critical one that Congress must begin to address. The 
Trust Fund is currently financed primarily through fuel excise 
taxes and certain truck taxes. When the Trust Fund was 
established in the 1950s, it was legitimate to have the gas tax 
serve as a surrogate for road usage and be the basis for the 
user-pays system of the federal highway program. But with the 
advent of hybrid cars, alternative fuels, the potential for 
fuel cell technology, increased fuel efficiency and other 
technological developments, the relationship between the gas 
tax and road usage is diminishing.
      On July 16, 2002, the Subcommittee on Highways, Transit, 
and Pipelines held a hearing on this and related topics. 
Testimony was received from representatives of the Public 
Policy Center of the University of Iowa regarding research that 
was then in progress, though now completed, to develop a new 
approach for charging vehicles that travel on the public roads. 
A consortium of the Federal Highway Administration and 15 state 
departments of transportation funded the study. The purpose of 
the study was to evaluate how intelligent transportation system 
technology (GPS and on-board computers, smart cards and 
collection centers) can be used to assess mileage-based road 
user charges.
      This section provides funding and authorization for the 
Secretary to conduct a pilot project to test the technology and 
feasibility of the system. It is contemplated that various cars 
will be equipped with the technology in different regions of 
the country with a diverse set of drivers. An important element 
of the study is measuring the public acceptance of such a 
system and to ensure that privacy concerns of drivers are met.
      The finding of this study will provide useful information 
as the Congress strives to identify a funding source to finance 
the federal-aid highway programs that is stable, accurate, 
fairer and more flexible than the current gas tax.
Senate Bill
      The Senate has a comparable provision in title V of the 
Senate passed bill.
Conference Substitute
      The Conference adopts the House provision.

        SEC. 1920. TRANSPORTATION AND LOCAL WORKFORCE INVESTMENT

House Bill
            Sec. 1836.
      This section expresses the sense of the Congress that 
Federal transportation projects should facilitate and encourage 
the collaboration between interested persons to help leverage 
scarce training and community resources and to help encourage 
local participation in the building of transportation projects.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                   SEC. 1921. UPDATE OF OBSOLETE TEXT

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1901.
      Letting of Contracts: This amendment deletes the obsolete 
exception.
      Fringe and Corridor Parking Facilities: The amendment 
would substitute a meaningful reference for the obsolete term.
      Repeal of obsolete sections of title 23: This section 
repeals obsolete sections of title 23: Priority Primary Routes 
(23 U.S.C. 147); Development of a National Scenic and 
Recreational Highway (23 U.S.C. 148); and Access Highways to 
Public Recreational Areas on Certain Lakes (23 U.S.C. 155).
Conference Substitute
      The Conferees adopts the Senate provision.

      SEC. 1922. TECHNICAL AMENDMENTS TO NONDISCRIMINATION SECTION

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1905.
      This section makes several technical amendments to 
section 140 of title 23.
      Technical changes made include:
      Eliminating gender-based language;
      Clarifying that funding made available to carry out this 
section has the same broad availability as the source from 
which the funds are made available (an STP takedown);
      Removing the $2.5 million funding cap on highway 
construction and technology training programs established for 
fiscal year 1976 as no longer necessary;
      Correcting a typographical error; and
      Clarifying the purpose and intent of subsection (d) by 
modifying the title to remove the reference to Indian 
contracting.
Conference Substitute
      The Conference adopts the Senate provision.

       SEC. 1923. TRANSPORTATION ASSETS AND NEEDS OF DELTA REGION

House Bill
            Sec. 1806.
      This section authorizes the Secretary to contract with 
the Delta Regional Authority (DRA) to conduct a study on the 
Delta region's transportation assets and needs for all modes of 
transportation, including passenger and freight transportation. 
This section also directs the DRA to report to Congress the 
results of the study and establish a regional strategic plan to 
implement the report's recommendations.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                  SEC. 1924. ALASKA WAY VIADUCT STUDY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1831.
      This provision requires the Secretary to study and report 
to Congress the damage of the Viaduct from the Nisqually 
earthquake in Seattle, WA.
Conference Substitute
      The Conference adopts the Senate provision.

                 SEC. 1925. COMMUNITY ENHANCEMENT STUDY

House Bill
            Sec. 1835.
      This section directs the Secretary to make a grant to, or 
enter into a cooperative agreement or contract with, a national 
organization representing architects who have expertise in the 
design of a wide range or transportation and infrastructure 
projects to conduct a study on the role of well-designed 
transportation projects in promoting community enhancement.
Senate Bill
            Sec. 1833.
      This section directs the Secretary to make a grant to, or 
enter into a cooperative agreement or contract with, a national 
organization who have expertise in the design of a wide range 
or transportation and infrastructure projects to conduct a 
study on the role of well-designed transportation projects in 
promoting community enhancement.
Conference Substitute
      The Conference adopts the House provision.

                    SEC. 1926. BUDGET JUSTIFICATION

House Bill
            Sec. 1801.
      This section requires the Department of Transportation 
and each agency therein to submit to the Committee on 
Transportation and Infrastructure a budget justification 
concurrently with the President's Annual Budget submission.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with a 
modification to add the Committee on Environment and Public 
Works to also receive a copy of the budget justification.

  SEC. 1927. 14TH AMENDMENT HIGHWAY AND 3RD INFANTRY DIVISION HIGHWAY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1524.
      This provision requires the Secretary to conduct a study 
and report on the construction of a route linking cities in 
Georgia to cities in Mississippi and Tennessee.
Conference Substitute
      The Conference adopts the Senate provision.

           SEC. 1928. SENSE OF CONGRESS REGARDING BUY AMERICA

House Bill
            Sec. 1834.
      The Committee is concerned that the intent of Congress in 
the original Buy America (P.L. 97-424 Sec. 165) is being 
misinterpreted on federally funded bridge projects. The Buy 
America provision provides that domestic iron and steel be used 
in federal transportation projects unless its use would 
increase the ``overall project contract'' by more than 25 
percent. The problem that is emerging in the highway bridge 
industry is that project managers are attempting to circumvent 
the Buy America requirement by breaking bridge projects into 
component parts and applying the 25% test separately to each of 
the component parts, rather than to the entire bridge project 
as required by law. The intent of the Buy America/domestic 
content law was to ensure that when taxpayer money is invested 
on direct federal government procurement and infrastructure 
projects, these expenditures stimulate U.S. production and 
employment. This provision is intended to end any confusion or 
misinterpretation of the law by making clear that it is the 
Sense of Congress that the Buy America test applies to the 
overall bridge project.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Committee is concerned that the States are 
inconsistently interpreting certain Buy America provisions of 
Federally-funded highway projects. To clear up these 
inconsistencies, we are reiterating our intent concerning the 
proper application of the ``minimal use'' exception to Buy 
America in these projects.
      ``Minimal use'' of foreign steel and iron materials is 
only allowed on a project using Federal highway funds when the 
cost of the steel and iron materials does not exceed the higher 
of (a) 0.1 percent of the total contract cost or (b) $2,500. 
For the purpose of determining compliance with this ``minimal 
use'' exception, the ``combined project cost'' of the materials 
is to be used. ``Combined project cost'' is the unit cost as 
shown in the executed contract, multiplied by the quantity of 
units on the project. The contractor's cost of the actual 
material is irrelevant and is not to be considered. This 
procedure is to be followed with respect to procurements 
involving both primecontractors and subcontractors, so that the 
cost to the subcontractor of materials supplied to a prime contractor 
under a project is not to be considered, but rather, the amount being 
charged to the prime contractor by the subcontractor for the materials.
      For the purpose of this provision, if a contract contains 
a quantity of five units of a particular bid item, if even one 
of the units is of foreign origin, the total ``combined project 
cost'' of all five units is to be used to determine compliance 
with the ``minimal use'' requirement. In addition, if any 
component of a bid item is foreign, the entire bid item is 
considered foreign. In turn, the unit cost as shown in the 
executed contract, multiplied by the quantity of units used on 
the project, is to be used to determine compliance with the 
``minimal use'' requirement.
      For the purpose of this provision, the North American 
Free Trade Agreement (NAFTA) has no effect. Iron and steel 
products from Canada and Mexico are considered to be of foreign 
origin.

  SEC. 1929. DESIGNATION OF DANIEL PATRICK MOYNIHAN INTERSTATE HIGHWAY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1205.
      This section designates Interstate Highway 86 in the 
State of New York as the Daniel Patrick Moynihan Interstate 
Highway and the 3 mile segment of Interstate 86 between New 
York State Route 15 in the vicinity of Painted Post, New York 
and State Route 352 in the vicinity of Corning, New York as the 
Amo Houghton Bypass.
Conference Substitute
      The Conference adopts the Senate provision with a 
modification to provide a separate section in law for each of 
these requests.

    SEC. 1930. DESIGNATION OF THOMAS P. ``TIP'' O'NEILL, JR. TUNNEL

House Bill
            Sec. 1814.
      This section designates that, in honor of his service to 
the Commonwealth of Massachusetts and to the United States, and 
in recognition of his contributions toward the construction of 
the Central Artery project in Boston, Massachusetts, the 
Central Artery Tunnel should be named as the ``Thomas P. `Tip' 
O'Neill, Jr. Tunnel''.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

              SEC. 1931. RICHARD NIXON PARKWAY, CALIFORNIA

House Bill
      This section designates the segment of the Imperial 
Highway located between California State Route 91 and Esperanza 
Road to be known and designated as the Richard Nixon Parkway.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                     SEC. 1932. AMO HOUGHTON BYPASS

House Bill
            Sec. 1838.
      This provision designates a 3-mile segment in New York as 
the Amo Houghton Bypass.
Senate Bill
            Sec. 1205(b).
      This provision designates a 3-mile segment in New York as 
the Amo Houghton Bypass. Any reference in any way to this 
highway segment shall be deemed to be a reference to the Amo 
Houghton Bypass.
Conference Substitute
      The Conference adopts the Senate provision.

                 SEC. 1933. BILL TAUZIN ENERGY CORRIDOR

                 SEC. 1934. TRANSPORTATION IMPROVEMENTS

House Bill
      No comparable provision.
Senate Bill
      No comparable provision.
Conference Substitute
      This provision was added in conference to provide states 
with such sums as necessary as required in this provision in 
order to carry out projects in the table contained in 
subsection (c) of this program.

                     SEC. 1935. PROJECT FLEXIBILITY

House Bill
      No comparable provision in the House bill.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference added this provision to provide States 
with the flexibility to transfer funds from projects allocated 
under this section to any other project in the state so long as 
the funding for each project in this section is not ultimately 
reduced.

                          SEC. 1936. ADVANCES

House Bill
      No comparable provision in the House bill.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference added this provision to allow states to 
obligate funds from 104(b) to carry out any project designated 
in any of sections 1301 (Projects of National and Regional 
Significance), 1302 (Corridors), 1306 (Freight Intermodal 
Pilot) and 1933 (Transportation Projects) as well as for 
sections 117 (High Priority Projects) and 144(g) Bridge 
Discretionary of title 23. The amount authorized to obligate 
under this section shall not exceed the amount authorized for 
that project and it can only be funded by programs by which the 
project would be eligible. These funds must be restored from 
funds allocated for that project.

                   SEC. 1937. ROADS IN CLOSED BASINS

House Bill
      No comparable provision in the House bill.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference included this provision to require the 
Secretary to provide advancement or reimbursement under the 
emergency relief program to North Dakota for the State to carry 
out the construction of necessary improvements at Devils Lake. 
These improvements shall be in accordance with the options and 
needs identified in the ``Roadways Serving as Water Barriers'' 
report dated May 2000, any needs relating to Devils Lake 
identified after May 2000, and any monitoring, study, or design 
or preliminary engineering associated with evaluating or 
constructing the measures.

                         SEC. 1938. TECHNOLOGY

House Bill
            Sec. 1829.
      This section encourages states to consider using a new 
technology to detect cracks in bridges.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                            RV-FRIENDLY LOGO

      The conference applauds the FHWA for their commitment to 
alleviating the concerns of RV users by alerting them to 
facilities equipped to accommodate their special needs through 
the use of an RV-friendly logo. The conference is aware that 
states are beginning to enact regulations concerning RV-
friendly signage and believes it is important for the FHWA to 
establish uniform road signs. The conference encourages the 
FHWA to expedite approval of the new RV-friendly signage by 
immediately issuing an interim rule and completing the process 
by September 30, 2006.

                          SOLID WASTE DISPOSAL

      This section amends the Solid Waste Disposal to require 
the Administrator of the Environmental Protection Agency and 
each agency head to take necessary actions to implement fully 
all procurement requirements and incentives that provide for 
the use of cement and concrete incorporating recovered mineral 
component in cement or concrete projects. An agency head is 
required to give priority to achieving greater use of recovered 
mineral component for which it has not been historically used 
or used minimally. This section also requires the 
Administrator, in cooperation with the Secretaries of 
Transportation and Energy, to conduct a study to determine the 
extent to which current procurement requirements may realize 
energy savings and environmental benefits attainable with the 
substitution of recovered mineral component in cement used in 
cement or concrete projects. Additionally, this section 
requires the Administrator, in consultation with other agency 
heads, to establish criteria for the safe and environmentally 
protective use of granular mine tailings from the Tar Creek, 
Oklahoma Mining District, known as `chat', for cement or 
concrete projects, and transportation projects, including those 
that use asphalt, that are carried out using Federal funds. In 
establishing the criteria, the Administrator is required to 
consider current and previous uses of `chat,' and any 
environmental and public health risks and benefits derived from 
removal, transportation and use of `chat.'

                         CLARIFICATION OF DATE.

      This section restates, as a calendar date, a date in 
title 23 that currently is expressed as a reference to a date 
of enactment of law, making it difficult to understand. No 
change in the actual date is made.

                         DISCRETIONARY BRIDGES

      Of the amounts appropriated to the Bridge Discretionary 
Program Section 1114(e) for the State of Vermont, Congress 
intends that the State shall allocate $1,000,000 for the 
Community Center Bridge in Springfield, VT; $5,000,000 for the 
River Street Bridge in Rutland City; $4,500,000 for Bridge 4 in 
Tunbridge, VT; $3,000,000 for Bridge 30 inStockbridge, VT; 
$2,100,000 for Bridge 1 in Reading, VT; $6,000,000 for the bridge over 
the New Haven River on VT RT 116 in Bristol, VT; $4,000,000 for Bridge 
9 in Cornwall, VT; $3,900,000 for Bridge 31 in Bethel, VT; and 
$2,500,000 for the East Street Bridge in Huntington, VT.

                      STREETSCAPE, TRAIL AND ROAD

      Of the amounts appropriated in section 1934 for item # to 
the State of Vermont for streetscape, multi-use trail, and road 
improvements in Lamoille, Caledonia, Grand Isle and Chittenden 
Counties, Congress intends that the State allocate $500,000 for 
planning and construction of pedestrian walkways in 
Morrisville, VT; $835,000 for construction of pedestrian 
walkways in Stowe, VT; $1,000,000 for construction of a multi-
use trail in Hardwick, VT; $750,000 for streetscape 
improvements in Jericho, VT; $330,000 for downtown street 
improvements in Alburg, VT; and $585,000 for improvements to 
Hogback Road in Waterville, Cambridge, and Johnson, VT.

                             SMALL BRIDGES

      Of the amounts appropriated in section 1934 for item # to 
the State of Vermont for small bridge improvements, Congress 
intends that the State shall allocate $500,000 for Bridge 15 in 
Granville, VT; $1,100,000 for Bridge 48 in Lincoln, VT; 
$660,000 for Bridge 17 in Ripton, VT; $1,500,000 for Bridge 14 
in Sunderland, VT; $940,000 for Bridge 31 in Readsboro, VT; 
$1,600,000 for Bridge 16 and Bridge 17 in Burke, VT; $770,000 
for Bridge 24 in Montgomery, VT; $1,000,000 for Bridge 3 in 
Stowe, VT; $730,000 for Bridge 30 in Albany, VT; $1,290,000 for 
Bridge 61 in Barton, VT; $650,000 for Bridge 16 in Charleston, 
VT; $750,000 for Bridge 50 in Wallingford, VT; $600,000 for 
Bridge 37 in Shrewsbury, VT; $730,000 for Bridge 24 in 
Clarendon, VT; $760,000 for Bridge 37 in Cabot, VT; $890,000 
for Bridge 56 in Guilford, VT; $640,000 for Bridge 33 in 
Jamaica, VT; $1,600,000 for Bridge 17 in Newfane, VT; 
$2,700,000 for Bridge 50 in Woodstock, VT; $490,000 for Bridge 
8 in Barnard, VT; $2,000,000 for the bridge on Bridge Street 
over the Stevens Branch of the Winooski River in Barre Town, 
VT; $1,700,000 for Bridge 29 in Saint Johnsbury, VT; $1,140,000 
for Bridge 45 in Cavendish, VT; $320,000 for Bridge 20 in 
Vershire, VT; $680,000 for Bridge 25 in Reading, VT; $1,340,000 
for Bridge 26 in New Haven and Weybridge, VT; $810,000 for 
Bridge 63 in Chester, VT; $980,000 for Bridge 34 in Corinth, 
VT; and $1,130,000 for Bridge 22 in Bradford, VT.

                         WESTERN RAIL CORRIDOR

      Of the amounts appropriated in Section 1934 for item # to 
the State of Vermont for improvements to the Western Rail 
Corridor between Alburg, St Albans, Burlington, Middlebury, 
Rutland, Manchester, Bennington and west to Hoosick Junction, 
New York, priority shall be given to completing the Middlebury 
Rail Spur, upgrading the rail line for passenger service 
between Manchester, Rutland and Charlotte and improving the 
movement of freight rail through major cities, including 
Rutland.

                   GATEWAY RURAL IMPROVEMENT PROGRAM

      Section 1946 authorizes a new Gateway Rural Improvement 
Program in Vermont to demonstrate the impact of a freight 
transportation gateway program on a rural rail corridor. 
Funding preferences shall be given to a corridor in Western 
Vermont that includes, but is not limited to, the Middlebury 
Rail Spur, Rutland rail improvements, St. Albans intermodal 
facilities, and the Albany, Bennington, Rutland, Burlington & 
Essex rail upgrades. User fees may be used to provide part or 
all of the cost of a project under this section.

                            COVERED BRIDGES

      Of the amounts appropriated in section 1934 for item # to 
the State of Vermont for the rehabilitation of historic covered 
bridges, Congress intends that the State shall allocate 
$450,000 for the Creamery/West Hill Covered Bridge in 
Montgomery, VT; $450,000 for the Bowers Covered Bridge in West 
Windsor, VT; $500,000 for the Quinlan Covered Bridge in 
Charlotte, VT; $500,000 for the Gifford Covered Bridge in 
Randolph, VT; $500,000 for the Worrall Covered Bridge in 
Rockingham, VT; $450,000 for the Kingsbury Covered Bridge in 
Randolph, VT; $1,500,000 for the Taftsville Covered Bridge in 
Woodstock, VT; and $1,800,000 on the Pulp Mill Covered Bridge 
in Middlebury-Weybridge, VT.

                      HIGHWAY DISCHARGE MITIGATION

      Of the amounts appropriated in section 1934 item # to the 
State of Vermont, the Secretary shall allocate $3,000,000 for 
the Vermont Local Roads Program in Colchester, VT for the 
purpose of providing financial assistance grants to towns, 
cities and villages in Vermont for projects to reduce water 
pollution generated by, or directly associated with existing 
public roads and road maintenance activities; and $3,000,000 
for the Champlain Water District in Vermont for the purpose of 
providing financial assistance to towns, cities and villages in 
Chittenden County for water quality improvements through 
projects to mitigate water pollution associated with existing 
town roads, federal aid highways and road maintenance 
activities.

                                TOLLING

      The provisions of the Express Lanes Program are intended 
to give State departments of transporation maximum flexibility 
to toll facilities on the Interstate System in order to (a) 
manage high levels of congestion; (b) reduce emissions in areas 
in nonattainment or maintenance for the Clean Air Act; and, (c) 
finance the expansion of a highway, for the purpose of reducing 
traffic congestion.

                       CMAQ EXPANDED ELIGIBILITY

      This provision provides the State of Montana with 
expanded ability to use CMAQ funds for transit operating 
assistance. In addition to all currently eligible projects, 
MontanaCMAQ funds may be used for the operation of public 
transit activities that serve a nonattainment or maintenance area 
beyond the current U.S. Department of Transportation restriction of 
three years. In addition, as referenced in this provision, activities 
that serve a nonattainment or maintenance area include activities that 
are undertaken partly within and partly outside a nonattainment or 
maintenance area.

                         GOING-TO-THE-SUN ROAD

      The $50 million in funding provided by this section for 
work to resurface, repair, rehabilitate, and reconstruct the 
Going to the Sun Road is intended to accelerate completion of 
the needed reconstruction work on that important park road. 
These funds are not sufficient to complete the project, 
however, and these funds are intended to supplement, not 
supplant funding from the park roads and parkways program for 
this important project.

                           BEARTOOTH HIGHWAY

      This provision provides flexibility for the State of 
Montana to use funds allocated for the development and 
construction of the US 212 Red Lodge North highway in this bill 
to first be used for the emergency repair of the Beartooth 
Highway. The Beartooth Highway has suffered extreme damage from 
13 mudslides in the spring of 2005. The Montana Department of 
Transportation has submitted and obtained approval for federal 
Emergency Relief (ER) funding--estimated to be $24 million for 
this project. It is intended that the use of the funds on the 
Beartooth Highway will not require a non-Federal match, as they 
are being applied to an emergency relief project. Upon 
reimbursement by the Federal Highway Administration, a match 
will be required when the funds are applied to the US 212 
project.
      Upon reimbursement of the ER application by the Federal 
Highway Administration, this provision allows the reimbursed 
funds to then be transferred to the US 212 Red Lodge North 
project for use in the development and construction of that 
highway.

                PRIORITIES PROVISION IN DIESEL RETROFIT

      Under new 49 U.S.C. 149(f)(3) States shall give priority 
to certain listed items in distributing CMAQ funds apportioned 
to them under 23 U.S.C. 104(b)(2)(B) and (C) or new 23 U.S.C. 
104(b)(2)(D). This paragraph does not apply to the use of funds 
apportioned under the CMAQ minimum apportionment provision 
(former 23 U.S.C. 104(b)(2)(D)) or to the use of any other 
funds.
      The listed priorities are: (1) cost-effective diesel 
retrofits and other cost-effective emission reduction 
activities, taking into consideration air quality and health 
effects; and (2) cost-effective congestion mitigation 
activities that provide air quality benefits. Each of these 
items, to qualify for priority, must be ``cost-effective.'' If 
a State determines that it does not have cost-effective 
opportunities to undertake the listed activities, the 
priorities do not apply. The State could then use applicable 
CMAQ funds for other CMAQ eligible activities, such as 
particulate reduction or transit initiatives.
      Moreover, even if a State has the opportunity to pursue 
cost effective activities listed in this paragraph, it does not 
mean that the State must expend all or most of its applicable 
CMAQ funds on those activities, to the exclusion of other 
possible uses of those funds. Conferees expect that other 
priorities can still be pursued with applicable funds. Priority 
is not absolute and exclusive. That is one reason why the 
paragraph also includes language establishing that this 
paragraph is not intended to disturb existing authorities and 
roles in making project selections.
      In short, this new provision on CMAQ priorities is 
intended to give more funding focus to the listed priorities 
while continuing to provide states needed flexibility in 
utilizing the funds that are subject to this paragraph.

                        NIGHT-TIME CONSTRUCTION

      Presently the federal government is investing more than 
$30 billion annually on roadway construction projects. This 
significant investment is creating increased motorist exposures 
to roadway work zones. Since 1997 the number of fatalities in 
roadway work zones for both motorists and construction workers 
has grown by over 70 percent. With nearly 1,200 fatalities and 
40,000 injuries occurring annually in roadway construction 
zones, work zone safety is a serious public health concern.
      Since most road work today involves reconstruction, 
rehabilitation and maintenance of existing roadways, it is 
conducted adjacent to traffic. As a result, more and more 
jurisdictions across the country are looking to night-time 
construction as a way to reduce motorist delay and 
inconvenience by scheduling work when traffic is lighter.
      The Committee is concerned about the impact of night-time 
construction on motorists, workers and communities. Current 
information is not comprehensive or well communicated to public 
and private entities and individuals that need it most.
      The Committee directs the Federal Highway Administration 
to conduct and compile research on many aspects of night-time 
road construction, including:
             Comparisons between work zone-related 
        crash rates daytime and night-time construction 
        operations;
             Rates and frequencies of incidents caused 
        by drivers under the influence of alcohol, drugs and/or 
        other substances causing driver impairment;
             Rates and frequencies of incidents caused 
        by drivers and workers who are tired or sleep deprived;
             Impacts on worker health and welfare;
             Impacts on adjacent communities;
             Impacts on construction quality and work 
        schedules; and
             General impact on roadway construction 
        worker safety.
      The Committee directs the Federal Highway Administration 
to report to the Committee two years after passage of this 
legislation on the results of its research.

                    CATHODIC BRIDGE PROTECTION STUDY

      The issue of the increased cost to repair/replace 
concrete bridges due to the corrosion of steel rebar in bridges 
caused by exposure to a chlorine environment is a critical one 
that Congress must begin to address. The Committee directs the 
Secretary to study the application of cathodic protection 
technology to concrete bridges in order to extend the life of 
the bridge and reduce future repair costs.
      The Committee also directs the Secretary to report to 
Congress on the results of any study.

              TRAFFIC CONTROL AT HIGHWAY-RAILWAY CROSSINGS

      With respect to increasing safety at grade crossings, the 
Committee notes that 1,431 people have been killed in 11,860 
accidents at public crossings with crossbuck devices during the 
past ten years. The size, weight, and design of trains prevent 
them from being able to stop and start as quickly as an 
automobile or truck. Given the importance of safety at highway-
rail crossings, the Committee urges the Secretary of 
Transportation to revise the Manual of Uniform Traffic Control 
Devices and such other regulations and agreements of the 
Federal Highway Administration as may be necessary to require 
``yield'' signs be installed at all public highway-rail 
crossings without automatic traffic control, save for those 
crossings which, in the judgment of the roadway authority, 
require ``stop'' signs, together with appropriate advance 
warning signs at all crossings.
      In October of 2004, Federal Highway Administration (FHWA) 
was requested to issue an interim order amending the Manual on 
Uniform Traffic Control Devices to include a standard that 
``yield'' signs be installed at all public crossings with 
passive devices, except at those which the roadway authority 
deemed to require a ``stop'' sign based on an exhaustive study 
contained in National Cooperative Highway Research Program 
(NCHRP) Report 470. Considering that the NCHRP Report 470 was 
completed in at the end of 2001, the Committee urges the 
Secretary to act immediately consider appropriate changes to 
the Manual of Uniform Traffic Control Devices.

               HIGHWAY-TRANSIT FUNDING TRANSFER AUTHORITY

      In 1991, the Intermodal Surface Transportation Efficiency 
Act (ISTEA) provided additional authority for states to 
transfer Federal funds between highway and transit programs. In 
1998, Congress continued and expanded this transfer authority. 
Many States have actively used this authority to transfer 
Federal funds between highway and transit programs. The 
committee believes it is important to review how the States and 
public transit authorities have used this transfer authority 
and directs the Government Accountability Office to report to 
Congress on the use of this transfer authority by the States 
and public transit authorities, the highway and transit 
projects funded with these funds, and the U.S. Department of 
Transportation administrative mechanisms to track the use of 
these transferred funds. This report should be completed as 
soon as practicable and no later than two years after the date 
of enactment.

                    REQUEST FOR TECHNICAL ASSISTANCE

      The Committee notes that, in the Design Standards Manual 
for construction of Interstates and their improvement, the 
requirements for control of access at ramp terminals in urban 
areas is 100 feet and 300 feet in rural areas. The Committee 
instructs the Federal Highway Administrator within 180 days to 
provide an explanation to the Committee for the different 
treatment of rural and urban access control at ramp terminals.

                        TITLE II--HIGHWAY SAFETY

               SEC. 2001. AUTHORIZATION OF APPROPRIATIONS

House Bill
            Sec. 2001.
      This section authorizes funds for section 402 highway 
safety grant program; occupant protection incentive grants 
under section 405; alcohol-impaired driving countermeasures 
incentive grants under section 410; state traffic safety 
information improvements under section 412; the national driver 
register; and the high visibility enforcement program.
      The Secretary is provided the flexibility to transfer any 
amounts remaining available under the occupant protection 
incentive grant program, the alcohol-impaired driving 
countermeasures program, and the state traffic safety 
information system improvements program to ensure, to the 
maximum extent possible, that each state receives the maximum 
amount of incentive grants under these programs for which the 
state is eligible.
Senate Bill
            Sec. 7212.
      This section would authorize amounts from the Highway 
Trust Fund for safety programs administered by NHTSA. The 
aggregate proposed authorization is approximately $696 million 
for FY 2006, $711 million for FY 2007, $728 million for FY 
2008, and $746 million for FY 2009. In addition, this section 
provides that, if revenue to the Highway Trust Fund for a given 
fiscal year is lower than the amounts authorized in subtitle A, 
such a reduction would not affect the highway safety programs 
provided for in this bill. Finally, this section would provide 
for a proportional increase for NHTSA's grant programs if 
revenue to the Highway Trust Fund increases above currently 
authorized amounts.
Conference Substitute
      This section authorizes funds for section 402 highway 
safety grant program; highway safety research and development 
under section 403, occupant protection incentive grants under 
section 405; safety belt performance grants under section 406; 
state traffic safety information improvements under section 
408; alcohol-impaired driving countermeasures incentive grants 
under section 410; the national driver register; the high 
visibility impaired driving and seat belt enforcement program; 
motorcyclist safety; child safety and child booster seat safety 
incentive grants; and administrative expenses.
      The Secretary is provided the flexibility to transfer any 
amounts remaining available under the occupant protection 
incentive grants, alcohol-impaired driving countermeasures 
program, and the state traffic safety information system 
improvements program to ensure, to the maximum extent possible, 
that each state receives the maximum amount of incentive grants 
under these programs for which the state is eligible.

                   SEC. 2002. HIGHWAY SAFETY PROGRAMS

House Bill
            Sec. 2009.
      This section adds driver fatigue to the list of safety 
factors that must be included in state highway safety programs 
in accordance with uniform guidelines promulgated by the 
Secretary under section 402. The Committee wishes to 
acknowledge the contribution of ``Maggie's Law'' to its 
deliberations on this issue.
            Sec. 2014.
      This section adds `11-15 passenger vans used for school 
transportation purposes' to the list of safety factors that 
must be included in state highway safety programs in accordance 
with uniform guidelines promulgated by the Secretary under 
section 402.
            Sec. 2016.
      This section increases the minimum State apportionments 
of 402 funds from one-half of one percent to three-quarters of 
one percent.
Senate Bill
            Sec. 7213.
      This program is reauthorized for FYs 2006 through 2009 at 
an average annual funding level of $217 million, a 40 percent 
increase from the TEA-21 level, and increases the minimum share 
of Indian tribes through the Bureau of Indian Affairs from \3/
4\ of one percent to 2 percent. These grants, allocated 
according to a formula, fund States' safety programs, such as 
safety belts, drunk driving, motorcycle, pedestrian and bicycle 
safety, emergency medical services, traffic law enforcement and 
roadway safety.
Conference Substitute
      The Conference incorporates House provisions into Senate 
structure with modifications, including removal of ``15 
passenger van'' language and consolidation of House and Senate 
``driver fatigue'' language. Senate language is also modified 
for ``unsafe driving behavior,'' ``administration of state 
programs,'' and ``law enforcement chase training.'' Minimum 402 
funding for Indian tribes and States is increased.

        SEC. 2003. HIGHWAY SAFETY RESEARCH AND OUTREACH PROGRAM

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7214.
      This program is reauthorized for FYs 2006 through 2009 at 
an average annual funding level of $142 million. These programs 
focus on the research and development of safety countermeasures 
related to impaired driving, occupant protection, traffic law 
enforcement and criminal justice, licensing, motorcycle, 
pedestrian, bicycle, teen drivers and emergency medical 
services. The States use this research to model their safety 
programs for the most impact on saving lives and reducing 
injuries. This section also would provide $24 million a year to 
NHTSA to launch national advertising campaigns to increase seat 
belt use and reduce drunk driving during holiday periods. 
Launching these advertising campaigns at the national level is 
much more cost effective than individual States buying 
advertising at the local level.
Conference Substitute
      The Conference adopts the Senate provision with the 
addition of motorcycle safety to the list of research 
priorities and moves the national advertising campaigns to a 
new stand alone section.

            SEC. 2004. OCCUPANT PROTECTION INCENTIVE GRANTS

House Bill
            Sec. 2002.
      This section extends the occupant protection incentive 
grant program through the term of the legislation. A state may 
become eligible for these grants by either having a seatbelt 
usage rate of at least 85 percent or by implementing at least 
four of the six safety incentives under the program.
Senate Bill
            Sec. 7216.
      This is a new program funded at an average annual level 
of $154 million. The program would grant money to States that 
enact a new primary seat belt law and to States that have 
already enacted a primary seat belt law. States that have 
already enacted a primary seat belt law would receive a one-
time grant over the life of the bill equal to 250 percent of 
their FY 2003 grant from section 402. States that enact a new 
primary seat belt law after December 31, 2002 would receive a 
one-time grant over the life of the bill equal to 500 percent 
of their FY 2003grant from section 402. Most of this grant 
money may be used for highway safety construction purposes.
Conference Substitute
      The Conference adopts elements of both the House and 
Senate provisions by creating two seat belt related programs. 
This provision outlines an extension of the current 405 
Occupant Protection Incentive Grants Program.

           SEC. 2005. GRANTS FOR PRIMARY SAFETY BELT USE LAWS

House Bill
            Sec. 2002.
      This section extends the occupant protection incentive 
grant program through the term of the legislation. A state may 
become eligible for these grants by either having a seatbelt 
usage rate of at least 85 percent or by implementing at least 
four of the six safety incentives under the program.
Senate Bill
            Sec. 7216.
      This is a new program funded at an average annual level 
of $154 million. The program would grant money to States that 
enact a new primary seat belt law and to States that have 
already enacted a primary seat belt law. States that have 
already enacted a primary seat belt law would receive a one-
time grant over the life of the bill equal to 250 percent of 
their FY 2003 grant from section 402. States that enact a new 
primary seat belt law after December 31, 2002 would receive a 
one-time grant over the life of the bill equal to 500 percent 
of their FY 2003 grant from section 402. Most of this grant 
money may be used for highway safety construction purposes.
Conference Substitute
      The Conference adopts elements of both the House and 
Senate provisions by creating two seat belt related programs. 
This section adopts the Senate provision for one-time grants to 
states that pass or have passed primary seat belt laws with the 
modification to allow a state to also become eligible for the 
grant by demonstrating at least 85 percent seat belt use rates 
for two consecutive years and by changing the grant amounts to 
200 percent for the FY 2003 section 402 grant for states with 
existing primary belt laws and 475 percent for states that 
enact new laws.

    SEC. 2006. STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS

House Bill
            Sec. 2004.
      This section authorizes a new section 412 program for 
state traffic safety information system incentive grants to 
encourage states to adopt and implement effective safety data 
systems. The Secretary is required to determine the model data 
elements necessary to analyze trends in crash occurrences, 
rates, outcomes, and circumstances. To receive a grant, a state 
must comply with safety data system requirements under this 
section and use the grant only to implement such requirements.
Senate Bill
            Sec. 7221.
      This is a new discretionary grant program, funded at a 
$45 million level each FY 2006 through 2009 to encourage States 
to improve their traffic records systems by increasing the 
efficiency and uniformity of data collection and access through 
upgrading data collection systems. The purpose is to develop a 
more accurate database of vehicle crash characteristics that 
will allow traffic safety professionals to better identify 
traffic safety problems, and develop effective countermeasures 
on a more timely basis.
Conference Substitute
      The Conference adopts the Senate provision modified to 
remove the requirement for data audit/assessment as a 
requirement for eligibility in the first year.

          SEC. 2007. ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES

House Bill
            Sec. 2003.
      This section extends the alcohol-impaired driving 
countermeasures program over the term of the legislation. The 
criteria for eligibility under the Basic Grant A program is 
expanded to include states that have an alcohol-related 
fatality rate of 0.5 or less per 100 million vehicle miles 
traveled. The eligibility criteria for Basic Grant A is 
amended, under the administrative license revocation 
requirement, to permit a state to allow a first time offender 
who has had his or her license suspended to operate a motor 
vehicle, after a 15-day suspension period, to and from 
employment, school, or an alcohol treatment program if an 
ignition interlock device is installed on the vehicle. 
Similarly, a state may allow a repeat offender who has had his 
or her license suspended or revoked to operate a motor vehicle, 
after a 45-day suspension or revocation period, to and from 
employment, school, or an alcohol treatment program if an 
ignition interlock device is installed on the vehicle.
      Under the Basic Grant A criteria, four new eligibility 
requirements are added in lieu of eliminating the young adult 
drinking awareness program. The new requirements are a judicial 
and prosecutorial outreach program, a self-sustaining drunk 
driving prevention program, programs for effective alcohol 
rehabilitation, and a program for impounding vehicles of drunk 
drivers. States may become eligible for Basic Grant A by 
implementing at least six eligibility criteria for fiscal years 
2005 and 2006 and at least seven criteria for the following 
fiscal years.
      The criteria for the eligibility for a Basic Grant B is 
amended to permit a state to receive a grant if its alcohol-
related fatality rate is 0.8 or more per 100 million vehicle 
miles traveled and the state establishes a task force to 
evaluate and recommend changes to the state's drunk driving 
programs. The supplemental grant program is repealed.
Senate Bill
            Sec. 7220.
      This program is reauthorized for FYs 2006 through 2009 at 
an average annual funding level of $132 million. States can 
qualify for a grant by enacting four out of the following seven 
criteria in FY 2006 and FY 2007, and by enacting five out of 
the following seven criteria in FY 2008 and FY 2009. States may 
choose from the following menu of policy options: (1) impaired 
driving check points and saturation patrols; (2) outreach to 
judges and prosecutors to improve prosecution of drunk driving 
cases; (3) create an information system for government use that 
tracks drunk driving arrests and convictions; (4) reduce for 
two years in a row the percentage of fatally injured drivers 
with a blood alcohol content of 0.08 percent; (5) a program 
that returns State and local fines collected for drunk driving 
offenses back into drunk driving prevention programs; (6) enact 
a law that creates greater penalties for drivers convicted of 
driving with a blood alcohol content of 0.15 percent or higher; 
and (7) create specialized courts for handling only impaired 
driving cases. The ten States with the highest rate of impaired 
driving fatalities will be eligible for a separate grant.
Conference Substitute
      The Conference combines elements from both the House and 
Senate provisions, establishing a program whereby States are 
eligible for grants by either achieving an alcohol- related 
fatality rate of 0.5 or less per 100 million vehicle miles 
traveled, or by carrying out 3 programs in 2006, 4 programs in 
2007, and 5 programs in 2008 and 2009. The list of programs 
includes: check point, saturation patrol; prosecution and 
adjudication outreach; BAC testing; high-risk drivers; alcohol 
rehabilitation and DWI courts; underage drinking; 
administrative license revocation; self-sustaining impaired 
driving program. Additionally, the ten States with the highest 
rate of impaired driving fatalities will be eligible for a 
separate grant by implementing a plan approved by the Secretary 
to reduce impaired driving. The grant for these 10 states each 
year is intended to be working capital to reinvigorate their 
impaired driving enforcement programs, and for those states not 
already receiving the basic grant to work towards eventually 
qualifying for the basic grant in future years by reaching the 
fatality rate goal or implementing the programs in (c).

                    SEC. 2008. NHTSA ACCOUNTABILITY

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7222.
      This section would create a framework for advancing 
NHTSA's management of its grant programs and its program 
recommendations to the States. It would require a review of 
each State highway safety program at least once every three 
years along with recommendations on how each State may improve 
the management and oversight of its grant activities. It would 
also develop management and program review guidelines for the 
NHTSA Regional Offices. The General Accounting Office will 
conduct a study on the effectiveness of the advice and 
recommendations given to the States by NHTSA. In addition, this 
section would increase NHTSA's accountability to the public by 
requiring the agency to post for public review on its website 
documents such as the NHTSA management review and program 
review guidelines.
Conference Substitute
      The Conference adopts the Senate provision.

             SEC. 2009. HIGH VISIBILITY ENFORCEMENT PROGRAM

House Bill
            Sec. 2005.
      The Secretary is required to establish a program to 
support national impaired driving mobilization and enforcement 
efforts and national safety belt mobilization and enforcement 
efforts, including the purchase of national paid advertisements 
to support such efforts.
Senate Bill
            Sec. 7214(b).
      This subsection of Section 403 would provide funding for 
NHTSA to launch national advertising campaigns to increase seat 
belt use and reduce drunk driving during holiday periods. 
Launching these advertising campaigns at the national level is 
much more cost effective than individual States buying 
advertising at the local level.
Conference Substitute
      The Conference adopts the Senate provision as a stand-
alone program, including a subsection that requires that funds 
only be used for specified national law enforcement campaigns, 
advertising, and annual evaluations. Nothing in this section 
prohibits additional money later appropriated by Congress, or 
additional funds from NHTSA, from being used for additional 
support for the national campaigns.

                     SEC. 2010. MOTORCYCLIST SAFETY

House Bill
            Sec. 2008.
      This section establishes a motorcycle safety incentive 
grant program for states that adopt and implement effective 
programs to reduce the number of single- and multi-vehicle 
crashes involving motorcycles.
Senate Bill
            Sec. 7224.
      This section would create a new section 414 of title 23 
U.S.C. to provide grants to States to implement motorcycle 
safety training programs based on specific criteria, including 
improvements to motorcyclist safety training, program delivery, 
public awareness.
Conference Substitute
      The Conference adopts the House provision modified to 
include Senate language on minimum grant amounts to eligible 
states and a requirement for the Secretary to develop model 
language for educating drivers on how to safely share roads 
with motorcyclists.

       SEC. 2011. CHILD SAFETY AND BOOSTER SEAT INCENTIVE GRANTS

House Bill
            Sec. 2007.
      This section authorizes a child safety and child booster 
seat incentive grant program for the benefit of states that 
enact or enforce a law requiring children riding in passenger 
vehicles to be secured in child safety seats or child booster 
seats. States may use grants under this section only to carry 
out child safety seat and child booster seat programs, 
including education, training, enforcement, and the purchase 
and distribution of child restraints to families that cannot 
otherwise afford them. Each state to which a grant is made 
under this section must transmit a report to the Secretary 
indicating how the grant funds were expended and identifying 
the specific programs supported by the grant.
Senate Bill
            Sec. 7223.
      This section would authorize grants to States to 
implement Anton's Law, which is aimed at increasing the use of 
booster seats for small children.
Conference Substitute
      The Conference adopts the House provision with a change 
to allow no more than 50 percent of funding to be used for 
purchasing safety restraints. The purchase of child safety 
restraints is directed at helping low-income families.

                         SEC. 2012. SAFETY DATA

House Bill
            Sec. 2011.
      This section requires the Secretary to collect data and 
compile statistics on accidents involving motor vehicles being 
backed up that result in fatalities and injuries. The Secretary 
is required to transmit a report to Congress not later than 
January 1, 2009, on these accidents and any recommendations 
regarding measures to be taken.
Senate Bill
            Sec. 7254.
      This section requires NHTSA to study technologies for 
automobiles that would reduce injuries and deaths caused by 
cars and trucks backing up.
Conference Substitute
      The Conference adopts the House provision.

              SEC. 2013. DRUG-IMPAIRED DRIVING ENFORCEMENT

House Bill
            Sec. 2013.
      This section directs the Secretary to conduct a study on 
drug impaired driving and to develop a model statute for 
States. The section also requires the Secretary to submit a 
report to Congress regarding the research and findings not 
later than 18 months after enactment.
Senate Bill
            Sec. 7214(b)(1).
      This section requires NHTSA to conduct a study on the 
effects of controlled substances on driving.
Conference Substitute
      The Conference adopts the House provision with 
modifications including the definition of ``illicit 
substances'' and requiring the Secretary and the National 
Institutes of Health to jointly provide a report to Congress on 
the problem of drug-impaired driving.

           SEC. 2014. FIRST RESPONDER VEHICLE SAFETY PROGRAM

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7605.
      This section requires the Secretary to develop a program 
and list of best practices to promote compliance with State and 
local laws to increase the safe and efficient operation of 
first responder vehicles.
Conference Substitute
      The Conference adopts the Senate provision with a change 
from the Secretary ``shall'' to ``should.''

                  SEC. 2015. DRIVER PERFORMANCE STUDY

House Bill
            Sec. 2012.
      This section directs the Secretary to conduct a study on 
the risks associated with glare to oncoming drivers and to 
submit a report of findings and recommendations to Congress not 
later than 18 months after enactment.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

 SEC. 2016. RURAL STATE EMERGENCY MEDICAL SERVICES OPTIMIZATION PILOT 
                                PROGRAM

House Bill
            Sec. 2015.
      This section directs the Secretary to conduct a study on 
the use of geo-coded data for highway accidents and injuries in 
order to improve EMS resource allocation and distribution in 
rural areas.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

        SEC. 2017. OLDER DRIVER SAFETY; LAW ENFORCEMENT TRAINING

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7217.
      This section would amend section 406 by adding an older 
driver research and demonstration program and a law enforcement 
training program to train law enforcement personnel in police 
chase techniques that are consistent with guidelines issued by 
the International Association of Chiefs of Police.
Conference Substitute
      The Conference adopts the Senate provision but makes 
language a stand-alone provision rather than a codified 406 
program. Language for police chase training is modified to 
reflect that NHTSA shall provide ``guidance and support'' for 
the training.

                     SEC. 2018. SAFE INTERSECTIONS

House Bill
            Sec. 2017.
      This section outlines penalties for the unauthorized sale 
or use of traffic signal preemption transmitters.
Senate Bill
            Sec. 1410.
      This section outlines penalties for the unauthorized sale 
or use of traffic signal preemption transmitters.
Conference Substitute
      The Conference adopts the House provision with technical 
modifications to make language consistent with Title 18, United 
States Code.

    SEC. 2019. NATIONAL HIGHWAY SAFETY ADVISORY COMMITTEE TECHNICAL 
                               CORRECTION

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7215.
      This section would make a minor technical correction to 
section 404(d) of title 23 U.S.C.
Conference Substitute
      The Conference adopts the Senate provision.

     SEC. 2020. PRESIDENTIAL COMMISSION ON ALCOHOL-IMPAIRED DRIVING

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 1411.
      Sense of the Senate in support of establishing a 
Presidential Commission on Alcohol-Impaired Driving to further 
change the culture of alcohol-impaired driving on our Nation's 
highways.
Conference Substitute
      The Conference adopts the Senate provision modified to 
make the provision a sense of the Congress, to include the 
motorcycle industry on the proposed Commission, and to change 
appropriate references from ``drunk'' to ``alcohol-impaired'' 
driving.

    SEC. 2021. SENSE OF THE CONGRESS IN SUPPORT OF INCREASED PUBLIC 
AWARENESS OF BLOOD ALCOHOL CONCENTRATION LEVELS AND DANGERS OF ALCOHOL-
                            IMPAIRED DRIVING

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 1412.
      Sense of the Senate in Support of Increased Public 
Awareness of Blood Alcohol Concentration Levels and Dangers of 
Alcohol-Impaired Driving.
Conference Substitute
      The Conference adopts the Senate provision modified to 
make the provision a sense of the Congress and to change 
appropriate references of ``drinking and driving'' to 
``alcohol-impaired driving.''

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

                         SEC. 3001. SHORT TITLE

House Bill
            Sec. 3001.
      Subsection (a) provides that this title be cited as the 
Federal Public Transportation Act of 2005. Subsection (b) 
provides that amendments in this title, unless otherwise 
specified, are made to title 49 of the United States Code.
Senate Bill
            Sec. 6001.
      The title to be cited as the Federal Public 
Transportation Act of 2005.
Conference Substitute
      Adopts Senate proposal.

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

House Bill
            Sec. 3001.
      Subsection (b) amends chapter 53 of title 49, United 
States Code by striking ``mass transportation'' and replacing 
it with ``public transportation'', reflecting the broader 
applicability of transit services beyond urban areas.
Senate Bill
            Sec. 6002.
      Subsection (a) provides that amendments in this title, 
unless otherwise specified, are made to title 49 of the United 
States Code. Subsection (b) amends chapter 53 of title 49, 
United States Code by striking ``mass transportation'' and 
replacing it with ``public transportation.''
Conference Substitute
      Adopts Senate proposal.

              SEC. 3003. POLICIES, FINDINGS, AND PURPOSES

House Bill
            Sec. 3002.
      This section and subsequent sections of the bill change 
the terminology used to describe the federal transit programs, 
which have grown far beyond the original mission and 
orientation of ``urban renewal'' in the Federal Transit 
Administration's organic statute, the Urban Mass Transportation 
Act of 1964. Today, the federal transit programs also provide 
vital transportation services to rural and other non-urban 
constituencies. The title change and subsequent legislative 
changes to chapter 53, title 49 United States Code in which the 
terms ``mass transit'' or ``mass transportation'' are replaced 
by ``public transportation'' reflect this evolution.
Senate Bill
            Sec. 6003.
      Section 5301(a) states that it is in the economic 
interest of the United States to encourage and promote the 
development of transportation systems because they maximize 
mobility and minimize transportation-related fuel consumption 
and air pollution. The findings in section 5301(b) are updated 
to reflect Census 2000 data. Subsection 5301(e) is amended to 
apply current requirements to preserve the environment and 
important historical and cultural assets throughout chapter 53, 
rather than only to capital programs carried out under sections 
5309 and 5310. Terms throughout the section are updated for 
clarity.
Conference Substitute
      Adopts the House language in subsection 5301(a) with the 
inclusion of economic interest. The Census updates from the 
Senate language are adopted. The remaining provisions of the 
section are the same in both bills.

                         SEC. 3004. DEFINITIONS

House Bill
            Sec. 3003.
      This section includes amendments to definitions that 
apply generally to chapter 53 of title 49, United States Code. 
These changes include adding new eligibilities for federal 
capital transit funding. Newly eligible uses for these capital 
funds include: (1) acquiring, constructing, relocating, and 
renovating intercity bus stations and terminals; (2) crime 
prevention and security projects (including security training 
for personnel and conductingemergency response drills); (3) 
establishing a debt service reserve fund for bond payments when such 
bonds are used for the purpose of financing an eligible transit 
project; and (4) mobility management activities and projects. Mobility 
management activities and projects improve the coordination among 
public transportation and other transportation service providers 
through short-range planning and management activities, such as buying 
computer software that matches public transportation riders and non-
emergency medical and other human services clients to transportation 
services. Directly providing public transportation services is not an 
eligible capital expense under this definition. The definition of 
``urbanized area'' is revised to reflect the Department of Commerce's 
role in designating urbanized areas via the decennial Census. Under 
current law, the terms ``mass transportation,'' ``public 
transportation,'' and ``transit'' are interchangeable. Under the 
changes made in this section, these three terms are still synonymous. 
However, ``public transportation'' becomes the principal defined term.
Senate Bill
            Sec. 6004.
      This section includes amendments to definitions that 
apply generally to chapter 53 of title 49, United States Code. 
These changes include adding new eligibilities for federal 
capital transit funding. Newly eligible uses for these capital 
funds include: (1) acquiring, constructing, relocating, and 
renovating intercity bus stations and terminals; (2) crime 
prevention and security projects (including security training 
for personnel and conducting emergency response drills); and 
(3) establishing a debt service reserve fund for bond payments 
when such bonds are used for the purpose of financing an 
eligible transit project. The Senate Banking Committee believes 
that improved integrated, interoperable, emergency 
communications infrastructure is one way for transit operators 
to improve the response to emergency situations, and that such 
expenditures are eligible capital expenditures under chapter 
53. The Senate bill includes mobility management activities 
under the section 5307 urbanized area formula grant program. As 
defined in this section, mobility management activities and 
projects tailor public transportation services to specific 
markets and manage demand for public transportation to help 
enhance ridership in a cost-effective and efficient manner. The 
definition of public transportation is amended to codify 
current practice of providing transportation service that 
serves a specific urbanized or rural area and its environs. 
Except for specific exceptions, such as the expanded 
eligibility of intercity bus facilities for capital funding and 
the ongoing intercity bus service under section 5311(f), 
intercity bus or rail services are not public transportation. 
The definition of ``urbanized area'' is revised to reflect the 
Department of Commerce's role in designating urbanized areas 
via the decennial Census. Under current law, the terms ``mass 
transportation,'' ``public transportation,'' and ``transit'' 
are interchangeable. Under the changes made in this section, 
these three terms are still synonymous. However, ``public 
transportation'' becomes the principal defined term.
Conference Substitute
      Adopts the House language regarding new eligibilities for 
federal capital transit funding, including the more limited 
definition of mobility management activities and projects as 
being directly related to improved coordination among public 
transportation and other transportation service providers. 
These new capital eligibilities apply to all programs under 
chapter 53. The conferees believe that improved integrated, 
interoperable, emergency communications infrastructure are one 
way for transit operators to improve the response to emergency 
situations, and that such expenditures are eligible capital 
expenditures under this chapter. The definition of public 
transportation has been amended to mean transportation by a 
conveyance that provides regular and continuing general or 
special transportation to the public, but does not include 
schoolbus, charter, or intercity bus transportation (except 
under programs where intercity bus projects are made 
specifically eligible), or intercity passenger rail 
transportation provided by Amtrak or its successor entities. 
The definition of ``urbanized area'' is revised to reflect the 
Department of Commerce's role in designating urbanized areas 
via the decennial Census. ``Public transportation,'' ``mass 
transportation,'' and ``transit'' remain interchangeable and 
synonymous. However, ``public transportation'' becomes the 
principal defined term, in recognition that the federal public 
transportation program has evolved over time, and now covers 
rural and other non-urban constituencies, as well as urbanized 
areas.

            SEC. 3005. METROPOLITAN TRANSPORTATION PLANNING

House Bill
            Sec. 3004.
      The House bill consolidates current law metropolitan 
planning provisions under sections 5303 and 5304 of title 49, 
U.S.C. and under section 134 of title 23, U.S.C. into a unified 
planning title for both transit and highways under chapter 52 
of title 49, U.S.C. For ease of reference, subsection 5303(a) 
of title 49, U.S.C. is amended to reflect that grants made 
under sections 5307-5311, 5316 and 5317 are to be carried out 
in accordance with chapter 52. Subsection 5303(b) requires the 
Secretary to certify that metropolitan planning organizations 
(MPOs) in transportation management areas comply with all 
planning and other applicable requirements in law in their 
transportation planning activities. However, the Secretary may 
not withhold certification of a transportation plan based on 
private enterprise participation. This is a standing limitation 
in existing law under section 5305(e)(3).
Senate Bill
            Sec. 6005.
      The Senate bill consolidates all provisions for 
metropolitan planning under section 5303 of title 49. The bill 
maintains the requirement for separate transportation plans and 
transportation improvement programs and requires certification 
of the planning process every four years. The Senate repeals 
the current law provision that allows a plan to be certified by 
the Secretary regardless of the policies and criteria an MPO or 
transit recipient establishes for deciding the feasibility of 
private enterprise participation. However, language is added 
under section 5306(a) of title 49 to clarify that local 
criteria will be the basis for such decisionmaking. The current 
law provisions regarding the scope of the planning process are 
amended to provide more detail on how protection of the 
environment is to be considered and adds a reference to planned 
growth patterns. A new participation plan is established to 
afford parties who participate in the metropolitan planning 
process a specific opportunity to comment on the plan before 
its approval. MPOs must certify that they have complied with 
their participation plan before the transportation plan can be 
approved. A new provision is added that requires the secretary 
to issue rules regarding the publication of the projects in the 
transportation improvement program for which funds have 
actually been obligated. Section 5305 of title 49, U.S.C. is 
repealed because provisions regarding Transportation Management 
Areas are incorporated into metropolitan transportation 
planning.
Conference Substitute
      Adopts the Senate proposal, without the requirement that 
MPOs must certify that they have complied with their 
participation plan before the transportation plan can be 
approved.

              SEC. 3006. STATEWIDE TRANSPORTATION PLANNING

House Bill
            Sec. 3005.
      The House bill consolidates the metropolitan and 
statewide planning provisions currently under title 23, U.S.C. 
and chapter 53, title 49, U.S.C. into a unified planning title 
for both transit and highways under chapter 52 of title 49, 
U.S.C. For ease of reference, section 5304 of title 49, U.S.C. 
is amended to reflect that grants made under sections 5307-
5311, 5316 and 5317 are to be carried out in accordance with 
chapter 52. Under current law (section 5323(l)), statewide 
transit planning was subject to statewide highway planning 
processes outlined in section 135 of title 23, U.S.C.
Senate Bill
            Sec. 6006.
      The Senate bill includes statewide planning requirements 
explicitly under 49 U.S.C. 5304, rather than by reference to 
section 135 of title 23 U.S.C. A new subsection (c) is added to 
allow States to enter into compacts or agreements for the 
purpose of formal planning cooperation and coordination for 
projects with multi-State implications. A requirement is added 
for States to consider the economic vitality for rural areas as 
well as urbanized areas in statewide transportation planning. 
The joint consideration of safety and security factors in 
planning is broken out as separate factors, to highlight 
heightened concerns with security at all levels of Government. 
The current law provisions regardingthe scope of the planning 
process are amended to provide more detail on how protection of the 
environment is to be considered. An expanded publication of the 
statewide plan is required. The update cycles for development and 
approval of statewide transportation plans are set at 4 years.
Conference Substitute
      Adopts the Senate proposal.

                      SEC. 3007. PLANNING PROGRAMS

House Bill
            Sec. 3006.
      Metropolitan planning and statewide planning funding 
provisions contained in current law sections 5303(g) and 
5313(b) are moved into a unified section on planning programs 
as the amended section 5305 of 49 U.S.C. The current law 
section 5305 pertains to metropolitan planning requirements for 
transportation management areas. These provisions are included 
under the unified metropolitan planning sections of chapter 52.
      Subsections 5305(a), (b) and (c) establish the general 
planning grant authority and purposes. The current law 
definition of a State is retained (a State of the United 
States, the District of Columbia, and Puerto Rico). Subsection 
(d) describes the metropolitan planning grant apportionment 
process. Subsection (e) describes the state planning and 
research grant apportionment process. Subsection (f) sets the 
Government's share of planning grant activity costs at 80 
percent. Subsection (g) describes the allocation of planning 
funds made available under funding authorization section 
5338(c) between metropolitan planning and statewide planning, 
using the same percentages set in current law section 
5338(c)(2)(C) (82.72 percent for metropolitan planning and 
17.28 percent for state planning and research). In subsection 
(h), funds remain available for three years after the fiscal 
year in which the funds are authorized, the same period of 
availability as under current law.
Senate Bill
            Sec. 6010.
      The Senate bill merges the existing Clean Fuels Formula 
Program into the Bus and Bus Facilities Program and sets the 
consolidated metropolitan and statewide planning grant programs 
under 49 U.S.C. 5308. The current law limitation on the 
definition of State is deleted, providing transportation 
planning funds and responsibilities for the first time to the 
U.S. Territories. A new planning capacity building program of 
$5 million a year is established for metropolitan planning 
organizations and transportation operators to plan, develop and 
implement innovations and enhancements that support and 
strengthen the planning process. This program is also 
authorized and funded under the highway title and will be 
carried out jointly by FTA and FHWA. The bill provides $20 
million a year for alternatives analysis activities that are 
now funded from the 49 U.S.C. 5309 New Starts program. The 
Senate believes that it is inappropriate to fund alternatives 
analysis under New Starts because that presumes that the result 
of the locally preferred alternative will, in fact, be a New 
Start. After these two new set-asides, the remaining planning 
funds are distributed as by current law, with 82.72 percent for 
metropolitan planning and 17.28 percent for state planning and 
research. The Government's share for planning grant activities 
is set at 80 percent, and funds remain available for three 
years after the fiscal year in which the funds are authorized, 
the same period of availability as under current law.
Conference Substitute
      Adopts the House language restricting planning funds and 
responsibilities to U.S. States, the District of Columbia, and 
Puerto Rico. Adopts House language defining the prompt 
allocation of planning funds by States to metropolitan planning 
organizations to be made available within 30 days after 
allocation to the State. Does not include an alternatives 
analysis set-aside under the Planning Programs, although a new 
stand-alone alternatives analysis program is established under 
section 5339 of title 49, United States Code. Planning funds 
will continue to be distributed as under current law, with 
82.72 percent for metropolitan planning and 17.28 percent for 
state planning.

              SEC. 3008. PRIVATE ENTERPRISE PARTICIPATION

House Bill
            Sec. 3007.
      This section title has been shortened to more clearly 
reflect the provisions within. The text of section 5306 of 
title 49, United States Code is not amended.
Senate Bill
            Sec. 6008.
      Current language that prohibits decertification for 
failure to meet the private sector participation requirements 
in 49 U.S.C. 5306 is not reenacted. The Senate bill adds 
clarifying language to make clear that local criteria are to be 
the basis for deciding on how to involve the private sector. A 
rulemaking is required to implement all of the changes to the 
statute made throughout the Senate bill on private sector 
participation, including enhancements to the role of private 
transportation providers in the planning process, changes in 
funding eligibility, and funding allocations.
Conference Substitute
      Adopts the Senate proposal clarifying that local criteria 
are to be the basis for deciding how to involve the private 
sector.

                SEC. 3009. URBANIZED AREA FORMULA GRANTS

House Bill
            Sec. 3008.
      This section amends section 5307 of title 49, United 
States Code, which contains provisions governing the 
eligibility and procedures for urbanized area formula grants to 
transit providers in areas of 50,000 and more in population. 
Two existing law subsections are deleted. Subsection 5307(h) is 
deleted as a technical cleanup, because streamlined 
administrative procedures for track and signal equipment 
certification have already been promulgated as directed in the 
subsection. Subsection 5307(k) regarding transit enhancement 
activities is also deleted, but the requirement that one 
percent of urbanized area formula grant funds for recipients in 
areas of over 200,000 be invested on enhancement activities is 
retained, and added to the list of grant recipient requirements 
in subsection 5307(d)(1).
      In paragraph (2), the existing extension of operating 
flexibility in urbanized areas that were less than 200,000 
under the 1990 Census, but increased to more than 200,000 in 
the 2000 Census, is further extended through the end of fiscal 
year 2004.
      Currently under subsection 5307(d), recipients are 
required to certify that they have the legal, financial, and 
technical capacity to carry out the program of projects for 
which they are applying as an urbanized area formula grant. 
This is amended in subparagraph (d)(1)(A) to additionally 
require that recipients certify such legal, financial, and 
technical capacity for the safety and security aspects of their 
program of projects.
      Subsection 5307(e) regarding the Government's share of 
costs is amended by deleting the 1985 baseline limitation on 
local match revenues resulting from the sale of advertising or 
concessions. Additionally, recipients are authorized to use 
amounts received under service agreements with a State, local 
social service agency, or private social service organizations 
as local match. This creates an incentive to transit agencies 
to better coordinate transportation services with human service 
agencies that provide transportation services.
      Section 5307(i) is redesignated as section 5307(h) and 
amended to give the Secretary discretion to require annual 
audits rather than mandate them.
      Subsection 5307(l) as redesignated, Relationship to Other 
Laws, strikes subparagraph (1) and moves the provision 
contained therein to the General Provisions on Assistance under 
section 5323, to make the prohibition on making false or 
fraudulentstatements to the Government (18 U.S.C. section 1001) 
applicable to any Federal public transportation grant program. A new 
paragraph (2) is added that exempts non-supervisory transit employees 
from the Hatch Act limitations relating to public election procedures 
for government employees, if the Hatch Act applies only because the 
employees' salaries are funded through Federal grants under this 
section. This exemption will apply only to employees in urbanized areas 
under 200,000 in population, where up to 50 percent of the net project 
cost may be derived from Federal grant funds. This codifies existing 
Federal transit law.
      Subsection 3008(h) adds a new subsection 5307(m) 
regarding the treatment of the United States Virgin Islands, 
which shall be treated as an urbanized area for the purposes of 
apportionments under section 5307.
Senate Bill
            Sec. 6009.
      Private companies engaged in public transportation are 
eligible subrecipients of Federal grants. Subsection 5307(a) is 
revised to include definitions for `subrecipient,' as well as 
`designated recipient.' A subrecipient includes any entity 
receiving funding from the designated recipient. This will 
facilitate private sector participation in public 
transportation.
      Mobility management is made an eligible expense. 
Subsection (b) is amended to state more explicitly the general 
authority for grants under Section 5307. Eligibility is 
expanded to include `mobility management' as defined in 
Subsection 5302(a)(7a). Paragraph (4) is struck since separate 
eligibility for reconstructing or rehabilitating rolling stock 
is no longer needed, since these terms have been included in 
the definition of capital project in Subsection 5303(a).
      Currently, urbanized areas over 200,000 may not use funds 
from the urbanized area formula program for operating 
assistance. A number of urbanized areas' status changed 
unexpectedly as a result of the 2000 census, due to changes in 
the Census Bureau's definitions and procedures for defining 
urbanized areas. These areas were allowed to continue to use 
funds for operating assistance for 2003 by P.L. 107-232, for 
2004 by the Surface Transportation Extension Act of 2003, and 
for the first eight months of 2005 by the Surface 
Transportation Extension Act of 2004, Part V. These provisions 
are extended for the remainder of 2005 as currently enacted. 
For 2006 and 2007, these provisions are phased out. Urbanized 
areas covered by these provisions would be allowed to use 50 
percent of their current limits on operating assistance in 2006 
and 25 percent in 2007. This should provide these areas with 
more than ample time to develop and implement transition plans. 
The Senate strongly opposes continuing these provisions beyond 
2007 and believes the more appropriate role for the Federal 
Government is in capital investment.
      Section 5307(g)(4) is deleted to remove an obsolete 
standard for setting interest rates on advance construction 
projects. TEA-21 included a provision which required that the 
interest rate be set based on the most favorable terms 
available to the recipient and thus this is unnecessary.
      The eligibility requirements for local match within this 
section are streamlined to include all advertising revenue as 
well as contracts with social service organizations.
      Certain urbanized areas which grew to a population of 
over 200,000 can use funds for operating assistance in 2006 
through 2007, with the amounts progressively phased down.
      Currently, Subsection 5307(h) requires streamlined 
administrative procedures for track and signal improvements. 
This subsection is deleted because separate treatment for track 
and signal projects is no longer needed.
      Currently, Subsection 5307(j) requires that grantees 
submit annual reports on sales of advertising and concessions. 
This subsection is deleted because it is redundant with a 
similar requirement of the National Transit Database.
      Transit enhancements program is administered as a 
certification rather than as a set-aside. Subsection 5307(k) 
dealing with `transit enhancement activities' is mainstreamed 
into a new subparagraph (K) in Section 5307(d)(1). Currently, 
that subsection allows for a one percent set-aside for transit 
enhancements and requires a report listing the projects. Under 
new subparagraph (K), a recipient with at least a population of 
200,000 in its urbanized area could instead certify that one 
percent of its Section 5307 funds has been expended on transit 
enhancements.
      Under current law, Section 5307(n)(1) states that 18 
U.S.C. 1001, regarding false or fraudulent statements, applies 
only to certificates or submissions provided pursuant to 
Section 5307, `Urbanized Area Formula Grants.' This paragraph 
is moved to Section 5323, General Provisions on Assistance. 
Under Section 5223, 18 U.S.C. 1001 applies to any Federal 
public transportation grant program.
      A technical amendment is made to Subsection 5307(k)(2) to 
provide a complete list of requirements with which grant 
recipients must comply. In addition, a provision is added to 
Subsection 5307(k) to clarify that the Hatch Act does not apply 
to non-supervisory employees of grant recipients. This 
provision was included in the former Section 5 of the Urban 
Mass Transportation Act of 1964, as amended. However, it was 
inadvertently not included in Chapter 53 when the Urban Mass 
Transportation Act of 1964, as amended, was codified.
Conference Substitute
      The conferees adopted the Senate language providing for a 
phase-out of operating eligibility for urbanized areas which 
crossed over 200,000 in population for the first time in the 
2000 census.
      The conference agreement provides that transit 
enhancement program will be administered as a certification, 
rather than a set-aside, and that grant recipients must submit 
an annual report of transit enhancement projects.
      The conferees agreed to delete the 1985 baseline 
limitation on local match revenues resulting from the sale of 
advertising or concessions. Additionally, the conferees agreed 
to allow recipients to use amounts received under service 
agreements with a State, local social service agency, or 
private social service organizations as local match in order to 
foster coordination with other agencies that provide 
transportation services.
      The conferees made a number of technical changes to 
Section 5307. Subsection (b) is amended to state more 
explicitly the general authority for grants under Section 5307. 
In addition, the conferees agreed that recipients must certify 
legal, financial, and technical capacity for the safety and 
security aspects of their program of projects. The conferees 
agreed to delete subsections (b)(4), (g)(4), (h), (j), and (k) 
as redundant or obsolete. The definition of associated capital 
maintenance was reorganized. A technical amendment is made to 
Subsection 5307(k)(2) to provide a complete list of 
requirements with which grant recipients must comply. In 
addition, a provision is added to Subsection 5307(k) to codify 
existing transit law which states that the Hatch Act does not 
apply to non-supervisory employees of grant recipients. The 
conferees deleted the reference to 18 U.S.C. 1001, regarding 
false or fraudulent statements, from Section 5307, because 
Section 5323 is amended to apply 18 U.S.C. 1001 to the entire 
federal transit program.
      The conference agreement adopts the House provision 
regarding the treatment of the United States Virgin Islands as 
an urbanized area for the purposes of apportionments under 
section 5307.

                  SEC. 3010. CLEAN FUELS GRANT PROGRAM

House Bill
            Sec. 3009.
      Section 3009 amends section 5308 of title 49, United 
States Code, regarding the clean fuels formula grant bus 
procurement program. Funds are apportioned to recipients in 
urbanized areas that are designated as nonattainment areas for 
ozone or carbon monoxide under section 107(d) of the Clean Air 
Act or are maintenance areas for ozone or carbon monoxide. 
These grant funds can be used to purchase or lease clean fuel 
buses, construct or lease vehicle-related equipment supporting 
such clean fuel buses, and construct new or improve existing 
facilities to accommodate clean fuel buses. Clean fuel buses 
include those powered by clean diesel, compressed natural gas, 
liquefied natural gas, biodiesel fuels, batteries, alcohol-
based fuels, hybrid electric power systems, fuel cells, or 
other low or zero emission technologies. Not more than 25 
percent of the funds made available under the clean fuels 
formula grant program may be used for clean diesel bus 
technology. The apportionment formula is weighted such that 
two-thirds of the funds go to recipients serving urbanized 
areas with a population of 1,000,000 or more and one-third of 
the funds go to recipients serving urbanized areas of less than 
1,000,000. The formula is also weighted by the severity of 
nonattainment in the urbanized area being served.
      The Committee intends that the Secretary shall encourage 
recipients of clean fuels formula grants to adequately invest 
in infrastructure facilities to accommodate the needs of these 
alternatively fueled vehicles.
Senate Bill
      No comparable provision.
Conference Substitute
      The conference report retains the House clean fuels grant 
program, but makes the program discretionary in nature rather 
than a formula grant program.

                  SEC. 3011. CAPITAL INVESTMENT GRANTS

House Bill
            Sec. 3010.
      This section amends section 5309 of title 49, United 
States Code, which authorizes capital investment grants for new 
fixed guideway capital projects (``new starts''), fixed 
guideway modernization (``rail modernization''), and bus and 
bus-related facilities. All references in the current law 
section heading and text to ``capital investment loans'' are 
deleted from section 5309. Historically, only capital 
investment grants have been awarded under this section.
      Subsection 5309(c), concerning major capital investment 
grants of $75 million or more includes the new starts program 
requirements and FTA evaluation and rating criteria found in 
current law subsection 5309(e). The term describing all new 
starts and small starts projects is changed from the current 
law ``capital project for a new fixed guideway system or 
extension of an existing fixed guideway system'' to ``new fixed 
guideway capital project'' for the sake of brevity. The new 
term is defined in subsection (n) as a minimum operable segment 
of a capital project for a new fixed guideway system or 
extension to an existing fixed guideway system, which is the 
same definition for new starts projects as under current law 
subsection 5309(p). Subsection 5309(c) pertains only to those 
new fixed guideway capital projects that will require $75 
million or more of Federal assistance provided under the 
authority of Section 5309. Such projects are defined as 
``major'' new starts as opposed to small starts, which involve 
less than $75 million in such funds and are authorized under 
subsection (d).
      Major new starts projects must be carried out through a 
full funding grant agreement with the Secretary. The full 
funding grant agreement is based upon the evaluations and 
ratings required under subsection 5309(c). The baseline 
requirements for a project to secure a grant under this 
subsection is that the project proposal must be based on the 
results of alternatives analysis and preliminary engineering; 
justified based on a comprehensive review of the project's 
benefits; and supported by an acceptable degree of local 
financial commitment. The project justification and local 
financial commitment evaluation criteria are outlined in 
detail, consistent with the current law criteria. In assessing 
the local financial commitment for a new starts project, the 
FTA is authorized to consider the extent to which the project 
sponsor has overmatched the statutory local match requirement 
of 20 percent. However, the authority to consider a higher 
local match as part of the assessment of a project's local 
financial commitment does not allow the Secretary to require a 
higher local match than 20 percent.
      Proposed new starts projects under subsection (c) are 
authorized to advance from alternatives analysis to preliminary 
engineering, and from preliminary engineering to final design 
and construction, if the Secretary finds that the project meets 
the requirements of this section. In making these findings, the 
Secretary is directed to evaluate and rate the project as 
``highly recommended'', ``recommended'', or ``not recommended'' 
based on the results of alternatives analysis, the project 
justification criteria, and local financial commitment.
      Subsection 5309(d) regarding capital investment grants of 
less than $75 million authorizes a new program under Capital 
Investment Grants. These ``small starts'' fall into two 
subcategories--those involving between $25 million and $75 
million in funds under section 5309, and those that are less 
than $25 million. New fixed guideway capital projects with a 
section 5309 Federal share of less than $25 million are not 
subject to the requirements of this subsection regarding 
project evaluation and rating and do not enter into a long-term 
financial contract with the Secretary (called a ``project 
construction grant agreement'' in the small starts program). 
Under the small starts program, lower-cost fixed guideway 
projects such as streetcars, bus rapid transit, and commuter 
rail projects will be advanced through an expedited and 
streamlined evaluation and rating process. As the Federal 
Transit Administration develops administrative and regulatory 
guidance for the implementation of the small starts program, 
the process and procedures adopted should be representative of 
the relative size and scope of the projects.
      Project justifications for the small starts program are 
based on five criteria: consistency with local land use 
policies and likelihood to achieve local developmental goals; 
cost effectiveness of the project at the time revenue service 
is initiated; degree of positive impact on local economic 
development; reliability of cost and ridership forecasts; and 
other factors the Secretary considers appropriate to carry out 
this subsection. The Secretary is also required to analyze and 
consider the results of planning and the alternatives analysis 
for the project. The small starts evaluation process should 
consider the economic benefits of the project, including the 
level of private sector investment associated with the 
advancement of the project. The small starts local financial 
commitment evaluation is a streamlined version of the new 
starts financial evaluation process. The Secretary is directed 
to require that each proposed local source of capital and 
operating financing is stable, reliable, and available within 
the proposed project timetable, and that there be an acceptable 
degree of local financial commitment. This provision gives the 
Secretary the authority to consider a higher local match as 
part of the assessment of a project's local financial 
commitment, but does not allow the Secretary to require a 
higher local match than 20 percent.
      The project development process is also simplified. The 
new starts project development process involves four discrete 
steps: (1) planning and alternatives analysis, (2) preliminary 
engineering, (3) final design, and (4) entering into a full 
funding grant agreement and construction. The small starts 
program involves three steps: (1) planning and alternatives 
analysis, (2) project development, and (3) entering into a 
project construction grant agreement and construction. Small 
starts projects may advance from planning and alternatives 
analysis to project development and construction only after the 
Secretary finds that the project meets the requirements of this 
subsection and the local metropolitan planning organization 
adopts the locally preferred alternative into its long-range 
transportation plan. Small starts projects are evaluated based 
on project justification criteria and local financial 
commitment and are rated as ``recommended'' or ``not 
recommended'' based on the results of the FTA's analysis. Only 
small starts projects that are authorized for construction and 
rated ``recommended'' may enter into a project construction 
grant agreement.
      Another important difference between the new starts 
program and the small starts program is that, under the small 
starts program, fixed guideway capital projects have a broader 
definition that includes corridor-based public transportation 
bus projects if the majority of the project's right-of-way is 
dedicated alignment. However, the program is written to be 
``mode neutral''--any fixed guideway capital project fitting 
the broader definition under small starts is eligible to be 
funded under this category if it is less than $75 million in 
section 5309 Federal funds, whether it is a bus rapid transit 
project, a streetcar or trolley project, commuter rail, or 
light rail. However, all small starts projects must be included 
under the new starts authorization list in section 3037 of this 
bill to receive funds in subsequent appropriations bills within 
this authorization period.
      Subsection 5309(g) outlines the Government's share of the 
net project cost for all projects authorized under section 
5309. The Administration had proposed to decrease the 
Government's share for new start projects to 50 percent. The 
Committee has rejected this proposal, and retains the provision 
under subsection 5309(h) in current law that the Federal share 
for a project shall be 80 percent, unless the grant recipient 
requests a lower grant percentage. New language is included 
clarifying that nothing in section 5309, including the language 
that specifically directs the FTA to consider in its evaluation 
of a project the extent to which a project has a higher local 
match than required by law, shall be construed as authorizing 
the Secretary to require a local match higher than 20 percent 
of the net capital project cost.
      Subsection 5309(i) directs the Secretary to submit an 
annual new starts report to the House and Senate authorizing 
committees on the first Monday in February, which includes the 
Administration's funding proposals for new starts projects in 
the coming fiscal year, and evaluations and ratings for all new 
starts projects authorized in section 3037 of this Act. The 
current law requirement under subsection 5309(o)(2) regarding 
an August supplemental report is deleted. The Committee directs 
that the FTA shall forward letter updates to the House and 
Senate authorizing committees when a project advances to 
preliminary engineering or to final design after the 
publication of the annual new starts report. In subsection 
5309(i)(2), the U.S. General Accounting Office is directed to 
conduct an annual review of FTA's processes and procedures for 
evaluating, rating, and recommending new starts projects and 
how the agency implements such processes and procedures. This 
review shall be submitted to the Congress by May 31 of each 
year.
      Subsection 5309(k), regarding bus and bus facility 
grants, amends the existing law language under subsection 
5309(m)(3). The current language regarding consideration of the 
age of buses, bus fleets, related equipment, and bus-related 
facilities when making grants is retained. Current law 
provisions that set aside funds for the bus testing facility in 
Altoona, Pennsylvania and for the section 5308 Clean Fuels 
formula program are deleted, as both these programs are now 
funded as set-asides from formula grants.
      Subsection 5309(l) is a new provision making bus and bus 
facilities and new starts grant funds available for three 
fiscal years (including the year in which the amount is made 
available or appropriated). Funds that remain unobligated after 
three years shall be deobligated and may be used by the 
Secretary for any purpose under this section.
      Subsection 5309(m) directs the allocation of amounts made 
available for programs authorized under section 5309. The 
existing formula of 40 percent for new starts, 40 percent for 
rail modernization, and 20 percent for bus and bus facilities 
is retained, after the funding levels authorized for small 
starts are set aside from the total amount made available for 
section 5309 programs. The current law set-aside of $10.4 
million a year for ferryboats and ferry terminal facilities in 
Alaska or Hawaii is retained. A provision is added establishing 
a new set-aside for the national fuel cell bus technology 
development program, and a new ferryboat and ferry terminal 
set-aside of $10 million per year is established.
Senate Bill
            Sec. 6011.
      The General Authority section is amended to limit the 
program to focus on three activities: New Starts, fixed 
guideway modernization, and buses and bus facilities. Non-fixed 
guideway corridor improvements are eligible for New Starts 
funds for projects under $75 million. Current procedures and 
criteria apply to New Starts projects over $75 million in New 
Starts share while simplified procedures and criteria apply to 
New Starts projects under $75 million in New Starts share. The 
current exemption for projects under $25 million is eliminated.
      The Bus, New Starts and Fixed Guideway Modernization 
programs continue in the Capital Investment Programs; funds are 
split approximately 23% bus, 40% New Starts and 37% Fixed 
Guideway Modernization.
      Bus funds going to private non-profit organizations or 
rural transit systems as subrecipients are administered under 
the requirements of the Elderly and Disabled and Rural 
programs, respectively. The requirements for statewide transit 
providers depend on where the project is located. Funding for 
Alternatives Analysis is made available from the Planning 
Program rather than the Capital Investment Program.
      The current three level rating system (Highly 
Recommended, Recommended, Not Recommended) is replaced by a 
five level system (High, Medium-High, Medium, Medium-Low, Low).
      The maximum New Starts share is retained at 80 percent. A 
higher than requested share can be provided for projects which 
keep cost and ridership estimates within 10 percent of the 
forecasts used as the basis for establishing the Locally 
Preferred Alternative.
      Grantees will be allowed to keep a portion of the cost 
savings in the case where projects are completed under budget.
      The New Starts Report and Supplemental Report are 
replaced by reports issued three times a year focusing on 
changes to ratings and an annual report on budget 
recommendations.
      References to `capital investment loans' are deleted from 
Section 5309 since, historically, only capital investment 
grants have been awarded pursuant to this section.
      A new Subsection 5309(e)(8) is added to require periodic 
publication of the policies and procedures used in rating 
projects. This will help improve the transparency and 
predictability of the rating process.
      The Committee is seeking to identify cost drivers for 
critical, complex, and capital intensive transit New Starts 
projects. Public Private Partnerships (PPP) may provide an 
important way to achieve significant savings. These 
partnerships with qualification-based selection and 
performance-based contracting integrate risk sharing, 
streamline project development, engineering, and construction, 
and preserve the integrity of the NEPA process, which results 
in the potential for significant schedule and cost advantages 
over traditional infrastructure development. The Committee 
expects the Secretary to initiate the pilot program as soon as 
practicable after enactment, in order that the benefits of 
PPP's may be understood and potentially applied to other 
transit New Starts projects.
      A new statutory requirement for `Before and After 
Studies' as part of Full Funding Grant Agreements is added in 
Section 5309(g). Such studies are already required by the 
regulation implementing Section 5309(e) and are an essential 
part of improving the New Starts program. By better 
understanding the actual costs and benefits of New Starts 
projects, especially the early planning stages when the Locally 
Preferred Alternative (LPA) is chosen, the planning process can 
be improved, and future projects can be based on estimates of 
costs and benefits which are more accurate. In addition, FTA 
would be required to produce an annual report each year that 
would summarize the results of these studies.
      Section 5309(i)(3) would continue to set aside 
$10,400,000 each year for Alaska and Hawaii ferryboats, the 
same amount as is in TEA-21. The factors in Section 5309(i)(6) 
to be considered by the Secretary in selecting bus and bus 
facilities grants is expanded to include both the age and 
condition of the buses, fleets, and facilities.
      In lieu of establishing a new program for intermodal 
facilities as proposed by the Administration, $75 million is 
set aside each year from the bus discretionary program for 
these facilities. Eligibility for the intercity portion of 
intermodal terminals is established by the amendment to Section 
5302.
      The Federal Transit Administration is required to issue a 
`Contractor Performance Assessment Report' (CPAR). This report 
will analyze the consistency and accuracy of cost and ridership 
estimates made by contractors to public transportation agencies 
developing major capital investments. This would provide public 
transportation agencies with a tool to assist in choosing 
contractors with the highest success rates in predicting cost 
and ridership.
Conference Substitute
      This section amends section 5309 of title 49, United 
States Code, which authorizes capital investment grants for new 
fixed guideway capital projects (``new starts''), fixed 
guideway modernization (``rail modernization''), and bus and 
bus-related facilities. All references in the current law 
section heading and text to ``capital investment loans'' are 
deleted from section 5309. Historically, only capital 
investment grants have been awarded under this section.
      Subsection 5309(d) regarding capital investment grants of 
less than $75 million authorizes a new program under Capital 
Investment Grants. Under the small starts program, lower-cost 
fixed guideway and non-fixed guideway projects such as bus 
rapid transit, streetcars, and commuter rail projects will be 
advanced through an expedited andstreamlined evaluation and 
rating process. Non-fixed guideway corridor improvements are eligible 
for New Starts funds for projects under $75 million. This can be 
demonstrated by a substantial fixed guideway or by a substantial 
investment in a defined corridor. Project justifications for the small 
starts program are based on five criteria: consistency with local land 
use policies and likelihood to achieve local developmental goals; cost 
effectiveness of the project at the time revenue service is initiated; 
degree of impact on local economic development; reliability of cost and 
ridership forecasts; and other factors the Secretary considers 
appropriate to carry out this subsection. The Secretary is also 
required to analyze and consider the results of planning and the 
alternatives analysis for the project to ensure that sufficient effort 
has been made to perform a true exploration of alternatives analysis. 
The small starts local financial commitment evaluation is a streamlined 
version of the new starts financial evaluation process. The Secretary 
is directed to require that each proposed local source of capital and 
operating financing is stable, reliable, and available within the 
proposed project timetable, and that there be an acceptable degree of 
local financial commitment.
      Current procedures and criteria apply to New Starts 
projects over $75 million in New Starts share while simplified 
procedures and criteria apply to New Starts projects under $75 
million in New Starts share. The current exemption for projects 
under $25 million is eliminated, once the FTA has promulgated 
regulations required under the small starts program.
      The current three level rating system for New Starts 
(Highly Recommended, Recommended, Not Recommended) is replaced 
by a five level system (High, Medium-High, Medium, Medium-Low, 
Low). The maximum New Starts share is retained at 80 percent.
      Grantees will be allowed to keep a portion of the cost 
savings in the case where projects are completed under budget.
      A higher than requested share can be provided for 
projects which keep cost and ridership estimates within 10 
percent of the forecasts used as the basis for establishing the 
Locally Preferred Alternative. Transit projects that make a 
concerted effort to produce valid and reliable estimates have 
the potential to be rewarded.
      Subsection 5309(g) outlines the Government's share of the 
net project cost for all projects authorized under section 
5309. The Administration had proposed to decrease the 
Government's share for new start projects to 50 percent. The 
Conference has rejected this proposal, and retains the 
provision under subsection 5309(h) in current law that the 
Federal share for a project shall be 80 percent, unless the 
grant recipient requests a lower grant percentage. In assessing 
the local financial commitment for a new starts project, the 
FTA is authorized to consider the extent to which the project 
sponsor has overmatched the statutory local match requirement 
of 20 percent. However, the authority to consider a higher 
local match as part of the assessment of a project's local 
financial commitment does not allow the Secretary to require a 
higher local match than 20 percent.
      The Conference is seeking to identify cost drivers for 
critical, complex, and capital intensive transit New Starts 
projects. Public Private Partnerships (PPP) may provide an 
important way to achieve significant savings. These 
partnerships with qualification-based selection and 
performance-based contracting integrate risk sharing, 
streamline project development, engineering, and construction, 
and preserve the integrity of the NEPA process, which results 
in the potential for significant schedule and cost advantages 
over traditional infrastructure development. The Committee 
expects the Secretary to initiate the pilot program as soon as 
practicable after enactment, in order that the benefits of 
PPP's may be understood and potentially applied to other 
transit New Starts projects.
      In lieu of establishing a new program for intermodal 
facilities as proposed by the Administration, $35 million is 
set aside each year from the bus discretionary program for 
these facilities. Eligibility for the intercity portion of 
intermodal terminals is established by the amendment to Section 
5302.
      A new statutory requirement for `Before and After 
Studies' as part of Full Funding Grant Agreements is added in 
Section 5309(g). Such studies are already required by the 
regulation implementing Section 5309(e) and are an essential 
part of improving the New Starts program. By better 
understanding the actual costs and benefits of New Starts 
projects, especially the early planning stages when the Locally 
Preferred Alternative (LPA) is chosen, the planning process can 
be improved, and future projects can be based on estimates of 
costs and benefits which are more accurate. In addition, FTA 
would be required to produce an annual report each year that 
would summarize the results of these studies.
      The Federal Transit Administration is required to issue a 
`Contractor Performance Assessment Report' (CPAR). This report 
will analyze the consistency and accuracy of cost and ridership 
estimates made by contractors to public transportation agencies 
developing major capital investments. The CPAR will provide 
public transportation agencies with an informational tool, 
allowing them to better identify contractors able to perform 
accurate estimates of cost and ridership figures. Additionally, 
consulting the CPAR as a condition of Federal assistance will 
help ensure the reliability of estimates used in awarding 
FFGAs. In considering the performance of individual 
contractors, the Secretary may take into consideration 
extenuating factors outside the control of a contractor that 
may have had an adverse impact on the accuracy of estimates.

SEC. 3012. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND 
                     INDIVIDUALS WITH DISABILITIES

House Bill
            Sec. 3011.
      This section amends section 5310 of title 49, United 
States Code, which authorizes formula grants to States for 
public transportation projects and services that meet the 
special needs of elderly and disabled individuals. The 
definition of grant recipient is amended in paragraph 
5310(a)(2) by adding a definition for subrecipients, which is 
consistent with current practice. A 10 percent limitation is 
included on the amount of a State's grant funds that may be 
used for recipient or for subrecipient administrative expenses 
and technical assistance. This codifies current FTA 
administrative practice.
      Subsection 5310(b) describes the apportionment and 
transfer processes, which follows current law, except that an 
adjustment is made to the apportionment formula for 
particularly low density States. In low density States, 
providing essential public transportation is particularly 
challenging, especially to special needs populations, because 
of the distances involved. When providing services over these 
long distances, operating costs are higher and farebox recovery 
is lower. This formula adjustment may enable low density States 
to continue providing essential public transportation services 
to a sector of the population that is particularly dependent on 
transit--the elderly and disabled.
      Subsection (c) amends current law regarding the 
Government's share of costs. The current Federal match of 80 
percent for capital projects is retained, except in cases where 
a State has a very high percentage of Federally-owned public 
lands. In such cases, the ``sliding scale'' Federal match under 
section 120(b) of title 23, United States Code, is used. 
Operating expenses are also made eligible for section 5310 
elderly and disabled grant funding, limited to 50 percent of 
net operating costs. Two new sources of local match funding are 
authorized: proceeds from a service agreement with a State, 
local social service agency, or private social service 
organization; and other Federal funds from non-Department of 
Transportation agencies that can be expended for transportation 
(e.g., Temporary Assistance for Needy Families, Medicaid, job 
training program funds, or Welfare to Work grants). Using these 
related human service grants funds as a local match for transit 
projects leverages the Federal investment and increases 
coordination among Federal agencies that provide transportation 
services.
      Subsection (d) regarding grant requirements changes the 
general applicability of requirements for the elderly and 
disabled grant program from current law, which ties the program 
to section 5309, to the requirements under section 5307, to the 
extent the Secretary considers appropriate. A new requirement 
is added that, beginning in fiscal year 2007, the State must 
certify that projects funded under this section are derived 
from coordinated public transit-human services transportation 
plans with public input. The current law requirement that the 
State certify allocations of funds were made on a fair and 
equitable basis is retained.
Senate Bill
            Sec. 6012.
      Currently, under Section 5310, the Secretary may provide 
grants for the special needs of elderly individuals and 
individuals with disabilities directly (1) to a State or local 
Government authority; or (2) to the chief executive office of 
the State for allocation to private non-profit corporations or 
associations when such service is unavailable or insufficient, 
or (3) to Governmental authorities approved by the State to 
coordinate services for these two population groups, if there 
are no non-profit corporations readily available to provide the 
service. Section 5310 is amended to authorize grants through 
the States, which would then allocate the funds to private non-
profit organizations or Governmental authorities under the same 
conditions required in current law.
      Persons with disabilities are particularly in need of 
service beyond that provided in response to the Americans with 
Disabilities Act. The program is expanded and renamed to 
include activities which provide access to persons with 
disabilities, in addition to that which is necessary to meet 
the requirements of the Americans with Disabilities Act. 
Funding for Section 5310 is expanded and explicit eligibility 
is provided for Governmental authorities providing services in 
excess of that provided by the Americans with Disabilities Act. 
This will help fulfill the goals of the President's New Freedom 
Initiative, without creating a new program. In addition, 
language is added to clarify that a priority of Section 5310 
program funds is the provision of access to medical care.
      Section 5310(a)(3) allows a State to use up to 15 percent 
of the amounts it receives under this section to administer, 
plan, and provide technical assistance. This additional 
authority makes this program consistent with the Section 5311 
program, so that both state-administered programs essentially 
have similar structures.
      Consistent with existing Section 5310, grants would be 
made for capital public transportation projects planned, 
designed, and carried out to meet the special needs of this 
population and could include the acquisition of public 
transportation services as a capital expense. The Federal share 
cannot exceed 80 percent of the net capital costs of the 
projects, as determined by the Secretary. The remainder of the 
funds could be provided from a variety of other sources, 
including undistributed cash surpluses, or from amounts 
appropriated or made available for transportation from any 
other Federal department or agency other than the Department of 
Transportation, except for Federal Lands Highway funds, as well 
as contract revenue received from human service agencies. This 
section is also amended to allow for a sliding scale approach 
to the match requirements for capital expenses for those states 
that have a large percentage of public lands, and as a result, 
have a lower tax base from which to draw resources to fund the 
matching requirement mandated by these programs. It is similar 
in nature to a provision already in current law in the highway 
program.
      As is current practice, funds under Subsection (b)(1) are 
apportioned to States based on a formula administered by the 
Secretary. In administering this formula, the Secretary will 
consider the number of elderly individuals and individuals with 
disabilities in a State. Under current law, unobligated Section 
5310 funds available during the fourth quarter of each fiscal 
year may be transferred to Urbanized Area or Other Than 
Urbanized Area Formula Grant programs in order to supplement 
funds apportioned under those sections. Subsection (b)(2) 
allows recipients of grants under this section to transfer 
Section 5310 funds to those programs at any time provided that 
the funds are used for the purposes originally authorized. This 
would eliminate the artificial fourth quarter requirement since 
States typically budget for such transfers in the beginning of 
each fiscal year. In addition, States could make funds 
available to a subrecipient in a single transaction that 
included several FTA program-funding sources.
      Under Subsection (d), a recipient of a grant is subject 
to all Section 5307 grant requirements to the extent the 
Secretary deems appropriate. Recipients would be required to 
certify that the projects for which funds are requested are 
drawn from a plan for human service transportation 
coordination. The effect of this provision and those included 
in the non-urbanized formula program and the Jobs Access and 
Reverse Commute Program will be to enhance coordination between 
these programs and with programs of other Departments, such as 
Health and Human Services, Labor, and Education. The Committee 
expects that FTA will give grantees an appropriate opportunity 
to develop these plans by phasing in this requirement during FY 
2006. Finally, recipients are required to certify that 
allocations made to subrecipients were distributed in a fair 
and equitable manner.
      Subsections (e) through (i) are the same as in current 
law.
Conference Substitute
      The conference agreement maintains the current law 
program for special needs of elderly individuals and 
individuals with disabilities and does not incorporate New 
Freedom activities, as the Senate bill did. Because of strong 
interest from States in extending the authority to use section 
5310 grant funds for operating assistance, a new seven-state 
pilot program is established for fiscal years 2006 through 2009 
to determine whether this expanded authority improves services 
to elderly individuals and individuals with disabilities.

        SEC. 3013. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS

House Bill
            Sec. 3012.
      This section amends section 5311 of title 49, United 
States Code, regarding the apportionment of formula grant funds 
for non-urbanized areas. Subsection (a) amends the definition 
provisions under section 5311(a) to define an eligible 
recipient and sub-recipient of other than urbanized area funds.
      Subsection (b) amends the general authority provisions 
that allow other than urbanized areas to use formula grant 
funds for capital transportation projects, or operating 
assistance projects (including the acquisition of 
transportation services) provided the projects are contained in 
a state program of public transportation service projects. 
Under subsection 5311(b)(3), the rural transportation 
assistance program (RTAP), a national technical assistance, 
training and support program for rural public transportation 
providers, is funded with a 2 percent set-aside of the section 
5311 grant funds. From the amounts made available for the RTAP 
activities, up to 15 percent may be used by the Secretary to 
carry out projects of a national scope to sustain ongoing 
national activities. Under current law, the RTAP is funded out 
of the Research program.
      Subsection 5311(c) describes the apportionment process, 
which follows current law, except that an adjustment is made to 
the apportionment formula for particularly low density States. 
In low density States, providing essential public 
transportation is particularly challenging because of the 
distances involved. When providing services over these long 
distances, operating costs are higher and farebox recovery is 
lower. This formula adjustment may enable low density States to 
provide essential public transportation services by 
establishing a level of funding that will support a baseline 
program.
      In subsection (e), an amendment is made to 5311(f) that 
requires States to consult with affected intercity bus service 
providers before certifying to the Secretary that intercity bus 
service needs of the State are being adequately met without 
making the 15 percent allocation of funds to such services. 
Such consultation would help ensure the State's awareness of 
any intercity bus service needs.
      Subsection (f) amends section 5311(g) to retain the 
existing Federal share for any capital project at 80 percent or 
less of the net project cost, as determined by the Secretary; 
except in cases where a State has a very high percentage of 
Federally owned lands. In such cases, the ``sliding scale'' 
Federal match under section 120(b) of title 23, United States 
Code, is used. Also retained is the Federal share for operating 
assistance at 50 percent or less of the net costs of an 
operating project, as determined by the Secretary. The 
remainder of the net project costs may be provided from a 
number of different sources, including amounts appropriated to 
or made available to a department or agency of the Federal 
government, other than the Department of Transportation (e.g., 
Temporary Assistance for Needy Families, Medicaid, job training 
program funds, or Welfare to Work grants). Using these related 
human service grants funds as a local match for transit 
projects leverages the Federal investment and increases 
coordination among Federal agencies that provide transportation 
services.
Senate Bill
            Sec. 6013.
      A new formula tier is established based on land area to 
address the needs of low-density states. The remaining 80 
percent of funds are to be allocated using the current formula. 
Matching funds may come from contracts with human service 
agencies (as in current law) or from other Federal programs.
      Section 5311(a) defines an eligible recipient and 
subrecipient of other than urbanized area program funds. Indian 
tribes are established as direct recipients. Private operators 
engaged in public transportation are made eligible as 
subrecipients of 5311 funds, providing for opportunities for 
involvement of the private sector, as was the original intent 
when the Urban Mass Transportation Act of 1964 was first 
enacted.
      Recipients must submit data on service levels, costs, and 
revenues to the National Transit Database. Currently, urbanized 
area program grant recipients must submit data on service 
levels, costs, and revenues, in accordance with requirements of 
the National Transit Database. Current law is amended to 
require a simplified version of these data collection 
requirements for the other than urbanized area program. Given 
the large growth in funding for this program, it is crucial 
that recipients report basic information on the effectiveness 
of this program. The Committee expects that the data collection 
requirements will be tailored to the smaller size of the 
typical public transportation system in rural areas, while 
still providing enough information to judge the condition and 
performance of our Nation's network of rural public 
transportation services.
      The Rural Transit Assistance Program becomes a 2 percent 
takedown from the program. Under current law, recipients of 
grants and contracts for transportation research, technical 
assistance, training, or related support services, such as 
those given under the Rural Transportation Assistance Program 
(RTAP), must compete annually for National Planning and 
Research funds. Section 5311(b)(3), as redesignated, provides 
up to two percent of Section 5311 funds to carry out RTAP 
activities. This amendment better correlates funding for RTAP 
with the amount of funding for rural service overall, thereby 
stabilizing the program.
      Indian tribes become eligible direct recipients of 
program funds, with a portion of funding set aside for tribes 
beginning in FY 2006. An increasing amount of funding is set 
aside for Indian Tribes each fiscal year beginning in fiscal 
year 2006. Of the remainder, eighty percent of the Section 5311 
program amount is apportioned to States pursuant to the same 
formula currently being used and now set forth in Section 
5311(c)(3), which uses population in non-urbanized areas to 
allocate funds. The remaining twenty percent is apportioned on 
land area in non-urbanized areas. Section 5311(f)(2) requires 
the State to consult with affected intercity bus service 
providers before certifying that the State's intercity bus 
service needs are being adequately met.
      Subsection 5311(g) is amended to allow for a sliding 
scale approach to the match requirements for capital expenses 
under this section for those states that have a large 
percentage of public lands, and as a result, have a lower tax 
base from which to draw resources. It is similar in nature to a 
provision already in current law in the highway program. The 
match for operating assistance is set at \5/8\ of the match for 
capital projects.
Conference Substitute
      The conferees agreed to define eligible recipients and 
subrecipients of Section 5311 funds. Indian tribes are added as 
eligible recipients.
      The general authority to make grants under the 5311 
program is rewritten to explicitly include both capital and 
operating grants; thus, subsection (h) is deleted as 
unnecessary.
      The conferees agreed to fund the rural transportation 
assistance program (RTAP), a national technical assistance, 
training and support program for rural public transportation 
providers, with a 2 percent set-aside of the section 5311 grant 
funds, rather than from the Research program, as in current 
law. The conferees adopted the House provision specifying that 
from the amounts made available for RTAP, up to 15 percent may 
be used by the Secretary to carry out projects of a national 
scope to sustain ongoing national activities.
      The conference report includes the Senate provision 
requiring recipients of Section 5311 funds to submit data on 
service levels, costs, and revenues to the National Transit 
Database. The conferees expect that the data collection 
requirements will be tailored to the smaller size of the 
typical public transportation system in rural areas, while 
still providing enough information to judge the condition and 
performance of our Nation's network of rural public 
transportation services.
      The conference report adopts the Senate provision setting 
aside a portion of funding each year for Indian tribes. The 
funds set aside for Indian tribes are not meant to replace or 
reduce funds that Indian tribes receive from states through the 
Section 5311 program.
      A new formula tier based on land area is established to 
address the needs of low-density states; twenty percent of 
Section 5311 funds are distributed through this tier. The 
remaining 80 percent of funds are to be allocated using the 
existing formula.
      The conferees agreed that States must consult with 
affected intercity bus service providers before certifying to 
the Secretary that intercity bus service needs of the State are 
being adequately met without making the 15 percent allocation 
of funds to such services.
      The conferees agreed to apply the sliding scale federal 
match under section 120(b) of title 23 United States Code, for 
cases in which a state has a very high percentage of federal 
lands. The federal match for operating assistance is set at \5/
8\ of the match for capital projects. The remainder of the net 
project costs may be provided from a number of different 
sources, including amounts appropriated to or made available to 
a department or agency of the Federal government, other than 
the Department of Transportation (except for Federal Lands 
Highway funds). The conferees believe that using these related 
human service grants funds as a local match for transit 
projects will increase coordination among Federal agencies that 
provide transportation services.
      The conference report adopts the Senate provision 
codifying current practice by requiring the Secretary of Labor 
to use a Special Warranty to comply with the requirements of 
Section 5333(b).

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

House Bill
            Sec. 3013.
      Currently, section 5312 of title 49, United States Code 
does not address deployment of emerging technologies, and 
inappropriately includes training provisions. As amended, 
section 5312 would authorize research, development, 
demonstration, and deployment projects, and would move the 
training provisions in subsections (b) and (c) to section 5322 
(Human Resource Program). Under this subsection, the terms 
``other transactions'' is included and is used to replace the 
terms ``other agreements'' to provide the Federal government 
with discretion to enter into project agreements under terms 
that would encourage private parties to participate in 
Federally assisted projects.
Senate Bill
            Sec. 6014.
      Currently, Section 5312 does not address deployment of 
emerging technologies, and inappropriately includes training. 
As amended, Section 5312 authorizes public transportation 
service planning, and research, development, demonstration, and 
deployment projects.
      The former University Research and Fellowships programs 
authorized by Subsections (b) and (c) are repealed, as these 
programs have not been funded for many years.
      Throughout the Federal Government, the term `other 
transactions' is used to provide executive branch agencies with 
broad discretion to enter into project agreements under terms 
that would encourage private parties to participate in 
Federally-assisted projects. Since the term `other agreements' 
in Section 5312(b)(2), as redesignated, provides the same 
authority, this section is amended to replace that term with 
`other transactions,' for consistency.
Conference Substitute
      Adopts the Senate language, except the term ``other 
transactions'' is not adopted. Instead, the broader current law 
authority for ``other agreements'' (as utilized under the joint 
partnership program) is extended to all transit research 
programs. The current lawauthority to make grants for 
fellowships is moved to section 5322, as proposed by the House.

            SEC. 3015. TRANSIT COOPERATIVE RESEARCH PROGRAM

House Bill
            Sec. 3014.
      Amendments made to section 5313 of title 49, United 
States Code provide the correct authorization citation for the 
research programs and moves subsection (b) to the state 
planning section under Chapter 52 of title 49.
Senate Bill
            Sec. 6015.
      The Transit Cooperative Research Program remains 
unchanged.
      Amendments to Section 5313 provide the correct funding 
authorization citation. Subsection (b) is stricken and the 
title of Section 5313 is changed to reflect the fact that only 
the Transit Cooperative Research Program is authorized by this 
section.
Conference Substitute
      The Conference adopts the Senate proposal.

          SEC. 3016. NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS

House Bill
            Sec. 3015.
      Section 5314 of title 49, United States Code is amended 
to delete the word ``Planning'' in the heading because the 
focus of the section is on research and to include 
``Technology'' in the heading to reflect the activities carried 
out under this subsection. Other amendments under this 
subsection correct the funding authorization citations and 
eliminate references to the planning sections of the title. The 
Secretary is required to continue to make funds available to 
help public transportation providers comply with the Americans 
With Disabilities Act of 1990. Under this section, the term 
``other transactions'' is included to provide the Federal 
government with discretion to enter into project agreements 
under terms that encourage private parties to participate in 
federally assisted projects. The Industry Technical Panel 
composed of transportation suppliers and others involved in 
technology development is eliminated because the panel is no 
longer needed.
Senate Bill
            Sec. 6016.
      Project Action is continued at current funding levels.
      Operational demonstration contracts are allowed under 
conditions set by the Secretary.
      Section 5314(a)(3) is amended to relieve the compliance 
requirement with Section 5333(b).
      Current Section 5314(a)(4)(B) requires FTA to establish 
an Industry Technical Panel composed of transportation 
suppliers and others involved in technology development. This 
provision is deleted.
      A new Subsection (a)(6) is added to establish a program 
of medical transportation demonstration grants. These grants 
will be focused on improving methods of transportation for 
persons in need of kidney dialysis.
      A new National Technical Assistance Center for Senior 
Transportation would be established in a new Section 5314(c). 
Similar to Project Action, the Center would undertake research, 
provide technical assistance, and make demonstration grants on 
methods to improve transportation for elderly individuals.
      A study is required by Section 5314(d) on how to increase 
the use of alternative fuels in public transportation.
Conference Substitute
      Adopts the House proposal, and changes the term ``other 
transactions'' to ``other agreements''. The Senate's medical 
transportation demonstration grants program, the National 
Technical Assistance Center for Senior Transportation, and the 
alternatives fuel study are adopted.

                 SEC. 3017. NATIONAL TRANSIT INSTITUTE

House Bill
            Sec. 3016.
      Section 5315 of title 49, United States Code is amended 
by striking references to mass transportation because public 
transportation is defined to mean mass transportation under the 
transit program.
Senate Bill
            Sec. 6017.
      The National Transit Institute will be continued at 
Rutgers University.
      Currently, Section 5315(a) requires establishment of the 
National Transit Institute (NTI) at Rutgers University. This 
subsection would continue the Institute at this location for 
the new authorization period. The Committee is concerned about 
the effectiveness of programs at the NTI and directs the 
Federal Transit Administration to exercise careful oversight 
over its operation to assure that the Institute is producing 
benefits commensurate with the investment being made. The 
requirement in Section 5315(b) for the Secretary to delegate 
all authority to NTI to develop and conduct education and 
training programs is deleted.
Conference Substitute
      Adopts the Senate proposal.

        SEC. 3018. JOB ACCESS AND REVERSE COMMUTE FORMULA GRANTS

House Bill
            Sec. 3017.
      This section codifies under 49 U.S.C. 5316 the Job Access 
And Reverse Commute (JARC) program authorized under section 
3037 of the Transportation Equity Act for the 21st Century. The 
program was established to assist welfare recipients and low-
income individuals in getting to and from jobs.
      The program establishes a formula for JARC funds that 
apportions 60 percent of the funds to designated recipients in 
urbanized areas with a population of 200,000 or more in a ratio 
reflecting the number of eligible low-income and welfare 
recipients in each urbanized area with a population of 200,000 
or more; 20 percent of the funds are apportioned among the 
states in a ratio reflecting the number of eligible low-income 
and welfare recipients in urbanized areas with populations of 
less than 200,000 in each state; and 20 percent of the funds 
are apportioned among states in a ratio reflecting the number 
of low-income individuals and welfare recipients in other than 
urbanized areas in each state.
      The funds must be used for eligible projects in the 
designated areas, except funds made available in urbanized 
areas with populations less than 200,000 and nonurbanized areas 
may be transferred for projects anywhere in the state if the 
state has established a statewide program for meeting the 
objectives of this section and the Governor of the state 
certifies that all of the objectives of this section are being 
met in the specific area. The recipient of JARC funds in an 
urbanized area with a population of 200,000 or more mustconduct 
a competitive process for an areawide solicitation for applications for 
grants to the recipients and subrecipients. Statewide solicitations 
must be conducted in urbanized areas of less than 200,000 and in 
nonurbanized areas for applications for grants to the recipients and 
subrecipients. All grants shall be awarded on a competitive basis.
      A JARC grant is subject to section 5307 formula grant 
requirements and a recipient of a grant must certify to the 
Secretary that allocations of the grant to subrecipients are 
distributed on a fair and equitable basis. The Federal share 
for capital projects may not exceed 80 percent of the net 
capital cost and for operating assistance the Federal share may 
not exceed 50 percent of the net operating costs. The non-
Federal share may be provided from a variety of sources, 
including other Federal funds (other than from the Department 
of Transportation). Funds made available through the Social 
Security Act may also be used for the remainder of the cost of 
the project.
      The Comptroller General is required to conduct a study to 
evaluate the JARC grant program and transmit the results to the 
Congress. The study must begin within one year after the 
enactment of the Federal Transportation Act of 2005, and every 
two years thereafter. Not later than three years after the date 
of enactment of this section, the Secretary must conduct a 
study to evaluate the effectiveness of recipients making grants 
to subrecipients and transmit the report to Congress.
Senate Bill
            Sec. 6038.
      The JARC program continues as a competitive discretionary 
program. The coordination requirements are amended to conform 
to the changes made in Sections 5307, 5310, and 5311. Section 
3037(b)(2) is amended to clarify that funds can be used for the 
provision of service as well as the development of service.
      Section 3037(b) is amended to expand the definition of 
`eligible low-income individual' to allow States the 
flexibility to use JARC funds to assist the same individuals as 
assisted under the State-administered Temporary Assistance to 
Needy Families program (TANF).
      The Senate requires projects to be drawn from a human 
service transportation coordination plan. Section 3037(j) is 
amended to change the terms and conditions of JARC grants to 
match the type of recipient. Under current law, all JARC grants 
are subject to the terms and conditions of Section 5307, 
including those to recipients in other than urbanized areas, or 
recipients who are private non-profit organizations. This 
represents a significant burden to these recipients, since the 
requirements are tailored to public agencies in urbanized 
areas.
Conference Substitute
      Adopts the House proposal, establishing the job access 
and reverse commute grants program as a formula program, rather 
than a competitive discretionary grants program. Current law 
labor protections are retained. The conferees are aware that 
the Federal Transit Administration has recognized the 
challenges of providing public transportation services to 
individuals transitioning from welfare to work, particularly in 
rural areas. The conferees expect the FTA to continue its 
practice of providing maximum flexibility to job access 
projects that are designed to meet the needs of individuals who 
are not effectively served by public transportation, consistent 
with the use of funds described in the Federal Register, Volume 
67 (April 8, 2002).

                     SEC. 3019. NEW FREEDOM PROGRAM

House Bill
            Sec. 3018.
      This section authorizes a new program requested by the 
Administration to address the transportation needs of persons 
with disabilities at all income levels. The New Freedom Program 
is codified as section 5317 of title 49, United States Code, a 
section that is repealed under current law. Under the New 
Freedom Program, the Secretary would make grants to a recipient 
for new transportation services and public transportation 
alternatives beyond the Americans With Disabilities Act of 1990 
(ADA) to assist individuals with disabilities with 
transportation needs.
      With the passage of the ADA, it has become a civil rights 
violation to deny access to persons with disabilities to public 
transportation. The New Freedom formula grant program was 
proposed by the administration and has been included in this 
legislation to provide additional tools to overcome existing 
barriers facing Americans with disabilities seeking integration 
into the work force and full participation in society. Lack of 
adequate transportation is a primary barrier to work for people 
with disabilities. The 2000 Census showed that only 60 percent 
of people between the ages of 16 and 64 with disabilities are 
employed. The New Freedom formula grant program will expand the 
transportation mobility options available to persons with 
disabilities beyond the requirements of the ADA. Examples of 
projects and activities that might be funded under the program 
include, but are not limited to:
       Purchasing vehicles and supporting accessible 
taxi, ride-sharing, and vanpooling programs.
       Providing paratransit services beyond minimum 
requirements (\3/4\ mile to either side of a fixed route), 
including for routes that run seasonally.
       Making accessibility improvements to transit and 
intermodal stations not designated as key stations.
       Supporting voucher programs for transportation 
services offered by human service providers.
       Supporting volunteer driver and aide programs.
       Supporting mobility management and coordination 
programs among public transportation providers and other human 
service agencies providing transportation.
      A state may use up to 10 percent of the amount it 
receives under this section to administer, plan, and provide 
technical assistance. Funds would be apportioned based on a 
formula that apportions 60 percent of the funds to designated 
recipients in urbanized areas with a population of 200,000 or 
more in a ratio reflecting the number of individuals with 
disabilities in each such urbanized area; 20 percent of the 
funds are apportioned among the states in a ratio reflecting 
the number of individuals with disabilities in urbanized areas 
with a population of less than 200,000; and 20 percent of the 
funds are apportioned among the states in a ratio reflecting 
the number of individuals with disabilities in non-urbanized 
areas in each state.
      The Secretary requires a recipient of a grant to 
coordinate the New Freedom program activities with other 
related program activities of other Federal agencies. Also a 
recipient that transfers funds to the urbanized area formula 
grant program must certify that the project for which funds are 
requested had been coordinated with nonprofit providers of 
services. Beginning in fiscal year 2007, a recipient will also 
be required to certify that projects selected were derived from 
a locally developed, coordinated public transit-human services 
transportation plan and that the plan was developed through a 
process that involved individuals of the public, private, and 
nonprofit transportation and human services providers.
      The Federal share for the net project capital cost of a 
project may be up to 80 percent, and not more than 50 percent 
of the net operating cost of a project.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      Adopts the House proposal, establishing a new formula 
grants program that will provide funds for new transportation 
services and public transportation alternatives beyond the 
Americans With Disabilities Act of 1990 (ADA) to assist 
individuals with disabilities with transportation needs. 
Section 5333 labor protections are not extended in this new 
program.

                    SEC. 3020. BUS TESTING FACILITY

House Bill
            Sec. 3019.
      This section amends section 5318 of title 49, United 
States Code, to delete the requirement for the Secretary to 
establish one bus testing facility because the facility has 
already been established in Altoona, Pennsylvania. The 
Secretary is required to maintain the facility. The provisions 
under section 5318 that establishes a revolving loan fund for 
expenses related to operating and maintaining the facility are 
deleted because the bus testing facility relies on state 
resources to pay for those costs, and has never requested a 
loan. The provision concerning the acquisition of new bus 
models is moved to this section from section 5323(c) for 
clarity.
Senate Bill
            Sec. 6018.
      Special testing requirements for `New Model' buses are 
continued.
      Technical changes are made in the requirements for the 
testing of new model buses.
Conference Substitute
      Adopts the Senate provision, maintaining the current law 
funding and requirements of the bus testing facility.

    SEC. 3021. ALTERNATIVE TRANSPORTATION IN PARKS AND PUBLIC LANDS

House Bill
            Sec. 3021.
      This section establishes a new program to provide for 
public transportation in units of the National Park System, to 
be administered by the Secretary of Transportation in 
consultation with the Secretary of the Interior. The definition 
of public transportation for the pilot program means general or 
special transportation to the public by a conveyance that is 
publicly or privately owned. The definition does not include 
school bus or charter transportation, but does include 
sightseeing transportation. Within 90 days after the enactment 
of this section, the Secretary of Transportation and the 
Secretary of the Interior must enter into a memorandum of 
understanding (MOU) to establish a transit in the parks pilot 
program to encourage and to promote the development of 
transportation systems to improve visitor mobility and 
enjoyment, reduce pollution and congestion, and enhance 
resource protection through the use of public transportation.
      The Secretary of Transportation will administer the pilot 
program in consultation with the Secretary of the Interior. The 
MOU entered into between the Secretaries must be consistent 
with the planning processes required under Chapter 52 of title 
49 and include descriptions of programs and activities eligible 
for assistance under the pilot program. The Secretary of the 
Interior may carry out eligible transportation projects as 
permitted under the interagency agreements. The Government's 
share for any capital project or activity carried out under the 
pilot program is 100 percent of the net project costs. 
Operating assistance grants may not exceed 50 percent of the 
net operating costs of the project.
Senate Bill
            Sec. 6040.
      This section funds, for the first time, a program to 
provide funding for public transportation in National Parks and 
public lands at a level of $25 million per year. The 
Departments of Transportation and Interior will work 
cooperatively to develop and select capital projects.
      Under this program, the Departments of Transportation and 
Interior will work cooperatively to select capital projects for 
funding within and in the vicinity of sites in the National 
Park System, the National Wildlife Refuges, Federal 
recreational areas, and other public lands, including National 
Forest System lands. This program will help the parks make 
investments in traditional public transportation, such as 
shuttle buses or trolleys, or other types of public 
transportation appropriate to a park setting, such as 
waterborne transportation or bicycle and pedestrian facilities.
Conference Substitute
      The Conference adopts the Senate proposal, with 
modifications to make National Forest System lands explicitly 
eligible and to add bicycle and pedestrian projects to the 
definition of alternative transportation. In addition, language 
was added to ensure that projects carried out under this 
program are consistent with other transportation policies of 
the Department of the Interior and other federal land 
management agencies. Section 5333 labor protections are not 
extended in this new program.

                  SEC. 3022. HUMAN RESOURCES PROGRAMS

House Bill
            Sec. 3022.
      Sections 5312(b) and (c) regarding grants to higher 
learning institutions and fellowships would be moved to 
sections 5322(b) and (c) to better fit the organization of the 
revised section 5312 of title 49, United States Code.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts House language that allows the 
Secretary to award fellowship grants.

              SEC. 3023. GENERAL PROVISIONS ON ASSISTANCE

House Bill
            Sec. 3023.
      Amendments are made to section 5323 of title 49, United 
States Code in this section.
      Subsection 3023(c) regarding conditions on charter bus 
transportation service amends section 5323(d) by striking the 
existing law subsection (d)(2) regarding violations of 
agreements and inserting new language which directs the 
Secretary to investigate all complaints about violations of the 
charter service agreement and decide whether a violation has 
occurred; if a violation has occurred, to correct the 
violation; and, if a pattern of violations is found, to bar the 
recipient from receiving funds in an amount the Secretary 
considers appropriate. Under existing law, the Secretary did 
not have the flexibility to adjust the amount withheld--the 
recipient would be barred from receiving further Federal 
assistance. This overly-broad authority was never used, whereas 
a more flexible authority to penalize charter violators will 
encourage a more realistic and responsive approach to charter 
enforcement by the FTA. The Committee is aware that both public 
transportation providers and private charter bus providers have 
expressed strong concerns about the 1987 FTA rule enforcing 
section 5323(d) regarding charter bus service. The Committee 
directs the FTA to initiate a rulemaking seeking public comment 
on the regulations implementing section 5323(d), and to 
consider certain issues. Consideration of any changes to the 
current regulation shall not disturb the current law provisions 
under section 5323(f) regarding school bus transportation.
      A new subsection is included that makes revenue bond 
proceeds eligible for use as local match for federal transit 
grants and that authorizes recipients to establish debt service 
reserves using up to 10 percent of their federal grant funds. 
The authority to use bond proceeds as local match was 
established in section 3011 of the Transportation Equity Act 
for the 21st Century (TEA 21), and FTA has reported that this 
authority has been beneficial to transit operators. This 
subsection also permits the Secretary to reimburse recipients 
for deposits in a debt service reserve established for the 
purpose of financing transit capital projects, pursuant to 
section 5302(a)(1)(K). Such reimbursements are capped at 10 
percent of the recipient's annual apportionment from section 
5307 urbanized area formula grants.
      Subsection 5323(f) regarding school bus transportation is 
amended to allow the Federal Transit Administration to assess 
fines and withhold grant funds if public transportation 
agencies violate the narrowly defined conditions under which 
public transportation providers can provide school bus 
transportation.
      Section 5323(j) regarding Buy America is amended by 
adding a new requirement that FTA provide a detailed written 
justification when the agency issues a public interest waiver. 
Additionally, a new provision is added stating that parties 
adversely affected by FTA action on Buy America decisions may 
seek judicial review under the Administrative Procedures Act. 
The general regulatory waivers for Chrysler 15-passenger vans 
and wagons from the requirement that public transportation 
vehicles be assembled in the United States are repealed. 
Section 3023(g)(5) adds a freestanding legislative provision 
requiring the Secretary to issue a final rule within 180 days 
of enactment on FTA's implementation of the Buy America 
requirements. Specifically, the agency is directed to clarify 
that any waiver issued for microcomputer equipment under the 
general waiver in subsection (d) of Appendix A of section 661.7 
of title 49, Code of Federal Regulations, be applied solely to 
devices that are used to process or store data, and not extend 
to products containing a microprocessor, computer, or 
microcomputer. In directing the Secretary to issue new 
regulations regarding microprocessors, computers, or 
microcomputers, there is no intent to change the existing 
regulatory treatment of software or of microcomputer equipment.
      Under current law, section 5323(l) requires state-managed 
transit grant programs be subject to State transportation 
planning requirements in section 135 of title 23, United States 
Code. Since all transportation planning programs are now 
addressed under chapter 52 of title 49, U.S.C., section 3042 
contains a new provision amending section 5323(l) that broadens 
the applicability of section 1001 of title 18, prohibiting 
fraudulent statements to the Government, to all certificates, 
submissions, or statements provided to DOT under Chapter 53 of 
Title 49. This language is intended to provide a direct tie 
between 18 U.S.C. 1001 and the punitive recourse of ending 
financial assistance provided for in the second sentence of new 
subsection 5323(l). This language is not intended to, and 
should not be construed to, exclude by implication from the 
application of 18 U.S.C. 1001 any other matter to which such 
section would otherwise apply.
Senate Bill
            Sec. 6022.
      Environmental and public hearing requirements are revised 
to conform with the applicable cross-cutting statutes.
      The provisions of Section 5323(b) are edited to mesh the 
statutory requirements of Federal transit law more closely with 
current practice under the National Environmental Policy Act 
(NEPA).
      Section 5323(b) is amended to provide the same 
consideration to comments submitted by mail or electronic 
means, as the consideration given to comments transcribed at a 
hearing. In addition, non-English speaking persons or hearing-
impaired persons are provided the opportunity to comment 
through special arrangements.
      This section eliminates the two-step process for 
announcing a hearing. Under the current process, the applicant 
announces the opportunity for a hearing and then waits for a 
response. The Senate requires that a hearing be held whenever 
the project affects significant social, economic, or 
environmental interests in the community, regardless of whether 
one has been requested.
      Special terms and conditions for technology deployment 
projects will be allowed. A new Section 5323(e) allows grants 
for new technology, including the integration of innovative 
techniques, subject to the requirements of Section 5309, but 
only to the extent the Secretary deems appropriate. Revised 
Subsection (c) strengthens and leverages private sector 
participation by permitting the Secretary to establish 
appropriate terms and conditions for projects involving the 
integration of new innovative or improved products, techniques, 
or methods.
      Section 3011(a) of TEA-21 allows a recipient of an 
urbanized area formula grant under Section 5307 or a major 
capital investment grant under Section 5309 to use proceeds 
from the issuance of revenue bonds as a local match. This 
provision is codified in Section 5323(f)(1).
      Debt Service Reserve Funds are made an eligible project 
activity. Under Section 5323(f)(2), the Secretary could allow a 
recipient to use Section 5307 or 5309 dollars to reimburse it 
for deposits made to the debt service reserve. Because Federal 
transit funds are typically viewed as higher creditworthy 
revenues, transit bond ratings would be strengthened and 
interest costs reduced.
      Public transportation agencies can receive land which 
becomes available as a result of base closures. Subsection (h) 
is revised to provide for the transfer of lands or interests in 
lands owned by the United States. The Department of Defense 
regulations (32 CFR Parts 90 and 91) provide for the 
disposition of surplus land resulting from the Defense Base 
Closure and Realignment Act to be transferred free to 
`grantees' that have Federal sponsors with Federal land 
transfer statutes.
      Section 5323(m) would be amended to eliminate pre-award 
and post-delivery audit requirements for private non-profit 
organizations and grantees serving urbanized areas with fewer 
than one million people. All manufacturers and suppliers would 
have to continue to certify compliance with Buy America during 
the bidding process, and they would remain bound by their 
original certification. The vast majority of vehicles purchased 
will still undergo the audits.
Conference Substitute
      Adopts the Senate proposal regarding interests in 
property and notice and public hearings. The current law 
provision under section 5310 states that public transportation 
operators are not required to charge elderly individuals and 
individuals with disabilities a fare is expanded to apply to 
all programs under this chapter.
      Adopts the House proposal regarding conditions on charter 
bus transportation service. The conferees are aware that both 
public transportation providers and private charter bus 
providers have expressed strong concerns about the 1987 FTA 
rule enforcing section 5323(d) regarding charter bus service. 
The conferees direct the FTA to initiate a negotiated 
rulemaking seeking public comment on the regulations 
implementing section 5323(d), and to consider the issues listed 
below:
      1. Are there potential limited conditions under which 
public transit agencies can provide community-based charter 
services directly to local governments and private non-profit 
agencies that would not otherwise be served in a cost-effective 
manner by private operators?
      2. How can the administration and enforcement of charter 
bus provisions be better communicated to the public, including 
use of internet technology?
      3. How can the enforcement of violations of the charter 
bus regulations be improved?
      4. How can the charter complaint and administrative 
appeals process be improved?
      Adopts the House proposal regarding the new eligibility 
to use bond proceeds as local matching funds, including a 
maintenance of effort clause. New authority for section 5307 
funds to be deposited in a debt service reserve is established 
under a pilot program for 10 eligible recipients, and is 
established generally for section 5309 funds and a report is 
directed to be submitted outlining the status and effectiveness 
of the debt service reserve pilot program.
      The House and Senate both carried identical provisions 
regarding more effective enforcement of schoolbus 
transportation violations. This language is adopted. The 
general provisions regarding a 90 percent government share of 
costs for Americans with Disabilities Act and Clean Air Act 
related equipment is expanded to incorporate facilities.
      Adopts the House language regarding updated Buy America 
regulations. In the final rule, the FTA is directed to define 
the term ``end product'' for purposes of part 661 of title 49, 
CFR, and to provide that such definition include a list of 
representative items that are subject to the Buy America 
requirements, similar to the list of such items under the 
rolling stock procurements regulations. The purpose of 
developing such a list and more clearly defining the term end 
product is to ensure that major system procurements are not 
used to circumvent the Buy America requirements.
      Adopts the Senate language regarding relationship to 
other laws, which broadens the applicability of section 1001 of 
title 18, prohibiting fraudulent statements to the Government, 
to all certificates, submissions, or statements provided to DOT 
under Chapter 53 of Title 49.
      Amends the Senate proposal to waive preaward and 
postdelivery audits for rolling stock to allow procurements of 
20 or fewer vehicles being purchased in rural and small 
urbanized areas under 200,000 in population to be subject to an 
expedited postdelivery process that does away with the 
requirement to have an on-site inspector at manufacturers' 
facilities.
      Adopts the House proposal to allow incidental use of 
alternative fueling facilities by nontransit users as long as 
the incidental use does not interfere with the recipient's 
public transportation operations, and all costs are fully 
recaptured by the recipient. Revenues under this authority can 
be used for planning, capital or operating expenses.

           SEC. 3024. SPECIAL PROVISIONS FOR CAPITAL PROJECTS

House Bill
            Sec. 3024.
      This section makes very minor amendments to section 5324 
of title 49, United States Code and changes the title of the 
section from ``Limitations on discretionary and special needs 
grants and loans'' to ``Special provisions for capital 
projects,'' which is more descriptive of the provisions 
contained therein regarding relocation program requirements and 
consideration of economic, social, and environmental interests.
Senate Bill
            Sec. 6023.
      Environmental and relocation assistance requirements are 
revised to conform to applicable cross-cutting statutes (NEPA 
and Uniform Relocation Assistance Act).
      Section 5324(a) is amended to reference the relevant 
sections of the Uniform Relocation Assistance and Real Property 
Acquisition Policies Act (`the Act'), 42 U.S.C. 4601 et seq., 
directly, rather than referencing only two of the numerous 
conditions contained in the Act.
      Section 5324(b) continues to allow protective and 
hardship acquisitions as defined in 23 CFR 771.117, but it also 
allows advance acquisition where the strict requirements 
associated with a protective acquisition are not met. This 
provision allows for the acquisition when market forces 
dictate, and thereby avoids multiple transactions on the same 
property and the associated escalation in cost. A strictly 
limited number of such advance acquisitions is allowed without 
prejudice to the consideration of alternative locations or 
alternative projects.
      Section 5324(c) addresses FTA's current practice of 
allowing the acquisition of pre-existing railroad right of way 
(ROW) in advance of any specific project decisions on how the 
ROW will be used. Any changes in the use of the railroad ROW 
are subject to appropriate environmental review prior to the 
change.
      Section 5324(d) (formerly Section 5324(b)) meshes the 
statutory requirements of Federal transit law more closely with 
current FTA practice under NEPA, and 49 U.S.C. 303 (commonly 
called `Section 4(f)'), and other environmental laws. Reference 
to the Secretaries of Agriculture, Health and Human Services, 
and Housing and Urban Development are removed since these 
agencies rarely have any interest in transit projects.
      The amendment deletes Council on Environmental Quality 
(CEQ) and substitutes the Administrator of EPA. The Council on 
Environmental Quality has delegated its routine project review 
responsibilities to the Environmental Protection Agency (EPA). 
Section 5324(d) would no longer single out the hearing 
transcript for greater attention than other valid forms of 
public comment on a project.
Conference Substitute
      The conference report includes a rewritten provision that 
applies the requirements of the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 to all 
financial assistance for capital projects under this chapter. 
Adopts House language regarding consideration of economic, 
social, and environmental interests. Adopts the Senate proposal 
to allow acquisition of railroad right-of-way before the 
completion of environmental reviews, if the acquisition is 
otherwise permitted under Federal law. A railroad corridor 
purchased in advance under this authority may not be developed 
before the project has completed all required environmental 
reviews.

                    SEC. 3025. CONTRACT REQUIREMENTS

House Bill
            Sec. 3025.
      This section consolidates sections 5325 ``Contract 
Requirements'' and 5326 ``Special Procurements'' of title 49, 
United States Code, since the provisions of section 5326 fall 
within the scope of conditions set on contracts that utilize 
federal funds provided under chapter 53 of title 49, United 
States Code. Under the revised subsection 5325(a) and (b), 
recipients of such funds are expressly required to conduct 
procurements using full and open competition and to use 
standard architectural, engineering, and design contract award 
procedures. A new subsection 5325(d) is added that is identical 
to existing law section 5326(a), except that the term 
``turnkey'' is replaced with the more commonly used term 
``design-build'', and references to design-build 
``demonstration projects'' are deleted, since design-build 
contracting has matured beyond the demonstration phase. In 
addition, design-build contracting does not necessarily result 
in lower project costs or new technologies and, as a result, 
this concept as expressed under section 5326(a)(2) in current 
law is removed.
Senate Bill
            Sec. 6024.
      Current provisions regarding procurement and contracts 
are consolidated in a single section.
      Grantees must refer to the Contractor Performance 
Assessment Report when selecting contractors to do work on 
projects seeking FFGAs.
      Competition in all procurements is explicitly established 
as the presumptive standard. Existing Section 5307 requires the 
use of competitive procurement as defined or approved by the 
Secretary in carrying out procurement under that section. 
Section 5325(a) is amended to expressly require the use of 
competitive procurement procedures for any procurement carried 
out under Chapter 53. The revised language in redesignated 
Section 5325(b)--referred to as `The Brooks Act'--clarifies 
that program management is limited to architectural, 
engineering, and design contracts. Also, the reference to 23 
U.S.C. 112(b)(2)(C) through (F), which deals with performance 
and audit standards and indirect cost rates, is removed. 
Instead, Subsection (b) is revised specifically to include 
these provisions.
      TEA-21 allowed for turnkey system projects, also known as 
design-build contracting, in Federally funded public 
transportation projects, including demonstration projects. 
Section 5325(d) (existing Section 5326(a)), replaces the term 
`turnkey' with the more commonly used term `design-build.'
      Currently, FTA and the Comptroller General can inspect 
contract records for capital projects receiving Federal transit 
assistance, but only in cases of `noncompetitive bidding.' New 
Subsection 5325(g), `Examination of the Records,' strengthens 
oversight by allowing FTA or the Comptroller General to inspect 
all contract documents. The `grant prohibition' provision, 
dealing with contract requirements, was erroneously included 
under Section 5323, `General Provisions On Assistance,' and is 
relocated under Section 5325(h).
      A new provision is added to Section 5325(i) to strengthen 
the requirements that contractors to public transportation 
agencies must have adequate technical and financial capacity to 
carry out a proposed contract. This elevates already existing 
FTA and OMB requirements on third-party contracting to a 
statutory requirement.
Conference Substitute
      Adopts the House language regarding architectural, 
engineering, and design contracts, including the provision that 
allows State qualifications-based requirements for contracting 
architectural, engineering, and design services to be employed 
in lieu of Federal contracting procedures if an equivalent 
State qualifications-based requirement is established before 
the date of enactment of the Federal Public Transportation Act 
of 2005.
      Adopts the House proposal regarding design-build projects 
and the House language regarding multiyear rolling stock. Both 
the House and Senate bills included a provision stating that no 
State law requiring buses to be purchased through in-State 
dealers shall apply to vehicles purchased with a grant under 
this chapter. This provision is adopted. The Senate's language 
strengthening the requirements that contractors to public 
transportation agencies have adequate technical and financial 
capacity to carry out a proposed contract is also adopted.

           SEC. 3026. PROJECT MANAGEMENT OVERSIGHT AND REVIEW

House Bill

            Sec. 3026.
      This section amends section 5327 of title 49, United 
States Code regarding project management oversight activities. 
The Secretary is authorized to use .5 percent of section 5311 
funds, .75 percent of section 5307 funds, and 1 percent of 
section 5309 funds to make contracts for oversight of major 
transit construction projects, and to review and audit 
recipients' compliance with federal requirements and provide 
technical assistance to correct deficiencies identified in such 
reviews and audits. This is an increase in the amount set aside 
for such activities above levels set under current law, which 
provides for .5 percent of section 5307 and section 5311 funds 
and up to .75 percent for section 5309 funds. Comprehensive 
agency oversight, compliance review, and technical assistance 
are necessary for all major grant programs, and particularly 
important for major capital grants such as new starts and rail 
modernization.

Senate Bill

            Sec. 6025.
      The takedown for oversight is increased to 1 percent in 
all programs.
      Given the new security concerns--and in keeping with 
actual practice in the field--Section 5327(a) is revised to 
require that a project management oversight (PMO) plan include 
`safety and security management.'
      The section also provides new authority for the use of 
oversight funds to conduct analyses which cut across multiple 
projects. At present, oversight funds may be used only to 
review each project in isolation. Cross-cutting analyses could 
help identify major problems which need attention and could 
help develop best-practice methods which could be gleaned from 
a review of a set of similar projects.

Conference Substitute

      Adds safety and security to PMO plans. Authorizes the 
Secretary to use 0.5% of Section 5305 funds, 0.75% of 5307 
funds, 1% of 5309 funds, 0.5% of Section 5310 funds, 0.5% of 
Section 5311 funds, and 0.5% of Section 5320 funds to make 
contracts for oversight of major transit construction projects, 
and to review and audit recipients' compliance with federal 
requirements and provide technical assistance to correct 
deficiencies identified in such reviews and audits. This is an 
increase in the amount set aside for such activities above 
levels set under current law, which provides for .5 percent of 
section 5307 and section 5311 funds and up to .75 percent for 
section 5309 funds. Comprehensive agency oversight, compliance 
review, and technical assistance are necessary for all major 
grant programs, and particularly important for major capital 
grants such as new starts and rail modernization.

                       SEC. 3027. PROJECT REVIEW

House Bill

      No Comparable Provision in House Bill

Senate Bill

            Sec. 6026.
      The schedules for FTA review of projects in the New 
Starts process are updated to clarify the relationship to the 
New Starts process and criteria; the advancement of projects is 
not automatic, but rather depends on meeting the requirements 
of that section.
      The concept of Programs of Interrelated Projects is not 
continued.

Conference Substitute

      Adopts the Senate proposal, but retains current law 
provision regarding programs of interrelated projects.

     SEC. 3028. INVESTIGATIONS OF SAFETY HAZARDS AND SECURITY RISKS

House Bill

            Sec. 3027.
      This section amends section 5329 of title 49, United 
States Code regarding the Secretary's authority to investigate 
safety and security risks associated with public transportation 
equipment, facilities, or operations financed under chapter 53 
of title 49, United States Code. The Secretary may withhold any 
amount of a recipient's Federal assistance until a plan to 
eliminate, mitigate, or correct the hazard has been approved 
and carried out.

Senate Bill

            Sec. 6027.
      FTA investigation authority is expanded expressly to 
include security issues. Section 5329 authorizes FTA to 
investigate `safety hazards,' but does not authorize FTA 
expressly to investigate `security' matters. This section is 
amended to promote active cooperation between FTA and its 
grantees on security matters, by clarifying that FTA may assist 
grantees on security matters and investigate security concerns 
without notice of a specific breach of security at a transit 
system.
      The penalty for failure to address issues is modified. 
The existing section also contains an `all or nothing' 
provision that authorizes the Secretary to withhold `further 
financial assistance' upon a transit system's failure to 
correct a safety hazard. Section 5329 allows the Secretary to 
determine the amount of funding to be withheld.
      A new requirement is added for a Memorandum of 
Understanding between the Departments of Transportation and 
Homeland Security specifying the details of how the agencies 
would cooperate on setting national security standards for 
public transportation, would establish funding priorities for 
DHS grants to public transportation agencies, and would 
coordinate with each other and public transportation agencies 
on security matters.

Conference Substitute

      The conference report adopts a modified version of the 
Senate provision. In addition to the original Senate security 
provisions authorizing security and safety investigations and 
penalties, the conference report requires an annex to the 
memorandum of understanding signed by the Departments of 
Transportation and Homeland Security on September 28, 2004 to 
define and clarify the respective transit security roles and 
responsibilities of each Department. The conference report also 
mandates a joint rulemaking outlining the requirements and 
characteristics of any public transportation security grants, 
including funding priorities and eligible expenditures.

                   SEC. 3029. STATE SAFETY OVERSIGHT

House Bill

            Sec. 3028.
      This section amends section 5330 of title 49, United 
States Code by changing the heading from ``Withholding amounts 
for noncompliance with safety requirements'' to reflect the 
more commonly used title of ``State safety oversight.'' Under 
this section, a State is required to establish and carry out a 
safety program plan for rail-based new starts projects. 
Commuter rail systems that operate on the general railway 
system are subject to the safety rules and oversight of the 
Federal Railroad Administration. Amendments to subsection 
5330(a) ensure that safety is considered well before a rail-
based new start project begins revenue service. In subsection 
5330(d), rail-based new start projects that operate in two or 
more States are required to have a unified safety program plan.

Senate Bill

            Sec. 6028.
      Safety oversight is required during the design phase of 
New Starts.
      States can designate a single agency to handle oversight 
of systems serving more than one State.
      Section 5330 is amended to change the heading to 
`Withholding Amounts for Non-Compliance with State Safety 
Oversight Requirements' the better to reflect the requirements 
in this section.
      Amendments to Section 5330 ensure that safety is 
considered well before a rail fixed-guideway system begins 
revenue service, i.e., during the design phase of the project.

Conference Substitute

      Adopts the House proposal.

      SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING

House Bill

            Sec. 3029.
      This section amends section 5331 of title 49, United 
States Code regarding drug and alcohol testing of public 
transportation employees, allowing the Secretary to apply a 
single agency's drug and alcohol testing regime if a particular 
transportation provider is subject to more than one agency's 
rules. Currently, section 5331 authorizes the Secretary to 
exclude from FTA drug and alcohol testing those public 
transportation providers that are adequately covered by the 
Federal Motor Carrier Safety Administration or the Federal 
Railroad Administration testing statutes. The amendment to 
subsection 5331(a) expands the Secretary's authority to exclude 
from FTA testing those public transportation providers that are 
adequately covered under other Federal or Departmental testing, 
such as the U.S. Coast Guard's testing provisions applicable to 
ferryboat employees.

Senate Bill

            Sec. 6030.
      Section 5331 is amended to expand the Secretary's 
authority to exclude from FTA testing requirements, those 
public transportation providers that are adequately covered 
under other Federal or Departmental testing statutes or 
regulations, such as the U.S. Coast Guard's testing provisions 
applicable to ferryboat employees.

Conference Substitute

      The Conference adopts the House version.

              SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS

House Bill

            Sec. 3030.
      This section amends Section 5333 of title 49, United 
States Code making conforming changes to ensure that all 
federal public transportation grant programs are subject to 
fair labor standards and employee protective arrangements.

Senate Bill

            Sec. 6031.
      The time for severance pay and benefits for transit 
workers is reduced to four years to comport with existing rail 
worker protections for Class III railroads. The Senate notes 
that this change does not alter requirements for severance pay 
for workers covered under other laws, such as those governing 
the rights of railroad workers or the collective bargaining 
process.
      The Senate language harmonizes competitive bidding 
requirements under Federal law with Federal labor law governing 
transportation workers. This bill provides that 13(c) 
requirements do not automatically attach to newly solicited 
contracts, or require that an identical workforce or identical 
workplace management rules be maintained under new contracts. 
Carrying over benefits from contractor to contractor was not 
envisioned when Section 13(c) was enacted and as such, this 
restores the original intent of Section 13(c). The bill 
codifies the Department of Labor's decision (commonly referred 
to as the `Las Vegas' decision), which found that a change in 
contractors would not extinguish obligations under prior 
Section 5333(b) arrangements. Thus, this provision is not 
intended to extend, expand, or contract labor protection 
collective bargaining terms and conditions applicable to 
subsequent contracts.
      Grants for purchase of like-kind equipment or facilities 
do not have to be referred by the Department of Labor prior to 
certification. In addition, the Senate language establishes in 
law a Special Warranty now applied by administrative practice 
in the Section 5311 program for other-than-urbanized-areas and 
applies it in the Job Access and Reverse Commute Program.
            Sec. 6031.

Conference Substitute

      The conference report adopts the Senate proposal to 
establish in law a special warranty for Section 5311 programs.
      In addition, the conference report adopts the Senate 
proposal regarding like kind grants with a modification to 
limit the provision to certify without referral to situations 
that do not materially revise or amend an existing assistance 
agreement.
      The Senate bill included changes to 49 U.S.C. 5333(b) 
regarding rights afforded to employees under this section when 
one private contractor replaces its predecessor as a result of 
competitive bidding. The Conferees agree that the so-called 
contractor-to-contractor issues were addressed in the 
Department of Labor's Las Vegas decision dated September 21, 
1994, as clarified by the supplemental ruling dated November 7, 
1994. The Conferees expect that when the Department of Labor 
(DOL) is called upon to resolve such issues in similar bus 
transit situations, the agency shall apply the principles, as 
applied to the facts, set forth in the Department's Las Vegas 
rulings, without otherwise affecting existing protective 
arrangements. This affirmation of existing DOL policy shall not 
serve as a basis for objections under 29 CFR 215.3(d).
      Finally, Section 5333(b) is not applied to the new 
programs created in conference report, Section 5317 (New 
Freedom) and Section 5320 (Alternative Transportation in Parks 
and Public Lands) programs.

                  SEC. 3032. ADMINISTRATIVE PROCEDURES

House Bill

            Sec. 3031.
      This section amends section 5334 of title 49, United 
States Code regarding the Secretary of Transportation and 
Federal Transit Administration's authority to administer 
programs carried out under chapter 53 of title 49, United 
States Code. The Secretary is prohibited from regulating public 
transportation provider's routes, schedules, and rates, except 
in the case of a national or regional emergency. A new 
subsection 5334(c)(5) has been added that requires the FTA to 
subject non-regulatory substantive policy statementsto a 60-day 
public review notice and comment period. Currently, FTA circulars, 
letters, or other policy statements can be issued without the benefit 
of the same public review and comment process that is required under 
the regulatory process. However, such documents often carry the same 
weight and penalties as regulations. An example of this ``unwritten 
rule'' is the $500 million per project limitation FTA has placed on the 
Federal commitment on a full funding grant agreement issued under the 
authority of section 5309. Although such a project cost limitation 
might be a valid policy, it has not been published in a form that 
allows for comment from the affected transit community. The provision 
added in subsection (c)(5) will add transparency to FTA's 
administrative procedures and provide opportunity for public review and 
feedback.
Senate Bill
            Sec. 6032.
      Amends Section 5334(a) to clarify that FTA has explicit 
authority to issue regulations.
      Current Section 5324(c), `Prohibitions Against Regulating 
Operations and Charges,' is moved to Section 5334, 
`Administrative Provisions,' as a new Subsection (b). It is 
appropriate to house this prohibition in the `Administrative 
Provisions' section and make it expressly applicable chapter-
wide, rather than on capital projects only. While it has been 
the practice of FTA to forego any regulation of operations or 
charges with respect to any grant based on legislative history, 
current law is ambiguous. Moving this provision will clarify 
that FTA may not regulate operations or charges, except in 
emergencies. The appropriate Federal role in public 
transportation is to provide financial assistance only, and not 
to regulate operations. Also, this provision is amended to 
specify that the Secretary is prohibited from regulating a 
recipient's routes, schedules, rates, fares, tolls, and 
rentals, just as this provision had specified prior to the 
recodification of the Federal Transit Act into 49 U.S.C. 
Chapter 53 in 1994. In light of the September 11 terrorist 
attacks, this provision is further amended to allow the 
Secretary of Transportation, under direction by the President, 
to regulate the operation of and charges for public 
transportation systems for purposes of national defense or in 
the event of a national or regional emergency.
Conference Substitute
      Adopts the House proposal. The provision regarding 
nonregulatory substantive policy statements is amended to apply 
more narrowly to agency statements that impose a binding 
obligation on recipients of Federal assistance under this 
chapter. Such statements shall be subject to rulemaking 
procedures under the Administrative Procedure Act.

                  SEC. 3033. NATIONAL TRANSIT DATABASE

House Bill
            Sec. 3032.
      This section amends Section 5335 of title 49, United 
States Code by striking subsection (b) regarding a 
transferability report that was completed in 1993. The section 
header is amended from the current law title ``Reports and 
audits'' to ``National transit database'' to reflect the 
revised contents of the section.
Senate Bill
            Sec. 6033.
      Section 5335(b), requiring that the Comptroller General 
submit `transferability reports' to Congress, is removed, as 
the report is no longer needed on a recurring basis. 
Information on the use of flexible funding under Title 23 is 
readily available.
Conference Substitute
      Adopts the Senate provision. Beginning in 2006, the 
national transit database will be funded as a takedown from the 
formula grants programs at $3,500,000 a year.

              SEC. 3034. APPORTIONMENTS OF FORMULA GRANTS

House Bill
            Sec. 3040.
      This section establishes a new set-aside program from the 
section 5307 urbanized area formula grants that provides a 
small bonus grant payment to urbanized areas under 200,000 in 
population that operate at a level of service above the 
industry average level of service in similarly-sized urbanized 
areas in one or more of six performance categories: passenger 
miles traveled per vehicle revenue mile, passenger miles 
traveled per vehicle revenue hour, vehicle revenue miles per 
capita, vehicle revenue hours per capita, passenger miles 
traveled per capita, and passengers per capita. These 
performance categories and a methodology established for 
providing bonus grants were established in the September 2000 
FTA report to Congress called ``The Urbanized Area Formula 
Program and the Needs of Small Transit Intensive Cities.''
Senate Bill
            Sec. 6034.
      For basic apportionments, the existing urbanized area 
formula continues as in current law.
      The `Transit Intensive Cities' tier would allocate funds 
to small urbanized areas with transit service levels 
(represented by revenue vehicle hours) per capita greater than 
the per capita service levels in areas with population of 
200,000 to 1,000,000 on the basis of transit service levels. 
Funds from this tier are available for capital purposes only.
      A provision is added to require a study of incentives 
which might be added to the urbanized area and other-than-
urbanized area formula programs. In light of numerous questions 
about how such a program as proposed by the Administration 
would work, the factors to be considered, and the manner in 
which grants could be used, the Senate instead calls for a 
study of the issues involved in establishing such a program. 
The report should address the possibility of rewarding 
improvements in ridership (as was proposed by the 
Administration) as well as improvements in efficiency (cost per 
unit of service provided), effectiveness (service utilization 
per unit of service provided), and cost-effectiveness (cost per 
unit of service utilization).
Conference Substitute
      Adopts the House version of the ``Small Transit Intensive 
Cities'' formula program, with annual funding at one percent of 
the total amount made available for formula programs. Adopts 
the Senate's incentives in formula programs study and provides 
that 60 percent of the directional route mileage of the Alaska 
Railroad system be attributable to that system.

       SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY FACTORS

House Bill
            Sec. 3033.
      This section amends Section 5337 of title 49, United 
States Code regarding apportionment formulas for the fixed 
guideway modernization program. The provision regarding route 
segments to be included in the apportionment formula is amended 
to delete the ``1997 Standard'' that held eligible rail system 
mileage to the number of miles a system reported in fiscal year 
1997.
Senate Bill
      No similar provision.
Conference Substitute
      Does not adopt the House elimination of the 1997 
Standard. Makes an adjustment to a small urbanized area with a 
fixed guideway system to treat the system as a large urbanized 
area for purposes of apportionments based on fixed guideway 
factors.

                       SEC. 3036. AUTHORIZATIONS

House Bill
            Sec. 3034.
      This section amends Section 5338 of title 49, United 
States Code, making FTA program funds available on an annual 
basis for the fiscal year 2004-2009 authorization period. The 
major FTA programs are Formula Grants, Capital Investment 
Grants, Planning, Research, and Administrative Expenses. A new 
organizational structure is adopted to separate the fiscal year 
2004 funding, which splits every account's funding between the 
Mass Transit Account and the general fund at an 80:20 ratio 
(current law structure), from funding for fiscal years 2005-
2009, which is either 100 percent trust funded or 100 percent 
general funded. The programs that will be 100 percent trust 
funded in fiscal years 2005-2009 are Formula Grants and 
Planning, as well as the bus and bus related facilities grants 
and the fixed guideway modernization grants under Capital 
Investment Grants. The programs that will be 100 percent 
general funded in fiscal years 2005-2009 are Research, 
Administration, and the new starts and small starts programs 
under Capital Investment Grants. This restructuring of the 
program financing will prevent an accounting problem with the 
spending rate of the Mass Transit Account. By not split-funding 
any programs, each program will outlay at its actual spending 
rate.
      The Formula Grants programs comprise 54 percent of the 
total transit programs. There are a number of allocations made 
from the total formula grants funding for: new bus model 
testing, grants to the Alaska Railroad, over-the-road bus 
accessibility equipment costs, the new Transit in the Parks 
pilot program, the transit portion of funding for the non-
motorized transportation pilot program authorized in section 
1121(b) of the bill, the New Freedom program, the Job Access 
and Reverse Commute grant program, and the Clean Fuels grant 
program. After these allocations of funds have been made, the 
remainder of the aggregate amount is allocated in the following 
percentages: 2.5 percent to the elderly and disabled formula 
grant program, 8 percent to the nonurbanized formula grant 
program, and 89.5 percent to the urbanized area formula grant 
program. The percentage shares for the elderly and disabled 
program grants and for the nonurbanized formula grants have 
been increased over such shares under current law.
      The Capital Investment Grants programs comprise 43 
percent of the total transit programs. The four Capital 
Investment Grant programs (fixed guideway modernization, new 
starts, small starts, and bus and bus-related facilities) 
receive funding allocations under section 5309(m).
      Planning grant fund apportionments to metropolitan areas 
and states are provided under subsection 5338(c). For fiscal 
year 2004, the funding is split-funded and for fiscal years 
2005-2009, the funding is derived from the Mass Transit 
Account. The percentage of planning funds allocated to 
metropolitan areas is 82.72 percent and 17.28 percent is 
apportioned to states for state planning activities, the same 
percentages as provided under current law.
      The Research program is funded under subsection 5338(d). 
For fiscal year 2004, the funding is split-funded, and for 
fiscal years 2005-2009, the funding is authorized to be 
appropriated from the general fund. There are a number of 
allocations made from the total formula grants funding for: the 
transit cooperative research program, management of the 
national transit database, the National Transit Institute 
transit training facility at Rutgers University, and Project 
Action, a national technical assistance program for providers 
of transportation services to the disabled. The remainder of 
funds under this subsection are available for the national 
research and technology programs. In subsection 5338(e), 
funding is authorized for university transportation research. 
This complements funding made available for these programs 
under the Federal-aid Highway program in Title V of the bill.
      Funding for administration of the Federal transit 
programs is provided under subsection 5338(f). For fiscal year 
2004, the funding is split-funded, and for fiscal years 2005-
2009, the funding is authorized to be appropriated from the 
general fund.
Senate Bill
            Sec. 6036.
      Section 5338 authorizes amounts from the General Fund, 
and makes available amounts from the Mass Transit Account of 
the Highway Trust Fund, to carry out Federal public 
transportation programs in Fiscal Years 2005 through 2009. 
Funds from the Mass Transit Account are provided as `contract 
authority.'
      Section 5338(a), provides funds for all programs for 
Fiscal Year 2005 in accordance with the Consolidated 
Appropriations Act.
      Section 5338(b) Formula Grants and Research, provides 
funds for Fiscal Years 2006 through 2009 from the Mass Transit 
Account to carry out Sections 5305, 5307, 5308, 5309 (bus and 
fixed-guideway modernization), 5310-5318, 5322, 5335 and 5505 
of Title 49, and Sections 3037 and 3038 of Pub. L. 105-178. It 
also provides for a takedown for grants to the Alaska Railroad 
for improvements to its passenger operations under Section 
5307.
      Section 5338(c), Major Capital Investment Program Grants, 
authorizes appropriations from the General Fund in Fiscal Years 
2006 through 2009 to carry out Section 5309 (New Starts). 
Section 5338(c) authorizes funds from the Trust Fund for 
administrative expenses. Amounts available under Subsections 
(a) and (b) remain available until expended and grants financed 
from amounts derived from the Mass Transit Account or through 
advance appropriations under those subsections would be 
contract authority.
      Grants for both planning programs are mainstreamed into 
49 U.S.C. 5308. Funding for the planning programs are 
authorized as a takedown from the Urbanized Area Public 
Transportation Formula Grants account.
      The bill provides that 1.75 percent of the funds are 
available for planning in Fiscal Years 2006 through 2009. This 
percentage represents a minimal increase over previous Fiscal 
Years. The amount proposed in fiscal year 2005 takes into 
account that this fiscal year will be the first year of 
reauthorization and is based on the Consolidated Appropriations 
Act.
      The bill provides funding for the National Transit 
Database (NTD) authorized under Section 5335 in fiscal years 
2006 through 2009. The NTD workload has increased substantially 
with the advent of monthly reporting on safety and security and 
with the new requirements for the phased in rural and asset 
condition reporting.
Conference Substitute
      Section 5338 authorizes amounts from the General Fund, 
and makes available amounts from the Mass Transit Account of 
the Highway Trust Fund, to carry out Federal public 
transportation programs in Fiscal Years 2005 through 2009. 
Funds from the Mass Transit Account are provided as `contract 
authority.'
      Section 5338(a) provides funds for all programs for 
Fiscal Year 2005 in accordance with the Consolidated 
Appropriations Act.
      Section 5338(b), Formula and Bus Grants, provides funds 
for Fiscal Years 2006 through 2009 from the Mass Transit 
Account to carry out all programs except New Starts, Research 
(including University Transportation Centers), and FTA 
Administration. Amounts are specified for each program for each 
fiscal year.
      The bill provides funding from the Trust Fund in Section 
5338(b) for the National Transit Database (NTD) authorized 
under Section 5335 in fiscal years 2006 through 2009. The NTD 
workload has increased substantially with the advent of monthly 
reporting on safety and security and with the new requirements 
for the phased in rural and asset condition reporting.
      Grants for both planning programs are mainstreamed into 
49 U.S.C. 5305. Funding for the planning programs are 
authorized as specified amounts from the Formula Grants 
account.
      Section 5338(c), Major Capital Investment Grants, 
authorizes appropriations from the General Fund in Fiscal Years 
2006 through 2009 to carry out New Starts, including Small 
Starts, under Section 5309.
      Section 5338(d), Research and University Research 
Centers, authorizes appropriations for the Research Programs, 
including University Transportation Centers. Specific amounts 
are provided for the Transit Cooperative Research Program, as 
well as Project Action and the new Center for Senior 
Transportation.
      Section 5338(e), Administration, authorizes 
appropriations for administrative expenses.
      Amounts available under Subsections (a), (b), (c), and 
(d) remain available until expended. Grants financed from 
amounts derived from the Mass Transit Account under subsections 
(a) or (b) or through advance appropriations under those 
subsections as well as subsections (c), (d), or (e) would be 
contract authority.

                SEC. 3037. ALTERNATIVES ANALYSIS GRANTS

House Bill
      No provision.
Senate Bill
      No provision.
Conference Substitute
      Establishes a new program explicitly for grants to 
States, metropolitan planning organizations, and local 
governmental authorities to develop alternatives analyses. This 
eligibility for new fixed guideway capital project planning and 
alternatives analysis resides under section 5309 in current 
law. Because the conferees have eliminated this eligibility 
under the New Starts program, a stand-alone program is 
established for such activities.

   SEC. 3038. APPORTIONMENTS BASED ON GROWING STATES FORMULA FACTORS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 6037.
      A new Section 5340 is added to allocate funds to Growing 
and High Density States. For this section, the term `State' is 
defined only to mean the 50 States.
      The new Section 5340 allocates funds based on the 
population forecasts for fifteen years after the date of that 
census. Forecasts are based on the trend between the most 
recent decennial census and Census Bureau population estimates 
for the most current year. Funds allocated to the States are 
then sub-allocated to urbanized and non-urbanized areas based 
on forecast population, where available. If forecasted 
population data at the urbanized level is not available, funds 
are allocated to current urbanized and non-urbanized areas on 
the basis of current population. Funds allocated to urbanized 
areas are included in their Section 5307 apportionment. Funds 
allocated for non-urbanized areas are included in the States' 
Section 5311 apportionments.
      For States with population densities in excess of 370 
persons per square mile, funds are allocated based on the 
amount by which their population exceeds the product of their 
land area and the percentage of total State population in 
urbanized areas as determined by the most recent Decennial 
Census.
Conference Substitute
      The Conference adopts Senate Proposal with a modification 
to flow high density funds through urbanized areas. These funds 
will be distributed to urbanized areas in their Section 5307 
apportionments on the basis of their share of urbanized 
population. The Conferees expect that FTA will publish single 
urbanized and rural apportionments that show the total amount 
for 5307 and 5311 programs that includes both apportionments 
under 5336 and 5311 formulas together with 5340.

           SEC. 3039. OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM

House Bill
            Sec. 3035.
      This section amends Section 3038 of TEA-21 regarding the 
over-the-road bus accessibility program, which provides grants 
to intercity and charter bus providers for incremental costs of 
equipment to reach compliance with the Americans with 
Disabilities Act. The TEA-21 provision regarding Federal share 
is amended by increasing the Federal share for such project 
costs from 50 percent to 80 percent.
Senate Bill
            Sec. 6039.
      Continues Over-the-Road Bus Accessibility Program.
Conference Substitute
      Adopts the House proposal but specifies that the Federal 
share for grants under this program is 90 percent.

                     SEC. 3040. OBLIGATION CEILING

House Bill
            Sec. 3045
      This section sets the annual obligation ceiling for 
Federal Transit Administration programs authorized by this Act 
for fiscal years 2004-2009, including both amounts made 
available from the Mass Transit Account of the Highway Trust 
Fund and general funds from the U.S. Treasury. The total 
obligation authority for each fiscal year is guaranteed to be 
provided in the fiscal year for which it is set under the 
budgetary firewalls established in section VIII of the bill.
Senate Bill
            Sec. 6041.
      This section establishes the obligation ceiling for each 
fiscal year, equal to the total amounts authorized.
Conference Substitute
      Establishes the obligation ceiling for fiscal years 2006 
through 2009, and sets a ceiling on the amount that can be made 
available from the Mass Transit Account.

              SEC. 3041. ADJUSTMENTS FOR FISCAL YEAR 2005

House Bill
            Sec. 3046
      This section provides for the funding reconciliation of 
apportionments and allocations made to transit grant recipients 
under this Act with the levels of funding already made 
available under the Surface Transportation Extension Act.
Senate Bill
            Sec. 6042.
      This section provides that the amounts for Fiscal Year 
2005 are in lieu of, and not in addition to, the amounts 
authorized for the first eight months of Fiscal Year 2005 by 
the Surface Transportation Extension Act of 2004. In addition, 
the section provides for an adjustment to the calculations of 
apportionments for the fixed-guideway modernization program, 
since that formula assumes a full year of funding.
Conference Substitute
      The conference report reconciles apportionments and 
allocations made under this Act with the funding already made 
available under the Surface Transportation Extension Act. This 
section also contains an adjustment to the calculation of 
apportionments for the fixed guideway modernization program.

SEC. 3042. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST PUBLIC 
                         TRANSPORTATION SYSTEMS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 6029.
      The term `mass transportation' is changed to `public 
transportation' throughout Chapter 53 of Title 49, U.S.C. 
Section 1993 of Title 18 is amended to replace the term `mass 
transportation' with `public transportation.'
      Section 1993(a)(5) makes it a Federal crime to interfere 
with anyone `dispatching, operating, or maintaining a mass 
transportation vehicle or ferry.' The statute does not address 
those who `control' such vehicles, and arguably excludes rail 
system `controllers' (central command employees who control the 
movement of rail cars). Although such controllers `operate' 
vehicles in some cases, and thus may fall within the statute, 
the statute does not expressly cover them. The amendment to 
Section 1993(a)(5) explicitly provides that interference with a 
rail controller constitutes a Federal crime.
Conference Substitute
      The Conference adopts the Senate proposal.

   SEC. 3043. PROJECT AUTHORIZATIONS FOR NEW FIXED GUIDEWAY CAPITAL 
                                PROJECTS

House Bill
            Sec. 3037.
      This section lists the projects that are authorized under 
the section 5309 new starts and small starts programs for 
fiscal years 2004-2009. Existing full funding grant agreements 
are listed separately from projects authorized for final design 
and construction and those authorized for alternatives analysis 
and preliminary engineering.
      In subsection 3037(a), 26 new start projects originally 
authorized in the Intermodal Surface Transportation Efficiency 
Act (ISTEA) or in TEA-21 have continued authorizations with the 
amount specified by fiscal year that remains outstanding under 
the schedule of Federal funds for the project (or ``schedule 
6'') attached to each project's full funding grant agreement 
contract with the FTA. The first responsibility of the 
Appropriations Committees in providing funds for new fixed 
guideway capital projects must be to ensure that each project 
under a full funding grant agreement receives the full amount 
specified for the fiscal year in which it is programmed. Under-
funding full funding grant agreements is very damaging to the 
financial management of the project and to the overall capital 
and operating budget of the sponsoring agency, and may 
jeopardize private financing for the local share of such 
project costs.
      In subsection 3037(b), new fixed guideway capital 
projects that are ongoing projects in the new starts pipeline 
and are currently in preliminary engineering or final design 
are authorized for final design and construction.
      In subsection 3037(c), new fixed guideway capital 
projects that have not yet been approved for preliminary 
engineering by the FTA or that were not previously authorized 
under TEA-21 are authorized for alternatives analysis and 
preliminary engineering.
      Subsection 3038(d) sets out rules relating to new starts 
and small starts funding for the life of the authorization. In 
general, all projects that are authorized under subsection (a) 
may expend Federal funds only for final design and construction 
activities. Projects that are authorized under subsection (b) 
may expend Federal funds for final design and construction, and 
for alternatives analysis and preliminary engineering 
activities. Projects that are authorized under subsection (c) 
may expend Federal funds only on alternatives analysis and 
preliminary engineering activities. However, on October 1, 
2007, projects authorized under subsection (c) shall also be 
authorized for final design and construction. Minimum funding 
levels are established for appropriations for each fiscal year 
in the full funding grant agreement category (subsection a) and 
the final design and construction category (subsection b), and 
maximum funding levels are established for each fiscal year in 
the alternatives analysis and preliminary engineering category 
(subsection c). Subsection 3037(b) projects authorized for 
final design and construction that execute a full funding grant 
agreement with FTA after the date of enactment of this Act are 
to be given the full amount indicated in the schedule of 
Federal funds for the project for each fiscal year under the 
agreement.
      Subsection 3037(e) amends the project description for the 
New Jersey Urban Core project originally authorized in section 
3031(d) of ISTEA. This authorization was expanded in TEA-21 and 
is further amended in this legislation.
      Subsection 3037(f) directs that project elements of the 
New Jersey Trans-Hudson Midtown Corridor that have been 
advanced with 100 percent non-Federal funds shall be given 
consideration by the FTA when evaluating the local share of the 
project in the new starts rating process, including the 
purchase of bi-level rail equipment.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The House proposal is adopted. In subsection (d), the 
Senate includes authorizations for new fixed guideway projects 
with funding amounts, subject to the requirements of section 
5309 (d) and (e) of title 49, U.S.C.
      Bi-County Transitway.--It is the intent of the managers 
that any alignment of the Bi-County Transitway along the 
Georgetown Branch right of way should be designed and 
constructed in a manner to ensure a safe and accessible 
pedestrian-bicycle trail. The Maryland Transit Administration 
should consider a range of options to include placing the rail 
line underground through cut and cover.

SEC. 3044. PROJECTS FOR BUS AND BUS-RELATED FACILITIES AND CLEAN FUELS 
                             GRANT PROGRAM

House Bill
            Sec. 3038.
      This section lists bus and bus facilities projects and 
associated funding levels for fiscal years 2006, 2007, and 
2008. Each year's designated funding represents one half of the 
authorized amount for section 5309 bus and bus facility 
projects for that fiscal year.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      This section lists bus and bus facilities projects and 
associated funding levels for fiscal years 2006, 2007, 2008, 
and 2009. Both the House and Senate combined amount of funding 
for each fiscal year represents one half of the authorized 
amount for section 5309 bus and bus facility projects for that 
fiscal year.

    SEC. 3045. NATIONAL FUEL CELL BUS TECHNOLOGY DEVELOPMENT PROGRAM

House Bill
            Sec. 3039.
      This section authorizes a new fuel cell bus technology 
development program for hydrogen fuel cell and liquid methanol 
fuel cell bus technologies, in order to facilitate the 
development of commercially viable fuel cell bus technology and 
related infrastructure. The program is limited to three 
recipients, at a Federal share of 50 percent.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      Adopts the House proposal.

  SEC. 3046. ALLOCATIONS FOR NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS

House Bill
            Sec. 3041.
      This section establishes seven specific research areas 
within the Federal Transit Administration's national research 
and technology program, and allocates funding levels in each 
fiscal year of the authorization period for these research 
areas. These research focus areas were developed through 
conferring with the FTA and reflecting priorities established 
in the agency's Research and Technology Strategic Plan. The 
programmatic structure and funding floors for each research 
area will help ensure that adequate funding is provided 
throughout the authorization period to establish and carry out 
meaningful programs with depth and continuity.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The conference report does not break out specific 
research areas within the national research and technology 
program. Program designations are made for several national 
research projects and University Transportation Centers.

               SEC. 3047. FORGIVENESS OF GRANT AGREEMENT

House Bill
            Sec. 3043.
      Forgives certain debts of the Lane County Transit 
District.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      Forgives certain debts of the Lane County Transit 
District and the Pee Dee Regional Transit Authority.

                   SEC. 3048. COOPERATIVE PROCUREMENT

House Bill
            Sec. 3044.
      This section directs the Secretary to review the practice 
of cooperative procurement of transit rolling stock, such as 
buses and rail cars. A pilot program is currently underway at 
the Federal Transit Administration to determine the benefits of 
encouraging cooperative procurement of major capital equipment. 
The program consists of three competitively selected grantees, 
consortiums of grantees, or members of the private sector 
acting as agents of grantees, who will develop cooperative 
specifications and conduct joint procurements. For this 
program, the Federal share was increased from 80 percent to 90 
percent. The Secretary is also directed to consider information 
gathered from grantees about cooperative procurement, whether 
or not related to the pilot program. The Secretary is directed 
to notify the Committee on Transportation and Infrastructure 
and the Senate Committee on Banking, Housing, and Urban Affairs 
of the results of the cooperative procurement review, and make 
a finding of whether this program has sufficient merit to be 
formally incorporated in the Federal public transportation 
program.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      Adopts the House proposal.

        SEC. 3049. TRANSIT PASS TRANSPORTATION FRINGE BENEFITS.

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 6044.
      The Senate bill includes two provisions related to 
transportation fringe benefits. Section 6004(a) requires the 
Secretary of Transportation to conduct a study of tax-free 
transit benefits and ways to promote improved access to and 
increased usage of such benefits at Federal agencies in the 
National Capital Region (NCR). Executive Order #13150 requires 
such benefits to be offered at executive agencies in the NCR, 
and the study is designed to determine how agencies are 
implementing that requirement and what the impact has been on 
congestion and pollution in the NCR.
      Section 6004(b) would remove the restriction that 
prohibits a Federal agency from operating a shuttle service to 
a transit facility. By improving access to commuting 
alternatives, Federal agencies will be able to provide a 
benefit to their employees that will also help to reduce 
congestion and improve air quality across the nation.
Conference Substitute
      The conferees replaced the transit benefit study from the 
Senate bill with language codifying Executive Order #13150 and 
extending it to include the legislative and judicial branches 
and independent agencies. As a result, all qualified Federal 
employees in the National Capital Region will receive tax-free 
transit benefit to cover their commuting costs up to the 
maximum allowed by law.
      The conferees adopted the Senate provision regarding 
shuttle service with modifications. The language was clarified 
to make clear that the decision to provide shuttle service 
rests with the agency head. In addition, language was added to 
specify that an employee riding in a shuttle would not be 
considered to be within the scope of his or her office simply 
by virtue of the fact that the employee was using the shuttle 
service. Finally, language was added to make clear that time 
during which an individual uses the shuttle service should not 
be considered when calculating the hours of work or employment 
for that individual for purposes of Title 5 of the U.S. Code, 
including chapter 55 of that title. However, the conferees do 
not intend for this language or an employee's use of the 
shuttle service to be the basis for any disciplinary action.

                        SEC. 3050. COMMUTER RAIL

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 6046.
      The Senate provision is intended to ensure timely 
completion of Rhode Island's commuter rail projects, which were 
authorized in TEA-21. Owing to the fact that commuter rail in 
Rhode Island is carried on Amtrak owned track, progress on 
completion of 2 new commuter stations requires Amtrak consent. 
The Senate bill ensures that the Secretary of Transportation 
has the authority to ensure that the projects authorized under 
Section 3030(c) (1)(A)(xliv) of the Federal Transit Act of 1998 
and section 1214(g) of the Transportation Equity Act for the 
21st Century (16 U.S.C. 668dd note) are successfully completed.
Conference Substitute
      The Conference adopts the Senate proposal.

               SEC. 3051. PARATRANSIT SERVICE IN ILLINOIS

House Bill
      No comparable provision in House bill.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      This provision clarifies the authority of a regional or 
State agency in the State of Illinois to provide coordinated 
paratransit services and for the Federal Transit Administration 
to hold such provider accountable under the requirements of the 
Americans with Disabilities Act. In May 2005, the Illinois 
General Assembly passed legislation that will consolidate in 
one agency the paratransit services in the six-county 
Chicagoland region. Because FTA regulations do not contemplate 
that regional agencies would directly provide coordinated 
services in the manner set forth in this new State law, this 
provision sets forth explicit authority for FTA to audit the 
services provided by a regional or State agency, make 
recommendations, and take enforcement action if necessary 
against that agency.

                     TITLE IV--MOTOR CARRIER SAFETY

              Subtitle A--Commercial Motor Vehicle Safety

      The Motor Carrier Safety Improvement Act of 1999 (MCSIA) 
(P.L. 106-159) established the Federal Motor Carrier Safety 
Administration (FMCSA) within the Department of Transportation 
(DOT) on January 1, 2000. Prior to the enactment of MCSIA, 
commercial motor vehicle-related crashes resulting in 
fatalities and injuries had been steadily climbing and it was 
determined that the creation of a separate modal administration 
within the DOT would improve truck and bus safety. According to 
data compiled by the DOT, large trucks\1\ represent about three 
percent of registered vehicles; however, they account for 7 
percent of the vehicle-miles traveled on our Nation's highways, 
and are involved in about 11 percent of all fatal crashes.
---------------------------------------------------------------------------
    \1\Large truck is defined as a commercial motor vehicle with a 
gross vehicle weight of 10,001 pounds or more.
---------------------------------------------------------------------------
      FMCSA's primary responsibility is to enforce the Federal 
motor carrier safety and hazardous materials regulations, 
including the requirements governing Mexico-domiciled 
commercial motor vehicles operating in the United States. FMCSA 
also administers the Commercial Driver's License (CDL) program, 
oversees the interstate transportation of household goods, and 
all aspects of hazardous materials transportation via highway. 
FMCSA has been directed to accomplish these responsibilities 
through increased enforcement of the safety regulations, 
expedited completion of rulemaking proceedings, scientific 
research, and improved commercial driver's licensing programs.
      FMCSA has set a goal of reducing the rate of fatalities 
in large truck crashes by 39 percent between 1999, the year 
prior to the agency's creation, and 2008, from a rate of 2.7 
fatalities per 100 million vehicle miles traveled (VMT) to a 
rate of 1.65. The commercial motor vehicle fatality rate, 
factoring in increases in VMT, was reduced to 2.28 in 2002, a 
reduction of 7 percent from 2001 when the rate was 2.45. The 
commercial motor vehicle fatality rate reduction in 2002 marked 
the fifth consecutive year the rate had been reduced. While the 
fatality rate has improved, in 2003, 4,986 people were killed 
in truck crashes, an increase of 47 deaths over 2002, and 
122,000 people were injured. In addition, 723 truck drivers 
were killed in 2003, an increase of nearly 5 percent over the 
number of 2002 fatalities.

               SEC. 4101. AUTHORIZATION OF APPROPRIATIONS

House Bill
            Sec. 4101.
      From the day of burro-drawn wagons moving our goods to 
the current day intermodal, just-in-time delivery system, 
commercial vehicles have always played an important role in our 
Nation's economy. This section provides funding from the 
Highway Trust Fund, other than the Mass Transit Account, for 
FMCSA to implement safety programs for fiscal years 2005 
through 2009. Funding for the Motor Carrier Safety Assistance 
Program is authorized in section 4102 of this title. This bill 
authorizes FMCSA and its programs to be funded through contract 
authority. Under the Transportation Equity Act for the 21st 
Century (TEA-21), the agency's administrative expenses were 
funded through a deduction of the Federal Highway 
Administration's (FHWA) administrative expenses. This set-aside 
of Federal-aid funds is called a ``takedown''. The Motor 
Carrier Safety Improvement Act of 1999 (MCSIA) (P.L. 106-159) 
amended TEA-21 by increasing the takedown to one-third of 1 
percent from the FHWA's administrative expenses to administer 
FMCSA activities. Other than the first year of enactment, the 
takedown has proven to be ineffective for funding the motor 
carrier safety program adequately. In addition, the takedown 
has not been able to respond to additional safety and program 
needs created with the implementation of the North American 
Free Trade Agreement, and the security improvements needed in 
response to the terrorist attacks of September 11, 2001. 
Therefore, it is appropriate to create new contract authority 
for FMCSA expenses. In addition to authorizing administrative 
expenses, this section also authorizes three grant programs for 
commercial driver's license improvement, border enforcement, 
and performance and registration system management, as well as 
an authorization to carry out the commercial vehicle 
information systems and networks development program.
Senate Bill
            Sec. 7103.
      This section would authorize the following appropriations 
from the Highway Trust Fund for FMCSA safety programs 
(excluding MCSAP) for FYs 2006 through 2009.
      For administrative expenses of the Federal Motor Carrier 
Safety Administration: FY 2006 $211,400,000; FY 2007 
$217,500,000; FY 2008 $222,600,000; and FY 2009 $228,500,000.
      Border Enforcement Grants: FY 2006 $33,000,000; FY 2007 
$34,000,000; FY 2008 $35,000,000; and FY 2009 $36,000,000.
      Performance and registration information system 
management grants program: $4,000,000 for each FYs 2006 through 
2009.
      Commercial driver's license and driver improvement 
program grants: FY 2006 $23,000,000; FY 2007 $23,000,000; FY 
2008 $24,000,000; and FY 2009 $25,000,000.
      Commercial vehicle information systems and networks 
deployment program: $25,000,000 for each FYs 2006 through 2009.
Conference Substitute
      The conference adopts authorizing funds for FMCSA and its 
grant programs for FYs 2005 through 2009. For Motor Carrier 
Safety Grants: FY 2005 $188,480,000; FY 2006 $188,000,000; FY 
2007 $197,000,000; FY 2008 $202,000,000; and FY 2009 
209,000,000.
      For administrative expenses of the Federal Motor Carrier 
Safety Administration: FY 2005 $254,849,000; FY 2006 
$213,000,000; FY 2007 $223,000,000; FY 2008 $228,000,000; and 
FY 2009 $234,000,000.
      Commercial Driver's License Program Improvement Grants: 
$25,000,000 for each FYs 2006 through 2009.
      Border Enforcement Grants: $32,000,000 for each FYs 2006 
through 2009.
      Performance and Registration Information System 
Management Grants Program: $5,000,000 for each FYs 2006 through 
2009.
      Commercial Vehicle Information Systems and Networks 
Deployment program: $25,000,000 for each FYs 2006 through 2009.

SEC. 4102. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS AND FALSE 
                                RECORDS

House Bill
            Sec. 4108.
      Subsection (a) doubles the penalties for recordkeeping 
violations under 49 U.S.C. 521(b)(2)(B) up to $1,000 for each 
day the offense continues, or up to $10,000 for an offense that 
misrepresents a non-recordkeeping violation. Subsection (b) 
increases to a maximum of $25,000 the civil penalty for a motor 
carrier that knowingly orders a driver to proceed despite an 
OOS order. Subsection (b) also increases a driver's penalty for 
a first offense to a 180-day disqualification and a civil 
penalty of at least $2,500, and, for a second offense, to a 
two- to five-year disqualification and a civil penalty of up to 
$5,000.
Senate Bill
            Sec. 7113.
      The civil penalties for recordkeeping violations are $500 
for each day the offense continues, up to a maximum of $5,000, 
or $5,000 for each recordkeeping violation that can be shown to 
have misrepresented a fact constituting a non-recordkeeping 
violation. Subsection (a) would double these penalties to up to 
$1,000 for each day the offense continues, or up to $10,000 for 
an offense that misrepresents a non-recordkeeping violation. 
Recordkeeping violations frequently have no other purpose than 
to conceal a safety violation, and they often succeed. Higher 
penalties should reduce both the number of recordkeeping 
violations and, indirectly, the number of safety violations as 
well. The current penalties for a driver who violates an out-
of-service (OOS) order are, for a first offense, a 90-day 
disqualification from operating a CMV and a civil penalty of at 
least $1,000 and for a second offense, disqualification for one 
to five years and a civil penalty of at least $1,000. An 
employer who knowingly allows or requires a driver to violate 
an OOS order is subject to a civil penalty of up to $10,000. 
OOS orders can be issued for a variety of reasons: for failure 
to pay civil penalties on schedule; for having an 
unsatisfactory safety rating; for violating the agency's hours-
of-service or equipmentregulations; or because the motor 
carrier constitutes an imminent hazard. Enforcement officers cannot 
afford to spend hours monitoring a single OOS vehicle, and tracking 
possible movements of an entire OOS fleet is even more difficult. As a 
result, many OOS orders are violated. One effective deterrent to 
violating an OOS order is to raise the cost to violators. Subsection 
(b) would increase to a maximum of $25,000 the civil penalty for a 
motor carrier that knowingly orders a driver to proceed despite an OOS 
order. An employer who knowingly and willfully ignores OOS orders is 
liable to imprisonment for up to a year or a fine of up to $100,000 if 
the violation did not result in death, or up to $250,000 if it did 
result in death, or both. The section also would increase penalties for 
drivers who decide on their own to ignore an OOS order. Subsection (b) 
would increase a driver's penalty for a first offense to a 180-day 
disqualification and a civil penalty of at least $2,500, and, for a 
second offense, to a two to five year disqualification and a civil 
penalty of up to $5,000.
Conference Substitute
      The conference adopts the House approach. The conference 
also adopts the House approach found in Sec. 4213 of the House 
bill, which permits imprisonment, under Title 18, if an 
employer knowingly and willfully allows an employee to operate 
a CMV out-of-service.

           SEC. 4103. PENALTY FOR DENIAL OF ACCESS TO RECORDS

House Bill
            Sec. 4106.
      This provision creates the new section, 521(b)(2)(E), 
which creates a financial penalty to dissuade any uncooperative 
carriers or shippers from denying or impeding FMCSA's 
legitimate access to records.
Senate Bill
            Sec. 7109.
      FMCSA investigators have broad authority to inspect and 
copy motor carrier and shipper records and most carriers and 
shippers readily grant access to requested records. Some, 
however, deliberately impede the investigative process by 
refusing to set an audit date, or, after setting a date, by 
ordering investigators off the premises, occasionally with a 
show of force. Others take a more subtle approach, feigning 
illness or declaring an emergency during the audit, pleading 
inability to produce records because of the absence of key 
personnel, or delivering documents at a pace designed to 
prolong the audit beyond the time available to the 
investigator. While investigators can issue an administrative 
subpoena for documents, refusal to comply requires the agency 
to file an action in Federal court to enforce the subpoena. 
This process, though effective, is relatively slow and labor-
intensive, and the cost to a carrier or shipper who does not 
seriously contest the action is minimal. This section would 
create a financial penalty to dissuade uncooperative carriers 
and shippers from denying or impeding FMCSA's legitimate access 
to records.
Conference Substitute
      The conference adopts the Senate approach, with the 
inclusion of the House penalty amounts.

              SEC. 4104. REVOCATION OF OPERATING AUTHORITY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7116.
      This section would authorize the Secretary to suspend the 
registration of a motor carrier, a freight forwarder, or a 
broker for failing to comply with safety regulations 
established by the Secretary. In addition, the Secretary would 
be required to revoke the registration of a motor carrier that 
has failed to comply with Federal safety fitness requirements. 
The Secretary also would be required to revoke the registration 
of a motor carrier whose operations are an imminent hazard to 
public health or property. In order to suspend or revoke a 
registration, the Secretary must give prior notice to the 
registrant.
Conference Substitute
      The conference adopts the Senate approach.

            SEC. 4105. STATE LAWS RELATING TO VEHICLE TOWING

House Bill
            Sec. 4136.
      This section permits states to create laws requiring 
towing companies to have prior written consent by the property 
or the property owner or lessee be present at the time the 
vehicle is towed.
Senate Bill
            Sec. 7129.
      This section permits states to create laws requiring 
towing companies to have prior written consent by the property 
or the property owner or lessee be present at the time the 
vehicle is towed. Also, the Secretary of Transportation must 
conduct a review of Federal, State, and local regulations 
relating to tow truck operations and conduct a study to 
identify issues related to the protection of consumer rights 
and identify potential remedies.
Conference Substitute
      The conference adopts the House and Senate provisions to 
allow states to make laws requiring towing companies to have 
prior written consent or require the property owner or lessee 
to be present during a tow. The conference also agreed to 
require the Secretary of Transportation to study the issues 
relating to consumer protection of those who are towed and 
potential remedies.

                 SEC. 4106. MOTOR CARRIER SAFETY GRANTS

House Bill
            Sec. 4102.
      Subsection (a) of this section reauthorizes MCSAP, with a 
number of changes. In addition to increases in authorized 
funding levels, the program would be amended to require the 
States to include 5 new requirements in their annual commercial 
vehicle safety plans: the implementation of performance-based 
activities; the establishment of a program ensuring accurate, 
complete, and timely motor carrier safety data is collected, 
reported, and corrected if incorrect; States including in their 
training manuals, for all drivers' licensing examinations, 
information about best practices for safely sharing the road 
with trucks and cars; enforcing the registration requirements 
of section 13902 of title 49, United States Code, by removing 
from service vehicles that are unregistered or operating beyond 
the scope of their registration; and States conducting highly 
visible traffic enforcement programs in locations or corridors 
that have been identified as having a high incidence of truck 
crashes.
      Subsection (b) of this section details the new 
activities, such as enforcement of non-commercial motor 
vehicles when behavior of the drivers increases the risk of 
crashes, which States can use funds provided under the MCSAP. 
The Committee intends this new MCSAP authority to be used in 
direct relation to conducting highly visible roadside 
enforcement activities in high crash corridors. Subsection (c) 
of this section authorizes funding for the MCSAP. This funding 
is for the basic grant program, high priority grants, and the 
new entrant program. This bill does not continue the incentive 
program for MCSAP.
      Subsection (d) of this section provides FMCSA the 
authority to provide grants without a matching requirement to 
the States to conduct safety audits of new entrant motor 
carriers. This subsection also increases the current amount of 
MCSAP funding available for high priority activities to 10 
percent of the total funds authorized. Inaddition, this 
subsection also allows the Secretary to use up to $15,000,000 each 
fiscal year to conduct safety audits of new entrant motor carriers 
described in subsection (c).
Senate Bill
            Sec. 7107.
      This section provides language that ensures that 
inspections on motor carriers of passengers are conducted at 
stations, terminals, border crossings, or maintenance 
facilities, except in the case of an imminent or obvious 
hazard. It will provide that the training manual for the 
licensing examination to drive a motor vehicle of the State 
will include information on best practices for driving safely 
in the vicinity of motor vehicles. It also provides that the 
State will suspend the operation of any vehicle found to be 
operating without registration or beyond the scope of its 
registration. Under this section there are grants for 
activities carried out in conjunction with an appropriate 
inspection of a CMV to enforce Government or State regulations, 
including regulating commercial motor vehicle size and weight 
limitations at locations other than fixed weight facilities, at 
ports, or at other specific locations and for the detection of 
unlawful presence of controlled substance in a commercial motor 
vehicle or on any occupant of the vehicle. These grants are 
also for enforcement of State traffic laws and regulations 
designed for the safe operation of commercial motor vehicles. 
The Secretary may allocate new entrant motor carrier audit 
funds to States and local governments without requiring a 
matching contribution from such States or local governments. 
This section authorizes the following amounts from the Highway 
Trust Fund to carry out section 31102:
             2006 $193,620,000
             2007 $197,490,000
             2008 $201,440,000
             2009 $205,470,000
Conference Substitute
      The conference adopts the House section (a) State Plan 
Contents and adds a modified version of the Senate's paragraph 
(U) regarding the location of bus inspections. The conference 
adopts the House section (b) Use of Grants to Enforce Other 
Laws with a modification of paragraph (c)(2). The conference 
agrees the states may not use more than 5% of the base amount 
the state receives for non-commercial motor vehicle 
enforcement. The state must maintain its level of inspection 
effort equal to the average amount from FY 2003, 2004, and 
2005.
      The Conference supports the use of new technologies, such 
as the Hazmat Trucking Enforcer, that enable inspectors to 
conduct inspections in a more effective manner. The Committee 
notes that States must be in substantial compliance with a 
number of requirements under 49 U.S.C. 31102 as a condition of 
receiving MCSAP funding, including requirements to deploy 
technology to enhance the efficiency and effectiveness of 
commercial motor vehicle safety programs under 49 U.S.C. 
31102(b)(1)(A), as amended.

      SEC. 4107. HIGH PRIORITY ACTIVITIES AND NEW ENTRANTS AUDITS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7107.
      As under current law, up to $15,000,000 for each FY 2006 
through 2009 of MCSAP grant funds could be set aside for high 
priority activities that improve commercial motor vehicle 
safety and are national in scope. The section would require 
that at least 80 percent of funds set aside for high priority 
projects be awarded to State and local agencies. Although DOT 
has broad discretion to determine the details of the program, 
the Secretary would be required, at a minimum, to focus on 
reductions in the number and rate of fatal accidents involving 
CMVs. The Secretary is also required to designate up to 
$29,000,000 for audits of new entrant motor carriers and can 
withhold these funds from a State or local government that is 
unable to use government employees to conduct these audits. 
Should they be unable to do so, the Secretary would be 
authorized, but not be required, to expend the funds directly 
to carry out new entrant audits in those jurisdictions. The 
Secretary may also designate $2,000,000 in FY 2006 and up to 
$6,000,000 for FY 2007 through 2009 for the modernization of 
the commercial driver's license information system. This 
section also would clarify that funds provided for border 
enforcement grants are to go to States that share a border with 
another country. Grant recipients could not use Federal funds 
to replace State funds. As a condition of receiving a border 
enforcement grant, States would be required to maintain their 
own expenditures at a level at least equal to the average level 
of expenditure by the State for the two years before October 1, 
2005.
Conference Substitute
      The Conference adopts the Senate approach.

                  SEC. 4108. DATA QUALITY IMPROVEMENT

House Bill
            Sec. 4115.
      This section adds language to the current information 
systems requirements to ensure that the data FMCSA receives 
from the States is complete, timely, and accurate.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      This section aims to ensure the safety data FMCSA 
receives from States is complete, timely, and accurate. This 
section was initiated because the Conferees' concern regarding 
the quality of the safety data in the motor carrier safety 
status measurement system (SafeStat) and the unresolved 
material weaknesses in the SafeStat data, as confirmed in a 
2004 report of the Department's Inspector General. In addition, 
the Conferees are concerned that data quality issues affecting 
the MCMIS database may constrain its usefulness for certain 
purposes beyond general internal review and screening. The 
Conferees urge the Secretary to revisit this issue to determine 
if there are more accurate factors that could be utilized when 
determining whether to issue safety permits.

 SEC. 4109. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT

House Bill
            Sec. 4114.
      Subsection (a) updates the current statute to more 
closely follow how the performance and registration information 
systems management (PRISM) program is currently administered. 
Subsection (b) establishes a new separate grant program for 
PRISM. These grants do not require a State match.
Senate Bill
            Sec. 7120.
      The Performance and Registration Information System 
Management Program (PRISM) is a voluntary program in which 
States can participate to identify motor carriers and hold them 
responsible for the safety of their operations. The program 
includes two major processes: a commercial vehicle registration 
process, through which States ensure that no vehicle is plated 
without identifying the carrier responsible for the vehicle's 
safety during the registration year, and a motor carrier safety 
improvement process, designed to improve the safety performance 
of motor carriers with demonstrated poor safety performance. As 
of March 2004, 27 States participated in the PRISM program, 
also the States of Alaska and New York have also provided the 
FMCSA with a Letter of Intent to implement the PRISM program. 
PRISM is an effective enforcement tool that enables the States 
to deny, suspend, or revoke a motor carrier's commercial motor 
vehicle registrations when FMCSA determines that the carrier 
has become unfit to operate CMVs safely. By itself, an out-of-
service (OOS) order from FMCSA sometimes has little 
effect.However, when the State simultaneously confiscates the motor 
carrier's CMV license plates, the carrier's ability to continue 
operating without detection is greatly reduced. Grants to implement 
PRISM are authorized by section 103 of the bill. This section would 
establish in statute certain requirements for participation in the 
program. In order to participate, States would have to comply with 
uniform standards set by the Secretary and have the legal authority to 
impose CMV registration sanctions on the basis of a Federal safety 
fitness determination. Another condition for participation in the 
program would be that States cancel the motor vehicle registration and 
seize the plates of an employer who knowingly allows an employee to 
operate a CMV in violation of an OOS order.
Conference Substitute
      The conference adopts both the House and Senate approach. 
The conference combined and clarified both the House and Senate 
language in the Conditions for Participation section.

                  SEC. 4110. BORDER ENFORCEMENT GRANTS

House Bill
            Sec. 4103.
      Subsection (a) deletes contract authority funding for 
information systems by striking the section 31107 of title 49, 
U.S.C., where it currently is located. Funding for information 
systems is now included in the administrative expenses. 
Subsection (a) also creates a new grant program for border 
enforcement activities under the same section.
      This grant program is for State enforcement activities at 
the Canadian and Mexican borders. No Federal activity would be 
conducted using this money. States would be authorized to use 
the grants for virtually anything related to Commercial Motor 
Vehicles (CMV) safety enforcement and compliance with State and 
Federal CMV requirements involving foreign motor carriers, 
including the purchase of land and buildings. Grant recipients 
could not use Federal funds to replace State funds and they 
would be required to maintain the average level of border-
related expenditures during fiscal years 2003-2004. It is 
intended, and quite possible, that this money will not be 
distributed to every State that shares a border with another 
Country, but will only be distributed to States with an 
identified need. These grants do not require a State match.
Senate Bill
            Sec. 7107(b).
      This section also would clarify that funds provided for 
border enforcement grants are to go to States that share a 
border with another country. Grant recipients could not use 
Federal funds to replace State funds. As a condition of 
receiving a border enforcement grant, States would be required 
to maintain their own expenditures at a level at least equal to 
the average level of expenditure by the State for the two years 
before October 1, 2005.
Conference Substitute
      The conference adopts the House approach, and the Senate 
approach regarding Noncompliance with CDL Requirements.

        SEC. 4111. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM

House Bill
            Sec. 4112.
      This section authorizes a comprehensive FMCSA research 
and technology program under section 31108 of title 49, U.S.C. 
The Federal share of the cost of activities carried out under a 
cooperative research and development agreement could not exceed 
50 percent, except if there is substantial public interest or 
benefit, the Secretary could approve a greater Federal share.
Senate Bill
            Sec. 7118.
      This section would establish a motor carrier research and 
technology program. The goal is to support, through contracts, 
cooperative agreements, and grants, research designed to 
produce innovative advances in motor carrier, driver, and 
passenger safety. Equally critical, however, would be the 
transfer of promising results, whether technical or 
operational, to potential users and rapid deployment of the 
fruits of research and development. The Federal share of the 
cost of activities carried out under a cooperative research and 
development agreement will not exceed 50 percent, except when 
there is substantial public interest or benefit, as determined 
by the Secretary. Research, development, or use of a technology 
under a cooperative research and development agreement, 
including the terms under which the technology may be licensed 
and the resulting royalties may be distributed, would be 
subject to the Stevenson-Wydler Technology Innovation Act of 
1980.
Conference Substitute
      The conference adopts the House approach with 
clarification of language in the Research, Development, and 
Technology Transfer Activities section.

         SEC. 4112. NEBRASKA CUSTOM HARVESTERS LENGTH EXEMPTION

House Bill
            Sec. 4138.
      This section allows the State of Nebraska to permit the 
length of commercial motor vehicles used exclusively for 
hauling custom harvesters to 81 feet, 6 inches.
Senate Bill
      No comparable provision in Senate bill.
Conference
      The conference adopts the House approach.

  SEC. 4113. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT

House Bill
            Sec. 4111.
      Some motor carrier managers and brokers order, encourage, 
or tolerate widespread regulatory violations and, when caught, 
declare bankruptcy, rename the company and reshuffle the 
managers' titles, sell its assets to a pre-existing shell 
corporation owned and managed by the same people, or otherwise 
attempt to evade the payment of civil penalties, obscure the 
identity of the company and thus its violation record, and 
perpetuate a casual indifference to regulatory compliance and 
public safety. Although the total number of such managers and 
brokers are small, their actions create risks disproportionate 
to their numbers.
      This section addresses these problems. It amends 49 
U.S.C. 31135 to authorize the Secretary to suspend, amend, or 
revoke the registration of a for-hire motor carrier if any of 
its officers has engaged in a pattern or practice of avoiding 
compliance, or concealing non-compliance, with Federal 
standards. The Secretary could also deny an application to 
register as a for-hire motor carrier if any of the proposed 
officers of the company has engaged in a pattern of non-
compliance. In this context, ``officer'' means owner, chief 
executive officer, chief operating officer, chief financial 
officer, safety director, vehicle maintenance supervisor, 
driver supervisor, and any person exercising controlling 
influence over operations of a motor carrier.
      This provision does not apply to all officers whose 
companies are found to be in violation of the Federal safety 
rules. Rather, it is intended to authorize the Secretary to 
force out of the industry those few who have shown unusual and 
repeated disregard for compliance.
Senate Bill
            Sec. 7117.
      Some motor carrier managers order, encourage, or tolerate 
widespread regulatory violations and, when caught, declare 
bankruptcy, rename the motor carrier, and reshuffle the 
managers' titles, sell its assets to a pre-existing shell 
corporation owned and managed by the same people, or otherwise 
attempt to evade the payment of civil penalties, obscure the 
identity of the motor carrier and thus its safety record. 
Although the total number of such managers is small, their 
actions create a risk disproportionate to their numbers. The 
section would address these problems by authorizing the 
Secretary to suspend, amend, or revoke the registration of a 
for hire motor carrier if any of its officers has engaged in a 
pattern or practice of avoiding compliance, or concealing non-
compliance, with Federal motor carrier safety standards. In 
this context, ``officer'' means owner, director, chief 
executive officer, chief operating officer, chief financial 
officer, safety director, vehicle maintenance supervisor, and 
driver supervisor of a motor carrier. This provision would not 
apply to all motor carrier officers whose companies are found 
to be in violation of the Federal safety rules. Rather, it is 
intended to authorize the Secretary to force out of the 
industry those few motor carrier officers who have shown 
unusual and repeated disregard for safety compliance. It is 
expected that the Secretary would use this authority only in 
the most serious cases.
Conference Substitute
      The conference adopts the House provisions without the 
Regulations and Cross Reference paragraphs.

     SEC. 4114. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS

House Bill
            Sec. 4110.
      In order to simplify and rationalize the analysis of 
accident data and provide a complete picture of the safety of 
motor carrier operations, subsection (a) requires the 
Secretary, in the course of determining the safety fitness of 
commercial motor vehicle (i.e., interstate) owners and 
operators, to consider the accident and inspection record of 
such owners and operators both on interstate and intrastate 
trips. In addition, owners and operators of commercial motor 
vehicles who are determined to be unfit and prohibited from 
operating in interstate commerce, are also prohibited by 
subsection (b) from operating commercial motor vehicles in 
intrastate commerce until they are able to demonstrate their 
fitness. Subsection (c) directs the Secretary to place all 
interstate operations of a motor carrier out of service if a 
State has placed out of service the intrastate operations of a 
carrier that has its principal place of business in that State.
      This subsection also provides the Secretary the authority 
to make grants to the States to conduct new entrant safety 
audits. This funding requires no State match; however, if the 
Secretary determines that a State is unable to use government 
employees to conduct these activities, the Secretary may 
utilize the funding to conduct new entrant audits with Federal 
resources.
            Sec. 4133.
      This provision permits DOT to determine whether a motor 
carrier or operator is fit to operate a commercial motor 
vehicle by considering their safety record while operating in 
interstate, intrastate, and Canadian and Mexican commerce.
Senate Bill
            Sec. 7114.
      As defined in 49 U.S.C. 31132(1), a vehicle is not a CMV 
unless it operates in interstate commerce. One of the 
implications of the definition is that the Secretary's 
authority to determine the safety fitness of CMV owners and 
operators encompasses the accident and safety inspection record 
of such companies or individuals on interstate trips, but not 
on intrastate trips. Most interstate motor carriers also have 
substantial intrastate operations. For safety purposes, it is 
artificial and counterproductive to create two classes of 
accidents and safety inspection data (one subject to Federal 
jurisdiction, the other not) when both classes typically 
involve the same vehicles, drivers, dispatchers, mechanics, and 
safety management controls, and may be involved in the same 
kind of accidents or violations. In examining a motor carrier's 
accident and inspection data, it is often difficult, and 
sometimes impossible, to determine whether the vehicle involved 
was making an interstate or intrastate trip. This has produced 
significant variation and potential for inaccuracy in the 
accident rates and Motor Carrier Safety Status Measurement 
System scores calculated for motor carriers, and thus in DOT's 
ability to hold all carriers to the same standard. In order to 
simplify and rationalize the analysis of accident data and 
provide a more complete picture of the safety of motor carrier 
operations, subsection (a) would require the Secretary, in the 
course of determining the safety fitness of CMV owners and 
operators, to consider the accident and inspection record of 
such owners and operators both on interstate and intrastate 
trips. In addition, owners and operators of CMVs who are 
determined to be unfit and prohibited from operating in 
interstate commerce, also would be prohibited from operating 
CMVs in intrastate commerce until they are able to demonstrate 
their fitness. There is no good reason to allow an unfit 
interstate carrier to narrow its operations to a single State, 
and thus visit its safety deficiencies upon the residents of 
that State alone. Finally, the Secretary would be directed to 
place all interstate operations of a motor carrier out of 
service if a State has placed out of service the intrastate 
operations of a carrier that has its principal place of 
business in that State. A Federal safety determination that an 
interstate motor carrier is unfit would thus halt both its 
interstate and intrastate operations, while a State safety 
determination that an intrastate carrier is unfit will halt 
both its intrastate and any interstate operations.
Conference Substitute
      The conference adopts the Senate General section and the 
House Prohibited Transportation and Determination of Unfitness 
by a State section.

                     SEC. 4115. TRANSFER PROVISION

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7108.
      This section codified certain motor carrier regulation 
provisions in Title 49, United States Code.
Conference Substitute
      The Conference adopts the Senate position with 
modification. The Conference agreed to transfer this provision 
to a section of the Motor Carrier Safety Improvement Act of 
1999.

                       SEC. 4116. MEDICAL PROGRAM

House Bill
            Sec. 4107.
      This section requires FMCSA to establish a Medical Review 
Board to serve as a source of up-to-date medical advice for 
FMCSA on matters related to driver qualification rules, 
guidelines for medical examiners, and standards for medical 
exemptions under 49 U.S.C. 31315(b). This section also includes 
a provision to establish a five-member Medical Review Board to 
make recommendations on medical standards for commercial 
drivers, medical examiner education, and medical research.
Senate Bill
            Sec. 7110.
      Section 110 would create a five-member Medical Review 
Board to provide FMCSA medical advice and recommendations on 
driver qualification medical standards and guidelines, medical 
examiner education, and medical research. The Secretary, with 
the advice of the Medical Review Board, would be required to 
develop medical standards for CMV drivers, requirements for 
periodic physical examinations, requirements for current valid 
medical certificates, courses for medical examiners, 
requirements for electronic transmittal of applicant and 
numerical identifier for any completed medical examination 
report, and to periodically review a representative sample of 
the medical examinations reports. Every CMV driver would be 
required to have a current valid medical certificate. A 
national registry of medical examiners would be established and 
only physicians listed on the registry could perform CMV driver 
physical exams and issue medical certificates.
Conference Substitute
      The Conference adopts the Senate provisions with 
modifications. The Conference adopts the Senate provision 
establishing the Medical Review Board and the Chief Medical 
Officer with technical modifications. The Conference adopts the 
Senate provision on medical standards and requirements, but 
modifies the provision to require, at a minimum, self-
certification by medical examiners to ensure they have 
completed required training in the physical and medical 
examination standards set by the Secretary of Transportation. 
The Conference does not adopt the Senate provision requiring 
the Secretary to issue medical certificates until such 
authority has been delegated to qualified medical examiners. 
The Conference adopts the Senate provisions creating the 
National Registry of Medical Examiners with a modification 
allowing the Secretary to make participation in the Registry 
voluntary if such a change will enhance the safety of operators 
of commercial motor vehicles. The Conference adopts the 
definition of ``medical examiner''.

            SEC. 4117. SAFETY PERFORMANCE HISTORY SCREENING

House Bill
            Sec. 4127.
      In order to improve motor carrier safety, this provision 
requires the Secretary to provide companies conducting pre-
employment screening services for motor carrier employers, 
electronic access to commercial motor vehicle accident reports 
involving a driver-applicant that are collected and maintained 
by FMCSA in its Motor Carrier Management Information System 
(MCMIS). The accidents reported to FMCSA must meet the accident 
definition found in 49 CFR 390.5.
      This provision also requires the Secretary to provide 
electronic access to roadside safety inspection reports 
involving a driver-applicant that resulted in a serious driver-
related safety violation. This electronic access may be 
accomplished only after the prospective employer obtains 
written consent of the driver applicant. This safety compliance 
and performance information is unique to MCMIS and, therefore, 
is not found on any other national database. Prohibiting the 
release of this driver safety information unless expressly 
authorized or required by law protects driver privacy. The 
Secretary may require a fee from companies conducting pre-
employment screening services to cover necessary administrative 
costs to implement this screening service.
Senate Bill
            Sec. 7124.
      This section requires the Secretary of Transportation to 
provide electronic access of commercial motor vehicle accident 
report information and all driver safety violations contained 
in the Motor Carrier Management Information System to companies 
conducting pre-employment screening services for the motor 
carrier industry. The information released to these companies 
will require the written consent of the driver applicant, be in 
accordance with all Federal laws, and will ensure the 
information is only made available to an authorized company or 
individual. The use of this pre-screening process is not 
mandatory and may be used only during the pre-employment 
assessment of a driver-applicant.
Conference Substitute
      The conference adopts the House approach.

                         SEC. 4118. ROADABILITY

House Bill
            Sec. 4128.
      This section directs the Secretary to initiate a rule-
making to ensure that equipment used to transport intermodal 
chassis are safe. The rulemaking must be completed no later 
than 1 year after enactment of this bill and must address a way 
to identify the equipment owner, a civil penalty structure, a 
petition process, and an inspection system.
Senate Bill
            Sec. 7127.
      This Senate provision would require the Secretary, not 
later than 1 year after enactment, to issue regulations 
establishing a program to ensure that intermodal equipment used 
to transport intermodal containers is safe and systematically 
maintained. The provision places the maintenance responsibility 
on the companies that provide the equipment and control the 
daily disposition of it. The provision would require the 
Secretary to promulgate certain regulations as a subpart of the 
regulations of the Federal Motor Carrier Safety Administration, 
including identifying intermodal equipment providers 
responsible for the inspection and maintenance of intermodal 
equipment and a requirement to match intermodal equipment to 
the equipment provider through a unique identifying number. A 
rulemaking proceeding for regulations under this section shall 
be established within 120 days after enactment of the Act. 
Under this section, any intermodal equipment determined under 
this section that fails to comply with applicable safety 
regulations may be placed out of service and the Secretary, or 
an employee of the DOT designated by the Secretary may inspect 
intermodal equipment and copy related maintenance and repair 
records. The provision preempts any law, regulation, order or 
other requirement of a State, political subdivision of the 
State, or tribal organization and defines several terms.
Conference Substitute
      The conference adopts the Senate provision with technical 
modifications.
      The conference supports an inspection system that shall 
maximize the use of available technologies, including 
electronically verified visual inspections, whenever 
appropriate.

                  SEC. 4119. INTERNATIONAL COOPERATION

House Bill
            Sec. 4113.
      This section authorizes the Secretary, and thus FMCSA, to 
engage in international activities. This kind of authority is 
necessary to aid in implementing the North American Free Trade 
Agreement and to carry on discussions with U.S. trading 
partners concerning a variety of safety issues.
Senate Bill
            Sec. 7119.
      This section would authorize the Secretary to participate 
in international activities to enhance motor carrier safety. 
FMCSA needs this authority to aid in implementing the North 
American Free Trade Agreement (NAFTA) and to carry on 
discussions with U.S. trading partners concerning a variety of 
safety issues.
Conference Substitute
      The conference adopts the House approach, which has the 
same intent as the Senate language.

     SEC. 4120. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR CARRIERS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7112.
      The section would extend to private motor carriers the 
existing requirement for for-hire motor carriers to maintain 
minimum levels of financial responsibility to cover public 
liability and property damage for the transportation of 
passengers or goods. The Secretary may require private carriers 
to file the same evidence of financial responsibility that is 
required of for-hire carriers.
Conference Substitute
      The conference agrees to include not-for-hire motor 
carriers and passenger carriers in the requirement for minimum 
financial responsibility.

 SEC. 4121. DEPOSIT OF CERTAIN CIVIL PENALTIES INTO HIGHWAY TRUST FUND

House Bill
            Sec. 4119.
      This section amends current law to deposit all civil 
penalties collected from motor carriers for violations of the 
Federal insurance requirements into the Highway Trust Fund, 
other than the Mass Transit Account.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The conference adopts the House approach.

                SEC. 4122. CDL LEARNER'S PERMIT PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7152.
      Pursuant to recommendations made by the DOT Inspector 
General, this section would require that individuals pass a 
written test to obtain a CMV license learner's permit. 
Learner's permits would be incorporated into the CDLIS 
database.
Conference Substitute
      The conference adopts the Senate approach.

SEC. 4123. COMMERCIAL DRIVER'S LICENSE INFORMATION SYSTEM MODERNIZATION

House Bill
            Sec. 4125.
      This section creates a grant program to be used to 
modernize the commercial driver's license information system 
(CDLIS). Since the creation of CDLIS, improvements to the 
database and operability of the system have not kept up with 
improvements in technology. This program helps to modernize the 
system and improve the State licensing and Federal enforcement 
personnel's ability to access necessary information.
      This section also allows the Secretary to conduct a pilot 
project in 3 States to evaluate a program for sharing 
information about all drivers' licenses, both commercial and 
non-commercial, between States.
Senate Bill
            Sec. 7154.
      This section would require the Secretary of 
Transportation to establish an account to be known as the 
``Information System Modernization Account'' (ISMA). Fees in 
excess of the costs of operating the information system 
collected for any fiscal year beginning after FY 2006 by the 
Secretary of Transportation, or an organization that represents 
the interests of the States would be credited to the ISMA. 
These funds would be available only for the purpose of 
modernizing the information system. This section would also 
require the Secretary to establish a comprehensive plan for 
modernization of the information system and set a date by which 
each State must convert to the new information system. Also, 
within one year of enactment of this Act, the Inspector General 
of the Department of Transportation shall perform a baseline 
audit of the information system that includes an assessment of 
the validity of the data in the information system, an 
assessment of the extent to which convictions are validly 
posted on a driver's record, recommendations to the Secretary 
of Transportation on how to update the baseline audit annually 
to ensure that any shortcomings in the information system are 
addressed, and a methodology for conducting the update, and any 
recommendations the Inspector General feels necessary to 
improve the integrity of the data collected.
Conference Substitute
      The conference adopts the House approach and includes 
additional Senate criteria for the modernization plan. The plan 
requires states to fund future efforts to modernize the 
commercial driver's information system. The pilot program is 
not included in the conference agreement. The Senate's Baseline 
Audit provision is adopted.

          SEC. 4124. COMMERCIAL DRIVER'S LICENSE IMPROVEMENTS

House Bill
            Sec. 4104.
      Subsection (a) creates a new program for commercial 
driver's license improvement grants. These grants enable States 
to improve the implementation of their commercial driver's 
license programs. Unlike the border grants, these funds may not 
be used to purchase land or buildings. In order to apply for a 
grant, a State must first conduct a self-assessment and 
identify deficiencies in their commercial driver's license 
program. Based on these assessments, the State will then apply 
for the appropriate amount of funding to correct these issues. 
The State must also maintain an average level of commercial 
driver's license expenditures during the fiscal years 2003-
2004. The government share for these grants is 80 percent. Five 
percent of these funds will be set aside for high priority 
commercial driver's license activities.
      Subsection (c) authorizes the Secretary to redirect up to 
5 or 10 percent of the funds a State receives under this 
program, if the State is found to be in serious non-compliance 
with the commercial driver's license program. The penalty 
provisions found in the CDL statutes have been amended to 
encourage the Secretary, through more flexibility, to assess 
penalties for non-compliance.
Senate Bill
            Sec. 7153.
      This section would allow the Secretary to make a grant to 
a State to improve the implementation of the commercial 
driver's license program, providing that the State is making a 
good faith effort toward substantial compliance with the 
requirements made in this bill. The State may use this grant 
for expenses related to its commercial driver's license 
program, but the grant may not be used to rent, lease, or buy 
land or buildings.
      The Secretary would reimburse a State for no more than 80 
percent of the cost of the improvements and each State would be 
required to maintain its previous level of CDL expenditures. 
The Secretary could designate up to 10 percent of the funds 
available under this subsection for high-priority grants. The 
Secretary could also designate up to 10 percent of the CDL 
grant funds for discretionary allocations to State agencies, 
local governments, or other persons to deal with emerging 
problems. Up to 0.75 percent of the funds available for CDL 
grants could be deducted for administrative expenses.
Conference Substitute
      The Conference adopts the House approach.

                          SEC. 4125. HOBBS ACT

House Bill
            Sec. 4105.
      Subsection (a) amends the Hobbs Act to make explicit the 
interpretation given to that act by a series of decisions of 
the U.S. Circuit Courts of Appeals. The Courts reviewed whether 
an action by FMCSA pursuant to the safety authority transferred 
in 1966 could still be reviewed by the Courts of Appeal, since 
section 2342(3)(A) applied to the commercial statutes, while 
section 2342(5) applied to actions of the STB. Subsection (a) 
ensures that both of these issues would be covered by inserting 
in section 2342(3)(A) a reference to ``subchapter III of 
chapter 311, chapter 313, and chapter 315 of Part B of subtitle 
VI of title 49.'' FMCSA's safety statutes are codified there, 
including statutes enacted after 1966. All safety statutes 
would thus be subject to exclusive review by the Courts of 
Appeal.
      Subsections (b) and (c) simply replace the term ``Federal 
Highway Administration'' with ``Federal Motor Carrier Safety 
Administration'' in 49 U.S.C. 351(a) and 352.
Senate Bill
            Sec. 7108.
      Subsection (a) would amend the Hobbs Act to make clear 
that all safety statutes are subject to exclusive review by the 
U.S. Courts of Appeal.
Conference Substitute
      The conference adopts both the House and Senate provision 
which clarify safety statutes and Court of Appeals 
jurisdiction.

    SEC. 4126. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS 
                               DEPLOYMENT

House Bill
            Sec. 4109.
      This section transfers the commercial vehicle information 
system and networks deployment program from FHWA to FMCSA in 
order to streamline the grant process. This streamlined process 
is intended to ensure the completion of the core deployment of 
commercial vehicle information systems and networks. Subsection 
(a) provides general direction to carry out the commercial 
vehicle information systems and networks deployment program. 
Subsection (b) describes the overall purpose of the commercial 
vehicle information systems and networks deployment program.
      Subsection (c) requires the Secretary to make grants of 
up to $2.5 million for the core deployment of commercial 
vehicle information systems and networks. A State that has 
previously received funding for the core deployment of 
commercial vehicle information systems and networks would 
receive a grant that has been reduced by the amount of funds 
previously received for core deployment. States that have not 
previously received funding for core deployment would receive a 
grant of $2.5 million.
      Subsection (d) authorizes the Secretary to make grants to 
States for the expanded deployment of commercial vehicle 
information systems and networks. The amount of the grants is 
determined by the amount of funds that remain after the core 
deployment grants have been made and by the number of States 
that request an expanded deployment grant. The maximum expanded 
deployment grant that may be given to a State in a fiscal year 
would be $1 million. Only States that have completed core 
deployment would be eligible for an expanded deployment grant. 
Subsection (e) describes the eligibility requirements to 
receive these grants.
      Subsection (f) provides that the Federal share of grant 
funds under this section is 50 percent. The Federal share for 
funds used for commercial vehicle information systems and 
networks from all eligible sources would be 80 percent.
Senate Bill
            Sec. 7121.
      This section would provide State grants to complete core 
deployment of the CVISN. The purpose of this program is to 
provide technological advances in commercial vehicle 
operations. ``Core deployment means the deployment of systems 
necessary to provide safety information exchange to 
electronically collect and transmit commercial vehicle and 
driver inspection data at a majority of inspection sites; to 
connect to the Safety and Fitness Electronic Records (SAFER) 
system for access to interstate carrier and commercial vehicle 
data, summaries of past safety performance, and commercial 
vehicle credentials information; and to exchange carrier data 
and commercial vehicle safety and credentials information 
within the State and connect to SAFER for access to interstate 
carrier and commercial vehicle data.
Conference Substitute
      The conference adopts the House approach, with the 
inclusion of the Senate Purpose and Federal Share provision.

                   SEC. 4127. OUTREACH AND EDUCATION

House Bill
            Sec. 4120.
      This section authorizes the Secretary to conduct an 
outreach and education program through the FMCSA and NHTSA to 
promote highway safety. Elements of the program shall include a 
comprehensive national effort to educate commercial motor 
vehicle and passenger vehicle drivers about how to share the 
road safely with each other, as well as an emphasis on traffic 
enforcement aimed at reducing the most common driving behaviors 
that cause or contribute to crashes, similar to such programs 
as ``Click It or Ticket'' and drunk driving awareness 
campaigns. The Secretary is required to provide an annual 
report each year demonstrating the programs and activities 
carried out under this section.
      The Committee has significantly increased the funding for 
the outreach and education program currently conducted by 
FMCSA, but with this legislation, the outreach program will be 
jointly managed by FMCSA and NHTSA. Although the Committee 
believes a strong enforcement program is important for 
improving commercial motor vehicle and highway safety, 
combining enforcement activities with a robust outreach and 
education program is necessary to maximize the results. Also, 
consistent with the recommendations in the U.S. General 
Accounting Office report GAO-03-680, the Committee recommends 
that the outreach and education activities conducted by FMCSA 
are directly linked to the program's goal and establish a 
systematic process for evaluating the effectiveness of the 
program.
Senate Bill
            Sec. 7122.
      The section would authorize FMCSA and NHTSA to undertake 
outreach and education initiatives. The ``Share the Road 
Safely'' program would be jointly managed by the agencies and a 
total of $1 million would be authorized for the program for FY 
2004.
Conference Substitute
      The conference adopts the House approach.

               SEC. 4128. SAFETY DATA IMPROVEMENT PROGRAM

House Bill
            Sec. 4124.
      This section establishes a grant program to the States 
dedicated to improving the accuracy, timeliness, and 
completeness of the data provided to the Secretary. Prior to 
receiving a grant under this section, the State must complete 
an audit of its safety data system and develop a plan 
recognizing the needs and goals for improving its safety data 
system. The Secretary must provide a report every two years on 
the results of the program carried out under this section.
      The Safety Data Improvement program is intended to 
address safety data problems identified in the DOT Inspector 
General's audit of FMSCA's database. FMSCA's limited resources 
require focusing on the motor carriers who are considered most 
``at risk''. In order to do this, the data FMCSA uses for 
selecting carriers must be accurate, and timely. The Committee 
is concerned that without additional funding, the States may 
have trouble improving their data reporting.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House approach.

 SEC. 4129. OPERATION OF COMMERCIAL MOTOR VEHICLES BY INDIVIDUALS WHO 
                 USE INSULIN TO TREAT DIABETES MELLITUS

House Bill
            Sec. 4121.
      This section requires the Secretary to allow individuals 
who use insulin to treat their diabetes to operate commercial 
motor vehicles in interstate commerce without requiring the 
individual to have experience operating a commercial motor 
vehicle while using insulin.
      The Committee directs FMCSA to issue a final rule to 
amend the current exemption program to allow individuals who 
use insulin to treat their diabetes to operate commercial motor 
vehicles in interstate commerce that is consistent with the 
findings of the expert medical panel report issued in July 
2000. That report concluded that individuals could be qualified 
to operate a commercial motor vehicle following a one- to two-
month period of adjustment to insulin use. This provision is 
intended to preempt FMSCA's notice of final disposition issued 
September 3, 2003, which requires an individual to have three 
years of experience operating a commercial motor vehicle in 
intrastate commerce while using insulin for treatment of 
diabetes before the individual could qualify to drive in 
interstate commerce. According to the American 
DiabetesAssociation, approximately 20 States do not have an intrastate 
exemption program for insulin-dependant commercial drivers, therefore, 
these drivers would never be able to meet the Federal requirement to 
drive in interstate commerce. The Committee is concerned that by 
issuing a notice of final disposition that is inconsistent with the 
finding of FMCSA's own expert medical panel, qualified drivers may not 
be able to get employed or stay employed.

Senate Bill

            Sec. 7111.
      This section would require the Secretary to issue a final 
rule that will allow individuals who use insulin to treat their 
diabetes to operate CMV in interstate commerce. The final rule 
may not require that an individual have experience operating a 
CMV while using insulin. However, the Secretary may require a 
minimum period of insulin use, consistent with the findings of 
FMCSA's expert medical panel made in July, 2000.

Conference Substitute

      The Conference adopts the Senate's Revision of Final Rule 
and No Period of Commercial Driving While Using Insulin 
Required for Qualification and the House's Minimum Period of 
Insulin Use and Limitations.

SEC. 4130. OPERATORS OF VEHICLES TRANSPORTING AGRICULTURAL COMMODITIES 
                           AND FARM SUPPLIES

House Bill

            Sec. 4134.
      This section continues to allow for operators of vehicles 
transporting agricultural commodities and farm supplies to not 
be subject to federal, State, and local laws, rules, 
regulations, or standards that limit the number of hours motor 
vehicle operators may remain on duty. This applies to operators 
transporting agricultural commodities during planting and 
harvest periods within a 100 air mile radius from the location 
of the distribution point for the farm supply.

Senate Bill

            Sec. 7128.
      This section would cause the regulations regarding 
maximum driving and on-duty time for drivers used by motor 
carriers to not apply during planting and harvesting periods, 
as determined by the States, to drivers transporting 
agricultural commodities or farm supplies for agricultural 
purposes in a State, if the transportation is limited to an 
area within a 100 mile radius from the source of commodities or 
the distribution site for the farm supplies. This section also 
provides a definition for the terms ``agricultural commodity'' 
and ``farm supplies''.

Conference Substitute

      The conference adopts the House language as the base for 
this section, but uses the Senate definition of ``Agricultural 
Commodity.''

SEC. 4131. MAXIMUM HOURS OF SERVICE FOR OPERATORS OF GROUND WATER WELL 
                             DRILLING RIGS

House Bill

            Sec. 4126.
      For operators of commercial motor vehicles transporting 
ground water well drilling rigs, this section preserves the 24-
hour restart provision enacted in the NHS Designation Act and 
provides that no additional off-duty time (greater than 10 
hours) shall be required to operate the vehicle.

Senate Bill

            Sec. 7140.
      The Senate bill contains a similar provision to the House 
bill.

Conference Substitute

      The Conference adopts the House position modified to be 
consistent with section 4115 of the Conference Report.

 SEC. 4132. HOURS OF SERVICE FOR OPERATORS OF UTILITY SERVICE VEHICLES

House Bill

            Sec. 4131.
      This section provides an exemption for drivers of utility 
service vehicles from federal, State, and local laws, rules, 
regulations, or standards that limit the number of hours 
operators of utility service vehicles may remain on duty.

Senate Bill

            Sec. 7128.
      The section also clarifies the regulations regarding 
commercial motor vehicles providing transportation of property 
or passengers to or from a theatrical or television motion 
picture production and also for utility service vehicles.
Conference Substitute
      The conference adopts the House approach.

       SEC. 4133. HOURS OF SERVICE RULES FOR OPERATORS PROVIDING 
                TRANSPORTATION TO MOVIE PRODUCTION SITES

House Bill
            Sec. 4135.
      This section permits operators of commercial motor 
vehicles transporting property or passengers to or from a movie 
or television production site to be regulated by the Hours of 
Service regulations in effect on April 27, 2003.
Senate Bill
            Sec. 7128.
      The section also clarifies the regulations regarding 
commercial motor vehicles providing transportation of property 
or passengers to or from a theatrical or television motion 
picture production.
Conference Substitute
      The conference adopts the identical language found in the 
House and Senate bills.

    SEC. 4134. GRANT PROGRAM FOR COMMERCIAL MOTOR VEHICLE OPERATORS

House Bill
            Sec. 4122.
      This section establishes a grant program to train drivers 
and future drivers of commercial motor vehicles to operate such 
vehicles in a safe manner.
Senate Bill
            Sec. 1413.
      This section establishes a grant program to commercial 
driver training schools for the purpose of providing financial 
assistance to entry level drivers.
Conference Substitute
      The conference adopts the House approach.

                       SEC. 4135. CDL TASK FORCE

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7151.
      This section would require the Secretary to convene a 
task force to study and report on the need for improvements to 
the CDL program in order to improve safety. The task force 
would be required to address such issues as State enforcement 
practices, operational procedures to detect and deter fraud, 
needed improvements for seamless information-sharing between 
States, updated technology, and timely notification from 
judicial bodies of traffic and criminal convictions involving 
CDL holders. The task force would be required to submit a 
report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure within two years following 
enactment.
Conference Substitute
      The conference adopts the Senate approach.

                  SEC. 4136. INTERSTATE VAN OPERATIONS

House Bill
            Sec. 4130.
      This section directs the Secretary to extend the Federal 
motor carrier safety regulations found in 49 Code of Federal 
Regulations, Parts 387, 390 through 399 to all operations of 
commercial motor vehicles designed to transport between nine 
and fifteen passengers (including the driver), regardless of 
their operational distance. This section amends the final rule 
issued by the DOT on August 12, 2003.
      The Committee intends the Secretary to address this 
situation through the rulemaking process. As part of the 
rulemaking, the Secretary shall amend the final rule addressing 
commercial motor vehicles transporting nine to fifteen 
passengers to specifically exempt vanpool operations as defined 
by section 132(f) of the Internal Revenue Code. The rulemaking 
also exempts stretch sedan limousines that are designed to seat 
nine to fifteen passengers. The rulemaking does not exempt SUV 
stretch limousines, or super stretch sedan limousines that are 
designed to seat sixteen or more passengers (including the 
driver).
Senate Bill
            Sec. 7106.
      This section requires the Secretary to require that a 
safety audit be immediately changed to a compliance review and 
appropriate actions be taken if there are any safety violations 
by a new motor carrier entrant. It also ensures that the 
Secretary enforces Federal motor carrier safety regulations 
that apply to interstate CMVs designed to transport between 9-
15 passengers, regardless of distance traveled.
Conference Substitute
      The conference adopts the identical House and Senate 
language applying the Federal Motor Carrier Safety Regulations 
to interstate van operations. Further, the conference agrees to 
exempt vanpool operations from this regulation.

                           SEC. 4137. DECALS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7126.
      This section requires that FMCSA abide by the agreement 
it has with the Commercial Vehicle Safety Alliance (CVSA) to 
the extent possible in accordance with the law, that CVSA shall 
not restrict the sale of commercial motor vehicle safety 
inspection decals to FMCSA. CVSA and FMCSA have a long-standing 
and successful partnership in ensuring the safety of commercial 
motor vehicles. A recent dispute regarding safety inspection 
decals between the two entities suggests that processes for 
resolving disputes should be improved. While the Committee 
expects FMCSA to live up to its commitments with CVSA, the 
Committee also believes that inspection decals should not be 
unilaterally withheld from the Federal agency responsible for 
ensuring motor carrier safety.
Conference Substitute
      The conference adopts the Senate approach.

            SEC. 4138. HIGH RISK CARRIER COMPLIANCE REVIEWS

House Bill
      No provision in House bill.
Senate Bill
            Sec. 7104.
      The Senate bill requires the Secretary to ensure that 
safety compliance reviews of motor carriers are completed for 
carriers that have demonstrated that they pose the highest 
safety risk. A single compliance review is required for any 
motor carrier that is rated as category A or B for two 
consecutive months.
Conference Substitute
      The Conference adopts the Senate provision with a 
modification to clarify that multiple compliance reviews are 
not required for carriers that are rated as category A or B for 
more than two consecutive months.

              SEC. 4139. FOREIGN COMMERCIAL MOTOR VEHICLES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7123.
      The Senate bill requires the Administrator of the Federal 
Motor Carrier Safety Administration to conduct outreach and 
training to state safety enforcement personnel on the 
enforcement of operating authority requirement for motor 
carriers. The Senate bill requires a study and a report by the 
Administrator on the degree to which Canadian and Mexican 
commercial motor vehicles currently expected to operate in the 
United States comply with U.S. federal motor vehicle safety 
standards.
Conference Substitute
      The Conference adopts the Senate provision.

 SEC. 4140. SCHOOL BUS DRIVER QUALIFICATIONS AND ENDORSEMENT KNOWLEDGE 
                                  TEST

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7155 and Sec. 7606
      The Senate bill requires the Secretary to recognize 
school bus drivers who pass an approved test as having met a 
certain requirement. The Senate bill also delays the effective 
date of a requirement for school bus drivers until September 
30, 2006.
Conference Substitute
      The Conference adopts the Senate provision.

                SEC. 4141. DRIVEWAY SADDLEMOUNT VEHICLES

House Bill
            Sec. 4116.
      This section creates a new national standard for the 
maximum length of drive-away saddlemount with fullmount vehicle 
transporter combinations operated on the Interstate Highway 
System.
Senate Bill
      No provision.
Conference Substitute
      The conference adopts the House provision.

    SEC. 4142. REGISTRATION OF MOTOR CARRIERS AND FREIGHT FORWARDERS

House Bill
            Sec. 4118.
      This section harmonizes the jurisdictional reach of the 
commercial and the safety statutes by eliminating the 
requirement for motor carriers to register if they are not 
subject to the Federal motor carrier safety regulations.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The conference adopts the House version.

         SEC. 4143. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES

House Bill
      No comparable provision in House bill.
Senate Bill
            Section 7115.
      The section would authorize FMCSA officials to order 
trucks on the road to stop for inspection. Today, State MCSAP 
officers, but not FMCSA officials, have such authority. With 
the opening of the Mexican border, however, Federal inspectors 
will play an expanded role in roadside enforcement. In 
addition, there is no guarantee that State or local police 
officers will always be available at border facilities or at 
other vehicle inspection facilities throughout the nation to 
order trucks to stop for an FMCSA inspection.
Conference Substitute
      The Conference adopts the Senate provision.

           SEC. 4144. MOTOR CARRIER SAFETY ADVISORY COMMITTEE

House Bill
            Sec. 4123.
      This section requires the establishment of a commercial 
motor vehicle safety advisory committee to provide advice and 
recommendations on a range of commercial motor vehicle safety 
issues. Members are appointed by the Secretary and include 
representatives of industry, drivers, safety advocates, 
manufacturers, safety enforcement officials, representatives of 
law enforcement agencies from border States, and other 
individuals affected by rulemakings. No one interest may 
constitute a majority. The advisory committee should provide 
advice to the Secretary on commercial motor vehicle safety 
regulations and other matters relating to activities and 
functions of FMCSA.
Senate Bill
      No provision.
Conference Substitute
      The conference adopts the House version with 
modifications.

                    SEC. 4145. TECHNICAL CORRECTIONS

House Bill
            Sec. 4132.
      Subsection (a) adds the Administrator as a member of the 
Intermodal Transportation Advisory Board.
      Subsection (b) changes the reference from ``Regional 
Director'' to ``Field Administrator'', that position's correct 
title since the creation of the FMCSA in the Motor Carrier 
Safety Improvement Act of 1999.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The conference adopts this clarification of the code.

              SEC. 4146. EXEMPTION DURING HARVEST PERIODS

House Bill
      No provision.
Senate Bill
      No provision.
Conference Substitute
      The conference agrees the maximum driving and on-duty 
time for a driver will not apply in the area west of Interstate 
81 in New York during the harvest period and within 150-air 
mile radius from where grapes are picked or distributed.

      SEC. 4147. EMERGENCY CONDITION REQUIRING IMMEDIATE RESPONSE

House Bill
      No provision.
Senate Bill
      No provision.
Conference Substitute
      The conference agrees regulations prescribed under 31136 
or 31502 of 49 U.S.C. will not apply to a driver of a CMV which 
is used to transport propane winter heating fuel or a motor 
vehicle used to respond to a pipeline emergency if such 
regulations would prevent the driver from responding to an 
emergency condition requiring immediate response. ``Emergency 
condition requiring immediate response'' is also defined.

                SEC. 4148. SUBSTANCE ABUSE PROFESSIONALS

House Bill
            Sec. 4129.
      This section requires the Secretary to update the current 
regulatory definition of a substance abuse professional to 
include State licensed or certified mental health counselors, 
as well as individuals certified as addiction specialists by 
the American Academy of Health Care Providers in the Addictive 
Disorders.
Senate Bill
      No provision.
Conference Substitute
      The conference adopts the House provision with 
modification.

                   SEC. 4149. OFFICE OF INTERMODALISM

House Bill
      No provision.
Senate Bill
            Sec. 7601.
      The Senate provision allows the Director of the Office of 
Intermodalism to use funds made available for grants to the 
States under section 5504 of Title 49, United States Code to 
provide technical assistance for intermodal data collection. 
The provision also instructs the Director to develop a plan to 
improve the national intermodal transportation system and to do 
a progress report on such improvements. Additionally, the 
Director, in conjunction with the Director of the Bureau of 
Transportation Statistics, shall develop common measures to 
compare transportation investments across modes and to 
formulate new methodology for measuring the impacts of 
intermodal transportation.
Conference Substitute
      The Conference adopts the Senate position with 
modifications.

               Subtitle B--Household Goods Transportation

      Oversight of the interstate household goods moving 
industry had been the responsibility of the Interstate Commerce 
Commission (ICC) prior to the ``sun-setting'' of the ICC by the 
ICC Termination Act of 1995. Most Federal oversight 
responsibilities for the transportation of household goods were 
transferred to the FHWA and later transferred to FMCSA upon 
enactment of MCSIA in 1999. FHWA, and then FMCSA, focused their 
limited resources on its primary mission of highway safety, 
rather than on consumer protection. The lack of Federal 
oversight has permitted unscrupulous ``rogue'' household goods 
movers to exploit this regulatory gap. Subtitle B of title IV 
of this bill provides greater protection to consumers shipping 
their household goods via motor carrier. However, these 
provisions only relate to the movement of household goods motor 
carriers and brokers.

                         SEC. 4201. SHORT TITLE

House Bill
      No comparable provision in House bill.
Senate Bill
      This section provides a Short Title.
Conference Substitute
      The Conference adopts the Senate approach.

           SEC. 4202. DEFINITIONS; APPLICATION OF PROVISIONS

House Bill
            Sec. 4212.
      This section defines household goods motor carrier as in 
the business of providing transportation of household goods, 
and offering some or all of the following services: binding and 
nonbinding estimates, inventorying, protective packing and 
unpacking of individual items, and loading and unloading at 
personal residences.
Senate Bill
            Sec. 7402.
      This section provides that the terms ``carrier'', 
``household goods'', ``motor carrier'', ``Secretary'', and 
``transportation'' have the meaning specified in section 13102 
of title 49, United States Code. This section defines household 
goods motor carrier as in the business of providing 
transportation of household goods, and offering some or all of 
the following services: binding and nonbinding estimates, 
inventorying, protective packing and unpacking of individual 
items at personal residences, and loading and unloading at 
personal residences. The provision applies a limited service 
exclusion indicating a motor carrier solely providing 
transportation of household goods entirely packed in, or 
unpacked from, one or more containers of trailers by the 
individual shipper of an agent thereof is excluded from this 
definition.
Conference Substitute
      The Conference adopts the Senate approach along with a 
modification to the Limited Service Exclusion. This section 
differentiates between household goods carriers and freight 
motor carriers.

                      SEC. 4203. PAYMENT OF RATES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7403.
      Under current law, a carrier must give up possession of 
the property being transported upon receipt of payment (49 
U.S.C. 13707(a)). This section codifies existing regulations 
that require a carrier to give up possession of the household 
goods so long as the shipper pays the mover 100 percent of a 
binding estimate of the charges or 110 percent of a non-binding 
estimate of the charges. Shippers are not required, as a 
condition of delivery, to pay unforeseen additional charges not 
included in a binding or non-binding estimate that are 
necessary to complete the move. This section also provides that 
a mover may only charge a prorated share of charges (based on 
either a binding or non-binding estimate) for the partial 
delivery of a shipment. Under current law, movers may require a 
shipper to pay 100 percent of the charges in a binding estimate 
or 110 percent of the charges of a non-binding estimate at the 
time of delivery even if part of the shipment is lost or 
destroyed. The section also states that the charges collected 
at delivery for impracticable operations can not exceed 15 
percent of all other charges due at delivery. Post-contract 
services requested by a shipper after the contract is executed 
are not covered by this provision.
Conference Substitute
      The Conference adopts the Senate approach.

 SEC. 4204. ADDITIONAL REGISTRATION REQUIREMENTS FOR MOTOR CARRIERS OF 
                            HOUSEHOLD GOODS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7415.
      This section requires that the Secretary may only 
register a person to provide transportation of household goods 
only after that person has provided evidence of participation 
in an arbitration program; identified its tariff and provided a 
copy of the notice of the availability of that tariff for 
inspection; provided evidence that it has access to, has read, 
is familiar with, and will observe all laws relating to 
consumer protection, estimating, consumers' rights and 
responsibilities, and options for limitations of liability for 
loss and damage; disclose any relationship involving common 
stock, common ownership, common management, or common familial 
relationships between that person and any other motor carrier 
within the last 3 years.
Conference Substitute
      The Conference adopts the Senate approach.

              SEC 4205. HOUSEHOLD GOODS CARRIER OPERATIONS

House Bill
            Sec. 4210.
      This section requires household goods motor carriers to 
provide written estimates for shipments of household goods. 
When providing these estimates, the motor carrier must conduct 
a physical survey of the household goods to be transported. A 
shipper may waive the on-site survey, but a copy of the waiver 
must accompany the estimate and remain as an addendum to the 
bill of lading.
      This section also provides definitions of binding, and 
non-binding, estimates. The binding estimate guarantees the 
total cost of the move based upon the quantities and services 
shown on the estimate.
Senate Bill
            Sec. 7404.
      This section requires that, at the time a written 
estimate is provided, the carrier must provide the shipper a 
copy of DOT's pamphlet ``Ready to Move?''. Further, before a 
contract for service is executed, the carrier must provide the 
shipper a copy of DOT's booklet ``Your Rights and 
Responsibilities When You Move''. The written estimate may be 
either binding or nonbinding, and must be based on a visual 
inspection of the household goods if they are located within a 
50 mile radius of the location of the carrier's household goods 
agent preparing the estimate.
Conference Substitute
      The Conference combines the House and Senate approach for 
the writing requirement and estimates. The Conference also 
adopts the Senate approach of providing education material to 
shippers and potential shippers.

  SEC. 4206. ENFORCEMENT OF REGULATIONS RELATED TO TRANSPORTATION OF 
                            HOUSEHOLD GOODS

House Bill
            Sec. 4201.
      This section confers authority to a State Attorney 
General of any state to bring a civil action on behalf of its 
residents in an appropriate district court of the United States 
to compel a motor carrier to relinquish possession of a 
household goods shipment or to pay a civil penalty assessed 
under section 14915.
      For purposes of bringing any civil action under this 
section, nothing in this section shall prevent a State Attorney 
General from exercising the powers conferred on the Attorney 
General by the laws of such State to conduct investigations or 
to administer oaths or to compel the attendance of witnesses or 
the production of documentary and other evidence.
      Whenever a civil action has been instituted on a 
defendant by, or on behalf of, the Secretary for violation of 
any provision specified in this section, a State may not 
institute a civil action under this section. A civil action 
under this section may be brought in the district in which the 
defendant is found, resides, or transacts business or whenever 
venue is proper under section 1391 of title 28.
      This section allows State attorneys general to pursue 
civil penalties in any appropriate district court of the United 
States in cases where a ``rogue mover'' committed repeated 
violations of holding household goods hostage. This ability to 
enforce Federal law by State officials will be a huge step 
towards improving the consumer protection that has been lacking 
since the termination of the ICC, and will help augment the 
limited Federal resources currently available. Although, this 
additional power may be seen by some as an infringement on the 
long-standing ``Carmack'' amendment, the Committee was careful 
not to touch upon any more than was necessary to ensure proper 
enforcement at the State level.
Senate Bill
            Sec. 7407.
      This section allows a State authority that regulates the 
intrastate movement of household goods to enforce Federal laws 
and regulations with respect to the transportation of household 
goods in interstate commerce. Fines or penalties imposed as a 
result of State enforcement of Federal law would accrue to the 
State. A State attorney general would be authorized to bring a 
civil action in Federal court when the attorney general 
believes the interests of the residents of the State are being 
threatened by a carrier or broker. The State would be required 
to give the DOT or the STB written notice when an action is 
about to be filed. The DOT or the STB would be authorized to 
intervene in the action and file petitions for appeal. The 
venue for a civil action would be the judicial district where 
the carrier or broker operates, or where the carrier or broker 
is authorized to provide transportation, or where the defendant 
is found. Consistent with current law, nothing prohibits States 
from prosecuting for violations of a State criminal statute. 
Application of these provisions are limited to individual 
shippers, as defined in this section.
Conference Substitute
      The Conference adopts the Senate approach, except the 
concept of substituting the Secretary of the Department of 
Transportation for the State in Federal Court.

  SEC. 4207. LIABILITY OF CARRIERS UNDER RECEIPTS AND BILLS OF LADING

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7405.
      This section would change the standard liability for loss 
and damage to full value protection, defined as the replacement 
cost in the event of loss or damage up to the pre-declared 
total value of the shipment. Movers would be allowed to offer 
``released rates'' only if the shipper opts out, in writing, of 
full value protection.
Conference Substitute
      The Conference adopts the Senate approach.

                  SEC. 4208. ARBITRATION REQUIREMENTS

House Bill
            Sec. 4202.
      This section requires household goods carriers to offer 
shippers arbitration on all matters related to loss and damage, 
including disputes about charges. This section also increases 
the threshold for binding arbitration from $5,000 to $10,000. 
These two changes will provide the consumer with more options 
for settling disputes when they arise.
Senate Bill
            Sec. 7406.
      This section requires movers to offer shippers 
arbitration and raises the threshold for bidding arbitration 
from the current $5,000 to $10,000. Within 18 months following 
enactment, the Secretary is required to complete a review of 
the results and effectiveness of arbitration programs and 
submit a report to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure. In preparing the review, 
the Secretary is required to provide an opportunity for public 
comment. The purpose is to investigate whether arbitrators are 
truly independent of both parties involved in a dispute.
Conference Substitute
      The Conference adopts the House approach.

  SEC. 4209. CIVIL PENALTIES RELATING TO HOUSEHOLD GOODS BROKERS AND 
                      UNAUTHORIZED TRANSPORTATION

House Bill
            Sec. 4203.
      This section creates civil penalties for household goods 
brokers who provide estimates prior to entering into a contract 
with a household goods mover. This section also creates a civil 
penalty for anyone who transports household goods in interstate 
commerce without having the authority to conduct that activity.
Senate Bill
            Sec. 7412.
      This section makes a broker liable for a civil penalty of 
at least $10,000 if the broker is found to have made a cost 
estimate for a carrier to transport household goods without 
first entering into an agreement with the carrier to provide 
the service. Any person found to have provided the 
transportation of household goods or broker services without 
being registered to provide these services would be liable for 
a civil penalty of at least $25,000.
Conference Substitute
      The Conference adopts the House approach.

        SEC. 4210. PENALTIES FOR HOLDING HOUSEHOLD GOODS HOSTAGE

House Bill
            Sec. 4204.
      This section creates civil penalties for anyone who holds 
a person's household goods hostage once full payment (up to 110 
percent of the estimate) has been made. The civil penalty for 
holding household goods hostage shall not be less than $10,000, 
and if the person holding the goods hostage is a motor carrier, 
the carrier's operating authority will be suspended for 6 
months.
      This legislation codifies existing regulations that 
require a carrier to give up possession of a household goods 
shipment provided the shipper pays the mover 100 percent of a 
binding estimate of the charges, or 110 percent of a non-
binding estimate of the charges.
      One of the most important parts of Subtitle B of Title 
IV, is the new definition and penalties for the practice of 
holding household goods hostage. This situation arises when a 
household goods motor carrier informs the shipper that the 
charges for shipping or unloading the shipper's possessions 
have doubled, tripled, or even quadrupled, and the only way the 
carrier will unload the goods is upon payment of these higher 
charges. These actions, conducted primarily by ``rogue 
movers,'' have gone largely unchecked in recent years. With the 
addition of civil penalties, Federal and State enforcement 
personnel have tremendous powers to prosecute these 
individuals.
            Sec. 4214.
      This section creates a criminal penalty for a household 
goods motor carrier who knowingly and willfully holds household 
goods hostage by falsifying documents or demanding payment of 
charges for services that were not performed or were not 
necessary.
Senate Bill
            Sec. 7413.
      The section defines the term ``failed to give up 
possession of household goods'' as willfully refusing to 
relinquish possession of a shipment of household goods for 
which the shipper has tendered payment described in 49 U.S.C. 
13707. A carrier violating this provision is subject to a civil 
penalty of at least $10,000, for every day the shipment is held 
hostage constituting a separate violation, as well as a twelve 
to thirty-six month suspension of the carrier's DOT 
registration. A carrier convicted of holding household goods 
hostage by falsifying documents or demanding payment for 
charges not performed is subject to a fine under Title 18, 
imprisonment up to five years, or both.
Conference Substitute
      The Conference adopts portions of both bills' penalty 
structure. The Conference agrees to a civil penalty of $10,000 
per violation, with a separate violation for each day the 
violation occurs. The Conference also adopts the Senate 
position on registration requirements. The Conference adopts 
the Senate definition of ``failure to give up possession of 
household goods'' and the criminal penalty language, with the 
House criminal penalty of not more than two years.

              SEC. 4211. CONSUMER HANDBOOK ON DOT WEB SITE

House Bill
            Sec. 4206.
      This section requires the Secretary to publish a handbook 
about consumer's rights in readily understandable language and 
display it prominently on the DOT website.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House approach.

        SEC. 4212. RELEASE OF HOUSEHOLD GOODS BROKER INFORMATION

House Bill
            Sec. 4207.
      This section requires the Secretary to modify the 
regulations to require household goods brokers to provide 
shippers, or potential shippers, with information about the 
motor carriers the broker uses, the broker's DOT identification 
number, the general information handbook, and a statement that 
the broker is not a motor carrier.
      The Committee intends to deter the current practice of 
some brokers who advertise over the Internet, providing a low 
estimate without seeing the items to be shipped, then trying to 
find a carrier to transport the household goods without regard 
to the rate the broker quoted the shipper.
Senate Bill
            Sec. 7409.
      Within one year after the date of enactment, the 
Secretary is required to modify regulations to require 
household goods motor carriers and brokers to maintain a 
website that displays their DOT assigned number and the DOT 
publication entitled ``Your Rights and Responsibilities When 
You Move''. Brokers also have to provide a list of all motor 
carriers used by the broker and a statement that the broker is 
not a motor carrier.
Conference Substitute
      The Conference adopts the House approach.

SEC. 4213. WORKING GROUP FOR DEVELOPMENT OF PRACTICES AND PROCEDURES TO 
                    ENHANCE FEDERAL-STATE RELATIONS

House Bill
            Sec. 4205.
      This section requires the Secretary to create a working 
group of State attorney generals, State consumer protection 
administrators and Federal and local law enforcement officials 
for the purpose of developing uniform enforcement procedures 
with respect to interstate transportation of household goods. 
Also, this working group is exempted from the Federal Advisory 
Committee Act.
Senate Bill
            Sec. 7408.
      This section requires the Secretary to establish a 
working group of State Attorneys General, State authorities 
that regulate the movement of household goods, and Federal and 
local law enforcement officials to develop practices and 
procedures to enhance the Federal-State partnership in 
enforcement efforts, exchange of information, and coordination 
of enforcement efforts, as well as to make recommendations for 
legislative and regulatory changes. The working group is 
required to consult with industries involved in the 
transportation of household goods, the public, and other 
interested parties.
Conference Substitute
      The Conference adopts the House approach as modified with 
Senate language to include the public and other interested 
parties in the consultation.

               SEC. 4214. CONSUMER COMPLAINT INFORMATION

House Bill
            Sec. 4208.
      This section requires the Secretary to establish a system 
for logging consumer complaints about household goods movers in 
a database accessible to the public. This section also requires 
the Secretary to establish a way for carriers to correct any 
incorrect information on the database. The Secretary is 
encouraged to use this information when determining which 
carriers should be the subject of a commercial investigation.
Senate Bill
            Sec. 7410.
      This section directs the Secretary to establish a 
publicly accessible database of complaints related to motor 
carrier transportation of household goods. Complaints must be 
forwarded to the carrier involved, and the carrier is afforded 
an opportunity to challenge the information in the database. 
The Secretary is required to submit an annual report detailing 
the complaints that were filed and logged over that year.
Conference Substitute
      The Conference adopts the House approach along with the 
Senate concept of providing public access to the complaint 
database.

               SEC. 4215. REVIEW OF LIABILITY OF CARRIERS

House Bill
            Sec. 4209.
      This section directs the Secretary to review current 
regulatory requirements regarding insurance coverage provided 
by household goods motor carriers to shippers. The review 
should determine whether the current regulations provide 
adequate protection, whether the shipper should purchase 
insurance as opposed to the carrier, and whether there are 
abuses of the current regulations that leave shippers 
unprotected.
Senate Bill
            Sec. 7411.
      Within one year after the date of enactment, the STB is 
required to complete a review of the Federal regulations 
regarding the level of liability protection provided by 
carriers to determine if current regulations provide adequate 
protection; whether shippers benefit from purchasing 
supplemental insurance coverage; and whether shippers are 
sometimes left unprotected. The STB also is required to make 
recommendations as to whether the current limitations on 
liability, known as the ``Carmack Amendment'', should be 
modified with respect to household goods movers.
Conference Substitute
      The Conference adopts the Senate approach as modified to 
strike the review of the ``Carmack Amendment''.

  SEC. 4216. APPLICATION OF STATE CONSUMER PROTECTION LAWS TO CERTAIN 
                        HOUSEHOLD GOODS CARRIERS

House Bill
            Sec. 4211.
      This section requires the GAO to conduct a study of the 
impact on motor carriers and shippers of household goods if 
State Attorneys General and consumer protection agencies were 
allowed to enforce their State consumer protection laws and 
regulations with respect to interstate transportation of 
household goods. The GAO shall provide a report to Congress on 
the results of this study within 18 months after the date of 
enactment.
Senate Bill
            Sec. 7414.
      Not later than one year after the date of enactment, the 
Secretary is required to report to Congress on the progress 
made in implementing the provisions of this title.
Conference Substitute
      The Conference adopts the House approach.

          Subtitle C--Unified Carrier Registration Act of 2005

                         SEC. 4301. SHORT TITLE

House Bill
      No provision.
Senate Bill
            Sec. 7131.
      The subtitle may be cited as the ``Unified Carrier 
Registration Act of 2005''.
Conference Substitute
      The conference adopts the Senate provision.

                 SEC. 4302. RELATIONSHIP TO OTHER LAWS

House Bill
      No provision.
Senate Bill
            Sec. 7132.
      The section would clarify that the subtitle is not 
intended to prohibit a State from enacting or enforcing any law 
or regulation with respect to motor carriers that is not 
otherwise prohibited by law.
Conference Substitute
      The conference adopts the Senate provision.

       SEC. 4303. INCLUSION OF MOTOR PRIVATE AND EXEMPT CARRIERS

House Bill
      No provision.
Senate Bill
            Sec. 7133.
      This section would amend 49 U.S.C. 13905 to define 
``registration'' for purposes of the UCRS and the UCRS Plan and 
Agreement as the filing by a carrier of a MCS Form 150 to 
obtain a DOT identification number. Registration includes those 
carriers who have obtained operating authority from the FMCSA, 
as well as those carriers exempt from the provisions of that 
chapter, such as intermodal carriers, transporters of 
agricultural products, private carriers, freight forwarders, 
brokers, and leasing companies. Although not affecting the 
levels or types of insurance required by private or for-hire 
carriers, the section extends the requirement to file evidence 
of financial responsibility in the amounts currently required 
by 49 U.S.C. 31138 and 31139 to all ''registered'' carriers. It 
does not affect the levels or types of insurance required by 
registered carriers. The section also would require the 
Secretary to prescribe the form of evidence that will be 
required of motor private carriers.
Conference Substitute
      The conference adopts the Senate provision.

             SEC. 4304. UNIFIED CARRIER REGISTRATION SYSTEM

House Bill
            Sec. 4117.
      This section repeals the single state registration system 
and requires FMCSA to complete a rule-making for an on-line 
registration system to replace the old registration system 
originally administered by the Interstate Commerce Commission. 
This rule- making must be completed within one year.
Senate Bill
            Sec. 7134.
      This section would direct the Secretary, in cooperation 
with States and industry representatives, to develop a single, 
on-line system, within one year following enactment, containing 
all records of motor carriers registered with DOT, including 
their safety data, DOT identification number (which will be 
replacing the MC number for all motor carriers), evidence of 
financial responsibility, and the service of process agents. 
Federal and State agencies, carriers, shippers and the public 
would have access to the system. The UCRS would replace the 
SSRS. The section also would require the Secretary to adopt 
procedures enabling a carrier to correct any erroneous data 
contained anywhere in the UCRS and sets the parameters for a 
fee system with respect to the filing and retrieval of 
information from the UCRS. The fee for a new registrant would 
be required as nearly as possible to cover the costs of 
processing the registration and conducting the safety audit or 
examination, if required, but could not exceed $300. The fee 
for filing evidence of financial responsibility could not 
exceed $10 per filing.
Conference Substitute
      The conference adopts the Senate provision.

          SEC. 4305. REGISTRATION OF MOTOR CARRIERS BY STATES

House Bill
      No provision.
Senate Bill
            Sec. 7135.
      The section would make it an unreasonable burden on 
interstate commerce for any State or political subdivision to 
impose, enact, or enforce any requirement or levy any fee on 
for-hire and private interstate motor carriers for: (1) 
registering the carrier's interstate operations with a State, 
(2) filing evidence of financial responsibility with a State, 
(3) filing the name of the local agent for service of process 
with a State, or (4) renewing intrastate authority, insurance 
filings, or other filing requirements if the carrier is 
registered with FMCSA and in compliance with other applicable 
State laws. Item (4) would not apply to certain carrier 
operations that are specifically exempted from preemption 
provisions, such as purely intrastate bus operations, 
intrastate transportation of household goods, non-consensual 
towing, and the transportation of waste and recyclables. The 
section would preserve the exemption for interstate carriers 
from State sales taxes and other fees if a State provides such 
an exemption to intrastate carriers. The section would not 
limit State fuel taxes or vehicle registration fees. The 
section also would establish a 15-member Board of Directors 
comprised of the Secretary of Transportation, representatives 
of participating States, and representatives of the trucking 
industry to govern the new program. The Board would be required 
to develop the rules and regulations that will govern UCRS and 
submit the rules and regulations to the Secretary for approval. 
States wishing to participate in UCRS would be required to 
submit a plan to the Secretary, within three years following 
enactment, identifying the State agency that will administer 
UCRS and containing assurances that an amount at least equal to 
the revenue derived from UCRS will be devoted to motor carrier 
safety. States declining to participate would lose the right to 
share in UCRS revenues. UCRS feeswould be determined by the 
UCRS Board of Directors with the approval of the Secretary and be based 
on the size of a carrier's commercial vehicle fleet. At least four, but 
no more than six, ranges of fleet size could be established by the 
Board for purposes of the fee structure. Brokers, non-vehicle operating 
freight forwarders, and leasing companies would pay the fee established 
for smallest carrier fleet. The level of fees could be adjusted if the 
revenues are deficient or exceed those needed to cover the systems cost 
and the revenues to which the States are entitled. Fees would be paid 
to the carrier's base-State, generally the State in which the carrier 
maintains its principal place of business. States that currently 
participate in the SSRS and choose to participate in UCRS would be 
guaranteed the revenues they derived from SSRS during the last fiscal 
year ending prior to enactment of this Act. States that did not 
participate in SSRS but opt to join UCRS would be entitled to annual 
revenues of not more than $500,000. The UCRS Board of Directors would 
determine the amount of UCRS revenues to which a State is entitled, 
with the approval of the Secretary. Each participating State would be 
entitled to retain funds equivalent to the revenues to which it is 
entitled. Excess funds would be deposited in a designated repository 
for distribution on a pro rata basis to those States which do not 
collect the full amount of the revenues to which they are entitled. 
Remaining funds would be used to offset the cost of the operation of 
UCRS. Any remaining funds after distribution to the States and payment 
of costs would be held in the repository and the next year's fees would 
be reduced accordingly. The section would allow the Secretary to 
request the Attorney General to bring a civil action to enforce the 
terms of the Plan and Agreement, including injunctive relief. States 
could impose fines and other penalties against any party that does not 
submit the required information or pay the required fees. States would 
be prohibited from requiring a carrier from having any indicia or other 
document as evidence of compliance. Finally, the section would allow a 
State to elect to apply the provision of UCRS to carriers that operate 
solely in intrastate commerce.
Conference Substitute
      The conference adopts the Senate provision with 
modifications.

                 SEC. 4306. IDENTIFICATION OF VEHICLES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7136.
      Section 7136 would prohibit a State or political 
subdivision from requiring a motor carrier, motor private 
carrier, or freight forwarder to display any additional form of 
identification on or in a commercial vehicle. The prohibition 
would not apply to credentials required under the International 
Registration Plan or the International Fuel Tax Agreement, or 
in connection with Federal hazardous materials regulations or 
Federal vehicle inspection standards.
Conference Substitute
      The conference adopts the Senate provision with 
modifications.

       SEC. 4307. USE OF UCR AGREEMENT REVENUES AS MATCHING FUNDS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7137.
      UCRS revenues may be used to meet a State's match for 
MCSAP funds.
Conference Substitute
      The conference adopts the Senate provision.

                         SEC. 4308. REGULATIONS

House Bill
      No comparable provision in the House bill.
Senate Bill
      This section allows the Secretary to establish 
regulations to carry out this subtitle.
Conference Substitute
      The conference adopts the Senate approach.

                           TITLE V--RESEARCH

                          Subtitle A--Funding

               SEC. 5101. AUTHORIZATION OF APPROPRIATIONS

House Bill
            Sec. 5101.
      This section provides authorizations for the programs in 
the Research Title. The Surface Transportation Research Program 
and the Technology Deployment program, which were separate 
programs in the Transportation Equity Act for the 21st Century 
(TEA 21), are now merged into one program--the Surface 
Transportation Research, Development, and Deployment Program.
Senate Bill
            Sec. 2001.
      This section authorizes sums out of the Highway Trust 
Fund (other than the Mass Transit Account) for Surface 
Transportation Research, the Surface Transportation-
Environmental Cooperative Research Program, Training and 
Education, the Bureau of Transportation Statistics, ITS 
Standards, Research, Operational Tests and Development, and 
University Transportation Centers. It provides for the period 
of availability of funds for obligation and the Federal share 
of project cost.
Conference Substitute
      This section reauthorizes programs in the Research title 
including the Surface Transportation Research, Development, and 
Deployment Program; Training and Education; Bureau of 
Transportation Statistics; University Transportation Research; 
and ITS Research.

                     SEC. 5102. OBLIGATION CEILING

House Bill
            Sec. 5102.
      This section establishes the obligation ceiling for 
fiscal years 2004 through 2009.
Senate Bill
            Sec. 2002.
      This section sets limits on obligations for spending 
under Title II for Transportation Research.
Conference Substitute
      This section sets the obligation ceiling for spending 
under this Title.

                          SEC. 5103. FINDINGS

House Bill
            Sec. 5103.
      This section includes congressional findings related to 
the importance of transportation research and development.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

            Subtitle B--Research, Technology, and Education

             SEC. 5201. RESEARCH, TECHNOLOGY AND EDUCATION

House Bill
            Sec. 5201.
      This section establishes basic principles for 
transportation research, including the federal responsibility 
and role, stakeholder input, competition, and performance 
review. This section provides the Secretary with authority to 
enter into cooperative agreements and establishes a mechanism 
to facilitate ``pooled funding'' of projects when several 
states wish to fund a research project of common interest to 
those states.
      One of the principles governing research and technology 
investments directs that the Federal highway research program 
would become more oriented toward exploratory advanced 
research. The 20-year Long-Term Pavement Performance Program, 
initiated in the late 1980's will be continued to its 
conclusion in 2009. The role and function of the Turner-
Fairbank Highway Research Center is codified in law.
Senate Bill
            Sec. 2101. Subsection 502.
      This subsection authorizes the Secretary to carry out 
research, development, testing, and technology transfer 
activities. The Secretary may, independently or in cooperation 
with others, carry out activities in research, development, and 
technology transfer activities. In addition, the Secretary may 
test, develop, or assist in testing and developing any 
material, invention, patented article, or process. Research 
activities must be consistent with the strategic plan required 
under section 508. All parties entering into contracts, 
cooperative agreements, or other transactions with the 
Secretary to perform research or provide technical assistance 
shall be selected on a competitive basis and on the basis of a 
peer review. The Federal share of the cost of activities 
carried out under a cooperative research and development 
agreement shall not exceed 50 percent, unless otherwise 
approved by the Secretary.
      The subsection establishes a new Advanced Long-Term 
Research program. Also established are a high-performance 
concrete bridge research program, a high-performing steel 
bridge program, and a biobased transportation research program. 
The high-performance concrete bridge research program includes 
funding to carry out demonstration projects involving the use 
of ultra-high performance concrete with ductility. The Seismic 
Research Program, Long-Term Pavement Performance Program 
(LTPP), and the Infrastructure Investment Needs Report are 
continued. The subsection concludes the LTPP on September 30, 
2009. The due dates for the infrastructure needs report is 
changed from January 31 to July 31. This subsection also 
requires the Secretary, in consultation with the Secretary of 
Homeland Security, to develop a 5-year strategic plan for 
research and technology transfer and deployment activities 
pertaining to the security aspects of highway infrastructure 
and operations aspects.
Conference Substitute
      The Conference adopts the House provision with 
modifications and additions from the Senate provision.
      Congress encourages the Department to use the Volpe 
Center as a source for transportation research and development 
and related activities. The Volpe Center is uniquely positioned 
to assist Executive Branch agencies in fulfilling 
transportation research and development initiatives, solving 
challenges related to integrating transportation and homeland 
security issues and achieving the letter and intent of 
legislative mandates associated with the continued 
authorization of Departmental activities.

  SEC. 5202. LONG-TERM BRIDGE PERFORMANCE PROGRAM; INNOVATIVE BRIDGE 
                    RESEARCH AND DEPLOYMENT PROGRAM

House Bill
            Sec. 5202.
      This section establishes a 20-year Long-Term Bridge 
Performance Program, modeled on the Long-Term Pavement 
Performance Program. An Innovative Bridge Research and 
Deployment program to demonstrate innovative designs and 
construction methods for the construction, repair and 
rehabilitation of bridges is established.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with some 
modifications and additions, including steel bridge testing. 
Programs under Senate section 2101, including high-performance 
steel bridge research and technology transfer program are added 
to the provision.

                    SEC. 5203. TECHNOLOGY DEPLOYMENT

House Bill
            Sec. 5204.
      This section establishes an Innovative Pavement Research 
and Deployment program to demonstrate innovative pavement 
technologies, practices, and performance. The goals of this 
program include new, cost-effective designs to extend pavement 
life and performance, and the reduction of both initial cost 
and life-cycle cost of pavements. A Safety Innovation 
Deployment Program is established to foster the deployment and 
evaluation of safety technologies and innovations at State and 
local levels.
Senate Bill
            Sec. 2101. Subsection 503.
      This subsection amends the Technology Deployment 
Initiatives and Partnerships Program and the Innovative Bridge 
Research and Construction Program under section 503, Title 23, 
U.S.C. The Technology Application Initiatives and Partnerships 
Program is established to accelerate the transportation 
community's adoption of innovative technologies. As amended, 
the focus on bridge structures under the Innovative Surface 
Transportation Infrastructure Research and Construction Program 
is expanded to include all highway structures.
Conference Substitute
      The Conference adopts the House provision with some 
modifications. Alternative materials, asphalt, and alkali 
silica reactivity (ASR) authorized under Senate section 2001 
are added to this section. Project and programs related to ASR 
should further development and deployment of techniques to 
prevent and mitigate alkali silica reactivity, including 
lithium based techniques, and assist states in inventorying 
existing structures for ASR.
      The Conference also provides for research on wood 
composite materials in multi-modal transportation facilities.

                   SEC. 5204. TRAINING AND EDUCATION

House Bill
            Sec. 5205.
      The National Highway Institute--the training office of 
the Federal Highway Administration--is continued and the 
general topics for courses that it develops and administers are 
specified. The Local Technical Assistance Program (LTAP) is 
reauthorized. The federal share for State LTAP grant recipients 
is up to 50 percent and the share for tribal technical 
assistance centers is 100 percent. Federal law is revised to 
allow states to spend NHS, IM, STP, CMAQ, and Bridge funds for 
transportation workforce development, training, and education. 
The federal share is 100 percent for the workforce development 
activities. This section also authorizes the Garrett A. Morgan 
Technology and Transportation Education program.
            Sec. 5206.
      This section establishes a Freight Planning Capacity 
Building Program to improve the capabilities of Metropolitan 
Planning Organizations (MPOs) and other planning agencies in 
transportation planning for freight.
Senate Bill
            Sec. 2101. Subsection 504.
      Section 504(a)(3) of title 23 is modified to emphasize 
asset management and the application of emerging technologies 
as two areas in which the Institute shall develop courses. The 
section identifies additional courses to be developed by the 
Institute, in consultation with state departments of 
transportation and the American Association of State Highway 
and Transportation Officials. Also included is the requirement 
for the Institute to periodically review courses and to make 
revisions or cease to offer courses as necessary. The cost for 
course development is now explicitly stated as part of the cost 
of training and education to be paid by a private entity or 
person, unless otherwise determined by the Secretary.
      Section 504(a)(7) of title 23 is modified by removing the 
limitation on the amount of fees that the Institute can collect 
in any fiscal year. Funds made available to carry out this 
section may now be combined with or held separately from fees 
collected under memoranda of understanding, regional compacts, 
and other similar agreements, in addition to being combined 
with or held separately from fees collected under this section 
as previously allowed.
      Changes to the Local Technical Assistance Program add 
incident response and operations as areas in which the 
Secretary can assist transportation agencies and governments 
under grants, cooperative agreements, and contracts. Where 
urbanized areas are cited, the qualifying definition of 
population sizes between 50,000 and 100,000 is no longer 
included. Finally, ``regional cooperation'' is promoted under 
Section 504(2)(C) as an area for assisting urban transportation 
agencies.
      The Dwight David Eisenhower Transportation Fellowship 
Program is continued to allow the Secretary to make grants for 
research fellowships for the purpose of attracting qualified 
students to the field of transportation.
Conference Substitute
      The Conference adopts the House provision with some 
modifications to include Senate language on LTAP, ``Courses,'' 
and definitions.

                 SEC. 5205. STATE PLANNING AND RESEARCH

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 2101. Subsection 505.
      This subsection amends the program of funding to States 
for research, development, and technology transfer activities. 
The section now provides for the sliding scale to be applicable 
to the Federal share of the cost of a project (i.e., 80% unless 
determined otherwise by the Secretary). This subsection adds 
that State Planning and Research (SPR) funds may be used for 
the purposes authorized under the International Highway 
Transportation Outreach Program of section 506.
Conference Substitute
      The Conference adopts the Senate provision.

    SEC. 5206. INTERNATIONAL HIGHWAY TRANSPORTATION OUTREACH PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 2101. Subsection 506.
      The International Highway Transportation Outreach Program 
under section 506, title 23 U.S.C. is continued. A new 
provision requires that for each fiscal year, the Secretary 
submits a report to Congress that describes the destinations 
and costs of international travel conducted in carrying out 
activities under this program.
Conference Substitute
      The Conference adopts the Senate provision.

SEC. 5207. SURFACE TRANSPORTATION ENVIRONMENT AND PLANNING COOPERATIVE 
                            RESEARCH PROGRAM

House Bill
            Sec. 5203.
      This section establishes a new research program to study 
the interaction between transportation and the environment. The 
program will be managed and administered by the National 
Academy of Sciences. An Advisory Committee, appointed by the 
Secretary, and with a balanced membership representing 
transportation and environmental perspectives, will recommend 
the national research agenda for this program.
Senate Bill
            Sec. 2101. Subsection 507.
      The Surface Transportation-Environment Cooperative 
Research Program under title 23 is modified to include a 
provision for the Secretary to administer the program and 
sharpen the focus of the research through stakeholder input via 
workshops, symposia, and expert panel.
Conference Substitute
      The Conference adopts the Senate provision. The 
Conference notes the need to understand the complex 
relationship between surface transportation and the 
environment.

 SEC. 5208. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC PLANNING

House Bill
            Sec. 5213.
      This section directs the Secretary to develop a five-year 
strategic plan for transportation research and development. The 
plan will describe the primary purposes of the transportation 
research and development program and describe the topic areas 
the Department intends to pursue to accomplish each purpose.
Senate Bill
            Sec. 2101. Subsection 508.
      The subsection continues the requirement of the Secretary 
to establish a strategic planning process for research and adds 
a provision for establishing a Surface Transportation Research 
Technology Advisory Committee to provide program advice to the 
Secretary.
Conference Substitute
      The Conference adopts the House provision.

SEC. 5209. NATIONAL COOPERATIVE FREIGHT TRANSPORTATION RESEARCH PROGRAM

House Bill
            Sec. 5208.
      The National Academy of Sciences will manage and 
administer a freight transportation research program. The 
program's purpose is to discover improved ways to provide 
surface transportation mobility for freight movement. An 
Advisory Committee will be appointed by the Academy and will 
include a representative cross-section of freight stakeholders. 
The Advisory Committee is directed to recommend a national 
research agenda for this program.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

          SEC. 5210. FUTURE STRATEGIC HIGHWAY RESEARCH PROGRAM

House Bill
            Sec. 5209.
      This section establishes the Future Strategic Highway 
Research Program (F-SHRP), which is to be carried out by the 
National Academy of Sciences. F-SHRP is modeled on the 
Strategic Highway Research Program that was established by 
Congress in 1987. TEA 21 directed a study be conducted to 
determine the research agenda for a new strategic highway 
research program. F-SHRP will carry out the recommendations 
made by the study and will focus on four specific research 
areas--renewal of aging highway infrastructure, human factors 
related to highway safety, reducing highway congestion, and 
planning and designing new highway capacity. Projects and 
researchers will be selected to conduct research for the 
program on the basis of merit and open solicitation of 
proposals.
            Sec. 5214.
      This section makes claims against the National Academy of 
Sciences, for activities conducted under 510 U.S.C. 23, subject 
to the same limitations and exceptions applicable to claims 
against the United States.
Senate Bill
            Sec. 2101. Subsection 509.
      This subsection establishes a new strategic highway 
program based on the Future Strategic Highway Research Program 
(F-SHRP) recommended in TRB Special Report 260: Strategic 
Highway Research: Saving Lives, Reducing Congestion, Improving 
Quality of Lives. Under this program, the National Research 
Council shall establish and carry out the strategic highway 
program. The program shall consider, at a minimum, the results 
of studies relating to the implementation of the Strategic 
Highway Safety Plan prepared by the American Association of 
State Highway and Transportation Officials (AASHTO). In 
administering the program, the National Research Council shall 
acquire a qualified, permanent core staff, and ensure that 
identified stakeholders are involved in the program.
      Before October 1, 2007, the Secretary is required to 
enter into a contract with the TRB for completing a report on 
implementing results of the new strategic highway program. The 
Secretary shall submit the report to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of 
Representatives.
Conference Substitute
      The Conference adopts the House provision.

        SEC. 5211. MULTISTATE CORRIDOR OPERATIONS AND MANAGEMENT

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 2101. Subsection 511.
      This subsection provides for grants to the Interstate 
Route I-95 corridor coalition for intelligent transportation 
system management and operations.
Conference Substitute
      The Conference adopts the Senate provision.

         Subtitle C--Intelligent Transportation System Research

                  SEC. 5301. NATIONAL ITS PROGRAM PLAN

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 2201. Subsection 525.
      This subsection continues the requirement for the 
Secretary to develop a National Program Plan for ITS. The 
National ITS program addresses program goals, objectives, and 
milestones, and must be maintained and updated as necessary and 
submitted to Congress as part of the Surface Transportation 
Research Strategic Plan.
Conference Substitute
      The Conference adopts the Senate provision.

                        SEC. 5302. USE OF FUNDS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 2201. Subsection 529.
      This subsection authorizes funding for ITS outreach 
materials and items.
Conference Substitute
      The Conference adopts the Senate provision with a 
reduction in the authorized amount.

                     SEC. 5303. GOALS AND PURPOSES

House Bill
            Sec. 5602.
      The goals and purposes of the Intelligent Transportation 
Systems Program are articulated. While the wording is different 
from TEA 21, the substance is similar.
Senate Bill
            Sec. 2102. Subsection 522.
      This subsection modifies the goals and purposes of the 
ITS program. New goals are added to reflect the expanded 
interests for the program. Other modifications reflect changes 
in emphasis for a number of program activities.
Conference Substitute
      The Conference adopts the House provision.

                 SEC. 5304. INFRASTRUCTURE DEVELOPMENT

House Bill
            Sec. 5606.
      This section states that funds made available in this 
subtitle shall be used for ITS infrastructure and not for 
conventional highway and transit infrastructure.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

            SEC. 5305. GENERAL AUTHORITIES AND REQUIREMENTS

House Bill
            Sec. 5603.
      This section grants the Secretary authority to use an 
advisory committee to carry out this subtitle.
Senate Bill
            Sec. 2201. Subsection 524.
      This subsection makes changes to general authorities and 
requirements under TEA-21 that provide ITS program scope, 
policy, and the requirements of the Secretary. The Secretary is 
required to consult with the Secretary of Homeland Security 
along with other Federal officials. This subsection adds 
requirements for the program advisory committee authorized by 
section 5204(h) of TEA-21, and also includes the amount of 
funding available for the committee. Also, the Secretary is 
required to issue revised guidelines and requirements for 
evaluating operational test and other projects.
Conference Substitute
      The Conference adopts the House provision.

                  SEC. 5306. RESEARCH AND DEVELOPMENT

House Bill
            Sec. 5605.
      The Secretary is directed to carry out a comprehensive 
Intelligent Transportation Systems research, development, and 
operational test program with priority given to enhancing 
mobility and productivity, enhancing safety, and integrating 
vehicle and infrastructure technologies.
Senate Bill
            Sec. 2102. Subsection 528.
      This subsection continues ITS research and development 
program authorized under TEA-21. Under this subsection, the 
types of projects and activities that receive funding priority 
are greatly broadened. Changes reflect new focus areas, 
including activities to support goals for a national 5-1-1 
traveler information system and reducing metropolitan 
congestion by 5 percent by 2010.
Conference Substitute
      The Conference adopts the House provision, with the 
inclusion of two items from the Senate priority list.

             SEC. 5307. NATIONAL ARCHITECTURE AND STANDARDS

House Bill
            Sec. 5604.
      The Secretary is directed to develop, implement and 
maintain a national architecture for Intelligent Transportation 
Systems, as well as the supporting standards and protocols, to 
promote the widespread use of Intelligent Transportation 
Systems. The Secretary shall designate a panel of experts to 
advise the Secretary on ways to expedite development of 
standards. Any Intelligent Transportation Systems projects that 
use Highway Trust Fund monies shall conform to the national 
architecture and applicable standards.
Senate Bill
            Sec. 2102. Subsection 526.
      This subsection continues the general requirements and 
activities related to the national architecture and standards. 
Changes under this subsection reflect the completion of several 
requirements specified in TEA-21. These include the report to 
Congress on critical standards and the provision for a 
communication spectrum for ITS. Deployment is no longer 
emphasized as a direct activity of the Secretary. Exceptions to 
conformity with the national ITS architecture no longer include 
upgrades or expansions of existing systems, as allowed under 
TEA-21.
Conference Substitute
      The Conference adopts the House provision.

        SEC. 5308. ROAD WEATHER RESEARCH AND DEVELOPMENT PROGRAM

House Bill
            Sec. 5607.
      This section establishes a program to enhance the 
development and use of road weather information and 
technologies.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

        SEC. 5309. CENTERS FOR SURFACE TRANSPORTATION EXCELLENCE

House Bill
            Sec. 5610.
      This section directs the Secretary to establish three 
centers for surface transportation excellence--including 
centers for environmental excellence, rural safety, and project 
finance--and outlines the goals, roles, and administration of 
the centers.
Senate Bill
            Sec. 2103.
      This section establishes five centers for surface 
transportation excellence in areas of Environmental Excellence, 
Operations Excellence, Excellence in Surface Transportation 
Safety, Excellence in Project Finance, and Excellence in Asset 
Management.
Conference Substitute
      The Conference adopts the House provision with 
modifications.

                         SEC. 5310. DEFINITIONS

House Bill
            Sec. 5608.
      This section defines key terms, including ITS, 
Intelligent Transportation Infrastructure, National 
Architecture, Standard, and Transportation Systems Management 
and Operations.
Senate Bill
            Sec. 2102.
              Subsection 523.
      This subsection deletes the word `corridor' from terms 
used in the new subtitle to reflect the deletion of the 
corridor development program under TEA-21. Terms relating to 
commercial vehicle operations are moved to the subsection on 
commercial vehicle systems.
Conference Substitute
      The Conference adopts the House provision with the 
addition of ``photonics'' to the ITS definitions.

      Subtitle D--University Transportation Research; Scholarship 
                             Opportunities

         SEC. 5401. NATIONAL UNIVERSITY TRANSPORTATION CENTERS

House Bill
            Sec. 5301.
      This section provides for national university 
transportation centers and states that the role of such centers 
shall be to advance significantly transportation research on 
critical national transportation issues and to expand the 
workforce of transportation professionals.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with some 
modifications. The number of National University Transportation 
Centers is increased from five to ten.

             SEC. 5402. UNIVERSITY TRANSPORTATION RESEARCH

House Bill
            Sec. 5302.
      This section provides for grants to be made to University 
Transportation Centers (UTCs). Funding is available to ten 
Regional University Transportation Centers, ten Tier I Centers, 
and ten Tier II Centers. The purpose of UTCs is to 
significantly advance the state-of-the-art in transportation 
research and expand the workforce of transportation 
professionals through research, education and technology 
transfer. Regional UTCs, Tier I Centers, and Tier II Centers 
will be subject to competitive selection every four years and 
all institutions must meet eligibility criteria to qualify for 
competition. The research and education activities of each 
Center must support a national strategy for surface 
transportation research. Each Center must match each dollar of 
federal grant funds with one dollar of local funds.
Senate Bill
            Sec. 2101. Subsection 510.
      This subsection modifies the existing university 
transportation research program. Awards are increased from 
thirty three (33) to forty (40) eligible institutions. The 
subsection continues the establishment of one (1) regional 
center at institutions in each of the ten (10) Federal regions. 
A new provision allows locating no more than one center (or one 
lead university in a consortia) in any State. Regional centers 
are selected based on proposals requested by the Secretary; the 
section provides for naming the remaining institutions. All 
grantees must otherwise meet specified requirements that 
include a 6-year program plan and annual report to the 
Secretary on projects and activities. A peer review is required 
for reports on research under this program. The Secretary must 
coordinate activities of the centers and operate a 
clearinghouse for the dissemination of results from activities. 
Restrictions have been placed on the amount of funds available 
to centers that can be used for faculty positions, laboratory 
facilities, student internships, and administration.
Conference Substitute
      The Conference adopts the House provision with some 
modifications. There will be twenty-two strategically 
designated Tier II Centers as well as updated competition dates 
for Regional and Tier I Centers.

                       Subtitle E--Other Programs

SEC. 5501. TRANSPORTATION SAFETY INFORMATION MANAGEMENT SYSTEM PROJECT

House Bill
            Sec. 5210.
      Funding is provided over two years to develop a software 
system that will link driver licensing, vehicle registration, 
roadway inventory, and motor carrier databases. The purpose of 
this system is to more easily identify the cause of accidents, 
injuries, and fatalities, so that appropriate countermeasures 
can be developed.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

SEC. 5502. SURFACE TRANSPORTATION CONGESTION RELIEF SOLUTIONS RESEARCH 
                               INITIATIVE

House Bill
            Sec. 5211.
      Two independent research programs are established to 
assist State DOTs and MPOs in measuring and addressing surface 
transportation congestion problems. These research programs 
will focus on the effectiveness of Congestion Management 
Systems and identify the best methods for acquiring and 
reporting congestion information. Funding is included for 
technical assistance and training.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

               SEC. 5503. MOTOR CARRIER EFFICIENCY STUDY

House Bill
            Sec. 5212.
      This section provides funding to study the use of 
wireless technology to improve the safety and productivity of 
motor carrier freight transportation. The study will assess use 
of wireless technologies in fuel monitoring and management, 
Radio Frequency Identification technology, electronic manifest 
systems, and cargo theft prevention.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

     SEC. 5504. CENTER FOR TRANSPORTATION ADVANCEMENT AND REGIONAL 
                              DEVELOPMENT

House Bill
            Sec. 5215.
      This section establishes a Center for Transportation 
Advancement and Regional Development to assist, through 
training and research, the development of rural and small 
metropolitan transportation systems.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

      SEC. 5505. TRANSPORTATION SCHOLARSHIP OPPORTUNITIES PROGRAM

House Bill
            Sec. 5303.
      This section authorizes the Secretary to establish a 
scholarship program to attract qualified students for 
transportation-related critical jobs.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The conference adopts the House provision.

 SEC. 5506. COMMERCIAL REMOTE SENSING PRODUCTS AND SPATIAL INFORMATION 
                              TECHNOLOGIES

House Bill
            Sec. 5402.
      This section directs the Secretary, in cooperation with 
NASA and a consortium of university research centers, to carry 
out a program to validate commercial remote sensing products 
and spatial information technologies for application to 
transportation infrastructure.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision with 
modifications.

       SEC. 5507. RURAL INTERSTATE CORRIDOR COMMUNICATIONS STUDY

House Bill
            Sec. 5609.
      This section provides funding for a study on the 
feasibility of installing fiber optic cabling and wireless 
communication infrastructure along Interstate route corridors 
for improved communications services to rural communities.
Senate Bill
      No comparable section in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

   SEC. 5508. TRANSPORTATION TECHNOLOGY INNOVATION AND DEMONSTRATION 
                                PROGRAM

House Bill
            Sec. 5403.
      This section continues the Intelligent Transportation 
Infrastructure demonstration initiative enacted under section 
5117 of TEA-21.
Senate Bill
            Sec. 2105.
      This section continues the Intelligent Transportation 
Infrastructure demonstration initiative by authorizing 
$4,465,409 in funds from the Highway Trust Fund for fiscal 
years 2005 through 2009. The section also exempts ITS project 
involved under the program that include privately-owned 
components from State laws that regulate or prohibit commercial 
activities on highways funded with Federal-aid highways funds.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

                           SEC. 5509. REPEAL

House Bill
            Sec. 5611.
      The Intelligent Transportation Systems subtitle in TEA 21 
is repealed and replaced by the sections 5601-5608 described 
above.
Senate Bill
            Sec. 2201. Subsection 529(b).
      The Intelligent Transportation Systems subtitle in TEA 21 
is repealed and replaced by the sections 5601-5608 described 
above.
Conference Substitute
      The Conference adopts the House provision.

                           SEC. 5510. NOTICE

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 2003.
      This section outlines requirements for the Department of 
Transportation to notify the appropriate committees of Congress 
should any reprogramming of authorized funds or reorganization 
take place.
Conference Substitute
      The Conference adopts the Senate provision.

           SEC. 5511. MOTORCYCLE CRASH CAUSATION STUDY GRANTS

House Bill
            Sec. 2006.
      The Secretary is required to conduct a study of the 
causes of motorcycle crashes and to submit a report to Congress 
on the results of the study not later than 3 years after the 
date of enactment of this legislation.
Senate Bill
            Sec. 2104.
      This section provides the Secretary with the authority to 
issue grants to conduct motorcycle crash causation studies.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

       SEC. 5512. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM

House Bill
            Sec. 5207.
      TRANSIMS is a state-of-the-art travel forecasting model 
that will have special utility for large MPOs in areas with air 
quality problems. Funding grants to states and MPOs will 
support deployment of this forecasting model.
Senate Bill
            Sec. 2101. Subsection 512.
      This subsection continues the deployment of the advanced 
transportation model known as the ``Transportation Analysis 
Simulation System.''
      This subsection allocates $893,082 from funds authorized 
for surface transportation research for fiscal years 2005 
through 2009 for the Transportation Analysis Simulation System 
(TRANSIMS). This subsection ensures that TRANSIMS is further 
developed for additional applications, that training and 
technical assistance for the implementation and application of 
the program is available for States, local governments and 
transportation planning organizations, that a method is 
developed to simulate the national transportation 
infrastructure as a single integrated system, and that funding 
is provided for the implementation of the TRANSIMS.
Conference Substitute
      The Conference adopts the House provision with 
modifications.

                       SEC. 5513. RESEARCH GRANTS

House Bill
      No comparable provision in House bill.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference creates a provision for transportation 
research grants.

   SEC. 5514. COMPETITION FOR SPECIFICATION OF ALTERNATIVE TYPES OF 
                             CULVERT PIPES

House Bill
      No comparable provision in House bill.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference creates a provision ensuring States 
provide for relevant competition.

            Subtitle F--Bureau of Transportation Statistics

             SEC. 5601. BUREAU OF TRANSPORTATION STATISTICS

House Bill
            Sec. 5501.
      This section provides for the appointment of the Director 
of the Bureau of Transportation Statistics (BTS) and defines 
the Director's responsibilities. The National Transportation 
Library is retained as part of BTS's activities. Several 
provisions are included on the collection of freight data, 
including a requirement for mandatory response by corporations 
to BTS requests for data. Safeguards are provided to prevent 
disclosure of freight data that can be identified with any 
corporation or individual. An Advisory Council on 
Transportation Statistics is established.
            Sec. 5502.
      This section describes uses and limits of reports 
produced by the Bureau of Transportation Statistics.
Senate Bill
            Sec. 2102.
      This section provides for activities of the Bureau of 
Transportation Statistics relating to transportation data 
collection and statistical analysis. The section requires that 
not later than 90 days after the date of enactment of this Act, 
the Secretary shall provide a grant to, or enter into a 
cooperative agreement or contract with the Transportation 
Research Board to conduct a study of data collection and 
statistical analysis efforts. The Board shall submit to the 
Secretary, the Committee on Environment and Public Works of the 
Senate, and the Committee on Transportation and Infrastructure 
of the House of Representatives a final report on the results 
of the study. The Bureau shall, to the maximum extent 
practicable, implement recommendations included in the study. 
The Comptroller General of the United States shall also conduct 
a review of the study. Each year, beginning in 2004, the Bureau 
shall prepare and submit to the Secretary an annual report on 
progress made in response to the study recommendations.
Conference Substitute
      The Conference adopts the House provision.

         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY

                 SECTION 6001. TRANSPORTATION PLANNING

House Bill
            Sec. 6001.
      This section creates a new chapter 52 in title 49 to 
address transportation planning and environmental review for 
transportation projects. Existing planning provisions for the 
highway (sections 134 and 135 in title 23) and transit programs 
(sections 5303-5305 in title 49) are combined to form a unified 
planning title. Minor adjustments are made to eliminate 
inconsistencies and to reflect updated terminologies and 
practices.
      The section also extends the update cycle of metropolitan 
long-range transportation plans from 3 years under current 
regulation to 4 years. It extends the update cycle of 
metropolitan transportation improvement programs (TIPs) from 2 
years under current law to 4 years. It requires MPOs to include 
in their TIPs projects that are designed to meet the set-aside 
requirements (for a portion of a state's annual apportionments 
for NHS, CMAQ, STP, Interstate Maintenance, and Bridge 
programs) for congestion relief activities as mandated under 
section 139 of title 23.
      The section similarly extends the update cycle of state 
transportation improvement programs from 2 years to 4 years. It 
requires the state transportation improvement program to 
reflect the priorities for congestion relief activities that 
are included in the metropolitan TIPs.

                    Subchapter A--General Provisions

Section 5201. Definitions.
      All transportation planning definitions used throughout 
chapter 52, title 49 U.S.C. are included in this section.

                 Subchapter B--Transportation Planning

Section 5211. Policy.
      This section is consistent with section 134 of title 23, 
United States Code and metropolitan planning provisions in 
sections 5303 and 5304 of title 49, United States Code.
Section 5212. Definitions.
      Definitions from section 101(a) of title 23 and section 
5302 are applicable to this subchapter. In subsection (b) six 
definitions used in this subchapter are listed. These include 
metropolitan planning area, metropolitan planning organization, 
non-metropolitan area, non-metropolitan local official, TIP, 
and urbanized area.
Section 5213. Metropolitan Transportation Planning.
      Subsection (a) describes the general requirements for 
metropolitan transportation planning. More specifically, it 
directs MPOs, in cooperation with States and public 
transportation operators, to develop long-range transportation 
plans and transportation improvement programs. These plans and 
Transportation Improvement Programs (TIPs) will encompass all 
modes of transportation and will be intermodal in nature.
      Subsection (b) specifies the method by which MPOs are 
designated. Every urbanized area with a population of more than 
50,000 people will have an MPO either by agreement between the 
Governor and local officials representing at least 75 percent 
of the affected population or in accordance with State and 
local law. Each MPO will consist of local officials, officials 
of major local metropolitan transportation agencies and 
appropriate State officials. Once an MPO is designated, it will 
remain so designated until it is redesignated under the 
procedures outlined in Section 5213(b)(5) or (6).
      Subsection (c) describes the methods for determining the 
boundaries of metropolitan planning areas that do not cross 
State lines. This subsection is consistent with section 134(c) 
of title 23, United States Code.
      Subsection (d) outlines methods for coordinating the 
planning process between responsible parties in metropolitan 
areas spanning two or more states.
      Subsection (e) involves coordination and consultation 
between MPOs in the event of jurisdictional conflicts. This 
must occur in cases in which more than one MPO has jurisdiction 
over an area or an area is designated as a nonattainment area 
for ozone or carbon monoxide under the Clean Air Act. 
Coordination between MPOs will also occur if a transportation 
improvement funded by the Highway Trust Fund (HTF) runs through 
more than one MPO.
      Section 5213(e)(3) provides that when planning 
transportation projects, the Secretary will encourage each MPO 
to consult with officials involved in planning activities that 
are affected by transportation in the area. These affected 
activities include such things as State and local planned 
growth, economic development, environmental protection, airport 
operations, and freight movements. The subsection also requires 
that transportation plans consider other transportation 
services within the metropolitan area that are provided by 
other governmental agencies and nonprofit organizations, so 
that metropolitan transportation services can be more 
coordinated.
      Section (f) outlines the goals and objectives MPOs should 
strive to attain when planning area transportation projects. 
Projects should support economic vitality, increase the safety 
and security of the transportation system, increase 
accessibility and mobility for both people and freight, protect 
and enhance the environment, promote integration between the 
various modes of transportation, as well as maintaining 
efficiency of the current transportation system. This 
subsection also states that failure to consider any and all of 
the objectives described in Section 5213(f)(1) may not be 
reviewed by any court.
      Subsection (g) details the contents of transportation 
plans and the process MPOs must follow when developing such 
plans.
      Subsection (h) details the contents of metropolitan 
transportation improvement programs (TIPs) and the process MPOs 
must follow when developing TIPs. Included in each TIP should 
be a funding estimate, a priority project list, a description 
of each project, and a financial plan. TIPs will be published 
for public comment. Unlike current law section 134(h)(1)(D) of 
title 23, U.S.C., this subsection specifically details that 
TIPs must be updated at least every 4 years, as opposed to 
every 2 years under current law. This section requires the 
project description in the TIP to include sufficient 
descriptive material, such as the ``type of work, termini, 
length, and other similar factors'', to identify the project or 
phase of the project. In addition, the TIP shall include a 
listing of congestion relief activities in 5213(h)(2)(D).
      Subsection (i) involves transportation management areas, 
which are defined as urbanized areas with a population over 
200,000. The transportation plans in these areas are based on a 
continuing and comprehensive planning process carried out by 
the MPO. Congestion management is achieved through the use of 
travel demand reduction and operational management strategies. 
Congestion relief activities under section 139 of title 23 are 
also to be used. The Secretary must certify that the planning 
process for each transportation management area is being 
carried out in accordance with Federal law no less often than 
every 4 years. This is a change from current law, which 
mandates certification every 3 years. The Secretary has the 
authority to withhold up to 20 percent of the funds 
attributable to the MPO if the metropolitan planning process of 
an MPO serving a transportation management area is not 
certified.
      Subsection (j) gives the Secretary the authority to 
permit an abbreviated transportation plan and a TIP for a 
metropolitan planning area if deemed appropriate, except if the 
metropolitan planning area is in nonattainment for ozone or 
carbon monoxide under the Clean Air Act.
      Subsection 134(k) of 23 U.S.C. under current law, 
concerning funds for highways and transit being transferred to 
the Secretary in accordance with title 23, has been deleted 
because the transferability provisions contained in section 
104(k) of title 23 already apply to all transfers of highway 
funds to transit, and to the transfer of transit funds to 
highways.
      Subsection (k) is consistent with subsection 134(l) of 
current law and states that a metropolitan planning area 
classified as nonattainment for ozone and carbon monoxide under 
the Clean Air Act may not receive funds for any highway project 
that will result in a significant increase in single-occupant 
vehicles. The only exception would be if the project were 
addressed through a congestion management process.
      Subsection (l) is consistent with subsection 134(m) of 
current law. This section states that MPOs do not have the 
authority to impose legal requirements on any transportation 
facility, provider, or project not eligible under title 23, 
United States Code or chapter 53 of title 49, United States 
Code.
      Subsection (m) is consistent with section 134(n) of title 
23, United States Code and specifies that funding for the 
metropolitan transportation planning shall be provided under 
section 104(f) of title 23 and under section 5338(c) of title 
49, United States Code.
      Subsection 134(n) is consistent with existing law 
subsection 5213(n) and section 134(o) of title 23. It restates 
current methods of review for projects included in plans and 
programs under the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.).
Section 5214. Statewide Transportation Planning.
      Subsection (a) requires states to develop statewide 
transportation plans, to cover a period of 4 years and to be 
updated every 4 years. The statewide transportation plan must 
provide for integrated transportation facilities, including 
accessible facilities, and be intermodal in nature.
      Subsection (b) is consistent with subsection 135(b) of 
title 23, U.S.C., but adds new language to recognize the 
importance of coordinating trade and economic development with 
transportation planning. This subsection also requires the 
State to develop the transportation portion of the State 
implementation plan as required by the Clean Air Act (42 U.S.C. 
7401 et seq.)
      Subsection (d) regarding the scope of the planning 
process (under existing section 135(c)) is amended to reflect 
the concept that not only projects, but also transportation 
services, are developed through the planning process. In 
section 5214(d)(1)(A), the term ``non-metropolitan areas'' is 
inserted into this factor after ``States,'' to require States 
to consider economic vitality for rural areas.
      Subsection (e) corresponds to 135(d) in title 23, and 
lays out additional requirements for states to consider in 
carrying out planning.
      Subsection (f) is consistent with current law provisions 
regarding a state's development of 20-year, long-range 
transportation plans under section 135(e) of title 23, U.S.C.
      Subsection (g), regarding statewide transportation 
improvement programs, is consistent with subsection 135(f) of 
title 23, United States Code. This subsection has been 
reorganized and it deletes some current law provisions that 
have been superseded. Section 135(f)(1)(B)(ii)(II) required 
that States submit to the Secretary, within one year of TEA-
21's passage, the details of their consultation process with 
non-metropolitan officials. This requirement has been 
accomplished, so the provision has been eliminated.
      Subsection 5214(g)(4)(H) is a new provision to ensure 
that the transportation improvement program reflects the 
priorities for congestion relief required under section 139 of 
title 23, U.S.C., as added in this Act. Subsection 5214(g)(5) 
combines 135(f)(3)(A) and (B) of current law. This subsection, 
concerning project selection in areas with populations of less 
than 50,000 people, adds projects from state-managed public 
transportation programs authorized under sections 5310, 5311, 
5316, and 5317 of title 49, United States Code to the list of 
projects to be selected from the TIP by the State in 
consultation with affected local metropolitan transportation 
officials. Subsection 5214(g)(6) states that the Secretary must 
approve a transportation improvement program at least every 4 
years, as opposed to a biennial review mandated in current law.
      In subsection (h), funding for statewide transportation 
planning is provided under subsection 104(i) of title 23 and 
under section 5338(c) of title 49, United States Code.
      Subsections (i) and (j) are identical to existing law 
subsections 135(h) and 135(i), respectively.
            Sec. 6005.
      This section amends section 5213(d) of title 49, U.S.C., 
to direct that Congress must consent to interstate compacts 
between two or more states for cooperative transportation 
planning efforts. The Secretary will encourage Governors and 
members of multi-state MPOs to partake in interstate compacts 
consenting to cooperate in efforts to mutually assist 
interstate activities as well as establishing joint 
transportation agencies. The current law provisions regarding 
the Lake Tahoe Regional Planning Compact are included in this 
section.
            Sec. 6006.
      This section amends section 5213(g) of title 49, U.S.C. 
to specify that MPOs must prepare and update their 
transportation plans no less frequently than every 4 years. 
(The current law update cycle is ``according to a schedule that 
the Secretary determines to be appropriate,'' which has been 
determined by regulation to be every 3 years in nonattainment 
or maintenance areas and every 5 years in attainment areas.)
            Sec. 6007.
      This section amends section 5214(c) of title 49, U.S.C. 
to authorize States to enter into compacts or agreements for 
the purpose of formal planning cooperation and coordination, 
since some projects are multi-state in nature.
            Sec. 6008.
      This section directs the Secretary to issue regulations 
that are consistent with the unified transportation planning 
provisions in this title relating to the Clean Air Act.
Senate Bill
            Sec. 1501.
      This section amends 23 U.S.C. 134(f) and 135(c) to add 
factors that may be considered during the transportation 
planning process. It also gives States and metropolitan 
planning organizations (MPOs) the flexibility to determine, 
after soliciting and considering comment from the public, which 
of the specific factors are most appropriate for the State or 
metropolitan area to consider. Current language in the statute 
that bars court review of failure to consider specified 
planning factors is retained.
      Current law requires the planning process to provide for 
consideration of projects and strategies that will, among other 
things, protect and enhance the environment and improve quality 
of life. The items added by section 1501 provide planners with 
more direction as to what those concepts mean, but do not 
constitute a checklist with every item requiring consideration 
by every State and MPO. Instead, the legislation allows each 
State and MPO to decide which specific factors are appropriate 
for consideration. Early identification of potential 
environmental concerns may help reduce or avoid delays during 
environmental review. The Secretary is given no authority to 
review, for purposes of planning certification, the 
determination of appropriate factors made by a State or MPO.
            Sec. 1502.
      This section amends 23 U.S.C. 134(g) and 135(e) to 
require MPOs and States to consult with various other agencies 
when developing the long range transportation plan. 
Consultation shall include comparison of the transportation 
plan to conservation plans or maps and inventories of natural 
or historic resources (if such plans, maps or inventories are 
available) or consideration of areas where wildlife crossing 
structures may be needed. The section also requires that the 
long-range plan include a discussion of potential habitat, 
hydrological, and environmental mitigation activities that may 
assist in compensating for loss of habitat, wetlands and other 
environmental functions, including areas that may have the 
greatest potential to restore and maintain the habitat types 
and hydrological and environmental function affected by the 
plan.
      The requirement for transportation planners to consult 
with appropriate resource agencies to compare transportation 
plans with available State conservation plans or maps and 
available inventories of natural or historic resources, as well 
as to identify areas where wildlife crossing structures may be 
needed, will help planners to identify and potentially avoid or 
minimize impacts of transportation projects on these resources 
and thereby facilitate more efficient environmental reviews of 
individual projects. However, for various reasons including 
financial constraints, State conservation plans or maps or 
inventories of natural or historic resources do not exist for 
many areas. This legislation does not require the creation of 
such plans, maps, or inventories. Consideration of areas where 
wildlife crossing structures may be needed is required only 
with respect to transportation programs and strategies for the 
future. A review of the current infrastructure is not required. 
The discussion of potential mitigation activities and areas in 
which to carry out those activities is intended to encourage 
States to think strategically, particularly for habitat and 
wetlands mitigation. The level of detail of this discussion 
should correspond to the level of detail contained in the rest 
of the plan. For example, a conceptual transportation plan may, 
but is not required to, include specific size or location 
details that would generally be determined during the 
environmental review stage.
            Sec. 1504.
      This section amends 23 U.S.C. 134(g) and 135(e) to 
provide that States and MPOs improve public involvement in the 
planning process. To the maximum extent practicable, States and 
MPOs shall hold any public meetings at convenient and 
accessible locations and times, employ visualization 
techniques, and provide for publication of publicly available 
planning materials in electronically accessible formats, such 
as the world wide web.
      Use of advancing technology to publish plans and better 
articulate potential benefits and impacts of transportation 
plans will improve community awareness during the planning 
process. Early identification of community concerns may help 
reduce or avoid delays during the environmental review stage. 
MPOs, particularly small MPOs, and States have limited 
resources to apply toward meeting numerous planning 
requirements. Therefore, each MPO and State should use its own 
discretion in allocating resources for improved utilization of 
technology.
            Sec. 1704.
      This section amends title 23 to ensure metropolitan 
planning in certain areas. Section 1705 supplements funding for 
the transportation planning process with 1% of all funds 
apportioned through the Federal Lands Highway Program to the 
Lake Tahoe Region.
Conference Substitute
      The Conference adopts the House provisions with several 
modifications. First, it does not create a new chapter 52 of 
title 49, United States Code, but rather amends title 23 and 
chapter 53 of title 49, United States Code, to contain 
identical planning provisions (23 U.S.C. 134 and 49 U.S.C. 5303 
Metropolitan planning and 23 U.S.C. 135 and 49 U.S.C. 5304 
Statewide planning).
      The House provision is modified to require metropolitan 
plans to be updated every 5 years in areas designated 
attainment.
      Sections 134(h)(1)(B) and (C), and 135(d)(1)(B) and (C) 
modify existing law to give added emphasis to security and 
safety by making each a separate planning factor.
      The Conference adopts the Senate section 1502 modified to 
require a discussion of types of potential environmental 
mitigation activities and potential areas to carry out such 
activities in the plan and to require consultation, including, 
as appropriate, comparison of transportation plans with State 
conservation plans or maps, if available, or with inventories 
of natural or historic resources, if available
      The Conference incorporates a modified participation plan 
found in Senate section 6005 into the House provision. Senate 
section 1504 on methods of public participation and publication 
of the plan is also incorporated into the House provision.
      The modified House provision retains current law section 
134 of title 23 regarding the listing in the TIP of projects 
funded under chapter 2 of title 23, United States Code.
      The Conference adopts a modified rulemaking requirement 
found in Senate section 6005. The Secretary is required to 
issue, within 180 days of enactment, regulations specifying the 
types of data to be included in the required annual listing of 
projects.
      The Conference also removed references to activities and 
requirements under section 139 of title 23, United States Code, 
as proposed in the House bill since the Conference did not 
adopt that provision.
      The Conference adopts the Senate language on 
transportation planning funding for the Lake Tahoe region.
      The Conference does not adopt the House language 
requiring the Secretary to issue regulations implementing the 
changes to transportation planning relating to the Clean Air 
Act.

       SECTION 6002. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT 
                             DECISIONMAKING

House Bill
            Sec. 6002.
      Subsection (a) recognizes Enlibra principles as a sound 
basis for interaction among Federal, state, and local 
governments and Indian tribes. It encourages the adoption of 
these principles in the development of highway construction and 
transit projects. This section is intended as a statement of 
policy. It is not intended to establish enforceable rights or 
to modify any existing legal standards applicable to the 
environmental review process for such projects.
      Subsection (b) creates a new Subchapter C of Chapter 52 
of Title 49 to address efficient environmental reviews for 
project decisionmaking.

       Subchapter C--Efficient Environmental Reviews for Project 
                             Decisionmaking

Section 5251. Definitions and Applicability.
      This section sets forth definitions applicable to this 
subchapter.
Section 5252. Project Development Procedures.
      This section establishes comprehensive project 
development procedures for projects that require the approval 
of the U.S. Department of Transportation. These procedures must 
be followed for all projects that require preparation of an 
environmental impact statement (EIS) under NEPA and may be 
followed for any project that involves preparation of an 
environmental assessment (EA) or categorical exclusion (CE). 
The decision about whether to use these procedures for EA or CE 
projects is committed to the discretion of the Secretary of 
Transportation, acting in consultation with the project 
sponsor.
      Subsection (a) establishes the U.S. Department of 
Transportation as the lead agency in the environmental review 
process for any highway, transit, or multimodal project that 
requires the Department's approval. As the lead agency, the 
Department is responsible for the overall direction of the 
environmental review process. The specific responsibilities of 
the lead agency are defined in this section. This section also 
requires any project sponsor that is a state or local 
government entity receiving funds under Title 23 or Title 52 to 
serve as a ``joint lead agency'' in the environmental review 
process. The Federal lead agency and the State or local agency 
jointly constitute the ``lead agency'' for purposes of this 
section; accordingly, any decisions to be made by the lead 
agency under this section must be made jointly by the Federal 
lead agency and the State or local government that serves as 
project sponsor. A project sponsor that is not a State or local 
government (e.g., a project sponsor that is a private company) 
cannot serve as a joint lead agency.
      Subsection (b) establishes a new concept of a 
``participating agency.'' This concept is intended to be 
distinct from, and more inclusive than, the concept of a 
``cooperating agency'' as established in the Council on 
Environmental Quality (CEQ) regulations for the NEPA process. 
The status of ``cooperating agency'' generally has been 
assigned only to those agencies that are expected to play an 
extensive role--in particular, an agency that has a permitting 
responsibility with respect to a project. The term 
``participating agency'' is intended to be more inclusive, so 
that it encompasses all cooperating agencies as well as any 
other agencies that submit comments, participate in inter-
agency review meetings, or otherwise are engaged in the 
environmental review process. The lead agency must identify 
agencies that may have an interest in the project and extend an 
invitation to participate. The legislation specifically states 
that designation as a participating agency does not signify 
support for a project; it is simply a means of identifying the 
universe of agency participants who must be consulted by the 
lead agency during the process.
      Subsection (c) establishes a new requirement for a 
project initiation notice. The purpose of this requirement is 
to provide an opportunity for the project sponsor to identify 
the specific highway project, transit project, or multimodal 
project that is being proposed for evaluation in the 
environmental review process. At the discretion of the project 
sponsor, the project initiation notice may include a general 
description of policies, plans, studies, legislation, or other 
materials that relate to the proposed project. Such information 
shall be considered by the lead agency in determining the scope 
of review needed in the environmental review process, including 
decisions on issues such as the definition of the proposed 
action, the purpose and need, the range of alternatives, and 
the approach to evaluating secondary and cumulative impacts.
      Subsection (d) makes the lead agency responsible for 
defining the purpose and need, following an opportunity for 
involvement by other agencies and the public, and identifies 
the types of objectives that may be included in a statement of 
purpose and need. The level of involvement required under this 
section shall be determined by the lead agency on a case by 
case basis, taking into account the overall size and complexity 
of the project. The opportunity for involvement in developing 
the purpose and need may be combined with other public 
involvement and agency coordination activities, including 
involvement in developing the range of alternatives to be 
considered. The lead agency's definition of purpose and need is 
not binding on other agencies that have independent 
responsibilities to comply with NEPA. However, other agencies 
shall show substantial deference to the purpose and need as 
defined by the lead agency as required under applicable Council 
on Environmental Quality (CEQ) guidance, dated May 12, 2003; 
nothing in this section shall be construed to limit or override 
the guidance provided in that memorandum, or to preempt or 
limit any obligations to comply with the National Environmental 
Policy Act (NEPA) and the regulations issued to implement NEPA 
including those issued by CEQ. The list of project objectives 
provided in this section is not intended to be exhaustive; 
these are examples of the types of objectives that may be 
included in a purpose and need statement for a highway, 
transit, or multimodal project.
      Subsection (e) makes the lead agency responsible for 
defining the range of alternatives to be considered, following 
an opportunity for involvement by other agencies and the 
public. The level of involvement required under this section 
shall be determined by the lead agency on a case by case basis, 
taking into account the overall size and complexity of the 
project. The opportunity for involvement in determining the 
range of alternatives may be combined with other public 
involvement and agency coordination activities, including 
involvement in developing the purpose and need. This section 
also establishes that the lead agency is responsible for 
determining the methodologies to be used in evaluating 
alternatives, and requires that determination to be made in 
collaboration with the participating agencies. In this context, 
collaboration means a cooperative and interactive process. It 
is not necessary for the lead agency to reach consensus with 
the participating agencies on these issues; the lead agency 
must work cooperatively with the participating agencies and 
consider their views, but the leadagency remains responsible 
for decisionmaking. However, the intent is to require meaningful 
deliberation about alternatives, as evidenced by the subsection 
specifying that, should the lead agency develop a preferred 
alternative, this must not hinder impartial decisionmaking on other 
alternatives.
      Subsection (f) is intended to establish default comment 
deadlines that apply in the absence of a specific decision by 
the lead agency to allow a longer period for comments to be 
submitted. This section establishes 60 days as the norm for 
comments on a Draft EIS and 30 days for all other comment/
review periods. Lead agencies should provide public notice 
about when a comment period starts and concludes. The 
legislation allows the lead agency the flexibility to establish 
a shorter or longer time frame if there is good cause to do so. 
In addition, this section allows the lead agency to extend the 
comment deadline at any time in the environmental review 
process; while it is preferable to establish a realistic 
schedule as early as possible, this section does not establish 
a specific point in the process by which time extensions must 
be granted.
      Subsection (g) establishes a process for identifying and 
resolving issues that have the potential to delay the 
environmental review process or prevent an agency from granting 
a permit or other approval that is needed for a project. The 
participants in the environmental review process are encouraged 
to use similar procedures, to the extent practicable, to 
identify and resolve issues prior to initiation of the 
environmental review process. Nothing in this section is 
intended to preclude or limit any ongoing or future efforts by 
individual States to adopt procedures that call for agency 
coordination and dispute resolution efforts during the pre-NEPA 
planning stages of a project.
      Subsection (i) is intended to allow federal highway and 
transit funds to be provided to other State and Federal 
agencies to support activities that directly and meaningfully 
contribute to expediting and improving transportation project 
delivery. These funds may be used to support activities related 
to the review of a specific project during the environmental 
review process, such as reviewing and commenting on 
environmental documents or attending meetings. These funds also 
may be used to support activities that contribute to more 
efficient environmental reviews through early coordination 
activities prior to initiation of the environmental review 
(NEPA) process, and also may be used to support activities that 
contribute to improvements at a programmatic level, such as 
training of agency personnel, information gathering and 
mapping, and development of programmatic agreements.
            Sec. 6009.
      This section amends section 5252 of title 49, United 
States Code, by adding new subsections (j) and (k)
      Subsection 5252(j) provides that, except as set forth 
under subsection 5252(k), nothing in section 5252 shall affect 
the reviewability of any final Federal agency action in a court 
of the United States. A savings clause provides that nothing in 
section 5252 shall be construed as superseding, amending, or 
modifying NEPA or any other Federal environmental statute.
      Subsection 5252(k) establishes a 90-day period for filing 
any lawsuit challenging a permit, license, or approval issued 
by a federal agency for a highway or transit project. This 
period starts when the lead agency gives public notice that a 
final decision has been issued and that a 90-day period for 
requesting judicial review has begun. This limitation is 
intended to apply to any permit, license, or approval issued by 
a state agency acting under authority delegated by a federal 
agency pursuant to federal law. The purpose of this limitation 
is to ensure that any claims challenging a highway project for 
failure to comply with federal law are filed within 90 days 
after the final agency action that is the subject of the legal 
challenge.
Senate Bill
            Sec. 1511.
      Section 1511, subsection (a), creates a new section 326 
of title 23, U.S.C., which authorizes the use of and sets forth 
a process for agencies to prepare environmental review 
documents, studies, approvals, and permits required by Federal 
law for approval of a transportation project.
      Section 326(a) defines, for purposes of the section, the 
terms agency, environmental impact statement, environmental 
review process, project, project sponsor, and State 
transportation department. Subsection (b) establishes the 
Department as the lead agency and allows the process laid out 
in this section to be used by the lead agency either at the 
request of the project sponsor or with the concurrence of the 
project sponsor; (c) lists the responsibilities of the lead 
agency; and (d) sets out the responsibilities of the 
cooperating agencies.
      Section 326(e) directs the lead agency to develop a 
coordination plan, which shall include a workplan and a 
schedule. Default deadlines are included in the case of the 
collaborative process failing to establish comment deadlines. 
Subsections (f) and (g) describe the process for developing the 
project purpose and need and alternatives, respectively. 
Current standards are left unchanged, but opportunity for 
public comment is specifically provided.
      Section 326(h) sets out a process for resolving inter 
agency disputes that arise during the environmental review 
process; (i) directs the Secretary to establish a program to 
measure and report progress toward improving and expediting the 
planning and National Environmental Policy Act (NEPA) review 
process; (j) continues authority for the Secretary to provide 
funds to other agencies to assist them in carrying out the 
environmental review process for a project; and (k) clarifies 
that nothing in this section affects judicial review or the 
applicability of any Federal environmental statutes. Section 
1511, subsection (b) repeals section 1309 of the Transportation 
Equity Act for the 21st Century (112 Stat. 232). Section 
1511(c) clarifies that the repeal of section 1309 of TEA-21 and 
the enactment of section 1511(a) does not affect any existing 
State environmental review process, program, agreement or 
funding arrangement approved by the Secretary under section 
1309 of TEA-21.
      Section 1309 of TEA-21 directed the Secretary of 
Transportation to `develop and implement a coordinated 
environmental review process for highway construction and mass 
transit projects.' To date, regulations implementing section 
1309 have not been issued. Section 1511 of this legislation 
replaces section 1309 of TEA-21 and is intended to facilitate 
faster and more efficient completion of transportation projects 
without diminishing environmental protections contained in law.
      The process established is for complying with current 
environmental laws, it does not amend or override any current 
law. As in TEA-21, agencies are encouraged to conduct their 
reviews, analyses, and studies concurrently with the review 
required under the NEPA. Under this process, interested parties 
will be involved in the earlier stages of the review required 
under the NEPA.
      The Department, as the lead agency, will be responsible 
for identifying and inviting cooperating agencies; developing 
an agency coordination plan, including a workplan and a 
schedule; and determining the purpose and need of a project and 
the alternatives to be considered. Whereas current practice 
involves cooperating agency designations for only those few 
agencies that will play a major role in reviewing the project, 
this process expands the meaning of the term to include all 
agencies that have an interest in or special expertise 
regarding the project or its potential impacts.
      Public involvement is also enhanced under this process. 
In addition to leaving unchanged any current opportunities for 
public comment, this process includes new opportunity for 
public comment during the determination of project purpose and 
need and selection of alternatives to be considered.
      Finally, the legislation leaves unchanged the 
authorization from TEA-21 for States to use their Federal 
transportation dollars as assistance to resource agencies in 
order to expedite resource agency activities in the 
environmental review process.
Conference Substitute
      The Senate recedes to House section 6002 modified to 
amend title 23, United States Code, instead of title 49 and 
with the following further modifications:
      Section 6002(a). The House recedes to the Senate.
      Section 6002(b). The Senate recedes to the House.
      Section 139(a). The Senate recedes to the House. Section 
139(b). The Senate recedes to the House. In addition, the 
Conference substitute preserves current regulations under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) with regard to agencies acting as Joint Lead Agencies 
under this section (section 139(c)(2)). The Conference 
substitute defines the roles and responsibilities of the Lead 
Agency (section 139(c)). The Conference Substitute requires 
federal agencies to the maximum extent practicable to carry out 
concurrent reviews (section 139(d)(7)). The Conference 
Substitute requires that for the purpose of informing the 
Secretary that the environmental review process should be 
initiated, the project sponsor shall notify the Secretary of 
certain details of the proposed project (section 139(e)). The 
Conference Substitute requires that a Lead Agency establish a 
plan for agency participation and comment on the environmental 
review process that may be incorporated into a memorandum of 
understanding (section 139(g)). The Conference Substitute 
permits the Lead Agency to establish a schedule for completion 
of the environmental review process and requires the 
consideration of certain factors in establishing the schedule 
(section 139(g)(1)(B)). The Conference Substitute provides for 
notice to the United States Senate Committee on Environment and 
Public Works and the United States House Committee on 
Transportation and Infrastructure of failure of a Federal 
agency to make decisions in the environmental review process 
(section 139(g)(3)). No provisions in this section shall reduce 
time periods provided under existing Federal law for public 
comment (section 139(g)(4)). The Conference Substitute provides 
procedures for issue resolution at the request of a project 
sponsor or Governor of the state in which the project is 
located (section 139(h)). The Conference Substitute provides 
for a program to measure and report on progress toward 
improving and expediting the environmental review process 
(section 139(i)). The Conference Substitute adopts a modified 
version of section 1309(f) of the Transportation Equity Act for 
the 21st Century (112 Stat. 232) to provide that nothing in 
this section shall affect the reviewability of any final agency 
action in a court of the United States or the court of any 
State (section 139(k)). The Conference Substitute establishes a 
180-day period for filing any law suit challenging a permit, 
license or approval issued by a federal agency for a highway or 
transit project. This period starts when the lead agency gives 
public notice in the Federal Register that a final decision has 
been issued (section 139(l)). The Conference Substitute 
includes the Senate provisions on repeal of section 1309 of 
TEA-21 and preservation of existing State environmental review 
processes, programs, agreements or funding arrangements 
approved by the Secretary under section 1309 of TEA-21.

SECTION 6003. STATE ASSUMPTION OF RESPONSIBILITIES FOR CERTAIN PROGRAMS 
                              AND PROJECTS

House Bill
            Sec. 1207.
      This section provides the Secretary the authority to 
conduct a pilot program for up to five states to assume the 
responsibilities of the Secretary for projects funded under 
Section 104(h), transportation enhancement activities under 
Section 133, as defined in Section 101(a)(35), and projects 
defined in Section 101(a)(38) of title 23, and Section 5607 of 
TEA LU.
Senate Bill
      No Comparable Provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

   SECTION 6004. STATE ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL 
                               EXCLUSIONS

House Bill
      No Comparable Provision in Senate bill.
Senate Bill
            Sec. 1512.
      Section 1512 gives the Secretary authority to assign and 
a State the ability to assume the Secretary's responsibility 
for processing the environmental review for projects classified 
as categorical exclusions under current Council on 
Environmental Quality regulations.
      Categorical exclusions (CEs), according to current 
Council on Environmental Quality regulations, are projects that 
`do not individually or cumulatively have a significant effect 
on the human environment'. Approximately 90% of all surface 
transportation projects are processed as CEs. So, while CEs 
take significantly less time to prepare than environmental 
impact statements, a slight improvement in processing time for 
each CE can result in a large improvement system wide.
Conference Substitute
      The Conference adopts the Senate provision.

  SECTION 6005. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT PROGRAM

House Bill
      No Comparable Provision in Senate bill.
Senate Bill
            Sec. 1513.
      This section establishes a pilot program for not more 
than five States to assume the Secretary's responsibility for 
environmental review for a project. This delegation does not 
extend to conformity determinations, planning requirements, or 
rulemaking authority. Delegation of the Secretary's 
responsibility to a State shall be governed by a written 
agreement between the Secretary and the State. To ensure 
compliance by a State, the Secretary shall conduct periodic 
audits for each State participating in the program. The public 
shall have opportunity to comment prior to the submission of a 
State's application to participate in the pilot program and 
following an audit of compliance with the agreement.
      The legislation includes a 5-State pilot program 
(including a pilot for the State of Oklahoma) for delegation of 
certain of the Secretary's environmental review 
responsibilities for transportation projects within the pilot 
State. The pilot program is intended to provide information to 
the committee and to the public as to whether delegation of the 
Secretary's environmental review responsibilities will result 
in more efficient environmental reviews that are performed 
according to the same procedural and substantive requirements 
as would apply if the Secretary were conducting the reviews.
Conference Substitute
      The Conference adopts the Senate provision with the 
addition of California, Texas, Ohio, and Alaska as states 
participating in the pilot program.

   SECTION 6006. ENVIRONMENTAL RESTORATION AND POLLUTION ABATEMENT; 
CONTROL OF NOXIOUS WEEDS AND AQUATIC NOXIOUS WEEDS AND ESTABLISHMENT OF 
                             NATIVE SPECIES

House Bill
      No Comparable Provision in House bill.
Senate Bill
            Sec. 1601.
      This section amends title 23 to establish eligibility for 
environmental restoration and pollution abatement, and invasive 
species. The section makes eligible the use of NHS and STP 
funds for activities under this section.
      Section 165 establishes the eligibility for environmental 
restoration and pollution abatement and authorizes the use of 
funds for projects, including retrofitting and construction of 
stormwater treatment systems to meet Federal and State 
requirements under sections 410 and 402 of the Federal Water 
Pollution Control Act, which will address water pollution or 
environmental degradation caused wholly or partially by a 
transportation facility. The expenditure of funds is limited to 
20 percent of the total cost of an ongoing reconstruction, 
rehabilitation, resurfacing or restoration project.
      Current law allows a State to use STP funds for 
environmental restoration and pollution abatement projects 
(including the retrofit or construction of stormwater treatment 
systems) to address water pollution or environmental 
degradation caused or contributed to by transportation 
facilities. As amended, the use of STP funds is now extended 
and the use of NHS funds is now authorized for these projects, 
as well as mitigation projects related to Federal highways but 
not limited to those currently undergoing reconstruction, 
rehabilitation, resurfacing or restoration.
      Section 166 establishes provisions for the control of 
invasive plant species and the establishment of native plant 
species. Activities carried out under this section must be 
related to transportation projects funded under Title 23. 
Activities to control invasive plant species or to establish 
native species may be carried out in advance, concurrently 
with, or following project construction. Activities carried out 
in advance of projects are allowed if such measures are 
consistent with Federal law and State transportation planning 
processes.
Conference Substitute
      The Conference adopts the Senate provision with the 
following modifications: Invasive species has been changed to 
noxious weeds and aquatic noxious weeds, as defined in the 
Plant Protection Act; General activities are the establishment 
of plants selected by state and local transportation 
authorities to perform abatement of stormwater runoff, 
stabilization of soil, or aesthetic enhancement, and management 
of plants which impair or impede the establishment, 
maintenance, or safe use of a transportation system. These 
activities include: (1) right of way surveys to determine 
management requirements to control noxious weeds, brush or 
trees considered to be a threat to safety or maintenance of 
transportation systems; (2) control or elimination of plants; 
(3) establishment of plants, whether native or non-native with 
a preference for native when possible; (4) elimination of 
plants to create fuel breaks for the prevention and control of 
wildfires; and (5) training.

              SECTION 6007. EXEMPTION OF INTERSTATE SYSTEM

House Bill
            Sec. 6004.
      This section provides that the Interstate System itself 
shall not be considered a historic site for purposes of 23 
U.S.C. Sec. 138 or 49 U.S.C. Sec. 303(c)--the laws commonly 
known as ``Section 4(f).'' This section allows individual 
elements of the Interstate System to be considered historic 
sites for purposes of Section 4(f), if those elements possess 
an independent feature of historic significance.
Senate Bill
            Sec. 1604.
      This section establishes an exemption for the Interstate 
System from consideration under section 303 of title 49 and 
section 138 of title 23, regardless of whether the Interstate 
System or portions of the System may be listed on or eligible 
for the National Register of Historic Places. A portion of the 
Interstate System that possesses an independent feature of 
historic significance, such as a bridge or an architectural 
feature, shall be considered an historic site under section 303 
of title 49 and section 138 of title 23, as applicable.
Conference Substitute
      The Conference adopts the House provision with a 
technical modification. The language is amended to align the 
exemption from review under Section 4(f) with the 
administrative exemption from review under Section 106 of the 
National Historic Preservation Act, published in the Federal 
Register on March 10, 2005.

      SECTION 6008. INTEGRATION OF NATURAL RESOURCE CONCERNS INTO 
                    TRANSPORTATION PROJECT PLANNING

House Bill
      No Comparable Provision in House bill.
Senate Bill
            Sec. 1503.
      This section amends 23 U.S.C. 109(c) to direct the 
Secretary to consider two documents regarding context sensitive 
design when developing criteria for project design. The current 
provision for consideration of `A Policy on Geometric Design of 
Highways and Streets' is retained.
      Context sensitive design involves consideration of the 
environmental context of a project and encourages design that 
minimizes impacts on the project's surroundings. Adding context 
sensitive design principles to the current design criteria will 
give transportation officials the flexibility to adjust to the 
characteristics of each specific location while still ensuring 
sound engineering and safety measures.
            Sec. 1605.
      This section amends section 109(p) of title 23, 
Standards. The change is made to place greater emphasis on the 
need to consider preservation of human and natural resources as 
a part of the decisionmaking process in developing highway 
projects.
      Consideration of the impacts of highway projects has been 
part of the design process for many years. However, the 
transportation community, the traveling public, and communities 
have demanded improvements in project delivery and in the make-
up of the product that is delivered. Compatibility with the 
surrounding context, or environment, and improved safety for 
the motorist and the pedestrian are critical. The changes to 
this section address the need to see that highway projects meet 
all of these goals by having a project sponsor consider 
community preservation and community concerns.
Conference Substitute
      The Conference adopts the Senate amendment to section 
109(c) of title 23, United States Code, but not the amendment 
to section 109(p).

SECTION 6009. PARKS, RECREATION AREAS, WILDLIFE AND WATERFOWL REFUGES, 
                           AND HISTORIC SITES

House Bill
            Sec. 6003.
      This section amends section 303 of title 49 and section 
138 of title 23 to provide that requirements under such 
section(s) are deemed to be satisfied if an agreement under 
section 106 of the National Historic Preservation Act concludes 
that a transportation program or project will not have an 
adverse effect on an historic site, unless the Advisory Council 
on Historic Preservation determines that using the section 106 
consultation procedure to satisfy the requirements of such 
sections is inconsistent with the objectives of such Act. This 
section applies only to historic sites. In any case in which an 
historic site subject to section 106 includes, or is a part of 
a park, recreation area, or wildlife and waterfowl refuge 
protected under the sections cited above, this provision shall 
not apply to such parks, recreation areas or refuges.
Senate Bill
            Sec. 1514.
      Section 1514, subsection (a) amends section 138 of title 
23 and section 303 of title 49, United States Code, to allow 
transportation programs and projects to move forward as long as 
the impacts are no more than de minimis impacts on protected 
parks, recreation areas, wildlife or waterfowl refuges and 
historic sites.
      Subsection (b) directs the Secretary to promulgate within 
one year of enactment regulations to clarify the factors to be 
considered and the standards to be applied in determining the 
prudence and feasibility of alternatives under section 138 of 
title 23 and section 303 of title 49, United States Code.
      Subsection (c) requires the Secretary and the 
Transportation Board of the National Academy of Sciences 
jointly to conduct a study on the implementation of the amended 
sections.
      The Department of Transportation Act of 1966 prohibited 
the approval of any transportation program or project that 
requires the use of public parks, recreation areas, wildlife or 
waterfowl refuges or public or private historic sites unless 
there are no prudent and feasible alternatives and the program 
or project includes all possible planning to minimize harm to 
these protected resources (this provision is commonly referred 
to as `section 4(f)').
      Subsection 1514(a) provides that section 4(f) 
requirements are satisfied if the program or project will have 
only a de minimis impact on the area. For historic sites, a 
finding of de minimis impact may only occur if: (1) through the 
consultative process under section 106 of the National Historic 
Preservation Act (16 U.S.C. 470(f)), the Secretary determines 
that the program or project will have no adverse impact on the 
historic site or that there will be no historic properties 
affected; (2) the applicable State or tribal historic 
preservation officer provides written concurrence with the 
Secretary's determination; and (3) the finding is developed in 
consultation with consulting parties under the section 106 
process.
      For parks, recreation areas, and wildlife and waterfowl 
refuges, a finding of de minimis impact may only occur if: (1) 
through review required under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.), the Secretary determines 
that the program or project will not adversely affect the 
activities, features, and attributes of the park, recreation 
area, or wildlife or waterfowl refuge eligible for protection 
under section 4(f); and (2) the official(s) with jurisdiction 
over the protected resource concurs with the Secretary's 
finding. The purpose of the language is to clarify that the 
portions of the resource important to protect, such as 
playground equipment at a public park, should be distinguished 
from areas such as parking facilities. While a minor but 
adverse effect on the use of playground equipment should not be 
considered a de minimis impact under section 4(f), encroachment 
on the parking lot may be deemed de minimis, as long as the 
public's ability to access and use the site is not reduced.
      This subsection also provides that for all section 4(f)-
protected resources, the Secretary shall consider any 
avoidance, minimization, mitigation or enhancement measures 
required to be implemented as a condition for approval of the 
program or project when determining if the project will have a 
de minimis impact. This language builds in an incentive for 
project sponsors to incorporate environmentally protective 
measures into a project from the beginning. The traditional 
section 4(f) requirements will apply to all projects with 
impacts that exceed the de minimis threshold even when 
mitigation measures are taken into account.
      In its decision in Citizens to Preserve Overton Park v. 
Volpe, 401 U.S. 402 (1971), the Supreme Court ruled that 
determinations on no feasible and prudent alternatives must 
find that there are unique problems or unusual factors involved 
in the use of alternatives or that the cost, environmental 
impacts, or community disruption resulting from such 
alternatives reach extraordinary magnitudes.
      In order to address inconsistent guidance and regional 
interpretations of the Overton Park decision, subsection 
1514(b) directs the Secretary to issue regulations to clarify 
the factors to be considered and the standards to be applied in 
determining whether alternatives are `prudent and feasible' 
under section 138 of title 23 and section 303 of title 49, 
United States Code. The fundamental legal standard contained in 
the Overton Park decision for evaluating the prudence and 
feasibility of avoidance alternatives will remain as the legal 
authority for these regulations, however, the Secretary will be 
able to provide more detailed guidance on applying these 
standards on a case-by-case basis.
      Subsection 1514(c) requires a study of the implementation 
of section 4(f) as amended. The study shall include evaluation 
of items such as any efficiencies resulting from the amendments 
of this section; the post-construction effectiveness of impact 
mitigation and avoidance commitments adopted; and the quantity 
of projects with de minimis impacts and information on the 
location, size and costs of the projects.
Conference Substitute
      The Conference adopts the Senate provision with two 
modifications. First the language is modified so that a de 
minimus determination with respect to a park, recreation area 
or wildlife or waterfowl refuge satisfies the current law 
requirement that there is no prudent and feasible alternative, 
but the requirement to do all possible planning to minimize 
harm to the area is retained. Compliance with that requirement, 
however, shall not include an analysis of alternatives. The 
second modification requires an opportunity for public notice 
and comment prior to a de minimis determination for parks, 
recreation areas and wildlife and waterfowl refuges.

     SECTION 6010. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT SUPPORT 
            DEPLOYMENT OF INTELLIGENT TRANSPORTATION SYSTEMS

House Bill
            Sec. 1206.
      This section requires the Secretary to conduct a 
rulemaking within one year to establish categorical exclusions, 
to the extent appropriate, for activities that support the 
deployment of ITS from the requirement that an environmental 
assessment or an environmental impact statement be prepared 
under NEPA, in compliance with the standards for categorical 
exclusions established by NEPA.
      The Secretary shall also develop a nationwide 
programmatic agreement governing the review of activities that 
support ITS deployment in accordance with the National Historic 
Preservation Act. The agreement will be developed in 
consultation with the National Conference of State Historic 
Preservation Officers and the Advisory Council on Historic 
Preservation.
Senate Bill
      No Comparable Provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                SECTION 6011. TRANSPORTATION CONFORMITY

House Bill
            Sec. 1824.
      Section 1824 of H.R. 3 contains changes to the conformity 
provisions in section 176(c) of the Clean Air Act. The changes, 
which are discussed more fully below, address the following 
subjects: (1) frequency of conformity determinations; (2) 
changes to time horizons; (3) substitution of transportation 
control measures; and (4) conformity lapses.
      Frequency: Subsections (a) and (b) of Section 1824 change 
the frequency of conformity determinations for both the 
Transportation Improvement Plan (TIP) and the long range 
Regional Transportation Plan (RTP). Under these subsections, a 
conformity determination would now be required for both the TIP 
and the RTP only once every four years (Sec. 1824(b)). In the 
event that a new motor vehicle emissions budget is found to be 
adequate (as submitted during a State Implementation Plan (SIP) 
revision process), or is finally approved as part of a revised 
or new SIP, a conformity determination would be required within 
two years of such a finding or approval (Section 1824(a)). In 
addition, subsection (b) allows an area to update its 
conformity determination more frequently, if it so desires.
      Conformity Horizon: Subsection (c) of section 1824 
addresses the conformity time horizon for RTPs. The time 
horizon is the period for which conformity must be 
demonstrated. Under current law this time horizon period is 20 
years (or longer if the general RTP planning horizon is 
longer). Under this proposed subsection, an area may elect to 
reduce its time horizon for its RTP from 20 years to 10 years, 
but may do so only with the agreement of the MPO and the 
relevant Air Pollution Control Agency (APCA), as defined in 
section 302(b) of the Clean Air Act. In the event, however, 
that the attainment date in the SIP is more than 10 years away, 
or the date of completion of a regionally significant project 
is more than 10 years away, then the horizon date must be the 
later of those two dates. In cases where the SIP is revised to 
include adequate or approved motor vehicle emissions budget, 
and the SIP has an attainment date earlier than 10 years, the 
horizon may be revised to reflect that earlier date, but again, 
only with the agreement of the MPO and APCA.
      In any event, under subsection (b) a regional emissions 
analysis is required for any years of the transportation plan 
that extend beyond the conformity time horizon. Thus if the RTP 
general horizon is 20 years (as is common) and the conformity 
horizon is reduced to 10 years, a regional emissions analysis 
is nevertheless required for the 10-to-20 year period. 
Generating this information will be helpful in ensuring that 
conformity is maintained.
      TCMs: Subsection (d) of section 1824 allows substitution 
of ``Transportation Control Measures'' (TCMs) in a SIP, without 
going through a full SIP approval process or a new conformity 
determination, so long as the substituted TCM achieves an 
equivalent or greater emissions reduction than the TCM it 
replaces. EPA would determine whether a TCM meets that test. In 
addition, appropriate methodology would need to be used to 
determine emissions impact, reasonable public notice would be 
required, and adequate funding would be required. Finally, 
there is no requirement that a state change its SIP for TCM 
substitution, as indicated in the legislative language of the 
bill with the use of ``may'' rather than ``shall.''
      Conformity Lapse Grace Period: Subsection (e) of section 
1824 adds a new one-year grace period of 12 months before a 
conformity lapse shall be considered to exist and the 
consequences of a conformity lapse shall apply. A lapse is 
defined as in current regulations. Under this provision, when a 
nonattainment or maintenance area fails to make a conformity 
determination by an applicable deadline, it will have 12 months 
to make such determination. During the 12-month grace period, 
only transportation projects in the most recent conforming plan 
and TIP could be funded or approved until the required 
determinations are made pursuant to Section 176(c) of the Clean 
Air Act.
Senate Bill
            Sec. 1615.
      This section changes how often updates must be made to 
metropolitan transportation plans and metropolitan 
transportation improvement programs (TIPs) in nonattainment and 
maintenance areas, and statewide TIPs. Currently, these 
documents expire every 3 years, 2 years, and 3 years, 
respectively. With this bill, all three of these planning 
documents must be updated every 4 years unless a metropolitan 
planning organization elects to update its transportation 
improvement plan more frequently. This section also changes the 
minimum frequency with which transportation conformity must be 
demonstrated to every 4 years. Other changes to transportation 
conformity include a change in the horizon of the conformity 
determination, and a change in the projects to which conformity 
applies. In addition, this section adds a requirement for EPA's 
conformity regulations.
      Frequency. Section 1615 amends 23 U.S.C. 134 to require 
that metropolitan transportation plans and metropolitan 
transportation improvement programs (TIPs) be updated every 4 
years in nonattainment and maintenance areas, unless a 
metropolitan planning organization elects to update its 
transportation improvement plan more frequently. Currently, 
plans must be updated every 3 years, but TIPs must be updated 
every 2 years. Attainment areas will continue to update 
transportation plans every fiveyears. Section 135 is also 
amended to require that statewide TIPs be updated at least every 4 
years, to be consistent with metropolitan plans and TIPs. The section 
also amends section 176 of title 42, the conformity section of the 
Clean Air Act, to require that conformity for transportation plans and 
TIPs be determined every 4 years, unless an MPO elects to update their 
plan or TIP more frequently, or conformity is triggered by an EPA 
action on a SIP submission. In the case where conformity is triggered 
by an EPA SIP action, this section provides metropolitan areas with 2 
years to determine conformity (currently, areas have 18 months).
      The committee recognizes that there may be value to 
transportation planners in placing the frequency of 
metropolitan transportation plan and TIP updates and the 
frequency of conformity determinations on the same timetable, 
and also recognizes the benefit of giving metropolitan areas 
more time to devote to planning. The current transportation law 
requires TIPs to be updated at least every 2 years, and current 
planning regulations require plans to be updated every 3 years. 
Because conformity must be determined before new TIPs or new 
plans are adopted, many metropolitan areas were starting 
another TIP update as soon as transportation planning and 
conformity requirements were met for the previous one. Some 
witnesses testifying before the committee has indicated that 
transportation planning will improve if metropolitan areas have 
more time to devote to it, rather than continuously creating 
TIP updates and determining their conformity. Because 
conformity must still be determined before an updated plan or 
TIP is adopted, air quality should not be affected by this 
change; air quality impacts will still be checked before any 
major changes to the transportation network are made.
      Horizon. The section also changes the horizon of the 
conformity determination, that is, how far into the future each 
conformity determination must examine. Currently, a conformity 
determination is made analyzing a 20 year period of time, which 
is the length of time covered by a transportation plan. This 
section changes the horizon of a conformity determination to be 
the longest of 10 years, the latest year a State air quality 
plan (State implementation plan, or SIP) establishes a budget, 
or the year after a regionally significant project is completed 
if the project requires approval before the next conformity 
determination.
      Conformity must marry two separate planning activities: 
transportation planning, and air quality planning. While 
transportation plans cover a period of 20 years, SIPs, which 
are used as the measure of conformity, generally cover a period 
of 10 years or fewer. The committee is changing the horizon of 
the conformity determination so that it more closely matches 
the length of time covered by a SIP. In addition, the language 
also ensures that the emissions impacts of large projects on 
travel are considered before Federal approvals are made. The 
change made to the horizon does not preclude State or local 
agencies from examining longer time periods for informational 
or local air quality purposes, if they choose to do so.
      Projects. The section defines transportation project to 
include only a project that is regionally significant, or a 
project that makes a significant revision to an existing 
project. The definition of regionally significant project 
closely tracks the existing EPA definition in regulation. 
Likewise, the definition of significant revision tracks the 
existing EPA criteria for significant change in design concept 
or scope. With the addition of this definition for 
transportation project, conformity determinations are required 
for regionally significant projects or projects that make a 
significant revision to an existing project, rather than for 
every Federal project. However, this change does not affect the 
requirement that the emissions impacts from all projects in the 
transportation plan and TIP must be considered when determining 
conformity of a plan or TIP. VMT from projects that are not 
regionally significant must still be considered in a plan or 
TIP conformity determination.
      Requirement for Regulation. This section adds a new 
requirement that EPA's regulations must address the effects of 
the most recent population, economic, employment, travel, 
transit ridership, congestion, and induced travel demand 
information in the development and application of the latest 
travel models. That is, this section requires that EPA adjust 
regulations to ensure that travel models can account for the 
effects of these elements. Currently, travel models can account 
for the effects of most of the elements on this list, because 
the Clean Air Act has required that conformity be based on the 
most recent estimates of emissions since 1990, and EPA's 
conformity regulations specify how latest information regarding 
population, employment, travel, congestion, and transit service 
must be incorporated into a conformity determination.
      The new elements on this list are induced travel demand 
and transit ridership information. The committee recognizes 
that induced demand is a concept that is relatively recent and 
has been the subject of some debate. Before changing 
regulations in response to this section, EPA should examine the 
recent literature regarding induced demand, including papers on 
the topic submitted to the Transportation Research Board within 
the last 6 years. Recent literature should inform EPA's 
proposal on where, when, and how induced demand should be 
included in travel models. If recent literature does not 
include recommendations for how to incorporate induced demand 
into travel modeling, then EPA should request input on this 
topic from the public and the expert community prior to 
proposing its regulations.
            Sec. 1617.
      Section 1617 reduces barriers to regions implementing 
transportation control measures (TCMs) to improve their 
regional air quality. The section allows an area to substitute 
an existing TCM or add a TCM if they can show that the new TCM 
will achieve equivalent or greater emissions reductions. 
Substitution or addition of a TCM will not require express 
permission in the State air quality plan (SIP), a formal 
revision of the SIP, nor a new conformity determination.
      Transportation control measures, or TCMs, are 
transportation-related measures that have the potential to 
reduce emissions of criteria pollutants. Many TCMs reduce 
emissions by reducing VMT, for example, high-occupancy vehicle 
lanes, transit projects, park and ride lots, ride-share 
programs, and pedestrian and bicycle facilities. States can 
include TCMs in their SIPs. However, unless the SIP includes a 
TCM substitution mechanism, i.e., a set of provisions for 
substituting TCMs, the SIP must be revised to change a TCM that 
is delayed or no longer viable. The purpose of this section is 
to allow all States to substitute TCMs without a full SIP 
revision, regardless of whether the State has its own 
substitution mechanism.
      TCMs can be substituted if the substitute measure 
achieves the same or greater emission reductions as the measure 
being replaced, based on an analysis that uses the latest 
planning assumptions and the current models. The substitute 
TCMs must be implemented on the same schedule as the original 
measure, if that is possible. However, the committee recognizes 
that it may not be possible for the substitute measure to be on 
the original schedule; for example, a possible reason that a 
State would want to substitute a TCM is that it has proved 
difficult to implement in a timely way. In those cases, the 
substitute measure must be implemented as soon as practicable, 
but not later than the date on which the SIP is supposed to 
achieve its purpose. For example, if the TCM is included in the 
SIP as part of the attainment demonstration, and the attainment 
date is 2005, the substitute TCM must be implemented as soon as 
practicable to reduce emissions by 2005.
      Subparagraph (B) of this provision states that after 
carrying out subparagraph (A), a State shall adopt the 
substitute or additional control measure in the applicable SIP. 
In this instance, the committee has used the word `adopt' to 
mean that the State must record the measure as being part of 
the SIP. The sole intent of this subparagraph is to ensure that 
the State keeps an up-to-date list of the TCMs that must be 
implemented, so that a member of the public can review the list 
at any point and have the complete, correct list of TCMs that 
are in the SIP. This subparagraph is not intended to create any 
additional process requirements than those in subparagraph (A).
            Sec. 1616.
      Section 1616 provides methods for new nonattainment areas 
to use in determining transportation conformity to help achieve 
the national ambient air quality standards. Many areas will 
soon be designated nonattainment with the revised national 
ambient air quality standards for ozone (the 8-hour standard) 
and fine particulate matter (PM-2.5). In the case of areas that 
have not been in nonattainment before and have not been 
required to demonstrate transportation conformity or develop an 
emissions budget to use in that demonstration, or in the event 
that the agency revokes a prior standard before new 
nonattainment areas have approved emissions budgets for a 
revised standards, the committee has provided that those areas 
would be able to use an emissions budget in a SIP for the prior 
standard for the same pollutant, if one is available. Areas 
could also use the other tests that are currently available in 
cases where an area does not have a SIP.
      This section is added because EPA designated areas for 
the new 8-hour ozone standard in April 2004, and made 
designations for the fine particulate matter standard (PM-2.5) 
in December 2004. Newly designated nonattainment areas that 
have not been previously designated nonattainment for the same 
pollutant will have a 1-year grace period before conformity 
applies, but they have 3 years to submit SIPs to EPA. 
SIPsinclude motor vehicle emissions budgets, which are the total amount 
of each pollutant or precursor that is allowable for the transportation 
sector. These budgets serve as the measure of comparison when 
determining conformity. Therefore, after areas are designated for an 
air quality standard, there will be a period of time when other means 
of determining conformity must be used.
      This section will allow areas that have been designated 
for the new 8-hour ozone standard to use the motor vehicle 
emissions budget from their 1-hour ozone SIP, if it exists, 
even once EPA revokes the 1-hour standard. Rather than 
referring specifically to the 8-hour and 1-hour ozone 
standards, this section is written broadly to refer to any 
standards. The committee recognizes that EPA, from time to 
time, may revise air quality standards. Areas should be able to 
use the budgets from the SIP that addresses the most recent 
prior standard of the same pollutant, if one exists and EPA has 
found its budgets adequate or has approved the SIP.
      The committee did not mandate the use of the budgets from 
a SIP for the most recent prior standard, but instead gave 
areas the choice to do so, or use the existing tests. There may 
be instances where the budget from a SIP addressing the prior 
standard would not provide a good test of conformity. For 
example, such a budget could be established for a year that is 
many years in the past, be based on a geographic boundary that 
is different than the boundary for the current standard, or be 
based on information that is significantly out-of-date. For 
these reasons, the committee believes it is important to 
provide a choice to areas. Areas will use the consultation 
process to determine whether budgets addressing a prior 
standard for the same pollutant or another test or tests, will 
be used for conformity.
            Sec. 1619.
      Section 1619 updates the language in section 176 of title 
42 that directs EPA to write regulations. It removes references 
to the date of enactment of the Clean Air Act Amendments of 
1990. It also removes the requirement for States to duplicate 
the entire text of Federal conformity regulations in their 
State implementation plans each time there is a revision in 
those regulations. Instead, States will be required to further 
amend their State implementation plans only when revising 
conformity consultation procedures.
      Current law requires that States submit criteria and 
procedures for assessing conformity of transportation plans, 
TIPs, and projects. This requirement results in States having 
to adopt the entire Federal conformity rule into their State 
implementation plans (SIPs). States that have done so must 
update their SIP whenever EPA updates any portion of the 
conformity regulations, which EPA has done several times since 
promulgating the initial rule in 1993, most recently in 2000, 
2002 and 2004. However, only the consultation procedures that 
exist in the regulations need to be tailored to individual 
States. This change ensures that States must submit 
consultation procedures, but no longer have to repeat the 
entire Federal conformity regulations. This change will reduce 
the paperwork burden on States with no adverse air quality 
impact.
Conference Substitute
      Frequency: The Conference agrees to a modified version of 
the Senate provision. The Senate provision is modified to 
clarify that the two-year clock for re-determining conformity 
after the approval of new emissions budgets only starts if 
those emissions budgets had not previously been found adequate.
      Horizon: The Conference adopts the Senate provision with 
modifications. First, the change in horizon will be at the 
election of the metropolitan planning organization, after 
consultation with the appropriate air pollution control agency 
and with a period for public comment. The decision to address a 
portion of the transportation plan rather than the entire 20-
year plan when demonstrating conformity only needs to be made 
once, not each time a conformity determination is made. After 
such election, each conformity determination will address the 
longest of the three periods at that point in time. For 
example, the first conformity determination following such 
election may address 10 years of the transportation plan, but 
the second may need to address 15 years because the new plan 
includes a regionally significant project in later years of the 
plan. The Conference also requires a conformity determination 
to include an informational regional emissions analysis for the 
last year of the transportation plan and any year shown to 
exceed emissions budgets by a prior informational regional 
emissions analysis if such year extends beyond the conformity 
date.
      Projects: The Conference does not adopt the Senate 
provision.
      Conformity Lapse: The Conference adopts the House 
language.
      TCM Substitution: The Conference agrees to a modified 
version of the Senate provision. The Conference clarifies the 
meaning of ``adoption.'' Specifically, adoption occurs when the 
MPO, state air agency and EPA concur that all four of the 
general requirements in subparagraph (A) of the provision have 
been fulfilled. At that point the substitute TCM becomes part 
of the SIP and federally enforceable. The state air agency is 
directed to send the substitute measure to EPA within 90 days 
of adoption so that EPA may proceed with incorporating the 
substitute measure into the codified SIP. This action does not 
require any additional state process. The conference also 
clarifies that evidence of adequate funding for the 
implementation of the substitute TCM must be provided.
      Requirements for Regulations: The Conference does not 
adopt the Senate provision, but agrees to replace it with a 
requirement in the Research title requiring the Federal 
Highways Administration to address induced travel demand and 
transit ridership in the development of the TRANSIMS 
transportation model and to assist state and local governments 
in using TRANSIMS to estimate the impact of these factors when 
areas make conformity determinations, where applicable.
      Transition to New Air Quality Standards: The Conference 
does not adopt the Senate provision.
      Conforming Amendments: The Conference agrees to a 
modified version of the Senate provision. The Conference 
clarifies that states are required to incorporate three 
provisions from the federal conformity rule into their SIPs. 
The three provisions are related to consultation and 
enforcement and enforceability of commitments for emission 
reduction or mitigation measures. These are the only three 
provisions in the federal conformity rule that states are 
allowed to tailor when they incorporate conformity requirements 
into their SIPs.
      Regulations: The Conference includes a provision 
requiring EPA to revise the conformity rule within two years of 
the enactment of the bill.

                 SECTION 6012. FEDERAL REFERENCE METHOD

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 1610.
      This section directs EPA to conduct a study of the 
ability of monitors to differentiate particulate matter larger 
than 2.5 micrometers in diameter (coarse particulate matter). 
EPA is also directed to develop a method to measure directly 
the amount and composition of coarse particulate matter.
      This section directs EPA to conduct a study of the 
ability of monitors to differentiate particulate matter larger 
than 2.5 micrometers in diameter (coarse particulate matter). 
This study will give policymakers and the agency a better 
understanding of the difficulties involved in distinguishing 
particles that are smaller than 2.5 micrometers in size from 
those that are larger. This knowledge will assist policymakers 
by minimizing the potential of measurements to either inflate 
or deflate the quantity of smaller particles, or to inflate or 
deflate the quantity of larger particles.
      EPA is also directed to develop a method to measure 
directly the amount and composition of coarse particulate 
matter. This will ensure that EPA has the tools necessary so 
that it does not need to rely on a methodology for measuring 
coarse particles (2.5 to 10 microns in size) by measuring all 
particles (up to 10 microns in size) and subtracting fine 
particles (2.5 microns or less in size), as this subtraction 
method may increase the probability of measurement error. EPA 
is also directed to develop a method to measure different kinds 
of particles. By developing the ability to measure different 
types, or so-called ``species'' of particles, the agency will 
be able to better identify those particles that constitute the 
particles of greater concern and to identify the point of 
origin of the emissions for purposes of modeling.
Conference Substitute
      The Conference adopts the Senate provision.

  SECTION 6013. AIR QUALITY MONITORING DATA INFLUENCED BY EXCEPTIONAL 
                                 EVENTS

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 1618.
      Section 1618 requires EPA to promulgate regulations 
governing the handling of air quality monitoring data 
influenced by exceptional events. These regulations would allow 
governors to petition EPA to exclude air quality data directly 
due to exceptional events. Events such as forest fires or 
volcanic eruptions, should not influence whether a region is 
meeting its Federal air quality goals. The section includes 
requirements for demonstrating the occurrence of such a natural 
event by reliable and accurate data, a clear causal 
relationship between the exceptional event and a national air 
quality standard exceedance, and a public process for the 
determination.
      This section includes a definition of exceptional events 
and excludes certain events from the definition. Natural 
climatological occurrences such as stagnant air masses, high 
temperatures, or lack of precipitation influence pollutant 
behavior but do not themselves create pollutants. Thus, they 
are not considered exceptional events. Likewise, air pollution 
related to source noncompliance may not be considered an 
exceptional event. In contrast, events which are part of 
natural ecological processes, which generate pollutants 
themselves that cannot be controlled, qualify as exceptional 
events.
      The committee is concerned that the Environmental 
Protection Agency's (EPA's) current approach for modeling 
carbon monoxide (CO) emissions from motor vehicles may not be 
appropriate for cold weather States, such as Alaska, that must 
make CO attainment and maintenance demonstrations. The 
committee therefore requests that EPA evaluate the 
effectiveness of its MOBLIE6 model to determine if it 
adequately accounts for the effects of cold weather on CO 
emissions.
      EPA is directed to follow principles in promulgating 
regulations under this section. These principles reflect the 
requirements of the current Clean Air Act and do not establish 
new requirements for States or EPA to meet. Instead, these are 
principles that EPA must follow when promulgating regulations 
under this section.
Conference Substitute
      The Conference adopts the Senate provision.

         SECTION 6014. FEDERAL PROCUREMENT OF RECYCLED COOLANT

House Bill
      No comparable provision in the House bill.
Senate Bill
      This section directs the President to conduct, within 90 
days of enactment of this Act, a review of Federal procurement 
policy of off-site recycled coolant, taking into consideration 
processes that are energy efficient, generate no hazardous 
waste, produce no emissions of air pollutants, present lower 
health and safety risks to employees at the plant or facility 
and recover at least 97 percent of the glycols from used 
antifreeze feedstock.
Conference Substitute
      The Conference adopts the Senate provision with a 
correction to delete ``off-site''.

                 SECTION 6015. CLEAN SCHOOL BUS PROGRAM

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 1622.
      Section 1622 establishes a statutory program to authorize 
funds to assist localities seeking to reduce emissions from 
existing school buses. The legislation requires EPA to award 
grants to replace pre-1977 school buses and retrofit post-1990 
school buses, and when appropriate, purchase alternative fuels.
Conference Substitute
      The Conference adopts the Senate provision with a 
modification to clarify that the awarding of grants for the 
purchase of alternative fuel should be consistent with the 
historic funding levels of the program for such purchase.

                   SECTION 6016. SPECIAL DESIGNATION

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 1704
      This section directs that the city of Norman, Oklahoma, 
shall be considered to be part of the Oklahoma City urbanized 
area for the purpose of any applicable program under title 23, 
United States Code.
Conference Substitute
      The Conference adopts the Senate provision.

SECTION 6017. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
      FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 4001.
      The section amends Subtitle F of the Solid Waste Disposal 
Act (42 U.S.C. et seq) to direct the EPA and each agency head 
to implement procurement requirements and incentives that 
provide for the use of cement and concrete incorporating 
recovered mineral component in cement or concrete projects. 
Priority is to be given to achieving greater use of recovered 
mineral components in cement or concrete projects for which 
recovered mineral components historically have not been used or 
have been used minimally.
Conference Substitute
      The Conference adopts the Senate provision with a 
modification to exclude lead slag and lead slag aggregate from 
the definition of ``recovered mineral component''.

              SECTION 6018. USE OF GRANULAR MINE TAILINGS

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 4002.
      This section amends the Solid Waste Disposal to require 
the Administrator of the Environmental Protection Agency and 
each agency head to take necessary actions to implement fully 
all procurement requirements and incentives that provide for 
the use of cement and concrete incorporating recovered mineral 
component in cement or concrete projects. An agency head is 
required to give priority to achieving greater use of recovered 
mineral component for which it has not been historically used 
or used minimally. This section also requires the 
Administrator, in cooperation with the Secretaries of 
Transportation and Energy, to conduct a study to determine the 
extent to which current procurement requirements may realize 
energy savings and environmental benefits attainable with the 
substitution of recovered mineral component in cement used in 
cement or concrete projects. Additionally, this section 
requires the Administrator, in consultation with other agency 
heads, to establish criteria for the safe and environmentally 
protective use of granular mine tailings from the Tar Creek, 
Oklahoma Mining District, known as `chat', for cement or 
concrete projects, and transportation projects, including those 
that use asphalt, that are carried out using Federal funds. In 
establishing the criteria, the Administrator is required to 
consider current and previous uses of `chat,' and any 
environmental and public health risks and benefits derived from 
removal, transportation and use of `chat.'
Conference Substitute
      The Conference adopts the Senate provision.

             TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION

                         SEC. 7001. SHORT TITLE

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7301.
      This section provides the Short Title.
Conference Substitute
      The Conference adopts the Senate provision.

          SEC. 7002. AMENDMENT OF TITLE 49, UNITED STATES CODE

House Bill
            Sec. 7001.
      This section establishes that any reference to a section 
or other provision shall be considered a section or provision 
of title 49, United States Code, unless otherwise specified.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

    Subtitle A--General Authorities on Transportation of Hazardous 
                               Materials

                    SEC. 7101. FINDINGS AND PURPOSE

House Bill
            Sec. 7002.
      This section establishes the Congressional findings of 
the hazardous materials title, and updates and clarifies the 
purpose of chapter 51.
Senate Bill
            Sec. 7301.
      This section contains the short title and table of 
contents.
            Sec. 7321.
      This section provides the purpose of the Hazmat Title.
Conference Substitute
      The Conference adopts the House provision with 
modifications.

                         SEC. 7102. DEFINITIONS

House Bill
            Sec. 7003.
      This section modifies the definition of ``commerce'' to 
include transportation on a U.S.-registered aircraft anywhere 
in the world. This section also defines the term ``Secretary'' 
as the Secretary of Transportation, except where otherwise 
indicated.
Senate Bill
            Sec. 7322.
      This section modifies definitions as indicated below.
      The definition of ``commerce'' is amended to provide 
jurisdiction over hazardous materials activities being 
conducted on a U.S.-registered aircraft anywhere in the world. 
The purpose of this proposed provision is to clarify that DOT 
has the authority, under Federal hazardous materials 
transportation law (49 U.S.C. 5101-5127), to regulate hazardous 
materials transportation on all U.S.-registered aircraft.
      The definitions of ``hazmat employee'' and ``hazmat 
employer'' is amended to clarify that the terms include the 
self-employed, including owner-operators of motor vehicles, 
vessels or aircraft, and temporary or part time employees.
      The definition of ``motor carrier'' would be amended by 
clarifying that it includes a freight forwarder, as defined in 
49 U.S.C. 13102, only if the freight forwarder is performing a 
function related to highway transportation. In addition, the 
definition of ``imminent hazard'' is further clarified.
      Finally, the definition of ``person'' is amended so that 
the requirements of chapter 51 apply to additional activities 
of government agencies and Indian tribes, and includes those 
that design, manufacture, fabricate, inspect, mark, maintain, 
recondition, repair, or test a package, container, or packaging 
component for use in the transportation of hazardous materials 
in commerce.
Conference Substitute
      The Conference adopts the Senate provision.

                SEC. 7103. GENERAL REGULATORY AUTHORITY

House Bill
            Sec. 7004.
      This section updates the terminology used to describe the 
materials the Secretary should designate as hazardous, as well 
as the terminology describing the transportation, and 
transportation-related, activities regulated by the DOT. This 
section amends current law to ensure that persons who design 
and inspect packages (or components of packages) are subject to 
the hazardous materials regulations. This section also 
clarifies that the hazardous materials regulations apply to 
persons who prepare or accept hazardous materials for 
transportation in commerce.
Senate Bill
            Sec. 7323.
      This section amends subsection 5103(a), title 49 U.S.C. 
to update the terminology used to describe materials the 
Secretary is required to designate as hazardous under that 
subsection. It would also amend subsection 5103(b)(1)(A) to 
conform with the definition changes made to section 5102.
Conference Substitute
      The Conference adopts the Senate provision.

          SEC. 7104. LIMITATION ON ISSUANCE OF HAZMAT LICENSES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7324.
      This section requires the Secretary of Health and Human 
Services to recommend to the Secretary of Transportation any 
chemical or biological material or agent to be regulated as a 
hazardous material in transportation.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

  SEC. 7105. BACKGROUND CHECKS FOR DRIVERS HAULING HAZARDOUS MATERIALS

House Bill
            Sec. 4113.
      This section authorizes the Secretary, and thus FMCSA, to 
engage in international activities. This kind of authority is 
necessary to aid in implementing the North American Free Trade 
Agreement and to carry on discussions with U.S. trading 
partners concerning a variety of safety issues.
Senate Bill
            Sec. 7325.
      This section requires motor carriers registered in Mexico 
and Canada and transporting hazardous material in the U.S. be 
subject to a background records check similar to that which 
will apply to U.S.-licensed motor carriers. In addition, this 
section directs the Transportation Security Administration to 
develop a process to notify an employer if an applicant fails 
to meet specified standards. The provision eliminates redundant 
background checks; requires Federal Regulations apply to State 
appeals process for certain background checks; and clarifies 
the term ``transportation security incident''.
Conference Substitute
      The Conference adopts the House and Senate provisions 
with modifications.

                SEC. 7106. REPRESENTATION AND TAMPERING

House Bill
            Sec. 7005.
      This section updates the language in current law without 
changing the scope of the law.
Senate Bill
            Sec. 7326.
      This section would make technical changes to section 5104 
for purposes of clarity.
Conference Substitute
      The Conference adopts the Senate provision.

                    SEC. 7107. TECHNICAL AMENDMENTS

House Bill
            Sec. 7006.
      This section provides technical amendments to update the 
terminology in current law.
Senate Bill
            Sec. 7327.
      This section would amend section 5105 by deleting 
subsection (d) because the required study has been completed 
and submitted to Congress.
            Sec. 7329.
      This section makes technical changes to title 49, United 
States Code.
Conference Substitute
      The Conference adopts the House provision.

                SEC. 7108. TRAINING OF CERTAIN EMPLOYEES

House Bill
            Sec. 7007.
      This section amends section 5107(f) of current law 
(redesignated in the bill as section 5107(g)) by deleting the 
reference to section 5108(a)-(g)(1) and (h), and section 5109, 
but retains the provision in current law that states that an 
action of the Secretary under subsections (a)-(d) of this 
section and section 5106 of this title is not an exercise of 
statutory authority, under section 4(b)(1) of the Occupational 
Safety and Health Act of 1970, to prescribe or enforce 
standards or regulations affecting occupational safety or 
health.
      This section also codifies the existing practice of 
providing hazardous materials training to maintenance-of-way 
employees and railroad signalmen.
Senate Bill
            Sec. 7328.
      This section allows training grants for the ``Train the 
Trainer'' program to also be made to instructors to train 
hazmat employees, to the extent determined appropriate by the 
Secretary.
Conference Substitute
      The Conference adopts both the House and Senate 
provisions. The Conference retains the provision in current law 
that states that an action of the Secretary is not an exercise 
of statutory authority, under section 4(b)(1) of the 
Occupational Safety and Health Act of 1970, to prescribe or 
enforce standards or regulations affecting occupational safety 
or health.
      The Conference codifies the existing practice of 
providing hazardous materials training to maintenance-of-way 
employees and railroad signalmen.
      The Conference allows training grants for the ``Train the 
Trainer'' program to also be made to instructors to train 
hazmat employees, to the extent determined appropriate by the 
Secretary.

                        SEC. 7109. REGISTRATION

House Bill
            Sec. 7008.
      This section amends the current law to include those 
persons who design and inspect hazardous materials packages, or 
package components, as persons required to register with the 
Secretary. This change is consistent with the updated language 
in Section 7004 concerning persons who are subject to the 
hazardous materials regulations.
      Section 5108(g) is amended to require the Secretary to 
establish and collect a registration fee sufficient to cover 
the costs of processing the registration and that the Secretary 
must collect a fee at least large enough to cover processing 
costs from all entities otherwise exempted from paying the 
registration fee. This section reduces the maximum fee the 
Secretary may assess from $5,000 to $3,000.
      This section also requires the Administrator of RSPA to 
transmit the annual registration information required in 
section 5108 for motor carriers to FMCSA. The Committee intends 
to ensure that FMCSA has the most up-to-date information on 
motor carriers that transport hazardous materials and expects 
the transmittal of information to be done as expeditiously as 
possible.
Senate Bill
            Sec. 7329.
      The Secretary is allowed to require a registration 
statement from persons who design and inspect a package or 
packaging component that is represented as qualified for use in 
transporting hazardous materials in commerce.
      This section requires the Secretary to impose a 
registration fee sufficient to cover administrative processing 
costs. Indian tribes and States would be exempted from the 
requirements to register and pay registration fees.
      This section also reduces the maximum fee that would be 
assessed under section 5108(g)(2)(A) from $5,000 to $3,000. The 
Secretary is directed to reinstate the fees that were suspended 
due to regulatory action.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

               SEC. 7110. SHIPPING PAPERS AND DISCLOSURE

House Bill
            Sec. 7009.
      This section requires that each person who prepares a 
shipping paper must make the disclosures that the Secretary 
prescribes by regulation.
      This section amends section 5110 to extend the time 
period shippers and carriers are required to retain shipping 
papers. Under current law, shippers and carriers are required 
to retain the shipping papers for one year after the hazardous 
material is no longer in transportation. This section requires 
shippers and carriers to retain shipping papers for two years 
after the shipping papers are prepared.
Senate Bill
            Sec. 7330.
      This section requires shippers to keep their shipping 
papers for three years in order to facilitate investigations of 
past violations and continues to require carriers to retain 
their shipping papers for the current one year period.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications. The bill requires shippers to keep their 
shipping papers for two years in order to facilitate 
investigations of past violations, and continues to require 
carriers to retain their shipping papers for the current one 
year period. For purposes of this section, shippers who are 
also carriers and carriers who are also shippers must retain 
their shipping papers for two years.

                       SEC. 7111. RAIL TANK CARS

House Bill
            Sec. 7010.
      This section repeals section 5111, which permits a rail 
car built before January 1, 1971, to be used for hazardous 
materials transportation only if the air brake equipment 
support attachments of the car comply with the standard for 
attachments contained in 49 CFR 179.100-16 and 179.200-19.
Senate Bill
            Sec. 7331.
      This section repeals section 5111, which permits a rail 
car built before January 1, 1971, to be used for hazardous 
materials transportation only if the air brake equipment 
support attachments of the car comply with the standard for 
attachments contained in 49 CFR 179.100-16 and 179.200-19.
Conference Substitute
      The Conference adopts a combination of the House and 
Senate provisions.

                SEC. 7112. UNSATISFACTORY SAFETY RATINGS

House Bill
            Sec. 7011.
      This section amends section 5113 to provide that a motor 
carrier owner or operator transporting hazardous materials in 
commerce who, upon review of an unfavorable fitness 
determination, is determined by the Secretary to be ``unfit'' 
is subject to the civil penalties in section 5123 and the 
criminal penalties set forth in section 5124.
Senate Bill
            Sec. 7332.
      This section provides that an unfit owner or operator 
transporting hazardous material in commerce, as determined by 
the Secretary, shall be subject to the civil penalties in 
section 5123 and the criminal penalties in section 5124.
Conference Substitute
      The Conference adopts the Senate provision.

          SEC. 7113. TRAINING CURRICULUM FOR THE PUBLIC SECTOR

House Bill
            Sec. 7012.
      This section updates the training curriculum to include 
appropriate emergency response training and planning programs 
developed with all Federal assistance, not just those under 
Federal grant programs.
      This section also makes the Secretary responsible for 
distribution and publication of the training curriculum.
Senate Bill
            Sec. 7333.
      Several technical amendments are made to reflect that the 
public-sector training curriculum has already been developed 
and to focus the statutory provisions on maintaining, not 
developing, the curriculum.
      The training curriculum is required to include 
appropriate emergency response training and planning programs 
for public-sector employees developed with Federal financial 
assistance, not just those under other Federal grant programs.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications to include the House provision ensuring that the 
training necessary for public sector employees also complies 
with other voluntary consensus standard-setting organizations 
as the Secretary determines appropriate. The House Distribution 
and Publication language is also adopted.

SEC. 7114. PLANNING AND TRAINING GRANTS; HAZARDOUS MATERIALS EMERGENCY 
                           PREPAREDNESS FUND

House Bill
            Sec. 7013.
      This section amends section 5116(b)(4) to require the 
Secretary to consider the report established in section 7022 of 
this bill when determining a State or Indian tribe's emergency 
response funding needs.
      This section also establishes the Secretary of 
Transportation as the lead for monitoring public sector 
emergency response planning and training. It also establishes a 
new account within the Treasury specifically for hazardous 
materials emergency preparedness.
      This section also allows the Secretary to use funds 
collected from the annual registration fees to publish and 
distribute the Emergency Response Guidebook.
Senate Bill
            Sec. 7334.
      This section eliminates the current requirement that the 
State share of planning and training grants must be above and 
beyond `maintenance of effort' funds. In subsection (g), the 
phrase `government grant programs' would be broadened to 
`Federal financial assistance programs' in order to provide for 
more complete coordination of funding sources.
      This section also amends section 5116 to provide a name 
for the account established under subsection 5116(i), calling 
it the `Emergency Preparedness Fund.' Amounts collected by the 
Secretary under subsection 5108(g)(2)(C) would be deposited 
into the Emergency Preparedness Fund and could be used for 
emergency planning and training grants, under subsection 
5116(a) and (b), monitoring and technical assistance under 
subsection 5116(f), and administrative costs of carrying out 
sections 5116, 5108(g)(2), and section 5115. It also clarifies 
that these amounts may be used to publish and distribute the 
Emergency Response Guidebook. Information on the allocation and 
uses of the grants would be made available to the public on an 
annual basis.
Conference Substitute
      The Conference adopts the Senate and House provisions 
with modifications. A compromise on the Government Share of 
Costs is also adopted.

               SEC. 7115. SPECIAL PERMITS AND EXCLUSIONS

House Bill
            Sec. 7014.
      This section clarifies that the Secretary may issue a 
special permit to any person who performs a function regulated 
under section 5103(b)(1).
      This section increases the maximum renewal period of 
special permits from two years to four years, except that 
special permits issued related to highway routing of hazardous 
materials are only renewable for a two-year period.
Senate Bill
            Sec. 7335.
      This section clarifies that the Secretary may issue a 
special permit to any person who performs a function identified 
under section 5103(b)(1).
      In addition, this section changes the maximum initial 
effective period of a special permit to two years, and provides 
for the renewal of special permits for four-year successive 
periods. This change eliminates a great deal of unnecessary 
industry application time and government processing time 
involved in the present two-year renewal process.
      This section also repeals a requirement that the 
Secretary maintain 30 hazardous materials safety inspectors 
more than the number of inspectors authorized at the end of FY 
1990. The Pipeline and Hazardous Materials Safety 
Administration maintains inspectors in excess of this 
requirement and, pursuant to recommendations resulting from a 
department-wide DOT review of the hazmat program, is requesting 
more flexibility about how inspectors should be utilized.
Conference Substitute
      The Conference adopts the House provision with 
modifications. The Conference also adopts the Senate's repeal 
of section 5118.

                SEC. 7116. UNIFORM FORMS AND PROCEDURES

House Bill
            Sec. 7015.
      This section requires the Secretary to establish a 
working group to develop uniform forms and procedures for 
States to register and issue permits to persons who transport, 
or cause to be transported hazardous materials in the State. 
The working group is required to develop a report of its 
recommendations for the Secretary to consider when issuing 
regulations to carry out a uniform State registration system. 
The working group is prohibited from proposing to limit any fee 
that a State may impose or collect.
Senate Bill
            Sec. 7336.
      This section reflects the fact that the working group 
established to formulate uniform registration and permitting 
forms and procedures has completed its task and submitted a 
report to Congress. The section authorizes the Secretary to 
prescribe regulations to establish uniform forms and 
regulations for States to: (1) register and issue permits for 
the transportation of hazmat by motor vehicle; and (2) permit 
the transportation of hazmat in a State. In addition, States 
would be authorized to participate in the uniform forms and 
procedures program recommended by the Alliance for Uniform 
Hazmat Transportation Procedures.
Compromise
      The Conference adopts the House provision with 
modifications.

   SEC. 7117. INTERNATIONAL UNIFORMITY OF STANDARDS AND REQUIREMENTS

House Bill
            Sec. 7016.
      This section amends current law to reflect that the 
Secretary may have additional international requirements, in 
addition to current international standards, that need to be 
met.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                  SEC. 7118. ADMINISTRATIVE AUTHORITY

House Bill
            Sec. 7017.
      This section amends section 5121 to provide for enhanced 
authority to discover hidden shipments of hazardous materials 
and to clarify and enhance the inspection and enforcement 
authority of DOT officials and inspection personnel, thereby 
enabling them to more effectively identify hazardous materials 
shipments and to determine whether those shipments are made in 
accordance with the hazardous materials regulations. This 
proposal would expand DOT inspection authority to authorize a 
designated DOT officer or employee to: access, open, and 
examine a package (except for the packaging immediately 
adjacent to the hazardous materials contents) offered for or in 
transportation when the officer or employee has an objectively 
reasonable and articulable belief that the package may contain 
a hazardous material; remove from transportation a package or 
related packages in a shipment when the officer or employee has 
an objectively reasonable and articulable belief that the 
package or packages may pose an imminent hazard and 
contemporaneously documents that belief; gather information 
from the shipper, packaging manufacturer or retester, or others 
responsible for the package to determine the nature and hazards 
of the contents of the package; as necessary, order the 
shipper, packaging manufacturer or retester, or others 
responsible for the package to have the package transported to, 
opened, and the contents analyzed at an appropriate facility; 
and authorize properly qualified personnel to assist in the 
package opening and examination when safety might otherwise be 
compromised.
      This section also amends current law to require the 
Secretary to develop procedures to assist in the safe 
resumption of transportation of the package and transport unit 
when an inspection or investigation does not result in 
discovery of an imminent hazard. This section directs the 
Secretary to develop expedited procedures for hazardous 
materials that are perishable.
      The Committee believes strongly that DOT officials, law 
enforcement and inspection personnel must have the tools 
necessary to accurately determine whether hazardous materials 
are being transported safely and in accordance with the 
relevant law and regulations. To that end, the Committee 
supports the use of new technologies, such as the Hazmat 
Trucking Enforcer, that enable inspectors to conduct hazardous 
materials inspections in a more effective manner and to respond 
swiftly to any incident involving hazardous materials. The 
Committee notes that States must be in substantial compliance 
with a number of requirements under 49 U.S.C. 31102 as a 
condition of receiving MCSAP funding, including requirements to 
deploy technology to enhance the efficiency and effectiveness 
of commercial motor vehicle safety programs under 49 U.S.C 
31102(b)(1)(A), as amended.
      This section would also repeal a requirement that the 
Secretary maintain 30 hazardous materials safety inspectors 
more than the number authorized at the end of fiscal year 1990. 
PHMSA currently maintains inspectors in excess of this 
requirement.
Senate Bill
            Sec. 7337.
      This section improves safety by clarifying and enhancing 
the inspection and enforcement authority of DOT officials and 
inspection personnel. Section 5121(a) is amended to expressly 
state that the Secretary's enforcement authority includes the 
authority to conduct tests. This section also clarifies that 
persons subject to chapter 51 must make property, as well as 
records, reports, and information, available to the Secretary 
for inspection upon the Secretary's request.
      This section provides for enhanced authority for DOT 
officials to discover hidden shipments of hazardous materials. 
Section 5121(c) is amended to clarify and enhance the 
inspection and enforcement authority of DOT officials and 
inspection personnel, thereby enabling them to more effectively 
identify hazardous materials shipments and to determine whether 
those shipments are made in accordance with the Hazardous 
Materials Regulations.
      The Secretary is required to develop procedures for the 
safe resumption of transportation of a package or transport 
unit when an inspection or investigation does not result in the 
discovery of an imminent hazard. The Committee expects that the 
Secretary will take into consideration the impact of these 
procedures on the resumption of transit for time sensitive 
medical material such as radiopharmaceuticals and 
radionucleides.
      In addition, this section authorizes the Secretary to 
issue an emergency order when it is determined, by inspection, 
investigation, testing, or research, that a violation of 
hazardous material transportation laws, or an unsafe condition 
or practice, is causing an imminent hazard. In those 
situations, the Secretary is authorized to issue or impose 
emergency restrictions, prohibitions, recalls, or out-of-
service orders, without notice or the opportunity for a 
hearing, but only to the extent necessary to abate the imminent 
hazard.
      The Secretary is required to issue regulations 
implementing the new provisions governing package inspection 
and emergency orders.
      A new subsection (g) authorizes the Secretary to enter 
into grants, cooperative agreements, and other transactions to 
address security risk assessment and emergency preparedness. 
The objectives would include research, development, 
demonstration, risk assessment, emergency response planning, 
program support, and training activities.
      This section requires the Secretary, through the Bureau 
of Transportation Statistics, to submit a report at least every 
three years on the transportation of hazardous materials during 
the preceding three years, including a summary of hazmat 
shipments, deliveries, and movements during the period. In 
addition, the section would require a report every two years 
with, among other items, an analysis of hazmat accidents and 
incidents over the preceding two years, a list and summary of 
special permits, regulations and orders, and an evaluation of 
the effectiveness of enforcement activities relating to the 
transportation of hazmat during the period.
      The Secretary would be authorized to determine whether 
release of certain sensitive information contained in 
government records would be contrary to national security.
Conference Substitute
      The Conference adopts the House provision with 
modifications. The Conference believes strongly that DOT 
officials, law enforcement and inspection personnel must have 
the tools necessary to accurately determine whether hazardous 
materials are being transported safely and in accordance with 
the relevant law and regulations.

                         SEC. 7119. ENFORCEMENT

House Bill
            Sec. 7018.
      This section amends section 5122 to clarify the types of 
judicial relief, including a temporary or permanent injunction, 
punitive damages, and assessment of civil penalties, available 
to be granted in an action brought by the Attorney General. 
Subsection (b) is amended for clarity by changing the word 
``ameliorate'' to ``mitigate.''
Senate Bill
            Sec. 7338.
      This section clarifies the types of judicial relief, 
including civil penalties, that may be granted in an action 
brought by the Attorney General.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

                        SEC. 7120. CIVIL PENALTY

House Bill
            Sec. 7019.
      This section amends section 5123 to increase the maximum 
civil penalty from $27,500 to $50,000 for each violation of a 
law or regulation under Chapter 51. In those cases resulting in 
death, serious illness, severe injury to any person, or 
substantial destruction of property, the Secretary would be 
able to increase the maximum penalty to $100,000.
Senate Bill
            Sec. 7339.
      This section amends the civil penalty provisions in 
section 5123 to cover violations of special permits or 
approvals issued by DOT to ensure that appropriate enforcement 
action can be taken against persons violating those special 
authorities. Civil penalties for death, serious illness, or 
severe injury would be increased to up to $100,000 to serve as 
a deterrent against violations that could lead to such 
outcomes. Maximum civil penalty amounts for other violations 
are set at the current level of $32,500 and violations related 
to employee training will be subject to a minimum penalty of 
$450. A violator would be liable for interest that accrues on a 
civil penalty.
Conference Substitute
      The Conference adopts the House provisions with a 
modification.

                      SEC. 7121. CRIMINAL PENALTY

House Bill
            Sec. 7020.
      Section 5124 would be revised to include a new 
``reckless'' standard and to define the ``knowing,'' 
``reckless,'' and ``willful'' mental-state standards necessary 
to establish a criminal violation. Section 5124(a) would be 
amended to provide that a person who knowingly, willfully, or 
recklessly violates chapter 51 or a regulation, order, special 
permit, or approval issued under that chapter, is subject to a 
fine imposed under title 18 and/or imprisonment of not more 
than 5 years. In cases where a violation involves the release 
of a hazardous material that results in death or bodily injury 
to any person, the maximum term of imprisonment is 10 years.
      Section 5124(c) defines a ``willful'' violation as when 
the person has knowledge of the facts giving rise to the 
violation and the person has knowledge that the conduct was 
unlawful.
      Section 5124(d) defines a ``reckless'' violation as when 
a person displays a deliberate indifference or conscious 
disregard for the consequences of his or her conduct.
Senate Bill
            Sec. 7340.
      An increased criminal penalty of not more than twenty 
years is applied to existing law for a person who knowingly 
violated 49 U.S.C. 5104(b) or willfully violates chapter 51 or 
a regulation issued under that chapter, and thereby causes a 
release of hazardous material. The section also provides that a 
separate violation occurs for each day a violation continues.
Conference Substitute
      The Conference adopts the House provision.

                         SEC. 7122. PREEMPTION

House Bill
            Sec. 7021.
      This section adds language to ensure that when the 
preemption test required by this section is conducted, each 
requirement is independent in their application to the State or 
Indian tribe.
Senate Bill
            Sec. 7341.
      This section would include a new subsection outlining the 
purposes of the Secretary's current preemption authority and 
clarifies that a person may apply to the Secretary for a 
decision as to whether a fee imposed by a State, political 
subdivision of a State, or an Indian tribe is preempted. 
Further, this section deletes the requirement that the 
Secretary publish the reason for a delay in issuing a 
preemption determination in the Federal Register.
      Subsection 5125(j) is added to indicate that the 
preemption standard is to be applied independently to each non-
Federal requirement in order to determine whether it is 
preempted.
      Finally, new subsection 5125(i) clarifies that the 
Secretary's preemption authority does not apply to a procedure, 
penalty, required mental state, or other standard used by a 
State, political subdivision of a State, or Indian tribe to 
enforce hazardous material transportation requirements.
Compromise
      The Conference adopts the Senate provision with 
modifications.

                       SEC. 7123. JUDICIAL REVIEW

House Bill
            Sec. 7023.
      This section adds a new section 5127 providing for 
judicial review of final actions taken by the Secretary under 
chapter 51. This provision establishes the appropriate judicial 
forum for review of final agency actions in the areas of 
compliance, enforcement, civil penalties, rulemaking, and 
preemption.
      Under this proposal, the U.S. Court of Appeals for the 
District of Columbia or the U.S. Court of Appeals for the U.S. 
circuit in which a person seeking review resides or has his or 
her principal place of business would review the final action. 
The petition for review must be filed within 60 days after 
issuance of the order. The section describes judicial 
procedures, the authority of the court, and a requirement for 
prior objection.
Senate Bill
            Sec. 7343.
      This section adds a new section 5127 providing for 
judicial review of final actions taken by the Secretary under 
chapter 51. This provision establishes the appropriate judicial 
forum for review of final agency actions in the areas of 
compliance, enforcement, civil penalties, rulemaking, and 
preemption.
      Under the proposal, the United States Court of Appeals 
for the District of Columbia or for the circuit in which a 
person seeking review resides or has his or her principal place 
of business would review the final action. The petition for 
review must be filed within 60 days after issuance of the 
order.
Conference Substitute
      The Conference adopts the House provision with 
modifications.

                 SEC. 7124. RELATIONSHIP TO OTHER LAWS

House Bill
            Sec. 7022.
      This section updates the language in the current law 
without changing the scope.
Senate Bill
            Sec. 7342.
      This section requires that a person under contract to the 
United States government to design or inspect a packaging or 
packaging component used for transporting hazardous materials 
must comply with chapter 51 and the hazardous materials 
regulations.
      Further, this section enables hazardous materials law to 
supersede postal laws and regulations under titles 18 or 39 
only `in case of an imminent hazard.'
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

               SEC. 7125. AUTHORIZATION OF APPROPRIATIONS

House Bill
            Sec. 7024.
      This section provides funding for the DOT to implement 
the programs and grants established and required in chapter 51 
for fiscal years 2005 through 2007.
Senate Bill
            Sec. 7344.
      This section authorizes appropriations of $24,940,000 for 
FY 2005, $29,000,000 for FY 2006, and $30,000,000 for each of 
FYs 2007 through 2009.
Conference Substitute
      The Conference adopts the following structure:
             This section would authorize 
        appropriations of $24,940,000 for FY 2005, $29,000,000 
        for FY 2006, and $30,000,000 for each of FYs 2007 and 
        2008.
             A new subsection (b) would authorize 
        appropriations from the Hazardous Materials Emergency 
        Preparedness Fund account to carry out certain 
        activities:
                $4,000,000 for each of FYs 2005 through 2008 to 
                carry out section 5107(e) (training grants);
                $200,000 for each of FYs 2005 through 2008 to 
                carry out section 5115 (training curriculum for 
                the public sector);
                $21,800,000 for each FYs 2005 through 2008 for 
                sections 5116(a) and (b) to be split as 
                follows: $5,000,000 for section 5116(a); 
                $7,800,000 for 5116(b); and 35 percent of the 
                remainder for 5116(a) and 65 percent of the 
                remainder for 5116(b). The Secretary may 
                increase the amount for 5116(b) if the 
                Secretary determines it appropriate based upon 
                the relative training and planning needs of 
                individual applicants.
                $150,000 for each of FYs 2005 through 2008 to 
                carry out section 5116(f) (monitoring and 
                technical assistance to the public sector); 
                $1,000,000 for each of FYs 2005 through 2008 to 
                carry out section 5116(j) (supplemental 
                training grants);
                $625,000 for each of FYs 2005 through 2008 to 
                carry out section 5116(i)(3) (for publication 
                and distribution of the Emergency Response 
                Guidebook).
                Funding for issuance of hazmat licenses is 
                authorized to be appropriated for such amounts 
                as may be necessary to carry out section 5103a.
                Administrative costs for carrying out certain 
                programs are capped at 2 percent.

        SEC. 7126. REFERENCES TO THE SECRETARY OF TRANSPORTATION

House Bill
            Sec. 7026.
      This section designates that any reference to the 
``Secretary of Transportation'' in chapter 51 be simplified to 
``Secretary''.
Senate Bill
            Sec. 7346.
      This section clarifies that references to the ``Secretary 
of Transportation'' in certain sections of chapter 51 are 
simplified to ``Secretary''.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

                      SEC. 7127. CRIMINAL MATTERS

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7363.
      This section provides for a correction to title 18 of the 
United States Code for the transportation of explosives. It 
makes explosives that are regulated by the DOT and the 
Department of Homeland Security (DHS) subject to their 
authority.
Conference Substitute
      The Conference adopted the Senate provision with 
modifications.

           SEC. 7128. ADDITIONAL CIVIL AND CRIMINAL PENALTIES

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7345.
      This section amends criminal penalties for violations in 
transporting hazardous materials by air (49 U.S.C. 46312) to 
clarify that the regulations referred to in that section 
include the Hazardous Materials Regulations issued by the 
Secretary under chapter 51. Consequently, violations in 
transporting hazardous materials by air would clearly 
constitute violations of both Federal hazardous material 
transportation laws and the Federal Aviation Act.
      This section also would allow the Department of Justice 
to seek restitution against persons convicted of a criminal 
offense under 49 U.S.C. 5124.
Conference Substitute
      The Conference adopted the Senate provision.

     SEC. 7129. HAZARDOUS MATERIAL TRANSPORTATION PLAN REQUIREMENT

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7368.
      This section would exempt farmers as defined in the 
section from certain hazardous materials transportation plans 
for local farm-related shipments within 150 miles of their 
farm.
Conference Substitute
      The Conference adopts the Senate provision.

  SEC. 7130. DETERMINING AMOUNT OF UNDECLARED SHIPMENTS OF HAZARDOUS 
                  MATERIALS ENTERING THE UNITED STATES

House Bill
            Sec. 7025.
      This section requires the GAO to conduct a study to 
propose methods to determine the amount of undeclared shipments 
of hazardous materials entering the United States.
Senate Bill
            Sec. 7364.
      This section authorizes the Secretary to initiate a 
program to randomly inspect cargo shipments at U.S. Customs 
ports of entry to determine the extent to which undeclared 
hazardous material is being offered for transportation in 
commerce. DOT inspection personnel, in coordination with DHS 
officials, are authorized to open and inspect containers at any 
U.S. Customs port of entry. The inspections are then carried 
out by DOT inspection personnel at U.S. Customs ports of entry 
where they are similar to border inspections, and they would be 
based upon random selections made by supervisory personnel not 
present at the site of the inspections.
Conference Substitute
      The Conference adopts the House provision.

            SEC. 7131. HAZARDOUS MATERIALS RESEARCH PROJECTS

House Bill
            Sec. 5216.
      This section authorizes PHMSA to enter into a contract 
with the National Academy of Science to carry out the 9 
research projects called for in the 2005 Special Report 283 of 
the Transportation Research Board entitled ``Cooperative 
Research for Hazardous Materials Transportation: Defining the 
Need, Converging on Solutions''.
Senate Bill
            Sec. 7370.
      This section creates a HAZMAT research cooperative 
through the National Academy of Sciences' Transportation 
Research Board.
Conference Substitute
      The Conference adopts the House provision.

 SEC. 7132. NATIONAL FIRST RESPONDER TRANSPORTATION INCIDENT RESPONSE 
                                 SYSTEM

House Bill
            Sec. 7027.
      This section authorizes $2,500,000 for each of fiscal 
years 2005 through 2007 for Operation Respond.
Senate Bill
            Sec. 7367.
      This section would authorize $5,000,000 annually for FYs 
2005 through 2009 for Operation Respond to update the OREIS and 
permits the Secretary to require the Operation Respond system 
function across multiple transportation modes.
Conference Substitute
      The conference adopts the House provision.

               SEC. 7133. COMMON CARRIER PIPELINE SYSTEM

House Bill
      This section requires a study to examine the economic, 
environmental, and homeland security advantages and 
disadvantages of operating a common carrier pipeline system in 
Texas, Louisiana, Mississippi, and Alabama for the 
transportation of aromatic chemicals.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference adopts the House provision.

                Subtitle B--Sanitary Food Transportation

                         SEC. 7201. SHORT TITLE

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7381.
      This section sets forth the short title for the Sanitary 
Food Transportation Act of 2003. This title would reallocate 
responsibilities for food transportation safety among the U.S. 
Department of Health and Human Services, the U.S. Department of 
Transportation, and the U.S. Department of Agriculture.
Conference Substitute
      The Conference adopts the Senate provision.

 SEC. 7202. RESPONSIBILITIES OF SECRETARY OF HEALTH AND HUMAN SERVICES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7382.
      This section amends section 402 of the Federal Food, 
Drug, and Cosmetic Act (the Act; 21 U.S.C. 391) to provide that 
food is adulterated if transported in violation of safe 
transportation practices prescribed in the new section 416 of 
the Act.
      Subsection (b) adds to the Act a new section 416 
requiring the Secretary of HHS to establish by regulation 
sanitary transportation practices to be followed by shippers, 
carriers, and others engaged in food transport. The Secretary 
of HHS may prescribe practices relating to matters such as 
sanitation, packaging and protective measures; limitations on 
the use of vehicles; information sharing between shippers and 
carriers; and record keeping, reporting, and compliance with 
inspections.
      It also authorizes the Secretary of HHS to publish in the 
Federal Register (and amend as needed) lists of non-food 
products that could render food products adulterated if shipped 
simultaneously or subsequently in the same vehicle.
      The section authorizes the Secretary of HHS to waive all 
or part of the requirements of section 416, in appropriate 
circumstances, with respect to particular classes of persons, 
vehicles, food, or non-food products.
      This provision also preempts State or local laws 
concerning transportation of food. Finally, it requires the 
heads of other Federal agencies, including the Secretaries of 
Transportation and the Department of Agriculture, and the 
Administrator of the Environmental Protection Agency, to assist 
the Secretary of HHS, upon request, in carrying out this 
section.
      Paragraph (c) of this section would add to the Act a new 
section requiring persons subject to these provisions to 
cooperate with HHS inspections of records.
      Subsection (d) amends section 301 of the Act to make 
violations of requirements added by this section prohibited 
acts subject to the sanctions provided in chapter III of the 
Act.
Conference Substitute
      The Conference adopts the Senate version with 
modifications.

          SEC. 7203. DEPARTMENT OF TRANSPORTATION REQUIREMENTS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7383.
      This section requires the Secretary, in consultation with 
the Secretaries of HHS and the Department of Agriculture, to 
establish inspection procedures for identifying suspected 
incidents of contamination or adulteration of food that might 
violate regulations issued under section 416 of the Federal 
Food, Drug, and Cosmetic Act, and of meat and poultry products 
subject to detention under section 402 of the Federal Meat 
Inspection Act (21 U.S.C. 672) and section 19 of the Poultry 
Products Inspection Act (21 U.S.C. 467a). In addition, it 
requires the Secretary to train DOT personnel who perform motor 
vehicle and railroad related safety inspections to identify 
practices and conditions that could pose a threat to food 
safety and to notify the secretaries of HHS and the Department 
of Agriculture of any instances of potential food contamination 
identified during those inspections.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications.

                       SEC. 7204. EFFECTIVE DATE

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7384.
      This section makes the changes in law under the subtitle 
align with the Federal fiscal year, which is particularly 
important for the transfer of duties among different agencies.
Conference Substitute
      The Conference adopts the Senate version with 
modifications.

     Subtitle C--Research and Innovative Technology Administration

                  SEC. 7301. ADMINISTRATIVE AUTHORITY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7361.
      This section provides RITA necessary administrative 
authority to conduct effective research on transportation 
service and infrastructure assurance and to prevent security-
sensitive information developed in the course of that research 
from aiding persons who might want to disrupt the 
transportation system.
Conference Substitute
      The conference adopts the Senate version with 
modifications.

      TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE

   SEC. 8001. DISCRETIONARY SPENDING LIMITS FOR THE HIGHWAY AND MASS 
                           TRANSIT CATEGORIES

House Bill
            Sec. 8001.
      This section amends section 251(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 to continue separate 
spending limits for the highway and mass transit categories in 
Highway Trust Fund budget authority, new budget authority, and 
outlays for fiscal years 2004 through 2009. The section also 
amends section 250(c)(4) of the Balanced Budget and Emergency 
Deficit Control Act of 1985 to reference this Act instead of 
the Transportation Equity Act for the 21st Century, and to 
allow for successor accounts to be established in the budget 
accounts used to track highway and transit spending.
Senate Bill
            Sec. 3102(a) and (c).
      This section amends section 251(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 to continue separate 
spending limits for the highway and mass transit categories in 
Highway Trust Fund budget authority for fiscal years 2005 
through 2009. This section amends section 250(c)(4) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 to 
reference this Act instead of the Transportation Equity Act for 
the 21st Century, and defines the budget accounts to be used to 
track highway and transit spending pursuant to this Act.
Conference Substitute
      The Conference adopts the House version without fiscal 
year 2004.

     SEC. 8002. ADJUSTMENTS TO ALIGN HIGHWAY SPENDING WITH REVENUES

House Bill
            Sec. 8002.
      This section amends section 251(b)(1) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 to adjust 
obligations from the Highway Account of the Highway Trust Fund 
to actual levels of highway receipts for fiscal years 2004 
through 2009.
Senate Bill
            Sec. 3102(b).
      This section amends section 251(b)(1) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 to adjust 
obligations from the Highway Account of the Highway Trust Fund 
to actual levels of highway receipts for fiscal years 2005 
through 2009.
Conference Substitute
      The Conference adopts the House version without fiscal 
year 2004.

               SEC. 8003. LEVEL OF OBLIGATION LIMITATIONS

House Bill
            Sec. 8003.
      This section sets the obligation limitation levels for 
the purposes of section 251(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 for the highway category 
and mass transit category, including both Highway Trust Funds 
and new budget authority, for fiscal years 2004 through 2009.
Senate Bill
            Sec. 3103.
      This section sets the obligation limitation levels for 
the purposes of section 251(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 for the highway category 
and mass transit category, for fiscal years 2005 through 2009.
Conference Substitute
      The Conference adopts the House version without fiscal 
year 2004.

                  SEC. 8004. ENFORCEMENT OF GUARANTEE

House Bill
            Sec. 8004.
      This section amends clause 3 of Rule XXI of the Rules of 
the House of Representatives to update the cite to this Act and 
add language providing that obligation limitation relating to 
surface transportation projects under section 1602 of the 
Transportation Equity Act for the 21st Century and section 7102 
of the House bill shall be assumed to be administered on the 
basis of sound program management practices allowing States to 
decide high priority project funding priorities within State 
allocations.
Senate Bill
      No comparable provision.
Conference Substitute
      The Conference adopts the House version without fiscal 
year 2004. Also, this section conforms the cites to the new 
act.

     SEC. 8005. TRANSFER OF FEDERAL TRANSIT ADMINISTRATIVE EXPENSES

House Bill
            Sec. 8005.
      This section states that it shall be in order for 
purposes of clauses 2 and 3 of Rule XXI of the House of 
Representatives to transfer funds in appropriations bills from 
Federal Transit Administration administrative expenses to other 
mass transit budget accounts under section 250(c)(4)(C) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.
Senate Bill
      No comparable provision.
Conference Substitute
      The Conference adopts the House version without fiscal 
year 2004.

                       TITLE IX--RAIL PROVISIONS

            SEC. 9001. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT

House Bill
            Sec. 9001.
      Section 9001 reauthorizes the Swift Rail Development Act 
(``Swift Act'') and makes some technical amendments.
      Subsection (a) amends the Swift Act to address ``corridor 
development'' rather than ``corridor planning.'' It also 
authorizes the acquisition of track, signals, rail rolling 
stock and locomotives under the program.
      Subsection (b) reauthorizes the Swift Act at $100 million 
per year from Fiscal Year 2006 through Fiscal Year 2013. Of 
this $100 million, $70 million is for corridor development 
activities and $30 million is for technology development 
activities.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference adopts the House provision.

      SEC. 9002. CAPITAL GRANTS FOR RAIL LINE RELOCATION PROJECTS

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7602.
      This section establishes a grant program to provide 
financial assistance for local rail line relocation and 
improvement projects. In order for a State to be eligible for a 
grant for an improvement construction project, the project 
must: mitigate the adverse effects of rail traffic on safety, 
motor vehicle flow, community quality of life, including noise 
mitigation, or economic development; or involve a lateral or 
vertical relocation of any portion of the rail line.
      There is $350 million for each fiscal year 2006 through 
2009 authorized for these grants. At least half of the funds 
awarded under this section shall not be more than $20 million 
each and not more than twenty-five percent of the total amount 
may be used for one project. A State, or other eligible entity, 
will be required to pay at least ten percent of the shared 
costs of the project, whether it be through real property, a 
contribution of services, or previous costs spent on the 
project before the application was filed. The State may also 
seek financial contributions from private entities benefiting 
from the rail line relocation or improvement project. This 
program will be implemented no later than October 1, 2006.
Conference Substitute
      The Conference adopts the Senate provisions with 
modifications. New language added during conference ensures the 
Secretary considers the effects of a new rail line, or 
improvement to an existing rail line, on motor vehicle and 
pedestrian traffic, safety, community quality of life, and area 
commerce, as well as freight and passenger rail operations.

          SEC. 9003. REHABILITATION AND IMPROVEMENT FINANCING

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7603.
      Section 7603 changes the current Railroad Rehabilitation 
and Improvement Financing (RRIF) program administered by the 
Federal Railroad Administration through the Secretary of 
Transportation. Historically, RRIF loans have taken too long to 
process and obstacles to participation have been too high. 
These statutory changes were made to correct past problems and 
encourage greater utilization of the RRIF program.
      Subsection (c) adds to the list of priorities those 
projects that would enhance service and capacity in the 
national transportation system. The Secretary should give 
priority consideration to applications showing an ability to 
help achieve these goals.
      This section also increases the authorization to $6 
billion to ensure adequate resources are available. The 
Secretary may not require an applicant for a direct loan or 
loan guarantee to provide collateral. Congress seeks to 
encourage, not discourage, major rail investment in the U.S.
      This section also provides a time limit of 90 days for 
the Secretary's approval or disapproval of direct loan or loan 
guarantee applications. No fees are to be charged by the 
Secretary in connection with a direct loan or loan guarantee, 
unless otherwise stated under section 502 of title 45. Criteria 
outlining the Secretary's approval standards will be published 
within thirty days of enactment.
Conference Substitute
      The Conference adopts the Senate provisions with 
modifications. Among the Senate features retained is the 
legislative overruling of the a priori limits on loan size and 
cohort composition, as well as excessive collateralization 
requirements, contained in the existing Department of 
Transportation-Office of Management and Budget memorandum of 
understanding on the RRIF program. The bill also retains the 
Senate language overruling both the memorandum and DOT 
regulations requiring rejection by a private lender before an 
applicant may obtain a RRIF loan through DOT. To ensure that 
adequate resources are available, the authorization level 
increases from the proposed $6 billion in the Senate language 
to $35 billion. Also, the maximum portion that may be used for 
non-Class I railroad loans is increased from the proposed $3 
billion in the Senate language to $7 billion.
      Another modification allows the Secretary to provide 
direct loans and loan guarantees to interstate compacts formed 
pursuant to the 1997 Amtrak reform law, and solely for the 
purpose of constructing a rail connection between a plant or 
facility and a second rail carrier, limited option rail freight 
shippers that own or operate a plant or other facility that is 
served by no more than a single railroad. Also, the Secretary 
is required to give priority to projects that materially 
alleviate rail capacity problems that degrade the provision of 
service to shippers and fulfill a need in the national 
transportation system. RRIF should be used to help improve 
service and capacity in the national rail system wherever 
feasible.
      A change was made to allow the Secretary to charge a 
reasonable evaluation fee for the cost of appraisal, and for 
making necessary determinations and findings. The amounts 
collected under this section will be credited directly to the 
Safety and Operations account of the Federal Railroad 
Administration.

SEC. 9004. REPORT REGARDING IMPACT ON PUBLIC SAFETY OF TRAIN TRAVEL IN 
                  COMMUNITIES WITHOUT GRADE SEPARATION

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7604.
      The bill would require the Secretary of Transportation to 
conduct a study of the impact of blocked highway-railroad grade 
crossings on the ability of emergency responders to perform 
public safety and security duties not later than one year after 
the date of enactment of this act.
Conference Substitute
      The Conference adopts the Senate provision.

         SEC. 9005. WELDED RAIL AND TANK CAR SAFETY IMPROVEMENT

House Bill
      No comparable provision in the House bill.
Senate Bill
            Sec. 7326.
      The bill would require the Federal Railroad 
Administration (FRA) to validate a predictive model for certain 
rail tank car standards; initiate a rulemaking on standards and 
complete an analysis of the impact resistance of steel used in 
pressurized tank cars built before 1989; and, require railroads 
to improve inspection procedures for continuous welded rail 
track and the identification of cracks in rail joint bars.
Conference Substitute
      The Conference adopts the Senate provision with 
modifications to what the Administration is required to do with 
the results of the analysis.

                       SEC. 9006. ALASKA RAILROAD

House Bill
      No comparable provision in the House bill.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      The Conference authorizes the Secretary of Transportation 
to make grants to the Alaska railroad for capital 
rehabilitation and improvements benefiting its passenger 
operation. Such sums as may be necessary are authorized to 
carry out this section.

         SEC. 9007. STUDY OF RAIL TRANSPORTATION AND REGULATION

House Bill
      No comparable provision in House bill.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference requires the Secretary of Transportation, 
within 180 days of enactment of this Act, to enter into a 
contract with the Transportation Research Board of the National 
Academy of Sciences to conduct a comprehensive study of the 
Nation's railroad transportation system since the enactment of 
the Staggers Rail Act of 1980. The study shall address and make 
recommendations on (1) the performance of the Nation's major 
railroads regarding service levels, service quality, and rates; 
(2) the projected demand for freight transportation over the 
next two decades and the constraints limiting the railroad's 
ability to meet that demand; (3) the effectiveness of public 
policy in balancing the need for railroads to earn adequate 
returns with those of shippers for reasonable rates and 
adequate service; and (4) the future role of the Surface 
Transportation Board in regulating railroad rates, service 
levels, and the railroads' common carrier obligations, 
particularly as railroads may become revenue adequate.

        SEC. 9008. HAWAII PORT INFRASTRUCTURE EXPANSION PROGRAM

House Bill
      No comparable provision in the House bill.
Senate Bill
      No comparable provision in the Senate bill.
Conference Substitute
      This provision designates MARAD as the lead federal 
agency to transfer and administer federal funds for intermodal 
and port improvements in the State of Hawaii.

                   TITLE X--MISCELLANEOUS PROVISIONS

        Subtitle A--Sportfishing and Recreational Boating Safety

                        SEC. 10101. SHORT TITLE

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7501.
Conference Substitute
      The Conference adopts the Senate version.

    CHAPTER 1--DINGELL-JOHNSON SPORT FISH RESTORATION ACT AMENDMENTS

  SEC. 10111. AMENDMENT OF DINGELL-JOHNSON SPORT FISH RESTORATION ACT

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7511.
Conference Substitute
      The Conference adopts the Senate version.

              SEC. 10112. AUTHORIZATION OF APPROPRIATIONS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7512.
Conference Substitute
      The Conference adopts the Senate version.

             SEC. 10113. DIVISION OF ANNUAL APPROPRIATIONS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7513.
Conference Substitute
      The Conference adopts the Senate version.

                  SEC. 10114. MAINTENANCE OF PROJECTS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7514.
Conference Substitute
      The Conference adopts the Senate version.

                   SEC. 10115. BOATING INFRASTRUCTURE

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7515.
Conference Substitute
      The Conference adopts the Senate version.

SEC. 10116. REQUIREMENTS AND RESTRICTIONS CONCERNING USE OF AMOUNTS FOR 
                      EXPENSES FOR ADMINISTRATION

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7516.
Conference Substitute
      The Conference adopts the Senate version.

SEC. 10117. PAYMENTS OF FUNDS TO AND COOPERATION WITH PUERTO RICO, THE 
  DISTRICT OF COLUMBIA, GUAM, AMERICAN SOMOA, THE COMMONWEALTH OF THE 
            NORTHERN MARIANA ISLANDS, AND THE VIRGIN ISLANDS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7517.
Conference Substitute
      The Conference adopts the Senate version.

           SEC. 10118. MULTISTATE CONSERVATION GRANT PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7518.
Conference Substitute
      The Conference adopts the Senate version.

  SEC. 10119. EXPENDITURE OF REMAINING BALANCE IN BOAT SAFETY ACCOUNT

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7519.
Conference Substitute
      The Conference adopts the Senate version.

             CHAPTER 2--CLEAN VESSEL ACT OF 1992 AMENDMENTS

                       SEC. 10131. GRANT PROGRAM

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7531.
Conference Substitute
      The Conference adopts the Senate version.

       CHAPTER 3--RECREATIONAL BOATING SAFETY PROGRAM AMENDMENTS

                    SEC. 10141. TECHNICAL CORRECTION

House Bill
            Sec. 1812.
      This section extinguishes all federal claims relating to 
the donation and use of the Ex Competent (AFDM6), Unit 
Identification Code number 13862. Further, the provision gives 
Tanadgusix Corporation (TDX) title to the drydock free and 
clear.
Senate Bill
      No comparable provision.
Conference Substitute
      The Conference adopts modified language that requires TDX 
to transfer all rights, title and interest in and to the vessel 
to GSA, consistent with the ruling by the 9th Circuit Court of 
Appeals filed on April 21, 2005. GSA must then sell the vessel 
at fair market value for use outside the United States, and as 
a condition of that conveyance the vessel is prohibited from 
ever operating in the United States. The proposal also includes 
an authorization of appropriations for $4,000,000. It is the 
intent of the Conference that nothing in this section shall 
effect any lawsuits relating to the transfer or use of the 
vessel, and that this section shall not be applied 
retroactively.

                SEC. 10142. AVAILABILITY OF ALLOCATIONS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7552.
Conference Substitute
      The Conference adopts the Senate version.

  SEC. 10143. AUTHORIZATION OF APPROPRIATIONS FOR STATE RECREATIONAL 
                        BOATING SAFETY PROGRAMS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7553.
Conference Substitute
      The Conference adopts the Senate version.

               Subtitle B--Other Miscellaneous Provisions

 SEC. 10201. NOTICE REGARDING PARTICIPATION OF SMALL BUSINESS CONCERNS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1830
      This provision requires the Secretary to give notice to 
each State or political subdivisions of States to which he 
awards a grant or other Federal funds of the criteria for 
participation by a small business concern in any program or 
project that is fund in any way by the Federal Government under 
section 155 of the Small Business Reauthorization and 
Manufacturing Assistance Act of 2004.
Conference Substitute
      The Conference adopts the Senate provision.

                 SEC. 10202. EMERGENCY MEDICAL SERVICES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7218.
      This section would create a new section 407(a) of title 
23 U.S.C. directing the Secretary of Transportation and the 
Secretary of Homeland Security to establish jointly a Federal 
Interagency Committee on Emergency Medical Services 
(Interagency Committee). The purposes of the Interagency 
Committee would be to, among other things, ensure coordination 
among the Federal agencies involved with State, local, tribal, 
or regional emergency medical services and 9-1-1 systems. This 
section also would provide funding to aid the States in 
conducting coordinated emergency medical services and 9-1-1 
programs as described in this section.
            Conference Substitute
      The Conference adopts the Senate version with these 
modifications: it does not create a new 407(a) section of title 
23, U.S.C. and does not provide funding for State emergency 
medical services and 9-1-1 programs. It also adds the Secretary 
of Health and Human Services as one of the coordinators of the 
Interagency Committee, along with the Secretary of 
Transportation and the Secretary of Homeland Security.

                      SEC. 10203. HUBZONE PROGRAM

House Bill
            Sec. 1821.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House version.

          SEC. 10204. CATASTROPHIC HURRICANE EVACUATION PLANS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 1834.
      This section requires the Secretary and the Secretary of 
Homeland Security to develop a comprehensive plan for the 
evacuation of the coastal areas for disasters that may occur.
Conference Substitute
      The Conference adopts the Senate version.

        SEC. 10205. INTERMODAL TRANSPORTATION FACILITY EXPANSION

House Bill
            Sec. 1827.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House version.

  SEC. 10206. ELIGIBILITY TO PARTICIPATE IN WESTERN ALASKA COMMUNITY 
                       DEVELOPMENT QUOTA PROGRAM

House Bill
            Sec. 1825.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference adopts the House version.

           SEC. 10207. RAIL REHABILITATION AND BRIDGE REPAIR

House Bill
      No comparable provision in House bill.
Senate Bill
      No comparable provision in Senate bill.
Conference Substitute
      The Conference authorizes such sums as may be necessary 
for work on six shortline rail rehabilitation and bridge repair 
projects in the State of Alabama for the period encompassing 
fiscal year 2006 through 2010.

              SEC. 10208. RENTED OR LEASED MOTOR VEHICLES

House Bill
            Sec. 1409
Senate Bill
      No comparable language in Senate bill.
Conference Substitute
      The Conference adopts the House version.

          Subtitle C--Specific Vehicle Safety-Related Rulings

      SEC. 10301. VEHICLE ROLLOVER PREVENTION AND CRASH MITIGATION

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7251.
      This section requires the Secretary to issue a set of 
standards to reduce death and injuries caused by passenger 
vehicle rollovers. To reduce rollovers, the rules will 
establish performance criteria consistent with stability-
enhancing technologies. To reduce complete or partial ejection 
of occupants, the Secretary will establish performance criteria 
that takes into account various ejection mitigation systems, 
including consideration of advanced side glazing, side air 
curtains, and side impact air bags. The Secretary shall 
complete a rulemaking to upgrade door locks and door retention. 
Finally, to better protect occupants during a rollover, the 
Secretary shall upgrade existing roof strength standards for 
the driver and passenger sides. The bill includes deadlines for 
issuing these rules. If, however, the statutory deadlines 
cannot be met, upon a notification to Congress, the Secretary 
may establish a new deadline.
Conference Substitute
      The Conference adopts the Senate version.

          SEC. 10302. SIDE-IMPACT CRASH PROTECTION RULEMAKING

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7252.
      This section requires NHTSA to issue a rulemaking by July 
2008 that would require automobiles to better protect 
passengers in a side-impact crash, and to conduct a study of 
front-impact crashes within one year. The bill includes a 
deadline for issuing this rule.
Conference Substitute
      The Conference adopts the Senate version with the 
modification that if the statutory deadlines cannot be met, 
upon a notification to Congress, the Secretary may establish a 
new deadline.

                       SEC. 10303. TIRE RESEARCH

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7253.
      This section requires the Secretary to submit a report to 
Congress regarding research on tire aging.
Conference Substitute
      The Conference adopts the Senate version.

        SEC. 10304. VEHICLE BACKOVER AVOIDANCE TECHNOLOGY STUDY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7254.
      This section requires NHTSA to study technologies that 
would reduce injuries and deaths caused by cars and trucks 
backing up.
Conference Substitute
      The Conference adopts the Senate version.

            SEC. 10305. NON-TRAFFIC INCIDENT DATA COLLECTION

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7255.
      This section requires NHTSA to conduct a study of non-
traffic crashes, with the focus on persons injured or killed 
due to a car backing up. NHTSA currently does not collect this 
data on a regular basis because these injuries and deaths occur 
in private driveways and parking lots, not on public streets 
where data is currently collected.
Conference Substitute
      The Conference adopts the Senate version.

           SEC. 10306. STUDY OF SAFETY BELT USE TECHNOLOGIES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7256.
      This section would repeal existing law that limits 
audible seat belt reminders to no more than eight seconds and 
requires the Secretary to conduct a study of advanced safety 
belt reminder systems to help achieve further gains in safety 
belt use.
Conference Substitute
      The Conference adopts the Senate study, but does not 
adopt the repeal of existing seat belt law.

     SEC. 10307. AMENDMENT OF AUTOMOBILE INFORMATION DISCLOSURE ACT

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7257.
      This section requires automobile safety ``star'' ratings 
compiled by NHTSA's New Car Assessment Program (NCAP) for 
front, side, and rollover resistance tests to be placed on the 
window sticker of new automobiles.
Conference Substitute
      The Conference adopts the Senate version with a 
modification to make the provision effective on September 1, 
2007.

                   SEC. 10308. POWER WINDOW SWITCHES

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7258.
      This section requires NHTSA to issue a rulemaking by 
April 2007 mandating power window switches in passenger 
automobiles that raise the window only when the switch is 
pulled up or out.
Conference Substitute
      The Conference adopts the Senate version.

                  SEC. 10309. 15-PASSENGER VAN SAFETY

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7259.
      This section requires the Secretary to test 15-passenger 
vans as part of the rollover resistance program of the NCAP 
program and prohibits school systems from purchasing or leasing 
new 15-passenger vans to transport children, unless the van 
complies with motor vehicle standards prescribed for school 
buses.
Conference Substitute
      The Conference adopts the Senate version.

              SEC. 10310. AUTHORIZATION OF APPROPRIATIONS

House Bill
      No comparable provision in House bill.
Senate Bill
            Sec. 7262.
      This section authorizes funds for NHTSA to carry out this 
subtitle, chapter 301 of title 49, and part C of title 49, 
U.S.C.
Conference Substitute
      The Conference adopts the Senate version.



                            C O N T E N T S

                              ----------                              
                                                                   Page
Title XI--Highway Reauthorization and Excise Tax Simplification..     1
 I. Trust Fund Reauthorization........................................1
        A. Extension of Highway Trust Fund and Aquatic Resources 
            Trust Fund Expenditure Authority and Related Taxes 
            (sec. 10002 of the House bill, secs. 5101 and 5102 of 
            the Senate amendment, and secs. 4041, 4051, 4071, 
            4081, 4221, 4481, 4482, 4483, 6412, 9503, and 9504 of 
            the Code)............................................     1
II. Excise Tax Reform and Simplification..............................8
        A. Highway Excise Taxes..................................     8
            1. Modify gas guzzler tax (sec. 5201 of the Senate 
                amendment and sec. 4064 of the Code).............     8
            2. Exclusion for tractors weighing 19,500 pounds or 
                less from excise tax on heavy trucks and trailers 
                (sec. 5202 of the Senate amendment and sec. 4051 
                of the Code).....................................     9
            3. Exemption for bulk beds from excise tax on retail 
                sale of heavy trucks and trailers (sec. 5203 of 
                the Senate amendment)............................    10
            4. Volumetric excise tax credit for alternative fuels 
                (sec. 5204 of the Senate amendment and secs. 
                4041, 4101, 6426, and 6427 of the Code)..........    12
        B. Aquatic Excise Taxes..................................    16
            1. Eliminate Aquatic Resources Trust Fund and 
                transform Sport Fish Restoration Account (sec. 
                5211 of the Senate amendment and secs. 9503 and 
                9504 of the Code)................................    16
            2. Repeal of harbor maintenance tax on exports (sec. 
                5212 of the Senate amendment and sec. 4461 of the 
                Code)............................................    18
            3. Cap on excise tax on certain fishing equipment 
                (sec. 5213 of the Senate amendment and sec. 4161 
                of the Code).....................................    19
        C. Aerial Excise Taxes...................................    21
            1. Clarification of excise tax exemptions for 
                agricultural aerial applicators and exemption for 
                fixed-wing aircraft engaged in forestry 
                operations (sec. 5221 of the Senate amendment and 
                secs. 4261 and 6420 of the Code).................    21
            2. Modify the definition of rural airport (sec. 5222 
                of the Senate amendment and sec. 4261 of the 
                Code)............................................    22
            3. Exempt from ticket taxes transportation provided 
                by seaplanes (sec. 5223 of the Senate amendment 
                and secs. 4261 and 4083 of the Code).............    23
            4. Exempt certain sightseeing flights from taxes on 
                air transportation (sec. 5224 of the Senate 
                amendment and sec. 4281 of the Code).............    24
        D. Taxes Relating to Alcohol.............................    25
            1. Repeal special occupational taxes on producers and 
                marketers of alcoholic beverages (sec. 5231 of 
                the Senate amendment and secs. 5081, 5091, 5111, 
                5112, 5113, 5117, 5121, 5122, 5123, 5125, 5131, 
                5132, 5141, 5147, 5148, and 5276 of the Code)....    25
            2.  Modify limitation on rate of rum excise tax cover 
                over to Puerto Rico and Virgin Islands (sec. 5232 
                of the Senate amendment).........................    27
            3. Provide an income tax credit for cost of carrying 
                tax-paid distilled spirits in wholesale 
                inventories and in control State bailment 
                warehouses (sec. 5233 of the Senate amendment and 
                new sec. 5011 of the Code).......................    29
            4. Quarterly excise tax filing for small alcohol 
                excise taxpayers (sec. 5234 of the Senate 
                amendment and sec. 5061 of the Code).............    30
        E. Sport Excise Taxes....................................    33
            1. Custom gunsmiths (sec. 5241 of the Senate 
                amendment and sec. 4182 of the Code).............    33
III.Miscellaneous Provisions.........................................34

        A. Motor Fuel Tax Enforcement Advisory Commission (sec. 
            5301 of the Senate amendment)........................    34
        B. National Surface Transportation Infrastructure 
            Financing Commission (sec. 5302 of the Senate 
            amendment)...........................................    36
        C. Expand Highway Trust Fund Expenditure Purposes to 
            Include Funding for Studies of Supplemental or 
            Alternative Financing for the Highway Trust Fund 
            (sec. 5303 of the Senate amendment)..................    38
        D. Delta Regional Transportation Plan (sec. 1806 of the 
            House bill and sec. 5304 of the Senate amendment)....    41
        E. Establish Build America Corporation (sec. 5305 of the 
            Senate amendment)....................................    43
        F. Increase in Dollar Limits for Qualified Transportation 
            Fringe Benefits (sec. 5306 of the Senate amendment)..    44
        G. Treasury Study of Highway Fuels Used by Trucks for 
            Non-Transportation Purposes (sec. 5307 of the Senate 
            amendment)...........................................    45
        H. Tax-Exempt Financing of Highway Projects and Rail-
            Truck Transfer Facilities (sec. 5308 of the Senate 
            amendment and sec. 142 of the Code)..................    46
        I. Tax Treatment of State Ownership of Railroad Real 
            Estate Investment Trust (sec. 5309 of the Senate 
            amendment and secs. 103, 115, 336, and 337 of the 
            Code)................................................    49
        J. Incentives for Installation of Alternative Fuel 
            Refueling Property (secs. 5310 and 2010 of Senate 
            amendment)...........................................    52
        K. Modify Recapture of Section 197 Amortization (sec. 
            5311 of the Senate amendment)........................    53
        L. Diesel Fuel Tax Evasion Report (sec. 5312 of the 
            Senate amendment)....................................    55
        M. Leaking Underground Storage Tank Trust Fund (sec. 9508 
            of the Code).........................................    57
        N. Revenue Provisions....................................    59
            1. Treatment of contingent payment convertible debt 
                instruments (sec. 5501 of the Senate amendment)..    59
            2. Frivolous tax submissions (sec. 5502 of the Senate 
                amendment).......................................    61
            3. Increase in certain criminal penalties (sec. 5503 
                of the Senate amendment).........................    62
            4. Doubling of certain penalties, fines, and interest 
                on underpayments related to certain offshore 
                financial arrangements (sec. 5504 of the Senate 
                amendment).......................................    64
            5. Modification of coordination rules for controlled 
                foreign corporation and passive foreign 
                investment company regimes (sec. 5505 of the 
                Senate amendment)................................    68
            6. Declaration by chief executive officer relating to 
                Federal annual corporate income tax return (sec. 
                5506 of the Senate amendment)....................    71
            7. Grant Treasury regulatory authority to address 
                foreign tax credit transactions involving 
                inappropriate separation of foreign taxes from 
                related foreign income (sec. 5507 of the Senate 
                amendment).......................................    72
            8. Whistleblower reforms (sec. 5508 of the Senate 
                amendment).......................................    73
            9. Denial of deduction for certain fines, penalties, 
                and other amounts (sec. 5509 of the Senate 
                amendment).......................................    74
            10. Freeze of interest suspension rules with respect 
                to listed transactions (sec. 5510 of the Senate 
                amendment).......................................    77
            11. Repeal loss deferral exception for qualified 
                transportation property (sec. 5511 of the Senate 
                amendment).......................................    78
            12. Impose mark to market tax on individuals who 
                expatriate (sec. 5512 of Senate amendment).......    78
            13. Disallowance of deduction for punitive damages 
                (sec. 5513 of the Senate amendment)..............    87
            14. Application of earnings stripping rules to 
                partners which are corporations (sec. 5514 of the 
                Senate amendment)................................    88
            15. Prohibition on deferral of certain stock option 
                and restricted stock gains (sec. 5515 of the 
                Senate amendment)................................    89
            16. Limitation on employer deduction for certain 
                entertainment expenses (sec. 5516 of the Senate 
                amendment).......................................    90
            17. Increase in penalty for bad checks and money 
                orders (sec. 5517 of the Senate amendment).......    92
            18. Elimination of double deduction of mining 
                exploration and development costs under the 
                minimum tax (sec. 5518 of the Senate amendment)..    93
            19. Clarification of the economic substance doctrine 
                (sec. 5521 of the Senate amendment)..............    95
            20. Penalty for understatements attributable to 
                transactions lacking economic substance, etc. 
                (sec. 5522 of the Senate amendment)..............   101
            21. Denial of deduction for interest on underpayments 
                attributable to noneconomic substance 
                transactions (sec. 5523 of the Senate amendment).   108
            22. Waiver of user fee for installment agreements 
                using automated withdrawals (sec. 5531 of the 
                Senate amendment)................................   108
            23. Termination of installment agreements (sec. 5532 
                of the Senate amendment).........................   109
            24. Office of Chief Counsel review of offers-in-
                compromise (sec. 5533 of the Senate amendment)...   110
            25. Partial payments required with submissions of 
                offers-in-compromise (sec. 5534 of the Senate 
                amendment).......................................   111
            26. Joint task force on offers-in-compromise (sec. 
                5535 of the Senate amendment)....................   112
        O. Additional Revenue Provisions Relating to the Highway 
            Trust Fund...........................................   114
            1. Suspension of transfers from Highway Trust Fund 
                for certain repayments and credits (sec. 5601 of 
                the Senate amendment)............................   114
            2. Dedicate gas guzzler tax to the Highway Trust Fund 
                (sec. 5602 of the Senate amendment)..............   114
            3. Treatment of kerosene for use in aviation (sec. 
                5611 of the Senate amendment and secs. 4041, 
                4081, 4082, 6427, 9502, and 9503 of the Code)....   115
            4. Repeal of ultimate vendor refund claims with 
                respect to farming (sec. 5612 of the Senate 
                amendment and sec. 6427(l) of the Code)..........   118
            5. Refunds of excise taxes on exempt sales of taxable 
                fuel by credit card (sec. 5613 of the Senate 
                amendment and secs. 6206, 6416, 6427, and 6675 of 
                the Code)........................................   120
            6. Recertification of exempt status (sec. 5614 of the 
                Senate amendment)................................   123
            7. Reregistration in event of change in ownership 
                (sec. 5615 of the Senate amendment and secs. 
                4101, 6719, 7232, and 7272 of the Code)..........   125
            8. Reconciliation of on-loaded cargo to entered cargo 
                (sec. 5616 of the Senate amendment and sec. 343 
                of the Trade Act of 2002)........................   127
            9. Registration of operators of deep-draft vessels 
                (sec. 5617 of Senate amendment and secs. 4081 and 
                4101 of the Code)................................   128
            10. Gasoline blend stocks and kerosene (sec. 5618 of 
                the Senate amendment and sec. 4083 of the Code)..   129
            11. Nonapplication of export exemption to delivery of 
                fuel to motor vehicles removed from United States 
                (sec. 5619 of the Senate amendment)..............   134
            12. Impose assessable penalty on dealers of 
                adulterated fuel (sec. 5620 of the Senate 
                amendment and new sec. 6720A of the Code)........   136
IV. Highway-Related Technical Corrections...........................138
        A. Fuels-Related Technical Corrections to American Jobs 
            Creation Act of 2004 (``AJCA'')......................   138
            1. Volumetric ethanol excise tax credit (sec. 
                10003(a) of the House bill, sec. 5401(a) of the 
                Senate amendment, sec. 301 of AJCA, and sec. 6427 
                of the Code).....................................   138
            2. Aviation fuel (sec. 10003(b) of the House bill, 
                sec. 5401(b) of the Senate amendment, sec. 853 of 
                AJCA, and sec. 4081 of the Code).................   138
        B. Fuels-Related Technical Corrections to Transportation 
            Equity Act for the 21st Century (``TEA 21'').........   139
            1. Coastal Wetlands sub-account (sec. 5401(c) of the 
                Senate amendment, sec. 9005 of TEA 21, and sec. 
                9504 of the Code)................................   139
        C. Correction to the Energy Tax Incentives Act of 2005...   139
            1. Erroneous reference to highway reauthorization 
                bill (sec. 38 of the Code).......................   139
 V. Tax Complexity Analysis.........................................140

    TITLE XI--HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION

                     I. Trust Fund Reauthorization

  A. Extension of Highway Trust Fund and Aquatic Resources Trust Fund 
Expenditure Authority and Related Taxes (sec. 10002 of the House bill, 
  secs. 5101 and 5102 of the Senate amendment, and secs. 4041, 4051, 
 4071, 4081, 4221, 4481, 4482, 4483, 6412, 9503, and 9504 of the Code)

              PRESENT-LAW HIGHWAY TRUST FUND EXCISE TAXES

In general
      Six separate excise taxes are imposed to finance the 
Federal Highway Trust Fund program. Three of these taxes are 
imposed on highway motor fuels. Historically, fuel taxes have 
accounted for 90 percent of Highway Trust Fund receipts. The 
remaining three are a retail sales tax on heavy highway 
vehicles, a manufacturers' excise tax on heavy vehicle tires, 
and an annual use tax on heavy vehicles. The six taxes are 
summarized below. Except for 4.3 cents per gallon of the 
Highway Trust Fund fuels tax rates, and a portion of the tax on 
certain special motor fuels, all of these taxes, with the 
exception of the heavy vehicle use tax, are scheduled to expire 
after September 30, 2005.\1\ The 4.3-cents-per-gallon portion 
of the fuels tax rates is permanent.\2\ The six taxes are 
summarized below.
---------------------------------------------------------------------------
    \1\The heavy vehicle use tax expires after September 30, 2006. Sec. 
4481(f).
    \2\This portion of the tax rates was enacted as a deficit reduction 
measure in 1993. Receipts from it were retained in the General Fund 
until 1997 legislation provided for their transfer to the Highway Trust 
Fund.
---------------------------------------------------------------------------
Highway motor fuels taxes
      The Highway Trust Fund motor fuels tax rates are as 
follows:\3\
---------------------------------------------------------------------------
    \3\These fuels also are subject to an additional 0.1-cent-per-
gallon excise tax to fund the Leaking Underground Storage Tank 
(``LUST'') Trust Fund (secs. 4041(d) and 4081(a)(2)(B)).
---------------------------------------------------------------------------
            Gasoline, 18.3 cents per gallon;
            Diesel fuel (including transmix) and kerosene, 24.3 
        cents per gallon;
            Special motor fuels, 18.3 cents per gallon, 
        generally.\4\
---------------------------------------------------------------------------
    \4\The statutory rate for certain special motor fuels is determined 
on an energy equivalent basis, as follows:
    Liquefied petroleum gas (propane), 13.6 cents per gallon (3.2 cents 
after September 30, 2005).
    Liquefied natural gas, 11.9 cents per gallon (2.8 cents after 
September 30, 2005).
    Methanol derived from natural gas, 9.15 cents per gallon (2.15 
cents after September 30, 2005).
    Compressed natural gas, 48.54 cents per MCF.
    See secs. 4041(a)(2), 4041(a)(3) and 4041(m).
    The compressed natural gas tax rate is equivalent only to 4.3 cents 
per gallon of the rate imposed on gasoline and other special motor 
fuels rather than the full 18.3-cents-per-gallon rate. The tax rate for 
the other special motor fuels is equivalent to the full 18.3-cents-per-
gallon gasoline and special motor fuels tax rate.
---------------------------------------------------------------------------

                               Exemptions

      Present law includes numerous exemptions (including 
partial exemptions) for specified uses of taxable fuels or for 
specified fuels. Because the gasoline and diesel fuel taxes 
generally are imposed before the end use of the fuel is known, 
many exemptions are realized through refunds to end users of 
tax paid by a taxpayer earlier in the distribution chain. 
Exempt uses and fuels include:
             use in State and local government and 
        nonprofit educational organization highway vehicles;
             use in buses engaged in transporting 
        students and employees of schools;
             use in local mass transit buses having a 
        seating capacity of at least 20 adults (not including 
        the driver) when the buses operate under contract with 
        (or are subsidized by) a State or local governmental 
        unit to furnish the transportation; and
             use in intercity buses serving the general 
        public along scheduled routes. (Such use is totally 
        exempt from the gasoline excise tax and is exempt from 
        17 cents per gallon of the diesel fuel tax.)
      In addition, fuels used in off-highway business use or on 
a farm for farming purposes generally are exempt from these 
motor fuels taxes.\5\ The Highway Trust Fund does not receive 
excise taxes imposed on fuel used in off-highway activities. 
Rather, when tax is imposed on off-highway use fuel 
consumption, it is used to finance other Trust Funds (e.g., 
motorboat gasoline and special motor fuel taxes from non-
business off-highway use dedicated to the Aquatic Resources 
Trust Fund) or is retained in the General Fund (e.g., tax on 
diesel fuel used in trains).
---------------------------------------------------------------------------
    \5\Diesel fuel is the same fuel (#2 fuel oil) as that commonly used 
as home heating oil. Fuel oil used as heating oil is not subject to the 
Federal excise tax.
---------------------------------------------------------------------------
Non-fuel Highway Trust Fund excise taxes
      In addition to the highway motor fuels excise tax 
revenues, the Highway Trust Fund receives revenues produced by 
three excise taxes imposed exclusively on heavy highway 
vehicles or tires. These taxes are:
             a 12-percent excise tax imposed on the 
        first retail sale of heavy highway vehicles, tractors, 
        and trailers (generally, trucks having a gross vehicle 
        weight in excess of 33,000 pounds and trailers having 
        such a weight in excess of 26,000 pounds) (sec. 4051);
             an excise tax imposed on highway tires 
        with a rated load capacity exceeding 3,500 pounds, 
        generally at a rate of 9.45 cents per 10 pounds of 
        excess (sec. 4071(a)); and
             an annual use tax imposed on highway 
        vehicles having a taxable gross weight of 55,000 pounds 
        or more (sec. 4481). (The maximum rate for this tax is 
        $550 per year, imposed on vehicles having a taxable 
        gross weight over 75,000 pounds.)

         PRESENT-LAW HIGHWAY TRUST FUND EXPENDITURE PROVISIONS

In general
      Dedication of excise tax revenues to the Highway Trust 
Fund and expenditures from the Highway Trust Fund are governed 
by provisions of the Code.\6\ The Code authorizes expenditures 
(subject to appropriations) from the Fund through July 30, 
2005, for the purposes provided in authorizing legislation, as 
in effect on the date of enactment of the Surface 
Transportation Extension Act of 2005, Part V.
---------------------------------------------------------------------------
    \6\Sec. 9503. The Highway Trust Fund statutory provisions were 
placed in the Internal Revenue Code in 1982.
---------------------------------------------------------------------------
      Under present law, revenues from the highway excise taxes 
generally are dedicated to the Highway Trust Fund. However, 
under section 9503(c)(2), certain transfers are made from the 
Highway Trust Fund into the General Fund, relating to amounts 
paid in respect of gasoline used on farms, amounts paid in 
respect of gasoline used for certain nonhighway purposes or by 
local transit systems, amounts relating to fuels not used for 
taxable purposes, and income tax credits for certain uses of 
fuels.
Highway Trust Fund expenditure purposes
      The Highway Trust Fund has a subaccount for Mass Transit. 
Both the Trust Fund and its sub-account are funding sources for 
specific programs. Neither the Highway Trust Fund nor its Mass 
Transit sub-account receive interest on unexpended balances. 
The Highway Fund's Mass Transit sub-account receives 2.86 cents 
per gallon of highway motor fuels excise taxes.
      Highway Trust Fund expenditure purposes have been revised 
with each authorization Act enacted since establishment of the 
Highway Trust Fund in 1956. In general, expenditures authorized 
under those Acts (as the Acts were in effect on the date of 
enactment of the most recent such authorizing Act) are approved 
by the Code as Highway Trust Fund expenditure purposes.\7\ 
Thus, no Highway Trust Fund monies may be spent for a purpose 
not approved by the tax-writing committees of Congress. The 
Code provides that authority to make expenditures from the 
Highway Trust Fund expires after July 30, 2005. Thus, no 
Highway Trust Fund expenditures may occur after July 30, 2005.
---------------------------------------------------------------------------
    \7\The authorizing Acts which currently are referenced in the 
Highway Trust Fund provisions of the Code are: the Highway Revenue Act 
of 1956; Titles I and II of the Surface Transportation Assistance Act 
of 1982; the Surface Transportation and Uniform Relocation Act of 1987; 
the Intermodal Surface Transportation Efficiency Act of 1991; and the 
Transportation Equity Act for the 21st Century; the Surface 
Transportation Extension Act of 2003; the Surface Transportation 
Extension Act of 2004; the Surface Transportation Extension Act of 2004 
Part II; the Surface Transportation Extension Act of 2004, Part III; 
the Surface Transportation Extension Act of 2004, Part IV; the Surface 
Transportation Extension Act of 2004, Part V; the Surface 
Transportation Extension Act of 2005; the Surface Transportation 
Extension Act of 2005, Part II; the Surface Transportation Extension 
Act of 2005, Part III; the Surface Transportation Extension Act of 
2005, Part IV; and the Surface Transportation Extension Act of 2005, 
Part V.
---------------------------------------------------------------------------
Anti-deficit provisions (the ``Harry Byrd rule'')
      Highway projects can take multiple years to complete. As 
a result, the Highway Trust Fund carries positive unexpended 
balances, a large portion of which are reserved to cover 
existing obligations.\8\ Highway Trust Fund spending is limited 
by anti-deficit provisions internal to the Highway Trust Fund, 
the so-called ``Harry Byrd rule.'' Generally, the Harry Byrd 
rule prevents the further obligation of Federal highway funds 
if the current and expected balances of the Highway Trust Fund 
fall below a certain level. The rule requires the Treasury 
Department to determine, on a quarterly basis, the amount (if 
any) by which unfunded highway authorizations exceed projected 
net Highway Trust Fund tax receipts for the 24-month period 
beginning at the close of each fiscal year.\9\ Similar rules 
apply to unfunded Mass Transit Account authorizations. If 
unfunded authorizations exceed projected 24-month receipts, 
apportionments to the States for specified programs funded by 
the relevant Trust Fund Account are to be reduced 
proportionately. Because of the Harry Byrd rule, taxes 
dedicated to the Highway Trust Fund typically are scheduled to 
expire at least 24 months after current authorizing Acts.
---------------------------------------------------------------------------
    \8\Congressional Research Service, RL 32226, Highway and Transit 
Program Reauthorization Legislation in the 2nd Session, 108th Congress 
(December 15, 2004) at CRS-12.
    \9\Sec. 9503(d).
---------------------------------------------------------------------------
      The Surface Transportation Extension Act of 2003, created 
a temporary rule (through February 29, 2004) for purposes of 
the anti-deficit provisions of the Highway Trust Fund. For 
purposes of determining 24 months of projected revenues for the 
anti-deficit provisions, the Secretary of the Treasury is 
instructed to treat each expiring provision relating to 
appropriations and transfers to the Highway Trust Fund to have 
been extended through the end of the 24-month period and to 
assume that the rate of tax during such 24-month period remains 
at the same rate in effect on the date of enactment of the 
provision. The temporary rule has been continuously extended 
since February 29, 2004. The last extension, enacted as part of 
the Surface Transportation Extension Act of 2005, Part V, 
extended the rule through July 30, 2005.
Limitations on transfers to the Highway Trust Fund
      The Code also contains a special enforcement provision to 
prevent expenditure of Highway Trust Fund monies for purposes 
not authorized in section 9503.\10\ Should such unapproved 
expenditures occur, no further excise tax receipts will be 
transferred to the Highway Trust Fund. Rather, the taxes will 
continue to be imposed with receipts being retained in the 
General Fund. This enforcement provision provides specifically 
that it applies not only to unauthorized expenditures under the 
current Code provisions, but also to expenditures pursuant to 
future legislation that does not amend section 9503's 
expenditure authorization provisions or otherwise authorize the 
expenditure as part of a revenue Act.
---------------------------------------------------------------------------
    \10\Sec. 9503(b)(6).
---------------------------------------------------------------------------
Interrelationship of the Highway Trust Fund and the Aquatic Resources 
        Trust Fund
      The Aquatic Resources Trust Fund is funded by a portion 
of the receipts from the excise taxes imposed on motorboat 
gasoline and special motor fuels and on gasoline used as a fuel 
in the nonbusiness use of small-engine outdoor power equipment. 
A portion of these taxes are transferred into the Highway Trust 
Fund and then retransferred into the Aquatic Resources Trust 
Fund. As a result, transfers to the Aquatic Resources Trust 
Fund are governed in part by Highway Trust Fund provisions.\11\
---------------------------------------------------------------------------
    \11\Secs. 9503(c)(4) and 9503(c)(5).
---------------------------------------------------------------------------
      A total tax rate of 18.4 cents per gallon is imposed on 
gasoline and special motor fuels used in motorboats and on 
gasoline used as a fuel in the nonbusiness use of small-engine 
outdoor power equipment. Of this rate, 0.1 cent per gallon is 
dedicated to the Leaking Underground Storage Tank Trust Fund. 
Of the remaining 18.3 cents per gallon, 4.8 cents per gallon 
are retained in the General Fund. The balance of 13.5 cents per 
gallon is transferred to the Highway Trust Fund and then 
retransferred to the Aquatic Resources Trust Fund and the Land 
and Water Conservation Fund, as follows.
      The Aquatic Resources Trust Fund is comprised of two 
accounts, the Boat Safety Account and the Sport Fish 
Restoration Account. Motorboat fuel taxes, not exceeding $70 
million per year, are transferred to the Boat Safety Account. 
In addition, these transfers are subject to an overall annual 
limit equal to an amount that will not cause the Boat Safety 
Account to have an unobligated balance in excess of $70 
million. To the extent there are excess motorboat fuel taxes, 
the next $1 million per year of motorboat fuel taxes is 
transferred from the Highway Trust Fund to the Land and Water 
Conservation Fund provided for in Title I of the Land and Water 
Conservation Fund Act of 1965. The balance of the motorboat 
fuel taxes in the Highway Trust Fund is transferred to the 
Sport Fish Restoration Account.
      The Sport Fish Restoration Account also receives 13.5 
cents per gallon of the small-engine fuel taxes from the 
Highway Trust Fund. This Account is also funded with receipts 
from an ad valorem manufacturers' excise tax on sport fishing 
equipment.
      The retention in the General Fund of 4.8 cents per gallon 
of taxes on fuel used in motorboats and in the nonbusiness use 
of small-engine outdoor power equipment expires with respect to 
taxes imposed after September 30, 2005.
      The expenditure authority for the Aquatic Resources Trust 
Fund expires after July 30, 2005.

                               HOUSE BILL

      The expenditure authority for the Highway Trust Fund and 
Aquatic Resources Trust Fund is extended through September 30, 
2009. The Code provisions governing the purposes for which 
monies in the Highway Trust Fund may be spent are modified to 
include the reauthorization bill.
      The provision also extends the motor fuel taxes and all 
three non-fuel excise taxes at their current rates through 
September 30, 2011.
      The provision does not extend the retention in the 
General Fund of 4.8 cents per gallon of taxes on fuel used in 
motorboats and in the nonbusiness use of small-engine outdoor 
power equipment.
      Effective date.--The House bill is effective on the date 
of enactment.

                            SENATE AMENDMENT

      The Senate amendment generally follows the House bill, 
but extends the retention in the General Fund of 4.8 cents per 
gallon of taxes on fuel used in motorboats and in the 
nonbusiness use of small-engine outdoor power equipment through 
September 30, 2011.
      The Senate amendment also authorizes expenditures from 
the Highway Trust Fund for highway use tax evasion projects. 
Specifically, for fiscal years 2006 through 2009, the Internal 
Revenue Service is to receive $120 million for the enforcement 
of fuel tax compliance, including the precertification of tax-
exempt users, and $80 million for the excise fuel information 
reporting system, of which $40 million is to be allocated to 
the excise summary terminal activity reporting system. In 
addition, for each of the fiscal years 2006 through 2009, $50 
million is authorized for the Federal Highway Administration to 
allocate $1 million to each State to combat fuel tax evasion on 
the State level.
      The Senate amendment also changes the Harry Byrd rule 
from a 24-month to a 48-month receipt rule. Under the Senate 
amendment, the Harry Byrd rule is not triggered unless unfunded 
highway authorizations exceed projected net Highway Trust Fund 
tax receipts for the 48-month period beginning at the close of 
each fiscal year. For purposes of the 48-month rule, taxes are 
assumed extended beyond their expiration date.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the House bill with the 
following modifications. The expenditure authority for the 
Highway Trust Fund expires after September 29, 2009 (after 
September 30, 2009, in the case of expenditures for 
administrative purposes, and expenditures from the Mass Transit 
Account).
      The conference agreement changes the Harry Byrd rule from 
a 24-month to a 48-month receipt rule. Under the conference 
agreement, the Harry Byrd rule is not triggered unless unfunded 
highway authorizations exceed projected net Highway Trust Fund 
tax receipts for the 48-month period beginning at the close of 
each fiscal year. For purposes of the 48-month rule, taxes are 
assumed extended beyond their expiration date.
      The conference agreement does not extend the General Fund 
retention of taxes on fuel used in motorboats and in the 
nonbusiness use of small-engine outdoor power equipment. The 
conference agreement addresses authorization of expenditures 
for fuel tax compliance elsewhere in the conference agreement 
and does not amend the Code for this purpose.

                II. Excise Tax Reform and Simplification

                        A. Highway Excise Taxes

 1. Modify gas guzzler tax (sec. 5201 of the Senate amendment and sec. 
                           4064 of the Code)

                              PRESENT LAW

      Under present law, the Code imposes a tax (``the gas 
guzzler tax'') on automobiles that are manufactured primarily 
for use on public streets, roads, and highways and that are 
rated at 6,000 pounds unloaded gross vehicle weight or 
less.\12\ The tax applies to limousines without regard to the 
weight requirement. The tax is imposed on the sale by the 
manufacturer of each automobile of a model type with a fuel 
economy of 22.5 miles per gallon or less. The tax range begins 
at $1,000 and increases to $7,700 for models with a fuel 
economy less than 12.5 miles per gallon.
---------------------------------------------------------------------------
    \12\Sec. 4064.
---------------------------------------------------------------------------
      Emergency vehicles and non-passenger automobiles are 
exempt from the tax. The tax also does not apply to non-
passenger automobiles. The Secretary of Transportation 
determines which vehicles are ``non-passenger'' automobiles, 
thereby exempting these vehicles from the gas guzzler tax based 
on regulations in effect on the date of enactment of the gas 
guzzler tax.\13\ Hence, vehicles defined in Title 49 C.F.R. 
sec. 523.5 (relating to light trucks) are exempt. These 
vehicles include those designed to transport property on an 
open bed (e.g., pick-up trucks) or provide greater cargo-
carrying than passenger carrying volume including the expanded 
cargo-carrying space created through the removal of readily 
detachable seats (e.g., pick-up trucks, vans, and most 
minivans, sports utility vehicles and station wagons). 
Additional vehicles that meet the ``non-passenger'' 
requirements are those with at least four of the following 
characteristics: (1) An angle of approach of not less than 28 
degrees; (2) A breakover angle of not less than 14 degrees; (3) 
A departure angle of not less than 20 degrees; (4) A running 
clearance of not less than 20 centimeters; and (5) front and 
rear axle clearances of not less than 18 centimeters each. 
These vehicles would include many sports utility vehicles.
---------------------------------------------------------------------------
    \13\Sec. 4064(b)(1)(B).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment repeals the tax as it applies to 
limousines rated at greater than 6,000 pounds unloaded gross 
vehicle weight.
      Effective date.--The Senate amendment is effective on 
October 1, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
provision.
2. Exclusion for tractors weighing 19,500 pounds or less from excise 
        tax on heavy trucks and trailers (sec. 5202 of the Senate 
        amendment and sec. 4051 of the Code)

                              PRESENT LAW

      A 12-percent excise tax is imposed on the first retail 
sale of automobile truck chassis and bodies, truck trailer and 
semitrailer chassis and bodies, and tractors of the kind 
chiefly used for highway transportation in combination with a 
trailer or semitrailer.\14\ The tax does not apply to 
automobile truck chassis and bodies suitable for use with a 
vehicle which has a gross vehicle weight of 33,000 pounds or 
less.\15\ The tax also does not apply to truck trailer and 
semitrailer chassis and bodies suitable for use with a trailer 
or semitrailer which has a gross vehicle weight of 26,000 
pounds or less.\16\ In general, tractors are subject to tax 
regardless of their gross vehicle weight.
---------------------------------------------------------------------------
    \14\Sec. 4051(a)(1).
    \15\Sec. 4051(a)(2).
    \16\Sec. 4051(a)(3).
---------------------------------------------------------------------------
      Temporary Treasury regulations provide that ``tractor'' 
means a highway vehicle which is primarily designed to tow a 
vehicle, such as a trailer or semitrailer, but which does not 
carry cargo on the same chassis as the engine. The regulations 
presume that a vehicle equipped with air brakes and/or towing 
package is primarily designed as a tractor.\17\ The regulations 
further require an incomplete chassis cab to be treated as a 
tractor if it is equipped with any of the safety devices listed 
in the regulations, and require that it be treated as a truck 
if it is not equipped with any of the listed safety devices and 
the purchaser certifies in writing that the vehicle will not be 
equipped for use as a tractor.\18\
---------------------------------------------------------------------------
    \17\Temp. Treas. Reg. sec. 145.4051-1(e)(1)(i).
    \18\Temp. Treas. Reg. sec. 145.4051-1(e)(1)(ii).
---------------------------------------------------------------------------
      In Freightliner of Grand Rapids, Inc. v. U.S., the 
district court held that certain vehicles primarily designed to 
tow large RV trailers but which had some cargo carrying 
capacity on their chassis are properly characterized as 
tractors.\19\ The court also held that incomplete chassis cabs 
that do not include any of the listed safety devices are to be 
treated as tractors unless the purchaser certifies in writing 
that it will not equip the vehicles for use as tractors. Under 
the holding of this case, these types of vehicles are subject 
to tax regardless of their gross vehicle weight.
---------------------------------------------------------------------------
    \19\351 F.Supp.2d 718 (W.D. Mich. 2004).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment excludes from tax tractors with a 
gross vehicle weight of 19,500 pounds or less.
      Effective date.--The Senate amendment is effective for 
sales after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
except that it also requires that in order to be exempt the 
gross combined weight (as determined by the Secretary) of the 
tractor if combined with a towed vehicle (such as trailer or 
semi-trailer) would not exceed 33,000 pounds. No inference is 
intended from this provision regarding the proper 
classification of vehicles as tractors or trucks.
3. Exemption for bulk beds from excise tax on retail sale of heavy 
        trucks and trailers (sec. 5203 of the Senate amendment)

                              PRESENT LAW

      The Code imposes a 12-percent excise tax on the first 
retail sale of heavy trucks and trailers (chassis and 
bodies).\20\ Under present law, the tax on the first retail 
sale of automobile truck bodies does not apply to any body 
primarily designed: (1) To process or prepare seed, feed, or 
fertilizer for use on farms; (2) To haul feed, seed, or 
fertilizer to and on farms; (3) To spread feed, seed, or 
fertilizer on farms; (4) To load or unload feed, seed, or 
fertilizer on farms; or (5) for any combination of the 
foregoing.\21\
---------------------------------------------------------------------------
    \20\Sec. 4051(a).
    \21\Sec. 4053(2).
---------------------------------------------------------------------------
      The IRS has issued various rulings in this area. In 
Revenue Ruling 69-579, the IRS found that a truck body used 
primarily for hauling animal and poultry feed to and unloading 
it on farms qualified for exemption because the built-in 
equipment was elaborate and expensive. Thus, the IRS concluded 
that the nature of the unloading systems made it impractical to 
purchase the bodies for use other than in hauling feed, seed, 
or fertilizer to and unloading it on farms.
      In 1975, the IRS ruled as not exempt a dump truck 
designed for and used primarily in hauling grain and sugar 
beets from the field to points on or off the farm but which may 
also be used to haul feed or fertilizer from a distribution 
point over the highway to the farm. The ruling concluded that 
bodies that are used for the general hauling of feed, seed, or 
fertilizer over the highway are subject to the tax unless they 
have specific features that indicate they are primarily 
designed to haul feed, seed, or fertilizer to and on farms. In 
this case, although feed and fertilizer were among the 
commodities that the dump truck could be used for, it did not 
have specific features to indicate that it was primarily 
designed to haul feed, seed, or fertilizer to and on farms.\22\
---------------------------------------------------------------------------
    \22\Rev. Rul. 75-462.
---------------------------------------------------------------------------
      In 1990, the IRS issued a technical advice memorandum 
(``the 1990 TAM'') that concluded that a type of truck bought 
by farmers to haul seed potatoes, sugar beets, grain, and other 
farm products qualified for exemption.\23\ Each model had a 
full-length, powered conveyor belt that was designed to support 
and unload the cargo; a powered rear discharge door to control 
the discharge rate of the cargo; and a standard universal motor 
mount to which an electric drive could be mounted. In that 
ruling, the IRS noted the special unloading equipment was 
elaborate and expensive, added substantially to the cost and 
weight of each body, and limited its load-carrying 
capabilities.
---------------------------------------------------------------------------
    \23\Tech. Adv. Mem. 9126001, 1991 WL 778984 (1991).
---------------------------------------------------------------------------
      In 1999, the IRS revoked the 1990 TAM prospectively, 
noting that the exemption was not intended to cover truck 
bodies designed for general use, even if capable of hauling 
feed, seed, or fertilizer to and on farms.\24\ The IRS noted 
that the sales literature indicated that the body was designed 
to be versatile for hauling potatoes, beets, and small grains. 
The IRS also observed that unlike the bodies described in Rev. 
Rul. 69-579, which would not be purchased for use other than in 
hauling feed, seed, or fertilizer, the bodies at issue are 
designed for general hauling of farm cargo. Further, the IRS 
found that the presence of a conveyor belt was equally useful 
for unloading a crop at market as it is for unloading feed, 
etc. on a farm. Thus, the IRS concluded that the truck body was 
not primarily designed for an exempt purpose.
---------------------------------------------------------------------------
    \24\Tech. Adv. Mem. 199904038, 1999 WL 36828 (1999).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment exempts bulk beds used for 
transporting farm crops to and on farms from the excise tax on 
the retail sale of heavy trucks and trailers if sold to a 
person who certifies to the seller that such person is actively 
engaged in the trade or business of farming and the primary use 
of the bulk bed is to haul to and on farms farm crops grown in 
connection with such trade or business. The Senate amendment 
provides for the recapture of the tax from the purchaser upon 
resale of within two years of the first retail sale, or if such 
purchaser makes substantial nonexempt use of the article.
      Effective date.--The Senate amendment is effective for 
sales after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
4. Volumetric excise tax credit for alternative fuels (sec. 5204 of the 
        Senate amendment and secs. 4041, 4101, 6426, and 6427 of the 
        Code)

                              PRESENT LAW

      Under section 4081 of the Code, an excise tax is imposed 
upon (1) the removal of any taxable fuel from a refinery or 
terminal, (2) the entry of any taxable fuel into the United 
States, or (3) the sale of any taxable fuel to any person who 
is not registered with the IRS to receive untaxed fuel, unless 
there was a prior taxable removal or entry.\25\ The tax does 
not apply to any removal or entry of taxable fuel transferred 
in bulk by pipeline or vessel to a terminal or refinery if the 
person removing or entering the taxable fuel, the operator of 
such pipeline or vessel, and the operator of such terminal or 
refinery are registered with the Secretary.\26\ Section 4081 
also imposes an excise tax on taxable fuel removed or sold by 
the blender of the fuels.\27\ However, the blender is entitled 
to a credit on any tax previous paid if that person establishes 
the amount of such tax.\28\ A ``taxable fuel'' is gasoline, 
diesel fuel (including any liquid, other than gasoline, which 
is suitable for use as a fuel in a diesel-powered highway 
vehicle or train), and kerosene.\29\
---------------------------------------------------------------------------
    \25\Sec. 4081(a)(1).
    \26\Sec. 4081(a)(1)(B).
    \27\Sec. 4081(b)(1). Blended taxable fuel is a taxable fuel that is 
produced outside the bulk transfer/terminal system by mixing taxpayer 
fuel with respect to which tax has been imposed under section 
4041(a)(1) or 4081(a) (other than taxable fuel for which a credit or 
payment has been allowed); and any other liquid on which tax has not 
been imposed under section 4081. Treas. Reg. sec. 48.4081-1(c)(i).
    \28\Sec. 4081(b)(2).
    \29\Sec. 4083(a).
---------------------------------------------------------------------------
      Diesel fuel and kerosene generally are taxed at 24.3 
cents per gallon excise (aviation-grade kerosene at 21.8 cents 
per gallon). Gasoline is taxed at 18.3 cents per gallon and 
aviation gasoline is taxed at 19.3 cents per gallon.
      The Code imposes a backup retail tax for diesel fuel and 
kerosene not taxed under section 4081, and for special motor 
fuels.\30\ Under section 4041, tax is imposed on special motor 
fuels (any liquid other than gas oil, fuel oil or any product 
taxable under section 4081) when there is a taxable sale by any 
person to an owner, lessee or other operator of a motor vehicle 
or motorboat, for use as fuel in the motor vehicle or motorboat 
or used by any person as a fuel in a motor vehicle or motorboat 
unless there was a prior taxable sale.\31\
---------------------------------------------------------------------------
    \30\Sec. 4041.
    \31\Sec. 4041(a)(2).
---------------------------------------------------------------------------
      Most special motor fuels are subject to tax at 18.3 cents 
per gallon, however, certain special motor fuels and compressed 
natural gas are determined on an energy equivalent basis, as 
follows:
      Liquefied petroleum gas (propane), 13.6 cents per gallon.
      Liquefied natural gas, 11.9 cents per gallon.
      Methanol derived from petroleum or natural gas, 9.15 
cents per gallon.
      Compressed natural gas, 48.54 cents per MCF.
      Liquid hydrogen is a special motor fuel for purposes of 
the tax on special motor fuels and is subject to a tax of 18.3 
cents per gallon.\32\ Compressed hydrogen gas used or sold as a 
fuel is not subject to tax.
---------------------------------------------------------------------------
    \32\An additional 0.1 cent per gallon is imposed by section 4041(d) 
for the Leaking Underground Storage Tank Trust Fund.
---------------------------------------------------------------------------
      Prior to the American Jobs Creation Act of 2004, gasohol 
and gasoline to be blended into gasohol was taxed at a reduced 
rate based on the amount of ethanol contained in the mixture 
(e.g., 10 percent, 7.7 percent or 5.5 percent alcohol in the 
mixture). The Act eliminated reduced rates of excise tax for 
most alcohol-blended fuels. In place of the reduced rates, the 
Act amended the Code to create two new excise tax credits: the 
alcohol fuel mixture credit and the biodiesel mixture 
credit.\33\ The sum of these credits may be taken against the 
tax imposed on taxable fuels (by section 4081). A person may 
also file a claim for payment equal to the amount of these 
credits for biodiesel or alcohol used to produce an eligible 
mixture.\34\ The credits and payments are paid out of the 
General Fund. If the alcohol is ethanol with a proof of 190 or 
greater, the credit or payment amount is 51 cents per gallon. 
For agri-biodiesel, the credit or payment amount is $1.00 per 
gallon; for biodiesel other than agri-biodiesel, the credit or 
payment amount is 50 cents per gallon. Under the Code's 
coordination rules, a claim may be taken only once with respect 
to any particular gallon of alcohol or biodiesel.
---------------------------------------------------------------------------
    \33\Sec. 6426. The Act also created an income tax credit for 
biodiesel and biodiesel mixtures. Sec. 40A.
    \34\Sec. 6427(e).
---------------------------------------------------------------------------
      No excise tax credit is available for the blending or 
sale of special motor fuels.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, P Series fuels (as defined by 
the Secretary of Energy under 42 U.S.C. sec. 13211(2)) are 
taxed at 18.3 cents per gallon under section 4081. Compressed 
natural gas and hydrogen are taxed at 18.3 cents per energy 
equivalent of a gallon of gasoline, and liquefied natural gas, 
any liquid fuel (other than methanol or ethanol) derived from 
coal and liquid hydrocarbons derived from biomass are taxed at 
24.3 cents per gallon under section 4081. Collectively, these 
fuels are referred to as ``alternative fuels.''
      In addition, the Senate amendment creates two new excise 
tax credits, the alternative fuel credit, and the alternative 
fuel mixture credit. The credits are allowed against section 
4081 liability. The alternative fuel credit is 50 cents per 
gallon of alternative fuel or gasoline gallon equivalents of 
nonliquid alternative fuel sold by the taxpayer for use as a 
motor fuel in a highway vehicle. The alternative fuel mixture 
credit is 50 cents per gallon of alternative fuel used in 
producing an alternative fuel mixture for sale or use in a 
trade or business of the taxpayer. The mixture must be sold by 
the taxpayer for use as a fuel in a highway vehicle or used by 
the taxpayer as a fuel in a highway vehicle. Liquid fuel 
derived from coal would only qualify for the credits if derived 
from the Fischer-Tropsch process. The credits generally expire 
after September 30, 2009. The proposal also allows persons to 
file a claim for payment equal to the amount of the alternative 
fuel credit and alternative fuel mixture credits. These payment 
provisions generally also expire after September 30, 2009. Both 
credits and payments are made out of the General Fund. Under 
coordination rules, a claim for payment or credit may only be 
taken once with respect to any particular gallon or gasoline-
gallon equivalent of alternative fuel.
      Effective date.--The Senate amendment is effective for 
any sale, use or removal for any period after September 30, 
2006.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with the following modifications.
      Under the conference agreement, liquefied petroleum gas 
and P Series fuels (as defined by the Secretary of Energy under 
42 U.S.C. sec. 13211(2)) are taxed at 18.3 cents per gallon 
under section 4041. Compressed natural gas is taxed at 18.3 
cents per energy equivalent of a gallon of gasoline. Liquefied 
natural gas, any liquid fuel derived from coal (other than 
ethanol or methanol) and liquid hydrocarbons derived from 
biomass are taxed at 24.3 cents per gallon under section 4041. 
The conference agreement does not change the tax treatment of 
hydrogen, liquefied hydrogen remains subject to the tax imposed 
by section 4041.
      In addition, the conference agreement creates two new 
excise tax credits, the alternative fuel credit, and the 
alternative fuel mixture credit. For this purpose, the term 
``alternative fuel'' means liquefied petroleum gas, P Series 
fuels (as defined by the Secretary of Energy under 42 U.S.C. 
sec. 13211(2)), compressed or liquefied natural gas, liquefied 
hydrogen, liquid fuel derived from coal through the Fisher-
Tropsch process, and liquid hydrocarbons derived from biomass. 
Such term does not include ethanol, methanol, or biodiesel.
      The alternative fuel credit is allowed against section 
4041 liability and the alternative fuel mixture credit is 
allowed against section 4081 liability. Neither credit is 
allowed unless the taxpayer is registered with the Secretary. 
The alternative fuel credit is 50 cents per gallon of 
alternative fuel or gasoline gallon equivalents\35\ of 
nonliquid alternative fuel sold by the taxpayer for use as a 
motor fuel in a motor vehicle or motorboat, or so used by the 
taxpayer.
---------------------------------------------------------------------------
    \35\``Gasoline gallon equivalent'' means, with respect to any 
nonliquid alternative fuel, the amount of such fuel having a Btu 
content of 124,800 (higher heating value).
---------------------------------------------------------------------------
      The alternative fuel mixture credit is 50 cents per 
gallon of alternative fuel used in producing an alternative 
fuel mixture for sale or use in a trade or business of the 
taxpayer. The mixture must be sold by the taxpayer producing 
such mixture to any person for use as a fuel or used by the 
taxpayer for use as a fuel.\36\ The credits generally expire 
after September 30, 2009. The provision also allows persons to 
file a claim for payment equal to the amount of the alternative 
fuel credit and alternative fuel mixture credits. These payment 
provisions generally also expire after September 30, 2009. With 
respect to liquefied hydrogen, the credit and payment 
provisions expire after September 30, 2014. Both credits and 
payments are made out of the General Fund. Under coordination 
rules, a claim for payment or credit may only be taken once 
with respect to any particular gallon or gasoline-gallon 
equivalent of alternative fuel.
---------------------------------------------------------------------------
    \36\For example, the taxpayer produces fish oil in its trade or 
business. The taxpayer uses this fish oil to make a blend of 50 percent 
fish oil and 50 percent diesel fuel to run in a generator that is part 
of the taxpayer's trade or business. This use of the fish oil-diesel 
blend made by the taxpayer qualifies as use of an alternative fuel 
mixture for purposes of the requirement that the fuel be used in the 
blender's trade or business.
---------------------------------------------------------------------------
      Effective date.--The provision is effective for any sale 
or use for any period after September 30, 2006.

                        B. Aquatic Excise Taxes

1. Eliminate Aquatic Resources Trust Fund and transform Sport Fish 
        Restoration Account (sec. 5211 of the Senate amendment and 
        secs. 9503 and 9504 of the Code)

                              PRESENT LAW

      A total tax rate of 18.4 cents per gallon is imposed on 
gasoline and special motor fuels used in motorboats, and on 
gasoline used as a fuel in the nonbusiness use of small-engine 
outdoor power equipment.\37\ Of this rate, 0.1 cent per gallon 
is dedicated to the Leaking Underground Storage Tank Trust 
Fund. Of the remaining 18.3 cents per gallon, tax collected in 
excess of 13.5 cents per gallon (i.e., 4.8 cents per gallon) is 
retained in the General Fund of the Treasury.\38\ The balance 
is transferred to the Highway Trust Fund, and retransferred 
(except with respect to amounts transferred to the fund for 
land and water conservation, as described below) to the Aquatic 
Resources Trust Fund.\39\ The taxes on gasoline and special 
motor fuels used in motorboats and the taxes on gasoline used 
as a fuel in the nonbusiness use of small-engine outdoor power 
equipment are collected under the same rules as apply to the 
Highway Trust Fund collections generally.
---------------------------------------------------------------------------
    \37\Sec. 4081(a)(2).
    \38\The retention in the General Fund of the 4.8 cents a gallon of 
motorboat fuel taxes and taxes on gasoline used as a fuel in the 
nonbusiness use of small-engine outdoor power equipment expires after 
September 30, 2005.
    \39\Sec. 9503(c)(4). Between October 1, 2001 and September 30, 
2003, the amount transferred to the Highway Trust Fund was 13 cents per 
gallon. Prior to October 1, 2001, the amount transferred was 11.5 cents 
per gallon. Sec. 9503(b)(4)(D). The transfers from the Highway Trust 
Fund to the Aquatic Resources Trust Fund of amounts of taxes received 
on gasoline used as a fuel in the nonbusiness use of small-engine 
outdoor power equipment expires after September 30, 2005. Sec. 
9503(c)(5).
---------------------------------------------------------------------------
      The Aquatic Resources Trust Fund is comprised of two 
accounts.\40\ First, the Boat Safety Account is funded by a 
portion of the receipts from the excise tax imposed on 
motorboat gasoline and special motor fuels. Transfers to the 
Boat Safety Account are limited to amounts not exceeding $70 
million per year. In addition, these transfers are subject to 
an overall annual limit equal to an amount that will not cause 
the Boat Safety Account to have an unobligated balance in 
excess of $70 million.\41\
---------------------------------------------------------------------------
    \40\Sec. 9504(a).
    \41\Sec. 9503(c)(4)(A). Funding of the Boat Safety Account is 
scheduled to expire after September 30, 2005.
---------------------------------------------------------------------------
      Second, the Sport Fish Restoration Account receives the 
balance of the motorboat gasoline and special motor fuels 
receipts that are transferred to the Aquatic Resources Trust 
Fund.\42\ The Sport Fish Restoration Account is also funded 
with receipts from an excise tax on sport fishing equipment 
sold by the manufacturer, producer or importer. The excise tax 
rate on sport fishing equipment is 10 percent of the sales 
price; the rate is reduced to 3 percent for electric outboard 
motors and fishing tackle boxes.\43\ Examples of the items of 
sport fishing equipment subject to the 10-percent rate include 
fishing rods and poles, fishing reels, fly fishing lines and 
certain other fishing lines, fishing spears, spear guns, spear 
tips, items of terminal tackle, containers designed to hold 
fish, fishing vests, landing nets, and portable bait 
containers.\44\ In addition, import duties on certain fishing 
tackle, yachts and pleasure craft are transferred into the 
Sport Fish Restoration Account.
---------------------------------------------------------------------------
    \42\After funding of the Boat Safety Account, remaining motorboat 
fuel taxes, not exceeding $1,000,000 during any fiscal year, are 
transferred from the Highway Trust Fund into the land and water 
conservation fund provided in Title I of the Land and Water 
Conservation Fund Act of 1965. Sec. 9503(c)(4)(B). After the transfer 
to the land and water conservation fund, motorboat fuel taxes remaining 
in the Highway Trust Fund are transferred to the Sport Fish Restoration 
Account. Sec. 9503(c)(4)(C).
    \43\Sec. 4161(a)(2) and 4161(a)(c)(3).
    \44\Items of ``sport fishing equipment'' are enumerated in section 
4162(a).
---------------------------------------------------------------------------
      The amounts of taxes on gasoline used as a fuel in the 
nonbusiness use of small-engine outdoor power equipment that 
are transferred to the Highway Trust Fund and retransferred to 
the Aquatic Resources Trust Fund are directed to a separate 
sub-account of the Sport Fish Restoration Account, the Coastal 
Wetlands Sub-Account.
      Expenditures from the Boat Safety Account are subject to 
annual appropriations. Amounts transferred, paid, or credited 
to the Sport Fish Restoration Account (including the Coastal 
Wetlands Sub-Account) are authorized to be appropriated for the 
uses authorized in the expenditure provisions.\45\
---------------------------------------------------------------------------
    \45\Act of August 9, 1950, 64 Stat. 430 (codified at 16 U.S.C. sec. 
777 et seq.) (``An Act to provide that the United States shall aid the 
States in fish restoration and management projects, and for other 
purposes,'' commonly referred to as the Dingell-Johnson Sport Fish 
Restortation Act.).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment eliminates the Aquatic Resources 
Trust Fund and future transfers to the Boat Safety Account and 
transforms the Sport Fish Restoration Account into the Sport 
Fish Restoration and Boating Trust Fund. After funding of the 
land and water conservation fund as under present law, the 
balance of the taxes on motorboat fuels is transferred from the 
Highway Trust Fund into the Sport Fish Restoration and Boating 
Trust Fund. In addition, the transfers from the Highway Trust 
Fund to the Sport Fish Restoration and Boating Trust Fund of 
amountsof taxes on gasoline used as a fuel in the nonbusiness 
use of small-engine outdoor power equipment are extended through 
September 30, 2011.
      Existing amounts in the Boat Safety Account, plus 
interest accrued on interest-bearing obligations of such 
account, are made available as provided under expenditure 
provisions.\46\ The expenditure provisions also authorize the 
appropriation of amounts in the Sport Fish Restoration and 
Boating Trust Fund, including for boating safety, for the uses 
authorized in the expenditure provisions.
---------------------------------------------------------------------------
    \46\The expenditure provisions are codified at 16 U.S.C. sec. 777 
et seq., as may be amended by the Sportfishing and Recreational Boating 
Safety Act of 2005.
---------------------------------------------------------------------------
      Effective date.--The Senate amendment is effective 
October 1, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
2. Repeal of harbor maintenance tax on exports (sec. 5212 of the Senate 
        amendment and sec. 4461 of the Code)

                              PRESENT LAW

      The Code contains provisions imposing a 0.125-percent 
excise tax on the value of most commercial cargo loaded or 
unloaded at U.S. ports (other than ports included in the Inland 
Waterway Trust Fund system). The tax also applies to amounts 
paid for passenger transportation using these U.S. ports. 
Exemptions are provided for (1) cargo donated for overseas use, 
(2) cargo shipped between the U.S. mainland and Alaska (except 
for crude oil), Hawaii, and/or U.S. possessions and (3) cargo 
shipped between Alaska, Hawaii, and/or U.S. possessions. 
Receipts from this tax are deposited in the Harbor Maintenance 
Trust Fund.
      The U.S. Supreme Court has held that the harbor 
maintenance excise tax is unconstitutional as applied to 
exported cargo because it violates the ``Export Clause'' of the 
U.S. Constitution.\47\ The tax remains in effect for imported 
cargo. Imposition of the tax on passenger transportation with 
respect to passengers on cruises that originate, stop, or 
terminate, at U.S. ports has been upheld.
---------------------------------------------------------------------------
    \47\United States Shoe Corp. v. United States, 523 U.S. 360, 118 S. 
Ct. 1290, 140 L. Ed. 2d 453 (1998).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment conforms the Code to the Supreme 
Court decision and exempts exported commercial cargo from the 
harbor maintenance tax.
      Effective date.--The Senate amendment is effective 
before, on, and after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
3. Cap on excise tax on certain fishing equipment (sec. 5213 of the 
        Senate amendment and sec. 4161 of the Code)

                              PRESENT LAW

      In general, the Code imposes a 10-percent tax on the sale 
by the manufacturer, producer, or importer of specified sport 
fishing equipment.\48\ A three-percent rate, however, applies 
to the sale of electric outboard motors and fishing tackle 
boxes.\49\ Sport fishing equipment subject to the 10-percent 
tax includes fishing rods and poles, fishing reels, fly fishing 
lines, and other fishing lines not over 130 pounds test, 
fishing spears, spear guns, and spear tips, and tackle items 
including leaders, artificial lures, artificial baits, 
artificial flies, fishing hooks, bobbers, sinkers, snaps, 
drayles, and swivels. In addition the following fishing 
supplies and accessories are subject to the 10-percent tax: 
fish stringers; creels; bags, baskets, and other containers 
designed to hold fish; portable bait containers; fishing vests; 
landing nets; gaff hooks; fishing hook disgorgers; dressing for 
fishing lines and artificial flies; fishing tip-ups and tilts; 
fishing rod belts, fishing rodholders; fishing harnesses; fish 
fighting chairs; and fishing outriggers and downriggers.
---------------------------------------------------------------------------
    \48\Sec. 4161(a)(1).
    \49\Sec. 4161(a)(2) and 4161(a)(3).
---------------------------------------------------------------------------
      Revenues from the excise tax on sport fishing equipment 
are deposited in the Sport Fish Restoration Account of the 
Aquatic Resources Trust Fund. Monies in the fund are spent, 
subject to an existing permanent appropriation, to support 
Federal-State sport fish enhancement and safety programs.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides that the tax applicable to 
a fishing rod or fishing pole is the lesser of 10 percent or 
$10.00.
      Effective date.--The Senate amendment is effective for 
articles sold by the manufacturer, producer, or importer after 
September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

                         C. Aerial Excise Taxes

1. Clarification of excise tax exemptions for agricultural aerial 
        applicators and exemption for fixed-wing aircraft engaged in 
        forestry operations (sec. 5221 of the Senate amendment and 
        secs. 4261 and 6420 of the Code)

                              PRESENT LAW

      Excise taxes are imposed on aviation gasoline (19.4 cents 
per gallon) and jet fuel (21.9 cents per gallon).\50\ All but 
0.1 cent per gallon of the revenues from these taxes are 
dedicated to the Airport and Airway Trust Fund. The remaining 
0.1 cent per gallon rate is imposed for the Leaking Underground 
Storage Tank Trust Fund.
---------------------------------------------------------------------------
    \50\Sec. 4081.
---------------------------------------------------------------------------
      Fuel used on a farm for farming purposes is a nontaxable 
use. Aerial applicators (crop dusters) are allowed to claim a 
refund instead of farm owners and operators in the case of 
aviation gasoline if the owners or operators give written 
consent to the aerial applicators.\51\ This provision applies 
only to fuel consumed in the airplane while operating over the 
farm, i.e., fuel consumed traveling to and from the farm is not 
exempt.
---------------------------------------------------------------------------
    \51\Sec. 6420(c)(4)).
---------------------------------------------------------------------------
      Air passenger transportation is subject to an excise tax 
equal to 7.5 percent of the amount paid plus $3.20 per domestic 
flight segment.\52\ The tax on transportation by air does not 
apply to air transportation by helicopter if the helicopter is 
used for (1) the exploration, or the development or removal of 
oil, gas, or hard minerals exploration, or (2) certain timber 
operations (planting, cultivating, cutting, transporting, or 
caring for trees, including logging operations).\53\ The 
exemption applies only when the helicopters are not using the 
Federally funded airport and airway services. Helicopters and 
fixed-wing aircraft providing emergency medical services also 
are exempt from the air passenger tax regardless of the type of 
airport and airway services used.\54\
---------------------------------------------------------------------------
    \52\Sec. 4261(a) and 4261(b).
    \53\Sec. 4261(f).
    \54\Sec. 4261(g).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      With regard to the exemption for aerial applicators, 
written consent from the farm owner or operator is no longer 
needed for the aerial applicator to claim exemption for 
aviation gasoline. The exemption also is expanded to include 
fuels consumed when flying between the farms where chemicals 
are applied and the airport where the airplane takes off and 
lands. The present exemption for helicopters engaged in timber 
operations is expanded to include fixed-wing aircraft if such 
aircraft are not using the Federally funded airport and airway 
services.
      Effective date.--The Senate amendment is effective for 
fuel use or air transportation after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
2. Modify the definition of rural airport (sec. 5222 of the Senate 
        amendment and sec. 4261 of the Code)

                              PRESENT LAW

      Air passenger transportation is subject to an excise tax 
equal to 7.5 percent of the amount paid plus $3.20 per domestic 
flight segment.\55\ The $3.20 tax on flight segments does not 
apply to a domestic segment beginning or ending at a rural 
airport.
---------------------------------------------------------------------------
    \55\Sec. 4261(a) and 4261(b).
---------------------------------------------------------------------------
      With respect to any calendar year, a rural airport is an 
airport that had fewer than 100,000 passengers departing by air 
during the second preceding calendar year for such airport and 
such airport either (1) is not located within 75 miles of a 
larger airport (one that had at least 100,000 passengers 
departing in the second preceding calendar year), or (2) was 
receiving essential air service subsidy payments as of August 
5, 1997.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment expands the definition of qualified 
rural airport to include an airport that (1) is not connected 
by paved roads to another airport and (2) had fewer than 
100,000 commercial passengers departing by air on flight 
segments of at least 100 miles during the second preceding 
calendar year.
      Effective date.--The Senate amendment is effective on 
October 1, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
3. Exempt from ticket taxes transportation provided by seaplanes (sec. 
        5223 of the Senate amendment and secs. 4261 and 4083 of the 
        Code)

                              PRESENT LAW

      Air passenger transportation is subject to an excise tax 
equal to 7.5 percent of the amount paid plus $3.20 per domestic 
flight segment (``air passenger tax'').\56\ A 6.25-percent tax 
is imposed on amounts paid for transportation of property by 
air (``air cargo tax'').\57\ The air cargo tax applies only to 
amounts paid to persons engaged in the business of transporting 
property by air for hire. The air passenger tax and air cargo 
tax do not apply to amounts paid for the transportation if 
furnished on an aircraft having a maximum certificated takeoff 
weight of 6,000 pounds or less unless the aircraft is operated 
on an established line.\58\
---------------------------------------------------------------------------
    \56\Sec. 4261(a) and 4261(b).
    \57\Sec. 4271.
    \58\Sec. 4281.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides that the air passenger tax 
and the air cargo tax do not apply to transportation by a 
seaplane with respect to any segment consisting of a takeoff 
from, and a landing on, water, but only if the places at which 
such takeoff and landing occur have not received and are not 
receiving financial assistance from the Airport and Airway 
Trust Fund.
      Effective date.--The Senate amendment is effective for 
transportation beginning after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment but 
clarifies that for purposes of the fuel taxes, transportation 
by seaplane is treated as noncommercial aviation.
4. Exempt certain sightseeing flights from taxes on air transportation 
        (sec. 5224 of the Senate amendment and sec. 4281 of the Code)

                              PRESENT LAW

      Under present law, taxable aviation transportation is 
subject to a 7.5-percent excise tax on the price of an airline 
ticket and a $3.20 segment tax. An exception to these taxes is 
provided for transportation by an aircraft having a maximum 
certificated takeoff weight of 6,000 pounds or less except when 
the aircraft is operated on an established line. Under the 
Treasury regulations to be ``operated on an established line'' 
means to be operated with ``some degree of regularity between 
definite points. The term implies that the air carrier 
maintains control over the direction, routes, time, number of 
passengers carried, etc.''\59\ Treasury regulations provide 
that transportation need not be between two definite points to 
be taxable: a payment for continuous transportation beginning 
and ending at the same point is subject to the tax.\60\ The IRS 
position is that the words ``between definite points'' do not 
require two separate points for purposes of determining whether 
an aircraft is operated on an established line. At least one 
court has agreed.\61\
---------------------------------------------------------------------------
    \59\Treas. Reg. sec. 49.4263-5(c).
    \60\Treas. Reg. sec. 49.4261-1(c).
    \61\Lake Mead Air Inc. v. United States, 991 F. Supp. 1209 (D. Nev. 
1997) (the court determined that aircraft flights providing scenic 
tours of the Grand Canyon were operated on an established line).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      For purposes of the exemption for small aircraft operated 
on nonestablished lines, an aircraft operated on a flight, the 
sole purpose of which is sightseeing, will not be considered as 
operated on an established line.
      Effective date.--The Senate amendment is effective with 
respect to transportation beginning after September 30, 2005, 
but does not apply to any amount paid before such date for such 
transportation.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

                      D. Taxes Relating to Alcohol

1. Repeal special occupational taxes on producers and marketers of 
        alcoholic beverages (sec. 5231 of the Senate amendment and 
        secs. 5081, 5091, 5111, 5112, 5113, 5117, 5121, 5122, 5123, 
        5125, 5131, 5132, 5141, 5147, 5148, and 5276 of the Code)

                              PRESENT LAW

      Under the law in effect prior to July 1, 2005, special 
occupational taxes are imposed on producers and others engaged 
in the marketing of distilled spirits, wine, and beer. These 
excise taxes are imposed as part of a broader Federal tax and 
regulatory structure governing the production and marketing of 
alcoholic beverages. The special occupational taxes are payable 
annually, on July 1 of each year. The tax rates in effect prior 
to July 1, 2005 are as follows:
      Producers\62\:
---------------------------------------------------------------------------
    \62\A reduced rate of tax in the amount of $500.00 is imposed on 
small proprietors (as defined in the Code) (secs. 5081(b) and 5091(b)).
---------------------------------------------------------------------------
            Distilled spirits and wines (sec. 5081),\63\ $1,000 
        per year, per premise.
---------------------------------------------------------------------------
    \63\Proprietors of plants producing distilled spirits exclusively 
for fuel use, with annual production not exceeding 10,000 proof 
gallons, are exempt. Secs. 5081(c) and 5181(c)(4).
---------------------------------------------------------------------------
            Brewers (sec. 5091), $1,000 per year, per premise.
      Wholesale dealers (sec. 5111): Liquors, wines, or beer, 
$500 per year.
      Retail dealers (sec. 5121): Liquors, wines, or beer, $250 
per year.
      Nonbeverage use of distilled spirits (sec. 5131): $500 
per year.
      Industrial use of distilled spirits (sec. 5276): $250 per 
year.
      Section 246(a) of the American Jobs Creation Act of 2004 
suspends the special occupational tax for the period beginning 
July 1, 2005 and ending June 30, 2008.\64\
---------------------------------------------------------------------------
    \64\See sec. 5148.
---------------------------------------------------------------------------
      Every person engaged in a trade or business on which a 
special occupational tax is imposed is required to register 
with the Secretary.\65\ In addition, every dealer in liquors, 
wine or beer is required to keep records of their 
transactions.\66\ A dealer is any person who sells, or offers 
for sale, distilled spirits, wine, or beer.\67\ A delegate of 
the Secretary of the Treasury is authorized to inspect the 
records of any dealer during business hours.\68\ There are 
penalties for failing to comply with the recordkeeping 
requirements.\69\ There are also registration and regulation 
requirements for the nonbeverage use of distilled spirits, and 
permit and recordkeeping requirements for the industrial use of 
distilled spirits.\70\
---------------------------------------------------------------------------
    \65\Secs. 5141 and 7011. The registration is of such person's name 
or style, place of residence, trade or business, and the place where 
such trade or business is to be carried on.
    \66\Secs. 5114 and 5124.
    \67\Sec. 5112(a). Such definition includes producers and, in 
general, proprietors of warehouses.
    \68\Sec. 5146.
    \69\Sec. 5603.
    \70\Secs. 5132 and 5275.
---------------------------------------------------------------------------
      The Code limits the persons from whom dealers may 
purchase their liquor stock intended for resale. A dealer may 
only purchase from:
      1. A wholesale dealer in liquors who has paid the special 
occupational tax as such dealer to cover the place where such 
purchase is made; or
      2. A wholesale dealer in liquors who is exempt, at the 
place where such purchase is made, from payment of such tax 
under any provision of chapter 51 of the Code; or
      3. A person who is not required to pay special 
occupational tax as a wholesale dealer in liquors.\71\
---------------------------------------------------------------------------
    \71\Sec. 5117. For example, purchases from a proprietor of a 
distilled spirits plant at his principal business office would be 
covered under item (2) since such a proprietor is not subject to the 
special occupational tax on account of sales at his principal business 
office (sec. 5113(a)). Purchases from a State-operated liquor store 
would be covered under item (3) (sec. 5113(b)).
---------------------------------------------------------------------------
      Violation of this restriction is punishable by $1,000 
fine, imprisonment of one year, or both.\72\ A violation also 
subjects the alcohol to seizure and forfeiture.\73\
---------------------------------------------------------------------------
    \72\Sec. 5687.
    \73\Sec. 7302.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment repeals the special occupational 
taxes on producers and marketers of alcoholic beverages and on 
the nonbeverage or industrial use of distilled spirits. The 
registration, recordkeeping and inspection rules applicable to 
wholesale and retail dealers are retained.\74\ For purposes of 
the recordkeeping requirements for wholesale and retail liquor 
dealers, the Senate amendment provides a rebuttable presumption 
that a person who sells, or offers for sale, distilled spirits, 
wine, or beer, in quantities of 20 wine gallons or more to the 
same person at the same time is engaged in the business of a 
wholesale dealer in liquors or a wholesale dealer in beer. In 
addition, the Senate amendment retains the present-law rules 
that make it unlawful for any liquor dealer to purchase 
distilled spirits for resale from any person other than a 
wholesale liquor dealer subject to the recordkeeping 
requirements, or a proprietor of a distilled spirits plant 
subject to recordkeeping requirements.\75\ Existing general 
criminal penalties relating to records and reports apply to 
wholesalers and retailers who fail to comply with these 
requirements.
---------------------------------------------------------------------------
    \74\The provision also retains the present-law registration and 
regulation requirements for the nonbeverage use of distilled spirits, 
and the permit and recordkeeping requirements for the industrial use of 
distilled spirits.
    \75\Proprietors of distilled spirits plants remain subject to 
present law recordkeeping requirements under section 5207. Under 
present law, a limited retail dealer in liquors (such as a charitable 
organization selling liquor at a picnic) may lawfully purchase 
distilled spirits for resale from a retail dealer in distilled spirits. 
The provision retains this rule.
---------------------------------------------------------------------------
      Effective date.--The Senate amendment is effective on 
July 1, 2008. The provision does not affect liability for taxes 
imposed with respect to periods before July 1, 2008.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
2. Modify limitation on rate of rum excise tax cover over to Puerto 
        Rico and Virgin Islands (sec. 5232 of the Senate amendment)

                              PRESENT LAW

      A $13.50 per proof gallon\76\ excise tax is imposed on 
distilled spirits produced in or imported (or brought) into the 
United States.\77\ The excise tax does not apply to distilled 
spirits that are exported from the United States, including 
exports to U.S. possessions (e.g., Puerto Rico and the Virgin 
Islands).\78\
---------------------------------------------------------------------------
    \76\A proof gallon is a liquid gallon consisting of 50 percent 
alcohol. See sec. 5002(a)(10) and 5002(a)(11).
    \77\Sec. 5001(a)(1).
    \78\Secs. 5062(b), 7653(b), and 7653(c).
---------------------------------------------------------------------------
      The Code provides for cover over (payment) to Puerto Rico 
and the Virgin Islands of the excise tax imposed on rum 
imported (or brought) into the United States, without regard to 
the country of origin.\79\ The amount of the cover over is 
limited under Code section 7652(f) to $10.50 per proof gallon 
($13.25 per proof gallon during the period July 1, 1999 through 
December 31, 2005).
---------------------------------------------------------------------------
    \79\Secs. 7652(a)(3), 7652(b)(3), and 7652(e)(1). One percent of 
the amount of excise tax collected from imports into the United States 
of articles produced in the Virgin Islands is retained by the United 
States under section 7652(b)(3).
---------------------------------------------------------------------------
      Tax amounts attributable to shipments to the United 
States of rum produced in Puerto Rico are covered over to 
Puerto Rico. Tax amounts attributable to shipments to the 
United States of rum produced in the Virgin Islands are covered 
over to the Virgin Islands. Tax amounts attributable to 
shipments to the United States of rum produced in neither 
Puerto Rico nor the Virgin Islands are divided and covered over 
to the two possessions under a formula.\80\ Amounts covered 
over to Puerto Rico and the Virgin Islands are deposited into 
the treasuries of the two possessions for use as those 
possessions determine.\81\ All of the amounts covered over are 
subject to the limitation.
---------------------------------------------------------------------------
    \80\Sec. 7652(e)(2).
    \81\Secs. 7652(a)(3), (b)(3), and 7652(e)(1).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, the cover over amount of 
$13.25 per proof gallon is modified to $13.50 for rum brought 
into the United States after December 31, 2005 and before 
January 1, 2007. After December 31, 2006, the cover over amount 
reverts to $10.50 per proof gallon.
      The Senate amendment additionally requires that Puerto 
Rico transfers a portion of the amount covered over to Puerto 
Rico to the Puerto Rico Conservation Trust Fund (the 
``Fund'').\82\ The treasury of Puerto Rico is required to 
transfer to the Fund amounts equal to 50 cents per proof gallon 
of the taxes covered over to Puerto Rico, and attributable to 
rum imported into the United States that was produced neither 
in Puerto Rico nor the Virgin Islands. The transfers are 
required to be made within 30 days of each such cover over 
payment to Puerto Rico. Each transfer payment is to be treated 
as principal for an endowment, the income from which is to be 
used by the Fund for the purposes for which the Fund was 
established. If Puerto Rico fails to make a timely payment to 
the Trust Fund, the Secretary of the Treasury shall deduct and 
withhold such unpaid amount from the next cover over payment, 
plus interest, and shall transfer such amounts directly to the 
Fund. Such deduction, withholding, and direct payment will not 
be made if the Secretary of the Interior, after consultation 
with the Governor of Puerto Rico, finds that the failure of the 
treasury of Puerto Rico to make the transfer payment was for 
good cause. The transfer requirement expires after December 31, 
2006.
---------------------------------------------------------------------------
    \82\The Puerto Rico Conservation Trust Fund was established 
pursuant to a Memorandum of Understanding, dated December 24, 1968, 
between the United States Department of the Interior and the 
Commonwealth of Puerto Rico.
---------------------------------------------------------------------------
      Effective date.--The change in the cover over rate is 
effective for articles brought into the United States after 
December 31, 2005. The Senate amendment regarding the Puerto 
Rico Conservation Trust Fund is effective January 1, 2006.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
3. Provide an income tax credit for cost of carrying tax-paid distilled 
        spirits in wholesale inventories and in control State bailment 
        warehouses (sec. 5233 of the Senate amendment and new sec. 5011 
        of the Code)

                              PRESENT LAW

      As is true of most major Federal excise taxes, the excise 
tax on distilled spirits is imposed at a point in the chain of 
distribution before the product reaches the retail (consumer) 
level. The excise tax on distilled spirits produced in the 
United States is imposed when the distilled spirits are removed 
from the distilled spirits plant where they are produced. 
Distilled spirits that are bottled before importation into the 
United States are taxed on removal from the first U.S. customs 
bonded warehouse to which they are landed (including a 
warehouse located in a foreign trade zone). Distilled spirits 
imported in bulk containers for bottling in the United States 
may be transferred to a domestic distilled spirits plant 
without payment of tax; subsequently, these distilled spirits 
are taxed in the same way as domestically produced distilled 
spirits.
      No tax credits are allowed under present law for business 
costs associated with having tax-paid products in inventory. 
Rather, excise tax that is included in the purchase price of a 
product is treated the same as the other components of the 
product cost, i.e., deductible as a cost of goods sold.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment creates a new income tax credit for 
eligible wholesalers, distillers, and importers, of distilled 
spirits. The credit is in addition to present-law rulesallowing 
tax included in inventory costs to be deducted as a cost of goods sold, 
and is treated as part of the general business credits.
      The credit is calculated by multiplying the number of 
cases of bottled distilled spirits by the average tax-financing 
cost per case for the most recent calendar year ending before 
the beginning of such taxable year. A case is 12 80-proof 750-
milliliter bottles. The average tax-financing cost per case is 
the amount of interest that would accrue at corporate 
overpayment rates during an assumed 60-day holding period on an 
assumed tax rate of $25.68 per case of 12 80-proof 750-
milliliter bottles.
      The wholesaler credit only applies to domestically 
bottled distilled spirits\83\ purchased directly from the 
bottler of such spirits. An eligible wholesaler is any person 
that holds a permit under the Federal Alcohol Administration 
Act as a wholesaler of distilled spirits that is not a State, 
or agency or political subdivision thereof.
---------------------------------------------------------------------------
    \83\Distilled spirits that are imported in bulk and then bottled 
domestically qualify as domestically bottled distilled spirits.
---------------------------------------------------------------------------
      For distillers and importers that are not eligible 
wholesalers, the credit is limited to bottled inventory in a 
warehouse owned and operated by, or on behalf of, a State or 
political subdivision thereof, when title to such inventory has 
not passed unconditionally. The credit for distillers and 
importers applies to distilled spirits bottled both 
domestically and abroad.
      Effective date.--The Senate amendment is effective for 
taxable years beginning after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
4. Quarterly excise tax filing for small alcohol excise taxpayers (sec. 
        5234 of the Senate amendment and sec. 5061 of the Code)

                              PRESENT LAW

      In general, excise taxes on distilled spirits, wines, and 
beers are collected on the basis of returns filed in accordance 
with rules prescribed by the Secretary of the Treasury.\84\ In 
the case of distilled spirits, beer, and wine withdrawn under 
bond for deferred payment of tax (``deferred payment bond''), 
domestic producers are generally required to pay alcohol excise 
taxes within 14 days after the last day of the semi-monthly 
period during which the article is withdrawn.\85\ In the case 
of distilled spirits, wines, and beer which are imported into 
the United States (other than in bulk containers), the importer 
is generally required to pay alcohol excise taxes within 14 
days after the last day of the semi-monthly period during which 
the article is entered into the customs territory of the United 
States.\86\ In the case of imported articles entered for 
warehousing, the taxes are generally due within 14 days after 
the last day of the semi-monthly period during which the 
article is removed from the first such warehouse.\87\ Treasury 
regulations also permit certain very small wine producers to 
file and pay on an annual basis.\88\
---------------------------------------------------------------------------
    \84\Sec. 5061(a).
    \85\Sec. 5061(d)(1).
    \86\Sec. 5061(d)(2)(A).
    \87\Sec. 5061(d)(2)(B).
    \88\Annual filing and payment is permitted to a wine producer who 
has not given a deferred payment bond, and who either paid wine excise 
taxes in an amount less than $1,000 during the previous calendar year 
or is a proprietor of a new bonded wine premise and expects to pay less 
than $1,000 in wine excise taxes before the end of the calendar year. 
27 CFR sec. 24.273(a).
---------------------------------------------------------------------------
      Special rules apply to accelerate payments made with 
respect to taxes allocable to the second half of the month of 
September.\89\
---------------------------------------------------------------------------
    \89\Sec. 5061(d)(4).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, domestic producers and 
importers of distilled spirits, wine, and beer with excise tax 
liability of $50,000 or less attributable to such articles in 
the preceding calendar year may file returns and pay taxes 
within 14 days after the end of the calendar quarter instead of 
semi-monthly. In order to qualify, the taxpayer's liability for 
such taxes during the immediately preceding year must have been 
$50,000 or less, and, as of the beginning of the current 
calendar year, the taxpayer must reasonably expect to pay less 
than $50,000 in such taxes for that year. The Senate amendment 
does not apply to a taxpayer for any portion of the calendar 
year following the first date on which the aggregate amount of 
tax due for that year exceeds the $50,000 threshold.
      The special rules accelerating payments for taxes 
allocable to the second half of September do not apply to 
quarterly filers under the Senate amendment.
      Very small wine producers who have not given deferred 
payment bonds may still file and pay on an annual basis as 
under present law.
      Effective date.--The Senate amendment is effective for 
quarterly periods beginning on and after January 1, 2006.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with the clarification that quarterly filing and payment 
applies only to withdrawals, removals, and entries (and 
articles brought into the United States from Puerto Rico) under 
deferred payment bonds. Transactions that are not made under 
deferred payment bonds do not qualify for quarterly filing and 
payment, but do count toward determining whether the $50,000 
threshold has been reached.

                         E. Sport Excise Taxes

1. Custom gunsmiths (sec. 5241 of the Senate amendment and sec. 4182 of 
        the Code)

                              PRESENT LAW

      The Code imposes an excise tax upon the sale by the 
manufacturer, producer or importer of certain firearms and 
ammunition.\90\ Pistols and revolvers are taxable at 10 
percent. Firearms (other than pistols and revolvers), shells, 
and cartridges are taxable at 11 percent. The excise tax for 
firearms imposed on manufacturers, producers, and importers 
does not apply to machine guns and short barreled firearms. 
Sales to the Defense Department of firearms, pistols, 
revolvers, shells and cartridges also are exempt from the tax.
---------------------------------------------------------------------------
    \90\Sec. 4181.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment exempts from the firearms excise tax 
firearms, pistols, and revolvers manufactured, produced, or 
imported by a person who manufactures, produces, and imports 
less than 50 of such articles during the calendar year. 
Controlled groups are treated as a single person for 
determining the 50-article limit.
      Effective date.--The Senate amendment is effective for 
articles sold by the manufacturer, producer, or importer after 
September 30, 2005. No inference is intended from the 
prospective effective date of this provision as to the proper 
treatment of pre-effective date sales.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

                     III. MISCELLANEOUS PROVISIONS

A. Motor Fuel Tax Enforcement Advisory Commission (sec. 5301 of the 
        Senate amendment)

                              PRESENT LAW

      Present law does not require that there be an advisory 
commission on motor tax fuel enforcement.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment establishes a ``Motor Fuel Tax 
Enforcement Advisory Commission'' (the ``Commission''). The 
purpose of the Commission is to: (1) review motor fuel revenue 
collections, historical and current; (2) review the progress of 
investigations; (3) develop and review legislative proposals 
with respect to motor fuel taxes; (4) monitor the progress of 
administrative regulation projects relating to fuel taxes; (5) 
review the results Federal and State agency cooperative efforts 
regarding motor fuel taxes; and (6) review the results of 
Federal interagency cooperative efforts regarding motor fuel 
taxes. The Commission also is to evaluate and make 
recommendations regarding: (1) the effectiveness of existing 
Federal enforcement programs regarding motor fuel taxes; (2) 
enforcement personnel allocation; and (3) proposals for 
regulatory projects, legislation, and funding.
      The Commission is to be composed of the following:
      1. At least one representative from each of the following 
Federal entities: the Department of Homeland Security, the 
Department of Transportation--Office of Inspector General, the 
Federal Highway Administration, the Department of Defense, and 
the Department of Justice;
      2. At least one representative from the Federation of 
State Tax Administrators;
      3. At least one representative from any State Department 
of Transportation;
      4. Two representatives from the highway construction 
industry;
      5. Six representatives from industries relating to fuel 
distribution: refiners (two representatives), distributors (one 
representative), pipelines (one representative), terminal 
operators (two representatives);
      6. One representative from the retail fuel industry; and
      7. Two representatives each from the staff of the Senate 
Committee on Finance and the House Committee on Ways and Means.
      Members of the Commission are to be appointed by the 
Chairmen and Ranking Members of the Senate Committee on Finance 
and the House Committee on Ways and Means. Representatives from 
the Department of Treasury and the IRS shall be available to 
consult with the Commission upon request. The Commission is to 
terminate after September 30, 2009.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

B. National Surface Transportation Infrastructure Financing Commission 
                  (sec. 5302 of the Senate amendment)

                              PRESENT LAW

      Present law does not provide for any advisory commissions 
related Federal highway or mass transit funding.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision establishes a ``National Surface 
Transportation Infrastructure Financing Commission'' (the 
``Financing Commission''). The Financing Commission is to be 
composed of 15 members drawn from among individuals 
knowledgeable in the fields of public transportation finance or 
highway and transit programs, policy, and needs. Financing 
Commission members may include representatives of State and 
local governments or other public transportation agencies, 
representatives of the transportation construction industry, 
providers of transportation, persons knowledgeable in finance, 
and users of highway and transit systems.
      The Financing Commission will make an investigation and 
study of revenues flowing into the Highway Trust Fund under 
present law. The Financing Commission will consider whether the 
amount of such revenues is likely to increase, decline or 
remain unchanged absent changes in the law. The Financing 
Commission will consider alternative approaches to generating 
revenues for the Highway Trust Fund, and the level of revenues 
that such alternatives would yield. The Financing Commission 
will consider highway and transit needs and whether additional 
revenues into the Highway Trust Fund, or other Federal revenues 
dedicated to highway and transit infrastructure, would be 
required in order to meet such needs.
      The Financing Commission will develop a final report, 
with recommendations and the bases for those recommendations. 
The Financing Commission's recommendations will address: (1) 
what levels of revenue are required by the Highway Trust Fund 
in order for it to meet needs to maintain and improve the 
condition and performance of the nation's highway and transit 
systems; (2) what levels of revenue are required by the Highway 
Trust Fund in order to ensure that Federal levels of investment 
in highways and transit do not decline in real terms; and (3) 
the extent, if any, to which the Highway Trust Fund should be 
augmented by other mechanisms or funds as a Federal means of 
financing highway and transit infrastructure investments.
      The Financing Commission will submit its report and 
recommendations within two years of the date of its first 
meeting to the Secretary of Transportation, the Secretary of 
the Treasury, the House Committee on Ways and Means, Senate 
Committee on Finance, the House Committee on Transportation and 
Infrastructure, the Senate Committee on Environment and Public 
Works, and Senate Committee on Banking, Housing, and Urban 
Affairs.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with the following modification. The Commission also must 
consider a program that would exempt all or a portion of 
gasoline or other motor fuels used in a State from the Federal 
excise tax on such gasoline or other motor fuels if such State 
elects not to receive all or a portion of Federal 
transportation funding, including: (1) whether such State 
should be required to increase State gasoline or other motor 
fuels taxes by the amount of the decrease in the Federal excise 
tax on such gasoline or other motor fuels; (2) whether any 
Federal transportation funding should not be reduced or 
eliminated for States participating in such program; (3) 
whether there are any compliance problems related to 
enforcement of Federal transportation-related excise taxes; and 
(4) study such other matters closely related to the subjects 
described in the preceding subparagraphs as it may deem 
appropriate.

 C. Expand Highway Trust Fund Expenditure Purposes to Include Funding 
 for Studies of Supplemental or Alternative Financing for the Highway 
             Trust Fund (sec. 5303 of the Senate amendment)

                              PRESENT LAW

In general
      Dedication of excise tax revenues to the Highway Trust 
Fund and expenditures from the Highway Trust Fund are governed 
by provisions of the Code (sec. 9503).\91\ The Code authorizes 
expenditures (subject to appropriations) from the Fund through 
July 30, 2005, for the purposes provided in authorizing 
legislation, as in effect on the date of enactment of the 
Surface Transportation Extension Act of 2005, Part IV.
---------------------------------------------------------------------------
    \91\The Highway Trust Fund statutory provisions were placed in the 
Internal Revenue Code in 1982.
---------------------------------------------------------------------------
      The Highway Trust Fund has a subaccount for Mass Transit. 
Both the Trust Fund and its subaccount are funding sources for 
specific programs.
      Highway Trust Fund expenditure purposes have been revised 
with each authorization Act enacted since establishment of the 
Highway Trust Fund in 1956. In general, expenditures authorized 
under those Acts (as the Acts were in effect on the date of 
enactment of the most recent such authorizing Act) are approved 
by the Code as Highway Trust Fund expenditure purposes.\92\
---------------------------------------------------------------------------
    \92\The authorizing Acts which currently are referenced in the 
Highway Trust Fund provisions of the Code are: the Highway Revenue Act 
of 1956; Titles I and II of the Surface Transportation Assistance Act 
of 1982; the Surface Transportation and Uniform Relocation Act of 1987; 
the Intermodal Surface Transportation Efficiency Act of 1991; the 
Transportation Equity Act for the 21st Century; the Surface 
Transportation Extension Act of 2003; the Surface Transportation 
Extension Act of 2004; the Surface Transportation Extension Act of 2004 
Part II; the Surface Transportation Extension Act of 2004, Part III; 
the Surface Transportation Extension Act of 2004, Part IV; the Surface 
Transportation Extension Act of 2004, Part V; the Surface 
Transportation Extension Act of 2005; the Surface Transportation 
Extension Act of 2005, Part II; the Surface Transportation Extension 
Act of 2005, Part III; the Surface Transportation Extension Act of 
2005, Part IV and the Surface Transportation Extension Act of 2005, 
Part V.
---------------------------------------------------------------------------
Highway Trust Fund expenditure purposes
            Highway Trust Fund expenditure purposes
      The Highway Trust Fund receives revenues from all non-
fuel highway transportation excise taxes and revenues from all 
but 2.86 cents per gallon of the highway motor fuels excise 
taxes transferred to the Highway Trust Fund. Programs financed 
from the Highway Trust Fund (excluding the Mass Transit 
account) include:
      1. Interstate maintenance program;
      2. National Highway System;
      3. The bridge program (bridge replacement and repair);
      4. Surface transportation programs;
      5. Congestion mitigation and air quality improvement 
program;
      6. Highway safety programs and research and development, 
including a share of the cost of National Highway Traffic 
Safety Administration (``NHTSA'') programs and university 
research centers;
      7. Appalachian development highway system program;
      8. Recreational trails program;
      9. Federal lands highways program;
      10. National corridor planning and development and 
coordinated border infrastructure programs;
      11. Construction of ferry boats and ferry terminal 
facilities;
      12. National scenic byways program;
      13. Value pricing pilot program;
      14. High priority projects program;
      15. Highway use tax evasion projects; and
      16. Commonwealth of Puerto Rico highway program.
      Certain administrative costs of the Federal Highway 
Administration and NHTSA are also funded from the Highway Trust 
Fund.
            Mass Transit Account expenditure purposes
      The Highway Fund's Mass Transit Account receives revenues 
equivalent to 2.86 cents per gallon of the highway motor fuels 
excise taxes. Mass Transit Account monies are available through 
July 27, 2005, for capital and capital-related expenditures 
under section 5338(a)(1) and 5338(b)(1) of Title 49, United 
States Code; the Intermodal Surface Transportation Efficiency 
Act of 1991; the Transportation Equity Act for the 21st 
Century; the Surface Transportation Extension Act of 2003; the 
Surface Transportation Extension Act of 2004; the Surface 
Transportation Extension Act of 2004, Part II; the Surface 
Transportation Extension Act of 2004, Part III; the Surface 
Transportation Extension Act of 2004, Part IV; the Surface 
Transportation Act of 2004, Part V; the Surface Transportation 
Extension Act of 2005; the Surface Transportation Extension Act 
of 2005, Part II; the Surface Transportation Extension Act of 
2005, Part III; the Surface Transportation Extension Act of 
2005, Part IV; and the Surface Transportation Extension Act of 
2005, Part V, as those provisions were in effect on the date of 
enactment of the Surface Transportation Extension Act of 2005, 
Part V.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment expands the expenditure authority 
and authorizes the expenditure of monies from the Highway Trust 
Fund to fund two comprehensive studies of supplemental or 
alternative funding sources for the Highway Trust Fund. One 
study, to receive $1 million in funding, will review funding 
mechanisms of other industrialized nations and examine the 
viability of proposals such as congestion pricing, greater 
reliance on tolls, privatization of facilities, and other 
funding proposals. This study would be due no later than 
December 31, 2006. The other study, to receive $16.5 million in 
funding, would report on a long-term field test of a new 
approach to assessing highway use taxes by use of an on-board 
computer that links to satellites to calculate road mileage 
traversed and compute the appropriate highway use tax for each 
of the Federal, State, and local government as the vehicle 
makes use of the roads. The results of this study would be due 
no later than December 31, 2011. Each study would be delivered 
to the Secretary of the Treasury and the Secretary of 
Transportation.
      Effective date.--The Senate amendment is effective upon 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement addresses authorization of 
expenditures for the study of alternative financing for the 
Highway Trust Fund elsewhere in the conference agreement and 
does not amend the Code for this purpose.

D. Delta Regional Transportation Plan (sec. 1806 of the House bill and 
                   sec. 5304 of the Senate amendment)

                              PRESENT LAW

      The Delta Regional Authority is a Federal-State 
partnership, serving a 240-county/parish area in an eight-State 
region.\93\ No State is required to participate with the 
authority. The duties of the authority are to: (1) produce a 
regional development plan; (2) set priorities for approval of 
grants in the region; (3) assess the region's needs and assets; 
(4) inform participating States about interstate cooperation; 
(5) work with States and local agencies to develop model 
legislation; (6) enhance the capacity of and support Local 
Development Districts, as well as the creation of Local 
Development Districts where none currently exist; (7) encourage 
private investment in economic development projects in the 
region; and (8) assist State governments with the States' 
economic development program.
---------------------------------------------------------------------------
    \93\The covered States and counties are: Alabama--20 counties; 
Arkansas--42 counties; Illinois, 16 counties; Kentucky--21 counties; 
Louisiana--46 parishes; Mississippi--45 counties; Missouri--29 
counties; and Tennessee--21 counties. Delta Regional Authority, 
Legislative Matters and Overview (February 1, 2004), .
---------------------------------------------------------------------------

                               HOUSE BILL

      The provision directs the Secretary of Transportation to 
enter into an agreement with the Delta Regional Authority to 
conduct a comprehensive study of transportation assets and 
needs in the eight states comprising the Delta region (Alabama, 
Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, 
and Tennessee). The agreement must be entered into within six 
months from the date of enactment. The study and 
recommendations must be submitted, no later than 24 months 
after the date of entry into the agreement, to the Secretary of 
Transportation, to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Environment and Public Works of the Senate.
      The study is to include all modes of transportation 
(including passenger and freight transportation). The Delta 
Regional Authority is to work with local planning and 
development districts, local and regional governments, 
metropolitan planning organizations, State transportation 
entities, and Department of Transportation to develop a 
regional strategic transportation plan. Upon completion of the 
study, the Delta Regional Authority is to create a regional 
strategic plan to achieve efficient transportation systems in 
the Delta region.
      The provision authorizes the Delta Regional Authority to 
receive $500,000 in fiscal year 2005, and $500,000 in fiscal 
year 2006 to conduct a comprehensive study and plan. These 
funds are to remain available until spent.
      Effective date.--The House bill is effective on the date 
of enactment.

                            SENATE AMENDMENT

      The Senate amendment generally follows the House bill but 
does not require an agreement with the Secretary of 
Transportation, nor does it set a deadline for the submission 
of the report.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement addresses the Delta Region 
Transportation Plan elsewhere in the conference agreement and 
does not amend the Code for this purpose.

    E. Establish Build America Corporation (sec. 5305 of the Senate 
                               amendment)

                              PRESENT LAW

      There is no provision in Federal law establishing a 
nonprofit corporation dedicated to providing financing or other 
financial support for transportation infrastructure projects.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment establishes a nonprofit corporation, 
to be known as the ``Build America Corporation.'' The Build 
America Corporation is not an agency or establishment of the 
United States Government. The Build America Corporation 
generally shall be subject to the laws of the State of Delaware 
applicable to non-profit corporations.
      The purpose of the corporation is to provide financial 
support for qualified projects. Under the provision, a 
``qualified project'' generally is defined as any 
transportation infrastructure project of any governmental unit 
or other person that is proposed by a State, including a 
highway project, a transit system project, a railroad project, 
an airport project, a port project, and an inland waterways 
project. The provision imposes additional requirements if a 
qualified project is financed by debt issued by the Build 
America Corporation.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

   F. Increase in Dollar Limits for Qualified Transportation Fringe 
              Benefits (sec. 5306 of the Senate amendment)

                              PRESENT LAW

      Under present law, qualified transportation benefits are 
excludable from gross income and wages for employment tax 
purposes. Qualified transportation benefits are: (1) 
transportation in a commuter highway vehicle if such 
transportation is in connection with travel between the 
employee's residence and place of employment (``van pooling''); 
(2) transit passes; and (3) qualified parking. For purposes of 
the exclusion for van pooling benefits, a commuter highway 
vehicle is any highway vehicle: (1) the seating capacity of 
which is at least six adults (excluding the driver); and (2) at 
least 80 percent of the mileage use of which can reasonably be 
expected to be (a) for purposes of transporting employees in 
connection with travel between their residences and their place 
of employment and (b) on trips during which the number of 
employees transported for such purposes is at least one-half of 
the adult seating capacity of such vehicle (not including the 
driver).
      The maximum amount of qualified parking that is 
excludable from income and wages is $200 per month (for 2005). 
The maximum amount of transit passes and van pooling benefits 
that are excludable from income and wages per month is $105 
(for 2005). These dollar amounts are indexed for inflation.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, the maximum dollar amount of 
excludable van pooling and transit pass benefits is increased 
to $155 per month. The maximum amount of excludable qualified 
parking is $200 per month. The dollar amounts are indexed for 
inflation after 2008 (with 2007 as a base year). Beginning in 
2010, the maximum dollar amount of excludable van pooling and 
transit pass benefits is increased so that it is equal to the 
maximum amount of excludable qualified parking.
      Effective date.--The Senate amendment is effective for 
taxable years beginning after December 31, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

       G. Treasury Study of Highway Fuels Used by Trucks for Non-
      Transportation Purposes (sec. 5307 of the Senate amendment)

                              PRESENT LAW

      Present law does not provide for a study of the fuel use 
by trucks.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment directs the Secretary of the 
Treasury to study the use by trucks of highway motor fuel that 
is not used for the propulsion of the vehicle, both in the case 
of vehicles carrying equipment that is unrelated to the 
transportation function of the vehicle and in the case where 
non-transportation equipment is run by a separate motor. In 
addition, the Secretary is to estimate the amount of fuel 
consumed and pollutants emitted by trucks due to the long-term 
idling of diesel engines, and report on the cost of reducing 
long-term idling through various technologies. The Secretary is 
to propose options for implementing exemptions for classes of 
vehicles whose nonpropulsive fuel use exceeds 50 percent.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with modification that the Secretary is to propose options for 
implementing exemptions from tax for fuel used in non-
transportation uses, but only if the Secretary determines such 
exemptions are administratively feasible, for the following: 
(1) mobile machinery whose nonpropulsive fuel use exceeds 50 
percent and (2) any highway vehicle that consumes fuel for both 
transportation- and nontransportation-related equipment, using 
a single motor. With respect to item (2), it is intended that 
the Secretary take into consideration such factors as whether 
the fuel use for non-transportation equipment by the vehicle 
operator is significant both relative to transportation-related 
fuel consumption of the vehicle and relative to the vehicle 
operator's business. There may be significant non- 
transportation use of taxed fuel even if such use is small 
relative to the vehicle's transportation use, if the vehicle is 
used extensively. Also with respect to item (2), it is intended 
that the Secretary take into account variations in fuel use 
among the different types of vehicles, such as concrete mixers, 
refuse collection vehicles, tow trucks, mobile drills, and 
other vehicles that the Secretary identifies.

  H. Tax-Exempt Financing of Highway Projects and Rail-Truck Transfer 
Facilities (sec. 5308 of the Senate amendment and sec. 142 of the Code)

                              PRESENT LAW

Tax-exempt bonds
            In general
      Interest on bonds issued by State and local governments 
generally is excluded from gross income for Federal income tax 
purposes if the proceeds of the bonds are used to finance 
direct activities of these governmental units or if the bonds 
are repaid with revenues of the governmental units. Interest on 
State or local bonds to finance activities of private persons 
(``private activity bonds'') is taxable unless a specific 
exception is contained in the Code (or in a non-Code provision 
of a revenue Act). The term ``private person'' generally 
includes the Federal government and all other individuals and 
entities other than States or local governments.
            Qualified private activity bonds
      Private activity bonds are eligible for tax-exemption if 
issued for certain purposes permitted by the Code (``qualified 
private activity bonds''). The definition of a qualified 
private activity bond includes an exempt facility bond, or 
qualified mortgage, veterans' mortgage, small issue, 
redevelopment, 501(c)(3), or student loan bond.\94\ The 
definition of exempt facility bond includes bonds issued to 
finance certain transportation facilities (airports, ports, 
mass commuting, and high-speed intercity rail facilities); low-
income residential rental property; privately owned and/or 
operated utility facilities (sewage, water, solid waste 
disposal, and local district heating and cooling facilities, 
certain private electric and gas facilities, and hydroelectric 
dam enhancements); public/private educational facilities; and, 
qualified green building/sustainable design projects.\95\
---------------------------------------------------------------------------
    \94\Sec. 141(e).
    \95\Sec. 142(a).
---------------------------------------------------------------------------
      Issuance of most qualified private activity bonds is 
subject (in whole or in part) to annual State volume 
limitations.\96\ Exceptions are provided for bonds for certain 
governmentally owned facilities (airports, ports, high-speed 
intercity rail, and solid waste disposal) and bonds which are 
subject to separate local, State, or national volume limits 
(public/private educational facilities, enterprise zone 
facility bonds, and qualified green building/sustainable design 
projects).
---------------------------------------------------------------------------
    \96\Sec. 146.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment establishes new categories of exempt 
facility bonds: bonds issued to finance ``qualified highway 
facilities'' and bonds issued to finance ``qualified surface 
freight transfer facilities'' (collectively ``qualified highway 
or surface freight transfer facilities''). Under the provision, 
a qualified highway facility is any surface transportation or 
international bridge or tunnel project (for which an 
international entity authorized under Federal or State law is 
responsible) which receives Federal assistance under title 23 
of the United States Code (relating to Highways). A qualified 
surface freight transfer facility is a facility for the 
transfer of freight from truck to rail or rail to truck which 
receives Federal assistance under title 23 or title 49 of the 
United States Code (relating to Transportation).
      Under the provision, bonds issued to finance qualified 
highway or surface freight transfer facilities are not subject 
to the State volume limitations. Rather, there is an annual 
limitation on the aggregate amount of bonds that may be issued 
to finance such facilities for each of the calendar years 2005 
through 2015, as follows: $130 million for 2005; $750 million 
for each of the years 2006, 2007, 2008, and 2009; $1.87 billion 
for 2010; $2 billion for each of the years 2011, 2012, 2013, 
2014, and 2015. The Secretary of Transportation may allocate 
the annual bond authority among qualified highway or surface 
freight transfer facilities in such manner as the Secretary of 
Transportation determines appropriate. The authority to issue 
qualified highway or surface freight transfer facility bonds 
terminates after December 31, 2015.
      The Senate amendment requires the proceeds of qualified 
highway or surface freight transfer facility bonds to be spent 
on qualified projects within five years from the date of 
issuance of such bonds. Proceeds that remain unspent after five 
years must be used to redeem outstanding bonds. However, the 
provision authorizes the Secretary of the Treasury (or his 
delegate) to extend the five-year period if the issuer 
establishes that the need for the extension is appropriate and 
due to circumstances not within the control of the issuer.
      Effective date.--The Senate amendment applies to bonds 
issued after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
provision with modifications. The conference agreement 
eliminates the limitation on the aggregate amount of qualified 
highway or surface freight transfer facility bonds that may be 
issued in each of the calendar years 2005 through 2015. The 
Secretary of Transportation is authorized to allocate a total 
of $15 billion of issuance authority to qualified highway or 
surface freight transfer facilities in such manner as the 
Secretary determines appropriate. The conference agreement also 
clarifies that bonds are not treated as qualified highway or 
surface freight transfer facility bonds unless the aggregate 
amount of bonds issued with respect to qualified facilities 
does not exceed the amount of authority allocated to such 
facilities by the Secretary of Transportation. However, the 
aggregate limitation on bonds that may be issued does not apply 
to the ``current refunding'' of qualified highway or surface 
freight transfer facility bonds. Bonds are treated as a current 
refunding for this purpose if: (1) the average maturity date of 
the refunding bond is not later than the average maturity date 
of the refunded bonds; (2) the amount of the refunding bond 
does not exceed the outstanding amount of the refunded bond, 
and (3) the refunded bond is redeemed not later than 90 days 
after the date of the issuance of the refunding bond.
      The conference agreement on this provision is not 
intended to expand the scope of any Federal requirement beyond 
its application under present law and does not broaden the 
application of any Federal requirement under present law in 
Title 49.
I. Tax Treatment of State Ownership of Railroad Real Estate Investment 
        Trust (sec. 5309 of the Senate amendment and secs. 103, 115, 
        336, and 337 of the Code)

                              PRESENT LAW

      A real estate investment trust (``REIT'') is an electing 
entity that is engaged primarily in passive real estate 
activities (as specifically defined) and that, among other 
requirements, must have at least 100 shareholders. If a 
qualified entity elects REIT status, it can pay little or no 
corporate level tax, since a REIT is allowed a deduction for 
amounts distributed to its shareholders and is required to 
distribute at least 90 percent of its income to shareholders 
annually.
      If an entity does not qualify to be treated as a REIT, it 
would generally be treated as a regular corporation subject to 
corporate level tax on its income under subchapter C and 
section 11 of the Code. Such a corporation can elect to be 
taxed as a partnership or disregarded entity under Treasury 
regulations. However, if it made such an election, the 
corporation would be treated as if it had liquidated and 
distributed its assets to shareholders, generally resulting in 
corporate-level tax on the excess of the fair market value over 
the basis of corporate assets.\97\ A corporation that itself 
becomes a tax-exempt entity also must pay corporate tax on the 
excess of the fair market value over the basis of its 
assets.\98\
---------------------------------------------------------------------------
    \97\Sec. 336. An exception to this gain recognition applies to 
certain liquidations into a corporation that owns 80 percent of the 
liquidating entity and that is not itself tax-exempt. Sec. 337.
    \98\Treas. Reg. sec. 1.337(d)-4(a)(2).
---------------------------------------------------------------------------
      A State or local government is not subject to Federal 
income tax on income that accrues to the State or any political 
subdivision thereof and that is derived from any public utility 
or the exercise of any activity that is an essential 
governmental function.\99\
---------------------------------------------------------------------------
    \99\Sec. 115.
---------------------------------------------------------------------------
      Interest on a State and local bond is excluded from gross 
income, with certain exceptions.\100\ Special rules are also 
provided as requirements for tax exemption for State and local 
bonds.\101\ State and local bonds can be classified by the type 
of entity using the proceeds as either governmental or private 
activity bonds. In general, bonds are governmental bonds if the 
proceeds of the bonds are used to finance direct activities of 
governmental entities or if the bonds are repaid with revenues 
of governmental entities. Private activity bonds are bonds with 
respect to which a State or local government serves as a 
conduit providing financing to private businesses or 
individuals. The exclusion from income for State and local 
bonds does not apply to private activity bonds unless the bonds 
are issued for certain purposes permitted by the Code. In 
addition, both governmental and private activity bonds must 
satisfy applicable rules provided for in the Code as a 
condition of tax exemption.\102\
---------------------------------------------------------------------------
    \100\Sec. 103.
    \101\Secs. 141-150.
    \102\Secs. 141-150.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, the income of a qualified 
corporation that is derived from its railroad transportation 
and economic development activities, that constitute 
substantially all of its activities (as described below), is 
treated as accruing to the State for purposes of section 115, 
to the extent such activities are of a type which are an 
essential governmental function under section 115 of present 
law. For purposes of the provision, a qualified corporation is 
a corporation which is a REIT on the date of enactment and 
which is a non-operating Class III railroad that becomes 100 
percent owned by a State after December 31, 2003 and before 
December 31, 2006. Moreover, substantially all activities of 
the corporation must consist of the ownership, leasing, and 
operation by such corporation of facilities, equipment, and 
other property used by the corporation or other persons for 
railroad transportation and for economic development for the 
benefit of the State and its citizens.
      Under the Senate amendment, no gain or loss shall be 
recognized from the deemed conversion of such a REIT to such a 
qualified corporation and no change in the basis of the 
property of the entity shall occur.
      Also, any obligation issued by a qualified corporation 
described above is treated as an obligation of a State for 
purposes of applying the tax exempt bond provisions if 95 
percent of the net proceeds of such obligation are to be used 
to provide for the acquisition, construction, or improvement of 
railroad transportation infrastructure (including railroad 
terminal facilities). In addition, such an obligation shall not 
be treated as a private activity bond solely by reason of the 
ownership or use of such railroad transportation infrastructure 
by the corporation. All other present-law provisions relating 
to tax exempt bonds continue to apply to and govern bonds 
issued by the corporation. For example, the use by a private 
business of railroad property financed with the proceeds of 
bonds issued by a qualified corporation may cause such bonds to 
be taxable private activity bonds.
      Effective date.--The Senate amendment applies on and 
after the date a State becomes the owner of all the outstanding 
stock of a qualified corporation through action of such 
corporation's board of directors, provided that the State 
becomes the owner of all the voting stock of the corporation on 
or before December 31, 2003 and becomes the owner of all the 
outstanding stock of the corporation on or before December 31, 
2006.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

 J. Incentives for Installation of Alternative Fuel Refueling Property 
               (secs. 5310 and 2010 of Senate amendment)

                              PRESENT LAW

      Certain costs of qualified clean-fuel vehicle refueling 
property may be expensed and deducted when such property is 
placed in service (sec. 179A). Up to $100,000 of such property 
at each location owned by the taxpayer may be expensed with 
respect to that location. Natural gas, liquefied natural gas, 
liquefied petroleum gas, hydrogen, electricity and any other 
fuel at least 85 percent of which is methanol, ethanol, or any 
other alcohol or ether comprise clean-burning fuels.
      The deduction is unavailable for property placed in 
service after December 31, 2006.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provision permits taxpayers to claim 
a 50-percent credit for the cost of installing clean-fuel 
vehicle refueling property to be used in a trade or business of 
the taxpayer or installed at the principal residence of the 
taxpayer. In the case of retail clean-fuel vehicle refueling 
property installed as part of the taxpayer's business the 
allowable credit may not exceed $30,000. In the case of 
residential clean-fuel vehicle refueling property the allowable 
credit may not exceed $1,000.
      Under the provision clean fuels are any fuel at least 85 
percent of the volume of which consists of ethanol, natural 
gas, compressed natural gas, liquefied natural gas, and 
hydrogen.
      The taxpayer's basis in the property is reduced by the 
amount of the credit and the taxpayer may not claim deductions 
under section 179A with respect to property for which the 
credit is claimed. In the case of refueling property installed 
on property owned or used by a tax-exempt person, the taxpayer 
that installs the property may claim the credit. To be eligible 
for the credit, the property must be placed in service before 
January 1, 2010. The credit allowable in the taxable year 
cannot exceed the difference between the taxpayer's regular tax 
(reduced by certain other credits) and the taxpayer's tentative 
minimum tax. The taxpayer may carry forward unused credits for 
20 years.
      Effective date.--The Senate amendment is effective for 
property placed in service after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

   K. Modify Recapture of Section 197 Amortization (sec. 5311 of the 
                           Senate amendment)

                              PRESENT LAW

      Taxpayers are entitled to recover the cost of amortizable 
section 197 intangibles using the straight-line method of 
amortization over a uniform life of fifteen years.\103\ With 
certain exceptions, amortizable section 197 intangibles 
generally are purchased intangibles held by a taxpayer in the 
conduct of a business.\104\
---------------------------------------------------------------------------
    \103\Sec. 197(a).
    \104\Sec. 197(c).
---------------------------------------------------------------------------
      Gain on the sale of depreciable property must be 
recaptured as ordinary income to the extent of depreciation 
deductions previously claimed,\105\ and the recapture amount is 
computed separately for each item of property. Section 197 
intangibles, because they are treated as property of a 
character subject to the allowance for depreciation,\106\ are 
subject to these recapture rules.
---------------------------------------------------------------------------
    \105\Sec. 1245.
    \106\Sec. 197(f)(7).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, if multiple section 197 
intangibles are sold (or otherwise disposed of) in a single 
transaction or series of transactions, the seller must 
calculate recapture as if all of the section 197 intangibles 
were a single asset. Thus, any gain on the sale (or other 
disposition) of the intangibles is recaptured as ordinary 
income to the extent of ordinary depreciation deductions 
previously claimed on any of the section 197 intangibles.
      The following example illustrates present law and the 
Senate amendment:
      Example.--In year 1, a taxpayer acquires two section 197 
intangible assets for a total of $45. Asset A is assigned a 
cost basis of $15 and asset B is assigned a cost basis of $30. 
The allocation is irrelevant for amortization purposes, as the 
taxpayer will be entitled to a total of $3 per year ($45 
divided by 15 years).
      In year 6, the basis of A is $10 and the basis of B is 
$20. Taxpayer sells the assets for an aggregate sale price of 
$45, resulting in gain of $15. The character of this gain 
depends on the recapture amount, which depends in turn on the 
relative sales prices of the individual assets. Taxpayer has 
claimed $5 of amortization, and therefore has $5 of recapture 
potential, with respect to A. Taxpayer has claimed $10 of 
amortization, and therefore has $10 of recapture potential, 
with respect to B.
      Under present law, if the sale proceeds are allocated $15 
to A and $30 to B, the gain on assets A and B will be $5 and 
$10, respectively. These amounts match the recapture potential 
for each asset, so the full amount of the gain will be 
recaptured as ordinary income. However, if the sale proceeds 
instead are allocated $25 to A and $20 to B, the full $15 gain 
will be recognized with respect to A, and only $5 (full 
recapture potential with respect to A) will be recaptured as 
ordinary income. The remaining $10 of gain attributable to A 
will be treated as capital gain. No gain (and thus no 
recapture) will be recognized with respect to Asset B, and only 
$5 of the $15 recapture potential is recognized.
      Under the Senate amendment, the taxpayer calculates 
recapture as if assets A and B were a single asset. For 
purposes of the calculation, the proceeds are $45 and the gain 
is $15. Because a total of $15 of amortization has been claimed 
with respect to assets A and B, the full $15 gain is recaptured 
as ordinary income.
      Effective date.--The Senate amendment is effective for 
dispositions of property after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

 L. Diesel Fuel Tax Evasion Report (sec. 5312 of the Senate amendment)

                              PRESENT LAW

      An excise tax is imposed upon (1) the removal of any 
taxable fuel from a refinery or terminal, (2) the entry of any 
taxable fuel into the United States, or (3) the sale of any 
taxable fuel to any person who is not registered with the IRS 
to receive untaxed fuel, unless there was a prior taxable 
removal or entry.\107\ The tax does not apply to any removal or 
entry of taxable fuel transferred in bulk by pipeline or vessel 
to a terminal or refinery if the person removing or entering 
the taxable fuel, the operator of such pipeline or vessel, and 
the operator of such terminal or refinery are registered with 
the Secretary.\108\
---------------------------------------------------------------------------
    \107\Sec. 4081(a)(1).
    \108\Sec. 4081(a)(1)(B).
---------------------------------------------------------------------------
      Diesel fuel and kerosene that is to be used for a 
nontaxable purpose will not be taxed upon removal from the 
terminal if it is dyed to indicate its nontaxable purpose.\109\ 
In addition to requirement that fuel be dyed, the Secretary has 
the authority to prescribe marking requirements for diesel fuel 
and kerosene destined for a nontaxable use.\110\ The Secretary 
has not prescribed any marking requirements.
---------------------------------------------------------------------------
    \109\Sec. 4082(a)(1) and (2).
    \110\Sec. 4082(a)(3).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment requires the Commissioner of the IRS 
to report on the availability of new technologies that can be 
employed to enhance the collections of the excise tax on diesel 
fuel and the plans of the IRS to employ such technologies. The 
report is to be submitted within 360 days from the date of 
enactment to the Senate Committees on Finance and Environment 
and Public Works, and the House Committees on Ways and Means 
and Transportation and Infrastructure.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
except the conference agreement requires the report to contain 
certain additional information regarding the use of forensic or 
chemical molecular markers. Specifically, the conference 
agreement requires the report to cover the availability of 
forensic or chemical molecular markers, in addition to other 
technologies, to enhance collections of the excise tax on 
diesel fuel and the plans of the Internal Revenue Service to 
employ such technologies. The report must also cover the design 
of three tests: (1) the design of a test to place forensic or 
chemical molecular markers in any excluded liquid as that term 
is defined in Treasury regulations; (2) the design of a test, 
in consultation with the Department of Defense, to place 
forensic or chemical molecular markers in all nonstrategic bulk 
fuel deliveries of diesel fuel to the military, and (3) the 
design of a test to place forensic or chemical molecular 
markers in all diesel fuel bound for export utilizing the Gulf 
of Mexico.
      Effective date.--The provision is effective on the date 
of enactment.

 M. Leaking Underground Storage Tank Trust Fund (sec. 9508 of the Code)

                              PRESENT LAW

Leaking Underground Storage Tank Trust Fund
      The Code imposes an excise tax, generally at a rate of 
0.1 cents per gallon, on gasoline, diesel, kerosene, and 
special motor fuels (other than liquefied petroleum gas and 
liquefied natural gas).\111\ The taxes are deposited in the 
Leaking Underground Storage Tank (``LUST'') Trust Fund. The tax 
expires on October 1, 2005.
---------------------------------------------------------------------------
    \111\For qualified methanol and ethanol fuel the rate is 0.05 cents 
per gallon (sec. 4041(b)(2)(A)(ii)). Qualified methanol or ethanol fuel 
is any liquid at least 85 percent of which consists of methanol, 
ethanol or other alcohol produced from coal (including peat) (sec. 
4041(b)(2)(B)).
---------------------------------------------------------------------------
      Amounts in the LUST Trust Fund are available, subject to 
appropriation, only for purposes of making expenditures to 
carry out section 9003(h) of the Solid Waste Disposal Act as in 
effect on the date of enactment of the Superfund Amendments and 
Reauthorization Act of 1986.
Highway Trust Fund
      The Highway Trust Fund provisions of the Code contain a 
special enforcement provision to prevent expenditure of Highway 
Trust Fund monies for purposes not authorized in section 9503 
or a revenue Act.\112\ If such unapproved expenditures occur, 
no further excise tax receipts will be transferred to the 
Highway Trust Fund. Rather, the taxes will continue to be 
imposed with receipts being retained in the General Fund. This 
enforcement provision provides specifically that it applies not 
only to unauthorized expenditures under the current Code 
provisions, but also to expenditures pursuant to future 
legislation that does not amend section 9503's expenditure 
authorization provisions or otherwise authorize the expenditure 
as part of a revenue Act.
---------------------------------------------------------------------------
    \112\Sec. 9503(b)(6).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement adds to the Code's LUST Trust 
Fund provisions a special enforcement provision similar to that 
applicable to the Highway Trust Fund to prevent expenditure of 
LUST Trust Fund monies for purposes not authorized by the Code 
or in a revenue Act.
      Effective date.--The provision is effective on the date 
of enactment.

                         N. Revenue Provisions

1. Treatment of contingent payment convertible debt instruments (sec. 
        5501 of the Senate amendment)

                              PRESENT LAW

      Under present law, a taxpayer generally deducts the 
amount of interest paid or accrued within the taxable year on 
indebtedness issued by the taxpayer. In the case of original 
issue discount (``OID''), the issuer of a debt instrument 
generally accrues and deducts, as interest, the OID over the 
life of the obligation, even though the amount of the OID may 
not be paid until the maturity of the instrument.
      The amount of OID with respect to a debt instrument is 
equal to the excess of the stated redemption price at maturity 
over the issue price of the debt instrument. The stated 
redemption price at maturity includes all amounts that are 
payable on the debt instrument by maturity. The amount of OID 
with respect to a debt instrument is allocated over the life of 
the instrument through a series of adjustments to the issue 
price for each accrual period. The adjustment to the issue 
price is determined by multiplying the adjusted issue price 
(i.e., the issue price increased or decreased by adjustments 
before the accrual period) by the instrument's yield to 
maturity, and then subtracting any payments on the debt 
instrument (other than non-OID stated interest) during the 
accrual period. Thus, in order to compute the amount of OID and 
the portion of OID allocable to a particular period, the stated 
redemption price at maturity and the time of maturity must be 
known. Issuers of debt instruments with OID accrue and deduct 
the amount of OID as interest expense in the same manner as the 
holders of those instruments accrue and include in gross income 
the amount of OID as interest income.
      Treasury regulations provide special rules for 
determining the amount of OID allocated to a period for certain 
debt instruments that provide for one or more contingent 
payments of principal or interest.\113\ The regulations provide 
that a debt instrument does not provide for contingent payments 
merely because it provides for an option to convert the debt 
instrument into the stock of the issuer, into the stock or debt 
of a related party, or into cash or other property in an amount 
equal to the approximate value of that stock or debt.\114\ The 
regulations also provide that a payment is not a contingent 
payment merely because of a contingency that, as of the issue 
date of the debt instrument, is either remote or 
incidental.\115\
---------------------------------------------------------------------------
    \113\Treas. Reg. sec. 1.1275-4.
    \114\Treas. Reg. sec. 1.1275-4(a)(4).
    \115\Treas. Reg. sec. 1.1275-4(a)(5).
---------------------------------------------------------------------------
      In the case of contingent payment debt instruments that 
are issued for money or publicly traded property,\116\ the 
regulations provide that interest on a debt instrument must be 
taken into account (as OID) whether or not the amount of any 
payment if fixed or determinable in the taxable year. The 
amount of OID that is taken into account for each accrual 
period is determined by constructing a comparable yield and a 
projected payment schedule for the debt instrument, and then 
accruing the OID on the basis of the comparable yield and 
projected payment schedule by applying rules similar to those 
for accruing OID on a noncontingent debt instrument (the 
``noncontingent bond method''). If the actual amount of a 
contingent payment is not equal to the projected amount, 
appropriate adjustments are made to reflect the difference. The 
comparable yield for a debt instrument is the yield at which 
the issuer would be able to issue a fixed-rate noncontingent 
debt instrument with terms and conditions similar to those of 
the contingent payment debt instrument (i.e., the comparable 
fixed-rate debt instrument), including the level of 
subordination, term, timing of payments, and general market 
conditions.\117\
---------------------------------------------------------------------------
    \116\Treas. Reg. sec. 1.1275-4(b).
    \117\Treas. Reg. sec. 1.1275-4(b)(4)(i)(A).
---------------------------------------------------------------------------
      Certain debt instruments, often referred to as 
``contingent convertible'' debt instruments, are convertible 
into the common stock of the issuer and also provide for 
contingent payments (other than the conversion feature). The 
IRS has stated that the noncontingent bond method applies in 
computing the accrual of OID on these contingent convertible 
debt instruments.\118\ In applying the noncontingent bond 
method, the IRS has stated that the comparable yield for a 
contingent convertible debt instrument is determined by 
reference to a comparable fixed-rate nonconvertible debt 
instrument, and the projected payment schedule is determined by 
treating the issuer stock received upon a conversion of the 
debt instrument as a contingent payment.
---------------------------------------------------------------------------
    \118\Rev. Rul. 2002-31, 2002-1 C.B. 1023.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The provision provides that, in the case of a contingent 
convertible debt instrument,\119\ any Treasury regulations 
which require OID to be determined by reference to the 
comparable yield of a noncontingent fixed-rate debt instrument 
shall be applied as requiring that such comparable yield be 
determined by reference to a noncontingent fixed-rate debt 
instrument which is convertible into stock. For purposes of 
applying the provision, the comparable yield shall be 
determined without taking into account the yield resulting from 
the conversion of a debt instrument into stock. Thus, the 
noncontingent bond method in the Treasury regulations shall be 
applied in a manner such that the comparable yield for 
contingent convertible debt instruments shall be determined by 
reference to comparable noncontingent fixed-rate convertible 
(rather than nonconvertible) debt instruments.
---------------------------------------------------------------------------
    \119\Under the provision, a contingent convertible debt instrument 
is defined as a debt instrument that: (1) is convertible into stock of 
the issuing corporation, or a corporation in control of, or controlled 
by, the issuing corporation; and (2) provides for contingent payments.
---------------------------------------------------------------------------
      Effective date.--The Senate amendment is effective for 
debt instruments issued on or after date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
2. Frivolous tax submissions (sec. 5502 of the Senate amendment)

                              PRESENT LAW

      The Code provides that an individual who files a 
frivolous income tax return is subject to a penalty of $500 
imposed by the IRS.\120\ The Code also permits the Tax 
Court\121\ to impose a penalty of up to $25,000 if a taxpayer 
has instituted or maintained proceedings primarily for delay or 
if the taxpayer's position in the proceeding is frivolous or 
groundless.\122\
---------------------------------------------------------------------------
    \120\Sec. 6702.
    \121\Because the Tax Court generally is the only pre-payment forum 
available to taxpayers, it hears most of the frivolous, groundless, or 
dilatory arguments raised in tax cases.
    \122\Sec. 6673(a).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment modifies the IRS-imposed penalty by 
increasing the amount of the penalty to up to $5,000 and by 
applying it to all taxpayers and to all types of Federal taxes.
      The Senate amendment also modifies present law with 
respect to certain submissions that raise frivolous arguments 
or that are intended to delay or impede tax administration. The 
submissions to which this provision applies are requests for a 
collection due process hearing, installment agreements, offers-
in-compromise, and taxpayer assistance orders. First, the 
Senate amendment permits the IRS to dismiss such requests. 
Second, the Senate amendment permits the IRS to impose a 
penalty of up to $5,000 for such requests, unless the taxpayer 
withdraws the request after being given an opportunity to do 
so.
      The Senate amendment requires the IRS to publish a list 
of positions, arguments, requests, and submissions determined 
to be frivolous for this purpose.
      Effective date.--The Senate amendment is effective with 
respect to submissions made and issues raised after the date on 
which the Secretary first prescribes the required list of 
frivolous positions.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
3. Increase in certain criminal penalties (sec. 5503 of the Senate 
        amendment)

                              PRESENT LAW

Attempt to evade or defeat tax
      In general, section 7201 imposes a criminal penalty on 
persons who willfully attempt to evade or defeat any tax 
imposed by the Code. Upon conviction, the Code provides that 
the penalty is up to $100,000 or imprisonment of not more than 
five years (or both). In the case of a corporation, the Code 
increases the monetary penalty to a maximum of $500,000.
Willful failure to file return, supply information, or pay tax
      In general, section 7203 imposes a criminal penalty on 
persons required to make estimated tax payments, pay taxes, 
keep records, or supply information under the Code who 
willfully fails to do so. Upon conviction, the Code provides 
that the penalty is up to $25,000 or imprisonment of not more 
than one year (or both). In the case of a corporation, the Code 
increases the monetary penalty to a maximum of $100,000.
Fraud and false statements
      In general, section 7206 imposes a criminal penalty on 
persons who make fraudulent or false statements under the Code. 
Upon conviction, the Code provides that the penalty is up to 
$100,000 or imprisonment of not more than three years (or 
both). In the case of a corporation, the Code increases the 
monetary penalty to a maximum of $500,000.
Uniform sentencing guidelines
      Under the uniform sentencing guidelines established by 18 
U.S.C. sec. 3571, a defendant found guilty of a criminal 
offense is subject to a maximum fine that is the greatest of: 
(a) the amount specified in the underlying provision, (b) for a 
felony\123\ $250,000 for an individual or $500,000 for an 
organization, or (c) twice the gross gain if a person derives 
pecuniary gain from the offense. This Title 18 provision 
applies to all criminal provisions in the United States Code, 
including those in the Internal Revenue Code. For example, for 
an individual, the maximum fine under present law upon 
conviction of violating section 7206 is $250,000 or, if 
greater, twice the amount of gross gain from the offense.
---------------------------------------------------------------------------
    \123\Section 7206 provides that the making of fraudulent or false 
statements is a felony. In addition, this offense is a felony pursuant 
to the classification guidelines of 18 U.S.C. sec. 3559(a)(5).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

Attempt to evade or defeat tax
      The Senate amendment increases the criminal penalty under 
section 7201 of the Code for individuals to $500,000 and for 
corporations to $1,000,000. The provision increases the maximum 
prison sentence to ten years.
Willful failure to file return, supply information, or pay tax
      The Senate amendment increases the criminal penalty under 
section 7203 of the Code from a misdemeanor to a felony for 
aggravated failures to file. Under the provision, an aggravated 
failure to file is any case in which the taxpayer fails to file 
returns for three or more consecutive years and the aggregated 
tax liability during such years is $100,000 or greater. The 
provision imposes a penalty for an aggravated failure to file 
up to $500,000 for individuals and up to $1,000,000 for 
corporations. The provision also imposes a maximum prison 
sentence of ten years.
      In misdemeanor cases, the provision increases the 
criminal penalty under section 7203 of the Code for individuals 
to $50,000.
Fraud and false statements
      The Senate amendment increases the criminal penalty under 
section 7206 of the Code for individuals to $500,000 and for 
corporations to $1,000,000. The provision increases the maximum 
prison sentence to five years. The provision also provides that 
in no event shall the amount of the monetary penalty under this 
provision be less than the amount of the underpayment or 
overpayment attributable to fraud.
      Effective date.--The Senate amendment is effective for 
actions and failures to act occurring after the date of 
enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

4. Doubling of certain penalties, fines, and interest on underpayments 
        related to certain offshore financial arrangements (sec. 5504 
        of the Senate amendment)

                              PRESENT LAW

In general

      The Code contains numerous civil penalties, such as the 
delinquency, accuracy-related, fraud, and assessable penalties. 
These civil penalties are in addition to any interest that may 
be due as a result of an underpayment of tax. If all or any 
part of a tax is not paid when due, the Code imposes interest 
on the underpayment, which is assessed and collected in the 
same manner as the underlying tax and is subject to the 
respective statutes of limitations for assessment and 
collection.

Delinquency penalties

      Failure to file.--Under present law, a taxpayer who fails 
to file a tax return on a timely basis is generally subject to 
a penalty equal to five percent of the net amount of tax due 
for each month that the return is not filed, up to a maximum of 
five months or 25 percent. An exception from the penalty 
applies if the failure is due to reasonable cause. The net 
amount of tax due is the excess of the amount of the tax 
required to be shown on the return over the amount of any tax 
paid on or before the due date prescribed for the payment of 
tax.
      Failure to pay.--Taxpayers who fail to pay their taxes 
are subject to a penalty of 0.5 percent per month on the unpaid 
amount, up to a maximum of 25 percent. If a penalty for failure 
to file and a penalty for failure to pay tax shown on a return 
both apply for the same month, the amount of the penalty for 
failure to file for such month is reduced by the amount of the 
penalty for failure to pay tax shown on a return. If a return 
is filed more than 60 days after its due date, then the penalty 
for failure to pay tax shown on a return may not reduce the 
penalty for failure to file below the lesser of $100 or 100 
percent of the amount required to be shown on the return. For 
any month in which an installment payment agreement with the 
IRS is in effect, the rate of the penalty is half the usual 
rate (0.25 percent instead of 0.5 percent), provided that the 
taxpayer filed the tax return in a timely manner (including 
extensions).
      Failure to make timely deposits of tax.--The penalty for 
the failure to make timely deposits of tax consists of a four-
tiered structure in which the amount of the penalty varies with 
the length of time within which the taxpayer corrects the 
failure. A depositor is subject to a penalty equal to two 
percent of the amount of the underpayment if the failure is 
corrected on or before the date that is five days after the 
prescribed due date. A depositor is subject to a penalty equal 
to five percent of the amount of the underpayment if the 
failure is corrected after the date that is five days after the 
prescribed due date but on or before the date that is 15 days 
after the prescribed due date. A depositor is subject to a 
penalty equal to 10 percent of the amount of the underpayment 
if the failure is corrected after the date that is 15 days 
after the due date but on or before the date that is 10 days 
after the date of the first delinquency notice to the taxpayer 
(under sec. 6303). Finally, a depositor is subject to a penalty 
equal to 15 percent of the amount of the underpayment if the 
failure is not corrected on or before the date that is 10 days 
after the date of the day on which notice and demand for 
immediate payment of tax is given in cases of jeopardy.
      An exception from the penalty applies if the failure is 
due to reasonable cause. In addition, the Secretary may waive 
the penalty for an inadvertent failure to deposit any tax by 
specified first-time depositors.

Accuracy-related penalties

      In general.--The accuracy-related penalties are imposed 
at a rate of 20 percent of the portion of any underpayment that 
is attributable, in relevant part, to (1) negligence, (2) any 
substantial understatement of income tax, (3) any substantial 
valuation misstatement, and (4) any reportable transaction 
understatement. The penalty for a substantial valuation 
misstatement is doubled for certain gross valuation 
misstatements. In the case of a reportable transaction 
understatement for which the transaction is not disclosed, the 
penalty rate is 30 percent. These penalties are coordinated 
with the fraud penalty. This statutory structure operates to 
eliminate any stacking of the penalties.
      No penalty is to be imposed if it is shown that there was 
reasonable cause for an underpayment and the taxpayer acted in 
good faith, and in the case of a reportable transaction 
understatement the relevant facts of the transaction have been 
disclosed, there is or was substantial authority for the 
taxpayer's treatment of such transaction, and the taxpayer 
reasonably believed that such treatment was more likely than 
not the proper treatment.
      Negligence or disregard for the rules or regulations.--If 
an underpayment of tax is attributable to negligence, the 
negligence penalty applies only to the portion of the 
underpayment that is attributable to negligence. Negligence 
means any failure to make a reasonable attempt to comply with 
the provisions of the Code. Disregard includes any careless, 
reckless or intentional disregard of the rules or regulations.
      Substantial understatement of income tax.--Generally, an 
understatement is substantial if the understatement exceeds the 
greater of (1) 10 percent of the tax required to be shown on 
the return for the tax year or (2) $5,000. In determining 
whether a substantial understatement exists, the amount of the 
understatement is reduced by any portion attributable to an 
item if (1) the treatment of the item on the return is or was 
supported by substantial authority, or (2) facts relevant to 
the tax treatment of the item were adequately disclosed on the 
return or on a statement attached to the return.
      Substantial valuation misstatement.--A penalty applies to 
the portion of an underpayment that is attributable to a 
substantial valuation misstatement. Generally, a substantial 
valuation misstatement exists if the value or adjusted basis of 
any property claimed on a return is 200 percent or more of the 
correct value or adjusted basis. The amount of the penalty for 
a substantial valuation misstatement is 20 percent of the 
amount of the underpayment if the value or adjusted basis 
claimed is 200 percent or more but less than 400 percent of the 
correct value or adjusted basis. If the value or adjusted basis 
claimed is 400 percent or more of the correct value or adjusted 
basis, then the overvaluation is a gross valuation 
misstatement.
      Reportable transaction understatement.--A penalty applies 
to any item that is attributable to any listed transaction, or 
to any reportable transaction (other than a listed transaction) 
if a significant purpose of such reportable transaction is tax 
avoidance or evasion.\124\
---------------------------------------------------------------------------
    \124\A reportable transaction is any transaction with respect to 
which information is required to be included with a return or statement 
because, as determined under regulations prescribed under section 6011, 
such transaction is of a type which the Secretary determines as having 
a potential for tax avoidance or evasion. A listed transaction is a 
reportable transaction which is the same as, or substantially similar 
to, a transaction specifically identified by the Secretary as a tax 
avoidance transaction for purposes of section 6011. Sec. 6707A(c).
---------------------------------------------------------------------------
Fraud penalty
      The fraud penalty is imposed at a rate of 75 percent of 
the portion of any underpayment that is attributable to fraud. 
The accuracy-related penalty does not to apply to any portion 
of an underpayment on which the fraud penalty is imposed.
Assessable penalties
      In addition to the penalties described above, the Code 
imposes a number of additional penalties, including, for 
example, penalties for failure to file (or untimely filing of) 
information returns with respect to foreign trusts, and 
penalties for failure to disclose any required information with 
respect to a reportable transaction.
Interest provisions
      Taxpayers are required to pay interest to the IRS 
whenever there is an underpayment of tax. An underpayment of 
tax exists whenever the correct amount of tax is not paid by 
the last date prescribed for the payment of the tax. The last 
date prescribed for the payment of the income tax is the 
original due date of the return.
      Different interest rates are provided for the payment of 
interest depending upon the type of taxpayer, whether the 
interest relates to an underpayment or overpayment, and the 
size of the underpayment or overpayment. Interest on 
underpayments is compounded daily.
Offshore Voluntary Compliance Initiative
      In January 2003, Treasury announced the Offshore 
Voluntary Compliance Initiative (``OVCI'') to encourage the 
voluntary disclosure of previously unreported income placed by 
taxpayers in offshore accounts and accessed through credit card 
or other financial arrangements. A taxpayer had to comply with 
various requirements in order to participate in the OVCI, 
including sending a written request to participate in the 
program by April 15, 2003. This request was required to include 
information about the taxpayer, the taxpayer's introduction to 
the credit card or other financial arrangements, and the names 
of parties that promoted the transaction. Taxpayers entering 
into a closing agreement under the OVCI are not liable for 
civil fraud, the fraudulent failure to file penalty, or the 
civil information return penalties. The taxpayer will pay back 
taxes, interest, and certain accuracy-related and delinquency 
penalties.\125\
---------------------------------------------------------------------------
    \125\Rev. Proc. 2003-11, 2003-4 C.B. 311.
---------------------------------------------------------------------------
Voluntary disclosure policy
      A taxpayer's timely, voluntary disclosure of a 
substantial unreported tax liability has long been an important 
factor in deciding whether the taxpayer's case should 
ultimately be referred for criminal prosecution. The voluntary 
disclosure must be truthful, timely, and complete. The taxpayer 
must show a willingness to cooperate (as well as actual 
cooperation) with the IRS in determining the correct tax 
liability. The taxpayer must make good-faith arrangements with 
the IRS to pay in full the tax, interest, and any penalties 
determined by the IRS to be applicable. A voluntary disclosure 
does not guarantee immunity from prosecution. It creates no 
substantive or procedural rights for taxpayers.\126\
---------------------------------------------------------------------------
    \126\Internal Revenue News Release 2002-135, IR-2002-135 (December 
11, 2002).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment doubles the total amount of civil 
penalties, interest, and fines applicable to a taxpayer who 
underreported its Federal tax liability with respect to any 
item involving a transaction of a type that was, or would have 
been, within the scope of the OVCI, if the taxpayer did not 
enter into a closing agreement pursuant to the OVCI or 
otherwise voluntarily disclose to the IRS its participation in 
such a transaction. For example, current arrangements which are 
the same as, or substantially similar to, the employee leasing 
arrangements described in Notice 2003-22 would have been within 
the scope of the OVCI.\127\
---------------------------------------------------------------------------
    \127\2003-18 C.B. 851. Notice 2003-22 classified such arrangements 
as listed transactions.
---------------------------------------------------------------------------
      Under the Senate amendment, the determination of whether 
any civil penalty is to be imposed with respect to such a 
transaction (or underpayment attributable to such transaction) 
is made without regard to whether a return has been filed, 
whether there was reasonable cause for such underpayment, and 
whether the taxpayer acted in good faith. However, the 
Secretary is granted the authority to waive the application of 
the provision if the use of such offshore payment mechanisms is 
incidental to the transaction and, in the case of a trade or 
business, such use is conducted in the ordinary course of the 
trade or business engaged in by the taxpayer.
      The Secretary may retain an amount not to exceed 25 
percent of all amounts collected under this provision, to be 
used for IRS enforcement and collection activities. In 
addition, the Secretary must annually conduct a study and 
report to Congress on the implementation of this provision, 
including statistics on the number of taxpayers affected and the 
amounts of interest and penalties asserted, waived, and assessed.
      Effective date.--The Senate amendment generally is 
effective with respect to a taxpayer's open tax years on or 
after date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
5. Modification of coordination rules for controlled foreign 
        corporation and passive foreign investment company regimes 
        (sec. 5505 of the Senate amendment)

                              PRESENT LAW

      The United States employs a ``worldwide'' tax system, 
under which domestic corporations generally are taxed on all 
income, whether derived in the United States or abroad. Income 
earned by a domestic parent corporation from foreign operations 
conducted by foreign corporate subsidiaries generally is 
subject to U.S. tax when the income is distributed as a 
dividend to the domestic corporation. Until such repatriation, 
the U.S. tax on such income generally is deferred. However, 
certain anti-deferral regimes may cause the domestic parent 
corporation to be taxed on a current basis in the United States 
with respect to certain categories of passive or highly mobile 
income earned by its foreign subsidiaries, regardless of 
whether the income has been distributed as a dividend to the 
domestic parent corporation. The main anti-deferral regimes in 
this context are the controlled foreign corporation rules of 
subpart F\128\ and the passive foreign investment company 
rules.\129\ Deferral of U.S. tax is considered appropriate, on 
the other hand, with respect to most types of active business 
income earned abroad. A foreign tax credit generally is 
available to offset, in whole or in part, the U.S. tax owed on 
foreign-source income, whether earned directly by the domestic 
corporation, repatriated as an actual dividend, or included 
under one of the anti-deferral regimes.\130\
---------------------------------------------------------------------------
    \128\Secs. 951-964.
    \129\Secs. 1291-1298.
    \130\Secs. 901, 902, 960, and 1291(g).
---------------------------------------------------------------------------
      Subpart F,\131\ applicable to controlled foreign 
corporations and their shareholders, is the main anti-deferral 
regime of relevance to a U.S.-based multinational corporate 
group. A controlled foreign corporation generally is defined as 
any foreign corporation if U.S. persons own (directly, 
indirectly, or constructively) more than 50 percent of the 
corporation's stock (measured by vote or value), taking into 
account only those U.S. persons that own at least 10 percent of 
the stock (measured by vote only).\132\ Under the subpart F 
rules, the United States generally taxes the U.S. 10-percent 
shareholders of a controlled foreign corporation on their pro 
rata shares of certain income of the controlled foreign 
corporation (referred to as ``subpart F income''), without 
regard to whether the income is distributed to the 
shareholders.\133\
---------------------------------------------------------------------------
    \131\Secs. 951-964.
    \132\Secs. 951(b), 957, and 958.
    \133\Sec. 951(a).
---------------------------------------------------------------------------
      Subpart F income generally includes passive income and 
other income that is readily movable from one taxing 
jurisdiction to another. Subpart F income consists of foreign 
base company income,\134\ insurance income,\135\ and certain 
income relating to international boycotts and other violations 
of public policy.\136\ Foreign base company income consists of 
foreign personal holding company income, which includes passive 
income (e.g., dividends, interest, rents, and royalties), as 
well as a number of categories of non-passive income, including 
foreign base company sales income and foreign base company 
services income.\137\
---------------------------------------------------------------------------
    \134\Sec. 954.
    \135\Sec. 953.
    \136\Sec. 952(a)(3) through (5).
    \137\Sec. 954.
---------------------------------------------------------------------------
      In effect, the United States treats the U.S. 10-percent 
shareholders of a controlled foreign corporation as having 
received a current distribution out of the corporation's 
subpart F income. In addition, the U.S. 10-percent shareholders 
of a controlled foreign corporation are required to include 
currently in income for U.S. tax purposes their pro rata shares 
of the corporation's earnings invested in U.S. property.\138\
---------------------------------------------------------------------------
    \138\Secs. 951(a)(1)(B) and 956.
---------------------------------------------------------------------------
      The Tax Reform Act of 1986 established an additional 
anti-deferral regime, for passive foreign investment companies. 
A passive foreign investment company generally is defined as 
any foreign corporation if 75 percent or more of its gross 
income for the taxable year consists of passive income, or 50 
percent or more of its assets consists of assets that produce, 
or are held for the production of, passive income.\139\ 
Alternative sets of income inclusion rules apply to U.S. 
persons that are shareholders in a passive foreign investment 
company, regardless of their percentage ownership in the 
company. One set of rules applies to passive foreign investment 
companies that are ``qualified electing funds,'' under which 
electing U.S. shareholders currently include in gross income 
their respective shares of the company's earnings, with a 
separate election to defer payment of tax, subject to an 
interest charge, on income not currently received.\140\ A 
second set of rules applies to passive foreign investment 
companies that are not qualified electing funds, under which 
U.S. shareholders pay tax on certain income or gain realized 
through the company, plus an interest charge that is 
attributable to the value of deferral.\141\ A third set of 
rules applies to passive foreign investment company stock that 
is marketable, under which electing U.S. shareholders currently 
take into account as income (or loss) the difference between 
the fair market value of the stock as of the close of the 
taxable year and their adjusted basis in such stock (subject to 
certain limitations), often referred to as ``mark to 
market.''\142\
---------------------------------------------------------------------------
    \139\Sec. 1297.
    \140\Secs. 1293 through 1295.
    \141\Sec. 1291.
    \142\Sec. 1296.
---------------------------------------------------------------------------
      Under section 1297(e), which was enacted in 1997 to 
address the overlap of the passive foreign investment company 
rules and subpart F, a controlled foreign corporation generally 
is not also treated as a passive foreign investment company 
with respect to a U.S. shareholder of the corporation. This 
exception applies regardless of the likelihood that the U.S. 
shareholder would actually be taxed under subpart F in the 
event that the controlled foreign corporation earns subpart F 
income. Thus, even in a case in which a controlled foreign 
corporation's subpart F income would be allocated to a 
different shareholder under the subpart F allocation rules, a 
U.S. shareholder would still qualify for the exception from the 
passive foreign investment company rules under section 1297(e).

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment adds an exception to section 1297(e) 
for U.S. shareholders that face only a remote likelihood of 
incurring a subpart F inclusion in the event that a controlled 
foreign corporation earns subpart F income, thus preserving the 
potential application of the passive foreign investment company 
rules in such cases.
      Effective date.--The Senate amendment is effective for 
taxable years of controlled foreign corporations beginning 
after March 2, 2005, and for taxable years of U.S. shareholders 
in which or with which such taxable years of controlled foreign 
corporations end.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
6. Declaration by chief executive officer relating to Federal annual 
        corporate income tax return (sec. 5506 of the Senate amendment)

                              PRESENT LAW

      The Code requires that the income tax return of a 
corporation must be signed by either the president, the vice-
president, the treasurer, the assistant treasurer, the chief 
accounting officer, or any other officer of the corporation 
authorized by the corporation to sign the return.
      The Code also imposes a criminal penalty on any person 
who willfully signs any tax return under penalties of perjury 
that that person does not believe to be true and correct with 
respect to every material matter at the time of filing. If 
convicted, the person is guilty of a felony; the Code imposes a 
fine of not more than $100,000 ($500,000 in the case of a 
corporation) or imprisonment of not more than three years, or 
both, together with the costs of prosecution.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment requires that a corporation's 
Federal annual income tax return include a declaration signed 
under penalties of perjury by the chief executive officer of 
the corporation that the corporation has in place processes and 
procedures to ensure that the return complies with the Internal 
Revenue Code and that the CEO was provided reasonable assurance 
of the accuracy of all material aspects of the return. This 
declaration is part of the income tax return. The provision is 
in addition to the requirement of present law as to the signing 
of the income tax return itself. Because a CEO's duties 
generally do not require a detailed or technical understanding 
of the corporation's tax return, it is anticipated that this 
declaration of the CEO will be more limited in scope than the 
declaration of the officer required to sign the return itself.
      The provision provides that the Secretary of the Treasury 
shall prescribe the matters to which the declaration of the CEO 
applies. It is intended that the declaration help insure that 
the preparation and completion of the corporation's tax return 
be given an appropriate level of care. For example, it is 
anticipated that the CEO would declare that processes and 
procedures have been implemented to ensure that the return 
complies with the Code and all regulations and rules 
promulgated thereunder. Although appropriate processes and 
procedures can vary for each taxpayer depending on the size and 
nature of the taxpayer's business, in every case the CEO should 
be briefed on all material aspects of the corporation's tax 
return by the corporation's chief financial officer (or another 
person authorized to sign the return under present law).
      Under the Senate amendment, if the corporation does not 
have a chief executive officer, the IRS may designate another 
officer of the corporation; otherwise, no other person is 
permitted to sign the declaration. It is intended that the IRS 
issue general guidance, such as a revenue procedure, to: (1) 
address situations when a corporation does not have a chief 
executive officer; and (2) define who the chief executive 
officer is, in situations (for example) when the primary 
official bears a different title, when a corporation has 
multiple chief executive officers, or when the corporation is a 
foreign corporation and the CEO is not a U.S. resident.\143\ It 
is intended that, in every instance, the highest ranking 
corporate officer (regardless of title) sign this declaration.
---------------------------------------------------------------------------
    \143\With respect to foreign corporations, it is intended that the 
rules for signing this declaration generally parallel the present-law 
rules for signing the return. See Treas. Reg. sec. 1.6062-1(a)(3).
---------------------------------------------------------------------------
      The provision does not apply to the income tax returns of 
mutual funds;\144\ they are required to be signed as under 
present law.
---------------------------------------------------------------------------
    \144\The provision does, however, apply to the income tax returns 
of mutual fund management companies and advisors.
---------------------------------------------------------------------------
      Effective date.--The Senate amendment applies to Federal 
annual tax returns for taxable years ending after the date of 
enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
7. Grant Treasury regulatory authority to address foreign tax credit 
        transactions involving inappropriate separation of foreign 
        taxes from related foreign income (sec. 5507 of the Senate 
        amendment)

                              PRESENT LAW

      The United States employs a ``worldwide'' tax system, 
under which residents generally are taxed on all income, 
whether derived in the United States or abroad. In order to 
mitigate the possibility of double taxation arising from 
overlapping claims of the United States and a source country to 
tax the same item of income, the United States provides a 
credit for foreign income taxes paid or accrued, subject to 
several conditions and limitations.
      For purposes of the foreign tax credit, regulations 
provide that a foreign tax is treated as being paid by ``the 
person on whom foreign law imposes legal liability for such 
tax.''\145\ Thus, for example, if a U.S. corporation owns an 
interest in a foreign partnership, the U.S. corporation can 
claim foreign tax credits for the tax that is imposed on it as 
a partner in the foreign entity. This would be true under the 
regulations even if the U.S. corporation elected to treat the 
foreign entity as a corporation for U.S. tax purposes. In such 
a case, if the foreign entity does not meet the definition of a 
controlled foreign corporation or does not generate income that 
is subject to current inclusion under the rules of subpart F, 
the income generated by the foreign entity might never be 
reported on a U.S. return, and yet the U.S. corporation might 
take the position that it can claim credits for taxes imposed 
on that income. This is one example of how a taxpayer might 
attempt to separate foreign taxes from the related foreign 
income, and thereby attempt to claim a foreign tax credit under 
circumstances in which there is no threat of double taxation.
---------------------------------------------------------------------------
    \145\Treas. Reg. sec. 1.901-2(f)(1).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides regulatory authority for 
the Treasury Department to address transactions that involve 
the inappropriate separation of foreign taxes from the related 
foreign income in cases in which taxes are imposed on any 
person in respect of income of an entity. Regulations issued 
pursuant to this authority could provide for the disallowance 
of a credit for all or a portion of the foreign taxes, or for 
the allocation of the foreign taxes among the participants in 
the transaction in a manner more consistent with the economics 
of the transaction.
      Effective date.--The Senate amendment generally is 
effective for transactions entered into after the date of 
enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
8. Whistleblower reforms (sec. 5508 of the Senate amendment)

                              PRESENT LAW

      The Code authorizes the IRS to pay such sums as deemed 
necessary for: ``(1) detecting underpayments of tax; and (2) 
detecting and bringing to trial and punishment persons guilty 
of violating the internal revenue laws or conniving at the 
same.''\146\ Amounts are paid based on a percentage of tax, 
fines, and penalties (but not interest) actually collected 
based on the information provided. For specific information 
that caused the investigation and resulted in recovery, the IRS 
administratively has set the reward in an amount not to exceed 
15 percent of the amounts recovered. For information, although 
not specific, that nonetheless caused the investigation and was 
of value in the determination of tax liabilities, the reward is 
not to exceed 10 percent of the amount recovered. For 
information that caused the investigation, but had no direct 
relationship to the determination of tax liabilities, the 
reward is not to exceed one percent of the amount recovered. 
The reward ceiling is $10 million (for payments made after 
November 7, 2002), and the reward floor is $100. No reward will 
be paid if the recovery was so small as to call for payment of 
less than $100 under the above formulas. Both the ceiling and 
percentages can be increased with a special agreement. The Code 
permits the IRS to disclose return information pursuant to a 
contract for tax administration services.\147\
---------------------------------------------------------------------------
    \146\Sec. 7623.
    \147\Sec. 6103(n).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment reforms the reward program for 
individuals who provide information regarding violations of the 
tax laws to the Secretary. Generally, the provision establishes 
a reward floor of 15 percent of the collected proceeds 
(including penalties, interest, additions to tax and additional 
amounts) if the IRS moves forward with an administrative or 
judicial action based on information brought to the IRS's 
attention by an individual. The provision caps the available 
reward at 30 percent of the collected proceeds. The provision 
permits awards of lesser amounts (but no less than 10 percent) 
if the action was based principally on allegations (other than 
information provided by the individual) resulting from a 
judicial or administrative hearing, government report, hearing, 
audit, investigation, or from the news media.
      The Senate amendment creates a Whistleblower Office 
within the IRS to administer the reward program. The 
Whistleblower Office may seek assistance from the individual 
providing information or from his or her legal representative, 
and may reimburse the costs incurred by any legal 
representative out of the amount of the reward. To the extent 
the disclosure of returns or return information is required to 
render such assistance, the disclosure must be pursuant to an 
IRS tax administration contract.
      Effective date.--The Senate amendment is effective for 
information provided on or after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
9. Denial of deduction for certain fines, penalties, and other amounts 
        (sec. 5509 of the Senate amendment)

                              PRESENT LAW

      Under present law, no deduction is allowed as a trade or 
business expense under section 162(a) for the payment of a fine 
or similar penalty to a government for the violation of any law 
(sec. 162(f)). The enactment of section 162(f) in 1969 codified 
existing case law that denied the deductibility of fines as 
ordinary and necessary business expenses on the grounds that 
``allowance of the deduction would frustrate sharply defined 
national or State policies proscribing the particular types of 
conduct evidenced by some governmental declaration 
thereof.''\148\
---------------------------------------------------------------------------
    \148\S. Rep. 91-552, 91st Cong, 1st Sess., 273-74 (1969), referring 
to Tank Truck Rentals, Inc. v. Commissioner, 356 U.S. 30 (1958).
---------------------------------------------------------------------------
      Treasury regulation section 1.162-21(b)(1) provides that 
a fine or similar penalty includes an amount: (1) paid pursuant 
to conviction or a plea of guilty or nolo contendere for a 
crime (felony or misdemeanor) in a criminal proceeding; (2) 
paid as a civil penalty imposed by Federal, State, or local 
law, including additions to tax and additional amounts and 
assessable penalties imposed by chapter 68 of the Code; (3) 
paid in settlement of the taxpayer's actual or potential 
liability for a fine or penalty (civil or criminal); or (4) 
forfeited as collateral posted in connection with a proceeding 
which could result in imposition of such a fine or penalty. 
Treasury regulation section 1.162-21(b)(2) provides, among 
other things, that compensatory damages (including damages 
under section 4A of the Clayton Act (15 U.S.C. 15a), as 
amended) paid to a government do not constitute a fine or 
penalty.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment modifies the rules regarding the 
determination whether payments are nondeductible payments of 
fines or penalties under section 162(f). In particular, the 
Senate amendment generally provides that amounts paid or 
incurred (whether by suit, agreement, or otherwise) to, or at 
the direction of, a government in relation to the violation of 
any law or the investigation or inquiry into the potential 
violation of any law\149\ are nondeductible under any provision 
of the income tax provisions.\150\ The Senate amendment applies 
to deny a deduction for any such payments, including those 
where there is no admission of guilt or liability and those 
made for the purpose of avoiding further investigation or 
litigation. An exception applies to payments that the taxpayer 
establishes are restitution (including remediation of property) 
and that are identified as restitution in the court order or 
settlement.\151\
---------------------------------------------------------------------------
    \149\The Senate amendment does not affect amounts paid or incurred 
in performing routine audits or reviews such as annual audits that are 
required of all organizations or individuals in a similar business 
sector, or profession, as a requirement for being allowed to conduct 
business. However, if the government or regulator raised an issue of 
compliance and a payment is required in settlement of such issue, the 
Senate amendment would affect that payment.
    \150\The Senate amendment provides that such amounts are 
nondeductible under chapter 1 of the Internal Revenue Code.
    \151\The Senate amendment does not affect the treatment of 
antitrust payments made under section 4 of the Clayton Act, which will 
continue to be governed by the provisions of section 162(g).
---------------------------------------------------------------------------
      An exception also applies to any amount paid or incurred 
as taxes due.
      The Senate amendment is intended to apply only where a 
government (or other entity treated in a manner similar to a 
government under the amendment) is a complainant or 
investigator with respect to the violation or potential 
violation of any law.\152\
---------------------------------------------------------------------------
    \152\Thus, for example, the Senate amendment would not apply to 
payments made by one private party to another in a lawsuit between 
private parties, merely because a judge or jury acting in the capacity 
as a court directs the payment to be made. The mere fact that a court 
enters a judgment or directs a result in a private dispute does not 
cause a payment to be made ``at the direction of a government'' for 
purposes of the provision.
---------------------------------------------------------------------------
      It is intended that a payment will be treated as 
restitution only if substantially all of the payment is 
required to be paid to the specific persons, or in relation to 
the specific property, actually harmed by the conduct of the 
taxpayer that resulted in the payment. Thus, a payment to or 
with respect to a class substantially broader than the specific 
persons or property that were actually harmed (e.g., to a class 
including similarly situated persons or property) does not 
qualify as restitution.\153\ Restitution is limited to the 
amount that bears a substantial quantitative relationship to 
the harm caused by the past conduct or actions of the taxpayer 
that resulted in the payment in question. If the party harmed 
is a government or other entity, then restitution includes 
payment to such harmed government or entity, provided the 
payment bears a substantial quantitative relationship to the 
harm. However, restitution does not include reimbursement of 
government investigative or litigation costs, or payments to 
whistleblowers.
---------------------------------------------------------------------------
    \153\Similarly, a payment to a charitable organization benefiting a 
broader class than the persons or property actually harmed, or to be 
paid out without a substantial quantitative relationship to the harm 
caused, would not qualify as restitution. Under the Senate amendment, 
such a payment not deductible under section 162 would also not be 
deductible under section 170.
---------------------------------------------------------------------------
      Amounts paid or incurred (whether by suit, agreement, or 
otherwise) to, or at the direction of, any self-regulatory 
entity that regulates a financial market or other market that 
is a qualified board or exchange under section 1256(g)(7), and 
that is authorized to impose sanctions (e.g., the National 
Association of Securities Dealers) are likewise subject to the 
provision if paid in relation to a violation, or investigation 
or inquiry into a potential violation, of any law (or any rule 
or other requirement of such entity). To the extent provided in 
regulations, amounts paid or incurred to, or at the direction 
of, any other nongovernmental entity that exercises self-
regulatory powers as part of performing an essential 
governmental function are similarly subject to the provision. 
The exception for payments that the taxpayer establishes are 
restitution likewise applies in these cases.
      No inference is intended as to the treatment of payments 
as nondeductible fines or penalties under present law. In 
particular, the Senate amendment is not intended to limit the 
scope of present-law section 162(f) or the regulations 
thereunder.
      Effective date.--The Senate amendment is effective for 
amounts paid or incurred on or after the date of enactment; 
however the Senate amendment does not apply to amounts paid or 
incurred under any binding order or agreement entered into 
before such date. Any order oragreement requiring court 
approval is not a binding order or agreement for this purpose unless 
such approval was obtained before the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
10. Freeze of interest suspension rules with respect to listed 
        transactions (sec. 5510 of the Senate amendment)

                              PRESENT LAW

      In general, interest and penalties accrue during periods 
for which taxes were unpaid without regard to whether the 
taxpayer was aware that there was tax due. The Code suspends 
the accrual of certain penalties and interest starting 18 
months after the filing of the tax return\154\ if the IRS has 
not sent the taxpayer a notice specifically stating the 
taxpayer's liability and the basis for the liability within the 
specified period. Interest and penalties resume 21 days after 
the IRS sends the required notice to the taxpayer. The 
provision is applied separately with respect to each item or 
adjustment. The provision does not apply where a taxpayer has 
self-assessed the tax. The suspension only applies to taxpayers 
who file a timely tax return. The provision applies only to 
individuals and does not apply to the failure to pay penalty, 
in the case of fraud, or with respect to criminal penalties.
---------------------------------------------------------------------------
    \154\If the return is filed before the due date, for this purpose 
it is considered to have been filed on the due date.
---------------------------------------------------------------------------
      The suspension of interest does not apply to interest 
accruing after October 3, 2004 with respect to underpayments 
resulting from listed transactions or undisclosed reportable 
transactions.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, the exception for listed 
transactions (but not the exception for undisclosed reportable 
transactions) also applies to interest accruing on or before 
October 3, 2004. However, taxpayers remain eligible for the 
present-law suspension of interest if, as of May 9, 2005, (1) 
the taxpayer is participating in (and eventually reaches 
resolution via) a published IRS settlement initiative with 
respect to the listed transaction, or (2) the year in which the 
underpayment occurred is barred by the statute of limitations 
as of May 9, 2005.
      Effective date.--The Senate amendment is effective as if 
included in the provisions of the American Jobs Creation Act of 
2004 to which it relates.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
11. Repeal loss deferral exception for qualified transportation 
        property (sec. 5511 of the Senate amendment)

                              PRESENT LAW

      Present law provides for the deferral of losses 
attributable to certain tax exempt use property, generally 
effective for leases entered into after March 12, 2004. 
However, the deferral provision does not apply to property 
located in the United States that is subject to a lease with 
respect to which a formal application: (1) was submitted for 
approval to the Federal Transit Administration (an agency of 
the Department of Transportation) after June 30, 2003, and 
before March 13, 2004; (2) is approved by the Federal Transit 
Administration before January 1, 2006; and (3) includes a 
description and the fair market value of such property.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment repeals the exception for Federal 
Transit Administration approved leases so that the general 
effective date of the present law loss deferral provisions 
applies to such leases.
      Effective date.--The Senate amendment is effective as if 
included in the enactment of the American Jobs Creation Act of 
2004.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
12. Impose mark to market tax on individuals who expatriate (sec. 5512 
        of Senate amendment)

                              PRESENT LAW

In general
      U.S. citizens and residents generally are subject to U.S 
income taxation on their worldwide income. The U.S. tax may be 
reduced or offset by a credit allowed for foreign income taxes 
paid with respect to foreign source income. Nonresident aliens 
are taxed at a flat rate of 30 percent (or a lower treaty rate) 
on certain types of passive income derived from U.S. sources, 
and at regular graduated rates on net profits derived from a 
U.S. trade or business. The estates of nonresident aliens 
generally are subject to estate tax on U.S.-situated property 
(e.g., real estate and tangible property located within the 
United States and stock in a U.S.corporation). Nonresident 
aliens generally are subject to gift tax on transfers by gift of U.S.-
situated property (e.g., real estate and tangible property located 
within the United States, but excluding intangibles, such as stock, 
regardless of where they are located).
Income tax rules with respect to expatriates
      For the 10 taxable years after an individual relinquishes 
his or her U.S. citizenship or terminates his or her U.S. 
residency\155\ with a principal purpose of avoiding U.S. taxes, 
the individual is subject to an alternative method of income 
taxation that is generally applicable to nonresident aliens 
(the ``alternative tax regime''). Generally, the individual is 
subject to income tax only on U.S.-source income\156\ at the 
rates applicable to U.S. citizens for the 10-year period.
---------------------------------------------------------------------------
    \155\An individual continues to be treated as a U.S. citizen or 
long-term resident for U.S. Federal tax purposes, including for 
purposes of section 7701(b)(10), until the individual: (1) gives notice 
of an expatriating act or termination of residency (with the requisite 
intent to relinquish citizenship or terminate residency) to the 
Secretary of State or the Secretary of Homeland Security respectively; 
and (2) provides a statement in accordance with section 6039G.
    \156\For this purpose, however, U.S.-source income has a broader 
scope than it does typically in the Code.
---------------------------------------------------------------------------
      A former citizen or former long-term resident is subject 
to the alternative tax regime for a 10-year period following 
citizenship relinquishment or residency termination, unless the 
former citizen or former long-term resident: (1) establishes 
that his or her average annual net income tax liability for the 
five preceding years does not exceed $127,000 for 2005 
(adjusted annually for inflation)\157\ and his or her net worth 
does not exceed $2 million, or alternatively satisfies limited, 
objective exceptions for dual citizens and minors who have had 
no substantial contact with the United States; and (2) 
certifies under penalties of perjury that he or she has 
complied with all U.S. Federal tax obligations for the 
preceding five years and provides such evidence of compliance 
as the Secretary of the Treasury may require.
---------------------------------------------------------------------------
    \157\Rev. Proc. 2004-71, 2004-50 I.R.B. 970.
---------------------------------------------------------------------------
      The alternative tax regime does not apply to any 
individual for any taxable year during the 10-year period 
following citizenship relinquishment or residency termination 
if such individual is present in the United States for more 
than 30 days in the calendar year ending in such taxable year. 
Instead, such individual is treated as a U.S. citizen or 
resident for such taxable year and therefore is taxed on his or 
her worldwide income.
      Gifts of stock of certain closely-held foreign 
corporations by a former citizen or former long-term resident 
who is subject to the alternative tax regime are subject to 
gift tax if the gift is made within the 10-year period after 
citizenship relinquishment or residency termination. The gift 
tax rule applies if: (1) the former citizen or former long-term 
resident, before making the gift, directly or indirectly owns 
10 percent or more of the total combined voting power of all 
classes of stock entitled to vote of the foreign corporation; 
and (2) directly or indirectly, is considered to own more than 
50 percent of (a) the total combined voting power of all 
classes of stock entitled to vote in the foreign corporation, 
or (b) the total value of the stock of such corporation. If 
this stock ownership test is met, then taxable gifts of the 
former citizen or former long-term resident include that 
proportion of the fair market value of the foreign stock 
transferred by the individual, at the time of the gift, which 
the fair market value of any assets owned by such foreign 
corporation and situated in the United States (at the time of 
the gift) bears to the total fair market value of all assets 
owned by such foreign corporation (at the time of the gift).
      This gift tax rule applies to a former citizen or former 
long-term resident who is subject to the alternative tax regime 
and who owns stock in a foreign corporation at the time of the 
gift, regardless of how such stock was acquired (e.g., whether 
issued originally to the donor, purchased, or received as a 
gift or bequest).
      Former citizens and former long-term residents are 
required to file an annual return for each year following 
citizenship relinquishment or residency termination in which 
they are subject to the alternative tax regime. The annual 
return is required even if no U.S. Federal income tax is due. 
The annual return requires certain information, including 
information on the permanent home of the individual, the 
individual's country of residence, the number of days the 
individual was present in the United States for the year, and 
detailed information about the individual's income and assets 
that are subject to the alternative tax regime. This 
requirement includes information relating to foreign stock 
potentially subject to the special estate tax rule of section 
2107(b) and the gift tax rules.
      If the individual fails to file the statement in a timely 
manner or fails correctly to include all the required 
information, the individual is required to pay a penalty of 
$5,000. The $5,000 penalty does not apply if it is shown that 
the failure is due to reasonable cause and not to willful 
neglect.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

In general
      The Senate amendment generally subjects certain U.S. 
citizens who relinquish their U.S. citizenship and certain 
long-term U.S. residents who terminate their U.S. residence to 
tax on the net unrealized gain in their property as if such 
property were sold for fair market value on the day before the 
expatriation or residency termination. Gain from the deemed 
sale is taken into account at that time without regard to other 
Code provisions; any loss from the deemed sale generally would 
be taken into account to the extent otherwise provided in the 
Code. Any net gain on the deemed sale is recognized to the 
extent it exceeds $600,000 ($1.2 million in the case of married 
individuals filing a joint return, both of whom relinquish 
citizenship or terminate residency). The $600,000 amount would 
be increased by a cost of living adjustment factor for calendar 
years after 2005.
Individuals covered
      Under the provision, the mark-to-market tax applies to 
U.S. citizens who relinquish citizenship and long-term 
residents who terminate U.S. residency. An individual is a 
long-term resident if he or she was a lawful permanent resident 
for at least eight out of the 15 taxable years ending with the 
year in which the termination of residency occurs. An 
individual is considered to terminate long-term residency when 
either the individual ceases to be a lawful permanent resident 
(i.e., loses his or her green card status), or the individual 
is treated as a resident of another country under a tax treaty 
and the individual does not waive the benefits of the treaty.
      Exceptions from the mark-to-market tax are provided in 
two situations. The first exception applies to an individual 
who was born with citizenship both in the United States and in 
another country; provided that (1) as of the expatriation date 
the individual continues to be a citizen of, and is taxed as a 
resident of, such other country, and (2) the individual was not 
a resident of the United States for the five taxable years 
ending with the year of expatriation. The second exception 
applies to a U.S. citizen who relinquishes U.S. citizenship 
before reaching age 18 and a half, provided that the individual 
was a resident of the United States for no more than five 
taxable years before such relinquishment.
Election to be treated as a U.S. citizen
      Under the provision, an individual is permitted to make 
an irrevocable election to continue to be taxed as a U.S. 
citizen with respect to all property that otherwise is covered 
by the expatriation tax. This election is an ``all or nothing'' 
election; an individual is not permitted to elect this 
treatment for some property but not for other property. The 
election, if made, would apply to all property that would be 
subject to the expatriation tax and to any property the basis 
of which is determined by reference to such property. Under 
this election, the individual would continue to pay U.S. income 
taxes at the rates applicable to U.S. citizens following 
expatriation on any income generated by the property and on any 
gain realized on the disposition of the property. In addition, 
the property would continue to be subject to U.S. gift, estate, 
and generation-skipping transfer taxes. In order to make this 
election, the taxpayer would be required to waive any treaty 
rights that would preclude the collection of the tax.
      The individual also would be required to provide security 
to ensure payment of the tax under this election in such form, 
manner, and amount as the Secretary of the Treasury requires. 
The amount of mark-to-market tax that would have been owed but 
for this election (including any interest, penalties, and 
certain other items) shall be a lien in favor of the United 
States on all U.S.-situs property owned by the individual. This 
lien shall arise on the expatriation date and shall continue 
until the tax liability is satisfied, the tax liability has 
become unenforceable by reason of lapse of time, or the 
Secretary is satisfied that no further tax liability may arise 
by reason of this provision. The rules of section 6324A(d)(1), 
(3), and (4) (relating to liens arising in connection with the 
deferral of estate tax under section 6166) apply to liens 
arising under this provision.
Date of relinquishment of citizenship
      Under the provision, an individual is treated as having 
relinquished U.S. citizenship on the earliest of four possible 
dates: (1) the date that the individual renounces U.S. 
nationality before a diplomatic or consular officer of the 
United States (provided that the voluntary relinquishment is 
later confirmed by the issuance of a certificate of loss of 
nationality); (2) the date that the individual furnishes to the 
State Department a signed statement of voluntary relinquishment 
of U.S. nationality confirming the performance of an 
expatriating act (again, provided that the voluntary 
relinquishment is later confirmed by the issuance of a 
certificate of loss of nationality); (3) the date that the 
State Department issues a certificate of loss of nationality; 
or (4) the date that a U.S. court cancels a naturalized 
citizen's certificate of naturalization.
Deemed sale of property upon expatriation or residency termination
      The deemed sale rule of the provision generally applies 
to all property interests held by the individual on the date of 
relinquishment of citizenship or termination of residency. 
Special rules apply in the case of trust interests, as 
described below. U.S. real property interests, which remain 
subject to U.S. tax in the hands of nonresident noncitizens, 
generally are excepted from the provision. Regulatory authority 
is granted to the Treasury to except other types of property 
from the provision.
      Under the provision, an individual who is subject to the 
mark-to-market tax is required to pay a tentative tax equal to 
the amount of tax that would be due for a hypothetical short 
tax year ending on the date the individual relinquished 
citizenship or terminated residency. Thus, the tentative tax is 
based on all income, gain, deductions, loss, and credits of the 
individual for the year through such date, including amounts 
realized from the deemed sale of property. The tentative tax is 
due on the 90th day after the date of relinquishment of 
citizenship or termination of residency.
Retirement plans and similar arrangements
      Subject to certain exceptions, the provision applies to 
all property interests held by the individual at the time of 
relinquishment of citizenship or termination of residency. 
Accordingly, such property includes an interest in an employer-
sponsored retirement plan or deferred compensation arrangement 
as well as an interest in an individual retirement account or 
annuity (i.e., an IRA).\158\ However, the provision contains a 
special rule for an interest in a ``qualified retirement 
plan.'' For purposes of the provision, a ``qualified retirement 
plan'' includes an employer-sponsored qualified plan (sec. 
401(a)), a qualified annuity (sec. 403(a)), a tax-sheltered 
annuity (sec. 403(b)), an eligible deferred compensation plan 
of a governmental employer (sec. 457(b)), or an IRA (sec. 408). 
The special retirement plan rule applies also, to the extent 
provided in regulations, to any foreign plan or similar 
retirement arrangement or program. An interest in a trust that 
is part of a qualified retirement plan or other arrangement 
that is subject to the special retirement plan rule is not 
subject to the rules for interests in trusts (discussed below).
---------------------------------------------------------------------------
    \158\Application of the provision is not limited to an interest 
that meets the definition of property under section 83 (relating to 
property transferred in connection with the performance of services).
---------------------------------------------------------------------------
      Under the special rule, an amount equal to the present 
value of the individual's vested, accrued benefit under a 
qualified retirement plan is treated as having been received by 
the individual as a distribution under the plan on the day 
before the individual's relinquishment of citizenship or 
termination of residency. It is not intended that the plan 
would be deemed to have made a distribution for purposes of the 
tax-favored status of the plan, such as whether a plan may 
permit distributions before a participant has severed 
employment. In the case of any later distribution to the 
individual from the plan, the amount otherwise includible in 
the individual's income as a result of the distribution is 
reduced to reflect the amount previously included in income 
under the special retirement plan rule. The amount of the 
reduction applied to a distribution is the excess of: (1) the 
amount included in income under the special retirement plan 
rule over (2) the total reductions applied to any prior 
distributions. However, under the provision, the retirement 
plan, and any person acting on the plan's behalf, will treat 
any later distribution in the same manner as the distribution 
would be treated without regard to the special retirement plan 
rule.
      It is expected that the Treasury Department will provide 
guidance for determining the present value of an individual's 
vested, accrued benefit under a qualified retirement plan, such 
as the individual's account balance in the case of a defined 
contribution plan or an IRA, or present value determined under 
the qualified joint and survivor annuity rules applicable to a 
defined benefit plan (sec. 417(e)).
Deferral of payment of tax
      Under the provision, an individual is permitted to elect 
to defer payment of the mark-to-market tax imposed on the 
deemed sale of the property. Interest is charged for the period 
the tax is deferred at a rate two percentage points higher than 
the rate normally applicable to individual underpayments. Under 
this election, the mark-to-market tax attributable to a 
particular property is due when the property is disposed of 
(or, if the property is disposed of in whole or in part in a 
nonrecognition transaction, at such other time as the Secretary 
may prescribe). The mark-to-market tax attributable to a 
particular property is an amount that bears the same ratio to 
the total mark-to-market tax for the year as the gain taken 
into account with respect to such property bears to the total 
gain taken into account under these rules for the year. The 
deferral of the mark-to-market tax may not be extended beyond 
the individual's death.
      In order to elect deferral of the mark-to-market tax, the 
individual is required to provide adequate security to the 
Treasury to ensure that the deferred tax and interest will be 
paid. Other security mechanisms are permitted provided that the 
individual establishes to the satisfaction of the Secretary 
that the security is adequate. In the event that the security 
provided with respect to a particular property subsequently 
becomes inadequate and the individual fails to correct the 
situation, the deferred tax and the interest with respect to 
such property will become due. As a further condition to making 
the election, the individual is required to consent to the 
waiver of any treaty rights that would preclude the collection 
of the tax.
      The deferred amount (including any interest, penalties, 
and certain other items) shall be a lien in favor of the United 
States on all U.S.-situs property owned by the individual. This 
lien shall arise on the expatriation date and shall continue 
until the tax liability is satisfied, the tax liability has 
become unenforceable by reason of lapse of time, or the 
Secretary is satisfied that no further tax liability may arise 
by reason of this provision. The rules of section 6324A(d)(1), 
(3), and (4) (relating to liens arising in connection with the 
deferral of estate tax under section 6166) apply to liens 
arising under this provision.
Interests in trusts
      Under the provision, detailed rules apply to trust 
interests held by an individual at the time of relinquishment 
of citizenship or termination of residency. The treatment of 
trust interests depends on whether the trust is a qualified 
trust. A trust is a qualified trust if a court within the 
United States is able to exercise primary supervision over the 
administration of the trust and one or more U.S. persons have 
the authority to control all substantial decisions of the 
trust.
      Constructive ownership rules apply to a trust beneficiary 
that is a corporation, partnership, trust, or estate. In such 
cases, the shareholders, partners, or beneficiaries of the 
entity are deemed to be the direct beneficiaries of the trust 
for purposes of applying these provision. In addition, an 
individual who holds (or who is treated as holding) a trust 
instrument at the time of relinquishment of citizenship or 
termination of residency is required to disclose on his or her 
tax return the methodology used to determine his or her 
interest in the trust, and whether such individual knows (or 
has reason to know) that any other beneficiary of the trust 
uses a different method.
      Nonqualified trusts.--If an individual holds an interest 
in a trust that is not a qualified trust, a special rule 
applies for purposes of determining the amount of the mark-to-
market tax due with respect to such trust interest. The 
individual's interest in the trust is treated as a separate 
trust consisting of the trust assets allocable to such 
interest. Such separate trust is treated as having sold its net 
assets as of the date of relinquishment of citizenship or 
termination of residency and having distributed the assets to 
the individual, who then is treated as having recontributed the 
assets to the trust. The individual is subject to the mark-to-
market tax with respect to any net income or gain arising from 
the deemed distribution from the trust.
      The election to defer payment is available for the mark-
to-market tax attributable to a nonqualified trust interest. 
Interest is charged for the period the tax is deferred at a 
rate two percentage points higher than the rate normally 
applicable to individual underpayments. A beneficiary's 
interest in a nonqualified trust is determined under all the 
facts and circumstances, including the trust instrument, 
letters of wishes, and historical patterns of trust 
distributions.
      Qualified trusts.--If an individual has an interest in a 
qualified trust, the amount of unrealized gain allocable to the 
individual's trust interest is calculated at the time of 
expatriation or residency termination. In determining this 
amount, all contingencies and discretionary interests are 
assumed to be resolved in the individual's favor (i.e., the 
individual is allocated the maximum amount that he or she could 
receive). The mark-to-market tax imposed on such gains is 
collected when the individual receives distributions from the 
trust, or if earlier, upon the individual's death. Interest is 
charged for the period the tax is deferred at a rate two percentage 
points higher than the rate normally applicable to individual 
underpayments.
      If an individual has an interest in a qualified trust, 
the individual is subject to the mark-to-market tax upon the 
receipt of distributions from the trust. These distributions 
also may be subject to other U.S. income taxes. If a 
distribution from a qualified trust is made after the 
individual relinquishes citizenship or terminates residency, 
the mark-to-market tax is imposed in an amount equal to the 
amount of the distribution multiplied by the highest tax rate 
generally applicable to trusts and estates, but in no event 
will the tax imposed exceed the deferred tax amount with 
respect to the trust interest. For this purpose, the deferred 
tax amount is equal to: (1) the tax calculated with respect to 
the unrealized gain allocable to the trust interest at the time 
of expatriation or residency termination; (2) increased by 
interest thereon; and (3) reduced by any mark-to-market tax 
imposed on prior trust distributions to the individual.
      If any individual's interest in a trust is vested as of 
the expatriation date (e.g., if the individual's interest in 
the trust is non-contingent and non-discretionary), the gain 
allocable to the individual's trust interest is determined 
based on the trust assets allocable to his or her trust 
interest. If the individual's interest in the trust is not 
vested as of the expatriation date (e.g., if the individual's 
trust interest is a contingent or discretionary interest), the 
gain allocable to his or her trust interest is determined based 
on all of the trust assets that could be allocable to his or 
her trust interest, determined by resolving all contingencies 
and discretionary powers in the individual's favor. In the case 
where more than one trust beneficiary is subject to the 
expatriation tax with respect to trust interests that are not 
vested, the rules are intended to apply so that the same 
unrealized gain with respect to assets in the trust is not 
taxed to both individuals.
      Mark-to-market taxes become due if the trust ceases to be 
a qualified trust, the individual disposes of his or her 
qualified trust interest, or the individual dies. In such 
cases, the amount of mark-to-market tax equals the lesser of 
(1) the tax calculated under the rules for nonqualified trust 
interests as of the date of the triggering event, or (2) the 
deferred tax amount with respect to the trust interest as of 
that date.
      The tax that is imposed on distributions from a qualified 
trust generally is deducted and withheld by the trustees. If 
the individual does not agree to waive treaty rights that would 
preclude collection of the tax, the tax with respect to such 
distributions is imposed on the trust, the trustee is 
personally liable for the tax, and any other beneficiary has a 
right of contribution against such individual with respect to 
the tax. Similar rules apply when the qualified trust interest 
is disposed of, the trust ceases to be a qualified trust, or 
the individual dies.
Coordination with present-law alternative tax regime
      The provision provides a coordination rule with the 
present-law alternative tax regime. Under the provision, the 
expatriation income tax rules under section 877, and the 
expatriation estate and gift tax rules under sections 2107 and 
2501(a)(3) (described above), do not apply to a former citizen 
or former long-term resident whose expatriation or residency 
termination occurs on or after date of enactment. In addition, 
section 7701(n) does not apply with respect to any individual 
that expatriated on or after date of enactment.
Treatment of gifts and inheritances from a former citizen or former 
        long-term resident
      Under the provision, the exclusion from income provided 
in section 102 (relating to exclusions from income for the 
value of property acquired by gift or inheritance) does not 
apply to the value of any property received by gift or 
inheritance from a former citizen or former long-term resident 
(i.e., an individual who relinquished U.S. citizenship or 
terminated U.S. residency), subject to the exceptions described 
above relating to certain dual citizens and minors. 
Accordingly, a U.S. taxpayer who receives a gift or inheritance 
from such an individual is required to include the value of 
such gift or inheritance in gross income and is subject to U.S. 
tax on such amount. Having included the value of the property 
in income, the recipient would then take a basis in the 
property equal to that value. The tax does not apply to 
property that is shown on a timely filed gift tax return and 
that is a taxable gift by the former citizen or former long-
term resident, or property that is shown on a timely filed 
estate tax return and included in the gross U.S. estate of the 
former citizen or former long-term resident (regardless of 
whether the tax liability shown on such a return is reduced by 
credits, deductions, or exclusions available under the estate 
and gift tax rules). In addition, the tax does not apply to 
property in cases in which no estate or gift tax return is 
required to be filed, where no such return would have been 
required to be filed if the former citizen or former long-term 
resident had not relinquished citizenship or terminated 
residency, as the case may be. Applicable gifts or bequests 
that are made in trust are treated as made to the beneficiaries 
of the trust in proportion to their respective interests in the 
trust.
Immigration rules
      The provision amends the immigration rules that deny tax-
motivated expatriates reentry into the United States by 
removing the requirement that the expatriation be tax-
motivated, and instead denies former citizens reentry into the 
United States if the individual is determined not to be in 
compliance with his or her tax obligations under the 
provision's expatriation tax provisions (regardless of the 
subjective motive for expatriating). For this purpose, the 
provision permits the IRS to disclose certain items of return 
information of an individual, upon written request of the 
Attorney General or his delegate, as is necessary for making a 
determination under section 212(a)(10)(E) of the Immigration 
and Nationality Act. Specifically, the provision would permit 
the IRS to disclose to the agency administering section 
212(a)(10)(E) whether such taxpayer is in compliance with 
section 877A and identify the items of noncompliance. 
Recordkeeping requirements, safeguards, and civil and criminal 
penalties for unauthorized disclosure or inspection would apply 
to return information disclosed under this provision.
      Effective date.--The Senate amendment generally is 
effective for U.S. citizens who relinquish citizenship or long-
term residents who terminate their residency on or after date 
of enactment. The provisions relating to gifts and inheritances 
are effective for gifts and inheritances received from former 
citizens and former long-term residents on or after date of 
enactment, whose expatriation or residency termination occurs 
on or after such date. The provisions relating to former 
citizens under U.S. immigration laws are effective on or after 
the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
13. Disallowance of deduction for punitive damages (sec. 5513 of the 
        Senate amendment)

                              PRESENT LAW

      In general, a deduction is allowed for all ordinary and 
necessary expenses that are paid or incurred by the taxpayer 
during the taxable year in carrying on any trade or 
business.\159\ However, no deduction is allowed for any payment 
that is made to an official of any governmental agency if the 
payment constitutes an illegal bribe or kickback or if the 
payment is to an official or employee of a foreign government 
and is illegal under Federal law.\160\ In addition, no 
deduction is allowed under present law for any fine or similar 
payment made to a government for violation of any law.\161\ 
Furthermore, no deduction is permitted for two-thirds of any 
damage payments made by a taxpayer who is convicted of a 
violation of the Clayton antitrust law or any related antitrust 
law.\162\
---------------------------------------------------------------------------
    \159\Sec. 162(a).
    \160\Sec. 162(c).
    \161\Sec. 162(f).
    \162\Sec. 162(g).
---------------------------------------------------------------------------
      In general, gross income does not include amounts 
received on account of personal physical injuries and physical 
sickness.\163\ However, this exclusion does not apply to 
punitive damages.\164\
---------------------------------------------------------------------------
    \163\Sec. 104(a).
    \164\Sec. 104(a)(2).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment denies any deduction for punitive 
damages that are paid or incurred by the taxpayer as a result 
of a judgment or in settlement of a claim. If the liability for 
punitive damages is covered by insurance, any such punitive 
damages paid by the insurer are included in gross income of the 
insured person and the insurer is required to report such 
amounts to both the insured person and the IRS.
      Effective date.--The Senate amendment is effective for 
punitive damages that are paid or incurred on or after the date 
of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
14. Application of earnings stripping rules to partners which are 
        corporations (sec. 5514 of the Senate amendment)

                              PRESENT LAW

      Present law provides rules to limit the ability of U.S. 
corporations to reduce the U.S. tax on their U.S.-source income 
through earnings stripping transactions. Section 163(j) 
specifically addresses earnings stripping involving interest 
payments, by limiting the deductibility of interest paid to 
certain related parties (``disqualified interest''),\165\ if 
the payor's debt-equity ratio exceeds 1.5 to 1 and the payor's 
net interest expense exceeds 50 percent of its ``adjusted 
taxable income'' (generally taxable income computed without 
regard to deductions for net interest expense, net operating 
losses, and depreciation, amortization, and depletion). 
Disallowed interest amounts can be carried forward 
indefinitely. In addition, excess limitation (i.e., any excess 
of the 50-percent limit over a company's net interest expense 
for a given year) can be carried forward three years.
---------------------------------------------------------------------------
    \165\This interest also may include interest paid to unrelated 
parties in certain cases in which a related party guarantees the debt.
---------------------------------------------------------------------------
      Proposed Treasury regulations provide that a corporate 
partner's proportionate share of the liabilities of a 
partnership is treated as liabilities incurred directly by the 
corporate partner for purposes of applying the earnings 
stripping limitation to its own interest payments.\166\ The 
proposed Treasury regulations provide that interest paid or 
accrued to a partnership is treated as paid or accrued to the 
partners of the partnership in proportion to each partner's 
distributive share of the partnership's interest income for the 
taxable year.\167\ In addition, the proposed Treasury 
regulations provide that interest expense paid or accrued by a 
partnership is treated as paid or accrued by the partners of 
the partnership in proportion to each partner's distributive 
share, for purposes of the earnings stripping rules.\168\
---------------------------------------------------------------------------
    \166\Prop. Treas. Reg. sec. 1.163(j)-3(b)(3).
    \167\Prop. Treas. Reg. sec. 1.163(j)-2(e)(4).
    \168\Prop. Treas. Reg. sec. 1.163(j)-2(e)(5).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment codifies the approach of the 
proposed Treasury regulations by providing that a corporate 
partner's share of partnership debt is attributed to the 
corporate partner for purposes of applying the earnings 
stripping rules to the corporate partner.
      Effective date.--The Senate amendment is effective for 
taxable years beginning after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
15. Prohibition on deferral of certain stock option and restricted 
        stock gains (sec. 5515 of the Senate amendment)

                              PRESENT LAW

      Section 83 applies to transfers of property in connection 
with the performance of services. Under section 83, if, in 
connection with the performance of services, property is 
transferred to any person other than the person for whom such 
services are performed, the excess of the fair market value of 
such property over the amount (if any) paid for the property is 
includible in income at the first time that the property is 
transferable or not subject to substantial risk of forfeiture.
      Stock granted to an employee (or other service provider) 
is subject to the rules that apply under section 83. When stock 
is vested and transferred to an employee, the excess of the 
fair market value of the stock over the amount, if any, the 
employee pays for the stock is includible in the employee's 
income for the year in which the transfer occurs.
      The income taxation of a nonqualified stock option is 
determined under section 83 and depends on whether the option 
has a readily ascertainable fair market value. If the 
nonqualified option does not have a readily ascertainable fair 
market value at the time of grant, no amount is includible in 
the gross income of the recipient with respect to the option 
until the recipient exercises the option. The transfer of stock 
on exercise of the option is subject to the general rules of 
section 83. That is, if vested stock is received on exercise of 
the option, the excess of the fair market value of the stock 
over the option price is includible in the recipient's gross 
income as ordinary income in the taxable year in which the 
option is exercised. If the stock received on exercise of the 
option is not vested, the excess of the fair market value of 
the stock at the time of vesting over the option price is 
includible in the recipient's income for the year in which 
vesting occurs unless the recipient elects to apply section 83 
at the time of exercise.
      Other forms of stock-based compensation are also subject 
to the rules of section 83.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, gains attributable to stock 
options (including exercises of stock options), vesting of 
restricted stock, and other compensation based on employer 
securities (including employer securities) cannot be deferred 
by exchanging such amounts for a right to receive a future 
payment. Except as provided by the Secretary, if a taxpayer 
exchanges (1) an option to purchase employer securities, (2) 
employer securities, or (3) any other property based on 
employer securities for a right to receive future payments, an 
amount equal to the present value of such right (or such other 
amount as the Secretary specifies) is required to be included 
in gross income for the taxable year of the exchange. The 
provision applies even if the future right to payment is 
treated as an unfunded and unsecured promise to pay. The 
provision applies when there is in substance an exchange, even 
if the transaction is not formally structured as an exchange.
      The provision is not intended to imply that such 
practices result in permissive deferral of income under present 
law.
      Effective date.--The Senate amendment is effective for 
exchanges after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
16. Limitation on employer deduction for certain entertainment expenses 
        (sec. 5516 of the Senate amendment)

                              PRESENT LAW

In general
      Under present law, no deduction is allowed with respect 
to (1) an activity generally considered to be entertainment, 
amusement or recreation, unless the taxpayer establishes that 
the item was directly related to (or, in certain cases, 
associated with) the active conduct of the taxpayer's trade or 
business, or (2) a facility (e.g., an airplane) used in 
connection with such activity.\169\ The Code includes a number 
of exceptions to the general rule disallowing deductions of 
entertainment expenses. Under one exception, the deduction 
disallowance rule does not apply to expenses for goods, 
services, and facilities to the extent that the expenses are 
reported by the taxpayer as compensation and wages to an 
employee.\170\ The deduction disallowance rule also does not 
apply to expenses paid or incurred by the taxpayer for goods, 
services, and facilities to the extent that the expenses are 
includible in the gross income of a recipient who is not an 
employee (e.g., a nonemployee director) as compensation for 
services rendered or as a prize or award.\171\ The exceptions 
apply only to the extent that amounts are properly reported by 
the company as compensation and wages or otherwise includible 
in income. In no event can the amount of the deduction exceed 
the amount of the actual cost, even if a greater amount is 
includible in income.
---------------------------------------------------------------------------
    \169\Sec. 274(a).
    \170\Sec. 274(e)(2). As discussed below, a special rule applies in 
the case of specified individuals.
    \171\Sec. 274(e)(9).
---------------------------------------------------------------------------
      Except as otherwise provided, gross income includes 
compensation for services, including fees, commissions, fringe 
benefits, and similar items. In general, an employee or other 
service provider must include in gross income the amount by 
which the fair value of a fringe benefit exceeds the amount 
paid by the individual. Treasury regulations provide rules 
regarding the valuation of fringe benefits, including flights 
on an employer-provided aircraft.\172\ In general, the value of 
a non-commercial flight is determined under the base aircraft 
valuation formula, also known as the Standard Industry Fare 
Level formula or ``SIFL''.\173\ If the SIFL valuation rules do 
not apply, the value of a flight on a company-provided aircraft 
is generally equal to the amount that an individual would have 
to pay in an arm's-length transaction to charter the same or a 
comparable aircraft for that period for the same or a 
comparable flight.\174\
---------------------------------------------------------------------------
    \172\Treas. Reg. sec. 1.61-21.
    \173\Treas. Reg. sec. 1.61-21(g).
    \174\Treas. Reg. sec. 1.61-21(b)(6).
---------------------------------------------------------------------------
      In the context of an employer providing an aircraft to 
employees for nonbusiness (e.g., vacation) flights, the 
exception for expenses treated as compensation was interpreted 
in Sutherland Lumber-Southwest, Inc. v. Commissioner 
(``Sutherland Lumber'') as not limiting the company's deduction 
for operation of the aircraft to the amount of compensation 
reportable to its employees,\175\ which can result in a 
deduction many times larger than the amount required to be 
included in income. In many cases, the individual including 
amounts attributable to personal travel in income directly 
benefits from the enhanced deduction, resulting in a net 
deduction for the personal use of the company aircraft.
---------------------------------------------------------------------------
    \175\Sutherland Lumber-Southwest, Inc. v. Comm., 114 T.C. 197 
(2000), aff'd, 255 F.3d 495 (8th Cir. 2001), acq., AOD 2002-02 (Feb. 
11, 2002).
---------------------------------------------------------------------------
Specified individuals
      In the case of specified individuals, the exceptions to 
the general entertainment expense disallowance rule for 
expenses treated as compensation or includible in income apply 
only to the extent of the amount of expenses treated as 
compensation or includible in income of the specified 
individual. For example, a company's deduction attributable to 
aircraft operating costs and other expenses for a specified 
individual's vacation use of a company aircraft is limited to 
the amount reported as compensation to the specified 
individual. Sutherland Lumber was overturned with respect to 
specified individuals.
      Specified individuals are individuals who, with respect 
to an employer or other service recipient, are subject to the 
requirements of section 16(a) of the Securities and Exchange 
Act of 1934, or would be subject to such requirements if the 
employer or service recipient were an issuer of equity 
securities referred to in section 16(a). Such individuals 
generally include officers (as defined by section 16(a)),\176\ 
directors, and 10-percent-or-greater owners of private and 
publicly-held companies.
---------------------------------------------------------------------------
    \176\An officer is defined as the president, principal financial 
officer, principal accounting officer (or, if there is no such 
accounting officer, the controller), any vice-president in charge of a 
principal business unit, division or function (such as sales, 
administration or finance), any other officer who performs a policy-
making function, or any other person who performs similar policy-making 
functions.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, in the case of all 
individuals, the exceptions to the general entertainment 
expense disallowance rule for expenses treated as compensation 
or includible in income apply only to the extent of the amount 
of expenses treated as compensation or includible in income. 
Thus, under those exceptions, no deduction is allowed with 
respect to expenses for (1) a nonbusiness activity generally 
considered to be entertainment, amusement or recreation, or (2) 
a facility (e.g., an airplane) used in connection with such 
activity to the extent that such expenses exceed the amount 
treated as compensation or includible in income. The provision 
is intended to overturn Sutherland Lumber for all individuals. 
As under present law, the exceptions apply only if amounts are 
properly reported by the company as compensation and wages or 
otherwise includible in income.
      Effective date.--The Senate amendment is effective for 
expenses incurred after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
17. Increase in penalty for bad checks and money orders (sec. 5517 of 
        the Senate amendment)

                              PRESENT LAW

      The Code imposes a penalty for bad checks and money 
orders on the person who tendered such check or money 
order.\177\ The penalty is two percent of the amount of the bad 
check or money order. The minimum penalty is $15 (or, if less, 
the amount of the check), applicable to checks that are less 
than $750.
---------------------------------------------------------------------------
    \177\Sec. 6657.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment increases the minimum penalty for 
bad checks and money orders to $25 (or, if less, the amount of 
the check), applicable to checks that are less than $1,250.
      Effective date.--The Senate amendment applies to checks 
or money orders received after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
18. Elimination of double deduction of mining exploration and 
        development costs under the minimum tax (sec. 5518 of the 
        Senate amendment)

                              PRESENT LAW

      Under present law, mining development costs are expensed 
in computing taxable income, unless either the deferred expense 
method is elected under section under section 616(b) or 10-year 
amortization is elected under section 59(e). In addition, a 
taxpayer may elect to expense mining exploration costs under 
section 617 or amortize the costs over a 10-year period under 
section 59(e). Also, a deduction for depletion is allowed with 
respect to mines. One method of computing the allowance for 
depletion is the percentage depletion method under section 613 
that is based on the income of the mining property and is not 
limited by the adjusted basis of the property.
      In determining alternative minimum taxable income 
(``AMTI'') mining exploration and development costs with 
respect to a mine are required to be capitalized and amortized 
over a 10-year period, unless the deferred expense method is 
elected under section 616(b).\178\ In addition, the deduction 
for percentage depletion is limited to the adjusted basis of 
the property at the end of the taxable year (without regard to 
the depletion deduction for the year).\179\ Treasury 
regulations\180\ provide that the adjusted basis for this 
purpose is the same as the adjusted basis for purposes of 
determining gain or loss from the sale or other disposition of 
the property. Treasury regulations\181\ further provide that 
the expenditures for development and exploration of mines 
treated as deferred expenses are chargeable to capital account 
and shall be an adjustment to the basis of the property to 
which they relate. The adjusted basis of the property is 
reduced by depletion deductions and the deductions for mining 
and exploration expenses in the taxable year the deductions are 
allowable.
---------------------------------------------------------------------------
    \178\Sec. 56(a)(2).
    \179\Sec. 57(a)(1).
    \180\Treas. Reg. sec. 1.57-1(h)(3).
    \181\Treas. Reg. sec. 1.1016-5(f).
---------------------------------------------------------------------------
      Under the rules, notwithstanding the adjusted basis 
limitation on percentage depletion, a taxpayer may deduct more 
than 100 percent of its exploration and development costs in 
computing AMTI. For example, assume a taxpayer incurs $1 
million in development costs in 2005 with respect to a mine 
that has a zero basis and that the deferred expense method is 
not elected. Also, assume that the deduction for percentage 
depletion (without regard to the basis limitation) for 2005 is 
$900,000. Under present law, in computing AMTI, the taxpayer is 
allowed to deduct $100,000 per year in development costs for 
each of the 10 taxable years beginning in 2005, and, in 
addition, is allowed to deduct percentage depletion of $900,000 
in 2005, for a total of $1.9 million in deductions.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, the deduction for depletion 
under the alternative minimum tax is amended by excluding from 
the adjusted basis of any mining property, the amount of mining 
exploration and development costs that may be allowed as a 
deduction to the taxpayer in computing AMTI in a future taxable 
year.
      In the example described under present law, the $1 
million development costs will be amortized over a 10-year 
period and no amount will be allowed as a deduction for 
depletion in computing AMTI.\182\
---------------------------------------------------------------------------
    \182\If the taxpayer elects the deferred expense method under 
section 616(b) or 10-year amortization under section 59(e), the 
deduction for depletion will also be zero.
---------------------------------------------------------------------------
      Effective date.--The Senate amendment applies to taxable 
years beginning after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
19. Clarification of the economic substance doctrine (sec. 5521 of the 
        Senate amendment)

                              PRESENT LAW

In general
      The Code provides specific rules regarding the 
computation of taxable income, including the amount, timing, 
source, and character of items of income, gain, loss and 
deduction. These rules are designed to provide for the 
computation of taxable income in a manner that provides for a 
degree of specificity to both taxpayers and the government. 
Taxpayers generally may plan their transactions in reliance on 
these rules to determine the federal income tax consequences 
arising from the transactions.
      In addition to the statutory provisions, courts have 
developed several doctrines that can be applied to deny the tax 
benefits of tax motivated transactions, notwithstanding that 
the transaction may satisfy the literal requirements of a 
specific tax provision. The common-law doctrines are not 
entirely distinguishable, and their application to a given set 
of facts is often blurred by the courts and the IRS. Although 
these doctrines serve an important role in the administration 
of the tax system, invocation of these doctrines can be seen as 
at odds with an objective, ``rule-based'' system of taxation. 
Nonetheless, courts have applied the doctrines to deny tax 
benefits arising from certain transactions.\183\
---------------------------------------------------------------------------
    \183\See, e.g., ACM Partnership v. Commissioner, 157 F.3d 231 (3d 
Cir. 1998), aff'g 73 T.C.M. (CCH) 2189 (1997), cert. denied 526 U.S. 
1017 (1999).
---------------------------------------------------------------------------
      A common-law doctrine applied with increasing frequency 
is the ``economic substance'' doctrine. In general, this 
doctrine denies tax benefits arising from transactions that do 
not result in a meaningful change to the taxpayer's economic 
position other than a purported reduction in federal income 
tax.\184\
---------------------------------------------------------------------------
    \184\Closely related doctrines also applied by the courts 
(sometimes interchangeable with the economic substance doctrine) 
include the ``sham transaction doctrine'' and the ``business purpose 
doctrine''. See, e.g., Knetsch v. United States, 364 U.S. 361 (1960) 
(denying interest deductions on a ``sham transaction'' whose only 
purpose was to create the deductions).
---------------------------------------------------------------------------

                      ECONOMIC SUBSTANCE DOCTRINE

      Courts generally deny claimed tax benefits if the 
transaction that gives rise to those benefits lacks economic 
substance independent of tax considerations--notwithstanding 
that the purported activity actually occurred. The tax court 
has described the doctrine as follows:
      The tax law . . . requires that the intended transactions 
have economic substance separate and distinct from economic 
benefit achieved solely by tax reduction. The doctrine of 
economic substance becomes applicable, and a judicial remedy is 
warranted, where a taxpayer seeks to claim tax benefits, 
unintended by Congress, by means of transactions that serve no 
economic purpose other than tax savings.\185\
---------------------------------------------------------------------------
    \185\ACM Partnership v. Commissioner, 73 T.C.M. at 2215.
---------------------------------------------------------------------------
            Business purpose doctrine
      Another common law doctrine that overlays and is often 
considered together with (if not part and parcel of) the 
economic substance doctrine is the business purpose doctrine. 
The business purpose test is a subjective inquiry into the 
motives of the taxpayer--that is, whether the taxpayer intended 
the transaction to serve some useful non-tax purpose. In making 
this determination, some courts have bifurcated a transaction 
in which independent activities with non-tax objectives have 
been combined with an unrelated item having only tax-avoidance 
objectives in order to disallow the tax benefits of the overall 
transaction.\186\
---------------------------------------------------------------------------
    \186\ACM Partnership v. Commissioner, 157 F.3d at 256 n.48.
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Application by the courts
            Elements of the doctrine
      There is a lack of uniformity regarding the proper 
application of the economic substance doctrine.\187\ Some 
courts apply a conjunctive test that requires a taxpayer to 
establish the presence of both economic substance (i.e., the 
objective component) and business purpose (i.e., the subjective 
component) in order for the transaction to survive judicial 
scrutiny.\188\ A narrower approach used by some courts is to 
conclude that either a business purpose or economic substance 
is sufficient to respect the transaction).\189\ A third 
approach regards economic substance and business purpose as 
``simply more precise factors to consider'' in determining 
whether a transaction has any practical economic effects other 
than the creation of tax benefits.\190\
---------------------------------------------------------------------------
    \187\``The casebooks are glutted with [economic substance] tests. 
Many such tests proliferate because they give the comforting illusion 
of consistency and precision. They often obscure rather than clarify.'' 
Collins v. Commissioner, 857 F.2d 1383, 1386 (9th Cir. 1988).
    \188\See, e.g., Pasternak v. Commissioner, 990 F.2d 893, 898 (6th 
Cir. 1993) (``The threshold question is whether the transaction has 
economic substance. If the answer is yes, the question becomes whether 
the taxpayer was motivated by profit to participate in the 
transaction.'').
    \189\See, e.g., Rice's Toyota World v. Commissioner, 752 F.2d 89, 
91-92 (4th Cir. 1985) (``To treat a transaction as a sham, the court 
must find that the taxpayer was motivated by no business purposes other 
than obtaining tax benefits in entering the transaction, and, second, 
that the transaction has no economic substance because no reasonable 
possibility of a profit exists.''); IES Industries v. United States, 
253 F.3d 350, 358 (8th Cir. 2001) (``In determining whether a 
transaction is a sham for tax purposes [under the Eighth Circuit test], 
a transaction will be characterized as a sham if it is not motivated by 
any economic purpose out of tax considerations (the business purpose 
test), and if it is without economic substance because no real 
potential for profit exists (the economic substance test).''). As noted 
earlier, the economic substance doctrine and the sham transaction 
doctrine are similar and sometimes are applied interchangeably. For a 
more detailed discussion of the sham transaction doctrine, see, e.g., 
Joint Committee on Taxation, Study of Present-Law Penalty and Interest 
Provisions as Required by Section 3801 of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (including Provisions Relating to 
Corporate Tax Shelters) (JCS-3-99) at 182.
    \190\See, e.g., ACM Partnership v. Commissioner, 157 F.3d at 247; 
James v. Commissioner, 899 F.2d 905, 908 (10th Cir. 1995); Sacks v. 
Commissioner, 69 F.3d 982, 985 (9th Cir. 1995) (``Instead, the 
consideration of business purpose and economic substance are simply 
more precise factors to consider . . . We have repeatedly and carefully 
noted that this formulation cannot be used as a `rigid two-step 
analysis'.'').
---------------------------------------------------------------------------
            Profit potential
      There also is a lack of uniformity regarding the 
necessity and level of profit potential necessary to establish 
economic substance. Since the time of Gregory v. 
Helvering,\191\ several courts have denied tax benefits on the 
grounds that the subject transactions lacked profit 
potential.\192\ In addition, some courts have applied the 
economic substance doctrine to disallow tax benefits in 
transactions in which a taxpayer was exposed to risk and the 
transaction had a profit potential, but the court concluded 
that the economic risks and profit potential were insignificant 
when compared to the tax benefits.\193\ Under this analysis, 
the taxpayer's profit potential must be more than nominal. 
Conversely, other courts view the application of the economic 
substance doctrine as requiring an objective determination of 
whether a ``reasonable possibility of profit'' from the 
transaction existed apart from the tax benefits.\194\ In these 
cases, in assessing whether a reasonable possibility of profit 
exists, it is sufficient if there is a nominal amount of pre-
tax profit as measured against expected net tax benefits.
---------------------------------------------------------------------------
    \191\293 U.S. 465 (1935).
    \192\See, e.g., Knetsch, 364 U.S. at 361; Goldstein v. 
Commissioner, 364 F.2d 734 (2d Cir. 1966) (holding that an 
unprofitable, leveraged acquisition of Treasury bills, and accompanying 
prepaid interest deduction, lacked economic substance); Ginsburg v. 
Commissioner, 35 T.C.M. (CCH) 860 (1976) (holding that a leveraged 
cattle-breeding program lacked economic substance).
    \193\See, e.g., Goldstein v. Commissioner, 364 F.2d at 739-40 
(disallowing deduction even though taxpayer had a possibility of small 
gain or loss by owning Treasury bills); Sheldon v. Commissioner, 94 
T.C. 738, 768 (1990) (stating, ``potential for gain . . . is 
infinitesimally nominal and vastly insignificant when considered in 
comparison with the claimed deductions'').
    \194\See, e.g., Rice's Toyota World v. Commissioner, 752 F.2d at 94 
(the economic substance inquiry requires an objective determination of 
whether a reasonable possibility of profit from the transaction existed 
apart from tax benefits); Compaq Computer Corp. v. Commissioner, 277 
F.3d at 781 (applied the same test, citing Rice's Toyota World); IES 
Industries v. United States, 253 F.3d at 354 (the application of the 
objective economic substance test involves determining whether there 
was a ``reasonable possibility of profit . . . apart from tax 
benefits.'').
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment clarifies and enhances the 
application of the economic substance doctrine. The Senate 
amendment provides that, in a case in which a court determines 
that the economic substance doctrine is relevant to a 
transaction (or a series of transactions), such transaction (or 
series of transactions) has economic substance (and thus 
satisfies the economic substance doctrine) only if the taxpayer 
establishes that (1) the transaction changes in a meaningful 
way (apart from Federal income tax consequences) the taxpayer's 
economic position, and (2) the taxpayer has a substantial non-
tax purpose for entering into such transaction and the 
transaction is a reasonable means of accomplishing such 
purpose.\195\
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    \195\If the tax benefits are clearly contemplated and expected by 
the language and purpose of the relevant authority, it is not intended 
that such tax benefits be disallowed if the only reason for such 
disallowance is that the transaction fails the economic substance 
doctrine as defined in this provision.
---------------------------------------------------------------------------
      The Senate amendment does not change current law 
standards used by courts in determining when to utilize an 
economic substance analysis.\196\ Also, the Senate amendment 
does not alter the court's ability to aggregate, disaggregate 
or otherwise recharacterize a transaction when applying the 
doctrine.\197\ The Senate amendment provides a uniform 
definition of economic substance, but does not alter the 
flexibility of the courts in other respects.
---------------------------------------------------------------------------
    \196\See, e.g., Treas. Reg. sec. 1.269-2, stating that 
characteristic of circumstances in which a deduction otherwise allowed 
will be disallowed are those in which the effect of the deduction, 
credit, or other allowance would be to distort the liability of the 
particular taxpayer when the essential nature of the transaction or 
situation is examined in the light of the basic purpose or plan which 
the deduction, credit, or other allowance was designed by the Congress 
to effectuate.
    \197\See, e.g., Minnesota Tea Co. v. Helvering, 302 U.S. 609, 613 
(1938) (``A given result at the end of a straight path is not made a 
different result because reached by following a devious path.'').
---------------------------------------------------------------------------
Conjunctive analysis
      The Senate amendment clarifies that the economic 
substance doctrine involves a conjunctive analysis--there must 
be an objective inquiry regarding the effects of the 
transaction on the taxpayer's economic position, as well as a 
subjective inquiry regarding the taxpayer's motives for 
engaging in the transaction. Under the Senate amendment, a 
transaction must satisfy both tests--i.e., it must change in a 
meaningful way (apart from Federal income tax consequences) the 
taxpayer's economic position, and the taxpayer must have a 
substantial non-tax purpose for entering into such transaction 
(and the transaction is a reasonable means of accomplishing 
such purpose)--in order to satisfy the economic substance 
doctrine. This clarification eliminates the disparity that 
exists among the circuits regarding the application of the 
doctrine, and modifies its application in those circuits in 
which either a change in economic position or a non-tax 
business purpose (without having both) is sufficient to satisfy 
the economic substance doctrine.
Non-tax business purpose
      The Senate amendment provides that a taxpayer's non-tax 
purpose for entering into a transaction (the second prong in 
the analysis) must be ``substantial,'' and that the transaction 
must be ``a reasonable means'' of accomplishing such purpose. 
Under this formulation, the non-tax purpose for the transaction 
must bear a reasonable relationship to the taxpayer's normal 
business operations or investment activities.\198\
---------------------------------------------------------------------------
    \198\See, e.g., Treas. Reg. sec. 1.269-2(b) (stating that a 
distortion of tax liability indicating the principal purpose of tax 
evasion or avoidance might be evidenced by the fact that ``the 
transaction was not undertaken for reasons germane to the conduct of 
the business of the taxpayer''). Similarly, in ACM Partnership v. 
Commissioner, 73 T.C.M. (CCH) 2189 (1997), the court stated: ``Key to 
[the determination of whether a transaction has economic substance] is 
that the transaction must be rationally related to a useful nontax 
purpose that is plausible in light of the taxpayer's conduct and useful 
in light of the taxpayer's economic situation and intentions. Both the 
utility of the stated purpose and the rationality of the means chosen 
to effectuate it must be evaluated in accordance with commercial 
practices in the relevant industry. A rational relationship between 
purpose and means ordinarily will not be found unless there was a 
reasonable expectation that the nontax benefits would be at least 
commensurate with the transaction costs.'' [citations omitted]
    See also Martin McMahon Jr., Economic Substance, Purposive 
Activity, and Corporate Tax Shelters, 94 Tax Notes 1017, 1023 (Feb. 25, 
2002) (advocates ``confining the most rigorous application of business 
purpose, economic substance, and purposive activity tests to 
transactions outside the ordinary course of the taxpayer's business--
those transactions that do not appear to contribute to any business 
activity or objective that the taxpayer may have had apart from tax 
planning but are merely loss generators.''); Mark P. Gergen, The Common 
Knowledge of Tax Abuse, 54 SMU L. Rev. 131, 140 (Winter 2001) (``The 
message is that you can pick up tax gold if you find it in the street 
while going about your business, but you cannot go hunting for it.'').
---------------------------------------------------------------------------
      In determining whether a taxpayer has a substantial non-
tax business purpose, an objective of achieving a favorable 
accounting treatment for financial reporting purposes will not 
be treated as having a substantial non-tax purpose.\199\ 
Furthermore, a transaction that is expected to increase 
financial accounting income as a result of generating tax 
deductions or losses without a corresponding financial 
accounting charge (i.e., a permanent book-tax difference)\200\ 
should not be considered to have a substantial non-tax purpose 
unless a substantial non-tax purpose exists apart from the 
financial accounting benefits.\201\
---------------------------------------------------------------------------
    \199\However, if the tax benefits are clearly contemplated and 
expected by the language and purpose of the relevant authority, such 
tax benefits should not be disallowed solely because the transaction 
results in a favorable accounting treatment. An example is the repealed 
foreign sales corporation rules.
    \200\This includes tax deductions or losses that are anticipated to 
be recognized in a period subsequent to the period the financial 
accounting benefit is recognized. For example, FAS 109 in some cases 
permits the recognition of financial accounting benefits prior to the 
period in which the tax benefits are recognized for income tax 
purposes.
    \201\Claiming that a financial accounting benefit constitutes a 
substantial non-tax purpose fails to consider the origin of the 
accounting benefit (i.e., reduction of taxes) and significantly 
diminishes the purpose for having a substantial non-tax purpose 
requirement. See, e.g., American Electric Power, Inc. v. U.S., 136 F. 
Supp. 2d 762, 791-92 (S.D. Ohio, 2001) (``AEP's intended use of the 
cash flows generated by the [corporate-owned life insurance] plan is 
irrelevant to the subjective prong of the economic substance analysis. 
If a legitimate business purpose for the use of the tax savings `were 
sufficient to breathe substance into a transaction whose only purpose 
was to reduce taxes, [then] every sham tax-shelter device might 
succeed,''') (citing Winn-Dixie v. Commissioner, 113 T.C. 254, 287 
(1999)).
---------------------------------------------------------------------------
      By requiring that a transaction be a ``reasonable means'' 
of accomplishing its non-tax purpose, the Senate amendment 
reiterates the present-law ability of the courts to bifurcate a 
transaction in which independent activities with non-tax 
objectives are combined with an unrelated item having only tax-
avoidance objectives in order to disallow the tax benefits of 
the overall transaction.\202\
---------------------------------------------------------------------------
    \202\See, e.g., ACM Partnership v. Commissioner, 157 F.3d at 256 
n.48.
---------------------------------------------------------------------------
Profit potential
      Under the Senate amendment, a taxpayer may rely on 
factors other than profit potential to demonstrate that a 
transaction results in a meaningful change in the taxpayer's 
economic position; the proposal merely sets forth a minimum 
threshold of profit potential if that test is relied on to 
demonstrate a meaningful change in economic position. If a 
taxpayer relies on a profit potential, however, the present 
value of the reasonably expected pre-tax profit must be 
substantial in relation to the present value of the expected 
net tax benefits that would be allowed if the transaction were 
respected.\203\ Moreover, the profit potential must exceed a 
risk-free rate of return. In addition, in determining pre-tax 
profit, fees and other transaction expenses and foreign taxes 
are treated as expenses.
---------------------------------------------------------------------------
    \203\Thus, a ``reasonable possibility of profit'' will not be 
sufficient to establish that a transaction has economic substance.
---------------------------------------------------------------------------
      In applying the profit potential test to a lessor of 
tangible property, depreciation, applicable tax credits (such 
as the rehabilitation tax credit and the low income housing tax 
credit), and any other deduction as provided in guidance by the 
Secretary are not taken into account in measuring tax benefits.
Transactions with tax-indifferent parties
      The Senate amendment also provides special rules for 
transactions with tax-indifferent parties. For this purpose, a 
tax-indifferent party means any person or entity not subject to 
Federal income tax, or any person to whom an item would have no 
substantial impact on its income tax liability. Under these 
rules, the form of a financing transaction will not be 
respected if the present value of the tax deductions to be 
claimed is substantially in excess of the presentvalue of the 
anticipated economic returns to the lender. Also, the form of a 
transaction with a tax-indifferent party will not be respected if it 
results in an allocation of income or gain to the tax-indifferent party 
in excess of the tax-indifferent party's economic gain or income or if 
the transaction results in the shifting of basis on account of 
overstating the income or gain of the tax-indifferent party.
Other rules
      The Secretary may prescribe regulations which provide (1) 
exemptions from the application of the proposal, and (2) other 
rules as may be necessary or appropriate to carry out the 
purposes of the proposal.
      No inference is intended as to the proper application of 
the economic substance doctrine under present law. In addition, 
except with respect to the economic substance doctrine, the 
bill shall not be construed as altering or supplanting any 
other common law doctrine (including the sham transaction 
doctrine), and the Senate amendment shall be construed as being 
additive to any such other doctrine.
      Effective date.--The Senate amendment applies to 
transactions entered into after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
20. Penalty for understatements attributable to transactions lacking 
        economic substance, etc. (sec. 5522 of the Senate amendment)

                              PRESENT LAW

General accuracy-related penalty
      An accuracy-related penalty under section 6662 applies to 
the portion of any underpayment that is attributable to (1) 
negligence, (2) any substantial understatement of income tax, 
(3) any substantial valuation misstatement, (4) any substantial 
overstatement of pension liabilities, or (5) any substantial 
estate or gift tax valuation understatement. If the correct 
income tax liability exceeds that reported by the taxpayer by 
the greater of 10 percent of the correct tax or $5,000 (or, in 
the case of corporations, by the lesser of (a) 10 percent of 
the correct tax (or $10,000 if greater) or (b) $10 million), 
then a substantial understatement exists and a penalty may be 
imposed equal to 20 percent of the underpayment of tax 
attributable to the understatement.\204\ Except in the case of 
tax shelters,\205\ the amount of any understatement is reduced 
by any portion attributable to an item if (1) the treatment of 
the item is supported by substantial authority, or (2) facts 
relevant to the tax treatment of the item were adequately 
disclosed and there was a reasonable basis for its tax 
treatment. The Treasury Secretary may prescribe a list of 
positions which the Secretary believes do not meet the 
requirements for substantial authority under this provision.
---------------------------------------------------------------------------
    \204\Sec. 6662.
    \205\A tax shelter is defined for this purpose as a partnership or 
other entity, an investment plan or arrangement, or any other plan or 
arrangement if a significant purpose of such partnership, other entity, 
plan, or arrangement is the avoidance or evasion of Federal income tax. 
Sec. 6662(d)(2)(C).
---------------------------------------------------------------------------
      The section 6662 penalty generally is abated (even with 
respect to tax shelters) in cases in which the taxpayer can 
demonstrate that there was ``reasonable cause'' for the 
underpayment and that the taxpayer acted in good faith.\206\ 
The relevant regulations provide that reasonable cause exists 
where the taxpayer ``reasonably relies in good faith on an 
opinion based on a professional tax advisor's analysis of the 
pertinent facts and authorities [that] . . . unambiguously 
concludes that there is a greater than 50-percent likelihood 
that the tax treatment of the item will be upheld if 
challenged'' by the IRS.\207\
---------------------------------------------------------------------------
    \206\Sec. 6664(c).
    \207\Treas. Reg. sec. 1.6662-4(g)(4)(i)(B); Treas. Reg. sec. 
1.6664-4(c).
---------------------------------------------------------------------------
Listed transactions and reportable avoidance transactions
            In general
      A separate accuracy-related penalty under section 6662A 
applies to ``listed transactions'' and to other ``reportable 
transactions'' with a significant tax avoidance purpose 
(hereinafter referred to as a ``reportable avoidance 
transaction''). The penalty rate and defenses available to 
avoid the penalty vary depending on whether the transaction was 
adequately disclosed.
      Both listed transactions and reportable transactions are 
allowed to be described by the Treasury department under 
section 6707A(c), which imposes a penalty for failure 
adequately to report such transactions under section 6011. A 
reportable transaction is defined as one that the Treasury 
Secretary determines is required to be disclosed because it is 
determined to have a potential for tax avoidance or 
evasion.\208\ A listed transaction is defined as a reportable 
transaction which is the same as, or substantially similar to, 
a transaction specifically identified by the Secretary as a tax 
avoidance transaction for purposes of the reporting disclosure 
requirements.\209\
---------------------------------------------------------------------------
    \208\Sec. 6707A(c)(1).
    \209\Sec. 6707A(c)(2).
---------------------------------------------------------------------------
            Disclosed transactions
      In general, a 20-percent accuracy-related penalty is 
imposed on any understatement attributable to an adequately 
disclosed listed transaction or reportable avoidance 
transaction.\210\ The only exception to the penalty is if the 
taxpayer satisfies a more stringent reasonable cause and good 
faith exception (hereinafter referred to as the ``strengthened 
reasonable cause exception''), which is described below. The 
strengthened reasonable cause exception is available only if 
the relevant facts affecting the tax treatment are adequately 
disclosed, there is or was substantial authority for the 
claimed tax treatment, and the taxpayer reasonably believed 
that the claimed tax treatment was more likely than not the 
proper treatment.
---------------------------------------------------------------------------
    \210\Sec. 6662A(a).
---------------------------------------------------------------------------
            Undisclosed transactions
      If the taxpayer does not adequately disclose the 
transaction, the strengthened reasonable cause exception is not 
available (i.e., a strict-liability penalty generally applies), 
and the taxpayer is subject to an increased penalty equal to 30 
percent of the understatement.\211\ However, a taxpayer will be 
treated as having adequately disclosed a transaction for this 
purpose if the IRS Commissioner has separately rescinded the 
separate penalty under section 6707A for failure to disclose a 
reportable transaction.\212\ The IRS Commissioner is authorized 
to do this only if the failure does not relate to a listed 
transaction and only if rescinding the penalty would promote 
compliance and effective tax administration.\213\
---------------------------------------------------------------------------
    \211\Sec. 6662A(c).
    \212\Sec. 6664(d).
    \213\Sec. 6707A(d).
---------------------------------------------------------------------------
      A public entity that is required to pay a penalty for an 
undisclosed listed or reportable transaction must disclose the 
imposition of the penalty in reports to the SEC for such 
periods as the Secretary shall specify. The disclosure to the 
SEC applies without regard to whether the taxpayer determines 
the amount of the penalty to be material to the reports in 
which the penalty must appear; and any failure to disclose such 
penalty in the reports is treated as a failure to disclose a 
listed transaction. A taxpayer must disclose a penalty in 
reports to the SEC once the taxpayer has exhausted its 
administrative and judicial remedies with respect to the 
penalty (or if earlier, when paid).\214\
---------------------------------------------------------------------------
    \214\Sec. 6707A(e).
---------------------------------------------------------------------------
            Determination of the understatement amount
      The penalty is applied to the amount of any 
understatement attributable to the listed or reportable 
avoidance transaction without regard to other items on the tax 
return. For purposes of this provision, the amount of the 
understatement is determined as the sum of: (1) the product of 
the highest corporate or individual tax rate (as appropriate) 
and the increase in taxable income resulting from the 
difference between the taxpayer's treatment of the item and the 
proper treatment of the item (without regard to other items on 
the tax return);\215\ and (2) the amount of any decrease in the 
aggregate amount of credits which results from a difference 
between the taxpayer's treatment of an item and the proper tax 
treatment of such item.
---------------------------------------------------------------------------
    \215\For this purpose, any reduction in the excess of deductions 
allowed for the taxable year over gross income for such year, and any 
reduction in the amount of capital losses which would (without regard 
to section 1211) be allowed for such year, shall be treated as an 
increase in taxable income. Sec. 6662A(b).
---------------------------------------------------------------------------
      Except as provided in regulations, a taxpayer's treatment 
of an item shall not take into account any amendment or 
supplement to a return if the amendment or supplement is filed 
after the earlier of when the taxpayer is first contacted 
regarding an examination of the return or such other date as 
specified by the Secretary.\216\
---------------------------------------------------------------------------
    \216\Sec. 6662A(e)(3).
---------------------------------------------------------------------------
            Strengthened reasonable cause exception
      A penalty is not imposed under the provision with respect 
to any portion of an understatement if it is shown that there 
was reasonable cause for such portion and the taxpayer acted in 
good faith. Such a showing requires: (1) adequate disclosure of 
the facts affecting the transaction in accordance with the 
regulations under section 6011;\217\ (2) that there is or was 
substantial authority for such treatment; and (3) that the 
taxpayer reasonably believed that such treatment was more 
likely than not the proper treatment. For this purpose, a 
taxpayer will be treated as having a reasonable belief with 
respect to the tax treatment of an item only if such belief: 
(1) is based on the facts and law that exist at the time the 
tax return (that includes the item) is filed; and (2) relates 
solely to the taxpayer's chances of success on the merits and 
does not take into account the possibility that (a) a return 
will not be audited, (b) the treatment will not be raised on 
audit, or (c) the treatment will be resolved through settlement 
if raised.\218\
---------------------------------------------------------------------------
    \217\See the previous discussion regarding the penalty for failing 
to disclose a reportable transaction.
    \218\Sec. 6664(d).
---------------------------------------------------------------------------
      A taxpayer may (but is not required to) rely on an 
opinion of a tax advisor in establishing its reasonable belief 
with respect to the tax treatment of the item. However, a 
taxpayer may not rely on an opinion of a tax advisor for this 
purpose if the opinion (1) is provided by a ``disqualified tax 
advisor'' or (2) is a ``disqualified opinion.''
            Disqualified tax advisor
      A disqualified tax advisor is any advisor who: (1) is a 
material advisor\219\ and who participates in the organization, 
management, promotion or sale of the transaction or is related 
(within the meaning of section 267(b) or 707(b)(1)) to any 
person who so participates; (2) is compensated directly or 
indirectly\220\ by a material advisor with respect to the 
transaction; (3) has a fee arrangement with respect to the 
transaction that is contingent on all or part of the intended 
tax benefits from the transaction being sustained; or (4) as 
determined under regulations prescribed by the Secretary, has a 
disqualifying financial interest with respect to the 
transaction.
---------------------------------------------------------------------------
    \219\The term ``material advisor'' means any person who provides 
any material aid, assistance, or advice with respect to organizing, 
managing, promoting, selling, implementing, or carrying out any 
reportable transaction, and who derives gross income in excess of 
$50,000 in the case of a reportable transaction substantially all of 
the tax benefits from which are provided to natural persons ($250,000 
in any other case). Sec. 6111(b)(1).
    \220\This situation could arise, for example, when an advisor has 
an arrangement or understanding (oral or written) with an organizer, 
manager, or promoter of a reportable transaction that such party will 
recommend or refer potential participants to the advisor for an opinion 
regarding the tax treatment of the transaction.
---------------------------------------------------------------------------
      A material advisor is considered as participating in the 
``organization'' of a transaction if the advisor performs acts 
relating to the development of the transaction. This may 
include, for example, preparing documents: (1) establishing a 
structure used in connection with the transaction (such as a 
partnership agreement); (2) describing the transaction (such as 
an offering memorandum or other statement describing the 
transaction); or (3) relating to the registration of the 
transaction with any federal, state or local government 
body.\221\ Participation in the ``management'' of a transaction 
means involvement in the decision-making process regarding any 
business activity with respect to the transaction. 
Participation in the ``promotion or sale'' of a transaction 
means involvement in the marketing or solicitation of the 
transaction to others. Thus, an advisor who provides 
information about the transaction to a potential participant is 
involved in the promotion or sale of a transaction, as is any 
advisor who recommends the transaction to a potential 
participant.
---------------------------------------------------------------------------
    \221\An advisor should not be treated as participating in the 
organization of a transaction if the advisor's only involvement with 
respect to the organization of the transaction is the rendering of an 
opinion regarding the tax consequences of such transaction. However, 
such an advisor may be a ``disqualified tax advisor'' with respect to 
the transaction if the advisor participates in the management, 
promotion or sale of the transaction (or if the advisor is compensated 
by a material advisor, has a fee arrangement that is contingent on the 
tax benefits of the transaction, or as determined by the Secretary, has 
a continuing financial interest with respect to the transaction).
---------------------------------------------------------------------------
            Disqualified opinion
      An opinion may not be relied upon if the opinion: (1) is 
based on unreasonable factual or legal assumptions (including 
assumptions as to future events); (2) unreasonably relies upon 
representations, statements, finding or agreements of the 
taxpayer or any other person; (3) does not identify and 
consider all relevant facts; or (4) fails to meet any other 
requirement prescribed by the Secretary.
            Coordination with other penalties
      To the extent a penalty on an understatement is imposed 
under section 6662A, that same amount of understatement is not 
also subject to the accuracy-related penalty under section 
6662(a) or to the valuation misstatement penalties under 
section 6662(e) or 6662(h). However, such amount of 
understatement is included for purposes of determining whether 
anyunderstatement (as defined in sec. 6662(d)(2)) is a 
substantial understatement as defined under section 6662(d)(1) and for 
purposes of identifying an underpayment under the section 6663 fraud 
penalty.
      The penalty imposed under section 6662A does not apply to 
any portion of an understatement to which a fraud penalty is 
applied under section 6663.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment imposes a penalty for an 
understatement attributable to any transaction that lacks 
economic substance (referred to in the statute as a ``non-
economic substance transaction understatement'').\222\ The 
penalty rate is 40 percent (reduced to 20 percent if the 
taxpayer adequately discloses the relevant facts in accordance 
with regulations prescribed under section 6011). No exceptions 
(including the reasonable cause or rescission rules) to the 
penalty are available (i.e., the penalty is a strict-liability 
penalty).
---------------------------------------------------------------------------
    \222\Thus, unlike the present-law accuracy-related penalty under 
section 6662A (which applies only to listed and reportable avoidance 
transactions), the new penalty under this provision applies to any 
transaction that lacks economic substance.
---------------------------------------------------------------------------
      A ``non-economic substance transaction'' means any 
transaction if (1) the transaction lacks economic substance (as 
defined in the earlier proposal regarding the economic 
substance doctrine),\223\ (2) the transaction was not respected 
under the rules relating to transactions with tax-indifferent 
parties (as described in the immediately preceding proposal 
regarding the economic substance doctrine),\224\ or (3) any 
similar rule of law. For this purpose, a similar rule of law 
would include, for example, an understatement attributable to a 
transaction that is determined to be a sham transaction.
---------------------------------------------------------------------------
    \223\The Senate amendment generally provides that in any case in 
which a court determines that the economic substance doctrine is 
relevant, a transaction has economic substance only if: (1) the 
transaction changes in a meaningful way (apart from Federal income tax 
effects) the taxpayer's economic position, and (2) the taxpayer has a 
substantial non-tax purpose for entering into such transaction and the 
transaction is a reasonable means of accomplishing such purpose. 
Specific other rules also apply. See ``Senate Amendment'' for the 
immediately preceding provision, ``Clarification of the economic 
substance doctrine.''
    \224\The Senate amendment provides that the form of a transaction 
that involves a tax-indifferent party will not be respected in certain 
circumstances.
---------------------------------------------------------------------------
      For purposes of the Senate amendment, the calculation of 
an ``understatement'' is made in the same manner as in the 
present law provision relating to accuracy-related penalties 
for listed and reportable avoidance transactions (sec. 6662A). 
Thus, the amount of the understatement under the proposal would 
be determined as the sum of (1) the product of the highest 
corporate or individual tax rate (as appropriate) and the 
increase in taxable income resulting from the difference 
between the taxpayer's treatment of the item and the proper 
treatment of the item (without regard to other items on the tax 
return),\225\ and (2) the amount of any decrease in the 
aggregate amount of credits which results from a difference 
between the taxpayer's treatment of an item and the proper tax 
treatment of such item. In essence, the penalty will apply to 
the amount of any understatement attributable solely to a non-
economic substance transaction.
---------------------------------------------------------------------------
    \225\For this purpose, any reduction in the excess of deductions 
allowed for the taxable year over gross income for such year, and any 
reduction in the amount of capital losses that would (without regard to 
section 1211) be allowed for such year, would be treated as an increase 
in taxable income.
---------------------------------------------------------------------------
      As in the case of the understatement penalty for 
reportable and listed transactions under present law section 
6662A(e)(3), except as provided in regulations, the taxpayer's 
treatment of an item will not take into account any amendment 
or supplement to a return if the amendment or supplement is 
filed after the earlier of the date the taxpayer is first 
contacted regarding an examination of such return or such other 
date as specified by the Secretary.
      As in the case of the understatement penalty for 
undisclosed reportable transactions under present law section 
6707A, a public entity that is required to pay a penalty under 
the provision (but in this case, regardless of whether the 
transaction was disclosed) must disclose the imposition of the 
penalty in reports to the SEC for such periods as the Secretary 
shall specify. The disclosure to the SEC applies without regard 
to whether the taxpayer determines the amount of the penalty to 
be material to the reports in which the penalty must appear, 
and any failure to disclose such penalty in the reports is 
treated as a failure to disclose a listed transaction. A 
taxpayer must disclose a penalty in reports to the SEC once the 
taxpayer has exhausted its administrative and judicial remedies 
with respect to the penalty (or if earlier, when paid).
      Regardless of whether the transaction was disclosed, once 
a penalty under the Senate amendment has been included in the 
first letter of proposed deficiency which allows the taxpayer 
an opportunity for administrative review in the IRS Office of 
Appeals, the penalty cannot be compromised for purposes of a 
settlement without approval of the Commissioner personally. 
Furthermore, the IRS is required to keep records summarizing 
the application of this penalty and providing a description of 
each penalty compromised under the proposal and the reasons for 
the compromise.
      Any understatement on which a penalty is imposed under 
the provision will not be subject to the accuracy-related 
penalty under section 6662 or under 6662A (accuracy-related 
penalties for listed and reportable avoidance transactions). 
However, an understatement under the Senate amendment is taken 
into account for purposes of determining whether any 
understatement (as defined in sec. 6662(d)(2)) is a substantial 
understatement as defined under section 6662(d)(1). The penalty 
imposed under the Senate amendment will not apply to any 
portion of an understatement to which a fraud penalty is 
applied under section 6663.
      Effective date.--The Senate amendment applies to 
transactions entered into after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
21. Denial of deduction for interest on underpayments attributable to 
        noneconomic substance transactions (sec. 5523 of the Senate 
        amendment)

                              PRESENT LAW

      No deduction for interest is allowed for interest paid or 
accrued on any underpayment of tax which is attributable to the 
portion of any reportable transaction understatement with 
respect to which the relevant facts were not adequately 
disclosed.\226\ The Secretary of the Treasury is authorized to 
define reportable transactions for this purpose.\227\
---------------------------------------------------------------------------
    \226\Sec. 162(m). Under section 6664(d)(2)(A), in such a case of 
nondisclosure, the taxpayer also is not entitled to the ``reasonable 
cause and good faith'' exception to the section 6662A penalty for a 
reportable transaction understatement.
    \227\See the description of present law under the immediately 
preceding proposal, ``Penalty for understatements attributable to 
transactions lacking economic substance, etc.''
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment extends the disallowance of interest 
deductions to interest paid or accrued on any underpayment of 
tax which is attributable to any noneconomic substance 
underpayment (whether or not disclosed).
      Effective date.--The Senate amendment applies to 
transactions after the date of enactment in taxable years 
ending after such date.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
22. Waiver of user fee for installment agreements using automated 
        withdrawals (sec. 5531 of the Senate amendment)

                              PRESENT LAW

      The Code authorizes the IRS to enter into written 
agreements with any taxpayer under which the taxpayer is 
allowed to pay taxes owed, as well as interest and penalties, 
in installment payments if the IRS determines that doing so 
will facilitate collection of the amounts owed.\228\
---------------------------------------------------------------------------
    \228\Sec. 6159.
---------------------------------------------------------------------------
      An installment agreement does not reduce the amount of 
taxes, interest, or penalties owed. Generally, during the 
period installment payments are being made, other IRS 
enforcement actions (such as levies or seizures) with respect 
to the taxes included in that agreement are held in abeyance.
      The IRS charges a $43 user fee if a request for an 
installment agreement is approved.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment waives the user fee for installment 
agreements in which the parties agree to the use of automated 
installment payments (such as automated debits from a bank 
account).
      Effective date.--The Senate amendment applies to 
agreements entered into on or after the date which is 180 days 
after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
23. Termination of installment agreements (sec. 5532 of the Senate 
        amendment)

                              PRESENT LAW

      The Code authorizes the IRS to enter into written 
agreements with any taxpayer under which the taxpayer is 
allowed to pay taxes owed, as well as interest and penalties, 
in installment payments, if the IRS determines that doing so 
will facilitate collection of the amounts owed.\229\ An 
installment agreement does not reduce the amount of taxes, 
interest, or penalties owed. Generally, during the period 
installment payments are being made, other IRS enforcement 
actions (such as levies or seizures) with respect to the taxes 
included in that agreement are held in abeyance.
---------------------------------------------------------------------------
    \229\Sec. 6159.
---------------------------------------------------------------------------
      Under present law, the IRS is permitted to terminate an 
installment agreement only if: (1) the taxpayer fails to pay an 
installment at the time the payment is due; (2) the taxpayer 
fails to pay any other tax liability at the time when such 
liability is due; (3) the taxpayer fails to provide a financial 
condition update as required by the IRS; (4) the taxpayer 
provides inadequate or incomplete information when applying for 
an installment agreement; (5) there has been a significant 
change in the financial condition of the taxpayer; or (6) the 
collection of the tax is in jeopardy.\230\
---------------------------------------------------------------------------
    \230\Sec. 6159(b)(2), (3), and (4).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment grants the IRS authority to 
terminate installment agreement when a taxpayer fails to timely 
make a required Federal tax deposit or fails to timely file a 
tax return (including extensions). Under the Senate amendment, 
the IRS may terminate an installment agreement even if the 
taxpayer remained current with payments under the installment 
agreement.
      Effective date.--The Senate amendment is effective for 
failures occurring on or after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
24. Office of Chief Counsel review of offers-in-compromise (sec. 5533 
        of the Senate amendment)

                              PRESENT LAW

      The IRS has the authority to settle a tax debt pursuant 
to an offer-in-compromise. IRS regulations provide that such 
offers can be accepted if the taxpayer is unable to pay the 
full amount of the tax liability and it is doubtful that the 
tax, interest, and penalties can be collected or there is doubt 
as to the validity of the actual tax liability. Offers to 
compromise tax liabilities of $50,000 or more can only be 
accepted if the reasons for the acceptance are documented in 
detail and supported by a written opinion from the IRS Chief 
Counsel.\231\
---------------------------------------------------------------------------
    \231\Sec. 7122.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment repeals the requirement that offers 
to compromise liabilities of $50,000 or more must be supported 
by a written opinion from the IRS Chief Counsel. Under the 
Senate amendment, written opinions must only be provided if the 
Secretary determines that an opinion is required with respect 
to a compromise.
      Effective date.--The Senate amendment applies to offers-
in-compromise submitted or pending on or after the date of 
enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
25. Partial payments required with submissions of offers-in-compromise 
        (sec. 5534 of the Senate amendment)

                              PRESENT LAW

      The IRS has the authority to compromise any civil or 
criminal case arising under the internal revenue laws.\232\ In 
general, taxpayers initiate this process by making an offer-in-
compromise, which is an offer by the taxpayer to settle an 
outstanding tax liability for less than the total amount due. 
The IRS currently imposes a user fee of $150 on most offers, 
payable upon submission of the offer to the IRS. Taxpayers may 
justify their offers on the basis of doubt as to collectibility 
or liability or on the basis of effective tax administration. 
In general, enforcement action is suspended during the period 
that the IRS evaluates an offer. In some instances, it may take 
the IRS 12 to 18 months to evaluate an offer.\233\ Taxpayers 
are permitted (but not required) to make a deposit with their 
offer; if the offer is rejected, the deposit is generally 
returned to the taxpayer. There are two general categories\234\ 
of offers-in-compromise, lump-sum offers and periodic payment 
offers. Taxpayers making lump-sum offers propose to make one 
lump-sum payment of a specified dollar amount in settlement of 
their outstanding liability. Taxpayers making periodic payment 
offers propose to make a series of payments over time (either 
short-term or long-term) in settlement of their outstanding 
liability.
---------------------------------------------------------------------------
    \232\Sec. 7122.
    \233\Olsen v. United States, 326 F. Supp. 2d 184 (D. Mass. 2004).
    \234\The IRS categorizes payment plans with more specificity, which 
is generally not significant for purposes of the proposal. See Form 
656, Offer in Compromise, page 6 of instruction booklet (revised July 
2004).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment requires a taxpayer to make partial 
payments to the IRS while the taxpayer's offer is being 
considered by the IRS. For lump-sum offers, taxpayers must make 
a down payment of 20 percent of the amount of the offer with 
any application. For purposes of this provision, a lump-sum 
offer includes single payments as well as payments made in five 
or fewer installments. For periodic payment offers, the 
provision requires the taxpayer to comply with the taxpayer's 
own proposed payment schedule while the offer is being 
considered. Offers submitted to the IRS that do not comport 
with these payment requirements are returned to the taxpayer as 
unprocessable and immediate enforcement action is permitted. 
The provision eliminates the user fee requirement for offers 
submitted with the appropriate partial payment.
      The Senate amendment also provides that an offer is 
deemed accepted if the IRS does not make a decision with 
respect to the offer within two years from the date the offer 
was submitted. With respect to offers submitted more than five 
years after the date of enactment, an offer is deemed accepted 
if the IRS does not make a decision with respect to the offer 
within 12 months of its submission.
      Effective date.--The Senate amendment applies to offers-
in-compromise submitted or pending on and after the date which 
is 60 days after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
26. Joint task force on offers-in-compromise (sec. 5535 of the Senate 
        amendment)

                              PRESENT LAW

      The IRS has the authority to compromise any civil or 
criminal case arising under the internal revenue laws.\235\ In 
general, taxpayers initiate this process by making an offer-in-
compromise, which is an offer by the taxpayer to settle an 
outstanding tax liability for less than the total amount due. 
The IRS currently imposes a user fee of $150 on most offers, 
payable upon submission of the offer to the IRS. Taxpayers may 
justify their offers on the basis of doubt as to collectibility 
or liability or on the basis of effective tax administration. 
In general, enforcement action is suspended during the period 
that the IRS evaluates an offer. Taxpayers are permitted (but 
not required) to make a deposit with their offer; if the offer 
is rejected, the deposit is generally returned to the taxpayer. 
There are two general categories\236\ of offers-in-compromise, 
lump-sum offers and periodic payment offers. Taxpayers making 
lump-sum offers propose to make one lump-sum payment of a 
specified dollar amount in settlement of their outstanding 
liability. Taxpayers making periodic payment offers propose to 
make a series of payments over time (either short-term or long-
term) in settlement of their outstanding liability.
---------------------------------------------------------------------------
    \235\Sec. 7122.
    \236\The IRS categorizes payment plans with more specificity, which 
is generally not significant for purposes of the proposal. See Form 
656, Offer in Compromise, page 6 of instruction booklet (revised July 
2004).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment requires the Secretary to establish 
a joint task force to review the IRS's determinations with 
respect to offers-in-compromise, including offers which raise 
equitable, public policy, or economic hardship as grounds for 
compromising a tax liability. The task force shall consist of 
one representative each from the Department of Treasury, the 
IRS Oversight Board, the Office of Chief Counsel, the Office of 
the Taxpayer Advocate, the Office of Appeals, and the IRS 
office charged with operating the offer-in-compromise program. 
The task force is required to report annually to Congress 
regarding its findings and recommendations with respect to the 
offer-in-compromise program. The provision requires the filing 
of annual reports beginning in 2006.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.

  O. Additional Revenue Provisions Relating to the Highway Trust Fund

1. Suspension of transfers from Highway Trust Fund for certain 
        repayments and credits (sec. 5601 of the Senate amendment)

                              PRESENT LAW

      Under sec. 9503(c)(2), certain transfers are made from 
the Highway Trust Fund to reimburse the General Fund, for 
amounts paid in respect of gasoline used on farms,\237\ amounts 
paid in respect of gasoline used for certain nonhighway 
purposes or by local transit systems,\238\ amounts relating to 
fuels not used for taxable purposes,\239\ and income tax 
credits allowed with respect to the nontaxable uses of 
fuels.\240\
---------------------------------------------------------------------------
    \237\Sec. 6420.
    \238\Sec. 6421.
    \239\Sec. 6427.
    \240\Sec. 34.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Section 9503(c)(2), relating to certain transfers from 
the Highway Trust Fund to the General Fund, is suspended 
between April 1, 2005 and October 1, 2005.
      Effective date.--The Senate amendment applies to amounts 
paid for which no transfer has been made before April 1, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
2. Dedicate gas guzzler tax to the Highway Trust Fund (sec. 5602 of the 
        Senate amendment)

                              PRESENT LAW

      Under present law, the Code imposes a tax (``the gas 
guzzler tax'') on automobiles that are manufactured primarily 
for use on public streets, roads, and highways and that are 
rated at 6,000 pounds unloaded gross vehicle weight or less. 
The tax applies to limousines without regard to the weight 
requirement. The tax is imposed on the sale by the manufacturer 
of each automobile of a model type with a fuel economy of 22.5 
miles per gallon or less. The tax range begins at $1,000 and 
increases to $7,700 for models with a fuel economy less than 
12.5 miles per gallon. Taxes imposed under this provision are 
deposited into the General Fund.

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment temporarily dedicates the gas 
guzzler tax (as modified by the Senate amendment\241\) to the 
Highway Trust Fund. The Highway Trust Fund will be credited 
with gas guzzler taxes imposed on or after July 1, 2005 and 
before October 1, 2005.
---------------------------------------------------------------------------
    \241\The Senate amendment repeals the tax as it applies to 
limousines rated at greater than 6,000 pounds unloaded gross vehicle 
weight.
---------------------------------------------------------------------------
      Effective date.--The Senate amendment applies to taxes 
imposed on or after July 1, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
3. Treatment of kerosene for use in aviation (sec. 5611 of the Senate 
        amendment and secs. 4041, 4081, 4082, 6427, 9502, and 9503 of 
        the Code)

                              PRESENT LAW

      In general, aviation-grade kerosene is taxed at a rate of 
21.8 cents per gallon upon removal of such fuel from a refinery 
or terminal (or entry into the United States) and on the sale 
of such fuel to any unregistered person unless there was a 
prior taxable removal or entry of such fuel.\242\ Aviation-
grade kerosene may be removed at a reduced rate, either 4.3 or 
zero cents per gallon, if the aviation fuel is removed directly 
into the fuel tank of an aircraft for use in commercial 
aviation\243\ or for a use that is exempt from the tax imposed 
by section 4041(c) (other than by reason of a prior imposition 
of tax),\244\ or is removed or entered as part of an exempt 
bulk transfer.\245\ These taxes are credited to the Airport and 
Airway Trust Fund.\246\ If taxed aviation-grade kerosene is 
used for a nontaxable use, a claim for credit or refund may be 
made.\247\ Such claims are paid from the Airport and Airway 
Trust Fund to the general fund of the Treasury.\248\ All other 
removals and entries of kerosene used for surface 
transportation are taxed at the diesel tax rate of 24.3 cents 
per gallon,\249\ and these taxes are credited to the Highway 
Trust Fund.\250\ If aviation-grade kerosene is taxed upon 
removal or entry but fraudulently diverted for surface 
transportation, the taxes remain in the Airport and Airway 
Trust Fund, and the Highway Trust Fund is not credited for the 
taxes on such fuel.
---------------------------------------------------------------------------
    \242\Sec. 4081(a)(2)(A)(iv). (An additional 0.1 cent is imposed on 
aviation-grade kerosene and credited to the Leaking Underground Storage 
Tank (``LUST'' Trust Fund.) Sec. 4081(a)(2)(B). The LUST Trust Fund tax 
is set to expire after September 30, 2005. Sec. 4081(d)(3).
    \243\Sec. 4081(a)(2)(C).
    \244\Sec. 4082(e). Exempt uses include use in commercial aviation 
as supplies for vessels or aircraft, which includes use by certain 
foreign air carriers and for the international flights of domestic 
carriers, secs. 4082(e), 6427(l)(2), and 4221(d)(3).
    \245\Sec. 4081(a)(1)(B).
    \246\Sec. 4081(a)(3).
    \247\Sec. 6427(l)(1) and 6427(l)(4). Nontaxable uses include: (1) 
use other than as fuel in an aircraft (such as use in heating oil); (2) 
use on a farm for farming purposes; (3) use in a military aircraft 
owned by the United States or a foreign country; (4) use in a domestic 
air carrier engaged in foreign trade or trade between the United States 
and any of its possessions; (5) use in a foreign air carrier engaged in 
foreign trade or trade between the United States and any of its 
possessions (but only if the foreign carrier's country of registration 
provides similar privileges to United States carriers); (6) exclusive 
use of a State or local government; (7) sales for export, or shipment 
to a United States possession; (8) exclusive use by a nonprofit 
educational organization; (9) use by an aircraft museum exclusively for 
the procurement, care, or exhibition of aircraft of the type used for 
combat or transport in World War II, and (10) use as a fuel in a 
helicopter or a fixed-wing aircraft for purposes of providing 
transportation with respect to which certain requirements are met. 
Secs. 4041(f)(2), 4041(g), 4041(h), 4041(l), and 6427(l)(2)(B)(i).
    \248\Sec. 9502(d)(2).
    \249\Sec. 4081(a)(2)(iii).
    \250\Sec. 9503(b)(1)(D).
---------------------------------------------------------------------------
      A special rule of present law addresses whether a removal 
from a refueler truck, tanker, or tank wagon may be treated as 
a removal from a terminal for purposes of determining whether 
aviation-grade kerosene is removed directly into the wing of an 
aircraft for use in commercial aviation, and so eligible for 
the 4.3 cents per gallon rate.\251\ For the special rule to 
apply, a qualifying truck, tanker, or tank wagon must be loaded 
with aviation-grade kerosene from a terminal: (1) that is 
located within a secured area of an airport, and (2) from which 
no vehicle licensed for highway use is loaded with aviation 
fuel, except in exigent circumstances identified by the 
Secretary in regulations. In order to qualify for the special 
rule, a refueler truck, tanker, or tank wagon must: (1) be 
loaded with fuel for delivery only into aircraft at the airport 
where the terminal is located; (2) have storage tanks, hose, 
and coupling equipment designed and used for the purposes of 
fueling aircraft; (3) not be registered for highway use; and 
(4) be operated by the terminal operator (who operates the 
terminal rack from which the fuel is unloaded) or by a person 
that makes a daily accounting to such terminal operator of each 
delivery of fuel from such truck, tanker, or tank wagon.
---------------------------------------------------------------------------
    \251\Sec. 4081(a)(3).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment imposes the kerosene tax rate of 
24.3 cents per gallon upon the entry or removal of aviation-
grade kerosene and on the sale of such fuel to any unregistered 
person unless there was a prior taxable removal or entry of the 
fuel. The present law reduced rates for removals of aviation-
grade kerosene directly into the fuel tank of an aircraft 
apply,\252\ except that in addition, under the proposal, if 
kerosene is removed directly into the fuel tank of an aircraft 
for use in aviation other than commercial aviation, the rate of 
tax is 21.8 cents per gallon.
---------------------------------------------------------------------------
    \252\For example, for kerosene removed directly into the fuel tank 
of an aircraft for use in commercial aviation by a person registered 
for such use, the rate of tax is 4.3 cents per gallon. Kerosene removed 
directly into the fuel tank of an aircraft for an exempt use is not 
taxed. For purposes of these reduced rates, it is intended that the 
following airports be included on the Secretary's list of airports that 
include a secured area in which a terminal is located. The airports are 
listed by airport name, and the terminal with respect to the airport is 
identified by terminal control number: Los Angeles International 
Airport (T-95-CA-4812) and Federal Express Corporation Memphis Airport 
(T-62-TN-2220).
---------------------------------------------------------------------------
      The Senate amendment provides that amounts may be claimed 
as credits or refunds for kerosene that is taxed at the 24.3 
cents per gallon rate and used for aviation purposes. If 
kerosene is used for noncommercial aviation, the amount is 2.5 
cents; if kerosene is used for commercial aviation, the amount 
is 20 cents; if kerosene is used for a use that is exempt from 
tax (as determined under present law), the amount is 24.3 
cents. Present law rules with respect to claims apply, except 
for claims with respect to kerosene used in noncommercial 
aviation, which may be claimed by the ultimate vendor. To be 
eligible to receive a payment, a vendor must be registered and 
must show either that the price of the fuel did not include the 
tax and the tax was not collected from the purchaser, the 
amount of tax was repaid to the ultimate purchaser, or the 
written consent of the purchaser to the making of the claim was 
filed with the Secretary.
      Under the Senate amendment, all taxes collected at the 
24.3 cents per gallon rate (under section 4081) initially are 
credited to the Highway Trust Fund. The Senate amendment 
requires the Secretary to transfer from time to time from the 
Highway Trust Fund into the Airport and Airway Trust Fund 
amounts equivalent to the taxes received under sections 4041 
and 4081 with respect to fuels used in a nontaxable use to the 
extent such amounts exceed the amounts paid with respect to 
such use. Transfers are required to be made with respect to 
taxes received on or after October 1, 2005, and before October 
1, 2011.
      Effective date.--The Senate amendment is effective for 
fuels or liquids removed, entered, or sold after September 30, 
2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with the following modifications.
      The conference agreement provides that the rate of tax on 
kerosene is 21.8 cents per gallon if the kerosene is removed 
from refueler trucks, tankers, and tank wagons that are loaded 
with fuel from a terminal that is located in an airport, 
without regard to whether the terminal is located in a secured 
area of the airport, as long as all the other requirements of 
the present law special rule related to such trucks, tankers, 
and wagons are met. The conference agreement clarifies that the 
rate of tax upon removal of kerosene is zero if the removal is 
from a refueler truck, tanker, or tank wagon that meets all of 
the requirements of present law, including the security 
requirement, the kerosene is delivered directly into the fuel 
tank of an aircraft, and the kerosene is exempt from the tax 
imposed by section 4041(c) (other than by prior imposition of 
tax).
      The Senate amendment is clarified to provide that claims 
for payment for kerosene that is used for noncommercial 
aviation may be claimed by the ultimate vendor only.
      The conference agreement clarifies the transfer mechanism 
for payments from the Highway Trust Fund to the Airport and 
Airway Trust Fund to provide that such transfers shall be made 
monthly in amounts equivalent to 21.8 cents per gallon for 
claims made with respect to kerosene used for noncommercial 
aviation purposes, 4.3 cents per gallon for claims made with 
respect to kerosene used for commercial aviation purposes, and 
the amounts attributable to taxes received with respect to 
amounts allowed as a credit under section 34 for kerosene used 
for aviation purposes. The conference agreement requires that 
transfers be made on the basis of estimates by the Secretary, 
with proper adjustments to be made subsequently to the extent 
prior estimates were in excess of or less than the amounts 
required to be transferred. The conference agreement clarifies 
that the Airport and Airway Trust Fund does not reimburse the 
General Fund for claims with respect to kerosene that is taxed 
at the 24.3 cents per gallon rate and used for aviation 
purposes, or with respect to credits allowed under section 34 
to the extent the Highway Trust Fund is credited initially with 
the amount of tax with respect to which the credit is claimed.
4. Repeal of ultimate vendor refund claims with respect to farming 
        (sec. 5612 of the Senate amendment and sec. 6427(l) of the 
        Code)

                              PRESENT LAW

In general--ultimate purchaser refunds for nontaxable uses
      In general, the Code provides that if diesel fuel or 
kerosene on which tax has been imposed is used by any person in 
a nontaxable use, the Secretary is to refund (without interest) 
to the ultimate purchaser the amount of tax imposed.\253\ The 
refund is made to the ultimate purchaser of the taxed fuel by 
either income tax credit or refund payment.\254\ Not more than 
one claim may be filed by any person with respect to fuel used 
during its taxable year. However, there are exceptions to this 
rule.
---------------------------------------------------------------------------
    \253\Sec. 6427(l)(1).
    \254\Generally, refund payments are only made to governmental units 
and tax-exempt organizations. Sec. 6427(k). The quarterly payment claim 
rules for ultimate purchasers are an exception to this rule.
---------------------------------------------------------------------------
      An ultimate purchaser may make a claim for a refund 
payment for any quarter of a taxable year for which the 
purchaser can claim at least $750.\255\ If the purchaser cannot 
claim at least $750 at the end of quarter, the amount can be 
carried over to the next quarter to determine if the purchaser 
can claim at least $750. If the purchaser cannot claim at least 
$750 at the end of the taxable year, the purchaser must claim a 
credit on the person's income tax return.
---------------------------------------------------------------------------
    \255\Sec. 6427(i)(2).
---------------------------------------------------------------------------
      As discussed below, these ultimate purchaser refund rules 
do not apply to diesel fuel or kerosene used on a farm. The 
Code precludes the ultimate purchaser from claiming a refund 
for such use. Instead, the refund claims are made by registered 
vendors as described below.
Special vendor rule for use on a farm for farming purposes
      In the case of diesel fuel or kerosene used on a farm for 
farming purposes refund payments are paid to the ultimate, 
registered vendors (``registered ultimate vendor'') of such 
fuels. Thus a registered ultimate vendor that sells undyed 
diesel fuel or undyed kerosene to any of the following may make 
a claim for refund: (1) the owner, tenant, operator of a farm 
for use by that person on a farm for farming purposes; and (2) 
a person other than the owner, tenant, or operator of a farm 
for use by that person on a farm in connection with 
cultivating, raising or harvesting. The registered ultimate 
vendor is the only person who may make the claim with respect 
to diesel fuel or kerosene used on a farm for farming purposes. 
The purchaser of the fuel cannot make the claim for refund.
      Registered ultimate vendors may make weekly claims if the 
claim is at least $200 ($100 or more in the case of 
kerosene).\256\ If not paid within 45 days (20 days for an 
electronic claim), the Secretary is to pay interest on the 
claim.
---------------------------------------------------------------------------
    \256\Sec. 6427(i)(4)(A).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment repeals ultimate vendor refund 
claims in the case of diesel fuel or kerosene used on a farm 
for farming purposes. Thus, refunds for taxed diesel fuel or 
keroseneused on a farm for farming purposes would be paid to 
the ultimate purchaser under the rules applicable to nontaxable uses of 
diesel fuel or kerosene.
      Effective date.--The Senate amendment is effective for 
sales after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
5. Refunds of excise taxes on exempt sales of taxable fuel by credit 
        card (sec. 5613 of the Senate amendment and secs. 6206, 6416, 
        6427, and 6675 of the Code)

                              PRESENT LAW

      Under the rules in effect prior to 2005, in the case of 
gasoline on which tax had been paid and sold to a State or 
local government, to a nonprofit educational organization, for 
supplies for vessels or aircraft, for export, or for the 
production of special fuels, the wholesale distributor that 
sold such gasoline was treated as the only person who paid the 
tax and thereby was the proper claimant for a credit or refund 
of the tax paid. A ``wholesale distributor'' included any 
person, other than an importer or producer, who sold gasoline 
to producers, retailers, or to users who purchased in bulk 
quantities and accepted delivery into bulk storage tanks. A 
wholesale distributor also included any person who made retail 
sales of gasoline at 10 or more retail motor fuel outlets.
      Under a special administrative exception to these rules, 
a sale of gasoline charged on an oil company credit card issued 
to an exempt person described above is not considered a direct 
sale by the person actually selling the gasoline to the 
ultimate purchaser if the seller receives a reimbursement of 
the tax from the oil company (or indirectly through an 
intermediate vendor). Thus, the person that actually paid the 
tax, in most cases the oil company, is treated as the only 
person eligible to make the refund claim.\257\
---------------------------------------------------------------------------
    \257\Notice 89-29, 1989-1 C.B. 669.
---------------------------------------------------------------------------
      The American Jobs Creation Act of 2004 (``AJCA'')\258\ 
modified the pre-existing statutory rules with respect to 
certain sales. Under AJCA, if a registered ultimate vendor 
purchases any gasoline on which tax has been paid and sells 
such gasoline to a State or local government or to a nonprofit 
educational organization, for its exclusive use, such ultimate 
vendor is treated as the only person who paid the tax and 
thereby is the proper claimant for a credit or refund of the 
tax paid.\259\ However, AJCA did not change the special 
administrative oil company credit card rule described 
above.\260\
---------------------------------------------------------------------------
    \258\Pub. L. No. 108-357.
    \259\AJCA, sec. 865(a), effective January 1, 2005. See Code sec. 
6416(a)(4)(A).
    \260\In Notice 2005-4, 2005-2 I.R.B. 289, the Treasury Department 
confirmed that it would continue to apply the oil company credit card 
rule until March 1, 2005. On February 28, 2005, the Treasury Department 
issued Notice 2005-24, 2005-12 I.R.B. 1, modifying Notice 2005-4. 
Notice 2005-24 stated that the oil company credit card rule will remain 
in effect until it is modified by a statutory change or by future 
guidance.
---------------------------------------------------------------------------
      In addition, under AJCA, refund claims made by such an 
ultimate vendor may be filed for any period of at least one 
week for which $200 or more is payable. Any such claim must be 
filed on or before the last day of the first quarter following 
the earliest quarter included in the claim. The Secretary must 
pay interest on refunds unpaid after 45 days. If the refund 
claim was filed by electronic means, and the ultimate vendor 
has certified to the Secretary for the most recent quarter of 
the taxable year that all ultimate purchasers of the vendor are 
certified for highway exempt use as a State or local government 
or a nonprofit educational organization, refunds unpaid after 
20 days must be paid with interest.\261\
---------------------------------------------------------------------------
    \261\Sec. 6146(a)(4)(B).
---------------------------------------------------------------------------
      In the case of diesel fuel or kerosene used in a 
nontaxable use, the ultimate purchaser is generally the only 
person entitled to claim a refund of excise tax.\262\ However, 
in the case of diesel fuel or kerosene used on a farm for 
farming purposes or by a State or local government, aviation-
grade kerosene, and certain nonaviation-grade kerosene, an 
ultimate vendor may claim the refund if the ultimate vendor is 
registered and bears the tax (or receives the written consent 
of the ultimate purchaser to claim the refund).\263\
---------------------------------------------------------------------------
    \262\Sec. 6427(l)(1).
    \263\See sec. 6427(l)(4)(B), (l)(5)(B), and (l)(5)(C), and sec. 
6416(a)(1)(A), (B), and (D).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment replaces the oil company credit card 
rule with a new set of rules applicable to certain credit card 
sales. The new rules apply to all taxable fuels. Under the 
Senate amendment, if a purchase of taxable fuel is made by 
means of a credit card issued to an ultimate purchaser that is 
either a State or local government or, in the case of gasoline, 
a nonprofit educational organization, for its exclusive use, a 
credit card issuer who is registered and who extends such 
credit to the ultimate purchaser with respect to such purchase 
shall be the only person entitled to apply for a credit or 
refund if the following two conditions are met: (1) such 
registered person has not collected the amount of the tax from 
the purchaser, or has obtained thewritten consent of the 
ultimate purchaser to the allowance of the credit or refund; and (2) 
such registered person has either repaid or agreed to repay the amount 
of the tax to the ultimate vendor, has obtained the written consent of 
the ultimate vendor to the allowance of the credit or refund, or has 
otherwise made arrangements that directly or indirectly provide the 
ultimate vendor with reimbursement of such tax. It is anticipated that 
such indirect arrangements may consist of the contractual undertaking 
of the relevant oil company to the credit card issuer that it will pay 
the amount of the tax to the ultimate vendor, and the corresponding 
contractual undertaking of the oil company to the ultimate vendor.
      A credit card issuer entitled to claim a refund under the 
provision is responsible for collecting and supplying all the 
appropriate documentation currently required from ultimate 
vendors. The present-law refund amount and timing rules 
applicable to ultimate vendors, including the special rules for 
electronic claims, apply to refunds to credit card issuers 
under the provision.\264\
---------------------------------------------------------------------------
    \264\See sec. 6416(a)(4)(B). Present law would continue to apply to 
the timing of ultimate purchaser claims. Under present law, claims by 
an ultimate purchaser are generally made on an annual basis. However, 
claims aggregating over $750 may be made quarterly. See secs. 6421(d) 
and 6427(i)(2).
---------------------------------------------------------------------------
      The Senate amendment also conforms present-law penalty 
provisions to the new rules.
      The Senate amendment does not change the present-law 
rules applicable to non-credit card purchases.
      Effective date.--The Senate amendment is effective for 
sales after December 31, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
with the following modifications.
      Under the conference agreement, if a credit card issuer 
is not registered, or if either condition (1) or (2) described 
above is not met (or if the ultimate purchaser is not exempt), 
then the credit card issuer is required to collect an amount 
equal to the tax from the ultimate purchaser and only an 
(exempt) ultimate purchaser may claim a credit or payment from 
the IRS.\265\ The conferees intend that tax-paid fuel shall not 
be sold tax free to an exempt entity by means of a credit card 
unless the credit card issuer is registered. An unregistered 
credit card issuer that does not collect an amount equal to the 
tax from the exempt entity is liable for present-law penalties 
for failure to register.\266\ The present-law regulatory 
authority of the Secretary to prescribe the form, manner, 
terms, conditions of registration, and conditions of use of 
registration extends to registration under this provision.\267\ 
Such authority may include rules that preclude persons which 
are registered credit card issuers from issuing nonregistered 
credit cards.\268\ The conferees also intend that the IRS will 
review the registration of a registered credit card issuer that 
has engaged in multiple or flagrant violations of the 
requirements of the provision.
---------------------------------------------------------------------------
    \265\Sec. 6421(c).
    \266\See secs. 6719, 7232, and 7272.
    \267\Sec. 4101(a)(1).
    \268\Because registration occurs at the ``person'' (legal entity) 
level, it is anticipated that a credit card issuer will use a separate 
(registered) entity for the issuance of credit cards entitled to the 
benefits of this provision.
---------------------------------------------------------------------------
6. Recertification of exempt status (sec. 5614 of the Senate amendment)

                              PRESENT LAW

      If gasoline is sold to any person for an exempt use, an 
ultimate purchaser that has borne the tax is entitled to claim 
a refund.\269\ However, a registered ultimate vendor is the 
appropriate person to claim a refund of Federal excise taxes on 
gasoline sold to a State or local government or to a nonprofit 
educational organization.\270\
---------------------------------------------------------------------------
    \269\Sec. 6421(c).
    \270\Sec. 6416(a)(4)(A).
---------------------------------------------------------------------------
      In general, in order to claim a refund of Federal excise 
taxes on gasoline (and on other articles subject to 
manufacturers excise taxes under Chapter 32 of the Code) sold 
to a State or local government or to a nonprofit educational 
organization, for its exclusive use, a claimant must submit a 
statement indicating that it possesses evidence of the exempt 
use giving rise to the overpayment of tax.\271\ Such evidence 
consists of a certificate executed and signed by the ultimate 
purchaser, and must identify the article, show the name and 
address of the ultimate purchaser, and state the exempt use 
made or to be made of the article. In the case where the 
certificate sets forth the use to be made of the article, 
rather than its actual use, it must show that the ultimate 
purchaser has agreed to notify the claimant if the article is 
not in fact used as specified in the certificate.\272\
---------------------------------------------------------------------------
    \271\Treas.Reg. sec. 48.6416(b)(2)-3(a)(5).
    \272\Treas. Reg. sec. 48.6416(b)(2)-3(b)(1)(i) and (ii). The 
certificate must also contain a statement that the ultimate purchaser 
understands that it and any other party may, for fraudulent use of the 
certificate, be subject under section 7201 to a fine of not more than 
$10,000, or imprisonment for not more than 5 years, or both, together 
with the costs of prosecution.
---------------------------------------------------------------------------
      However, if the article to which the claim relates has 
passed through a chain of sales from the claimant to the 
ultimate purchaser, a certificate executed and signed by the 
ultimate vendor is sufficient to document the exempt use. The 
ultimate vendor certificate must contain the exempt sales 
information, and a statement that it possesses the ultimate 
purchaser certificates and will forward them to the claimant 
within three years from the date of the statement. An ultimate 
vendor statement may be made covering no more than 12 
consecutive calendar quarters.\273\
---------------------------------------------------------------------------
    \273\Treas. Reg. sec. 48.6416(b)(2)-3(b)(1)(i) and (iii).
---------------------------------------------------------------------------
      In general, an ultimate purchaser is the proper party to 
claim a refund of Federal excise tax on diesel fuel or kerosene 
used by any person in a nontaxable use.\274\ However, in the 
case of diesel or kerosene used by a State or local government, 
the ultimate vendor is the proper person if such vendor is 
registered and has borne the tax (or receives the written 
consent of the ultimate purchaser to claim the refund).\275\ A 
registered ultimate vendor claiming a refund under this 
provision must provide a statement that it has in its 
possession an unexpired exemption certificate of the purchaser 
and that the claimant has no reason to believe any information 
in the certificate is false.\276\
---------------------------------------------------------------------------
    \274\Sec. 6427(l)(1). In the case of diesel fuel or kerosene, a 
nontaxable use is any use which is exempt from the tax imposed by 
section 4041(a)(1) other than by reason of a prior imposition of tax. 
Sec. 6427(l)(2).
    \275\Sec. 6427(1)(5)(C).
    \276\Treas. Reg. sec. 48.6427-9(e)(1)(vi).
---------------------------------------------------------------------------
      A State or local government includes any political 
subdivision of a State, or the District of Columbia.\277\ A 
nonprofit educational organization means an educational 
organization which normally maintains a regular faculty and 
curriculum and normally has a regularly enrolled body of pupils 
or students in attendance at the place where its educational 
activities are regularly carried on, and which either is exempt 
from income tax under section 501(a) or is a school operated as 
an activity of an organization described in section 501(c)(3) 
which is exempt from income tax under section 501(a).\278\
---------------------------------------------------------------------------
    \277\Sec. 4221(d)(4); Treas. Reg. sec. 48.6416(b)(2)-2(d).
    \278\Sec. 4221(d)(5); Treas. Reg. sec. 48.6416(b)(2)-2(e).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Under the Senate amendment, additional documentation 
requirements are imposed with respect to purchases of taxable 
fuel and certain other articles on a nontaxable basis by State 
or local governments and nonprofit educational organizations 
and with respect to refunds or credits by any person with 
respect to such purchases. The Senate amendment covers Federal 
excise taxes on sales of liquids for use as a fuel (including 
taxable fuels), compressed natural gas (except if sold for use 
on school buses or intracity buses), heavy trucks and trailers, 
recreational equipment (bows and arrows, sport fishing 
equipment and firearms), and tires (except for tires sold for 
use on qualified buses). The Senate amendment does not cover 
Federal excise taxes on sales of coal and vaccines.
      In addition to present-law documentation requirements, in 
order for a State or local governmental entity to claim 
exemption from tax on sales of such covered articles, or for 
any person to claim a credit or refund based upon the State or 
local governmental status of the purchaser of such articles, 
the State must certify that the article is sold to a State or 
local government for the exclusive use of a State or local 
government. In the case of articles sold to a qualified 
volunteer fire department, as defined in section 
150(e)(2),\279\ the State must so certify, and the article must 
be sold for the exclusive use of the qualified volunteer fire 
department.
---------------------------------------------------------------------------
    \279\In general, as defined in section 150(e)(2), a qualified 
volunteer fire department is any organization organized and operated to 
provide firefighting or emergency medical services for persons in an 
area that is not provided with any other firefighting services, and 
which is required by written agreement with the political subdivision 
to furnish firefighting services in such area.
---------------------------------------------------------------------------
      In order for a nonprofit educational organization to 
claim exemption from tax on such articles, or for any person to 
claim a credit or refund of tax on such articles based upon the 
nonprofit educational status of an organization, the State in 
which such organization is providing educational services must 
certify that such organization is in good standing.
      For purposes of this provision, an Indian tribal 
government is treated as a State.\280\ Consequently, it is 
intended that the applicable Indian tribal government will 
provide the certifications under this provision.
---------------------------------------------------------------------------
    \280\See sec. 7871(a)(2). Section 7871(b) provides that in order 
for an excise tax exemption (with respect to chapter 31 or 32) to apply 
to an Indian tribal government, the transaction must involve the 
exercise of an essential governmental function of the Indian tribal 
government.
---------------------------------------------------------------------------
      It is intended that the certifications required under 
this provision will be provided by exempt purchasers to the 
refund claimants (in addition to documentation required under 
present law), and that the IRS may require that such 
certifications be submitted as part of the claims. The 
Secretary may prescribe forms for such certifications.
      Effective date.--The Senate amendment is effective for 
all sales after December 31, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
7. Reregistration in event of change in ownership (sec. 5615 of the 
        Senate amendment and secs. 4101, 6719, 7232, and 7272 of the 
        Code)

                              PRESENT LAW

      Blenders, enterers, pipeline operators, position holders, 
refiners, terminal operators, and vessel operators are required 
to register with the Secretary with respect to fuels taxes 
imposed by sections 4041(a)(1) and 4081.\281\ An assessable 
penalty for failure to register is $10,000 for each initial 
failure, plus $1,000 per day that the failure continues.\282\ A 
non-assessable penalty for failure to register is $10,000.\283\ 
A criminal penalty of $10,000, or imprisonment of not more than 
five years, or both, together with the costs of prosecution 
also applies to a failure to register and to certain false 
statements made in connection with a registration 
application.\284\ Treasury regulations require that a 
registrant notify the Secretary of any change (such as a change 
in ownership) in the information a registrant submitted in 
connection with its application for registration within 10 days 
of the change.\285\ The Secretary has the discretion to revoke 
the registration of a noncompliant registrant.
---------------------------------------------------------------------------
    \281\Sec. 4101; Treas. Reg. secs. 48.4101-1(a) and 48.4101-1(c)(1).
    \282\Sec. 6719.
    \283\Sec. 7272(a).
    \284\Sec. 7232.
    \285\Treas. Reg. sec. 48.4101-1(h)(1)(v).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment requires that upon a change in 
ownership of a registrant, the registrant must reregister with 
the Secretary, as provided by the Secretary. A change in 
ownership means that after a transaction (or series of related 
transactions), more than 50 percent of the ownership interests 
in, or assets of, a registrant are held by persons other than 
persons (or persons related thereto) who held more than 50 
percent of such interests or assets before the transaction (or 
series of related transactions). The provision does not apply 
to companies, the stock of which is regularly traded on an 
established securities market. There is an assessable penalty 
for failure to reregister of $10,000 for each initial failure, 
plus $1,000 per day that the failure continues, and a criminal 
penalty for failure to reregister of $10,000, or imprisonment 
of not more than five years, or both, together with the costs 
of prosecution. The Senate amendment applies to changes in 
ownership occurring prior to, on, or after the date of 
enactment.
      Effective date.--The Senate amendment is effective for 
actions or failures to act after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment and 
in addition makes the penalties for failure to reregister 
identical to the present-law penalties for failure to register 
by also providing for a non-assessable penalty for failure to 
reregister of $10,000.
8. Reconciliation of on-loaded cargo to entered cargo (sec. 5616 of the 
        Senate amendment and sec. 343 of the Trade Act of 2002)

                              PRESENT LAW

      The Trade Act of 2002 directed the Secretary to 
promulgate regulations pertaining to the electronic 
transmission to the Bureau of Customs and Border Patrol 
(``Customs'') of information pertaining to cargo destined for 
importation into the United States or exportation from the 
United States, prior to such importation or exportation.\286\ 
The Department of the Treasury issued final regulations on 
October 31, 2002. The regulations require the advance and 
accurate presentation of certain manifest information prior to 
lading at the foreign port and encourage the presentation of 
this information electronically. Customs must receive from the 
carrier the vessel's Cargo Declaration (Customs Form 1302) or 
the electronic equivalent within 24 hours before such cargo is 
laden aboard the vessel at the foreign port.\287\
---------------------------------------------------------------------------
    \286\Sec. 343(a) of Pub. L. No. 107-210 (2002).
    \287\19 CFR sec. 4.7(b)(2).
---------------------------------------------------------------------------
      Certain carriers of bulk cargo, however, are exempt from 
these filing requirements. Such bulk cargo includes that 
composed of free flowing articles such as oil, grain, coal, ore 
and the like, which can be pumped or run through a chute or 
handled by dumping.\288\ Thus, taxable fuels are not required 
to file the Cargo Declaration within 24 hours before such cargo 
is laden aboard the vessel at the foreign port. Instead the 
Cargo Declaration must be filed within 24 hours prior arrival 
in the United States.
---------------------------------------------------------------------------
    \288\19 CFR sec. 4.7(b)(4)(i)(A).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides that not later than one 
year after the date of enactment of this paragraph, the 
Secretary of Homeland Security, together with the Secretary of 
the Treasury, is to establish an electronic data interchange 
system through which Customs shall transmit to the Internal 
Revenue Service information pertaining to cargoes of taxable 
fuels (as defined in section 4083) that Customs has obtained 
electronically under its regulations adopted to carry out the 
Trade Act of 2002 requirement. For this purpose, not later than 
one year after the date of enactment, all filers of required 
cargo information for such taxable fuels, as defined, must 
provide such information to Customs through its approved 
electronic data interchange system.
      Effective date.--The Senate amendment is effective upon 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.
9. Registration of operators of deep-draft vessels (sec. 5617 of Senate 
        amendment and secs. 4081 and 4101 of the Code)

                              PRESENT LAW

      Blenders, enterers, pipeline operators, position holders, 
refiners, terminal operators, and vessel operators are required 
to register with the Secretary with respect to fuels taxes 
imposed by sections 4041(a)(1) and 4081.\289\ Treasury 
regulations define a vessel operator as any person that 
operates a vessel within the bulk transfer/terminal system, 
excluding deep-draft ocean-going vessels.\290\ Accordingly, 
operators of deep-draft ocean-going vessels are not required to 
register. A deep-draft ocean-going vessel is a vessel that is 
designed primarily for use on the high seas that has a draft of 
more than 12 feet.\291\
---------------------------------------------------------------------------
    \289\Sec. 4101; Treas. Reg. sec. 48.4101-1(a) and 48.4101-1(c)(1).
    \290\Treas. Reg. sec. 48.4101-1(b)(8).
    \291\Sec. 4042(c)(1).
---------------------------------------------------------------------------
      An assessable penalty for failure to register is $10,000 
for each initial failure, plus $1,000 per day that the failure 
continues.\292\ A non-assessable penalty for failure to 
register is $10,000.\293\ A criminal penalty of $10,000, or 
imprisonment of not more than five years, or both, together 
with the costs of prosecution also applies to a failure to 
register and to certain false statements made in connection 
with a registration application.\294\
---------------------------------------------------------------------------
    \292\Sec. 6719.
    \293\Sec. 7272(a).
    \294\Sec. 7232.
---------------------------------------------------------------------------
      In general, gasoline, diesel fuel, and kerosene 
(``taxable fuel'') are taxed upon removal from a refinery or a 
terminal.\295\ Tax also is imposed on the entry into the United 
States of any taxable fuel for consumption, use, or 
warehousing. The tax does not apply to any removal or entry of 
a taxable fuel transferred in bulk (a ``bulk transfer'') by 
pipeline or vessel to a terminal or refinery if the person 
removing or entering the taxable fuel, the operator of such 
pipeline or vessel, and the operator of such terminal or 
refinery are registered with the Secretary as required by 
section 4101.\296\ Transfer to an unregistered party subjects 
the transfer to tax.
---------------------------------------------------------------------------
    \295\Sec. 4081(a)(1)(A).
    \296\Sec. 4081(a)(1)(B). The sale of a taxable fuel to an 
unregistered person prior to a taxable removal or entry of the fuel is 
subject to tax. Sec. 4081(a)(1)(A).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment provides that the Secretary of the 
Treasury shall require the registration of every operator of a 
deep-draft ocean going vessel. Under the provision, if a deep-
draft ocean-going vessel is used as part of a bulk transfer of 
taxable fuel, the transfer is subject to tax unless the 
operator of such vessel is registered.
      Effective date.--The Senate amendment is effective on the 
date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment 
except that an operator of a deep-draft ocean-going vessel is 
not required to register under the provision if such operator 
uses such vessel exclusively for purposes of the entry of the 
taxable fuel. For purposes of the bulk transfer exemption, a 
deep-draft ocean-going vessel operator is not required to be 
registered for the exemption to be available with respect to 
the entry of taxable fuel by such vessel.
10. Gasoline blend stocks and kerosene (sec. 5618 of the Senate 
        amendment and sec. 4083 of the Code)

                              PRESENT LAW

In general
      A ``taxable fuel'' is gasoline, diesel fuel (including 
any liquid, other than gasoline, which is suitable for use as a 
fuel in a diesel-powered highway vehicle or train), and 
kerosene.\297\ An excise tax is imposed upon (1) the removal of 
any taxable fuel from a refinery or terminal, (2) the entry of 
any taxable fuel into the United States, or (3) the sale of any 
taxable fuel to any person who is not registered with the IRS 
to receive untaxed fuel, unless there was a prior taxable 
removal or entry.\298\ The tax does not apply to any removal or 
entry of taxable fuel transferred in bulk to a terminal or 
refinery if the person removing or entering the taxable fuel, 
the operator of such pipeline or vessel, and the operator of 
such terminal or refinery are registered with the 
Secretary.\299\
---------------------------------------------------------------------------
    \297\Sec. 4083(a).
    \298\Sec. 4081(a)(1).
    \299\Sec. 4081(a)(1)(B).
---------------------------------------------------------------------------
Gasoline blend stocks
            Definition
      Under the regulations, ``gasoline'' includes all products 
commonly or commercially known or sold as gasoline and are 
suitable for use as a motor fuel, and that have an octane 
rating of 75 or more. Gasoline also includes, to the extent 
provided in regulations, gasoline blend stocks and products 
commonly used as additives in gasoline. By regulation, the 
Treasury has identified certain products as gasoline blend 
stocks,\300\ however, the term ``gasoline blend stocks'' does 
not include any product that cannot be blended into gasoline 
without further processing or fractionation (``off-spec 
gasoline'').
---------------------------------------------------------------------------
    \300\Treas. Reg. sec. 48.4081-1(c)(3)(ii). The term ``gasoline 
blend stocks'' means alkylate; butane; catalytically cracked gasoline; 
coker gasoline; ethyl tertiary butyl ether (ETBE); hexane; 
hydrocrackate; isomerate; methyl tertiary butyl ether (MTBE); mixed 
xylene (not including any separated isomer of xylene); natural 
gasoline; pentane; pentane mixture; polymer gasoline; raffinate; 
reformate; straight-run gasoline; straight-run naphtha; tertiary amyl 
methyl ether (TAME); tertiary butyl alcohol (gasoline grade) (TBA); 
thermally cracked gasoline; and toluene. Treas. Reg. sec. 48.4081-
1(c)(3)(i). Effective January 1, 2005, transmix containing gasoline was 
removed from the definition of gasoline blend stocks. Internal Revenue 
Service, Notice 2005-4 (December 15, 2004).
---------------------------------------------------------------------------
            Gasoline blend stock exemptions
      If certain conditions are met, the removal, entry, or 
sale of gasoline blend stocks is not taxable. Generally, the 
exemption from tax applies if a gasoline blend stock (1) is not 
used to produce finished gasoline (2) is received at an 
approved terminal or refinery (3) or in bulk transfer to an 
industrial user.\301\
---------------------------------------------------------------------------
    \301\Treas. Reg. sec. 48.4081-4.
---------------------------------------------------------------------------
      Gasoline blend stocks not used to produce finished 
gasoline.--Pursuant to Treasury regulation, no tax is imposed 
on nonbulk removals from a terminal or refinery, or nonbulk 
entries into the United States of any gasoline blend stocks if 
(1) the person liable for the tax is a taxable fuel registrant, 
and (2) such person does not use the gasoline blend stocks to 
produce finished gasoline. In connection with a sale, no tax is 
imposed on the nonbulk removal or entry if (1) the person 
liable for the tax is a gasoline registrant and (2) at the time 
of sale such party has an unexpired certificate from the buyer, 
and has no reason to believe any information in the certificate 
is false.\302\
---------------------------------------------------------------------------
    \302\Treas. Reg. secs. 48.4081-4(b)(1) and 48.4081-4(b)(1)(2).
---------------------------------------------------------------------------
      Any sale (or resale) of a gasoline blend stock that was 
not subject to tax on nonbulk removal or entry is taxable 
unless the seller has an unexpired certificate from the buyer 
and has no reason to believe that any information in the 
certificate is false.
      The certificate to be provided by a buyer of gasoline 
blend stocks contains a statement that the gasoline blend 
stocks covered by the certificate will not be used to produce 
finished gasoline, identifies the type (or types of blend 
stocks) covered by the certificate and provides that the buyer 
will not claim a credit or refund for any gasoline covered by 
the certificate. The certificate is signed under penalties of 
perjury by a person with authority to bind the buyer. The 
certificate expires on the earliest of one year from the 
effective date of the certificate, the date a new certificate 
is provided to the seller or the date the seller is notified by 
the IRS or the buyer that the buyer's right to provide a 
certificate has been withdrawn.
      Gasoline blend stocks received at an approved terminal or 
refinery.--Treasury regulations provide that tax is not imposed 
on the removal or entry of gasoline blend stocks that are 
received at a terminal or refinery if the person liable for tax 
is a taxable fuel registrant, has an unexpired notification 
certificate from the operator of the terminal or refinery where 
the gasoline blend stocks are received; and has no reason to 
believe that any information in the certificate is false.\303\ 
A notification certificate is used to notify another person of 
the taxable fuel registrant's registration status.
---------------------------------------------------------------------------
    \303\Treas. Reg. sec. 48.4081-4(b)(1).
---------------------------------------------------------------------------
      Bulk transfer to an industrial user.--Tax is not imposed 
if upon removal of the gasoline blend stocks from a pipeline or 
vessel, the gasoline blend stocks are received by a taxable 
fuel registrant that is an industrial user.\304\ An industrial 
user means any person that receives gasoline blend stocks by 
bulk transfer for its own use in the manufacture of any product 
other than finished gasoline.
---------------------------------------------------------------------------
    \304\Treas. Reg. sec. 48.4081-4(d).
---------------------------------------------------------------------------
            Refunds or credits for tax imposed on gasoline blend stocks 
                    not used for producing gasoline
      If any gasoline blend stock or additive is not used by a 
person to produce gasoline and that person establishes that the 
ultimate use of the gasoline blend stock or additive is not 
used to produce gasoline, then the Secretary is to pay (without 
interest) to such person, an amount equal to the aggregate 
amount of tax imposed on such person with respect to such 
gasoline or blend stock.\305\
---------------------------------------------------------------------------
    \305\Sec. 6427(h)(1).
---------------------------------------------------------------------------
      If gasoline is used in an off-highway business use, the 
ultimate purchaser of the gasoline is entitled to a credit or 
refund for the excise taxes imposed on the fuel. ``Off-highway 
business use'' means any use by a person in a trade or business 
of such person otherwise than as a fuel in a highway vehicle 
that meets certain requirements.\306\ Gasoline for this purpose 
includes gasoline blend stocks.\307\
---------------------------------------------------------------------------
    \306\Secs. 6421(a) and 6421(e).
    \307\Sec. 6421(e)(1) and sec. 4083(a)(2)(B).
---------------------------------------------------------------------------
      The Code also provides for a refund of tax for tax-paid 
fuel sold to a subsequent manufacturer or producer if the 
subsequent manufacturer or producer uses the fuel, for nonfuel 
purposes, as a material in the manufacture or production of any 
other article manufactured or produced by him.\308\
---------------------------------------------------------------------------
    \308\Sec. 6416(b)(3)(B).
---------------------------------------------------------------------------
Kerosene
            Definition of kerosene
      By regulation, kerosene is defined as the kerosene 
described in ASTM Specification D 3699 (No. 1-K and No. 2-K), 
ASTM Specification D 1655 (kerosene-type jet fuel), and 
military specifications MIL-DTL-5624T (Grade JP-5) and MIL-DTL-
83133E (Grade JP-8). Kerosene does not include any liquid that 
is an excluded liquid.\309\
---------------------------------------------------------------------------
    \309\Treas. Reg. sec. 48.4081-1(b).
---------------------------------------------------------------------------
      An ``excluded liquid'' is (1) any liquid that contains 
less than four percent normal paraffins, or (2) any liquid that 
has a distillation range of 125 degrees Fahrenheit or less, 
sulfur content of 10 ppm or less, and minimum color of +27 
Saybolt. These liquids are commonly known as ``mineral 
spirits'' and are obtained by distillation of crude oil. 
Mineral spirits are used for a wide variety of purposes, such 
as in dry-cleaning fluids, paint thinners, varnishes, photocopy 
toners, inks, adhesives, and as general purpose cleaners and 
degreasers.
            Exemptions
      Diesel fuel and kerosene that is to be used for a 
nontaxable purpose will not be taxed upon removal from the 
terminal if it is dyed to indicate its nontaxable purpose. 
Kerosene received by pipeline or vessel to satisfy a feedstock 
purpose is exempt from the dyeing requirement.\310\ Pursuant to 
Treasury regulations, nonbulk removals of kerosene for a 
feedstock purpose by a registered feedstock user also are 
exempt.\311\ The person receiving the kerosene must be 
registered with the IRS and provide a certificate noting that 
the kerosene will be used for a feedstock purpose in order for 
the exemption to apply. Pursuant to the Treasury regulations, 
tax also does not apply upon the removal or entry of kerosene 
if the person otherwise liable for tax is a taxable fuel 
registrant and such person uses the kerosene for a feedstock 
purpose.\312\
---------------------------------------------------------------------------
    \310\Sec. 4082(d)(1).
    \311\Treas. Reg. sec. 48.4082-7(c).
    \312\Treas. Reg. sec. 48.4082-7(c).
---------------------------------------------------------------------------
      ``Feedstock purpose'' means the use of kerosene for 
nonfuel purposes in the manufacture or production of any 
substance (other than gasoline, diesel fuel or special fuels 
subject to tax).\313\ Thus, for example, kerosene is used for a 
feedstock purpose when it is used as an ingredient in the 
production of paint and is not used for a feedstock purpose 
when it is used to power machinery at a factory where paint is 
produced.
---------------------------------------------------------------------------
    \313\Treas. Reg. sec. 48.4082-7(b).
---------------------------------------------------------------------------
            Refunds and payments for nontaxable uses of kerosene
      If tax-paid kerosene is used by any person in a 
nontaxable use, the Secretary is required to pay (without 
interest) to the ultimate purchaser of such fuel an amount 
equal to the aggregate amount of tax imposed on such fuel. For 
this purpose, a nontaxable use is any use which is exempt from 
the tax imposed by section 4041(a)(1) other than by reason of 
prior imposition of tax. Claims relating to kerosene used on a 
farm for farming purposes and by a State are made by registered 
ultimate vendors. Claims relating to undyed kerosene sold from 
a blocked pump\314\ or sold for blending with heating oil to be 
used during periods of extreme or unseasonable cold are also 
made by registered ultimate vendors. Special rules apply with 
respect to aviation-grade kerosene.
---------------------------------------------------------------------------
    \314\A blocked pump is a fuel pump that is used to dispense undyed 
kerosene that is sold at retail for use by the buyer in any nontaxable 
use; is at a fixed location; is identified with a legible and 
conspicuous notice stating ``Undyed Untaxed Kerosene, Nontaxable Use 
Only''; and cannot reasonably be used to dispense fuel directly into 
the fuel supply tank of a diesel-powered highway vehicle or diesel-
powered train; or is locked by the vendor after each sale and unlocked 
only in response to a request by a buyer for undyed kerosene for use 
other than as a fuel in a diesel-powered highway vehicle or diesel-
powered train.
---------------------------------------------------------------------------
      The Code also provides for a refund of tax for tax-paid 
fuel sold to a subsequent manufacturer or producer if the 
subsequent manufacturer or producer uses the fuel, for nonfuel 
purposes, as a material in the manufacture or production of any 
other article manufactured or produced by him.\315\
---------------------------------------------------------------------------
    \315\Sec. 6416(b)(3)(B).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

Gasoline blend stocks
      The Senate amendment partially repeals exemptions 
provided in Treas. Reg. sec. 48.4081-4, which, under certain 
conditions, exempts from tax gasoline blend stocks that are not 
used to produce finished gasoline or that are received at an 
approved terminal or refinery. Under the Senate amendment, tax 
is imposed on all nonbulk entries and removals of gasoline 
blend stocks, regardless of whether they will be used to 
produce finished gasoline or received at an approved terminal 
or refinery. The Senate amendment does not change the exemption 
for bulk transfers to registered industrial users.
Kerosene and mineral spirits
      The Senate amendment requires that with respect to fuel 
entered or removed after September 30, 2005, the Secretary 
shall include mineral spirits in the definition of kerosene. 
Thus, for entries and removals after September 30, 2005, 
mineral spirits are taxed and exempt from tax in the same 
manner as kerosene.
      Effective date.--The Senate amendment is effective for 
fuel removed or entered after September 30, 2005.

                          CONFERENCE AGREEMENT

      The conference agreement does not include the Senate 
amendment provision.
11. Nonapplication of export exemption to delivery of fuel to motor 
        vehicles removed from United States (sec. 5619 of the Senate 
        amendment)

                              PRESENT LAW

      A ``taxable fuel'' is gasoline, diesel fuel (including 
any liquid, other than gasoline, which is suitable for use as a 
fuel in a diesel-powered highway vehicle or train), and 
kerosene.\316\ An excise tax is imposed upon (1) the removal of 
any taxable fuel from a refinery or terminal, (2) the entry of 
any taxable fuel into the United States, or (3) the sale of any 
taxable fuel to any person who is not registered with the IRS 
to receive untaxed fuel, unless there was a prior taxable 
removal or entry.\317\ The tax does not apply to any removal or 
entry of taxable fuel transferred in bulk to a terminal or 
refinery if the person removing or entering the taxable fuel, 
the operator of such pipeline or vessel, and the operator of 
such terminal or refinery are registered with the 
Secretary.\318\
---------------------------------------------------------------------------
    \316\Sec. 4083(a).
    \317\Sec. 4081(a)(1).
    \318\Sec. 4081(a)(1)(B).
---------------------------------------------------------------------------
      Special provisions under the Code provide for a refund of 
tax to any person who sells gasoline to another for 
exportation.\319\ Section 6421(c) provides ``If gasoline is 
sold to any person for any purpose described in paragraph (2), 
(3), (4), or (5) of section 4221(a), the Secretary shall pay 
(without interest) to such person an amount equal to the 
product of the number of gallons so sold multiplied by the rate 
at which tax was imposed on such gasoline by section 4081.'' 
Section 4221 provides, in pertinent part, ``Under regulations 
prescribed by the Secretary, no tax shall be imposed under this 
chapter . . . on the sale by the manufacturer . . . of an 
article-- . . . for export, or for resale by the purchaser to a 
second purchaser for export . . . but only if such exportation 
or use is to occur before any other use. . . .''
---------------------------------------------------------------------------
    \319\Secs. 6421(c) and 4221(a)(2).
---------------------------------------------------------------------------
      It is the IRS administrative position that the exemption 
from manufacturers excise tax by reason of exportation does not 
apply to the sale of motor fuel pumped into a fuel tank of a 
vehicle that is to be driven, or shipped, directly out of the 
United States.\320\
---------------------------------------------------------------------------
    \320\Rev. Rul. 69-150, 1969-1 C.B. 286.
---------------------------------------------------------------------------
      A duty-free sales facility that meets certain conditions 
may sell and deliver for export from the customs territory of 
the United States duty-free merchandise. Duty-free merchandise 
is merchandise sold by a duty-free sales facility on which 
neither Federal duty nor Federal tax has been assessed pending 
exportation from the customs territory of the United States. 
The statutes covering duty-free facilities do not contain any 
limitation on what goods may qualify for duty-free treatment.
      The issue of whether fuel sold from a duty-free facility 
and placed into the tank of an automobile that is then driven 
out of the country is exported fuel has been litigated in the 
courts.\321\ The cases involved the same operator of a duty-
free facility seeking a refund of excise tax. The facility is 
near the Canadian border and is configured in such a way that 
anyone leaving the facility must depart the United States and 
enter into Canada. Both the Federal Circuit and the Sixth 
Circuit Court of Appeals are in accord with the IRS position 
and ruled that the operator of the duty-free facility did not 
have standing to pursue a claim for refund.\322\
---------------------------------------------------------------------------
    \321\See Ammex Inc. v. United States, 52 Fed. Cl. 303 (2002) (on 
cross-motions for summary judgment, the court found that plaintiff 
established standing to proceed to trial pursuant to sec. 6421(c) 
respecting its gasoline purchases only); and Ammex Inc. v. United 
States, 2002 U.S. Dist. LEXIS 25771 (E.D. Mich. July 31, 2002) 
(granting defendant's motion for summary judgment), reconsideration 
denied, Ammex, Inc. v. United States, 2002 U.S. Dist. LEXIS 22893 (E.D. 
Mich. Oct. 22, 2002). Although the Claims Court ruled that Ammex had 
standing to challenge the excise tax on gasoline, it subsequently held 
that Ammex was not entitled to a payment pursuant to sec. 6421(c) 
because it failed to prove at trial that it did not pass the tax on to 
its customers. Ammex Inc. v. United States, 2003 U.S. Claims LEXIS 63 
(Fed. Cl. Mar. 26, 2003). The Claims Court finding that the plaintiff 
had standing was reversed on appeal.
    \322\See Ammex Inc. v. United States, 384 F.3d 1368 (Fed. Cir. 
2004) cert. denied 125 S.Ct. 1697 (2005); and Ammex Inc. v. United 
States, 367 F.3d 530 (6th Cir. 2004) cert. denied 125 S.Ct. 1695 
(2005).
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment reaffirms the long-standing IRS 
position taken in Rev. Rul. 69-150 and restates present law by 
amending the Code definition of export to exclude the delivery 
of a taxable fuel into a fuel tank of a motor vehicle that is 
shipped or driven out of the United States. It also imposes a 
tax on the sale of taxable fuel at a duty-free sales enterprise 
unless there was a prior taxable removal, or entry of such 
fuel.
      Effective date.--The Senate amendment applies to sales or 
deliveries made after the date of enactment.

                          CONFERENCE AGREEMENT

      The conferees believe that it is beyond dispute that the 
delivery of fuel into a fuel tank of a motor vehicle that is 
shipped or driven out of the United States is not an act of 
exportation of such fuel. The fuel in the fuel tank is not 
carried in the vehicle for the purpose of transporting the fuel 
as a commodity from one place to another; the fuel is there to 
power the vehicle. The conference agreement does not include 
the Senate amendment because it is present law, supported by 
the decisions of two Federal appellate courts.
12. Impose assessable penalty on dealers of adulterated fuel (sec. 5620 
        of the Senate amendment and new sec. 6720A of the Code)

                              PRESENT LAW

      Diesel fuel, gasoline, and kerosene are taxable fuels. 
Diesel fuel is defined as (1) any liquid (other than gasoline) 
which is suitable for use as a fuel in a diesel-powered highway 
vehicle or a diesel powered train, (2) transmix, and (3) diesel 
fuel blend stocks identified by the Secretary.\323\ As a 
defense to Federal and State excise tax liability, some 
taxpayers have contended that certain diesel fuel mixtures or 
additives do not meet the requirements of (1) above because 
they are not approved as additives or mixtures by the EPA. In 
addition, under present law, untaxed fuel additives, including 
certain contaminants, may displace taxed diesel fuel in a 
mixture.
---------------------------------------------------------------------------
    \323\Sec. 4083(a)(3)(A).
---------------------------------------------------------------------------
      The Code provides that any person who, in connection with 
a sale or lease (or offer for sale or lease) of an article, 
knowingly makes any false statement ascribing a particular part 
of the price of the article to a tax imposed by the United 
States, or intended to lead any person to believe that any part 
of the price consists of such a tax, is guilty of a 
misdemeanor.\324\ Another Code provision provides that any 
person who has in his custody or possession any article on 
which taxes are imposed by law, for the purpose of selling the 
article in fraud of the internal revenue laws or with design to 
avoid payment of the taxes thereon, is liable for ``a penalty 
of $500 or not less than double the amount of taxes 
fraudulently attempted to be evaded.''\325\
---------------------------------------------------------------------------
    \324\Sec. 7211. Such a violation is punishable by a fine not to 
exceed $1,000, or by imprisonment for not more than one year, or both.
    \325\Sec. 7268.
---------------------------------------------------------------------------

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      The Senate amendment adds a new assessable penalty. Any 
person other than a retailer who knowingly transfers for 
resale, sells for resale, or holds out for resale for use in a 
diesel-powered highway vehicle (or train) any liquid that does 
not meet applicable EPA regulations (as defined in section 
45H(c)(3))\326\ is subject to a penalty of $10,000 for each 
such transfer, sale or holding out for resale, in addition to 
the tax on such liquid, if any. Any retailer who knowingly 
holds out for sale (other than for resale) any such liquid, is 
subject to a $10,000 penalty for each such holding out for 
sale, in addition to the tax on such liquid, if any.
---------------------------------------------------------------------------
    \326\Section 45H(c)(3) refers to ``the Highway Diesel Fuel Sulfur 
Control Requirements of the Environmental Protection Agency.''
---------------------------------------------------------------------------
      The penalty is dedicated to the Highway Trust Fund.
      Effective date.--The Senate amendment is effective for 
any transfer, sale, or holding out for sale or resale occurring 
after the date of enactment.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

                IV. FUELS-RELATED TECHNICAL CORRECTIONS

A. Fuels-Related Technical Corrections to American Jobs Creation Act of 
                            2004 (``AJCA'')

      The provision includes technical corrections to AJCA. 
Such technical corrections take effect as if included in the 
section of AJCA to which the correction relates.
1. Volumetric ethanol excise tax credit (sec. 10003(a) of the House 
        bill, sec. 5401(a) of the Senate amendment, sec. 301 of AJCA, 
        and sec. 6427 of the Code)

                               HOUSE BILL

      AJCA repealed the reduced tax rates for alcohol fuels and 
taxable fuels to be blended with alcohol. The technical 
correction makes a conforming amendment to eliminate the refund 
provisions based on those reduced rates (secs. 6427(f) and 
6427(o)).

                            SENATE AMENDMENT

      The Senate amendment is the same as the House bill.

                          CONFERENCE AGREEMENT

      The conference agreement follows the House bill and the 
Senate amendment.
2. Aviation fuel (sec. 10003(b) of the House bill, sec. 5401(b) of the 
        Senate amendment, sec. 853 of AJCA, and sec. 4081 of the Code)

                               HOUSE BILL

      Section 853 of AJCA moved the taxation of jet fuel 
(aviation-grade kerosene) from section 4091 to section 4081 of 
the Code and repealed section 4091. The termination date for 
the 21.8 cent per gallon rate for noncommercial aviation jet 
fuel was inadvertently omitted from the Act. The technical 
correction clarifies that after September 30, 2007, the rate 
for jet fuel used in noncommercial aviation will be 4.3 cents 
per gallon (sec. 4081(a)(2)(C)).
      An additional technical correction clarifies that users 
of aviation fuel in commercial aviation are required to be 
registered with the IRS in order for the 4.3-cents-per-gallon 
rate to apply (including for purposes of the self-assessment of 
tax by commercial aircraft operators).

                            SENATE AMENDMENT

      The Senate amendment generally follows the House bill 
with certain technical drafting changes to accommodate changes 
made by other provisions of the Senate amendment. The Senate 
amendment also corrects cross-references in section 6421(f)(2) 
to the definition of noncommercial aviation to reflect changes 
made by the AJCA change in the tax treatment of fuel used in 
aviation.

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

B. Fuels-Related Technical Corrections to Transportation Equity Act for 
                     the 21st Century (``TEA 21'')

      The provision includes a technical correction to TEA 21. 
The amendment made by the technical correction takes effect as 
if included in the section of TEA 21 to which it relates.
1. Coastal Wetlands sub-account (sec. 5401(c) of the Senate amendment, 
        sec. 9005 of TEA 21, and sec. 9504 of the Code)

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      Section 9005(b)(3) of TEA 21 redesignated Code section 
9504(b)(2)(B), referring to the purposes of the Coastal 
Wetlands Planning, Protection and Restoration Act, as 
9504(b)(2)(C), but did not cross reference the limitation for 
such purposes of taxes on gasoline used in the nonbusiness use 
of small-engine outdoor power equipment. The technical 
correction makes a conforming cross-reference amendment (sec. 
9504(b)(2)).

                          CONFERENCE AGREEMENT

      The conference agreement follows the Senate amendment.

         C. Correction to the Energy Tax Incentives Act of 2005

      The provision includes a technical correction to the 
Energy Tax Incentives Act (''ETIA'') of 2005. The amendment 
made by the technical correction takes effect as if included in 
the section of the ETIA to which it relates.
1. Erroneous reference to highway reauthorization bill (sec. 38 of the 
        Code)

                               HOUSE BILL

      No provision.

                            SENATE AMENDMENT

      No provision.

                          CONFERENCE AGREEMENT

      The conference agreement corrects an erroneous reference 
to the highway reauthorization bill in section 38 as added by 
the Energy Policy Act of 2005.

                       V. TAX COMPLEXITY ANALYSIS

      Section 4022(b) of the Internal Revenue Service Reform 
and Restructuring Act of 1998 (the ``IRS Reform Act'') requires 
the Joint Committee on Taxation (in consultation with the 
Internal Revenue Service and the Department of the Treasury) to 
provide a tax complexity analysis. The complexity analysis is 
required for all legislation reported by the Senate Committee 
on Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
(the ``Code'') and has widespread applicability to individuals 
or small businesses.
      The staff of the Joint Committee on Taxation has 
determined that a complexity analysis is not required under 
section 4022(b) of the IRS Reform Act because the bill contains 
no provisions that have ``widespread applicability'' to 
individuals or small businesses.

                From the Committee on Transportation and 
                Infrastructure, for consideration of the House 
                bill (except title X) and the Senate amendment 
                (except title V), and modifications committed 
                to conference:
                                   Don Young,
                                   Thomas E. Petri,
                                   Sherwood Boehlert,
                                   Howard Coble,
                                   John J. Duncan, Jr.,
                                   John L. Mica,
                                   Pete Hoekstra,
                                   Steven C. LaTourette,
                                   Spencer Bachus,
                                   Richard H. Baker,
                                   Gary G. Miller,
                                   Robin Hayes,
                                   Rob Simmons,
                                   Henry E. Brown, Jr.,
                                   Sam Graves,
                                   Bill Shuster,
                                   John Boozman,
                                   James L. Oberstar,
                                   Nick Rahall,
                                   Peter A. DeFazio,
                                   Jerry F. Costello,
                                   Eleanor Holmes Norton,
                                   Jerrold Nadler,
                                   Robert Menendez,
                                   Corrine Brown,
                                   Bob Filner,
                                   Eddie Bernice Johnson,
                                   Gene Taylor,
                                   Juanita Millender-McDonald,
                                   Elijah E. Cummings,
                                   Earl Blumenauer,
                                   Ellen O. Tauscher,
                From the Committee on the Budget, for 
                consideration of secs. 8001-8003 of the House 
                bill, and title III of the Senate amendment, 
                and modifications committed to conference:
                                   Jim Nussle,
                                   Mario Diaz-Balart,
                                   John Spratt,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 1118, 
                1605, 1809, 3018, and 3030 of the House bill, 
                and secs. 1304, 1819, 6013, 6031, 6038, and 
                7603 of the Senate amendment, and modifications 
                committed to conference:
                                   Ric Keller,
                                   John Barrow,
                From the Committee on Energy and Commerce, for 
                consideration of provisions in the House bill 
                and Senate amendment relating to Clean Air Act 
                provisions of transportation planning contained 
                in secs. 6001 and 6006 of the House bill, and 
                secs. 6005 and 6006 of the Senate amendment; 
                and secs. 1210, 1824, 1833, 5203, and 6008 of 
                the House bill, and secs. 1501, 1511, 1522, 
                1610-1619, 1622, 4001, 4002, 6016, 6023, 7218, 
                7223, 7251, 7252, 7256-7262, 7324, 7381, 7382, 
                and 7384 of the Senate amendment, and 
                modifications committed to conference:
                                   Joe Barton,
                                   Chip Pickering,
                                   John D. Dingell,
                From the Committee on Government Reform, for 
                consideration of sec. 4205 of the House bill, 
                and sec. 2101 of the Senate amendment, and 
                modifications committed to conference:
                                   Tom Davis,
                                   Todd R. Platts,
                From the Committee on Homeland Security, for 
                consideration of secs. 1834, 6027, 7324, and 
                7325 of the Senate amendment, and modifications 
                committed to conference:
                                   Chris Cox,
                                   Daniel E. Lungren,
                                   Bennie G. Thompson,
                From the Committee on the Judiciary, for 
                consideration of secs. 1211, 1605, 1812, 1832, 
                2013, 2017, 4105, 4201, 4202, 4214, 7018-7020, 
                and 7023 of the House bill, and secs. 1410, 
                1512, 1513, 6006, 6029, 7108, 7113, 7115, 7338, 
                7340, 7343, 7345, 7362, 7363, 7406, 7407, and 
                7413 of the Senate amendment, and modifications 
                committed to conference:
                                   Lamar Smith,
                                   John Conyers,
                From the Committee on Resources, for 
                consideration of secs. 1119, 3021, 6002, and 
                6003 of the House bill, and secs. 1501, 1502, 
                1505, 1511, 1514, 1601, 1603, 6040, and 7501-
                7518 of the Senate amendment, and modifications 
                committed to conference:
                                   Greg Walden,
                                   Ron Kind,
                From the Committee on Rules, for consideration 
                of secs. 8004 and 8005 of the House bill, and 
                modifications committed to conference:
                                   David Dreier,
                                   Shelley Moore Capito,
                                   Jim McGovern,
                From the Committee on Science, for 
                consideration of secs. 2010, 3013, 3015, 3034, 
                3039, 3041, 4112, and title V of the House 
                bill, and title II and secs. 6014, 6015, 6036, 
                7118, 7212, 7214, 7361, and 7370 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Vernon J. Ehlers,
                                   David Reichert,
                                   Bart Gordon,
                From the Committee on Ways and Means, for 
                consideration of title X of the House bill, and 
                title V of the Senate amendment, and 
                modifications committed to conference:
                                   William M. Thomas,
                                   Jim McCrery,
                For consideration of the House bill and Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom DeLay,
                                 Managers on the Part of the House.

                                   James M. Inhofe,
                                   John Warner,
                                   Kit Bond,
                                   George V. Voinovich,
                                   Lincoln Chafee,
                                   Lisa Murkowski,
                                   John Thune,
                                   Jim DeMint,
                                   Johnny Isakson,
                                   David Vitter,
                                   Chuck Grassley,
                                   Orrin Hatch,
                                   Richard Shelby,
                                   Wayne Allard,
                                   Ted Stevens,
                                   Trent Lott,
                                   Jim Jeffords,
                                   Max Baucus,
                                   Joe Lieberman,
                                   Barbara Boxer,
                                   Tom Carper,
                                   Hillary Rodham Clinton,
                                   Frank R. Lautenberg,
                                   Barack Obama,
                                   Kent Conrad,
                                   Daniel K. Inouye,
                                   Jay Rockefeller,
                                   Paul Sarbanes,
                                   Jack Reed,
                                   Tim Johnson,
                                Managers on the Part of the Senate.

                                  
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