    [112th Congress Public Law 141]
    [From the U.S. Government Publishing Office]

    [[Page 126 STAT. 405]]

    Public Law 112-141
    112th Congress

                                     An Act

     To authorize funds for Federal-aid highways, highway safety programs,
         and transit programs, and for other purposes. <<NOTE: July 6,
                             2012 -  [H.R. 4348]>>

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <<NOTE: Moving Ahead for
    Progress in the 21st Century Act. State and local governments.>>
    SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE
                                  OF CONTENTS.

        (a) <<NOTE: 23 USC 101 note.>> Short Title.--This Act may be cited
    as the ``Moving Ahead for Progress in the 21st Century Act'' or the
    ``MAP-21''.

        (b) Divisions.--This Act is organized into 8 divisions as follows:
                (1) Division A-Federal-aid Highways and Highway Safety
            Construction Programs.
                (2) Division B-Public Transportation.
                (3) Division C-Transportation Safety and Surface
            Transportation Policy.
                (4) Division D-Finance.
                (5) Division E-Research and Education.
                (6) Division F-Miscellaneous.
                (7) Division G-Surface Transportation Extension.
                (8) Division H-Budgetary Effects.

        (c) Table of Contents.--The table of contents for this Act is as
    follows:

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

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

                          TITLE I--FEDERAL-AID HIGHWAYS

                     Subtitle A--Authorizations and Programs

    Sec. 1101. Authorization of appropriations.
    Sec. 1102. Obligation ceiling.
    Sec. 1103. Definitions.
    Sec. 1104. National Highway System.
    Sec. 1105. Apportionment.
    Sec. 1106. National highway performance program.
    Sec. 1107. Emergency relief.
    Sec. 1108. Surface transportation program.
    Sec. 1109. Workforce development.
    Sec. 1110. Highway use tax evasion projects.
    Sec. 1111. National bridge and tunnel inventory and inspection
               standards.
    Sec. 1112. Highway safety improvement program.
    Sec. 1113. Congestion mitigation and air quality improvement program.
    Sec. 1114. Territorial and Puerto Rico highway program.
    Sec. 1115. National freight policy.
    Sec. 1116. Prioritization of projects to improve freight movement.
    Sec. 1117. State freight advisory committees.

    [[Page 126 STAT. 406]]

    Sec. 1118. State freight plans.
    Sec. 1119. Federal lands and tribal transportation programs.
    Sec. 1120. Projects of national and regional significance.
    Sec. 1121. Construction of ferry boats and ferry terminal facilities.
    Sec. 1122. Transportation alternatives.
    Sec. 1123. Tribal high priority projects program.

                       Subtitle B--Performance Management

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

                  Subtitle C--Acceleration of Project Delivery

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

                           Subtitle D--Highway Safety

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

                            Subtitle E--Miscellaneous

    Sec. 1501. Real-time ridesharing.
    Sec. 1502. Program efficiencies.
    Sec. 1503. Project approval and oversight.
    Sec. 1504. Standards.
    Sec. 1505. Justification reports for access points on the Interstate
               System.
    Sec. 1506. Construction.
    Sec. 1507. Maintenance.
    Sec. 1508. Federal share payable.
    Sec. 1509. Transferability of Federal-aid highway funds.
    Sec. 1510. Idle reduction technology.
    Sec. 1511. Special permits during periods of national emergency.
    Sec. 1512. Tolling.
    Sec. 1513. Miscellaneous parking amendments.
    Sec. 1514. HOV facilities.
    Sec. 1515. Funding flexibility for transportation emergencies.
    Sec. 1516. Defense access road program enhancements to address
               transportation infrastructure in the vicinity of military
               installations.
    Sec. 1517. Mapping.
    Sec. 1518. Buy America provisions.
    Sec. 1519. Consolidation of programs; repeal of obsolete provisions.
    Sec. 1520. Denali Commission.
    Sec. 1521. Uniform Relocation Assistance and Real Property Acquisition
               Policies Act of 1970 amendments.
    Sec. 1522. Extension of public transit vehicle exemption from axle
               weight restrictions.

    [[Page 126 STAT. 407]]

    Sec. 1523. Use of debris from demolished bridges and overpasses.
    Sec. 1524. Use of youth service and conservation corps.
    Sec. 1525. State autonomy for culvert pipe selection.
    Sec. 1526. Evacuation routes.
    Sec. 1527. Consolidation of grants.
    Sec. 1528. Appalachian development highway system.
    Sec. 1529. Engineering judgment.
    Sec. 1530. Transportation training and employment programs.
    Sec. 1531. Notice of certain grant awards.
    Sec. 1532. Budget justification.
    Sec. 1533. Prohibition on use of funds for automated traffic
               enforcement.
    Sec. 1534. Public-private partnerships.
    Sec. 1535. Report on Highway Trust Fund expenditures.
    Sec. 1536. Sense of Congress on harbor maintenance.
    Sec. 1537. Estimate of harbor maintenance needs.
    Sec. 1538. Asian carp.
    Sec. 1539. Rest areas.

                       Subtitle F--Gulf Coast Restoration

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

               TITLE II--AMERICA FAST FORWARD FINANCING INNOVATION

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

                        DIVISION B--PUBLIC TRANSPORTATION

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

       DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

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

    Sec. 31001. Short title.

    [[Page 126 STAT. 408]]

    Sec. 31002. Definition.

                           Subtitle A--Highway Safety

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

                     Subtitle B--Enhanced Safety Authorities

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

                   Subtitle C--Transparency and Accountability

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

              Subtitle D--Vehicle Electronics and Safety Standards

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

                       Subtitle E--Child Safety Standards

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

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

    Sec. 31601. Rulemaking on visibility of agricultural equipment.

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

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

                Subtitle A--Commercial Motor Vehicle Registration

    Sec. 32101. Registration of motor carriers.
    Sec. 32102. Safety fitness of new operators.
    Sec. 32103. Reincarnated carriers.

    [[Page 126 STAT. 409]]

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

                   Subtitle B--Commercial Motor Vehicle Safety

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

                            Subtitle C--Driver Safety

    Sec. 32301. Hours of service study and electronic logging devices.
    Sec. 32302. Driver medical qualifications.
    Sec. 32303. Commercial driver's license notification system.
    Sec. 32304. Commercial motor vehicle operator training.
    Sec. 32305. Commercial driver's license program.
    Sec. 32306. Commercial motor vehicle driver information systems.
    Sec. 32307. Employer responsibilities.
    Sec. 32308. Program to assist Veterans to acquire commercial driver's
               licenses.

                       Subtitle D--Safe Roads Act of 2012

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

                             Subtitle E--Enforcement

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

                 Subtitle F--Compliance, Safety, Accountability

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

               Subtitle G--Motorcoach Enhanced Safety Act of 2012

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

    [[Page 126 STAT. 410]]

    Sec. 32710. Safety inspection program for commercial motor vehicles of
               passengers.
    Sec. 32711. Regulations.

            Subtitle H--Safe Highways and Infrastructure Preservation

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

                            Subtitle I--Miscellaneous

                              PART I--Miscellaneous

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

                     PART II--Household Goods Transportation

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

                         PART III--Technical Amendments

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

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

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

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

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

                             TITLE V--MISCELLANEOUS

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

                               DIVISION D--FINANCE

    Sec. 40001. Short title.

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

    Sec. 40101. Extension of trust fund expenditure authority.

    [[Page 126 STAT. 411]]

    Sec. 40102. Extension of highway-related taxes.

                          TITLE II--REVENUE PROVISIONS

             Subtitle A--Leaking Underground Storage Tank Trust Fund

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

                         Subtitle B--Pension Provisions

                      PART I--Pension Funding Stabilization

    Sec. 40211. Pension funding stabilization.

                             PART II--PBGC Premiums

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

                         PART III--Improvements of PBGC

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

                   PART IV--Transfers of Excess Pension Assets

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

             Subtitle C--Additional Transfers to Highway Trust Fund

    Sec. 40251. Additional transfers to Highway Trust Fund.

                       DIVISION E--RESEARCH AND EDUCATION

    Sec. 50001. Short title.

                                TITLE I--FUNDING

    Sec. 51001. Authorization of appropriations.

                  TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

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

             TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

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

                            DIVISION F--MISCELLANEOUS

                  TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

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

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

                  Subtitle B--Payment in Lieu of Taxes Program

    Sec. 100111. Payments in lieu of taxes.

    [[Page 126 STAT. 412]]

                               Subtitle C--Offsets

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

                            TITLE II--FLOOD INSURANCE

              Subtitle A--Flood Insurance Reform and Modernization

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

                     Subtitle B--Alternative Loss Allocation

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

    [[Page 126 STAT. 413]]

                        Subtitle C--HEARTH Act Amendment

    Sec. 100261. HEARTH Act technical corrections.

                 TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

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

                  DIVISION G--SURFACE TRANSPORTATION EXTENSION

    Sec. 110001. Short title.

                          TITLE I--FEDERAL-AID HIGHWAYS

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

                 TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

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

                    TITLE III--PUBLIC TRANSPORTATION PROGRAMS

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

                            TITLE IV--EFFECTIVE DATE

    Sec. 114001. Effective date.

                          DIVISION H--BUDGETARY EFFECTS

    Sec. 120001. Budgetary effects.

    SEC. 2. <<NOTE: 23 USC 101 note.>> DEFINITIONS.

        In this Act, the following definitions apply:
                (1) Department.--The term ``Department'' means the
            Department of Transportation.
                (2) Secretary.--The term ``Secretary'' means the Secretary
            of Transportation.
    SEC. 3. EFFECTIVE DATE.

        (a) <<NOTE: 23 USC 101 note.>> In General.--Except as otherwise
    provided, divisions A, B, C (other than sections 32603(d), 32603(g),
    32912, and 34002 of that division) and E, including the amendments made
    by those divisions, take effect on October 1, 2012.

        (b) <<NOTE: 23 USC 101 note.>> References.--Except as otherwise
    provided, any reference to the date of enactment of the MAP-21 or to the
    date of enactment of the Federal Public Transportation Act of 2012 in
    the divisions described in subsection (a) or in an amendment made by
    those divisions shall be deemed to be a reference to the effective date
    of those divisions.

    [[Page 126 STAT. 414]]

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

                          TITLE I--FEDERAL-AID HIGHWAYS

                     Subtitle A--Authorizations and Programs

    SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

        (a) In General.--The following sums are authorized to be
    appropriated out of the Highway Trust Fund (other than the Mass Transit
    Account):
                (1) Federal-aid highway program.--For the national highway
            performance program under section 119 of title 23, United States
            Code, the surface transportation program under section 133 of
            that title, the highway safety improvement program under section
            148 of that title, the congestion mitigation and air quality
            improvement program under section 149 of that title, and to
            carry out section 134 of that title--
                        (A) $37,476,819,674 for fiscal year 2013; and
                        (B) $37,798,000,000 for fiscal year 2014.
                (2) Transportation infrastructure finance and innovation
            program.--For credit assistance under the transportation
            infrastructure finance and innovation program under chapter 6 of
            title 23, United States Code--
                        (A) $750,000,000 for fiscal year 2013; and
                        (B) $1,000,000,000 for fiscal year 2014.
                (3) Federal lands and tribal transportation programs.--
                        (A) Tribal transportation program.--For the tribal
                    transportation program under section 202 of title 23,
                    United States Code, $450,000,000 for each of fiscal
                    years 2013 and 2014.
                        (B) Federal lands transportation program.--For the
                    Federal lands transportation program under section 203
                    of title 23, United States Code, $300,000,000 for each
                    of fiscal years 2013 and 2014, of which $240,000,000 of
                    the amount made available for each fiscal year shall be
                    the amount for the National Park Service and $30,000,000
                    of the amount made available for each fiscal year shall
                    be the amount for the United States Fish and Wildlife
                    Service.
                        (C) Federal lands access program.--For the Federal
                    lands access program under section 204 of title 23,
                    United States Code, $250,000,000 for each of fiscal
                    years 2013 and 2014.
                (4) Territorial and puerto rico highway program.--For the
            territorial and Puerto Rico highway program under section 165 of
            title 23, United States Code, $190,000,000 for each of fiscal
            years 2013 and 2014.

        (b) <<NOTE: 23 USC 101 note.>> Disadvantaged Business Enterprises.--
                (1) Findings.--Congress finds that--
                        (A) while significant progress has occurred due to
                    the establishment of the disadvantaged business
                    enterprise

    [[Page 126 STAT. 415]]

                    program, discrimination and related barriers continue to
                    pose significant obstacles for minority- and women-owned
                    businesses seeking to do business in federally-assisted
                    surface transportation markets across the United States;
                        (B) the continuing barriers described in
                    subparagraph (A) merit the continuation of the
                    disadvantaged business enterprise program;
                        (C) Congress has received and reviewed testimony and
                    documentation of race and gender discrimination from
                    numerous sources, including congressional hearings and
                    roundtables, scientific reports, reports issued by
                    public and private agencies, news stories, reports of
                    discrimination by organizations and individuals, and
                    discrimination lawsuits, which show that race- and
                    gender-neutral efforts alone are insufficient to address
                    the problem;
                        (D) the testimony and documentation described in
                    subparagraph (C) demonstrate that discrimination across
                    the United States poses a barrier to full and fair
                    participation in surface transportation-related
                    businesses of women business owners and minority
                    business owners and has impacted firm development and
                    many aspects of surface transportation-related business
                    in the public and private markets; and
                        (E) the testimony and documentation described in
                    subparagraph (C) provide a strong basis that there is a
                    compelling need for the continuation of the
                    disadvantaged business enterprise program to address
                    race and gender discrimination in surface
                    transportation-related business.
                (2) Definitions.--In this subsection, the following
            definitions apply:
                        (A) Small business concern.--
                              (i) In general.--The term ``small business
                          concern'' means a small business concern (as the
                          term is used in section 3 of the Small Business
                          Act (15 U.S.C. 632)).
                              (ii) Exclusions.--The term ``small business
                          concern'' does not include any concern or group of
                          concerns controlled by the same socially and
                          economically disadvantaged individual or
                          individuals that have average annual gross
                          receipts during the preceding 3 fiscal years in
                          excess of $22,410,000, as adjusted annually by the
                          Secretary for inflation.
                        (B) Socially and economically disadvantaged
                    individuals.--The term ``socially and economically
                    disadvantaged individuals'' has the meaning given the
                    term in section 8(d) of the Small Business Act (15
                    U.S.C. 637(d)) and relevant subcontracting regulations
                    issued pursuant to that Act, except that women shall be
                    presumed to be socially and economically disadvantaged
                    individuals for purposes of this subsection.
                (3) Amounts for small business concerns.--Except to the
            extent that the Secretary determines otherwise, not less than 10
            percent of the amounts made available for any program under
            divisions A and B of this Act and section 403 of title 23,
            United States Code, shall be expended through small business
            concerns owned and controlled by socially and economically
            disadvantaged individuals.

    [[Page 126 STAT. 416]]

                (4) Annual listing of disadvantaged business enterprises.--
            Each State shall annually--
                        (A) survey and compile a list of the small business
                    concerns referred to in paragraph (2) in the State,
                    including the location of the small business concerns in
                    the State; and
                        (B) <<NOTE: Notification.>> notify the Secretary, in
                    writing, of the percentage of the small business
                    concerns that are controlled by--
                              (i) women;
                              (ii) socially and economically disadvantaged
                          individuals (other than women); and
                              (iii) individuals who are women and are
                          otherwise socially and economically disadvantaged
                          individuals.
                (5) Uniform certification.--
                        (A) In general.--The Secretary shall establish
                    minimum uniform criteria for use by State governments in
                    certifying whether a concern qualifies as a small
                    business concern for the purpose of this subsection.
                        (B) Inclusions.--The minimum uniform criteria
                    established under subparagraph (A) shall include, with
                    respect to a potential small business concern--
                              (i) on-site visits;
                              (ii) personal interviews with personnel;
                              (iii) issuance or inspection of licenses;
                              (iv) analyses of stock ownership;
                              (v) listings of equipment;
                              (vi) analyses of bonding capacity;
                              (vii) listings of work completed;
                              (viii) examination of the resumes of principal
                          owners;
                              (ix) analyses of financial capacity; and
                              (x) analyses of the type of work preferred.
                (6) Reporting.--The Secretary shall establish minimum
            requirements for use by State governments in reporting to the
            Secretary--
                        (A) information concerning disadvantaged business
                    enterprise awards, commitments, and achievements; and
                        (B) such other information as the Secretary
                    determines to be appropriate for the proper monitoring
                    of the disadvantaged business enterprise program.
                (7) Compliance with court orders.--Nothing in this
            subsection limits the eligibility of an individual or entity to
            receive funds made available under divisions A and B of this Act
            and section 403 of title 23, United States Code, if the entity
            or person is prevented, in whole or in part, from complying with
            paragraph (2) because a Federal court issues a final order in
            which the court finds that a requirement or the implementation
            of paragraph (2) is unconstitutional.
    SEC. 1102. <<NOTE: 23 USC 104 note.>> OBLIGATION CEILING.

        (a) General Limitation.--Subject to subsection (e), and
    notwithstanding any other provision of law, the obligations for Federal-
    aid highway and highway safety construction programs shall not exceed--
                (1) $39,699,000,000 for fiscal year 2013; and
                (2) $40,256,000,000 for fiscal year 2014.

    [[Page 126 STAT. 417]]

        (b) Exceptions.--The limitations under subsection (a) shall not
    apply to obligations under or for--
                (1) section 125 of title 23, United States Code;
                (2) section 147 of the Surface Transportation Assistance Act
            of 1978 (23 U.S.C. 144 note; 92 Stat. 2714);
                (3) section 9 of the Federal-Aid Highway Act of 1981 (95
            Stat. 1701);
                (4) subsections (b) and (j) of section 131 of the Surface
            Transportation Assistance Act of 1982 (96 Stat. 2119);
                (5) subsections (b) and (c) of section 149 of the Surface
            Transportation and Uniform Relocation Assistance Act of 1987
            (101 Stat. 198);
                (6) sections 1103 through 1108 of the Intermodal Surface
            Transportation Efficiency Act of 1991 (105 Stat. 2027);
                (7) section 157 of title 23, United States Code (as in
            effect on June 8, 1998);
                (8) section 105 of title 23, United States Code (as in
            effect for fiscal years 1998 through 2004, but only in an amount
            equal to $639,000,000 for each of those fiscal years);
                (9) Federal-aid highway programs for which obligation
            authority was made available under the Transportation Equity Act
            for the 21st Century (112 Stat. 107) or subsequent Acts for
            multiple years or to remain available until expended, but only
            to the extent that the obligation authority has not lapsed or
            been used;
                (10) section 105 of title 23, United States Code (but, for
            each of fiscal years 2005 through 2011, only in an amount equal
            to $639,000,000 for each of those fiscal years);
                (11) section 1603 of SAFETEA-LU (23 U.S.C. 118 note; 119
            Stat. 1248), to the extent that funds obligated in accordance
            with that section were not subject to a limitation on
            obligations at the time at which the funds were initially made
            available for obligation; and
                (12) section 119 of title 23, United States Code (but, for
            each of fiscal years 2013 through 2014, only in an amount equal
            to $639,000,000 for each of those fiscal years).

        (c) Distribution of Obligation Authority.--For each of fiscal years
    2013 through 2014, the Secretary--
                (1) shall not distribute obligation authority provided by
            subsection (a) for the fiscal year for--
                        (A) amounts authorized for administrative expenses
                    and programs by section 104(a) of title 23, United
                    States Code; and
                        (B) amounts authorized for the Bureau of
                    Transportation Statistics;
                (2) shall not distribute an amount of obligation authority
            provided by subsection (a) that is equal to the unobligated
            balance of amounts--
                        (A) made available from the Highway Trust Fund
                    (other than the Mass Transit Account) for Federal-aid
                    highway and highway safety construction programs for
                    previous fiscal years the funds for which are allocated
                    by the Secretary (or apportioned by the Secretary under
                    sections 202 or 204 of title 23, United States Code);
                    and
                        (B) for which obligation authority was provided in a
                    previous fiscal year;
                (3) <<NOTE: Determination.>> shall determine the proportion
            that--

    [[Page 126 STAT. 418]]

                        (A) the obligation authority provided by subsection
                    (a) for the fiscal year, less the aggregate of amounts
                    not distributed under paragraphs (1) and (2) of this
                    subsection; bears to
                        (B) the total of the sums authorized to be
                    appropriated for the Federal-aid highway and highway
                    safety construction programs (other than sums authorized
                    to be appropriated for provisions of law described in
                    paragraphs (1) through (11) of subsection (b) and sums
                    authorized to be appropriated for section 119 of title
                    23, United States Code, equal to the amount referred to
                    in subsection (b)(12) for the fiscal year), less the
                    aggregate of the amounts not distributed under
                    paragraphs (1) and (2) of this subsection;
                (4) shall distribute the obligation authority provided by
            subsection (a), less the aggregate amounts not distributed under
            paragraphs (1) and (2), for each of the programs (other than
            programs to which paragraph (1) applies) that are allocated by
            the Secretary under this Act and title 23, United States Code,
            or apportioned by the Secretary under sections 202 or 204 of
            that title, by multiplying--
                        (A) the proportion determined under paragraph (3);
                    by
                        (B) the amounts authorized to be appropriated for
                    each such program for the fiscal year; and
                (5) shall distribute the obligation authority provided by
            subsection (a), less the aggregate amounts not distributed under
            paragraphs (1) and (2) and the amounts distributed under
            paragraph (4), for Federal-aid highway and highway safety
            construction programs that are apportioned by the Secretary
            under title 23, United States Code (other than the amounts
            apportioned for the national highway performance program in
            section 119 of title 23, United States Code, that are exempt
            from the limitation under subsection (b)(12) and the amounts
            apportioned under section 204 of that title) in the proportion
            that--
                        (A) amounts authorized to be appropriated for the
                    programs that are apportioned under title 23, United
                    States Code, to each State for the fiscal year; bears to
                        (B) the total of the amounts authorized to be
                    appropriated for the programs that are apportioned under
                    title 23, United States Code, to all States for the
                    fiscal year.

        (d) <<NOTE: Time period.>> Redistribution of Unused Obligation
    Authority.--Notwithstanding subsection (c), the Secretary shall, after
    August 1 of each of fiscal years 2013 through 2014--
                (1) revise a distribution of the obligation authority made
            available under subsection (c) if an amount distributed cannot
            be obligated during that fiscal year; and
                (2) redistribute sufficient amounts to those States able to
            obligate amounts in addition to those previously distributed
            during that fiscal year, giving priority to those States having
            large unobligated balances of funds apportioned under sections
            144 (as in effect on the day before the date of enactment of
            this Act) and 104 of title 23, United States Code.

        (e) Applicability of Obligation Limitations to Transportation
    Research Programs.--
                (1) <<NOTE: Contracts.>> In general.--Except as provided in
            paragraph (2), obligation limitations imposed by subsection (a)
            shall apply

    [[Page 126 STAT. 419]]

            to contract authority for transportation research programs
            carried out under--
                        (A) chapter 5 of title 23, United States Code; and
                        (B) division E of this Act.
                (2) Exception.--Obligation authority made available under
            paragraph (1) shall--
                        (A) <<NOTE: Time period.>> remain available for a
                    period of 4 fiscal years; and
                        (B) be in addition to the amount of any limitation
                    imposed on obligations for Federal-aid highway and
                    highway safety construction programs for future fiscal
                    years.

        (f) Redistribution of Certain Authorized Funds.--
                (1) <<NOTE: Deadline.>> In general.--Not later than 30 days
            after the date of distribution of obligation authority under
            subsection (c) for each of fiscal years 2013 through 2014, the
            Secretary shall distribute to the States any funds (excluding
            funds authorized for the program under section 202 of title 23,
            United States Code) that--
                        (A) are authorized to be appropriated for the fiscal
                    year for Federal-aid highway programs; and
                        (B) the Secretary determines will not be allocated
                    to the States (or will not be apportioned to the States
                    under section 204 of title 23, United States Code), and
                    will not be available for obligation, for the fiscal
                    year because of the imposition of any obligation
                    limitation for the fiscal year.
                (2) Ratio.--Funds shall be distributed under paragraph (1)
            in the same proportion as the distribution of obligation
            authority under subsection (c)(5).
                (3) Availability.--Funds distributed to each State under
            paragraph (1) shall be available for any purpose described in
            section 133(c) of title 23, United States Code.
    SEC. 1103. DEFINITIONS.

        (a) Definitions.--Section 101(a) of title 23, United States Code, is
    amended--
                (1) by striking paragraphs (6), (7), (9), (12), (19), (20),
            (24), (25), (26), (28), (38), and (39);
                (2) by redesignating paragraphs (2), (3), (4), (5), (8),
            (13), (14), (15), (16), (17), (18), (21), (22), (23), (27),
            (29), (30), (31), (32), (33), (34), (35), (36), and (37) as
            paragraphs (3), (4), (5), (6), (9), (12), (13), (14), (15),
            (16), (17), (18), (19), (20), (21), (22), (23), (24), (25),
            (26), (28), (29), (33), and (34), respectively;
                (3) by inserting after paragraph (1) the following:
                ``(2) Asset management.--The term `asset management' means a
            strategic and systematic process of operating, maintaining, and
            improving physical assets, with a focus on both engineering and
            economic analysis based upon quality information, to identify a
            structured sequence of maintenance, preservation, repair,
            rehabilitation, and replacement actions that will achieve and
            sustain a desired state of good repair over the lifecycle of the
            assets at minimum practicable cost.'';
                (4) in paragraph (4) (as redesignated by paragraph (2))--
                        (A) in the matter preceding subparagraph (A), by
                    inserting ``or any project eligible for assistance under
                    this title'' after ``of a highway'';

    [[Page 126 STAT. 420]]

                        (B) by striking subparagraph (A) and inserting the
                    following:
                        ``(A) preliminary engineering, engineering, and
                    design-related services directly relating to the
                    construction of a highway project, including
                    engineering, design, project development and management,
                    construction project management and inspection,
                    surveying, mapping (including the establishment of
                    temporary and permanent geodetic control in accordance
                    with specifications of the National Oceanic and
                    Atmospheric Administration), and architectural-related
                    services;'';
                        (C) in subparagraph (B)--
                              (i) by inserting ``reconstruction,'' before
                          ``resurfacing''; and
                              (ii) by striking ``and rehabilitation'' and
                          inserting ``rehabilitation, and preservation'';
                        (D) in subparagraph (E) by striking ``railway'' and
                    inserting ``railway-highway''; and
                        (E) in subparagraph (F) by striking ``obstacles''
                    and inserting ``hazards'';
                (5) in paragraph (6) (as so redesignated)--
                        (A) by inserting ``public'' before ``highway
                    eligible''; and
                        (B) by inserting ``functionally'' before
                    ``classified'';
                (6) by inserting after paragraph (6) (as so redesignated)
            the following:
                ``(7) Federal lands access transportation facility.--The
            term `Federal Lands access transportation facility' means a
            public highway, road, bridge, trail, or transit system that is
            located on, is adjacent to, or provides access to Federal lands
            for which title or maintenance responsibility is vested in a
            State, county, town, township, tribal, municipal, or local
            government.
                ``(8) Federal lands transportation facility.--The term
            `Federal lands transportation facility' means a public highway,
            road, bridge, trail, or transit system that is located on, is
            adjacent to, or provides access to Federal lands for which title
            and maintenance responsibility is vested in the Federal
            Government, and that appears on the national Federal lands
            transportation facility inventory described in section
            203(c).'';
                (7) in paragraph (11)(B) by inserting ``including public
            roads on dams'' after ``drainage structure'';
                (8) in paragraph (14) (as so redesignated)--
                        (A) by striking ``as a'' and inserting ``as an air
                    quality''; and
                        (B) by inserting ``air quality'' before ``attainment
                    area'';
                (9) in paragraph (18) (as so redesignated) by striking ``an
            undertaking to construct a particular portion of a highway, or
            if the context so implies, the particular portion of a highway
            so constructed or any other undertaking'' and inserting ``any
            undertaking'';
                (10) in paragraph (19) (as so redesignated)--
                        (A) by striking ``the State transportation
                    department and''; and
                        (B) by inserting ``and the recipient'' after
                    ``Secretary'';
                (11) by striking paragraph (23) (as so redesignated) and
            inserting the following:

    [[Page 126 STAT. 421]]

                ``(23) Safety improvement project.--The term `safety
            improvement project' means a strategy, activity, or project on a
            public road that is consistent with the State strategic highway
            safety plan and corrects or improves a roadway feature that
            constitutes a hazard to road users or addresses a highway safety
            problem.'';
                (12) by inserting after paragraph (26) (as so redesignated)
            the following:
                ``(27) State strategic highway safety plan.--The term `State
            strategic highway safety plan' has the same meaning given such
            term in section 148(a).'';
                (13) by striking paragraph (29) (as so redesignated) and
            inserting the following:
                ``(29) Transportation alternatives.--The term
            `transportation alternatives' means any of the following
            activities when carried out as part of any program or project
            authorized or funded under this title, or as an independent
            program or project related to surface transportation:
                        ``(A) Construction, planning, and design of on-road
                    and off-road trail facilities for pedestrians,
                    bicyclists, and other nonmotorized forms of
                    transportation, including sidewalks, bicycle
                    infrastructure, pedestrian and bicycle signals, traffic
                    calming techniques, lighting and other safety-related
                    infrastructure, and transportation projects to achieve
                    compliance with the Americans with Disabilities Act of
                    1990 (42 U.S.C. 12101 et seq.).
                        ``(B) Construction, planning, and design of
                    infrastructure-related projects and systems that will
                    provide safe routes for non-drivers, including children,
                    older adults, and individuals with disabilities to
                    access daily needs.
                        ``(C) Conversion and use of abandoned railroad
                    corridors for trails for pedestrians, bicyclists, or
                    other nonmotorized transportation users.
                        ``(D) Construction of turnouts, overlooks, and
                    viewing areas.
                        ``(E) Community improvement activities, including--
                              ``(i) inventory, control, or removal of
                          outdoor advertising;
                              ``(ii) historic preservation and
                          rehabilitation of historic transportation
                          facilities;
                              ``(iii) vegetation management practices in
                          transportation rights-of-way to improve roadway
                          safety, prevent against invasive species, and
                          provide erosion control; and
                              ``(iv) archaeological activities relating to
                          impacts from implementation of a transportation
                          project eligible under this title.
                        ``(F) Any environmental mitigation activity,
                    including pollution prevention and pollution abatement
                    activities and mitigation to--
                              ``(i) address stormwater management, control,
                          and water pollution prevention or abatement
                          related to highway construction or due to highway
                          runoff, including activities described in sections
                          133(b)(11), 328(a), and 329; or

    [[Page 126 STAT. 422]]

                              ``(ii) reduce vehicle-caused wildlife
                          mortality or to restore and maintain connectivity
                          among terrestrial or aquatic habitats.''; and
                (14) by inserting after paragraph (29) (as so redesignated)
            the following:
                ``(30) Transportation systems management and operations.--
                        ``(A) In general.--The term `transportation systems
                    management and operations' means integrated strategies
                    to optimize the performance of existing infrastructure
                    through the implementation of multimodal and intermodal,
                    cross-jurisdictional systems, services, and projects
                    designed to preserve capacity and improve security,
                    safety, and reliability of the transportation system.
                        ``(B) Inclusions.--The term `transportation systems
                    management and operations' includes--
                              ``(i) actions such as traffic detection and
                          surveillance, corridor management, freeway
                          management, arterial management, active
                          transportation and demand management, work zone
                          management, emergency management, traveler
                          information services, congestion pricing, parking
                          management, automated enforcement, traffic
                          control, commercial vehicle operations, freight
                          management, and coordination of highway, rail,
                          transit, bicycle, and pedestrian operations; and
                              ``(ii) coordination of the implementation of
                          regional transportation system management and
                          operations investments (such as traffic incident
                          management, traveler information services,
                          emergency management, roadway weather management,
                          intelligent transportation systems, communication
                          networks, and information sharing systems)
                          requiring agreements, integration, and
                          interoperability to achieve targeted system
                          performance, reliability, safety, and customer
                          service levels.
                ``(31) Tribal transportation facility.--The term `tribal
            transportation facility' means a public highway, road, bridge,
            trail, or transit system that is located on or provides access
            to tribal land and appears on the national tribal transportation
            facility inventory described in section 202(b)(1).
                ``(32) Truck stop electrification system.--The term `truck
            stop electrification system' means a system that delivers heat,
            air conditioning, electricity, or communications to a heavy-duty
            vehicle.''.

        (b) Sense of Congress.--Section 101(c) of title 23, United States
    Code, is amended by striking ``system'' and inserting ``highway''.
    SEC. 1104. NATIONAL HIGHWAY SYSTEM.

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

        ``(a) In General.--For the purposes of this title, the Federal-aid
    system is the National Highway System, which includes the Interstate
    System.

    [[Page 126 STAT. 423]]

        ``(b) National Highway System.--
                ``(1) Description.--The National Highway System consists of
            the highway routes and connections to transportation facilities
            that shall--
                        ``(A) serve major population centers, international
                    border crossings, ports, airports, public transportation
                    facilities, and other intermodal transportation
                    facilities and other major travel destinations;
                        ``(B) meet national defense requirements; and
                        ``(C) serve interstate and interregional travel and
                    commerce.
                ``(2) Components.--The National Highway System described in
            paragraph (1) consists of the following:
                        ``(A) The National Highway System depicted on the
                    map submitted by the Secretary of Transportation to
                    Congress with the report entitled `Pulling Together: The
                    National Highway System and its Connections to Major
                    Intermodal Terminals' and dated May 24, 1996, and
                    modifications approved by the Secretary before the date
                    of enactment of the MAP-21.
                        ``(B) Other urban and rural principal arterial
                    routes, and border crossings on those routes, that were
                    not included on the National Highway System before the
                    date of enactment of the MAP-21.
                        ``(C) Other connector highways (including toll
                    facilities) that were not included in the National
                    Highway System before the date of enactment of the MAP-
                    21 but that provide motor vehicle access between
                    arterial routes on the National Highway System and a
                    major intermodal transportation facility.
                        ``(D) A strategic highway network that--
                              ``(i) consists of a network of highways that
                          are important to the United States strategic
                          defense policy, that provide defense access,
                          continuity, and emergency capabilities for the
                          movement of personnel, materials, and equipment in
                          both peacetime and wartime, and that were not
                          included on the National Highway System before the
                          date of enactment of the MAP-21;
                              ``(ii) may include highways on or off the
                          Interstate System; and
                              ``(iii) shall be designated by the Secretary,
                          in consultation with appropriate Federal agencies
                          and the States.
                        ``(E) Major strategic highway network connectors
                    that--
                              ``(i) consist of highways that provide motor
                          vehicle access between major military
                          installations and highways that are part of the
                          strategic highway network but were not included on
                          the National Highway System before the date of
                          enactment of the MAP-21; and
                              ``(ii) shall be designated by the Secretary,
                          in consultation with appropriate Federal agencies
                          and the States.
                ``(3) Modifications to nhs.--

    [[Page 126 STAT. 424]]

                        ``(A) In general.--The Secretary may make any
                    modification, including any modification consisting of a
                    connector to a major intermodal terminal, to the
                    National Highway System that is proposed by a State if
                    the Secretary determines that the modification--
                              ``(i) meets the criteria established for the
                          National Highway System under this title after the
                          date of enactment of the MAP-21; and
                              ``(ii) enhances the national transportation
                          characteristics of the National Highway System.
                        ``(B) Cooperation.--
                              ``(i) In general.--In proposing a modification
                          under this paragraph, a State shall cooperate with
                          local and regional officials.
                              ``(ii) Urbanized areas.--In an urbanized area,
                          the local officials shall act through the
                          metropolitan planning organization designated for
                          the area under section 134.

        ``(c) Interstate System.--
                ``(1) Description.--
                        ``(A) In general.--The Dwight D. Eisenhower National
                    System of Interstate and Defense Highways within the
                    United States (including the District of Columbia and
                    Puerto Rico) consists of highways designed, located, and
                    selected in accordance with this paragraph.
                        ``(B) Design.--
                              ``(i) In general.--Except as provided in
                          clause (ii), highways on the Interstate System
                          shall be designed in accordance with the standards
                          of section 109(b).
                              ``(ii) Exception.--Highways on the Interstate
                          System in Alaska and Puerto Rico shall be designed
                          in accordance with such geometric and construction
                          standards as are adequate for current and probable
                          future traffic demands and the needs of the
                          locality of the highway.
                        ``(C) Location.--Highways on the Interstate System
                    shall be located so as--
                              ``(i) to connect by routes, as direct as
                          practicable, the principal metropolitan areas,
                          cities, and industrial centers;
                              ``(ii) to serve the national defense; and
                              ``(iii) to the maximum extent practicable, to
                          connect at suitable border points with routes of
                          continental importance in Canada and Mexico.
                        ``(D) Selection of routes.--To the maximum extent
                    practicable, each route of the Interstate System shall
                    be selected by joint action of the State transportation
                    departments of the State in which the route is located
                    and the adjoining States, in cooperation with local and
                    regional officials, and subject to the approval of the
                    Secretary.
                ``(2) Maximum mileage.--The mileage of highways on the
            Interstate System shall not exceed 43,000 miles, exclusive of
            designations under paragraph (4).
                ``(3) Modifications.--The Secretary may approve or require
            modifications to the Interstate System in a manner

    [[Page 126 STAT. 425]]

            consistent with the policies and procedures established under
            this subsection.
                ``(4) Interstate system designations.--
                        ``(A) Additions.--If the Secretary determines that a
                    highway on the National Highway System meets all
                    standards of a highway on the Interstate System and that
                    the highway is a logical addition or connection to the
                    Interstate System, the Secretary may, upon the
                    affirmative recommendation of the State or States in
                    which the highway is located, designate the highway as a
                    route on the Interstate System.
                        ``(B) Designations as future interstate system
                    routes.--
                              ``(i) In general.--Subject to clauses (ii)
                          through (vi), if the Secretary determines that a
                          highway on the National Highway System would be a
                          logical addition or connection to the Interstate
                          System and would qualify for designation as a
                          route on the Interstate System under subparagraph
                          (A) if the highway met all standards of a highway
                          on the Interstate System, the Secretary may, upon
                          the affirmative recommendation of the State or
                          States in which the highway is located, designate
                          the highway as a future Interstate System route.
                              ``(ii) Written agreement.--A designation under
                          clause (i) shall be made only upon the written
                          agreement of each State described in that clause
                          that the highway will be constructed to meet all
                          standards of a highway on the Interstate System by
                          not later than the date that is 25 years after the
                          date of the agreement.
                              ``(iii) Failure to complete construction.--If
                          a State described in clause (i) has not
                          substantially completed the construction of a
                          highway designated under this subparagraph by the
                          date specified in clause (ii), the Secretary shall
                          remove the designation of the highway as a future
                          Interstate System route.
                              ``(iv) Effect of removal.--Removal of the
                          designation of a highway under clause (iii) shall
                          not preclude the Secretary from designating the
                          highway as a route on the Interstate System under
                          subparagraph (A) or under any other provision of
                          law providing for addition to the Interstate
                          System.
                              ``(v) Retroactive effect.--An agreement
                          described in clause (ii) that is entered into
                          before August 10, 2005, shall be deemed to include
                          the 25-year time limitation described in that
                          clause, regardless of any earlier construction
                          completion date in the agreement.
                              ``(vi) References.--No law, rule, regulation,
                          map, document, or other record of the United
                          States, or of any State or political subdivision
                          of a State, shall refer to any highway designated
                          as a future Interstate System route under this
                          subparagraph, and no such highway shall be signed
                          or marked, as a highway on the Interstate System,
                          until such time as the highway--

    [[Page 126 STAT. 426]]

                                        ``(I) is constructed to the
                                    geometric and construction standards for
                                    the Interstate System; and
                                        ``(II) has been designated as a
                                    route on the Interstate System.
                        ``(C) Financial responsibility.--Except as provided
                    in this title, the designation of a highway under this
                    paragraph shall create no additional Federal financial
                    responsibility with respect to the highway.
                ``(5) Exemption of interstate system.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the Interstate System shall not be
                    considered to be a historic site under section 303 of
                    title 49 or section 138 of this title, regardless of
                    whether the Interstate System or portions or elements of
                    the Interstate System are listed on, or eligible for
                    listing on, the National Register of Historic Places.
                        ``(B) Individual elements.--Subject to subparagraph
                    (C)--
                              ``(i) <<NOTE: Determination.>> the Secretary
                          shall determine, through the administrative
                          process established for exempting the Interstate
                          System from section 106 of the National Historic
                          Preservation Act (16 U.S.C. 470f), those
                          individual elements of the Interstate System that
                          possess national or exceptional historic
                          significance (such as a historic bridge or a
                          highly significant engineering feature); and
                              ``(ii) those elements shall be considered to
                          be historic sites under section 303 of title 49 or
                          section 138 of this title, as applicable.
                        ``(C) Construction, maintenance, restoration, and
                    rehabilitation activities.--Subparagraph (B) does not
                    prohibit a State from carrying out construction,
                    maintenance, preservation, restoration, or
                    rehabilitation activities for a portion of the
                    Interstate System referred to in subparagraph (B) upon
                    compliance with section 303 of title 49 or section 138
                    of this title, as applicable, and section 106 of the
                    National Historic Preservation Act (16 U.S.C. 470f).''.

        (b) Inclusion of Certain Route Segments on Interstate System.--
                (1) In general.--Section 1105(e)(5)(A) of the Intermodal
            Surface Transportation Efficiency Act of 1991 (105 Stat. 2031;
            109 Stat. 597; 115 Stat. 872) is amended--
                        (A) in the first sentence, by striking ``and in
                    subsections (c)(18) and (c)(20)'' and inserting ``, in
                    subsections (c)(18) and (c)(20), and in subparagraphs
                    (A)(iii) and (B) of subsection (c)(26)''; and
                        (B) in the second sentence, by striking ``that the
                    segment'' and all that follows through the period and
                    inserting ``that the segment meets the Interstate System
                    design standards approved by the Secretary under section
                    109(b) of title 23, United States Code, and is planned
                    to connect to an existing Interstate System segment by
                    the date that is 25 years after the date of enactment of
                    the MAP-21.''.
                (2) Route designation.--Section 1105(e)(5)(C)(i) of the
            Intermodal Surface Transportation Efficiency Act of 1991 (105

    [[Page 126 STAT. 427]]

            Stat. 2032; 109 Stat. 598) is amended by adding at the end the
            following: ``The routes referred to subparagraphs (A)(iii) and
            (B)(i) of subsection (c)(26) are designated as Interstate Route
            I-11.''.

        (c) Conforming Amendments.--
                (1) Analysis.--The analysis for chapter 1 of title 23,
            United States Code, is amended by striking the item relating to
            section 103 and inserting the following:

    ``103. National Highway System.''.

                (2) Section 113.--Section 113 of title 23, United States
            Code, is amended--
                        (A) in subsection (a) by striking ``the Federal-aid
                    systems'' and inserting ``Federal-aid highways''; and
                        (B) in subsection (b), in the first sentence, by
                    striking ``of the Federal-aid systems'' and inserting
                    ``Federal-aid highway''.
                (3) Section 123.--Section 123(a) of title 23, United States
            Code, is amended in the first sentence by striking ``Federal-aid
            system'' and inserting ``Federal-aid highway''.
                (4) Section 217.--Section 217(b) of title 23, United States
            Code, is amended in the subsection heading by striking
            ``National Highway System'' and inserting ``National Highway
            Performance Program''.
                (5) Section 304.--Section 304 of title 23, United States
            Code, is amended in the first sentence by striking ``the
            Federal-aid highway systems'' and inserting ``Federal-aid
            highways''.
                (6) Section 317.--Section 317(d) of title 23, United States
            Code, is amended by striking ``system'' and inserting
            ``highway''.
    SEC. 1105. APPORTIONMENT.

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

        ``(a) Administrative Expenses.--
                ``(1) In general.--There are authorized to be appropriated
            from the Highway Trust Fund (other than the Mass Transit
            Account) to be made available to the Secretary for
            administrative expenses of the Federal Highway Administration--
                        ``(A) $454,180,326 for fiscal year 2013; and
                        ``(B) $440,000,000 for fiscal year 2014.
                ``(2) Purposes.--The amounts authorized to be appropriated
            by this subsection shall be used--
                        ``(A) to administer the provisions of law to be
                    funded from appropriations for the Federal-aid highway
                    program and programs authorized under chapter 2;
                        ``(B) to make transfers of such sums as the
                    Secretary determines to be appropriate to the
                    Appalachian Regional Commission for administrative
                    activities associated with the Appalachian development
                    highway system; and
                        ``(C) to reimburse, as appropriate, the Office of
                    Inspector General of the Department of Transportation
                    for the conduct of annual audits of financial statements
                    in accordance with section 3521 of title 31.
                ``(3) Availability.--The amounts made available under
            paragraph (1) shall remain available until expended.

    [[Page 126 STAT. 428]]

        ``(b) Division of State Apportionments Among Programs.--The
    Secretary shall distribute the amount apportioned to a State for a
    fiscal year under subsection (c) among the national highway performance
    program, the surface transportation program, the highway safety
    improvement program, and the congestion mitigation and air quality
    improvement program, and to carry out section 134 as follows:
                ``(1) National highway performance program.--For the
            national highway performance program, 63.7 percent of the amount
            remaining after distributing amounts under paragraphs (4) and
            (5).
                ``(2) Surface transportation program.--For the surface
            transportation program, 29.3 percent of the amount remaining
            after distributing amounts under paragraphs (4) and (5).
                ``(3) Highway safety improvement program.--For the highway
            safety improvement program, 7 percent of the amount remaining
            after distributing amounts under paragraphs (4) and (5).
                ``(4) Congestion mitigation and air quality improvement
            program.--For the congestion mitigation and air quality
            improvement program, an amount determined by multiplying the
            amount determined for the State under subsection (c) by the
            proportion that--
                        ``(A) the amount apportioned to the State for the
                    congestion mitigation and air quality improvement
                    program for fiscal year 2009; bears to
                        ``(B) the total amount of funds apportioned to the
                    State for that fiscal year for the programs referred to
                    in section 105(a)(2) (except for the high priority
                    projects program referred to in section 105(a)(2)(H)),
                    as in effect on the day before the date of enactment of
                    the MAP-21.
                ``(5) Metropolitan planning.--To carry out section 134, an
            amount determined by multiplying the amount determined for the
            State under subsection (c) by the proportion that--
                        ``(A) the amount apportioned to the State to carry
                    out section 134 for fiscal year 2009; bears to
                        ``(B) the total amount of funds apportioned to the
                    State for that fiscal year for the programs referred to
                    in section 105(a)(2) (except for the high priority
                    projects program referred to in section 105(a)(2)(H)),
                    as in effect on the day before the date of enactment of
                    the MAP-21.

        ``(c) Calculation of State Amounts.--
                ``(1) For fiscal year 2013.--
                        ``(A) Calculation of amount.--For fiscal year 2013,
                    the amount for each State of combined apportionments for
                    the national highway performance program under section
                    119, the surface transportation program under section
                    133, the highway safety improvement program under
                    section 148, the congestion mitigation and air quality
                    improvement program under section 149, and to carry out
                    section 134 shall be equal to the combined amount of
                    apportionments that the State received for fiscal year
                    2012.
                        ``(B) State apportionment.--On October 1 of such
                    fiscal year, the Secretary shall apportion the sum
                    authorized to be appropriated for expenditure on the
                    national highway performance program under section 119,
                    the surface transportation program under section 133,
                    the highway

    [[Page 126 STAT. 429]]

                    safety improvement program under section 148, the
                    congestion mitigation and air quality improvement
                    program under section 149, and to carry out section 134
                    in accordance with subparagraph (A).
                ``(2) For fiscal year 2014.--
                        ``(A) State share.--For fiscal year 2014, the amount
                    for each State of combined apportionments for the
                    national highway performance program under section 119,
                    the surface transportation program under section 133,
                    the highway safety improvement program under section
                    148, the congestion mitigation and air quality
                    improvement program under section 149, and to carry out
                    section 134 shall be determined as follows:
                              ``(i) Initial amount.--The initial amount for
                          each State shall be determined by multiplying the
                          total amount available for apportionment by the
                          share for each State which shall be equal to the
                          proportion that--
                                        ``(I) the amount of apportionments
                                    that the State received for fiscal year
                                    2012; bears to
                                        ``(II) the amount of those
                                    apportionments received by all States
                                    for that fiscal year.
                              ``(ii) Adjustments to amounts.--The initial
                          amounts resulting from the calculation under
                          clause (i) shall be adjusted to ensure that, for
                          each State, the amount of combined apportionments
                          for the programs shall not be less than 95 percent
                          of the estimated tax payments attributable to
                          highway users in the State paid into the Highway
                          Trust Fund (other than the Mass Transit Account)
                          in the most recent fiscal year for which data are
                          available.
                        ``(B) State apportionment.--On October 1 of such
                    fiscal year, the Secretary shall apportion the sum
                    authorized to be appropriated for expenditure on the
                    national highway performance program under section 119,
                    the surface transportation program under section 133,
                    the highway safety improvement program under section
                    148, the congestion mitigation and air quality
                    improvement program under section 149, and to carry out
                    section 134 in accordance with subparagraph (A).

        ``(d) Metropolitan Planning.--
                ``(1) Use of amounts.--
                        ``(A) Use.--
                              ``(i) In general.--Except as provided in
                          clause (ii), the amounts apportioned to a State
                          under subsection (b)(5) shall be made available by
                          the State to the metropolitan planning
                          organizations responsible for carrying out section
                          134 in the State.
                              ``(ii) States receiving minimum
                          apportionment.--A State that received the minimum
                          apportionment for use in carrying out section 134
                          for fiscal year 2009 may, subject to the approval
                          of the Secretary, use the funds apportioned under
                          subsection (b)(5) to fund transportation planning
                          outside of urbanized areas.

    [[Page 126 STAT. 430]]

                        ``(B) Unused funds.--Any funds that are not used to
                    carry out section 134 may be made available by a
                    metropolitan planning organization to the State to fund
                    activities under section 135.
                ``(2) Distribution of amounts within states.--
                        ``(A) In general.--The distribution within any State
                    of the planning funds made available to organizations
                    under paragraph (1) shall be in accordance with a
                    formula that--
                              ``(i) is developed by each State and approved
                          by the Secretary; and
                              ``(ii) takes into consideration, at a minimum,
                          population, status of planning, attainment of air
                          quality standards, metropolitan area
                          transportation needs, and other factors necessary
                          to provide for an appropriate distribution of
                          funds to carry out section 134 and other
                          applicable requirements of Federal law.
                        ``(B) <<NOTE: Deadline.>> Reimbursement.--Not later
                    than 15 business days after the date of receipt by a
                    State of a request for reimbursement of expenditures
                    made by a metropolitan planning organization for
                    carrying out section 134, the State shall reimburse,
                    from amounts distributed under this paragraph to the
                    metropolitan planning organization by the State, the
                    metropolitan planning organization for those
                    expenditures.
                ``(3) Determination of population figures.--For the purpose
            of determining population figures under this subsection, the
            Secretary shall use the latest available data from the decennial
            census conducted under section 141(a) of title 13, United States
            Code.

        ``(e) <<NOTE: Deadlines.>> Certification of Apportionments.--
                ``(1) In general.--The Secretary shall--
                        ``(A) on October 1 of each fiscal year, certify to
                    each of the State transportation departments the amount
                    that has been apportioned to the State under this
                    section for the fiscal year; and
                        ``(B) to permit the States to develop adequate plans
                    for the use of amounts apportioned under this section,
                    advise each State of the amount that will be apportioned
                    to the State under this section for a fiscal year not
                    later than 90 days before the beginning of the fiscal
                    year for which the sums to be apportioned are
                    authorized.
                ``(2) Notice to states.--If the Secretary has not made an
            apportionment under this section for a fiscal year beginning
            after September 30, 1998, by not later than the date that is the
            twenty-first day of that fiscal year, the Secretary shall
            submit, by not later than that date, to the Committee on
            Transportation and Infrastructure of the House of
            Representatives and the Committee on Environment and Public
            Works of the Senate, a written statement of the reason for not
            making the apportionment in a timely manner.
                ``(3) Apportionment calculations.--
                        ``(A) In general.--The calculation of official
                    apportionments of funds to the States under this title
                    is a primary responsibility of the Department and shall
                    be carried out only by employees (and not contractors)
                    of the Department.

    [[Page 126 STAT. 431]]

                        ``(B) Prohibition on use of funds to hire
                    contractors.--None of the funds made available under
                    this title shall be used to hire contractors to
                    calculate the apportionments of funds to States.

        ``(f) Transfer of Highway and Transit Funds.--
                ``(1) Transfer of highway funds for transit projects.--
                        ``(A) In general.--Subject to subparagraph (B),
                    amounts made available for transit projects or
                    transportation planning under this title may be
                    transferred to and administered by the Secretary in
                    accordance with chapter 53 of title 49.
                        ``(B) <<NOTE: Applicability.>> Non-federal share.--
                    The provisions of this title relating to the non-Federal
                    share shall apply to the amounts transferred under
                    subparagraph (A).
                ``(2) Transfer of transit funds for highway projects.--
                        ``(A) In general.--Subject to subparagraph (B),
                    amounts made available for highway projects or
                    transportation planning under chapter 53 of title 49 may
                    be transferred to and administered by the Secretary in
                    accordance with this title.
                        ``(B) <<NOTE: Applicability.>> Non-federal share.--
                    The provisions of chapter 53 of title 49 relating to the
                    non-Federal share shall apply to amounts transferred
                    under subparagraph (A).
                ``(3) Transfer of funds among states or to federal highway
            administration.--
                        ``(A) In general.--Subject to subparagraph (B), the
                    Secretary may, at the request of a State, transfer
                    amounts apportioned or allocated under this title to the
                    State to another State, or to the Federal Highway
                    Administration, for the purpose of funding 1 or more
                    projects that are eligible for assistance with amounts
                    so apportioned or allocated.
                        ``(B) Apportionment.--The transfer shall have no
                    effect on any apportionment of amounts to a State under
                    this section.
                        ``(C) Funds suballocated to urbanized areas.--
                    Amounts that are apportioned or allocated to a State
                    under subsection (b)(3) (as in effect on the day before
                    the date of enactment of the MAP-21) or subsection
                    (b)(2) and attributed to an urbanized area of a State
                    with a population of more than 200,000 individuals under
                    section 133(d) may be transferred under this paragraph
                    only if the metropolitan planning organization
                    designated for the area concurs, in writing, with the
                    transfer request.
                ``(4) Transfer of obligation authority.--Obligation
            authority for amounts transferred under this subsection shall be
            transferred in the same manner and amount as the amounts for the
            projects that are transferred under this section.

        ``(g) <<NOTE: Public information. Web posting.>> Report to
    Congress.--For each fiscal year, the Secretary shall make available to
    the public, in a user-friendly format via the Internet, a report that
    describes--
                ``(1) the amount obligated, by each State, for Federal-aid
            highways and highway safety construction programs during the
            preceding fiscal year;
                ``(2) the balance, as of the last day of the preceding
            fiscal year, of the unobligated apportionment of each State by
            fiscal year under this section;

    [[Page 126 STAT. 432]]

                ``(3) the balance of unobligated sums available for
            expenditure at the discretion of the Secretary for such highways
            and programs for the fiscal year; and
                ``(4) the rates of obligation of funds apportioned or set
            aside under this section, according to--
                        ``(A) program;
                        ``(B) funding category of subcategory;
                        ``(C) type of improvement;
                        ``(D) State; and
                        ``(E) sub-State geographical area, including
                    urbanized and rural areas, on the basis of the
                    population of each such area.''.

        (b) Conforming Amendment.--Section 146(a) of title 23, United States
    Code, is amended by striking ``sections 104(b)(l) and 104(b)(3)'' and
    inserting ``section 104(b)(2)''.
    SEC. 1106. NATIONAL HIGHWAY PERFORMANCE PROGRAM.

        (a) In General.--Section 119 of title 23, United States Code, is
    amended to read as follows:
    ``Sec. 119. National highway performance program

        ``(a) Establishment.--The Secretary shall establish and implement a
    national highway performance program under this section.
        ``(b) Purposes.--The purposes of the national highway performance
    program shall be--
                ``(1) to provide support for the condition and performance
            of the National Highway System;
                ``(2) to provide support for the construction of new
            facilities on the National Highway System; and
                ``(3) to ensure that investments of Federal-aid funds in
            highway construction are directed to support progress toward the
            achievement of performance targets established in an asset
            management plan of a State for the National Highway System.

        ``(c) Eligible Facilities.--Except as provided in subsection (d), to
    be eligible for funding apportioned under section 104(b)(1) to carry out
    this section, a facility shall be located on the National Highway
    System, as defined in section 103.
        ``(d) Eligible Projects.--Funds apportioned to a State to carry out
    the national highway performance program may be obligated only for a
    project on an eligible facility that is--
                ``(1)(A) a project or part of a program of projects
            supporting progress toward the achievement of national
            performance goals for improving infrastructure condition,
            safety, mobility, or freight movement on the National Highway
            System; and
                ``(B) consistent with sections 134 and 135; and
                ``(2) for 1 or more of the following purposes:
                        ``(A) Construction, reconstruction, resurfacing,
                    restoration, rehabilitation, preservation, or
                    operational improvement of segments of the National
                    Highway System.
                        ``(B) Construction, replacement (including
                    replacement with fill material), rehabilitation,
                    preservation, and protection (including scour
                    countermeasures, seismic retrofits, impact protection
                    measures, security countermeasures, and protection
                    against extreme events) of bridges on the National
                    Highway System.

    [[Page 126 STAT. 433]]

                        ``(C) Construction, replacement (including
                    replacement with fill material), rehabilitation,
                    preservation, and protection (including impact
                    protection measures, security countermeasures, and
                    protection against extreme events) of tunnels on the
                    National Highway System.
                        ``(D) Inspection and evaluation, as described in
                    section 144, of bridges and tunnels on the National
                    Highway System, and inspection and evaluation of other
                    highway infrastructure assets on the National Highway
                    System, including signs and sign structures, earth
                    retaining walls, and drainage structures.
                        ``(E) Training of bridge and tunnel inspectors, as
                    described in section 144.
                        ``(F) Construction, rehabilitation, or replacement
                    of existing ferry boats and ferry boat facilities,
                    including approaches, that connect road segments of the
                    National Highway System.
                        ``(G) Construction, reconstruction, resurfacing,
                    restoration, rehabilitation, and preservation of, and
                    operational improvements for, a Federal-aid highway not
                    on the National Highway System, and construction of a
                    transit project eligible for assistance under chapter 53
                    of title 49, if--
                              ``(i) the highway project or transit project
                          is in the same corridor as, and in proximity to, a
                          fully access-controlled highway designated as a
                          part of the National Highway System;
                              ``(ii) the construction or improvements will
                          reduce delays or produce travel time savings on
                          the fully access-controlled highway described in
                          clause (i) and improve regional traffic flow; and
                              ``(iii) the construction or improvements are
                          more cost-effective, as determined by benefit-cost
                          analysis, than an improvement to the fully access-
                          controlled highway described in clause (i).
                        ``(H) Bicycle transportation and pedestrian walkways
                    in accordance with section 217.
                        ``(I) Highway safety improvements for segments of
                    the National Highway System.
                        ``(J) Capital and operating costs for traffic and
                    traveler information monitoring, management, and control
                    facilities and programs.
                        ``(K) Development and implementation of a State
                    asset management plan for the National Highway System in
                    accordance with this section, including data collection,
                    maintenance, and integration and the cost associated
                    with obtaining, updating, and licensing software and
                    equipment required for risk-based asset management and
                    performance-based management.
                        ``(L) Infrastructure-based intelligent
                    transportation systems capital improvements.
                        ``(M) Environmental restoration and pollution
                    abatement in accordance with section 328.
                        ``(N) Control of noxious weeds and aquatic noxious
                    weeds and establishment of native species in accordance
                    with section 329.

    [[Page 126 STAT. 434]]

                        ``(O) Environmental mitigation efforts related to
                    projects funded under this section, as described in
                    subsection (g).
                        ``(P) Construction of publicly owned intracity or
                    intercity bus terminals servicing the National Highway
                    System.

        ``(e) State Performance Management.--
                ``(1) In general.--A State shall develop a risk-based asset
            management plan for the National Highway System to improve or
            preserve the condition of the assets and the performance of the
            system.
                ``(2) Performance driven plan.--A State asset management
            plan shall include strategies leading to a program of projects
            that would make progress toward achievement of the State targets
            for asset condition and performance of the National Highway
            System in accordance with section 150(d) and supporting the
            progress toward the achievement of the national goals identified
            in section 150(b).
                ``(3) Scope.--In developing a risk-based asset management
            plan, the Secretary shall encourage States to include all
            infrastructure assets within the right-of-way corridor in such
            plan.
                ``(4) Plan contents.--A State asset management plan shall,
            at a minimum, be in a form that the Secretary determines to be
            appropriate and include--
                        ``(A) a summary listing of the pavement and bridge
                    assets on the National Highway System in the State,
                    including a description of the condition of those
                    assets;
                        ``(B) asset management objectives and measures;
                        ``(C) performance gap identification;
                        ``(D) lifecycle cost and risk management analysis;
                        ``(E) a financial plan; and
                        ``(F) investment strategies.
                ``(5) <<NOTE: Determination.>> Requirement for plan.--
            Notwithstanding section 120, with respect to the second fiscal
            year beginning after the date of establishment of the process
            established in paragraph (8) or any subsequent fiscal year, if
            the Secretary determines that a State has not developed and
            implemented a State asset management plan consistent with this
            section, the Federal share payable on account of any project or
            activity carried out by the State in that fiscal year under this
            section shall be 65 percent.
                ``(6) <<NOTE: Deadlines. Reviews.>> Certification of plan
            development process.--
                        ``(A) In general.--Not later than 90 days after the
                    date on which a State submits a request for approval of
                    the process used by the State to develop the State asset
                    management plan for the National Highway System, the
                    Secretary shall--
                              ``(i) review the process; and
                              ``(ii)(I) certify that the process meets the
                          requirements established by the Secretary; or
                              ``(II) deny certification and specify actions
                          necessary for the State to take to correct
                          deficiencies in the State process.
                        ``(B) Recertification.--Not less frequently than
                    once every 4 years, the Secretary shall review and
                    recertify that the process used by a State to develop
                    and maintain the State asset management plan for the
                    National Highway

    [[Page 126 STAT. 435]]

                    System meets the requirements for the process, as
                    established by the Secretary.
                        ``(C) Opportunity to cure.--If the Secretary denies
                    certification under subparagraph (A), the Secretary
                    shall provide the State with--
                              ``(i) not less than 90 days to cure the
                          deficiencies of the plan, during which time period
                          all penalties and other legal impacts of a denial
                          of certification shall be stayed; and
                              ``(ii) <<NOTE: Statement.>> a written
                          statement of the specific actions the Secretary
                          determines to be necessary for the State to cure
                          the plan.
                ``(7) <<NOTE: Reports.>> Performance achievement.--A State
            that does not achieve or make significant progress toward
            achieving the targets of the State for performance measures
            described in section 150(d) for the National Highway System for
            2 consecutive reports submitted under this paragraph shall
            include in the next report submitted a description of the
            actions the State will undertake to achieve the targets.
                ``(8) <<NOTE: Deadline. Regulations.>> Process.--Not later
            than 18 months after the date of enactment of the MAP-21, the
            Secretary shall, by regulation and in consultation with State
            departments of transportation, establish the process to develop
            the State asset management plan described in paragraph (1).

        ``(f) Interstate System and NHS Bridge Conditions.--
                ``(1) Condition of interstate system.--
                        ``(A) Penalty.--If, during 2 consecutive reporting
                    periods, the condition of the Interstate System,
                    excluding bridges on the Interstate System, in a State
                    falls below the minimum condition level established by
                    the Secretary under section 150(c)(3), the State shall
                    be required, during the following fiscal year--
                              ``(i) to obligate, from the amounts
                          apportioned to the State under section 104(b)(1),
                          an amount that is not less than the amount of
                          funds apportioned to the State for fiscal year
                          2009 under the Interstate maintenance program for
                          the purposes described in this section (as in
                          effect on the day before the date of enactment of
                          the MAP-21), except that for each year after
                          fiscal year 2013, the amount required to be
                          obligated under this clause shall be increased by
                          2 percent over the amount required to be obligated
                          in the previous fiscal year; and
                              ``(ii) to transfer, from the amounts
                          apportioned to the State under section 104(b)(2)
                          (other than amounts suballocated to metropolitan
                          areas and other areas of the State under section
                          133(d)) to the apportionment of the State under
                          section 104(b)(1), an amount equal to 10 percent
                          of the amount of funds apportioned to the State
                          for fiscal year 2009 under the Interstate
                          maintenance program for the purposes described in
                          this section (as in effect on the day before the
                          date of enactment of the MAP-21).
                        ``(B) Restoration.--The obligation requirement for
                    the Interstate System in a State required by
                    subparagraph (A) for a fiscal year shall remain in
                    effect for each subsequent fiscal year until such time
                    as the condition of the

    [[Page 126 STAT. 436]]

                    Interstate System in the State exceeds the minimum
                    condition level established by the Secretary.
                ``(2) Condition of nhs bridges.--
                        ``(A) <<NOTE: Determination. Time
                    period.>> Penalty.--If the Secretary determines that,
                    for the 3-year-period preceding the date of the
                    determination, more than 10 percent of the total deck
                    area of bridges in the State on the National Highway
                    System is located on bridges that have been classified
                    as structurally deficient, an amount equal to 50 percent
                    of funds apportioned to such State for fiscal year 2009
                    to carry out section 144 (as in effect the day before
                    enactment of MAP-21) shall be set aside from amounts
                    apportioned to a State for a fiscal year under section
                    104(b)(1) only for eligible projects on bridges on the
                    National Highway System.
                        ``(B) Restoration.--The set-aside requirement for
                    bridges on the National Highway System in a State under
                    subparagraph (A) for a fiscal year shall remain in
                    effect for each subsequent fiscal year until such time
                    as less than 10 percent of the total deck area of
                    bridges in the State on the National Highway System is
                    located on bridges that have been classified as
                    structurally deficient, as determined by the Secretary.

        ``(g) Environmental Mitigation.--
                ``(1) Eligible activities.--In accordance with all
            applicable Federal law (including regulations), environmental
            mitigation efforts referred to in subsection (d)(2)(O) include
            participation in natural habitat and wetlands mitigation efforts
            relating to projects funded under this title, which may
            include--
                        ``(A) participation in mitigation banking or other
                    third-party mitigation arrangements, such as--
                              ``(i) the purchase of credits from commercial
                          mitigation banks;
                              ``(ii) the establishment and management of
                          agency-sponsored mitigation banks; and
                              ``(iii) the purchase of credits or
                          establishment of in-lieu fee mitigation programs;
                        ``(B) contributions to statewide and regional
                    efforts to conserve, restore, enhance, and create
                    natural habitats and wetlands; and
                        ``(C) the development of statewide and regional
                    environmental protection plans, including natural
                    habitat and wetland conservation and restoration plans.
                ``(2) Inclusion of other activities.--The banks, efforts,
            and plans described in paragraph (1) include any such banks,
            efforts, and plans developed in accordance with applicable law
            (including regulations).
                ``(3) <<NOTE: Applicability.>> Terms and conditions.--The
            following terms and conditions apply to natural habitat and
            wetlands mitigation efforts under this subsection:
                        ``(A) Contributions to the mitigation effort may--
                              ``(i) take place concurrent with, or in
                          advance of, commitment of funding under this title
                          to a project or projects; and
                              ``(ii) occur in advance of project
                          construction only if the efforts are consistent
                          with all applicable requirements of Federal law
                          (including regulations) and State transportation
                          planning processes.

    [[Page 126 STAT. 437]]

                        ``(B) Credits from any agency-sponsored mitigation
                    bank that are attributable to funding under this section
                    may be used only for projects funded under this title,
                    unless the agency pays to the Secretary an amount equal
                    to the Federal funds attributable to the mitigation bank
                    credits the agency uses for purposes other than
                    mitigation of a project funded under this title.
                ``(4) Preference.--At the discretion of the project sponsor,
            preference shall be given, to the maximum extent practicable, to
            mitigating an environmental impact through the use of a
            mitigation bank, in-lieu fee, or other third-party mitigation
            arrangement, if the use of credits from the mitigation bank or
            in-lieu fee, or the other third-party mitigation arrangement for
            the project, is approved by the applicable Federal agency.''.

        (b) <<NOTE: 23 USC 119 note.>> Transition Period.--
                (1) <<NOTE: Deadline.>> In general.--Except as provided in
            paragraph (2), until such date as a State has in effect an
            approved asset management plan and has established performance
            targets as described in sections 119 and 150 of title 23, United
            States Code, that will contribute to achieving the national
            goals for the condition and performance of the National Highway
            System, but not later than 18 months after the date on which the
            Secretary promulgates the final regulation required under
            section 150(c) of that title, the Secretary shall approve
            obligations of funds apportioned to a State to carry out the
            national highway performance program under section 119 of that
            title, for projects that otherwise meet the requirements of that
            section.
                (2) Extension.--The Secretary may extend the transition
            period for a State under paragraph (1) if the Secretary
            determines that the State has made a good faith effort to
            establish an asset management plan and performance targets
            referred to in that paragraph.

        (c) Conforming Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by striking the item relating to section
    119 and inserting the following:

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

    SEC. 1107. EMERGENCY RELIEF.

        Section 125 of title 23, United States Code, is amended to read as
    follows:
    ``Sec. 125. Emergency relief

        ``(a) In General.--Subject to this section and section 120, an
    emergency fund is authorized for expenditure by the Secretary for the
    repair or reconstruction of highways, roads, and trails, in any area of
    the United States, including Indian reservations, that the Secretary
    finds have suffered serious damage as a result of--
                ``(1) a natural disaster over a wide area, such as by a
            flood, hurricane, tidal wave, earthquake, severe storm, or
            landslide; or
                ``(2) catastrophic failure from any external cause.

        ``(b) Restriction on Eligibility.--
                ``(1) Definition of construction phase.--In this subsection,
            the term `construction phase' means the phase of physical
            construction of a highway or bridge facility that is separate
            from any other identified phases, such as planning, design,

    [[Page 126 STAT. 438]]

            or right-of-way phases, in the State transportation improvement
            program.
                ``(2) Restriction.--In no case shall funds be used under
            this section for the repair or reconstruction of a bridge--
                        ``(A) that has been permanently closed to all
                    vehicular traffic by the State or responsible local
                    official because of imminent danger of collapse due to a
                    structural deficiency or physical deterioration; or
                        ``(B) if a construction phase of a replacement
                    structure is included in the approved Statewide
                    transportation improvement program at the time of an
                    event described in subsection (a).

        ``(c) Funding.--
                ``(1) In general.--Subject to the limitations described in
            paragraph (2), there are authorized to be appropriated from the
            Highway Trust Fund (other than the Mass Transit Account) such
            sums as are necessary to establish the fund authorized by this
            section and to replenish that fund on an annual basis.
                ``(2) Limitations.--The limitations referred to in paragraph
            (1) are that--
                        ``(A) not more than $100,000,000 is authorized to be
                    obligated in any 1 fiscal year commencing after
                    September 30, 1980, to carry out this section, except
                    that, if for any fiscal year the total of all
                    obligations under this section is less than the amount
                    authorized to be obligated for the fiscal year, the
                    unobligated balance of that amount shall--
                              ``(i) remain available until expended; and
                              ``(ii) be in addition to amounts otherwise
                          available to carry out this section for each year;
                          and
                        ``(B)(i) pending such appropriation or
                    replenishment, the Secretary may obligate from any funds
                    appropriated at any time for obligation in accordance
                    with this title, including existing Federal-aid
                    appropriations, such sums as are necessary for the
                    immediate prosecution of the work herein authorized; and
                        ``(ii) funds obligated under this subparagraph shall
                    be reimbursed from the appropriation or replenishment.

        ``(d) Eligibility.--
                ``(1) In general.--The Secretary may expend funds from the
            emergency fund authorized by this section only for the repair or
            reconstruction of highways on Federal-aid highways in accordance
            with this chapter, except that--
                        ``(A) no funds shall be so expended unless an
                    emergency has been declared by the Governor of the State
                    with concurrence by the Secretary, unless the President
                    has declared the emergency to be a major disaster for
                    the purposes of the Robert T. Stafford Disaster Relief
                    and Emergency Assistance Act (42 U.S.C. 5121 et seq.)
                    for which concurrence of the Secretary is not required;
                    and
                        ``(B) <<NOTE: Deadline.>> the Secretary has received
                    an application from the State transportation department
                    that includes a comprehensive list of all eligible
                    project sites and repair costs by not later than 2 years
                    after the natural disaster or catastrophic failure.
                ``(2) Cost limitation.--

    [[Page 126 STAT. 439]]

                        ``(A) Definition of comparable facility.--In this
                    paragraph, the term `comparable facility' means a
                    facility that meets the current geometric and
                    construction standards required for the types and volume
                    of traffic that the facility will carry over its design
                    life.
                        ``(B) Limitation.--The total cost of a project
                    funded under this section may not exceed the cost of
                    repair or reconstruction of a comparable facility.
                ``(3) Debris removal.--The costs of debris removal shall be
            an eligible expense under this section only for--
                        ``(A) an event not declared a major disaster or
                    emergency by the President under the Robert T. Stafford
                    Disaster Relief and Emergency Assistance Act (42 U.S.C.
                    5121 et seq.); or
                        ``(B) an event declared a major disaster or
                    emergency by the President under that Act if the debris
                    removal is not eligible for assistance under section
                    403, 407, or 502 of that Act (42 U.S.C. 5170b, 5173,
                    5192).
                ``(4) Territories.--The total obligations for projects under
            this section for any fiscal year in the Virgin Islands, Guam,
            American Samoa, and the Commonwealth of the Northern Mariana
            Islands shall not exceed $20,000,000.
                ``(5) Substitute traffic.--Notwithstanding any other
            provision of this section, actual and necessary costs of
            maintenance and operation of ferryboats or additional transit
            service providing temporary substitute highway traffic service,
            less the amount of fares charged for comparable service, may be
            expended from the emergency fund authorized by this section for
            Federal-aid highways.

        ``(e) Tribal Transportation Facilities, Federal Lands Transportation
    Facilities, and Public Roads on Federal Lands.--
                ``(1) Definition of open to public travel.--In this
            subsection, the term `open to public travel' means, with respect
            to a road, that, except during scheduled periods, extreme
            weather conditions, or emergencies, the road is open to the
            general public for use with a standard passenger vehicle,
            without restrictive gates or prohibitive signs or regulations,
            other than for general traffic control or restrictions based on
            size, weight, or class of registration.
                ``(2) Expenditure of funds.--Notwithstanding subsection
            (d)(1), the Secretary may expend funds from the emergency fund
            authorized by this section, independently or in cooperation with
            any other branch of the Federal Government, a State agency, a
            tribal government, an organization, or a person, for the repair
            or reconstruction of tribal transportation facilities, Federal
            lands transportation facilities, and other federally owned roads
            that are open to public travel, whether or not those facilities
            are Federal-aid highways.
                ``(3) Reimbursement.--
                        ``(A) In general.--The Secretary may reimburse
                    Federal and State agencies (including political
                    subdivisions) for expenditures made for projects
                    determined eligible under this section, including
                    expenditures for emergency repairs made before a
                    determination of eligibility.
                        ``(B) Transfers.--With respect to reimbursements
                    described in subparagraph (A)--

    [[Page 126 STAT. 440]]

                              ``(i) those reimbursements to Federal agencies
                          and Indian tribal governments shall be transferred
                          to the account from which the expenditure was
                          made, or to a similar account that remains
                          available for obligation; and
                              ``(ii) the budget authority associated with
                          the expenditure shall be restored to the agency
                          from which the authority was derived and shall be
                          available for obligation until the end of the
                          fiscal year following the year in which the
                          transfer occurs.

        ``(f) Treatment of Territories.--For purposes of this section, the
    Virgin Islands, Guam, American Samoa, and the Commonwealth of the
    Northern Mariana Islands shall be considered to be States and parts of
    the United States, and the chief executive officer of each such
    territory shall be considered to be a Governor of a State.
        ``(g) Protecting Public Safety and Maintaining Roadways.--The
    Secretary may use not more than 5 percent of amounts from the emergency
    fund authorized by this section to carry out projects that the Secretary
    determines are necessary to protect the public safety or to maintain or
    protect roadways that are included within the scope of an emergency
    declaration by the Governor of the State or by the President, in
    accordance with this section, and the Governor deems to be an ongoing
    concern in order to maintain vehicular traffic on the roadway.''.
    SEC. 1108. SURFACE TRANSPORTATION PROGRAM.

        (a) Eligible Projects.--Section 133(b) of title 23, United States
    Code, is amended--
                (1) in the matter preceding paragraph (1) by striking
            ``section 104(b)(3)'' and inserting ``section 104(b)(2)'';
                (2) by striking paragraph (1);
                (3) by redesignating paragraphs (2) through (15) as
            paragraphs (5) through (18), respectively;
                (4) by inserting before paragraph (5) (as so redesignated)
            the following:
                ``(1) Construction, reconstruction, rehabilitation,
            resurfacing, restoration, preservation, or operational
            improvements for highways, including construction of designated
            routes of the Appalachian development highway system and local
            access roads under section 14501 of title 40.
                ``(2) Replacement (including replacement with fill
            material), rehabilitation, preservation, protection (including
            painting, scour countermeasures, seismic retrofits, impact
            protection measures, security countermeasures, and protection
            against extreme events) and application of calcium magnesium
            acetate, sodium acetate/formate, or other environmentally
            acceptable, minimally corrosive anti-icing and deicing
            compositions for bridges (and approaches to bridges and other
            elevated structures) and tunnels on public roads of all
            functional classifications, including any such construction or
            reconstruction necessary to accommodate other transportation
            modes.
                ``(3) Construction of a new bridge or tunnel at a new
            location on a Federal-aid highway.
                ``(4) Inspection and evaluation of bridges and tunnels and
            training of bridge and tunnel inspectors (as defined in section

    [[Page 126 STAT. 441]]

            144), and inspection and evaluation of other highway assets
            (including signs, retaining walls, and drainage structures).'';
                (5) by striking paragraph (6) (as so redesignated) and
            inserting the following:
                ``(6) Carpool projects, fringe and corridor parking
            facilities and programs, including electric vehicle and natural
            gas vehicle infrastructure in accordance with section 137,
            bicycle transportation and pedestrian walkways in accordance
            with section 217, and the modifications of public sidewalks to
            comply with the Americans with Disabilities Act of 1990 (42
            U.S.C. 12101 et seq.).'';
                (6) by striking paragraph (7) (as so redesignated) and
            inserting the following:
                ``(7) Highway and transit safety infrastructure improvements
            and programs, installation of safety barriers and nets on
            bridges, hazard eliminations, projects to mitigate hazards
            caused by wildlife, and railway-highway grade crossings.'';
                (7) in paragraph (11) (as so redesignated) by striking
            ``enhancement activities'' and inserting ``alternatives'';
                (8) by striking paragraph (14) (as so redesignated) and
            inserting the following:
                ``(14) Environmental mitigation efforts relating to projects
            funded under this title in the same manner and to the same
            extent as such activities are eligible under section 119(g).'';
            and
                (9) by inserting after paragraph (18) (as so redesignated)
            the following:
                ``(19) Projects and strategies designed to support
            congestion pricing, including electric toll collection and
            travel demand management strategies and programs.
                ``(20) Recreational trails projects eligible for funding
            under section 206.
                ``(21) Construction of ferry boats and ferry terminal
            facilities eligible for funding under section 129(c).
                ``(22) Border infrastructure projects eligible for funding
            under section 1303 of the SAFETEA-LU (23 U.S.C. 101 note; Public
            Law 109-59).
                ``(23) Truck parking facilities eligible for funding under
            section 1401 of the MAP-21.
                ``(24) Development and implementation of a State asset
            management plan for the National Highway System in accordance
            with section 119, including data collection, maintenance, and
            integration and the costs associated with obtaining, updating,
            and licensing software and equipment required for risk based
            asset management and performance based management, and for
            similar activities related to the development and implementation
            of a performance based management program for other public
            roads.
                ``(25) A project that, if located within the boundaries of a
            port terminal, includes only such surface transportation
            infrastructure modifications as are necessary to facilitate
            direct intermodal interchange, transfer, and access into and out
            of the port.
                ``(26) Construction and operational improvements for any
            minor collector if--
                        ``(A) the minor collector, and the project to be
                    carried out with respect to the minor collector, are in
                    the same

    [[Page 126 STAT. 442]]

                    corridor as, and in proximity to, a Federal-aid highway
                    designated as part of the National Highway System;
                        ``(B) the construction or improvements will enhance
                    the level of service on the Federal-aid highway
                    described in subparagraph (A) and improve regional
                    traffic flow; and
                        ``(C) the construction or improvements are more
                    cost-effective, as determined by a benefit-cost
                    analysis, than an improvement to the Federal-aid highway
                    described in subparagraph (A).''.

        (b) Location of Projects.--Section 133 of title 23, United States
    Code, is amended by striking subsection (c) and inserting the following:
        ``(c) Location of Projects.--Surface transportation program projects
    may not be undertaken on roads functionally classified as local or rural
    minor collectors unless the roads were on a Federal-aid highway system
    on January 1, 1991, except--
                ``(1) as provided in subsection (g);
                ``(2) for projects described in paragraphs (2), (4), (6),
            (7), (11), (20), (25), and (26) of subsection (b); and
                ``(3) as approved by the Secretary.''.

        (c) Allocation of Apportioned Funds.--Section 133 of the title 23,
    United States Code, is amended by striking subsection (d) and inserting
    the following:
        ``(d) Allocations of Apportioned Funds to Areas Based on
    Population.--
                ``(1) Calculation.--Of the funds apportioned to a State
            under section 104(b)(2)--
                        ``(A) 50 percent for a fiscal year shall be
                    obligated under this section, in proportion to their
                    relative shares of the population of the State--
                              ``(i) in urbanized areas of the State with an
                          urbanized area population of over 200,000;
                              ``(ii) in areas of the State other than urban
                          areas with a population greater than 5,000; and
                              ``(iii) in other areas of the State; and
                        ``(B) 50 percent may be obligated in any area of the
                    State.
                ``(2) Metropolitan areas.--Funds attributed to an urbanized
            area under paragraph (1)(A)(i) may be obligated in the
            metropolitan area established under section 134 that encompasses
            the urbanized area.
                ``(3) Consultation with regional transportation planning
            organizations.--For purposes of paragraph (1)(A)(ii), before
            obligating funding attributed to an area with a population
            greater than 5,000 and less than 200,000, a State shall consult
            with the regional transportation planning organizations that
            represent the area, if any.
                ``(4) Distribution among urbanized areas of over 200,000
            population.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the amount of funds that a State is
                    required to obligate under paragraph (1)(A)(i) shall be
                    obligated in urbanized areas described in paragraph
                    (1)(A)(i) based on the relative population of the areas.
                        ``(B) Other factors.--The State may obligate the
                    funds described in subparagraph (A) based on other
                    factors if the State and the relevant metropolitan
                    planning

    [[Page 126 STAT. 443]]

                    organizations jointly apply to the Secretary for the
                    permission to base the obligation on other factors and
                    the Secretary grants the request.
                ``(5) Applicability of planning requirements.--Programming
            and expenditure of funds for projects under this section shall
            be consistent with sections 134 and 135.''.

        (d) Administration.--Section 133 of title 23, United States Code, is
    amended by striking subsection (e) and inserting the following:
        ``(e) Administration.--
                ``(1) Submission of project agreement.--For each fiscal
            year, each State shall submit a project agreement that--
                        ``(A) <<NOTE: Certification.>> certifies that the
                    State will meet all the requirements of this section;
                    and
                        ``(B) <<NOTE: Notification.>> notifies the Secretary
                    of the amount of obligations needed to carry out the
                    program under this section.
                ``(2) Request for adjustments of amounts.--Each State shall
            request from the Secretary such adjustments to the amount of
            obligations referred to in paragraph (1)(B) as the State
            determines to be necessary.
                ``(3) Effect of approval by the secretary.--Approval by the
            Secretary of a project agreement under paragraph (1) shall be
            deemed a contractual obligation of the United States to pay
            surface transportation program funds made available under this
            title.''.

        (e) Obligation Authority.--Section 133(f)(1) of title 23, United
    States Code, is amended by striking ``2004 through 2006 and the period
    of fiscal years 2007 through 2009'' and inserting ``2011 through 2014''.
        (f) Bridges Not on Federal-aid Highways.--Section 133 of the title
    23, United States Code, is amended by adding at the end the following:
        ``(g) Bridges Not on Federal-aid Highways.--
                ``(1) Definition of off-system bridge.--In this subsection,
            the term `off-system bridge' means a highway bridge located on a
            public road, other than a bridge on a Federal-aid highway.
                ``(2) Special rule.--
                        ``(A) Set-aside.--Of the amounts apportioned to a
                    State for fiscal year 2013 and each fiscal year
                    thereafter under this section, the State shall obligate
                    for activities described in subsection (b)(2) for off-
                    system bridges an amount that is not less than 15
                    percent of the amount of funds apportioned to the State
                    for the highway bridge program for fiscal year 2009,
                    except that amounts allocated under subsection (d) shall
                    not be obligated to carry out this subsection.
                        ``(B) Reduction of expenditures.--The Secretary,
                    after consultation with State and local officials, may
                    reduce the requirement for expenditures for off-system
                    bridges under subparagraph (A) with respect to the State
                    if the Secretary determines that the State has
                    inadequate needs to justify the expenditure.
                ``(3) Credit for bridges not on federal-aid highways.--
            Notwithstanding any other provision of law, with respect to any
            project not on a Federal-aid highway for the replacement of a
            bridge or rehabilitation of a bridge that is wholly funded from
            State and local sources, is eligible for Federal funds under

    [[Page 126 STAT. 444]]

            this section, is noncontroversial, is certified by the State to
            have been carried out in accordance with all standards
            applicable to such projects under this section, and is
            determined by the Secretary upon completion to be no longer a
            deficient bridge--
                        ``(A) any amount expended after the date of
                    enactment of this subsection from State and local
                    sources for the project in excess of 20 percent of the
                    cost of construction of the project may be credited to
                    the non-Federal share of the cost of other bridge
                    projects in the State that are eligible for Federal
                    funds under this section; and
                        ``(B) that crediting shall be conducted in
                    accordance with procedures established by the Secretary.

        ``(h) Special Rule for Areas of Less Than 5,000 Population.--
                ``(1) Special rule.--Notwithstanding subsection (c), and
            except as provided in paragraph (2), up to 15 percent of the
            amounts required to be obligated by a State under subsection
            (d)(1)(A)(iii) for each of fiscal years 2013 through 2014 may be
            obligated on roads functionally classified as minor collectors.
                ``(2) Suspension.--The Secretary may suspend the application
            of paragraph (1) with respect to a State if the Secretary
            determines that the authority provided under paragraph (1) is
            being used excessively by the State.''.
    SEC. 1109. WORKFORCE DEVELOPMENT.

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

        (b) Disadvantaged Business Enterprise.--Section 140(c) of title 23,
    United States Code, is amended in the second sentence by striking
    ``Whenever apportionments are made under section 104(b)(3),'' and
    inserting ``From administrative funds made available under section
    104(a),''.
    SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.

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

    [[Page 126 STAT. 445]]

                        (B) in paragraph (8) by striking ``section
                    104(b)(3)'' and inserting ``section 104(b)(2)''; and
                (2) in subsection (c)(3) by striking ``for each of fiscal
            years 2005 through 2009,'' and inserting ``for each fiscal
            year,''.
    SEC. 1111. NATIONAL BRIDGE AND TUNNEL INVENTORY AND INSPECTION
                              STANDARDS.

        (a) In General.--Section 144 of title 23, United States Code, is
    amended to read as follows:
    ``Sec. 144. National bridge and tunnel inventory and inspection
                    standards

        ``(a) Findings and Declarations.--
                ``(1) Findings.--Congress finds that--
                        ``(A) the condition of the bridges of the United
                    States has improved since the date of enactment of the
                    Transportation Equity Act for the 21st Century (Public
                    Law 105-178; 112 Stat. 107), yet continued improvement
                    to bridge conditions is essential to protect the safety
                    of the traveling public and allow for the efficient
                    movement of people and goods on which the economy of the
                    United States relies; and
                        ``(B) the systematic preventative maintenance of
                    bridges, and replacement and rehabilitation of deficient
                    bridges, should be undertaken through an overall asset
                    management approach to transportation investment.
                ``(2) Declarations.--Congress declares that it is in the
            vital interest of the United States--
                        ``(A) to inventory, inspect, and improve the
                    condition of the highway bridges and tunnels of the
                    United States;
                        ``(B) to use a data-driven, risk-based approach and
                    cost-effective strategy for systematic preventative
                    maintenance, replacement, and rehabilitation of highway
                    bridges and tunnels to ensure safety and extended
                    service life;
                        ``(C) to use performance-based bridge management
                    systems to assist States in making timely investments;
                        ``(D) to ensure accountability and link performance
                    outcomes to investment decisions; and
                        ``(E) to ensure connectivity and access for
                    residents of rural areas of the United States through
                    strategic investments in National Highway System bridges
                    and bridges on all public roads.

        ``(b) National Bridge and Tunnel Inventories.--The Secretary, in
    consultation with the States and Federal agencies with jurisdiction over
    highway bridges and tunnels, shall--
                ``(1) inventory all highway bridges on public roads, on and
            off Federal-aid highways, including tribally owned and Federally
            owned bridges, that are bridges over waterways, other
            topographical barriers, other highways, and railroads;
                ``(2) inventory all tunnels on public roads, on and off
            Federal-aid highways, including tribally owned and Federally
            owned tunnels;
                ``(3) classify the bridges according to serviceability,
            safety, and essentiality for public use, including the potential
            impacts to emergency evacuation routes and to regional and
            national freight and passenger mobility if the serviceability of
            the bridge is restricted or diminished;

    [[Page 126 STAT. 446]]

                ``(4) based on that classification, assign each a risk-based
            priority for systematic preventative maintenance, replacement,
            or rehabilitation; and
                ``(5) determine the cost of replacing each structurally
            deficient bridge identified under this subsection with a
            comparable facility or the cost of rehabilitating the bridge.

        ``(c) General Bridge Authority.--
                ``(1) In general.--Except as provided in paragraph (2) and
            notwithstanding any other provision of law, the General Bridge
            Act of 1946 (33 U.S.C. 525 et seq.) shall apply to bridges
            authorized to be replaced, in whole or in part, by this title.
                ``(2) Exception.--Section 502(b) of the General Bridge Act
            of 1946 (33 U.S.C. 525(b)) and section 9 of the Act of March 3,
            1899 (33 U.S.C. 401), shall not apply to any bridge constructed,
            reconstructed, rehabilitated, or replaced with assistance under
            this title, if the bridge is over waters that--
                        ``(A) are not used and are not susceptible to use in
                    the natural condition of the bridge or by reasonable
                    improvement as a means to transport interstate or
                    foreign commerce; and
                        ``(B) are--
                              ``(i) not tidal; or
                              ``(ii) if tidal, used only by recreational
                          boating, fishing, and other small vessels that are
                          less than 21 feet in length.

        ``(d) Inventory Updates and Reports.--
                ``(1) In general.--The Secretary shall--
                        ``(A) annually revise the inventories authorized by
                    subsection (b); and
                        ``(B) submit to the Committee on Transportation and
                    Infrastructure of the House of Representatives and the
                    Committee on Environment and Public Works of the Senate
                    a report on the inventories.
                ``(2) Inspection report.--Not later than 2 years after the
            date of enactment of the MAP-21, each State and appropriate
            Federal agency shall report element level data to the Secretary,
            as each bridge is inspected pursuant to this section, for all
            highway bridges on the National Highway System.
                ``(3) Guidance.--The Secretary shall provide guidance to
            States and Federal agencies for implementation of this
            subsection, while respecting the existing inspection schedule of
            each State.
                ``(4) Bridges not on national highway system.--The Secretary
            shall--
                        ``(A) <<NOTE: Study.>> conduct a study on the
                    benefits, cost-effectiveness, and feasibility of
                    requiring element-level data collection for bridges not
                    on the National Highway System; and
                        ``(B) submit to the Committee on Transportation and
                    Infrastructure of the House of Representatives and the
                    Committee on Environment and Public Works of the Senate
                    a report on the results of the study.

        ``(e) Bridges Without Taxing Powers.--
                ``(1) In general.--Notwithstanding any other provision of
            law, any bridge that is owned and operated by an agency that
            does not have taxing powers and whose functions include
            operating a federally assisted public transit system subsidized
            by toll revenues shall be eligible for assistance under this

    [[Page 126 STAT. 447]]

            title, but the amount of such assistance shall in no event
            exceed the cumulative amount which such agency has expended for
            capital and operating costs to subsidize such transit system.
                ``(2) Insufficient assets.--Before authorizing an
            expenditure of funds under this subsection, the Secretary shall
            determine that the applicant agency has insufficient reserves,
            surpluses, and projected revenues (over and above those required
            for bridge and transit capital and operating costs) to fund the
            bridge project or activity eligible for assistance under this
            title.
                ``(3) Crediting of non-federal funds.--Any non-Federal funds
            expended for the seismic retrofit of the bridge may be credited
            toward the non-Federal share required as a condition of receipt
            of any Federal funds for seismic retrofit of the bridge made
            available after the date of the expenditure.

        ``(f) Replacement of Destroyed Bridges and Ferry Boat Service.--
                ``(1) In general.--Notwithstanding any other provision of
            law, a State may use the funds apportioned under section
            104(b)(2) to construct any bridge that replaces--
                        ``(A) any low water crossing (regardless of the
                    length of the low water crossing);
                        ``(B) any bridge that was destroyed prior to January
                    1, 1965;
                        ``(C) any ferry that was in existence on January 1,
                    1984; or
                        ``(D) any road bridge that is rendered obsolete as a
                    result of a Corps of Engineers flood control or
                    channelization project and is not rebuilt with funds
                    from the Corps of Engineers.
                ``(2) Federal share.--The Federal share payable on any
            bridge construction carried out under paragraph (1) shall be 80
            percent of the cost of the construction.

        ``(g) Historic Bridges.--
                ``(1) Definition of historic bridge.--In this subsection,
            the term `historic bridge' means any bridge that is listed on,
            or eligible for listing on, the National Register of Historic
            Places.
                ``(2) Coordination.--The Secretary shall, in cooperation
            with the States, encourage the retention, rehabilitation,
            adaptive reuse, and future study of historic bridges.
                ``(3) State inventory.--The Secretary shall require each
            State to complete an inventory of all bridges on and off
            Federal-aid highways to determine the historic significance of
            the bridges.
                ``(4) Eligibility.--
                        ``(A) In general.--Subject to subparagraph (B),
                    reasonable costs associated with actions to preserve, or
                    reduce the impact of a project under this chapter on,
                    the historic integrity of a historic bridge shall be
                    eligible as reimbursable project costs under section 133
                    if the load capacity and safety features of the historic
                    bridge are adequate to serve the intended use for the
                    life of the historic bridge.
                        ``(B) Bridges not used for vehicle traffic.--In the
                    case of a historic bridge that is no longer used for
                    motorized vehicular traffic, the costs eligible as
                    reimbursable project

    [[Page 126 STAT. 448]]

                    costs pursuant to this chapter shall not exceed the
                    estimated cost of demolition of the historic bridge.
                ``(5) Preservation.--Any State that proposes to demolish a
            historic bridge for a replacement project with funds made
            available to carry out this section shall first make the
            historic bridge available for donation to a State, locality, or
            responsible private entity if the State, locality, or
            responsible entity enters into an agreement--
                        ``(A) to maintain the bridge and the features that
                    give the historic bridge its historic significance; and
                        ``(B) to assume all future legal and financial
                    responsibility for the historic bridge, which may
                    include an agreement to hold the State transportation
                    department harmless in any liability action.
                ``(6) Costs incurred.--
                        ``(A) In general.--Costs incurred by the State to
                    preserve a historic bridge (including funds made
                    available to the State, locality, or private entity to
                    enable it to accept the bridge) shall be eligible as
                    reimbursable project costs under this chapter in an
                    amount not to exceed the cost of demolition.
                        ``(B) Additional funding.--Any bridge preserved
                    pursuant to this paragraph shall not be eligible for any
                    other funds authorized pursuant to this title.

        ``(h) National Bridge and Tunnel Inspection Standards.--
                ``(1) Requirement.--
                        ``(A) In general.--The Secretary shall establish and
                    maintain inspection standards for the proper inspection
                    and evaluation of all highway bridges and tunnels for
                    safety and serviceability.
                        ``(B) Uniformity.--The standards under this
                    subsection shall be designed to ensure uniformity of the
                    inspections and evaluations.
                ``(2) Minimum requirements of inspection standards.--The
            standards established under paragraph (1) shall, at a minimum--
                        ``(A) specify, in detail, the method by which the
                    inspections shall be carried out by the States, Federal
                    agencies, and tribal governments;
                        ``(B) establish the maximum time period between
                    inspections;
                        ``(C) establish the qualifications for those charged
                    with carrying out the inspections;
                        ``(D) require each State, Federal agency, and tribal
                    government to maintain and make available to the
                    Secretary on request--
                              ``(i) <<NOTE: Reports.>> written reports on
                          the results of highway bridge and tunnel
                          inspections and notations of any action taken
                          pursuant to the findings of the inspections; and
                              ``(ii) <<NOTE: Inventory data.>> current
                          inventory data for all highway bridges and tunnels
                          reflecting the findings of the most recent highway
                          bridge and tunnel inspections conducted; and
                        ``(E) <<NOTE: Procedures. Certification.>> establish
                    a procedure for national certification of highway bridge
                    inspectors and tunnel inspectors.
                ``(3) State compliance with inspection standards.--The
            Secretary shall, at a minimum--

    [[Page 126 STAT. 449]]

                        ``(A) establish, in consultation with the States,
                    Federal agencies, and interested and knowledgeable
                    private organizations and individuals, procedures to
                    conduct reviews of State compliance with--
                              ``(i) the standards established under this
                          subsection; and
                              ``(ii) the calculation or reevaluation of
                          bridge load ratings; and
                        ``(B) <<NOTE: Procedures. Reports.>> establish, in
                    consultation with the States, Federal agencies, and
                    interested and knowledgeable private organizations and
                    individuals, procedures for States to follow in
                    reporting to the Secretary--
                              ``(i) critical findings relating to structural
                          or safety-related deficiencies of highway bridges
                          and tunnels; and
                              ``(ii) monitoring activities and corrective
                          actions taken in response to a critical finding
                          described in clause (i).
                ``(4) <<NOTE: Deadlines.>> Reviews of state compliance.--
                        ``(A) In general.--The Secretary shall annually
                    review State compliance with the standards established
                    under this section.
                        ``(B) Noncompliance.--If an annual review in
                    accordance with subparagraph (A) identifies
                    noncompliance by a State, the Secretary shall--
                              ``(i) <<NOTE: Reports.>> issue a report
                          detailing the issues of the noncompliance by
                          December 31 of the calendar year in which the
                          review was made; and
                              ``(ii) provide the State an opportunity to
                          address the noncompliance by--
                                        ``(I) <<NOTE: Action
                                    plan.>> developing a corrective action
                                    plan to remedy the noncompliance; or
                                        ``(II) resolving the issues of
                                    noncompliance not later than 45 days
                                    after the date of notification.
                ``(5) Penalty for noncompliance.--
                        ``(A) <<NOTE: Deadlines.>> In general.--If a State
                    fails to satisfy the requirements of paragraph (4)(B) by
                    August 1 of the calendar year following the year of a
                    finding of noncompliance, the Secretary shall, on
                    October 1 of that year, and each year thereafter as may
                    be necessary, require the State to dedicate funds
                    apportioned to the State under sections 119 and 133
                    after the date of enactment of the MAP-21 to correct the
                    noncompliance with the minimum inspection standards
                    established under this subsection.
                        ``(B) Amount.--The amount of the funds to be
                    directed to correcting noncompliance in accordance with
                    subparagraph (A) shall--
                              ``(i) <<NOTE: Determination.>> be determined
                          by the State based on an analysis of the actions
                          needed to address the noncompliance; and
                              ``(ii) require approval by the Secretary.
                ``(6) <<NOTE: Deadline.>> Update of standards.--Not later
            than 3 years after the date of enactment of the MAP-21, the
            Secretary shall update inspection standards to cover--
                        ``(A) the methodology, training, and qualifications
                    for inspectors; and
                        ``(B) the frequency of inspection.

    [[Page 126 STAT. 450]]

                ``(7) Risk-based approach.--In carrying out the revisions
            required by paragraph (6), the Secretary shall consider a risk-
            based approach to determining the frequency of bridge
            inspections.

        ``(i) Training Program for Bridge and Tunnel Inspectors.--
                ``(1) In general.--The Secretary, in cooperation with the
            State transportation departments, shall maintain a program
            designed to train appropriate personnel to carry out highway
            bridge and tunnel inspections.
                ``(2) Revisions.--The training program shall be revised from
            time to time to take into account new and improved techniques.

        ``(j) Availability of Funds.--In carrying out this section--
                ``(1) the Secretary may use funds made available to the
            Secretary under sections 104(a) and 503;
                ``(2) a State may use amounts apportioned to the State under
            section 104(b)(1) and 104(b)(3);
                ``(3) an Indian tribe may use funds made available to the
            Indian tribe under section 202; and
                ``(4) a Federal agency may use funds made available to the
            agency under section 503.''.

        (b) Conforming Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by striking the item relating to section
    144 and inserting the following:

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

    SEC. 1112. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

        (a) In General.--Section 148 of title 23, United States Code, is
    amended to read as follows:
    ``Sec. 148. Highway safety improvement program

        ``(a) Definitions.--In this section, the following definitions
    apply:
                ``(1) High risk rural road.--The term `high risk rural road'
            means any roadway functionally classified as a rural major or
            minor collector or a rural local road with significant safety
            risks, as defined by a State in accordance with an updated State
            strategic highway safety plan.
                ``(2) Highway basemap.--The term `highway basemap' means a
            representation of all public roads that can be used to geolocate
            attribute data on a roadway.
                ``(3) Highway safety improvement program.--The term `highway
            safety improvement program' means projects, activities, plans,
            and reports carried out under this section.
                ``(4) Highway safety improvement project.--
                        ``(A) In general.--The term `highway safety
                    improvement project' means strategies, activities, and
                    projects on a public road that are consistent with a
                    State strategic highway safety plan and--
                              ``(i) correct or improve a hazardous road
                          location or feature; or
                              ``(ii) address a highway safety problem.
                        ``(B) Inclusions.--The term `highway safety
                    improvement project' includes, but is not limited to, a
                    project for 1 or more of the following:
                              ``(i) An intersection safety improvement.

    [[Page 126 STAT. 451]]

                              ``(ii) Pavement and shoulder widening
                          (including addition of a passing lane to remedy an
                          unsafe condition).
                              ``(iii) Installation of rumble strips or
                          another warning device, if the rumble strips or
                          other warning devices do not adversely affect the
                          safety or mobility of bicyclists and pedestrians,
                          including persons with disabilities.
                              ``(iv) Installation of a skid-resistant
                          surface at an intersection or other location with
                          a high frequency of crashes.
                              ``(v) An improvement for pedestrian or
                          bicyclist safety or safety of persons with
                          disabilities.
                              ``(vi) Construction and improvement of a
                          railway-highway grade crossing safety feature,
                          including installation of protective devices.
                              ``(vii) The conduct of a model traffic
                          enforcement activity at a railway-highway
                          crossing.
                              ``(viii) Construction of a traffic calming
                          feature.
                              ``(ix) Elimination of a roadside hazard.
                              ``(x) Installation, replacement, and other
                          improvement of highway signage and pavement
                          markings, or a project to maintain minimum levels
                          of retroreflectivity, that addresses a highway
                          safety problem consistent with a State strategic
                          highway safety plan.
                              ``(xi) Installation of a priority control
                          system for emergency vehicles at signalized
                          intersections.
                              ``(xii) Installation of a traffic control or
                          other warning device at a location with high crash
                          potential.
                              ``(xiii) Transportation safety planning.
                              ``(xiv) Collection, analysis, and improvement
                          of safety data.
                              ``(xv) Planning integrated interoperable
                          emergency communications equipment, operational
                          activities, or traffic enforcement activities
                          (including police assistance) relating to work
                          zone safety.
                              ``(xvi) Installation of guardrails, barriers
                          (including barriers between construction work
                          zones and traffic lanes for the safety of road
                          users and workers), and crash attenuators.
                              ``(xvii) The addition or retrofitting of
                          structures or other measures to eliminate or
                          reduce crashes involving vehicles and wildlife.
                              ``(xviii) Installation of yellow-green signs
                          and signals at pedestrian and bicycle crossings
                          and in school zones.
                              ``(xix) Construction and operational
                          improvements on high risk rural roads.
                              ``(xx) Geometric improvements to a road for
                          safety purposes that improve safety.
                              ``(xxi) A road safety audit.
                              ``(xxii) Roadway safety infrastructure
                          improvements consistent with the recommendations
                          included in the publication of the Federal Highway
                          Administration entitled `Highway Design Handbook
                          for Older

    [[Page 126 STAT. 452]]

                          Drivers and Pedestrians' (FHWA-RD-01-103), dated
                          May 2001 or as subsequently revised and updated.
                              ``(xxiii) Truck parking facilities eligible
                          for funding under section 1401 of the MAP-21.
                              ``(xxiv) Systemic safety improvements.
                ``(5) Model inventory of roadway elements.--The term `model
            inventory of roadway elements' means the listing and
            standardized coding by the Federal Highway Administration of
            roadway and traffic data elements critical to safety management,
            analysis, and decisionmaking.
                ``(6) Project to maintain minimum levels of
            retroreflectivity.--The term `project to maintain minimum levels
            of retroreflectivity' means a project that is designed to
            maintain a highway sign or pavement marking retroreflectivity at
            or above the minimum levels prescribed in Federal or State
            regulations.
                ``(7) Road safety audit.--The term `road safety audit' means
            a formal safety performance examination of an existing or future
            road or intersection by an independent multidisciplinary audit
            team.
                ``(8) Road users.--The term `road user' means a motorist,
            passenger, public transportation operator or user, truck driver,
            bicyclist, motorcyclist, or pedestrian, including a person with
            disabilities.
                ``(9) Safety data.--
                        ``(A) In general.--The term `safety data' means
                    crash, roadway, and traffic data on a public road.
                        ``(B) Inclusion.--The term `safety data' includes,
                    in the case of a railway-highway grade crossing, the
                    characteristics of highway and train traffic, licensing,
                    and vehicle data.
                ``(10) Safety project under any other section.--
                        ``(A) In general.--The term `safety project under
                    any other section' means a project carried out for the
                    purpose of safety under any other section of this title.
                        ``(B) Inclusion.--The term `safety project under any
                    other section' includes--
                              ``(i) a project consistent with the State
                          strategic highway safety plan that promotes the
                          awareness of the public and educates the public
                          concerning highway safety matters (including
                          motorcycle safety);
                              ``(ii) a project to enforce highway safety
                          laws; and
                              ``(iii) a project to provide infrastructure
                          and infrastructure-related equipment to support
                          emergency services.
                ``(11) State highway safety improvement program.--The term
            `State highway safety improvement program' means a program of
            highway safety improvement projects, activities, plans and
            reports carried out as part of the Statewide transportation
            improvement program under section 135(g).
                ``(12) State strategic highway safety plan.--The term `State
            strategic highway safety plan' means a comprehensive plan, based
            on safety data, developed by a State transportation department
            that--
                        ``(A) is developed after consultation with--
                              ``(i) a highway safety representative of the
                          Governor of the State;

    [[Page 126 STAT. 453]]

                              ``(ii) regional transportation planning
                          organizations and metropolitan planning
                          organizations, if any;
                              ``(iii) representatives of major modes of
                          transportation;
                              ``(iv) State and local traffic enforcement
                          officials;
                              ``(v) a highway-rail grade crossing safety
                          representative of the Governor of the State;
                              ``(vi) representatives conducting a motor
                          carrier safety program under section 31102, 31106,
                          or 31309 of title 49;
                              ``(vii) motor vehicle administration agencies;
                              ``(viii) county transportation officials;
                              ``(ix) State representatives of nonmotorized
                          users; and
                              ``(x) other major Federal, State, tribal, and
                          local safety stakeholders;
                        ``(B) analyzes and makes effective use of State,
                    regional, local, or tribal safety data;
                        ``(C) addresses engineering, management, operation,
                    education, enforcement, and emergency services elements
                    (including integrated, interoperable emergency
                    communications) of highway safety as key factors in
                    evaluating highway projects;
                        ``(D) considers safety needs of, and high-fatality
                    segments of, all public roads, including non-State-owned
                    public roads and roads on tribal land;
                        ``(E) considers the results of State, regional, or
                    local transportation and highway safety planning
                    processes;
                        ``(F) describes a program of strategies to reduce or
                    eliminate safety hazards;
                        ``(G) is approved by the Governor of the State or a
                    responsible State agency;
                        ``(H) is consistent with section 135(g); and
                        ``(I) is updated and submitted to the Secretary for
                    approval as required under subsection (d)(2).
                ``(13) Systemic safety improvement.--The term `systemic
            safety improvement' means an improvement that is widely
            implemented based on high-risk roadway features that are
            correlated with particular crash types, rather than crash
            frequency.

        ``(b) Program.--
                ``(1) In general.--The Secretary shall carry out a highway
            safety improvement program.
                ``(2) Purpose.--The purpose of the highway safety
            improvement program shall be to achieve a significant reduction
            in traffic fatalities and serious injuries on all public roads,
            including non-State-owned public roads and roads on tribal land.

        ``(c) Eligibility.--
                ``(1) In general.--To obligate funds apportioned under
            section 104(b)(3) to carry out this section, a State shall have
            in effect a State highway safety improvement program under which
            the State--
                        ``(A) <<NOTE: Strategic plan.>> develops,
                    implements, and updates a State strategic highway safety
                    plan that identifies and analyzes highway safety
                    problems and opportunities as provided in subsections
                    (a)(12) and (d);

    [[Page 126 STAT. 454]]

                        ``(B) produces a program of projects or strategies
                    to reduce identified safety problems; and
                        ``(C) <<NOTE: Evaluation.>> evaluates the strategic
                    highway safety plan on a regularly recurring basis in
                    accordance with subsection (d)(1) to ensure the accuracy
                    of the data and priority of proposed strategies.
                ``(2) Identification and analysis of highway safety problems
            and opportunities.--As part of the State highway safety
            improvement program, a State shall--
                        ``(A) have in place a safety data system with the
                    ability to perform safety problem identification and
                    countermeasure analysis--
                              ``(i) to improve the timeliness, accuracy,
                          completeness, uniformity, integration, and
                          accessibility of the safety data on all public
                          roads, including non-State-owned public roads and
                          roads on tribal land in the State;
                              ``(ii) to evaluate the effectiveness of data
                          improvement efforts;
                              ``(iii) to link State data systems, including
                          traffic records, with other data systems within
                          the State;
                              ``(iv) to improve the compatibility and
                          interoperability of safety data with other State
                          transportation-related data systems and the
                          compatibility and interoperability of State safety
                          data systems with data systems of other States and
                          national data systems;
                              ``(v) to enhance the ability of the Secretary
                          to observe and analyze national trends in crash
                          occurrences, rates, outcomes, and circumstances;
                          and
                              ``(vi) to improve the collection of data on
                          nonmotorized crashes;
                        ``(B) based on the analysis required by subparagraph
                    (A)--
                              ``(i) identify hazardous locations, sections,
                          and elements (including roadside obstacles,
                          railway-highway crossing needs, and unmarked or
                          poorly marked roads) that constitute a danger to
                          motorists (including motorcyclists), bicyclists,
                          pedestrians, and other highway users;
                              ``(ii) using such criteria as the State
                          determines to be appropriate, establish the
                          relative severity of those locations, in terms of
                          crashes (including crash rates), fatalities,
                          serious injuries, traffic volume levels, and other
                          relevant data;
                              ``(iii) identify the number of fatalities and
                          serious injuries on all public roads by location
                          in the State;
                              ``(iv) identify highway safety improvement
                          projects on the basis of crash experience, crash
                          potential, crash rate, or other data-supported
                          means; and
                              ``(v) consider which projects maximize
                          opportunities to advance safety;
                        ``(C) adopt strategic and performance-based goals
                    that--
                              ``(i) address traffic safety, including
                          behavioral and infrastructure problems and
                          opportunities on all public roads;
                              ``(ii) focus resources on areas of greatest
                          need; and

    [[Page 126 STAT. 455]]

                              ``(iii) are coordinated with other State
                          highway safety programs;
                        ``(D) advance the capabilities of the State for
                    safety data collection, analysis, and integration in a
                    manner that--
                              ``(i) complements the State highway safety
                          program under chapter 4 and the commercial vehicle
                          safety plan under section 31102 of title 49;
                              ``(ii) includes all public roads, including
                          public non-State-owned roads and roads on tribal
                          land;
                              ``(iii) identifies hazardous locations,
                          sections, and elements on all public roads that
                          constitute a danger to motorists (including
                          motorcyclists), bicyclists, pedestrians, persons
                          with disabilities, and other highway users;
                              ``(iv) includes a means of identifying the
                          relative severity of hazardous locations described
                          in clause (iii) in terms of crashes (including
                          crash rate), serious injuries, fatalities, and
                          traffic volume levels; and
                              ``(v) improves the ability of the State to
                          identify the number of fatalities and serious
                          injuries on all public roads in the State with a
                          breakdown by functional classification and
                          ownership in the State;
                        ``(E)(i) determine priorities for the correction of
                    hazardous road locations, sections, and elements
                    (including railway-highway crossing improvements), as
                    identified through safety data analysis;
                        ``(ii) identify opportunities for preventing the
                    development of such hazardous conditions; and
                        ``(iii) establish and implement a schedule of
                    highway safety improvement projects for hazard
                    correction and hazard prevention; and
                        ``(F)(i) <<NOTE: Evaluation.>> establish an
                    evaluation process to analyze and assess results
                    achieved by highway safety improvement projects carried
                    out in accordance with procedures and criteria
                    established by this section; and
                        ``(ii) use the information obtained under clause (i)
                    in setting priorities for highway safety improvement
                    projects.

        ``(d) Updates to Strategic Highway Safety Plans.--
                ``(1) Establishment of requirements.--
                        ``(A) <<NOTE: Deadline.>> In general.--Not later
                    than 1 year after the date of enactment of the MAP-21,
                    the Secretary shall establish requirements for regularly
                    recurring State updates of strategic highway safety
                    plans.
                        ``(B) Contents of updated strategic highway safety
                    plans.--In establishing requirements under this
                    subsection, the Secretary shall ensure that States take
                    into consideration, with respect to updated strategic
                    highway safety plans--
                              ``(i) the findings of road safety audits;
                              ``(ii) the locations of fatalities and serious
                          injuries;
                              ``(iii) the locations that do not have an
                          empirical history of fatalities and serious
                          injuries, but possess risk factors for potential
                          crashes;
                              ``(iv) rural roads, including all public
                          roads, commensurate with fatality data;

    [[Page 126 STAT. 456]]

                              ``(v) motor vehicle crashes that include
                          fatalities or serious injuries to pedestrians and
                          bicyclists;
                              ``(vi) the cost-effectiveness of improvements;
                              ``(vii) improvements to rail-highway grade
                          crossings; and
                              ``(viii) safety on all public roads, including
                          non-State-owned public roads and roads on tribal
                          land.
                ``(2) Approval of updated strategic highway safety plans.--
                        ``(A) In general.--Each State shall--
                              ``(i) update the strategic highway safety
                          plans of the State in accordance with the
                          requirements established by the Secretary under
                          this subsection; and
                              ``(ii) submit the updated plans to the
                          Secretary, along with a detailed description of
                          the process used to update the plan.
                        ``(B) Requirements for approval.--The Secretary
                    shall not approve the process for an updated strategic
                    highway safety plan unless--
                              ``(i) the updated strategic highway safety
                          plan is consistent with the requirements of this
                          subsection and subsection (a)(12); and
                              ``(ii) the process used is consistent with the
                          requirements of this subsection.
                ``(3) Penalty for failure to have an approved updated
            strategic highway safety plan.-- <<NOTE: Deadline.>> If a State
            does not have an updated strategic highway safety plan with a
            process approved by the Secretary by August 1 of the fiscal year
            beginning after the date of establishment of the requirements
            under paragraph (1), the State shall not be eligible to receive
            any additional limitation pursuant to the redistribution of the
            limitation on obligations for Federal-aid highway and highway
            safety construction programs that occurs after August 1 for each
            succeeding fiscal year until the fiscal year during which the
            plan is approved.

        ``(e) Eligible Projects.--
                ``(1) In general.--Funds apportioned to the State under
            section 104(b)(3) may be obligated to carry out--
                        ``(A) any highway safety improvement project on any
                    public road or publicly owned bicycle or pedestrian
                    pathway or trail;
                        ``(B) as provided in subsection (g); or
                        ``(C) any project to maintain minimum levels of
                    retroreflectivity with respect to a public road, without
                    regard to whether the project is included in an
                    applicable State strategic highway safety plan.
                ``(2) Use of other funding for safety.--
                        ``(A) Effect of section.--Nothing in this section
                    prohibits the use of funds made available under other
                    provisions of this title for highway safety improvement
                    projects.
                        ``(B) Use of other funds.--States are encouraged to
                    address the full scope of the safety needs and
                    opportunities of the States by using funds made
                    available under other provisions of this title (except a
                    provision that specifically prohibits that use).

        ``(f) Data Improvement.--

    [[Page 126 STAT. 457]]

                ``(1) Definition of data improvement activities.--In this
            subsection, the following definitions apply:
                        ``(A) In general.--The term `data improvement
                    activities' means a project or activity to further the
                    capacity of a State to make more informed and effective
                    safety infrastructure investment decisions.
                        ``(B) Inclusions.--The term `data improvement
                    activities' includes a project or activity--
                              ``(i) to create, update, or enhance a highway
                          basemap of all public roads in a State;
                              ``(ii) to collect safety data, including data
                          identified as part of the model inventory for
                          roadway elements, for creation of or use on a
                          highway basemap of all public roads in a State;
                              ``(iii) to store and maintain safety data in
                          an electronic manner;
                              ``(iv) to develop analytical processes for
                          safety data elements;
                              ``(v) to acquire and implement roadway safety
                          analysis tools; and
                              ``(vi) to support the collection, maintenance,
                          and sharing of safety data on all public roads and
                          related systems associated with the analytical
                          usage of that data.
                ``(2) Model inventory of roadway elements.--The Secretary
            shall--
                        ``(A) establish a subset of the model inventory of
                    roadway elements that are useful for the inventory of
                    roadway safety; and
                        ``(B) ensure that States adopt and use the subset to
                    improve data collection.

        ``(g) Special Rules.--
                ``(1) High-risk rural road safety.--If the fatality rate on
            rural roads in a State increases over the most recent 2-year
            period for which data are available, that State shall be
            required to obligate in the next fiscal year for projects on
            high risk rural roads an amount equal to at least 200 percent of
            the amount of funds the State received for fiscal year 2009 for
            high risk rural roads under subsection (f) of this section, as
            in effect on the day before the date of enactment of the MAP-21.
                ``(2) Older drivers.--If traffic fatalities and serious
            injuries per capita for drivers and pedestrians over the age of
            65 in a State increases during the most recent 2-year period for
            which data are available, that State shall be required to
            include, in the subsequent Strategic Highway Safety Plan of the
            State, strategies to address the increases in those rates,
            taking into account the recommendations included in the
            publication of the Federal Highway Administration entitled
            `Highway Design Handbook for Older Drivers and Pedestrians'
            (FHWA-RD-01-103), and dated May 2001, or as subsequently revised
            and updated.

        ``(h) Reports.--
                ``(1) In general.--A State shall submit to the Secretary a
            report that--
                        ``(A) describes progress being made to implement
                    highway safety improvement projects under this section;

    [[Page 126 STAT. 458]]

                        ``(B) assesses the effectiveness of those
                    improvements; and
                        ``(C) describes the extent to which the improvements
                    funded under this section have contributed to reducing--
                              ``(i) the number and rate of fatalities on all
                          public roads with, to the maximum extent
                          practicable, a breakdown by functional
                          classification and ownership in the State;
                              ``(ii) the number and rate of serious injuries
                          on all public roads with, to the maximum extent
                          practicable, a breakdown by functional
                          classification and ownership in the State; and
                              ``(iii) the occurrences of fatalities and
                          serious injuries at railway-highway crossings.
                ``(2) Contents; schedule.--The Secretary shall establish the
            content and schedule for the submission of the report under
            paragraph (1).
                ``(3) <<NOTE: Public information. Web
            posting.>> Transparency.--The Secretary shall make strategic
            highway safety plans submitted under subsection (d) and reports
            submitted under this subsection available to the public
            through--
                        ``(A) the website of the Department; and
                        ``(B) such other means as the Secretary determines
                    to be appropriate.
                ``(4) Discovery and admission into evidence of certain
            reports, surveys, and information.--Notwithstanding any other
            provision of law, reports, surveys, schedules, lists, or data
            compiled or collected for any purpose relating to this section,
            shall not be subject to discovery or admitted into evidence in a
            Federal or State court proceeding or considered for other
            purposes in any action for damages arising from any occurrence
            at a location identified or addressed in the reports, surveys,
            schedules, lists, or other data.

        ``(i) <<NOTE: Determination. Deadline.>> State Performance
    Targets.--If the Secretary determines that a State has not met or made
    significant progress toward meeting the performance targets of the State
    established under section 150(d) by the date that is 2 years after the
    date of the establishment of the performance targets, the State shall--
                ``(1) use obligation authority equal to the apportionment of
            the State for the prior year under section 104(b)(3) only for
            highway safety improvement projects under this section until the
            Secretary determines that the State has met or made significant
            progress toward meeting the performance targets of the State;
            and
                ``(2) <<NOTE: Implementation plan.>> submit annually to the
            Secretary, until the Secretary determines that the State has met
            or made significant progress toward meeting the performance
            targets of the State, an implementation plan that--
                        ``(A) identifies roadway features that constitute a
                    hazard to road users;
                        ``(B) identifies highway safety improvement projects
                    on the basis of crash experience, crash potential, or
                    other data-supported means;
                        ``(C) describes how highway safety improvement
                    program funds will be allocated, including projects,
                    activities, and strategies to be implemented;

    [[Page 126 STAT. 459]]

                        ``(D) describes how the proposed projects,
                    activities, and strategies funded under the State
                    highway safety improvement program will allow the State
                    to make progress toward achieving the safety performance
                    targets of the State; and
                        ``(E) describes the actions the State will undertake
                    to meet the performance targets of the State.

        ``(j) Federal Share of Highway Safety Improvement Projects.--Except
    as provided in sections 120 and 130, the Federal share of the cost of a
    highway safety improvement project carried out with funds apportioned to
    a State under section 104(b)(3) shall be 90 percent.''.
        (b) <<NOTE: 23 USC 148 note.>> Study of High-risk Rural Roads Best
    Practices.--
                (1) Study.--
                        (A) In general.--The Secretary shall conduct a study
                    of the best practices for implementing cost-effective
                    roadway safety infrastructure improvements on high-risk
                    rural roads.
                        (B) Methodology.--In carrying out the study, the
                    Secretary shall--
                              (i) conduct a thorough literature review;
                              (ii) survey current practices of State
                          departments of transportation; and
                              (iii) survey current practices of local units
                          of government, as appropriate.
                        (C) Consultation.--In carrying out the study, the
                    Secretary shall consult with--
                              (i) State departments of transportation;
                              (ii) county engineers and public works
                          professionals;
                              (iii) appropriate local officials; and
                              (iv) appropriate private sector experts in the
                          field of roadway safety infrastructure.
                (2) Report.--
                        (A) In general.--Not later than 1 year after the
                    date of enactment of this Act, the Secretary shall
                    submit to the Committee on Environment and Public Works
                    of the Senate and the Committee on Transportation and
                    Infrastructure of the House of Representatives a report
                    on the results of the study.
                        (B) Contents.--The report shall include--
                              (i) a summary of cost-effective roadway safety
                          infrastructure improvements;
                              (ii) a summary of the latest research on the
                          financial savings and reduction in fatalities and
                          serious bodily injury crashes from the
                          implementation of cost-effective roadway safety
                          infrastructure improvements; and
                              (iii) recommendations for State and local
                          governments on best practice methods to install
                          cost-effective roadway safety infrastructure on
                          high-risk rural roads.
                (3) Manual.--
                        (A) Development.--Based on the results of the study
                    under paragraph (2), the Secretary, in consultation with
                    the individuals and entities described in paragraph
                    (1)(C), shall develop a best practices manual to support
                    Federal, State, and local efforts to reduce fatalities
                    and serious

    [[Page 126 STAT. 460]]

                    bodily injury crashes on high-risk rural roads through
                    the use of cost-effective roadway safety infrastructure
                    improvements.
                        (B) <<NOTE: Deadline.>> Availability.--The manual
                    shall be made available to State and local governments
                    not later than 180 days after the date of submission of
                    the report under paragraph (2).
                        (C) Contents.--The manual shall include, at a
                    minimum, a list of cost-effective roadway safety
                    infrastructure improvements and best practices on the
                    installation of cost-effective roadway safety
                    infrastructure improvements on high-risk rural roads.
                        (D) Use of manual.--Use of the manual shall be
                    voluntary and the manual shall not establish any binding
                    standards or legal duties on State or local governments,
                    or any other person.
    SEC. 1113. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT
                              PROGRAM.

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

        (b) Special Rules.--Section 149 of title 23, United States Code, is
    amended--
                (1) by redesignating subsections (c) through (h) as
            subsections (d) through (i) respectively;
                (2) by inserting after subsection (b) the following:

        ``(c) Special Rules.--
                ``(1) Projects for pm-10 nonattainment areas.--A State may
            obligate funds apportioned to the State under section 104(b)(4)
            for a project or program for an area that is nonattainment for
            ozone or carbon monoxide, or both, and for PM-

    [[Page 126 STAT. 461]]

            10 resulting from transportation activities, without regard to
            any limitation of the Department of Transportation relating to
            the type of ambient air quality standard such project or program
            addresses.
                ``(2) Electric vehicle and natural gas vehicle
            infrastructure.--A State may obligate funds apportioned under
            section 104(b)(4) for a project or program to establish electric
            vehicle charging stations or natural gas vehicle refueling
            stations for the use of battery powered or natural gas fueled
            trucks or other motor vehicles at any location in the State
            except that such stations may not be established or supported
            where commercial establishments serving motor vehicle users are
            prohibited by section 111 of title 23, United States Code.
                ``(3) HOV facilities.--No funds may be provided under this
            section for a project which will result in the construction of
            new capacity available to single occupant vehicles unless the
            project consists of a high occupancy vehicle facility available
            to single occupant vehicles only at other than peak travel
            times.'';
                (3) by striking subsection (d) (as redesignated by paragraph
            (1)) and inserting the following:

        ``(d) States Flexibility.--
                ``(1) States without a nonattainment area.--If a State does
            not have, and never has had, a nonattainment area designated
            under the Clean Air Act (42 U.S.C. 7401 et seq.), the State may
            use funds apportioned to the State under section 104(b)(4) for
            any project in the State that--
                        ``(A) would otherwise be eligible under subsection
                    (b) as if the project were carried out in a
                    nonattainment or maintenance area; or
                        ``(B) is eligible under the surface transportation
                    program under section 133.
                ``(2) States with a nonattainment area.--
                        ``(A) In general.--If a State has a nonattainment
                    area or maintenance area and received funds in fiscal
                    year 2009 under section 104(b)(2)(D), as in effect on
                    the day before the date of enactment of the MAP-21,
                    above the amount of funds that the State would have
                    received based on the nonattainment and maintenance area
                    population of the State under subparagraphs (B) and (C)
                    of section 104(b)(2), as in effect on the day before the
                    date of enactment of the MAP-21, the State may use for
                    any project that is eligible under the surface
                    transportation program under section 133 an amount of
                    funds apportioned to such State under section 104(b)(4)
                    that is equal to the product obtained by multiplying--
                              ``(i) the amount apportioned to such State
                          under section 104(b)(4) (excluding the amount of
                          funds reserved under paragraph (l)); by
                              ``(ii) the ratio calculated under subparagraph
                          (B).
                        ``(B) Ratio.--For purposes of this paragraph, the
                    ratio shall be calculated as the proportion that--
                              ``(i) the amount for fiscal year 2009 such
                          State was permitted by section 149(c)(2), as in
                          effect on the day before the date of enactment of
                          the MAP-21, to obligate in any area of the State
                          for projects eligible

    [[Page 126 STAT. 462]]

                          under section 133, as in effect on the day before
                          the date of enactment of the MAP-21t; bears to
                              ``(ii) the total apportionment to such State
                          for fiscal year 2009 under section 104(b)(2), as
                          in effect on the day before the date of enactment
                          of the MAP-21.
                ``(3) Changes in designation.--If a new nonattainment area
            is designated or a previously designated nonattainment area is
            redesignated as an attainment area in a State under the Clean
            Air Act (42 U.S.C. 7401 et seq.), the Secretary shall modify the
            amount such State is permitted to obligate in any area of the
            State for projects eligible under section 133.'';
                (4) in subsection (f)(3) (as redesignated by paragraph (1))
            by striking ``104(b)(2)'' and inserting ``104(b)(4)'';
                (5) in subsection (g) (as redesignated by paragraph (1)) by
            striking paragraph (3) and inserting the following:
                ``(3) Priority consideration.--States and metropolitan
            planning organizations shall give priority in areas designated
            as nonattainment or maintenance for PM2.5 under the Clean Air
            Act (42 U.S.C. 7401 et seq.) in distributing funds received for
            congestion mitigation and air quality projects and programs from
            apportionments under section 104(b)(4) to projects that are
            proven to reduce PM2.5, including diesel retrofits.'';
                (6) by striking subsection (i) (as redesignated by paragraph
            (1)) and inserting the following:

        ``(i) Evaluation and Assessment of Projects.--
                ``(1) Database.--
                        ``(A) In general.--Using appropriate assessments of
                    projects funded under the congestion mitigation and air
                    quality program and results from other research, the
                    Secretary shall maintain and disseminate a cumulative
                    database describing the impacts of the projects,
                    including specific information about each project, such
                    as the project name, location, sponsor, cost, and, to
                    the extent already measured by the project sponsor,
                    cost-effectiveness, based on reductions in congestion
                    and emissions.
                        ``(B) <<NOTE: Publication. Public
                    information.>> Availability.--The database shall be
                    published or otherwise made readily available by the
                    Secretary in electronically accessible format and means,
                    such as the Internet, for public review.
                ``(2) Cost effectiveness.--
                        ``(A) <<NOTE: Evaluation.>> In general.--The
                    Secretary, in consultation with the Administrator of the
                    Environmental Protection Agency, shall evaluate projects
                    on a periodic basis and develop a table or other similar
                    medium that illustrates the cost-effectiveness of a
                    range of project types eligible for funding under this
                    section as to how the projects mitigate congestion and
                    improve air quality.
                        ``(B) Contents.--The table described in subparagraph
                    (A) shall show measures of cost-effectiveness, such as
                    dollars per ton of emissions reduced, and assess those
                    measures over a variety of timeframes to capture impacts
                    on the planning timeframes outlined in section 134.
                        ``(C) Use of table.--States and metropolitan
                    planning organizations shall consider the information in
                    the table when selecting projects or developing
                    performance plans under subsection (l).

        ``(j) Optional Programmatic Eligibility.--

    [[Page 126 STAT. 463]]

                ``(1) In general.--At the discretion of a metropolitan
            planning organization, a technical assessment of a selected
            program of projects may be conducted through modeling or other
            means to demonstrate the emissions reduction projection required
            under this section.
                ``(2) Applicability.--If an assessment described in
            paragraph (1) successfully demonstrates an emissions reduction,
            all projects included in such assessment shall be eligible for
            obligation under this section without further demonstration of
            emissions reduction of individual projects included in such
            assessment.

        ``(k) Priority for Use of Funds in PM2.5 Areas.--
                ``(1) In general.--For any State that has a nonattainment or
            maintenance area for fine particulate matter, an amount equal to
            25 percent of the funds apportioned to each State under section
            104(b)(4) for a nonattainment or maintenance area that are based
            all or in part on the weighted population of such area in fine
            particulate matter nonattainment shall be obligated to projects
            that reduce such fine particulate matter emissions in such area,
            including diesel retrofits.
                ``(2) Construction equipment and vehicles.--In order to meet
            the requirements of paragraph (1), a State or metropolitan
            planning organization may elect to obligate funds to install
            diesel emission control technology on nonroad diesel equipment
            or on-road diesel equipment that is operated on a highway
            construction project within a PM2.5 nonattainment or maintenance
            area.

        ``(l) Performance Plan.--
                ``(1) In general.--Each metropolitan planning organization
            serving a transportation management area (as defined in section
            134) with a population over 1,000,000 people representing a
            nonattainment or maintenance area shall develop a performance
            plan that--
                        ``(A) includes an area baseline level for traffic
                    congestion and on-road mobile source emissions for which
                    the area is in nonattainment or maintenance;
                        ``(B) describes progress made in achieving the
                    performance targets described in section 150(d); and
                        ``(C) includes a description of projects identified
                    for funding under this section and how such projects
                    will contribute to achieving emission and traffic
                    congestion reduction targets.
                ``(2) <<NOTE: Deadline. Reports.>> Updated plans.--
            Performance plans shall be updated biennially and include a
            separate report that assesses the progress of the program of
            projects under the previous plan in achieving the air quality
            and traffic congestion targets of the previous plan.

        ``(m) Operating Assistance.--A State may obligate funds apportioned
    under section 104(b)(2) in an area of such State that is otherwise
    eligible for obligations of such funds for operating costs under chapter
    53 of title 49 or on a system that was previously eligible under this
    section.''.
        (c) Air Quality and Congestion Mitigation Measure Outcomes
    Assessment Study.--
                (1) In general.--The Secretary, in consultation with the
            Administrator of the Environmental Protection Agency, shall
            examine the outcomes of actions funded under the congestion

    [[Page 126 STAT. 464]]

            mitigation and air quality improvement program since the date of
            enactment of the SAFETEA-LU (Public Law 109-59).
                (2) Goals.--The goals of the program shall include--
                        (A) the assessment and documentation, through
                    outcomes research conducted on a representative sample
                    of cases, of--
                              (i) the emission reductions achieved by
                          federally supported surface transportation actions
                          intended to reduce emissions or lessen traffic
                          congestion; and
                              (ii) the air quality and human health impacts
                          of those actions, including potential unrecognized
                          or indirect consequences, attributable to those
                          actions;
                        (B) an expanded base of empirical evidence on the
                    air quality and human health impacts of actions
                    described in paragraph (1); and
                        (C) an increase in knowledge of--
                              (i) the factors determining the air quality
                          and human health changes associated with
                          transportation emission reduction actions; and
                              (ii) other information to more accurately
                          understand the validity of current estimation and
                          modeling routines and ways to improve those
                          routines.
                (3) Administrative elements.--To carry out this subsection,
            the Secretary shall--
                        (A) <<NOTE: Grants.>> make a grant for the
                    coordination, selection, management, and reporting of
                    component studies to an independent scientific research
                    organization with the necessary experience in
                    successfully conducting accountability and other studies
                    on mobile source air pollutants and associated health
                    effects;
                        (B) ensure that case studies are identified and
                    conducted by teams selected through a competitive
                    solicitation overseen by an independent committee of
                    unbiased experts; and
                        (C) ensure that all findings and reports are peer-
                    reviewed and published in a form that presents the
                    findings together with reviewer comments.
                (4) Report.--The Secretary shall submit to the Committee on
            Environment and Public Works of the Senate and the Committee on
            Transportation and Infrastructure of the House of
            Representatives--
                        (A) not later than 1 year after the date of
                    enactment of the MAP-21, and for the following year, a
                    report providing an initial scoping and plan, and status
                    updates, respectively, for the program under this
                    subsection; and
                        (B) not later than 2 years after the date of
                    enactment of the MAP-21, a final report that describes
                    the findings of, and recommendations resulting from, the
                    program under this subsection.
                (5) Funding.--Of the amounts made available to carry out
            section 104(a) for fiscal year 2013, the Secretary shall make
            available to carry out this subsection not more than $1,000,000.
    SEC. 1114. TERRITORIAL AND PUERTO RICO HIGHWAY PROGRAM.

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

    [[Page 126 STAT. 465]]

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

        ``(a) Division of Funds.--Of funds made available in a fiscal year
    for the territorial and Puerto Rico highway program--
                ``(1) $150,000,000 shall be for the Puerto Rico highway
            program under subsection (b); and
                ``(2) $40,000,000 shall be for the territorial highway
            program under subsection (c).

        ``(b) Puerto Rico Highway Program.--
                ``(1) In general.--The Secretary shall allocate funds made
            available to carry out this subsection to the Commonwealth of
            Puerto Rico to carry out a highway program in the Commonwealth.
                ``(2) Treatment of funds.--Amounts made available to carry
            out this subsection for a fiscal year shall be administered as
            follows:
                        ``(A) Apportionment.--
                              ``(i) In general.--For the purpose of imposing
                          any penalty under this title or title 49, the
                          amounts shall be treated as being apportioned to
                          Puerto Rico under sections 104(b) and 144 (as in
                          effect for fiscal year 1997) for each program
                          funded under those sections in an amount
                          determined by multiplying--
                                        ``(I) the aggregate of the amounts
                                    for the fiscal year; by
                                        ``(II) the proportion that--
                                                ``(aa) the amount of funds
                                            apportioned to Puerto Rico for
                                            each such program for fiscal
                                            year 1997; bears to
                                                ``(bb) the total amount of
                                            funds apportioned to Puerto Rico
                                            for all such programs for fiscal
                                            year 1997.
                              ``(ii) Exception.--Funds identified under
                          clause (i) as having been apportioned for the
                          national highway system, the surface
                          transportation program, and the Interstate
                          maintenance program shall be deemed to have been
                          apportioned 50 percent for the national highway
                          performance program and 50 percent for the surface
                          transportation program for purposes of imposing
                          such penalties.
                        ``(B) Penalty.--The amounts treated as being
                    apportioned to Puerto Rico under each section referred
                    to in subparagraph (A) shall be deemed to be required to
                    be apportioned to Puerto Rico under that section for
                    purposes of the imposition of any penalty under this
                    title or title 49.
                        ``(C) Eligible uses of funds.--Of amounts allocated
                    to Puerto Rico for the Puerto Rico Highway Program for a
                    fiscal year--
                              ``(i) at least 50 percent shall be available
                          only for purposes eligible under section 119;
                              ``(ii) at least 25 percent shall be available
                          only for purposes eligible under section 148; and
                              ``(iii) any remaining funds may be obligated
                          for activities eligible under chapter 1.
                ``(3) Effect on apportionments.--Except as otherwise
            specifically provided, Puerto Rico shall not be eligible to
            receive funds apportioned to States under this title.

    [[Page 126 STAT. 466]]

        ``(c) Territorial Highway Program.--
                ``(1) Territory defined.--In this subsection, the term
            `territory' means any of the following territories of the United
            States:
                        ``(A) American Samoa.
                        ``(B) The Commonwealth of the Northern Mariana
                    Islands.
                        ``(C) Guam.
                        ``(D) The United States Virgin Islands.
                ``(2) Program.--
                        ``(A) In general.--Recognizing the mutual benefits
                    that will accrue to the territories and the United
                    States from the improvement of highways in the
                    territories, the Secretary may carry out a program to
                    assist each government of a territory in the
                    construction and improvement of a system of arterial and
                    collector highways, and necessary inter-island
                    connectors, that is--
                              ``(i) designated by the Governor or chief
                          executive officer of each territory; and
                              ``(ii) approved by the Secretary.
                        ``(B) Federal share.--The Federal share of Federal
                    financial assistance provided to territories under this
                    subsection shall be in accordance with section 120(g).
                ``(3) Technical assistance.--
                        ``(A) In general.--To continue a long-range highway
                    development program, the Secretary may provide technical
                    assistance to the governments of the territories to
                    enable the territories, on a continuing basis--
                              ``(i) to engage in highway planning;
                              ``(ii) to conduct environmental evaluations;
                              ``(iii) to administer right-of-way acquisition
                          and relocation assistance programs; and
                              ``(iv) to design, construct, operate, and
                          maintain a system of arterial and collector
                          highways, including necessary inter-island
                          connectors.
                        ``(B) Form and terms of assistance.--Technical
                    assistance provided under subparagraph (A), and the
                    terms for the sharing of information among territories
                    receiving the technical assistance, shall be included in
                    the agreement required by paragraph (5).
                ``(4) Nonapplicability of certain provisions.--
                        ``(A) In general.--Except to the extent that
                    provisions of this chapter are determined by the
                    Secretary to be inconsistent with the needs of the
                    territories and the intent of this subsection, this
                    chapter (other than provisions of this chapter relating
                    to the apportionment and allocation of funds) shall
                    apply to funds made available under this subsection.
                        ``(B) Applicable provisions.--The agreement required
                    by paragraph (5) for each territory shall identify the
                    sections of this chapter that are applicable to that
                    territory and the extent of the applicability of those
                    sections.
                ``(5) Agreement.--
                        ``(A) In general.--Except as provided in
                    subparagraph (D), none of the funds made available under
                    this subsection shall be available for obligation or
                    expenditure with respect to any territory until the
                    chief executive officer of the

    [[Page 126 STAT. 467]]

                    territory has entered into an agreement (including an
                    agreement entered into under section 215 as in effect on
                    the day before the enactment of this section) with the
                    Secretary providing that the government of the territory
                    shall--
                              ``(i) implement the program in accordance with
                          applicable provisions of this chapter and
                          paragraph (4);
                              ``(ii) design and construct a system of
                          arterial and collector highways, including
                          necessary inter-island connectors, in accordance
                          with standards that are--
                                        ``(I) appropriate for each
                                    territory; and
                                        ``(II) approved by the Secretary;
                              ``(iii) provide for the maintenance of
                          facilities constructed or operated under this
                          subsection in a condition to adequately serve the
                          needs of present and future traffic; and
                              ``(iv) implement standards for traffic
                          operations and uniform traffic control devices
                          that are approved by the Secretary.
                        ``(B) Technical assistance.--The agreement required
                    by subparagraph (A) shall--
                              ``(i) specify the kind of technical assistance
                          to be provided under the program;
                              ``(ii) include appropriate provisions
                          regarding information sharing among the
                          territories; and
                              ``(iii) delineate the oversight role and
                          responsibilities of the territories and the
                          Secretary.
                        ``(C) <<NOTE: Deadline.>> Review and revision of
                    agreement.--The agreement entered into under
                    subparagraph (A) shall be reevaluated and, as necessary,
                    revised, at least every 2 years.
                        ``(D) Existing agreements.--With respect to an
                    agreement under this subsection or an agreement entered
                    into under section 215 of this title as in effect on the
                    day before the date of enactment of this subsection--
                              ``(i) the agreement shall continue in force
                          until replaced by an agreement entered into in
                          accordance with subparagraph (A); and
                              ``(ii) amounts made available under this
                          subsection under the existing agreement shall be
                          available for obligation or expenditure so long as
                          the agreement, or the existing agreement entered
                          into under subparagraph (A), is in effect.
                ``(6) Eligible uses of funds.--
                        ``(A) In general.--Funds made available under this
                    subsection may be used only for the following projects
                    and activities carried out in a territory:
                              ``(i) Eligible surface transportation program
                          projects described in section 133(b).
                              ``(ii) Cost-effective, preventive maintenance
                          consistent with section 116(e).
                              ``(iii) Ferry boats, terminal facilities, and
                          approaches, in accordance with subsections (b) and
                          (c) of section 129.

    [[Page 126 STAT. 468]]

                              ``(iv) Engineering and economic surveys and
                          investigations for the planning, and the
                          financing, of future highway programs.
                              ``(v) Studies of the economy, safety, and
                          convenience of highway use.
                              ``(vi) The regulation and equitable taxation
                          of highway use.
                              ``(vii) Such research and development as are
                          necessary in connection with the planning, design,
                          and maintenance of the highway system.
                        ``(B) Prohibition on use of funds for routine
                    maintenance.--None of the funds made available under
                    this subsection shall be obligated or expended for
                    routine maintenance.
                ``(7) Location of projects.--Territorial highway program
            projects (other than those described in paragraphs (2), (4),
            (7), (8), (14), and (19) of section 133(b)) may not be
            undertaken on roads functionally classified as local.''.

        (b) Conforming Amendments.--
                (1) Technical and conforming amendment.--The analysis for
            chapter 1 of title 23, United States Code, is amended by
            striking the item relating to section 165 and inserting the
            following:

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

                (2) Territorial highway program.--
                        (A) Repeal.--Section 215 of title 23, United States
                    Code, is repealed.
                        (B) Technical and conforming amendment.--The
                    analysis for chapter 2 of title 23, United States Code,
                    is amended by striking the item relating to section 215.
                        (C) Duncan hunter national defense authorization act
                    for fiscal year 2009.--Section 3512(e) of the Duncan
                    Hunter National Defense Authorization Act for Fiscal
                    Year 2009 (48 U.S.C. 1421r(e)) is amended by striking
                    ``section 215'' and inserting ``section 165''.
    SEC. 1115. NATIONAL FREIGHT POLICY.

        (a) In General.--Chapter 1 of title 23, United States Code, is
    amended by adding at the end the following:
    ``Sec. 167. National freight policy

        ``(a) In General.--It is the policy of the United States to improve
    the condition and performance of the national freight network to ensure
    that the national freight network provides the foundation for the United
    States to compete in the global economy and achieve each goal described
    in subsection (b).
        ``(b) Goals.--The goals of the national freight policy are--
                ``(1) to invest in infrastructure improvements and to
            implement operational improvements that--
                        ``(A) strengthen the contribution of the national
                    freight network to the economic competitiveness of the
                    United States;
                        ``(B) reduce congestion; and
                        ``(C) increase productivity, particularly for
                    domestic industries and businesses that create high-
                    value jobs;

    [[Page 126 STAT. 469]]

                ``(2) to improve the safety, security, and resilience of
            freight transportation;
                ``(3) to improve the state of good repair of the national
            freight network;
                ``(4) to use advanced technology to improve the safety and
            efficiency of the national freight network;
                ``(5) to incorporate concepts of performance, innovation,
            competition, and accountability into the operation and
            maintenance of the national freight network; and
                ``(6) to improve the economic efficiency of the national
            freight network.
                ``(7) to reduce the environmental impacts of freight
            movement on the national freight network;

        ``(c) Establishment of a National Freight Network.--
                ``(1) In general.--The Secretary shall establish a national
            freight network in accordance with this section to assist States
            in strategically directing resources toward improved system
            performance for efficient movement of freight on highways,
            including national highway system, freight intermodal connectors
            and aerotropolis transportation systems.
                ``(2) Network components.--The national freight network
            shall consist of--
                        ``(A) the primary freight network, as designated by
                    the Secretary under subsection (d) (referred to in this
                    section as the `primary freight network') as most
                    critical to the movement of freight;
                        ``(B) the portions of the Interstate System not
                    designated as part of the primary freight network; and
                        ``(C) critical rural freight corridors established
                    under subsection (e).

        ``(d) Designation of Primary Freight Network.--
                ``(1) Initial designation of primary freight network.--
                        ``(A) <<NOTE: Deadline.>> Designation.--Not later
                    than 1 year after the date of enactment of this section,
                    the Secretary shall designate a primary freight
                    network--
                              ``(i) based on an inventory of national
                          freight volume conducted by the Administrator of
                          the Federal Highway Administration, in
                          consultation with stakeholders, including system
                          users, transport providers, and States; and
                              ``(ii) that shall be comprised of not more
                          than 27,000 centerline miles of existing roadways
                          that are most critical to the movement of freight.
                        ``(B) Factors for designation.--In designating the
                    primary freight network, the Secretary shall consider--
                              ``(i) the origins and destinations of freight
                          movement in the United States;
                              ``(ii) the total freight tonnage and value of
                          freight moved by highways;
                              ``(iii) the percentage of annual average daily
                          truck traffic in the annual average daily traffic
                          on principal arterials;
                              ``(iv) the annual average daily truck traffic
                          on principal arterials;
                              ``(v) land and maritime ports of entry;
                              ``(vi) access to energy exploration,
                          development, installation, or production areas;

    [[Page 126 STAT. 470]]

                              ``(vii) population centers; and
                              ``(viii) network connectivity.
                ``(2) Additional miles on primary freight network.--In
            addition to the miles initially designated under paragraph (1),
            the Secretary may increase the number of miles designated as
            part of the primary freight network by not more than 3,000
            additional centerline miles of roadways (which may include
            existing or planned roads) critical to future efficient movement
            of goods on the primary freight network.
                ``(3) <<NOTE: Effective date. Deadline.>> Redesignation of
            primary freight network.--Effective beginning 10 years after the
            designation of the primary freight network and every 10 years
            thereafter, using the designation factors described in paragraph
            (1), the Secretary shall redesignate the primary freight network
            (including additional mileage described in paragraph (2)).

        ``(e) Critical Rural Freight Corridors.--A State may designate a
    road within the borders of the State as a critical rural freight
    corridor if the road--
                ``(1) is a rural principal arterial roadway and has a
            minimum of 25 percent of the annual average daily traffic of the
            road measured in passenger vehicle equivalent units from trucks
            (FHWA vehicle class 8 to 13);
                ``(2) provides access to energy exploration, development,
            installation, or production areas;
                ``(3) connects the primary freight network, a roadway
            described in paragraph (1) or (2), or Interstate System to
            facilities that handle more than--
                        ``(A) 50,000 20-foot equivalent units per year; or
                        ``(B) 500,000 tons per year of bulk commodities.

        ``(f) National Freight Strategic Plan.--
                ``(1) Initial development of national freight strategic
            plan.-- <<NOTE: Deadline.>> Not later than 3 years after the
            date of enactment of this section, the Secretary shall, in
            consultation with State departments of transportation and other
            appropriate public and private transportation stakeholders,
            develop and post on the Department of Transportation public
            website a national freight strategic plan that shall include--
                        ``(A) an assessment of the condition and performance
                    of the national freight network;
                        ``(B) an identification of highway bottlenecks on
                    the national freight network that create significant
                    freight congestion problems, based on a quantitative
                    methodology developed by the Secretary, which shall, at
                    a minimum, include--
                              ``(i) information from the Freight Analysis
                          Network of the Federal Highway Administration; and
                              ``(ii) to the maximum extent practicable, an
                          estimate of the cost of addressing each bottleneck
                          and any operational improvements that could be
                          implemented;
                        ``(C) forecasts of freight volumes for the 20-year
                    period beginning in the year during which the plan is
                    issued;
                        ``(D) an identification of major trade gateways and
                    national freight corridors that connect major population
                    centers, trade gateways, and other major freight
                    generators for current and forecasted traffic and
                    freight volumes, the

    [[Page 126 STAT. 471]]

                    identification of which shall be revised, as
                    appropriate, in subsequent plans;
                        ``(E) an assessment of statutory, regulatory,
                    technological, institutional, financial, and other
                    barriers to improved freight transportation performance
                    (including opportunities for overcoming the barriers);
                        ``(F) an identification of routes providing access
                    to energy exploration, development, installation, or
                    production areas;
                        ``(G) best practices for improving the performance
                    of the national freight network;
                        ``(H) best practices to mitigate the impacts of
                    freight movement on communities;
                        ``(I) a process for addressing multistate projects
                    and encouraging jurisdictions to collaborate; and
                        ``(J) strategies to improve freight intermodal
                    connectivity.
                ``(2) Updates to national freight strategic plan.--Not later
            than 5 years after the date of completion of the first national
            freight strategic plan under paragraph (1), and every 5 years
            thereafter, the Secretary shall update and repost on the
            Department of Transportation public website a revised national
            freight strategic plan.

        ``(g) <<NOTE: Web posting.>> Freight Transportation Conditions and
    Performance Reports.--Not later than 2 years after the date of enactment
    of this section, and biennially thereafter, the Secretary shall prepare
    a report that contains a description of the conditions and performance
    of the national freight network in the United States.

        ``(h) Transportation Investment Data and Planning Tools.--
                ``(1) <<NOTE: Deadline.>> In general.--Not later than 1 year
            after the date of enactment of this section, the Secretary
            shall--
                        ``(A) begin development of new tools and improvement
                    of existing tools or improve existing tools to support
                    an outcome-oriented, performance-based approach to
                    evaluate proposed freight-related and other
                    transportation projects, including--
                              ``(i) methodologies for systematic analysis of
                          benefits and costs;
                              ``(ii) tools for ensuring that the evaluation
                          of freight-related and other transportation
                          projects could consider safety, economic
                          competitiveness, environmental sustainability, and
                          system condition in the project selection process;
                          and
                              ``(iii) other elements to assist in effective
                          transportation planning;
                        ``(B) identify transportation-related model data
                    elements to support a broad range of evaluation methods
                    and techniques to assist in making transportation
                    investment decisions; and
                        ``(C) at a minimum, in consultation with other
                    relevant Federal agencies, consider any improvements to
                    existing freight flow data collection efforts that could
                    reduce identified freight data gaps and deficiencies and
                    help improve forecasts of freight transportation demand.

    [[Page 126 STAT. 472]]

                ``(2) Consultation.--The Secretary shall consult with
            Federal, State, and other stakeholders to develop, improve, and
            implement the tools and collect the data in paragraph (1).

        ``(i) Definition of Aerotropolis Transportation System.--In this
    section, the term `aerotropolis transportation system' means a planned
    and coordinated multimodal freight and passenger transportation network
    that, as determined by the Secretary, provides efficient, cost-
    effective, sustainable, and intermodal connectivity to a defined region
    of economic significance centered around a major airport.''.
        (b) Conforming Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by adding at the end the following:

    ``167. National freight program.''.

    SEC. 1116. <<NOTE: 23 USC 167 note.>> PRIORITIZATION OF PROJECTS
                              TO IMPROVE FREIGHT MOVEMENT.

        (a) <<NOTE: Certification.>> In General.--Notwithstanding section
    120 of title 23, United States Code, the Secretary may increase the
    Federal share payable for any project to 95 percent for projects on the
    Interstate System and 90 percent for any other project if the Secretary
    certifies that the project meets the requirements of this section.

        (b) Increased Funding.--To be eligible for the increased Federal
    funding share under this section, a project shall--
                (1) demonstrate the improvement made by the project to the
            efficient movement of freight, including making progress towards
            meeting performance targets for freight movement established
            under section 150(d) of title 23, United States Code; and
                (2) be identified in a State freight plan developed pursuant
            to section 1118.

        (c) Eligible Projects.--Eligible projects to improve the movement of
    freight under this section may include, but are not limited to--
                (1) construction, reconstruction, rehabilitation, and
            operational improvements directly relating to improving freight
            movement;
                (2) intelligent transportation systems and other technology
            to improve the flow of freight;
                (3) efforts to reduce the environmental impacts of freight
            movement on the primary freight network;
                (4) railway-highway grade separation;
                (5) geometric improvements to interchanges and ramps.
                (6) truck-only lanes;
                (7) climbing and runaway truck lanes;
                (8) truck parking facilities eligible for funding under
            section 1401;
                (9) real-time traffic, truck parking, roadway condition, and
            multimodal transportation information systems;
                (10) improvements to freight intermodal connectors; and
                (11) improvements to truck bottlenecks.
    SEC. 1117. <<NOTE: 23 USC 167 note.>> STATE FREIGHT ADVISORY
                              COMMITTEES.

        (a) In General.--The Secretary shall encourage each State to
    establish a freight advisory committee consisting of a representative
    cross-section of public and private sector freight stakeholders,
    including representatives of ports, shippers, carriers, freight-related

    [[Page 126 STAT. 473]]

    associations, the freight industry workforce, the transportation
    department of the State, and local governments.
        (b) Role of Committee.--A freight advisory committee of a State
    described in subsection (a) shall--
                (1) advise the State on freight-related priorities, issues,
            projects, and funding needs;
                (2) serve as a forum for discussion for State transportation
            decisions affecting freight mobility;
                (3) communicate and coordinate regional priorities with
            other organizations;
                (4) promote the sharing of information between the private
            and public sectors on freight issues; and
                (5) participate in the development of the freight plan of
            the State described in section 1118.
    SEC. 1118. <<NOTE: 23 USC 167 note.>> STATE FREIGHT PLANS.

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

        (c) Relationship to Long-range Plan.--A freight plan described in
    subsection (a) may be developed separate from or incorporated into the
    statewide strategic long-range transportation plan required by section
    135 of title 23, United States Code.
    SEC. 1119. FEDERAL LANDS AND TRIBAL TRANSPORTATION PROGRAMS.

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

        ``(a) <<NOTE: Coordination.>> Purpose.--Recognizing the need for all
    public Federal and tribal transportation facilities to be treated under
    uniform policies similar to the policies that apply to Federal-aid
    highways and

    [[Page 126 STAT. 474]]

    other public transportation facilities, the Secretary of Transportation,
    in collaboration with the Secretaries of the appropriate Federal land
    management agencies, shall coordinate a uniform policy for all public
    Federal and tribal transportation facilities that shall apply to Federal
    lands transportation facilities, tribal transportation facilities, and
    Federal lands access transportation facilities.

        ``(b) Availability of Funds.--
                ``(1) Availability.--Funds authorized for the tribal
            transportation program, the Federal lands transportation
            program, and the Federal lands access program shall be available
            for contract upon apportionment, or on October 1 of the fiscal
            year for which the funds were authorized if no apportionment is
            required.
                ``(2) Amount remaining.--Any amount remaining unexpended for
            a period of 3 years after the close of the fiscal year for which
            the funds were authorized shall lapse.
                ``(3) Obligations.--The Secretary of the department
            responsible for the administration of funds under this
            subsection may incur obligations, approve projects, and enter
            into contracts under such authorizations, which shall be
            considered to be contractual obligations of the United States
            for the payment of the cost thereof, the funds of which shall be
            considered to have been expended when obligated.
                ``(4) Expenditure.--
                        ``(A) In general.--Any funds authorized for any
                    fiscal year after the date of enactment of this section
                    under the Federal lands transportation program, the
                    Federal lands access program, and the tribal
                    transportation program shall be considered to have been
                    expended if a sum equal to the total of the sums
                    authorized for the fiscal year and previous fiscal years
                    have been obligated.
                        ``(B) Credited funds.--Any funds described in
                    subparagraph (A) that are released by payment of final
                    voucher or modification of project authorizations shall
                    be--
                              ``(i) credited to the balance of unobligated
                          authorizations; and
                              ``(ii) immediately available for expenditure.
                ``(5) Applicability.--This section shall not apply to funds
            authorized before the date of enactment of this paragraph.
                ``(6) Contractual obligation.--
                        ``(A) In general.--Notwithstanding any other
                    provision of law (including regulations), the
                    authorization by the Secretary, or the Secretary of the
                    appropriate Federal land management agency if the agency
                    is the contracting office, of engineering and related
                    work for the development, design, and acquisition
                    associated with a construction project, whether
                    performed by contract or agreement authorized by law, or
                    the approval by the Secretary of plans, specifications,
                    and estimates for construction of a project, shall be
                    considered to constitute a contractual obligation of the
                    Federal Government to pay the total eligible cost of--
                              ``(i) any project funded under this title; and
                              ``(ii) any project funded pursuant to
                          agreements authorized by this title or any other
                          title.
                        ``(B) Effect.--Nothing in this paragraph--

    [[Page 126 STAT. 475]]

                              ``(i) affects the application of the Federal
                          share associated with the project being undertaken
                          under this section; or
                              ``(ii) modifies the point of obligation
                          associated with Federal salaries and expenses.
                ``(7) Federal share.--
                        ``(A) Tribal and federal lands transportation
                    program.--The Federal share of the cost of a project
                    carried out under the Federal lands transportation
                    program or the tribal transportation program shall be
                    100 percent.
                        ``(B) Federal lands access program.--The Federal
                    share of the cost of a project carried out under the
                    Federal lands access program shall be determined in
                    accordance with section 120.

        ``(c) Transportation Planning.--
                ``(1) Transportation planning procedures.--In consultation
            with the Secretary of each appropriate Federal land management
            agency, the Secretary shall implement transportation planning
            procedures for Federal lands and tribal transportation
            facilities that are consistent with the planning processes
            required under sections 134 and 135.
                ``(2) Approval of transportation improvement program.--The
            transportation improvement program developed as a part of the
            transportation planning process under this section shall be
            approved by the Secretary.
                ``(3) Inclusion in other plans.--Each regionally significant
            tribal transportation program, Federal lands transportation
            program, and Federal lands access program project shall be--
                        ``(A) developed in cooperation with State and
                    metropolitan planning organizations; and
                        ``(B) included in appropriate tribal transportation
                    program plans, Federal lands transportation program
                    plans, Federal lands access program plans, State and
                    metropolitan plans, and transportation improvement
                    programs.
                ``(4) Inclusion in state programs.--The approved tribal
            transportation program, Federal lands transportation program,
            and Federal lands access program transportation improvement
            programs shall be included in appropriate State and metropolitan
            planning organization plans and programs without further action
            on the transportation improvement program.
                ``(5) Asset management.--The Secretary and the Secretary of
            each appropriate Federal land management agency shall, to the
            extent appropriate, implement safety, bridge, pavement, and
            congestion management systems for facilities funded under the
            tribal transportation program and the Federal lands
            transportation program in support of asset management.
                ``(6) Data collection.--
                        ``(A) Data collection.--The Secretaries of the
                    appropriate Federal land management agencies shall
                    collect and report data necessary to implement the
                    Federal lands transportation program, the Federal lands
                    access program, and the tribal transportation program in
                    accordance with the Indian Self-Determination and
                    Education Assistance Act (25 U.S.C. 450 et seq.),
                    including--

    [[Page 126 STAT. 476]]

                              ``(i) inventory and condition information on
                          Federal lands transportation facilities and tribal
                          transportation facilities; and
                              ``(ii) bridge inspection and inventory
                          information on any Federal bridge open to the
                          public.
                        ``(B) Standards.--The Secretary, in coordination
                    with the Secretaries of the appropriate Federal land
                    management agencies, shall define the collection and
                    reporting data standards.
                ``(7) Administrative expenses.--To implement the activities
            described in this subsection, including direct support of
            transportation planning activities among Federal land management
            agencies, the Secretary may use not more than 5 percent for each
            fiscal year of the funds authorized for programs under sections
            203 and 204.

        ``(d) Reimbursable Agreements.--In carrying out work under
    reimbursable agreements with any State, local, or tribal government
    under this title, the Secretary--
                ``(1) may, without regard to any other provision of law
            (including regulations), record obligations against accounts
            receivable from the entity; and
                ``(2) shall credit amounts received from the entity to the
            appropriate account, which shall occur not later than 90 days
            after the date of the original request by the Secretary for
            payment.

        ``(e) Transfers.--
                ``(1) In general.--To enable the efficient use of funds made
            available for the Federal lands transportation program and the
            Federal lands access program, the funds may be transferred by
            the Secretary within and between each program with the
            concurrence of, as appropriate--
                        ``(A) the Secretary;
                        ``(B) the affected Secretaries of the respective
                    Federal land management agencies;
                        ``(C) State departments of transportation; and
                        ``(D) local government agencies.
                ``(2) Credit.--The funds described in paragraph (1) shall be
            credited back to the loaning entity with funds that are
            currently available for obligation at the time of the credit.
    ``Sec. 202. Tribal transportation program

        ``(a) Use of Funds.--
                ``(1) In general.--Funds made available under the tribal
            transportation program shall be used by the Secretary of
            Transportation and the Secretary of the Interior to pay the
            costs of--
                        ``(A)(i) transportation planning, research,
                    maintenance, engineering, rehabilitation, restoration,
                    construction, and reconstruction of tribal
                    transportation facilities;
                        ``(ii) adjacent vehicular parking areas;
                        ``(iii) interpretive signage;
                        ``(iv) acquisition of necessary scenic easements and
                    scenic or historic sites;
                        ``(v) provisions for pedestrians and bicycles;
                        ``(vi) environmental mitigation in or adjacent to
                    tribal land--

    [[Page 126 STAT. 477]]

                              ``(I) to improve public safety and reduce
                          vehicle-caused wildlife mortality while
                          maintaining habitat connectivity; and
                              ``(II) to mitigate the damage to wildlife,
                          aquatic organism passage, habitat, and ecosystem
                          connectivity, including the costs of constructing,
                          maintaining, replacing, or removing culverts and
                          bridges, as appropriate;
                        ``(vii) construction and reconstruction of roadside
                    rest areas, including sanitary and water facilities; and
                        ``(viii) other appropriate public road facilities as
                    determined by the Secretary;
                        ``(B) operation and maintenance of transit programs
                    and facilities that are located on, or provide access
                    to, tribal land, or are administered by a tribal
                    government; and
                        ``(C) any transportation project eligible for
                    assistance under this title that is located within, or
                    that provides access to, tribal land, or is associated
                    with a tribal government.
                ``(2) Contract.--In connection with an activity described in
            paragraph (1), the Secretary and the Secretary of the Interior
            may enter into a contract or other appropriate agreement with
            respect to the activity with--
                        ``(A) a State (including a political subdivision of
                    a State); or
                        ``(B) an Indian tribe.
                ``(3) Indian labor.--Indian labor may be employed, in
            accordance with such rules and regulations as may be promulgated
            by the Secretary of the Interior, to carry out any construction
            or other activity described in paragraph (1).
                ``(4) Federal employment.--No maximum limitation on Federal
            employment shall be applicable to the construction or
            improvement of tribal transportation facilities.
                ``(5) Funds for construction and improvement.--All funds
            made available for the construction and improvement of tribal
            transportation facilities shall be administered in conformity
            with regulations and agreements jointly approved by the
            Secretary and the Secretary of the Interior.
                ``(6) Administrative expenses.--Of the funds authorized to
            be appropriated for the tribal transportation program, not more
            than 6 percent may be used by the Secretary or the Secretary of
            the Interior for program management and oversight and project-
            related administrative expenses.
                ``(7) Tribal technical assistance centers.--The Secretary of
            the Interior may reserve amounts from administrative funds of
            the Bureau of Indian Affairs that are associated with the tribal
            transportation program to fund tribal technical assistance
            centers under section 504(b).
                ``(8) Maintenance.--
                        ``(A) Use of funds.--Notwithstanding any other
                    provision of this title, of the amount of funds
                    allocated to an Indian tribe from the tribal
                    transportation program, for the purpose of maintenance
                    (excluding road sealing, which shall not be subject to
                    any limitation), the Secretary shall not use an amount
                    more than the greater of--
                              ``(i) an amount equal to 25 percent; or

    [[Page 126 STAT. 478]]

                              ``(ii) $500,000.
                        ``(B) Responsibility of bureau of indian affairs and
                    secretary of the interior.--
                              ``(i) Bureau of indian affairs.--The Bureau of
                          Indian Affairs shall retain primary
                          responsibility, including annual funding request
                          responsibility, for Bureau of Indian Affairs road
                          maintenance programs on Indian reservations.
                              ``(ii) Secretary of the interior.--The
                          Secretary of the Interior shall ensure that
                          funding made available under this subsection for
                          maintenance of tribal transportation facilities
                          for each fiscal year is supplementary to, and not
                          in lieu of, any obligation of funds by the Bureau
                          of Indian Affairs for road maintenance programs on
                          Indian reservations.
                        ``(C) Tribal-state road maintenance agreements.--
                              ``(i) In general.--An Indian tribe and a State
                          may enter into a road maintenance agreement under
                          which an Indian tribe shall assume the
                          responsibility of the State for--
                                        ``(I) tribal transportation
                                    facilities; and
                                        ``(II) roads providing access to
                                    tribal transportation facilities.
                              ``(ii) Requirements.--Agreements entered into
                          under clause (i) shall--
                                        ``(I) be negotiated between the
                                    State and the Indian tribe; and
                                        ``(II) not require the approval of
                                    the Secretary.
                ``(9) Cooperation.--
                        ``(A) In general.--The cooperation of States,
                    counties, or other local subdivisions may be accepted in
                    construction and improvement.
                        ``(B) Funds received.--Any funds received from a
                    State, county, or local subdivision shall be credited to
                    appropriations available for the tribal transportation
                    program.
                ``(10) Competitive bidding.--
                        ``(A) Construction.--
                              ``(i) In general.--Subject to clause (ii) and
                          subparagraph (B), construction of each project
                          shall be performed by contract awarded by
                          competitive bidding.
                              ``(ii) Exception.--Clause (i) shall not apply
                          if the Secretary or the Secretary of the Interior
                          affirmatively finds that, under the circumstances
                          relating to the project, a different method is in
                          the public interest.
                        ``(B) Applicability.--Notwithstanding subparagraph
                    (A), section 23 of the Act of June 25, 1910 (25 U.S.C.
                    47) and section 7(b) of the Indian Self-Determination
                    and Education Assistance Act (25 U.S.C. 450e(b)) shall
                    apply to all funds administered by the Secretary of the
                    Interior that are appropriated for the construction and
                    improvement of tribal transportation facilities.

        ``(b) Funds Distribution.--
                ``(1) National tribal transportation facility inventory.--

    [[Page 126 STAT. 479]]

                        ``(A) In general.--The Secretary of the Interior, in
                    cooperation with the Secretary, shall maintain a
                    comprehensive national inventory of tribal
                    transportation facilities that are eligible for
                    assistance under the tribal transportation program.
                        ``(B) Transportation facilities included in the
                    inventory.--For purposes of identifying the tribal
                    transportation system and determining the relative
                    transportation needs among Indian tribes, the Secretary
                    shall include, at a minimum, transportation facilities
                    that are eligible for assistance under the tribal
                    transportation program that an Indian tribe has
                    requested, including facilities that--
                              ``(i) were included in the Bureau of Indian
                          Affairs system inventory prior to October 1, 2004;
                              ``(ii) are owned by an Indian tribal
                          government;
                              ``(iii) are owned by the Bureau of Indian
                          Affairs;
                              ``(iv) were constructed or reconstructed with
                          funds from the Highway Trust Fund under the Indian
                          reservation roads program since 1983;
                              ``(v) are public roads or bridges within the
                          exterior boundary of Indian reservations, Alaska
                          Native villages, and other recognized Indian
                          communities (including communities in former
                          Indian reservations in the State of Oklahoma) in
                          which the majority of residents are American
                          Indians or Alaska Natives;
                              ``(vi) are public roads within or providing
                          access to an Indian reservation or Indian trust
                          land or restricted Indian land that is not subject
                          to fee title alienation without the approval of
                          the Federal Government, or Indian or Alaska Native
                          villages, groups, or communities in which Indians
                          and Alaska Natives reside, whom the Secretary of
                          the Interior has determined are eligible for
                          services generally available to Indians under
                          Federal laws specifically applicable to Indians;
                          or
                              ``(vii) are primary access routes proposed by
                          tribal governments, including roads between
                          villages, roads to landfills, roads to drinking
                          water sources, roads to natural resources
                          identified for economic development, and roads
                          that provide access to intermodal terminals, such
                          as airports, harbors, or boat landings.
                        ``(C) Limitation on primary access routes.--For
                    purposes of this paragraph, a proposed primary access
                    route is the shortest practicable route connecting 2
                    points of the proposed route.
                        ``(D) Additional facilities.--Nothing in this
                    paragraph precludes the Secretary from including
                    additional transportation facilities that are eligible
                    for funding under the tribal transportation program in
                    the inventory used for the national funding allocation
                    if such additional facilities are included in the
                    inventory in a uniform and consistent manner nationally.
                        ``(E) Bridges.--All bridges in the inventory shall
                    be recorded in the national bridge inventory
                    administered by the Secretary under section 144.

    [[Page 126 STAT. 480]]

                ``(2) Regulations.--Notwithstanding sections 563(a) and
            565(a) of title 5, the Secretary of the Interior shall maintain
            any regulations governing the tribal transportation program.
                ``(3) Basis for funding formula.--
                        ``(A) Basis.--
                              ``(i) In general.--After making the set asides
                          authorized under subparagraph (C) and subsections
                          (c), (d), and (e) on October 1 of each fiscal
                          year, the Secretary shall distribute the remainder
                          authorized to be appropriated for the tribal
                          transportation program under this section among
                          Indian tribes as follows:
                                        ``(I) For fiscal year 2013--
                                                ``(aa) for each Indian
                                            tribe, 80 percent of the total
                                            relative need distribution
                                            factor and population adjustment
                                            factor for the fiscal year 2011
                                            funding amount made available to
                                            that Indian tribe; and
                                                ``(bb) the remainder using
                                            tribal shares as described in
                                            subparagraphs (B) and (C).
                                        ``(II) For fiscal year 2014--
                                                ``(aa) for each Indian
                                            tribe, 60 percent of the total
                                            relative need distribution
                                            factor and population adjustment
                                            factor for the fiscal year 2011
                                            funding amount made available to
                                            that Indian tribe; and
                                                ``(bb) the remainder using
                                            tribal shares as described in
                                            subparagraphs (B) and (C).
                                        ``(III) For fiscal year 2015--
                                                ``(aa) for each Indian
                                            tribe, 40 percent of the total
                                            relative need distribution
                                            factor and population adjustment
                                            factor for the fiscal year 2011
                                            funding amount made available to
                                            that Indian tribe; and
                                                ``(bb) the remainder using
                                            tribal shares as described in
                                            subparagraphs (B) and (C).
                                        ``(IV) For fiscal year 2016 and
                                    thereafter--
                                                ``(aa) for each Indian
                                            tribe, 20 percent of the total
                                            relative need distribution
                                            factor and population adjustment
                                            factor for the fiscal year 2011
                                            funding amount made available to
                                            that Indian tribe; and
                                                ``(bb) the remainder using
                                            tribal shares as described in
                                            subparagraphs (B) and (C).
                              ``(ii) Tribal high priority projects.--The
                          High Priority Projects program as included in the
                          Tribal Transportation Allocation Methodology of
                          part 170 of title 25, Code of Federal Regulations
                          (as in effect on the date of enactment of the MAP-
                          21), shall not continue in effect.
                        ``(B) Tribal shares.--Tribal shares under this
                    program shall be determined using the national tribal
                    transportation facility inventory as calculated for
                    fiscal year 2012, and the most recent data on American
                    Indian and Alaska Native population within each Indian
                    tribe's American Indian/Alaska Native Reservation or
                    Statistical Area, as computed under the Native American
                    Housing Assistance

    [[Page 126 STAT. 481]]

                    and Self-Determination Act of 1996 (25 U.S.C. 4101 et
                    seq.), in the following manner:
                              ``(i) 27 percent in the ratio that the total
                          eligible road mileage in each tribe bears to the
                          total eligible road mileage of all American
                          Indians and Alaskan Natives. For the purposes of
                          this calculation, eligible road mileage shall be
                          computed based on the inventory described in
                          paragraph (1), using only facilities included in
                          the inventory described in clause (i), (ii), or
                          (iii) of paragraph (1)(B).
                              ``(ii) 39 percent in the ratio that the total
                          population in each tribe bears to the total
                          population of all American Indians and Alaskan
                          Natives.
                              ``(iii) 34 percent shall be divided equally
                          among each Bureau of Indian Affairs region. Within
                          each region, such share of funds shall be
                          distributed to each Indian tribe in the ratio that
                          the average total relative need distribution
                          factors and population adjustment factors from
                          fiscal years 2005 through 2011 for a tribe bears
                          to the average total of relative need distribution
                          factors and population adjustment factors for
                          fiscal years 2005 through 2011 in that region.
                        ``(C) Tribal supplemental funding.--
                              ``(i) Tribal supplemental funding amount.--Of
                          funds made available for each fiscal year for the
                          tribal transportation program, the Secretary shall
                          set aside the following amount for a tribal
                          supplemental program:
                                        ``(I) If the amount made available
                                    for the tribal transportation program is
                                    less than or equal to $275,000,000, 30
                                    percent of such amount.
                                        ``(II) If the amount made available
                                    for the tribal transportation program
                                    exceeds $275,000,000--
                                                ``(aa) $82,500,000; plus
                                                ``(bb) 12.5 percent of the
                                            amount made available for the
                                            tribal transportation program in
                                            excess of $275,000,000.
                              ``(ii) Tribal supplemental allocation.--The
                          Secretary shall distribute tribal supplemental
                          funds as follows:
                                        ``(I) Distribution among regions.--
                                    Of the amounts set aside under clause
                                    (i), the Secretary shall distribute to
                                    each region of the Bureau of Indian
                                    Affairs a share of tribal supplemental
                                    funds in proportion to the regional
                                    total of tribal shares based on the
                                    cumulative tribal shares of all Indian
                                    tribes within such region under
                                    subparagraph (B).
                                        ``(II) Distribution within a
                                    region.--Of the amount that a region
                                    receives under subclause (I), the
                                    Secretary shall distribute tribal
                                    supplemental funding among Indian tribes
                                    within such region as follows:
                                                ``(aa) Tribal supplemental
                                            amounts.--The Secretary shall
                                            determine--
                                            <<NOTE: Determination.>>
                                                    ``(AA) which such Indian
                                                tribes would be entitled
                                                under subparagraph (A) to

    [[Page 126 STAT. 482]]

                                                receive in a fiscal year
                                                less funding than they would
                                                receive in fiscal year 2011
                                                pursuant to the relative
                                                need distribution factor and
                                                population adjustment
                                                factor, as described in
                                                subpart C of part 170 of
                                                title 25, Code of Federal
                                                Regulations (as in effect on
                                                the date of enactment of the
                                                MAP-21); and
                                                    ``(BB) the combined
                                                amount that such Indian
                                                tribes would be entitled to
                                                receive in fiscal year 2011
                                                pursuant to such relative
                                                need distribution factor and
                                                population adjustment factor
                                                in excess of the amount that
                                                they would be entitled to
                                                receive in the fiscal year
                                                under subparagraph (B).
                                                ``(bb) Combined amount.--
                                            Subject to subclause (III), the
                                            Secretary shall distribute to
                                            each Indian tribe that meets the
                                            criteria described in item
                                            (aa)(AA) a share of funding
                                            under this subparagraph in
                                            proportion to the share of the
                                            combined amount determined under
                                            item (aa)(BB) attributable to
                                            such Indian tribe.
                                        ``(III) Ceiling.--An Indian tribe
                                    may not receive under subclause (II) and
                                    based on its tribal share under
                                    subparagraph (A) a combined amount that
                                    exceeds the amount that such Indian
                                    tribe would be entitled to receive in
                                    fiscal year 2011 pursuant to the
                                    relative need distribution factor and
                                    population adjustment factor, as
                                    described in subpart C of part 170 of
                                    title 25, Code of Federal Regulations
                                    (as in effect on the date of enactment
                                    of the MAP-21).
                                        ``(IV) Other amounts.--If the amount
                                    made available for a region under
                                    subclause (I) exceeds the amount
                                    distributed among Indian tribes within
                                    that region under subclause (II), the
                                    Secretary shall distribute the remainder
                                    of such region's funding under such
                                    subclause among all Indian tribes in
                                    that region in proportion to the
                                    combined amount that each such Indian
                                    tribe received under subparagraph (A)
                                    and subclauses (I), (II), and (III).]
                ``(4) Transferred funds.--
                        ``(A) <<NOTE: Deadline.>> In general.--Not later
                    than 30 days after the date on which funds are made
                    available to the Secretary of the Interior under this
                    paragraph, the funds shall be distributed to, and made
                    available for immediate use by, eligible Indian tribes,
                    in accordance with the formula for distribution of funds
                    under the tribal transportation program.
                        ``(B) Use of funds.--Notwithstanding any other
                    provision of this section, funds made available to
                    Indian tribes for tribal transportation facilities shall
                    be expended on projects identified in a transportation
                    improvement program approved by the Secretary.

    [[Page 126 STAT. 483]]

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

    [[Page 126 STAT. 484]]

                        ``(B) Exclusion of agency participation.--In
                    accordance with subparagraph (A), all funds, including
                    contract support costs, for a program or project to
                    which subparagraph (A) applies shall be paid to the
                    Indian tribal government without regard to the
                    organizational level at which the Department of the
                    Interior has previously carried out, or the Department
                    of Transportation has previously carried out under the
                    tribal transportation program, the programs, functions,
                    services, or activities involved.
                        ``(C) Consortia.--Two or more Indian tribes that are
                    otherwise eligible to participate in a program or
                    project to which this chapter applies may form a
                    consortium to be considered as a single Indian tribe for
                    the purpose of participating in the project under this
                    section.
                        ``(D) Secretary as signatory.--Notwithstanding any
                    other provision of law, the Secretary is authorized to
                    enter into a funding agreement with an Indian tribal
                    government to carry out a tribal transportation facility
                    program or project under subparagraph (A) that is
                    located on an Indian reservation or provides access to
                    the reservation or a community of the Indian tribe.
                        ``(E) Funding.--The amount an Indian tribal
                    government receives for a program or project under
                    subparagraph (A) shall equal the sum of the funding that
                    the Indian tribal government would otherwise receive for
                    the program or project in accordance with the funding
                    formula established under this subsection and such
                    additional amounts as the Secretary determines equal the
                    amounts that would have been withheld for the costs of
                    the Bureau of Indian Affairs for administration of the
                    program or project.
                        ``(F) Eligibility.--
                              ``(i) In general.--Subject to clause (ii) and
                          the approval of the Secretary, funds may be made
                          available under subparagraph (A) to an Indian
                          tribal government for a program or project in a
                          fiscal year only if the Indian tribal government
                          requesting such funds demonstrates to the
                          satisfaction of the Secretary financial stability
                          and financial management capability during the 3
                          fiscal years immediately preceding the fiscal year
                          for which the request is being made.
                              ``(ii) Considerations.--An Indian tribal
                          government that had no uncorrected significant and
                          material audit exceptions in the required annual
                          audit of the contracts or self-governance funding
                          agreements made by the Indian tribe with any
                          Federal agency under the Indian Self-Determination
                          and Education Assistance Act (25 U.S.C. 450 et
                          seq.) during the 3-fiscal year period referred in
                          clause (i) shall be conclusive evidence of the
                          financial stability and financial management
                          capability of the Indian tribe for purposes of
                          clause (i).
                        ``(G) Assumption of functions and duties.--An Indian
                    tribal government receiving funding under subparagraph
                    (A) for a program or project shall assume all functions
                    and duties that the Secretary of the Interior would have
                    performed with respect to a program or project under
                    this chapter, other than those functions and duties that

    [[Page 126 STAT. 485]]

                    inherently cannot be legally transferred under the
                    Indian Self-Determination and Education Assistance Act
                    (25 U.S.C. 450 et seq.).
                        ``(H) Powers.--An Indian tribal government receiving
                    funding under subparagraph (A) for a program or project
                    shall have all powers that the Secretary of the Interior
                    would have exercised in administering the funds
                    transferred to the Indian tribal government for such
                    program or project under this section if the funds had
                    not been transferred, except to the extent that such
                    powers are powers that inherently cannot be legally
                    transferred under the Indian Self-Determination and
                    Education Assistance Act (25 U.S.C. 450 et seq.).
                        ``(I) Dispute resolution.--In the event of a
                    disagreement between the Secretary or the Secretary of
                    the Interior and an Indian tribe over whether a
                    particular function, duty, or power may be lawfully
                    transferred to the Indian tribe under the Indian Self-
                    Determination and Education Assistance Act (25 U.S.C.
                    450 et seq.), the Indian tribe shall have the right to
                    pursue all alternative dispute resolution and appeal
                    procedures authorized by that Act, including regulations
                    issued to carry out the Act.
                        ``(J) Termination of contract or agreement.--On the
                    date of the termination of a contract or agreement under
                    this section by an Indian tribal government, the
                    Secretary shall transfer all funds that would have been
                    allocated to the Indian tribal government under the
                    contract or agreement to the Secretary of the Interior
                    to provide continued transportation services in
                    accordance with applicable law.

        ``(c) Planning.--
                ``(1) In general.--For each fiscal year, not more than 2
            percent of the funds made available for the tribal
            transportation program shall be allocated among Indian tribal
            governments that apply for transportation planning pursuant to
            the Indian Self-Determination and Education Assistance Act (25
            U.S.C. 450 et seq.).
                ``(2) Requirement.--An Indian tribal government, in
            cooperation with the Secretary of the Interior and, as
            appropriate, with a State, local government, or metropolitan
            planning organization, shall carry out a transportation planning
            process in accordance with section 201(c).
                ``(3) Selection and approval of projects.--A project funded
            under this section shall be--
                        ``(A) selected by the Indian tribal government from
                    the transportation improvement program; and
                        ``(B) subject to the approval of the Secretary of
                    the Interior and the Secretary.

        ``(d) Tribal Transportation Facility Bridges.--
                ``(1) Nationwide priority program.--The Secretary shall
            maintain a nationwide priority program for improving deficient
            bridges eligible for the tribal transportation program.
                ``(2) Funding.--Before making any distribution under
            subsection (b), the Secretary shall set aside not more than 2
            percent of the funds made available under the tribal
            transportation program for each fiscal year to be allocated--

    [[Page 126 STAT. 486]]

                        ``(A) to carry out any planning, design,
                    engineering, preconstruction, construction, and
                    inspection of a project to replace, rehabilitate,
                    seismically retrofit, paint, apply calcium magnesium
                    acetate, sodium acetate/formate, or other
                    environmentally acceptable, minimally corrosive anti-
                    icing and deicing composition; or
                        ``(B) to implement any countermeasure for deficient
                    tribal transportation facility bridges, including
                    multiple-pipe culverts.
                ``(3) Eligible bridges.--To be eligible to receive funding
            under this subsection, a bridge described in paragraph (1)
            shall--
                        ``(A) have an opening of not less than 20 feet;
                        ``(B) be classified as a tribal transportation
                    facility; and
                        ``(C) be structurally deficient or functionally
                    obsolete.
                ``(4) Approval requirement.--The Secretary may make funds
            available under this subsection for preliminary engineering,
            construction, and construction engineering activities after
            approval of required documentation and verification of
            eligibility in accordance with this title.

        ``(e) Safety.--
                ``(1) Funding.--Before making any distribution under
            subsection (b), the Secretary shall set aside not more than 2
            percent of the funds made available under the tribal
            transportation program for each fiscal year to be allocated
            based on an identification and analysis of highway safety issues
            and opportunities on tribal land, as determined by the
            Secretary, on application of the Indian tribal governments for
            eligible projects described in section 148(a)(4).
                ``(2) Project selection.--An Indian tribal government, in
            cooperation with the Secretary of the Interior and, as
            appropriate, with a State, local government, or metropolitan
            planning organization, shall select projects from the
            transportation improvement program, subject to the approval of
            the Secretary and the Secretary of the Interior.

        ``(f) Federal-aid Eligible Projects.--Before approving as a project
    on a tribal transportation facility any project eligible for funds
    apportioned under section 104 in a State, the Secretary shall, for
    projects on tribal transportation facilities, determine that the
    obligation of funds for the project is supplementary to and not in lieu
    of the obligation of a fair and equitable share of funds apportioned to
    the State under section 104.
    ``Sec. 203. Federal lands transportation program

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

    [[Page 126 STAT. 487]]

                              ``(iii) provision for pedestrians and
                          bicycles;
                              ``(iv) environmental mitigation in or adjacent
                          to Federal land open to the public--
                                        ``(I) to improve public safety and
                                    reduce vehicle-caused wildlife mortality
                                    while maintaining habitat connectivity;
                                    and
                                        ``(II) to mitigate the damage to
                                    wildlife, aquatic organism passage,
                                    habitat, and ecosystem connectivity,
                                    including the costs of constructing,
                                    maintaining, replacing, or removing
                                    culverts and bridges, as appropriate;
                              ``(v) construction and reconstruction of
                          roadside rest areas, including sanitary and water
                          facilities;
                              ``(vi) congestion mitigation; and
                              ``(vii) other appropriate public road
                          facilities, as determined by the Secretary;
                        ``(B) operation and maintenance of transit
                    facilities;
                        ``(C) any transportation project eligible for
                    assistance under this title that is on a public road
                    within or adjacent to, or that provides access to,
                    Federal lands open to the public; and
                        ``(D) not more $10,000,000 of the amounts made
                    available per fiscal year to carry out this section for
                    activities eligible under subparagraph (A)(iv).
                ``(2) Contract.--In connection with an activity described in
            paragraph (1), the Secretary and the Secretary of the
            appropriate Federal land management agency may enter into a
            contract or other appropriate agreement with respect to the
            activity with--
                        ``(A) a State (including a political subdivision of
                    a State); or
                        ``(B) an Indian tribe.
                ``(3) Administration.--All appropriations for the
            construction and improvement of Federal lands transportation
            facilities shall be administered in conformity with regulations
            and agreements jointly approved by the Secretary and the
            Secretary of the appropriate Federal land managing agency.
                ``(4) Cooperation.--
                        ``(A) In general.--The cooperation of States,
                    counties, or other local subdivisions may be accepted in
                    construction and improvement.
                        ``(B) Funds received.--Any funds received from a
                    State, county, or local subdivision shall be credited to
                    appropriations available for the class of Federal lands
                    transportation facilities to which the funds were
                    contributed.
                ``(5) Competitive bidding.--
                        ``(A) In general.--Subject to subparagraph (B),
                    construction of each project shall be performed by
                    contract awarded by competitive bidding.
                        ``(B) Exception.--Subparagraph (A) shall not apply
                    if the Secretary or the Secretary of the appropriate
                    Federal land management agency affirmatively finds that,
                    under the circumstances relating to the project, a
                    different method is in the public interest.

        ``(b) Agency Program Distributions.--

    [[Page 126 STAT. 488]]

                ``(1) <<NOTE: Effective date. Deadlines.>> In general.--On
            October 1, 2011, and on October 1 of each fiscal year
            thereafter, the Secretary shall allocate the sums authorized to
            be appropriated for the fiscal year for the Federal lands
            transportation program on the basis of applications of need, as
            determined by the Secretary--
                        ``(A) in consultation with the Secretaries of the
                    applicable Federal land management agencies; and
                        ``(B) in coordination with the transportation plans
                    required under section 201 of the respective
                    transportation systems of--
                              ``(i) the National Park Service;
                              ``(ii) the Forest Service;
                              ``(iii) the United States Fish and Wildlife
                          Service;
                              ``(iv) the Corps of Engineers; and
                              ``(v) the Bureau of Land Management.
                ``(2) Applications.--
                        ``(A) Requirements.--Each application submitted by a
                    Federal land management agency shall include proposed
                    programs at various potential funding levels, as defined
                    by the Secretary following collaborative discussions
                    with applicable Federal land management agencies.
                        ``(B) Consideration by secretary.--In evaluating an
                    application submitted under subparagraph (A), the
                    Secretary shall consider the extent to which the
                    programs support--
                              ``(i) the transportation goals of--
                                        ``(I) a state of good repair of
                                    transportation facilities;
                                        ``(II) a reduction of bridge
                                    deficiencies, and
                                        ``(III) an improvement of safety;
                              ``(ii) high-use Federal recreational sites or
                          Federal economic generators; and
                              ``(iii) the resource and asset management
                          goals of the Secretary of the respective Federal
                          land management agency.
                        ``(C) Permissive contents.--Applications may include
                    proposed programs the duration of which extend over a
                    multiple-year period to support long-term transportation
                    planning and resource management initiatives.

        ``(c) National Federal Lands Transportation Facility Inventory.--
                ``(1) In general.--The Secretaries of the appropriate
            Federal land management agencies, in cooperation with the
            Secretary, shall maintain a comprehensive national inventory of
            public Federal lands transportation facilities.
                ``(2) Transportation facilities included in the
            inventories.--To identify the Federal lands transportation
            system and determine the relative transportation needs among
            Federal land management agencies, the inventories shall include,
            at a minimum, facilities that--
                        ``(A) provide access to high-use Federal recreation
                    sites or Federal economic generators, as determined by
                    the Secretary in coordination with the respective
                    Secretaries of the appropriate Federal land management
                    agencies; and
                        ``(B) are owned by 1 of the following agencies:
                              ``(i) The National Park Service.
                              ``(ii) The Forest Service.

    [[Page 126 STAT. 489]]

                              ``(iii) The United States Fish and Wildlife
                          Service.
                              ``(iv) The Bureau of Land Management.
                              ``(v) The Corps of Engineers.
                ``(3) Availability.--The inventories shall be made available
            to the Secretary.
                ``(4) Updates.--The Secretaries of the appropriate Federal
            land management agencies shall update the inventories of the
            appropriate Federal land management agencies, as determined by
            the Secretary after collaborative discussions with the
            Secretaries of the appropriate Federal land management agencies.
                ``(5) Review.--A decision to add or remove a facility from
            the inventory shall not be considered a Federal action for
            purposes of review under the National Environmental Policy Act
            of 1969 (42 U.S.C. 4321 et seq.).

        ``(d) Bicycle Safety.--The Secretary of the appropriate Federal land
    management agency shall prohibit the use of bicycles on each federally
    owned road that has a speed limit of 30 miles per hour or greater and an
    adjacent paved path for use by bicycles within 100 yards of the road
    unless the Secretary determines that the bicycle level of service on
    that roadway is rated B or higher.
    ``Sec. 204. Federal lands access program

        ``(a) Use of Funds.--
                ``(1) In general.--Funds made available under the Federal
            lands access program shall be used by the Secretary of
            Transportation and the Secretary of the appropriate Federal land
            management agency to pay the cost of--
                        ``(A) transportation planning, research,
                    engineering, preventive maintenance, rehabilitation,
                    restoration, construction, and reconstruction of Federal
                    lands access transportation facilities located on or
                    adjacent to, or that provide access to, Federal land,
                    and--
                              ``(i) adjacent vehicular parking areas;
                              ``(ii) acquisition of necessary scenic
                          easements and scenic or historic sites;
                              ``(iii) provisions for pedestrians and
                          bicycles;
                              ``(iv) environmental mitigation in or adjacent
                          to Federal land to improve public safety and
                          reduce vehicle-caused wildlife mortality while
                          maintaining habitat connectivity;
                              ``(v) construction and reconstruction of
                          roadside rest areas, including sanitary and water
                          facilities; and
                              ``(vi) other appropriate public road
                          facilities, as determined by the Secretary;
                        ``(B) operation and maintenance of transit
                    facilities; and
                        ``(C) any transportation project eligible for
                    assistance under this title that is within or adjacent
                    to, or that provides access to, Federal land.
                ``(2) Contract.--In connection with an activity described in
            paragraph (1), the Secretary and the Secretary of the
            appropriate Federal land management agency may enter into a
            contract or other appropriate agreement with respect to the
            activity with--
                        ``(A) a State (including a political subdivision of
                    a State); or
                        ``(B) an Indian tribe.

    [[Page 126 STAT. 490]]

                ``(3) Administration.--All appropriations for the
            construction and improvement of Federal lands access
            transportation facilities shall be administered in conformity
            with regulations and agreements approved by the Secretary.
                ``(4) Cooperation.--
                        ``(A) In general.--The cooperation of States,
                    counties, or other local subdivisions may be accepted in
                    construction and improvement.
                        ``(B) Funds received.--Any funds received from a
                    State, county, or local subdivision for a Federal lands
                    access transportation facility project shall be credited
                    to appropriations available under the Federal lands
                    access program.
                ``(5) Competitive bidding.--
                        ``(A) In general.--Subject to subparagraph (B),
                    construction of each project shall be performed by
                    contract awarded by competitive bidding.
                        ``(B) Exception.--Subparagraph (A) shall not apply
                    if the Secretary or the Secretary of the appropriate
                    Federal land management agency affirmatively finds that,
                    under the circumstances relating to the project, a
                    different method is in the public interest.

        ``(b) Program Distributions.--
                ``(1) In general.--Funding made available to carry out the
            Federal lands access program shall be allocated among those
            States that have Federal land, in accordance with the following
            formula:
                        ``(A) 80 percent of the available funding for use in
                    those States that contain at least 1 \1/2\ percent of
                    the total public land in the United States managed by
                    the agencies described in paragraph (2), to be
                    distributed as follows:
                              ``(i) 30 percent in the ratio that--
                                        ``(I) recreational visitation within
                                    each such State; bears to
                                        ``(II) the recreational visitation
                                    within all such States.
                              ``(ii) 5 percent in the ratio that--
                                        ``(I) the Federal land area within
                                    each such State; bears to
                                        ``(II) the Federal land area in all
                                    such States.
                              ``(iii) 55 percent in the ratio that--
                                        ``(I) the Federal public road miles
                                    within each such State; bears to
                                        ``(II) the Federal public road miles
                                    in all such States.
                              ``(iv) 10 percent in the ratio that--
                                        ``(I) the number of Federal public
                                    bridges within each such State; bears to
                                        ``(II) the number of Federal public
                                    bridges in all such States.
                        ``(B) 20 percent of the available funding for use in
                    those States that do not contain at least 1 \1/2\
                    percent of the total public land in the United States
                    managed by the agencies described in paragraph (2), to
                    be distributed as follows:
                              ``(i) 30 percent in the ratio that--

    [[Page 126 STAT. 491]]

                                        ``(I) recreational visitation within
                                    each such State; bears to
                                        ``(II) the recreational visitation
                                    within all such States.
                              ``(ii) 5 percent in the ratio that--
                                        ``(I) the Federal land area within
                                    each such State; bears to
                                        ``(II) the Federal land area in all
                                    such States.
                              ``(iii) 55 percent in the ratio that--
                                        ``(I) the Federal public road miles
                                    within each such State; bears to
                                        ``(II) the Federal public road miles
                                    in all such States.
                              ``(iv) 10 percent in the ratio that--
                                        ``(I) the number of Federal public
                                    bridges within each such State; bears to
                                        ``(II) the number of Federal public
                                    bridges in all such States.
                ``(2) Data source.--Data necessary to distribute funding
            under paragraph (1) shall be provided by the following Federal
            land management agencies:
                        ``(A) The National Park Service.
                        ``(B) The Forest Service.
                        ``(C) The United States Fish and Wildlife Service.
                        ``(D) The Bureau of Land Management.
                        ``(E) The Corps of Engineers.

        ``(c) Programming Decisions Committee.--
                ``(1) In general.--Programming decisions shall be made
            within each State by a committee comprised of--
                        ``(A) a representative of the Federal Highway
                    Administration;
                        ``(B) a representative of the State Department of
                    Transportation; and
                        ``(C) a representative of any appropriate political
                    subdivision of the State.
                ``(2) Consultation requirement.--The committee described in
            paragraph (1) shall cooperate with each applicable Federal
            agency in each State before any joint discussion or final
            programming decision.
                ``(3) Project preference.--In making a programming decision
            under paragraph (1), the committee shall give preference to
            projects that provide access to, are adjacent to, or are located
            within high-use Federal recreation sites or Federal economic
            generators, as identified by the Secretaries of the appropriate
            Federal land management agencies.''.

        (b) <<NOTE: Repeal.>> Public Lands Development Roads and Trails.--
    Section 214 of title 23, United States Code, is repealed.

        (c) Conforming Amendments.--
                (1) Chapter 2 analysis.--The analysis for chapter 2 of title
            23, United States Code, is amended--
                        (A) by striking the items relating to sections 201
                    through 204 and inserting the following:

    ``201. Federal lands and tribal transportation programs.
    ``202. Tribal transportation program.
    ``203. Federal lands transportation program.
    ``204. Federal lands access program.''; and

                        (B) by striking the item relating to section 214.

    [[Page 126 STAT. 492]]

                (2) Definition.--Section 138(a) of title 23, United States
            Code, is amended in the third sentence by striking ``park road
            or parkway under section 204 of this title'' and inserting
            ``Federal lands transportation facility''.
                (3) Rules, regulations, and recommendations.--Section 315 of
            title 23, United States Code, is amended by striking ``204(f)''
            and inserting ``202(a)(5), 203(a)(3),''.
    SEC. 1120. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

        Section 1301 of the SAFETEA-LU (23 U.S.C. 101 note; 119 Stat. 1198)
    is amended--
                (1) in subsection (b), by striking ``States'' and inserting
            ``eligible applicants'';
                (2) in subsection (c), by striking paragraph (3) and
            inserting the following:
                ``(3) <<NOTE: Deadline.>> Eligible applicant.--The term
            `eligible applicant' means--
                        ``(A) a State department of transportation or a
                    group of State departments of transportation;
                        ``(B) a tribal government or consortium of tribal
                    governments;
                        ``(C) a transit agency; or
                        ``(D) a multi-State or multi-jurisdictional group of
                    the agencies described in subparagraphs (A) through
                    (C).'';
                (3) in subsection (d)(2), by striking ``75'' and inserting
            ``50'';
                (4) in subsection (e), by striking ``State'' and inserting
            ``eligible applicant'';
                (5) in subsection (f)(3) by striking subparagraph (B) and
            inserting the following:
                        ``(B) improves roadways vital to national energy
                    security; and'';
                (6) in subsection (g)(1) by adding at the end the following:
                        ``(E) Congressional approval.--The Secretary may not
                    issue a letter of intent, enter into a full funding
                    grant agreement under paragraph (2), or make any other
                    obligation or commitment to fund a project under this
                    section if a joint resolution of disapproval is enacted
                    disapproving funding for the project before the last day
                    of the 60-day period described in subparagraph (B).'';
                (7) in subsection (k), by adding at the end the following:
                ``(3) Project selection justifications.--
                        ``(A) <<NOTE: Deadline. Reports.>> In general.--Not
                    later than 30 days after the date on which the Secretary
                    selects a project for funding under this section, the
                    Secretary shall submit to the Committee on
                    Transportation and Infrastructure of the House of
                    Representatives and the Committee on Environment and
                    Public Works of the Senate a report that describes the
                    reasons for selecting the project, based on the criteria
                    described in subsection (f).
                        ``(B) Inclusions.--The report submitted under
                    subparagraph (A) shall specify each criteria described
                    in subsection (f) that the project meets.
                        ``(C) <<NOTE: Web posting.>> Availability.--The
                    Secretary shall make available on the website of the
                    Department the report submitted under subparagraph
                    (A).''; and
                (8) by striking subsections (l) and (m) and inserting the
            following:

    [[Page 126 STAT. 493]]

        ``(l) Report.--
                ``(1) In general.--Not later than 2 years after the date of
            enactment of the MAP-21, the Secretary shall submit a report to
            the Committee on Transportation and Infrastructure of the House
            of Representatives and the Committee on Environment and Public
            Works of the Senate regarding projects of national and regional
            significance.
                ``(2) Purpose.--The purpose of the report issued under this
            subsection shall be to identify projects of national and
            regional significance that--
                        ``(A) will significantly improve the performance of
                    the Federal-aid highway system, nationally or
                    regionally;
                        ``(B) is able to--
                              ``(i) generate national economic benefits that
                          reasonably exceed the costs of the projects,
                          including increased access to jobs, labor, and
                          other critical economic inputs;
                              ``(ii) reduce long-term congestion, including
                          impacts in the State, region, and the United
                          States, and increase speed, reliability, and
                          accessibility of the movement of people or
                          freight; and
                              ``(iii) improve transportation safety,
                          including reducing transportation accidents, and
                          serious injuries and fatalities; and
                        ``(C) can be supported by an acceptable degree of
                    non-Federal financial commitments.
                ``(3) Contents.--The report issued under this subsection
            shall include--
                        ``(A) a comprehensive list of each project of
                    national and regional significance that--
                              ``(i) has been complied through a survey of
                          State departments of transportation; and
                              ``(ii) has been classified by the Secretary as
                          a project of regional or national significance in
                          accordance with this section;
                        ``(B) an analysis of the information collected under
                    paragraph (1), including a discussion of the factors
                    supporting each classification of a project as a project
                    of regional or national significance; and
                        ``(C) recommendations on financing for eligible
                    project costs.

        ``(m) Authorization of Appropriations.--There is authorized to be
    appropriated to carry out this section $500,000,000 for fiscal year
    2013, to remain available until expended.''.
    SEC. 1121. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL
                              FACILITIES.

        (a) Construction of Ferry Boats and Ferry Terminal Facilities.--
    Section 147 of title 23, United States Code, is amended--
                (1) by striking subsections (c) and (d);
                (2) by redesignating subsections (e) and (f) as subsections
            (f) and (g), respectively; and
                (3) by inserting after subsection (b) the following:

    [[Page 126 STAT. 494]]

        ``(c) Distribution of Funds.--Of the amounts made available to ferry
    systems and public entities responsible for developing ferries under
    this section for a fiscal year, 100 percent shall be allocated in
    accordance with the formula set forth in subsection (d).
        ``(d) Formula.--Of the amounts allocated pursuant to subsection
    (c)--
                ``(1) 20 percent shall be allocated among eligible entities
            in the proportion that--
                        ``(A) the number of ferry passengers carried by each
                    ferry system in the most recent fiscal year; bears to
                        ``(B) the number of ferry passengers carried by all
                    ferry systems in the most recent fiscal year;
                ``(2) 45 percent shall be allocated among eligible entities
            in the proportion that--
                        ``(A) the number of vehicles carried by each ferry
                    system in the most recent fiscal year; bears to
                        ``(B) the number of vehicles carried by all ferry
                    systems in the most recent fiscal year; and
                ``(3) 35 percent shall be allocated among eligible entities
            in the proportion that--
                        ``(A) the total route miles serviced by each ferry
                    system; bears to
                        ``(B) the total route miles serviced by all ferry
                    systems.

        ``(e) Authorization of Appropriations.--There is authorized to be
    appropriated out of the Highway Trust Fund (other than the Mass Transit
    Account) to carry out this section $67,000,000 for each of fiscal years
    2013 and 2014.''.
        (b) National Ferry Database.--Section 1801(e) of the SAFETEA-LU (23
    U.S.C. 129 note; Public Law 109-59) is amended--
                (1) in paragraph (2), by inserting ``, including any
            Federal, State, and local government funding sources,'' after
            ``sources''; and
                (2) in paragraph (4)--
                        (A) in subparagraph (B), by striking ``and'' at the
                    end;
                        (B) by redesignating subparagraph (C) as
                    subparagraph (D);
                        (C) by inserting after subparagraph (B), the
                    following:
                        ``(C) ensure that the database is consistent with
                    the national transit database maintained by the Federal
                    Transit Administration; and''; and
                        (D) in subparagraph (D) (as redesignated by
                    subparagraph (B)), by striking ``2009'' and inserting
                    ``2014''.
    SEC. 1122. TRANSPORTATION ALTERNATIVES.

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

        ``(a) Reservation of Funds.--
                ``(1) <<NOTE: Effective dates.>> In general.--On October 1
            of each of fiscal years 2013 and 2014, the Secretary shall
            proportionally reserve from the funds apportioned to a State
            under section 104(b) to carry out the requirements of this
            section an amount equal to the amount obtained by multiplying
            the amount determined under paragraph (2) by the ratio that--

    [[Page 126 STAT. 495]]

                        ``(A) the amount apportioned to the State for the
                    transportation enhancements program for fiscal year 2009
                    under section 133(d)(2), as in effect on the day before
                    the date of enactment of the MAP-21; bears to
                        ``(B) the total amount of funds apportioned to all
                    States for that fiscal year for the transportation
                    enhancements program for fiscal year 2009.
                ``(2) <<NOTE: Determination.>> Calculation of national
            amount.--The Secretary shall determine an amount for each fiscal
            year that is equal to 2 percent of the amounts authorized to be
            appropriated for such fiscal year from the Highway Trust Fund
            (other than the Mass Transit Account) to carry out chapters 1,
            2, 5, and 6 of this title.

        ``(b) Eligible Projects.--A State may obligate the funds reserved
    under this section for any of the following projects or activities:
                ``(1) Transportation alternatives, as defined in section
            101.
                ``(2) The recreational trails program under section 206.
                ``(3) The safe routes to school program under section 1404
            of the SAFETEA-LU (23 U.S.C. 402 note; Public Law 109-59).
                ``(4) Planning, designing, or constructing boulevards and
            other roadways largely in the right-of-way of former Interstate
            System routes or other divided highways.

        ``(c) Allocations of Funds.--
                ``(1) Calculation.--Of the funds reserved in a State under
            this section--
                        ``(A) 50 percent for a fiscal year shall be
                    obligated under this section to any eligible entity in
                    proportion to their relative shares of the population of
                    the State--
                              ``(i) in urbanized areas of the State with an
                          urbanized area population of over 200,000;
                              ``(ii) in areas of the State other than urban
                          areas with a population greater than 5,000; and
                              ``(iii) in other areas of the State; and
                        ``(B) 50 percent shall be obligated in any area of
                    the State.
                ``(2) Metropolitan areas.--Funds attributed to an urbanized
            area under paragraph (1)(A)(i) may be obligated in the
            metropolitan area established under section 134 that encompasses
            the urbanized area.
                ``(3) Distribution among urbanized areas of over 200,000
            population.--
                        ``(A) In general.--Except as provided in paragraph
                    (1)(B), the amount of funds that a State is required to
                    obligate under paragraph (1)(A)(i) shall be obligated in
                    urbanized areas described in paragraph (1)(A)(i) based
                    on the relative population of the areas.
                        ``(B) Other factors.--A State may obligate the funds
                    described in subparagraph (A) based on other factors if
                    the State and the relevant metropolitan planning
                    organizations jointly apply to the Secretary for the
                    permission to base the obligation on other factors and
                    the Secretary grants the request.
                ``(4) Access to funds.--
                        ``(A) In general.--Each State or metropolitan
                    planning organization required to obligate funds in
                    accordance with

    [[Page 126 STAT. 496]]

                    paragraph (1) shall develop a competitive process to
                    allow eligible entities to submit projects for funding
                    that achieve the objectives of this subsection.
                        ``(B) Definition of eligible entity.--In this
                    paragraph, the term `eligible entity' means--
                              ``(i) a local government;
                              ``(ii) a regional transportation authority;
                              ``(iii) a transit agency;
                              ``(iv) a natural resource or public land
                          agency;
                              ``(v) a school district, local education
                          agency, or school;
                              ``(vi) a tribal government; and
                              ``(vii) any other local or regional
                          governmental entity with responsibility for or
                          oversight of transportation or recreational trails
                          (other than a metropolitan planning organization
                          or a State agency) that the State determines to be
                          eligible, consistent with the goals of this
                          subsection.
                ``(5) Selection of projects.--For funds reserved in a State
            under this section and suballocated to a metropolitan planning
            area under paragraph (1)(A)(i), each such metropolitan planning
            organization shall select projects carried out within the
            boundaries of the applicable metropolitan planning area, in
            consultation with the relevant State.

        ``(d) <<NOTE: Effective date.>> Flexibility of Excess Reserved
    Funding.--Beginning in the second fiscal year after the date of
    enactment of the MAP-21, if on August 1 of that fiscal year the
    unobligated balance of available funds reserved by a State under this
    section exceeds 100 percent of such reserved amount in such fiscal year,
    the State may thereafter obligate the amount of excess funds for any
    activity--
                ``(1) that is eligible to receive funding under this
            section; or
                ``(2) for which the Secretary has approved the obligation of
            funds for any State under section 149.

        ``(e) Treatment of Projects.--Notwithstanding any other provision of
    law, projects funded under this section (excluding those carried out
    under subsection (f)) shall be treated as projects on a Federal-aid
    highway under this chapter.
        ``(f) Continuation of Certain Recreational Trails Projects.--Each
    State shall--
                ``(1) obligate an amount of funds reserved under this
            section equal to the amount of the funds apportioned to the
            State for fiscal year 2009 under section 104(h)(2) for projects
            relating to recreational trails under section 206;
                ``(2) return 1 percent of those funds to the Secretary for
            the administration of that program; and
                ``(3) comply with the provisions of the administration of
            the recreational trails program under section 206, including the
            use of apportioned funds described under subsection (d)(3)(A) of
            that section.

        ``(g) <<NOTE: Notification. Deadline.>> State Flexibility.--A State
    may opt out of the recreational trails program under subsection (f) if
    the Governor of the State notifies the Secretary not later than 30 days
    prior to apportionments being made for any fiscal year.''.

    [[Page 126 STAT. 497]]

        (b) Conforming Amendment.--The analysis for chapter 2 of title 23,
    United States Code, is amended by striking the item relating to section
    213 and inserting the following:

    ``213. Transportation alternatives''.

    SEC. 1123. <<NOTE: 23 USC 202 note.>> TRIBAL HIGH PRIORITY
                              PROJECTS PROGRAM.

        (a) Definitions.--In this section:
                (1) Emergency or disaster.--The term ``emergency or
            disaster'' means damage to a tribal transportation facility
            that--
                        (A) renders the tribal transportation facility
                    impassable or unusable;
                        (B) is caused by--
                              (i) a natural disaster over a widespread area;
                          or
                              (ii) a catastrophic failure from an external
                          cause; and
                        (C) would be eligible under the emergency relief
                    program under section 125 of title 23, United States
                    Code, but does not meet the funding thresholds required
                    by that section.
                (2) List.--The term ``list'' means the funding priority list
            developed under subsection (c)(5).
                (3) Program.--The term ``program'' means the Tribal High
            Priority Projects program established under subsection (b)(1).
                (4) Project.--The term ``project'' means a project provided
            funds under the program.

        (b) Program.--
                (1) In general.--The Secretary shall use amounts made
            available under subsection (h) to carry out a Tribal High
            Priority Projects program under which funds shall be provided to
            eligible applicants in accordance with this section.
                (2) Eligible applicants.--Applicants eligible for program
            funds under this section include--
                        (A) an Indian tribe whose annual allocation of
                    funding under section 202 of title 23, United States
                    Code, is insufficient to complete the highest priority
                    project of the Indian tribe;
                        (B) a governmental subdivision of an Indian tribe--
                              (i) that is authorized to administer the
                          funding of the Indian tribe under section 202 of
                          title 23, United States Code; and
                              (ii) for which the annual allocation under
                          that section is insufficient to complete the
                          highest priority project of the Indian tribe; or
                        (C) any Indian tribe that has an emergency or
                    disaster with respect to a transportation facility
                    included on the national inventory of tribal
                    transportation facilities under section 202(b)(1) of
                    title 23, United States Code.

        (c) Project Applications; Funding.--
                (1) In general.--To apply for funds under this section, an
            eligible applicant shall submit to the Department of the
            Interior or the Department an application that includes--
                        (A) project scope of work, including deliverables,
                    budget, and timeline;
                        (B) the amount of funds requested;
                        (C) project information addressing--

    [[Page 126 STAT. 498]]

                              (i) the ranking criteria identified in
                          paragraph (3); or
                              (ii) the nature of the emergency or disaster;
                        (D) documentation that the project meets the
                    definition of a tribal transportation facility and is
                    included in the national inventory of tribal
                    transportation facilities under section 202(b)(1) of
                    title 23, United States Code;
                        (E) documentation of official tribal action
                    requesting the project;
                        (F) documentation from the Indian tribe providing
                    authority for the Secretary of the Interior to place the
                    project on a transportation improvement program if the
                    project is selected and approved; and
                        (G) any other information the Secretary of the
                    Interior or Secretary considers appropriate to make a
                    determination.
                (2) Limitation on applications.--An applicant for funds
            under the program may only have 1 application for assistance
            under this section pending at any 1 time, including any
            emergency or disaster application.
                (3) Application ranking.--
                        (A) <<NOTE: Determination.>> In general.--The
                    Secretary of the Interior and the Secretary shall
                    determine the eligibility of, and fund, program
                    applications, subject to the availability of funds.
                        (B) Ranking criteria.--The project ranking criteria
                    for applications under this section shall include--
                              (i) the existence of safety hazards with
                          documented fatality and injury accidents;
                              (ii) the number of years since the Indian
                          tribe last completed a construction project funded
                          by section 202 of title 23, United States Code;
                              (iii) the readiness of the Indian tribe to
                          proceed to construction or bridge design need;
                              (iv) the percentage of project costs matched
                          by funds that are not provided under section 202
                          of title 23, United States Code, with projects
                          with a greater percentage of other sources of
                          matching funds ranked ahead of lesser matches);
                              (v) the amount of funds requested, with
                          requests for lesser amounts given greater
                          priority;
                              (vi) the challenges caused by geographic
                          isolation; and
                              (vii) all weather access for employment,
                          commerce, health, safety, educational resources,
                          or housing.
                (4) Project scoring matrix.--The project scoring matrix
            established in the appendix to part 170 of title 25, Code of
            Regulations (as in effect on the date of enactment of this Act)
            shall be used to rank all applications accepted under this
            section.
                (5) Funding priority list.--
                        (A) In general.--The Secretary of the Interior and
                    the Secretary shall jointly produce a funding priority
                    list that ranks the projects approved for funding under
                    the program.
                        (B) Limitation.--The number of projects on the list
                    shall be limited by the amount of funding made
                    available.

    [[Page 126 STAT. 499]]

                (6) Timeline.-- <<NOTE: Notification.>> The Secretary of the
            Interior and the Secretary shall--
                        (A) require applications for funding no sooner than
                    60 days after funding is made available pursuant to
                    subsection (a);
                        (B) notify all applicants and Regions in writing of
                    acceptance of applications;
                        (C) rank all accepted applications in accordance
                    with the project scoring matrix, develop the funding
                    priority list, and return unaccepted applications to the
                    applicant with an explanation of deficiencies;
                        (D) notify all accepted applicants of the projects
                    included on the funding priority list no later than 180
                    days after the application deadline has passed pursuant
                    to subparagraph (A); and
                        (E) distribute funds to successful applicants.

        (d) Emergency or Disaster Project Applications.--
                (1) In general.--Notwithstanding subsection (c)(6), an
            eligible applicant may submit an emergency or disaster project
            application at any time during the fiscal year.
                (2) Consideration as priority.--The Secretary shall--
                        (A) consider project applications submitted under
                    paragraph (1) to be a priority; and
                        (B) fund the project applications in accordance with
                    paragraph (3).
                (3) Funding.--
                        (A) In general.--If an eligible applicant submits an
                    application for a project under this subsection before
                    the issuance of the list under subsection (c)(5) and the
                    project is determined to be eligible for program funds,
                    the Secretary of the Interior shall provide funding for
                    the project before providing funding for other approved
                    projects on the list.
                        (B) Submission after issuance of list.--If an
                    eligible applicant submits an application under this
                    subsection after the issuance of the list under
                    subsection (c)(5) and the distribution of program funds
                    in accordance with the list, the Secretary of the
                    Interior shall provide funding for the project on the
                    date on which unobligated funds provided to projects on
                    the list are returned to the Department of the Interior.
                        (C) Effect on other projects.--If the Secretary of
                    the Interior uses funding previously designated for a
                    project on the list to fund an emergency or disaster
                    project under this subsection, the project on the list
                    that did not receive funding as a result of the
                    redesignation of funds shall move to the top of the list
                    the following year.
                (4) Emergency or disaster project cost.--The cost of a
            project submitted as an emergency or disaster under this
            subsection shall be at least 10 percent of the distribution of
            funds of the Indian tribe under section 202(b) of title 23,
            United States Code.

        (e) Limitation on Use of Funds.--Program funds shall not be used
    for--
                (1) transportation planning;
                (2) research;
                (3) routine maintenance activities;

    [[Page 126 STAT. 500]]

                (4) structures and erosion protection unrelated to
            transportation and roadways;
                (5) general reservation planning not involving
            transportation;
                (6) landscaping and irrigation systems not involving
            transportation programs and projects;
                (7) work performed on projects that are not included on a
            transportation improvement program approved by the Federal
            Highway Administration, unless otherwise authorized by the
            Secretary of the Interior and the Secretary;
                (8) the purchase of equipment unless otherwise authorized by
            Federal law; or
                (9) the condemnation of land for recreational trails.

        (f) Limitation on Project Amounts.--Project funding shall be limited
    to a maximum of $1,000,000 per application, except that funding for
    disaster or emergency projects shall also be limited to the estimated
    cost of repairing damage to the tribal transportation facility.
        (g) Cost Estimate Certification.--All cost estimates prepared for a
    project shall be required to be submitted by the applicant to the
    Secretary of the Interior and the Secretary for certification and
    approval.
        (h) Authorization of Appropriations.--
                (1) In general.--There is authorized to be appropriated
            $30,000,000 out of the general fund of the Treasury to carry out
            the program for each of fiscal years 2013 and 2014.
                (2) Administration.--The funds made available under
            paragraph (1) shall be administered in the same manner as funds
            made available for the tribal transportation program under
            section 202 of title 23, United States Code, except that--
                        (A) the funds made available for the program shall
                    remain available until September 30 of the third fiscal
                    year after the year appropriated; and
                        (B) the Federal share of the cost of a project shall
                    be 100 percent.

                       Subtitle B--Performance Management

    SEC. 1201. METROPOLITAN TRANSPORTATION PLANNING.

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

        ``(a) Policy.--It is in the national interest--
                ``(1) to encourage and promote the safe and efficient
            management, operation, and development of surface transportation
            systems that will serve the mobility needs of people and freight
            and foster economic growth and development within and between
            States and urbanized areas, while minimizing transportation-
            related fuel consumption and air pollution through metropolitan
            and statewide transportation planning processes identified in
            this chapter; and
                ``(2) to encourage the continued improvement and evolution
            of the metropolitan and statewide transportation planning
            processes by metropolitan planning organizations, State
            departments of transportation, and public transit operators as
            guided

    [[Page 126 STAT. 501]]

            by the planning factors identified in subsection (h) and section
            135(d).

        ``(b) Definitions.--In this section and section 135, the following
    definitions apply:
                ``(1) Metropolitan planning area.--The term `metropolitan
            planning area' means the geographic area determined by agreement
            between the metropolitan planning organization for the area and
            the Governor under subsection (e).
                ``(2) Metropolitan planning organization.--The term
            `metropolitan planning organization' means the policy board of
            an organization established as a result of the designation
            process under subsection (d).
                ``(3) Nonmetropolitan area.--The term `nonmetropolitan area'
            means a geographic area outside designated metropolitan planning
            areas.
                ``(4) Nonmetropolitan local official.--The term
            `nonmetropolitan local official' means elected and appointed
            officials of general purpose local government in a
            nonmetropolitan area with responsibility for transportation.
                ``(5) Regional transportation planning organization.--The
            term `regional transportation planning organization' means a
            policy board of an organization established as the result of a
            designation under section 135(m).
                ``(6) TIP.--The term `TIP' means a transportation
            improvement program developed by a metropolitan planning
            organization under subsection (j).
                ``(7) Urbanized area.--The term `urbanized area' means a
            geographic area with a population of 50,000 or more, as
            determined by the Bureau of the Census.

        ``(c) General Requirements.--
                ``(1) Development of long-range plans and tips.--To
            accomplish the objectives in subsection (a), metropolitan
            planning organizations designated under subsection (d), in
            cooperation with the State and public transportation operators,
            shall develop long-range transportation plans and transportation
            improvement programs through a performance-driven, outcome-based
            approach to planning for metropolitan areas of the State.
                ``(2) Contents.--The plans and TIPs for each metropolitan
            area shall provide for the development and integrated management
            and operation of transportation systems and facilities
            (including accessible pedestrian walkways and bicycle
            transportation facilities) that will function as an intermodal
            transportation system for the metropolitan planning area and as
            an integral part of an intermodal transportation system for the
            State and the United States.
                ``(3) Process of development.--The process for developing
            the plans and TIPs shall provide for consideration of all modes
            of transportation and shall be continuing, cooperative, and
            comprehensive to the degree appropriate, based on the complexity
            of the transportation problems to be addressed.

        ``(d) Designation of Metropolitan Planning Organizations.--
                ``(1) In general.--To carry out the transportation planning
            process required by this section, a metropolitan planning
            organization shall be designated for each urbanized area with a
            population of more than 50,000 individuals--

    [[Page 126 STAT. 502]]

                        ``(A) by agreement between the Governor and units of
                    general purpose local government that together represent
                    at least 75 percent of the affected population
                    (including the largest incorporated city (based on
                    population) as determined by the Bureau of the Census);
                    or
                        ``(B) in accordance with procedures established by
                    applicable State or local law.
                ``(2) <<NOTE: Deadline.>> Structure.--Not later than 2 years
            after the date of enactment of MAP-21, each metropolitan
            planning organization that serves an area designated as a
            transportation management area shall consist of--
                        ``(A) local elected officials;
                        ``(B) officials of public agencies that administer
                    or operate major modes of transportation in the
                    metropolitan area, including representation by providers
                    of public transportation; and
                        ``(C) appropriate State officials.
                ``(3) Limitation on statutory construction.--Nothing in this
            subsection shall be construed to interfere with the authority,
            under any State law in effect on December 18, 1991, of a public
            agency with multimodal transportation responsibilities--
                        ``(A) to develop the plans and TIPs for adoption by
                    a metropolitan planning organization; and
                        ``(B) to develop long-range capital plans,
                    coordinate transit services and projects, and carry out
                    other activities pursuant to State law.
                ``(4) Continuing designation.--A designation of a
            metropolitan planning organization under this subsection or any
            other provision of law shall remain in effect until the
            metropolitan planning organization is redesignated under
            paragraph (5).
                ``(5) Redesignation procedures.--
                        ``(A) In general.--A metropolitan planning
                    organization may be redesignated by agreement between
                    the Governor and units of general purpose local
                    government that together represent at least 75 percent
                    of the existing planning area population (including the
                    largest incorporated city (based on population) as
                    determined by the Bureau of the Census) as appropriate
                    to carry out this section.
                        ``(B) Restructuring.--A metropolitan planning
                    organization may be restructured to meet the
                    requirements of paragraph (2) without undertaking a
                    redesignation.
                ``(6) Designation of more than 1 metropolitan planning
            organization.--More than 1 metropolitan planning organization
            may be designated within an existing metropolitan planning area
            only if the Governor and the existing metropolitan planning
            organization determine that the size and complexity of the
            existing metropolitan planning area make designation of more
            than 1 metropolitan planning organization for the area
            appropriate.

        ``(e) Metropolitan Planning Area Boundaries.--
                ``(1) In general.--For the purposes of this section, the
            boundaries of a metropolitan planning area shall be determined
            by agreement between the metropolitan planning organization and
            the Governor.
                ``(2) <<NOTE: Time period.>> Included area.--Each
            metropolitan planning area--

    [[Page 126 STAT. 503]]

                        ``(A) shall encompass at least the existing
                    urbanized area and the contiguous area expected to
                    become urbanized within a 20-year forecast period for
                    the transportation plan; and
                        ``(B) may encompass the entire metropolitan
                    statistical area or consolidated metropolitan
                    statistical area, as defined by the Bureau of the
                    Census.
                ``(3) Identification of new urbanized areas within existing
            planning area boundaries.--The designation by the Bureau of the
            Census of new urbanized areas within an existing metropolitan
            planning area shall not require the redesignation of the
            existing metropolitan planning organization.
                ``(4) Existing metropolitan planning areas in
            nonattainment.--
                        ``(A) In general.--Notwithstanding paragraph (2),
                    except as provided in subparagraph (B), in the case of
                    an urbanized area designated as a nonattainment area for
                    ozone or carbon monoxide under the Clean Air Act (42
                    U.S.C. 7401 et seq.) as of the date of enactment of the
                    SAFETEA-LU, the boundaries of the metropolitan planning
                    area in existence as of such date of enactment shall be
                    retained.
                        ``(B) Exception.--The boundaries described in
                    subparagraph (A) may be adjusted by agreement of the
                    Governor and affected metropolitan planning
                    organizations in the manner described in subsection
                    (d)(5).
                ``(5) New metropolitan planning areas in nonattainment.--In
            the case of an urbanized area designated after the date of
            enactment of the SAFETEA-LU, as a nonattainment area for ozone
            or carbon monoxide, the boundaries of the metropolitan planning
            area--
                        ``(A) shall be established in the manner described
                    in subsection (d)(1);
                        ``(B) shall encompass the areas described in
                    paragraph (2)(A);
                        ``(C) may encompass the areas described in paragraph
                    (2)(B); and
                        ``(D) may address any nonattainment area identified
                    under the Clean Air Act (42 U.S.C. 7401 et seq.) for
                    ozone or carbon monoxide.

        ``(f) Coordination in Multistate Areas.--
                ``(1) In general.--The Secretary shall encourage each
            Governor with responsibility for a portion of a multistate
            metropolitan area and the appropriate metropolitan planning
            organizations to provide coordinated transportation planning for
            the entire metropolitan area.
                ``(2) Interstate compacts.--The consent of Congress is
            granted to any 2 or more States--
                        ``(A) to enter into agreements or compacts, not in
                    conflict with any law of the United States, for
                    cooperative efforts and mutual assistance in support of
                    activities authorized under this section as the
                    activities pertain to interstate areas and localities
                    within the States; and
                        ``(B) to establish such agencies, joint or
                    otherwise, as the States may determine desirable for
                    making the agreements and compacts effective.

    [[Page 126 STAT. 504]]

                ``(3) Reservation of rights.--The right to alter, amend, or
            repeal interstate compacts entered into under this subsection is
            expressly reserved.

        ``(g) MPO Consultation in Plan and TIP Coordination.--
                ``(1) Nonattainment areas.--If more than 1 metropolitan
            planning organization has authority within a metropolitan area
            or an area which is designated as a nonattainment area for ozone
            or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et
            seq.), each metropolitan planning organization shall consult
            with the other metropolitan planning organizations designated
            for such area and the State in the coordination of plans and
            TIPs required by this section.
                ``(2) Transportation improvements located in multiple
            mpos.--If a transportation improvement, funded from the Highway
            Trust Fund or authorized under chapter 53 of title 49, is
            located within the boundaries of more than 1 metropolitan
            planning area, the metropolitan planning organizations shall
            coordinate plans and TIPs regarding the transportation
            improvement.
                ``(3) Relationship with other planning officials.--
                        ``(A) In general.--The Secretary shall encourage
                    each metropolitan planning organization to consult with
                    officials responsible for other types of planning
                    activities that are affected by transportation in the
                    area (including State and local planned growth, economic
                    development, environmental protection, airport
                    operations, and freight movements) or to coordinate its
                    planning process, to the maximum extent practicable,
                    with such planning activities.
                        ``(B) Requirements.--Under the metropolitan planning
                    process, transportation plans and TIPs shall be
                    developed with due consideration of other related
                    planning activities within the metropolitan area, and
                    the process shall provide for the design and delivery of
                    transportation services within the metropolitan area
                    that are provided by--
                              ``(i) recipients of assistance under chapter
                          53 of title 49;
                              ``(ii) governmental agencies and nonprofit
                          organizations (including representatives of the
                          agencies and organizations) that receive Federal
                          assistance from a source other than the Department
                          of Transportation to provide nonemergency
                          transportation services; and
                              ``(iii) recipients of assistance under section
                          204.

        ``(h) Scope of Planning Process.--
                ``(1) In general.--The metropolitan planning process for a
            metropolitan planning area under this section shall provide for
            consideration of projects and strategies that will--
                        ``(A) support the economic vitality of the
                    metropolitan area, especially by enabling global
                    competitiveness, productivity, and efficiency;
                        ``(B) increase the safety of the transportation
                    system for motorized and nonmotorized users;
                        ``(C) increase the security of the transportation
                    system for motorized and nonmotorized users;
                        ``(D) increase the accessibility and mobility of
                    people and for freight;

    [[Page 126 STAT. 505]]

                        ``(E) protect and enhance the environment, promote
                    energy conservation, improve the quality of life, and
                    promote consistency between transportation improvements
                    and State and local planned growth and economic
                    development patterns;
                        ``(F) enhance the integration and connectivity of
                    the transportation system, across and between modes, for
                    people and freight;
                        ``(G) promote efficient system management and
                    operation; and
                        ``(H) emphasize the preservation of the existing
                    transportation system.
                ``(2) Performance-based approach.--
                        ``(A) In general.--The metropolitan transportation
                    planning process shall provide for the establishment and
                    use of a performance-based approach to transportation
                    decisionmaking to support the national goals described
                    in section 150(b) of this title and in section 5301(c)
                    of title 49.
                        ``(B) Performance targets.--
                              ``(i) Surface transportation performance
                          targets.--
                                        ``(I) In general.--Each metropolitan
                                    planning organization shall establish
                                    performance targets that address the
                                    performance measures described in
                                    section 150(c), where applicable, to use
                                    in tracking progress towards attainment
                                    of critical outcomes for the region of
                                    the metropolitan planning organization.
                                        ``(II) Coordination.--Selection of
                                    performance targets by a metropolitan
                                    planning organization shall be
                                    coordinated with the relevant State to
                                    ensure consistency, to the maximum
                                    extent practicable.
                              ``(ii) Public transportation performance
                          targets.--Selection of performance targets by a
                          metropolitan planning organization shall be
                          coordinated, to the maximum extent practicable,
                          with providers of public transportation to ensure
                          consistency with sections 5326(c) and 5329(d) of
                          title 49.
                        ``(C) Timing.--Each metropolitan planning
                    organization shall establish the performance targets
                    under subparagraph (B) not later than 180 days after the
                    date on which the relevant State or provider of public
                    transportation establishes the performance targets.
                        ``(D) Integration of other performance-based
                    plans.--A metropolitan planning organization shall
                    integrate in the metropolitan transportation planning
                    process, directly or by reference, the goals,
                    objectives, performance measures, and targets described
                    in other State transportation plans and transportation
                    processes, as well as any plans developed under chapter
                    53 of title 49 by providers of public transportation,
                    required as part of a performance-based program.
                ``(3) Failure to consider factors.--The failure to consider
            any factor specified in paragraphs (1) and (2) shall not be
            reviewable by any court under this title or chapter 53

    [[Page 126 STAT. 506]]

            of title 49, subchapter II of chapter 5 of title 5, or chapter 7
            of title 5 in any matter affecting a transportation plan, a TIP,
            a project or strategy, or the certification of a planning
            process.

        ``(i) Development of Transportation Plan.--
                ``(1) Requirements.--
                        ``(A) In general.--Each metropolitan planning
                    organization shall prepare and update a transportation
                    plan for its metropolitan planning area in accordance
                    with the requirements of this subsection.
                        ``(B) Frequency.--
                              ``(i) In general.--The metropolitan planning
                          organization shall prepare and update such plan
                          every 4 years (or more frequently, if the
                          metropolitan planning organization elects to
                          update more frequently) in the case of each of the
                          following:
                                        ``(I) Any area designated as
                                    nonattainment, as defined in section
                                    107(d) of the Clean Air Act (42 U.S.C.
                                    7407(d)).
                                        ``(II) Any area that was
                                    nonattainment and subsequently
                                    designated to attainment in accordance
                                    with section 107(d)(3) of that Act (42
                                    U.S.C. 7407(d)(3)) and that is subject
                                    to a maintenance plan under section 175A
                                    of that Act (42 U.S.C. 7505a).
                              ``(ii) <<NOTE: Deadline.>> Other areas.--In
                          the case of any other area required to have a
                          transportation plan in accordance with the
                          requirements of this subsection, the metropolitan
                          planning organization shall prepare and update
                          such plan every 5 years unless the metropolitan
                          planning organization elects to update more
                          frequently.
                ``(2) Transportation plan.--A transportation plan under this
            section shall be in a form that the Secretary determines to be
            appropriate and shall contain, at a minimum, the following:
                        ``(A) Identification of transportation facilities.--
                              ``(i) In general.--An identification of
                          transportation facilities (including major
                          roadways, transit, multimodal and intermodal
                          facilities, nonmotorized transportation
                          facilities, and intermodal connectors) that should
                          function as an integrated metropolitan
                          transportation system, giving emphasis to those
                          facilities that serve important national and
                          regional transportation functions.
                              ``(ii) Factors.--In formulating the
                          transportation plan, the metropolitan planning
                          organization shall consider factors described in
                          subsection (h) as the factors relate to a 20-year
                          forecast period.
                        ``(B) Performance measures and targets.--A
                    description of the performance measures and performance
                    targets used in assessing the performance of the
                    transportation system in accordance with subsection
                    (h)(2).
                        ``(C) System performance report.--A system
                    performance report and subsequent updates evaluating the
                    condition and performance of the transportation system
                    with respect to the performance targets described in
                    subsection (h)(2), including--

    [[Page 126 STAT. 507]]

                              ``(i) progress achieved by the metropolitan
                          planning organization in meeting the performance
                          targets in comparison with system performance
                          recorded in previous reports; and
                              ``(ii) for metropolitan planning organizations
                          that voluntarily elect to develop multiple
                          scenarios, an analysis of how the preferred
                          scenario has improved the conditions and
                          performance of the transportation system and how
                          changes in local policies and investments have
                          impacted the costs necessary to achieve the
                          identified performance targets.
                        ``(D) Mitigation activities.--
                              ``(i) In general.--A long-range transportation
                          plan shall include a discussion of types of
                          potential environmental mitigation activities and
                          potential areas to carry out these activities,
                          including activities that may have the greatest
                          potential to restore and maintain the
                          environmental functions affected by the plan.
                              ``(ii) Consultation.--The discussion shall be
                          developed in consultation with Federal, State, and
                          tribal wildlife, land management, and regulatory
                          agencies.
                        ``(E) Financial plan.--
                              ``(i) In general.--A financial plan that--
                                        ``(I) demonstrates how the adopted
                                    transportation plan can be implemented;
                                        ``(II) indicates resources from
                                    public and private sources that are
                                    reasonably expected to be made available
                                    to carry out the plan; and
                                        ``(III) recommends any additional
                                    financing strategies for needed projects
                                    and programs.
                              ``(ii) Inclusions.--The financial plan may
                          include, for illustrative purposes, additional
                          projects that would be included in the adopted
                          transportation plan if reasonable additional
                          resources beyond those identified in the financial
                          plan were available.
                              ``(iii) Cooperative development.--For the
                          purpose of developing the transportation plan, the
                          metropolitan planning organization, transit
                          operator, and State shall cooperatively develop
                          estimates of funds that will be available to
                          support plan implementation.
                        ``(F) Operational and management strategies.--
                    Operational and management strategies to improve the
                    performance of existing transportation facilities to
                    relieve vehicular congestion and maximize the safety and
                    mobility of people and goods.
                        ``(G) Capital investment and other strategies.--
                    Capital investment and other strategies to preserve the
                    existing and projected future metropolitan
                    transportation infrastructure and provide for multimodal
                    capacity increases based on regional priorities and
                    needs.
                        ``(H) Transportation and transit enhancement
                    activities.--Proposed transportation and transit
                    enhancement activities.
                ``(3) Coordination with clean air act agencies.--In
            metropolitan areas that are in nonattainment for ozone or carbon
            monoxide under the Clean Air Act (42 U.S.C. 7401

    [[Page 126 STAT. 508]]

            et seq.), the metropolitan planning organization shall
            coordinate the development of a transportation plan with the
            process for development of the transportation control measures
            of the State implementation plan required by that Act.
                ``(4) Optional scenario development.--
                        ``(A) In general.--A metropolitan planning
                    organization may, while fitting the needs and complexity
                    of its community, voluntarily elect to develop multiple
                    scenarios for consideration as part of the development
                    of the metropolitan transportation plan, in accordance
                    with subparagraph (B).
                        ``(B) Recommended components.--A metropolitan
                    planning organization that chooses to develop multiple
                    scenarios under subparagraph (A) shall be encouraged to
                    consider--
                              ``(i) potential regional investment strategies
                          for the planning horizon;
                              ``(ii) assumed distribution of population and
                          employment;
                              ``(iii) a scenario that, to the maximum extent
                          practicable, maintains baseline conditions for the
                          performance measures identified in subsection
                          (h)(2);
                              ``(iv) a scenario that improves the baseline
                          conditions for as many of the performance measures
                          identified in subsection (h)(2) as possible;
                              ``(v) revenue constrained scenarios based on
                          the total revenues expected to be available over
                          the forecast period of the plan; and
                              ``(vi) estimated costs and potential revenues
                          available to support each scenario.
                        ``(C) Metrics.--In addition to the performance
                    measures identified in section 150(c), metropolitan
                    planning organizations may evaluate scenarios developed
                    under this paragraph using locally-developed measures.
                ``(5) Consultation.--
                        ``(A) In general.--In each metropolitan area, the
                    metropolitan planning organization shall consult, as
                    appropriate, with State and local agencies responsible
                    for land use management, natural resources,
                    environmental protection, conservation, and historic
                    preservation concerning the development of a long-range
                    transportation plan.
                        ``(B) Issues.--The consultation shall involve, as
                    appropriate--
                              ``(i) comparison of transportation plans with
                          State conservation plans or maps, if available; or
                              ``(ii) comparison of transportation plans to
                          inventories of natural or historic resources, if
                          available.
                ``(6) Participation by interested parties.--
                        ``(A) In general.--Each metropolitan planning
                    organization shall provide citizens, affected public
                    agencies, representatives of public transportation
                    employees, freight shippers, providers of freight
                    transportation services, private providers of
                    transportation, representatives of users of public
                    transportation, representatives of users of pedestrian
                    walkways and bicycle transportation facilities,
                    representatives of the disabled, and other interested
                    parties

    [[Page 126 STAT. 509]]

                    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) <<NOTE: Public information.>> make
                          public information available in electronically
                          accessible format and means, such as the World
                          Wide Web, as appropriate to afford reasonable
                          opportunity for consideration of public
                          information under subparagraph (A).
                ``(7) <<NOTE: Public information.>> Publication.--A
            transportation plan involving Federal participation shall be
            published or otherwise made readily available by the
            metropolitan planning organization for public review, including
            (to the maximum extent practicable) in electronically accessible
            formats and means, such as the World Wide Web, approved by the
            metropolitan planning organization and submitted for information
            purposes to the Governor at such times and in such manner as the
            Secretary shall establish.
                ``(8) Selection of projects from illustrative list.--
            Notwithstanding paragraph (2)(C), a State or metropolitan
            planning organization shall not be required to select any
            project from the illustrative list of additional projects
            included in the financial plan under paragraph (2)(C).

        ``(j) Metropolitan TIP.--
                ``(1) Development.--
                        ``(A) In general.--In cooperation with the State and
                    any affected public transportation operator, the
                    metropolitan planning organization designated for a
                    metropolitan area shall develop a TIP for the
                    metropolitan planning area that--
                              ``(i) contains projects consistent with the
                          current metropolitan transportation plan;
                              ``(ii) reflects the investment priorities
                          established in the current metropolitan
                          transportation plan; and
                              ``(iii) once implemented, is designed to make
                          progress toward achieving the performance targets
                          established under subsection (h)(2).
                        ``(B) Opportunity for comment.--In developing the
                    TIP, the metropolitan planning organization, in
                    cooperation with the State and any affected public
                    transportation operator, shall provide an opportunity
                    for participation by interested parties in the
                    development of the program, in accordance with
                    subsection (i)(5).
                        ``(C) Funding estimates.--For the purpose of
                    developing the TIP, the metropolitan planning
                    organization, public transportation agency, and State
                    shall cooperatively

    [[Page 126 STAT. 510]]

                    develop estimates of funds that are reasonably expected
                    to be available to support program implementation.
                        ``(D) Updating and approval.--The TIP shall be--
                              ``(i) updated at least once every 4 years; and
                              ``(ii) approved by the metropolitan planning
                          organization and the Governor.
                ``(2) Contents.--
                        ``(A) <<NOTE: Deadline.>> Priority list.--The TIP
                    shall include a priority list of proposed Federally
                    supported projects and strategies to be carried out
                    within each 4-year period after the initial adoption of
                    the TIP.
                        ``(B) Financial plan.--The TIP shall include a
                    financial plan that--
                              ``(i) demonstrates how the TIP can be
                          implemented;
                              ``(ii) indicates resources from public and
                          private sources that are reasonably expected to be
                          available to carry out the program;
                              ``(iii) identifies innovative financing
                          techniques to finance projects, programs, and
                          strategies; and
                              ``(iv) may include, for illustrative purposes,
                          additional projects that would be included in the
                          approved TIP if reasonable additional resources
                          beyond those identified in the financial plan were
                          available.
                        ``(C) Descriptions.--Each project in the TIP shall
                    include sufficient descriptive material (such as type of
                    work, termini, length, and other similar factors) to
                    identify the project or phase of the project.
                        ``(D) Performance target achievement.--The
                    transportation improvement program shall include, to the
                    maximum extent practicable, a description of the
                    anticipated effect of the transportation improvement
                    program toward achieving the performance targets
                    established in the metropolitan transportation plan,
                    linking investment priorities to those performance
                    targets.
                ``(3) Included projects.--
                        ``(A) Projects under this title and chapter 53 of
                    title 49.--A TIP developed under this subsection for a
                    metropolitan area shall include the projects within the
                    area that are proposed for 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

    [[Page 126 STAT. 511]]

                    of a project, only if full funding can reasonably be
                    anticipated to be available for the project or the
                    identified phase within the time period contemplated for
                    completion of the project or the identified phase.
                ``(4) Notice and comment.--Before approving a TIP, a
            metropolitan planning organization, in cooperation with the
            State and any affected public transportation operator, shall
            provide an opportunity for participation by interested parties
            in the development of the program, in accordance with subsection
            (i)(5).
                ``(5) Selection of projects.--
                        ``(A) In general.--Except as otherwise provided in
                    subsection (k)(4) and in addition to the TIP development
                    required under paragraph (1), the selection of Federally
                    funded projects in metropolitan areas shall be carried
                    out, from the approved TIP--
                              ``(i) by--
                                        ``(I) in the case of projects under
                                    this title, the State; and
                                        ``(II) in the case of projects under
                                    chapter 53 of title 49, the designated
                                    recipients of public transportation
                                    funding; and
                              ``(ii) in cooperation with the metropolitan
                          planning organization.
                        ``(B) Modifications to project priority.--
                    Notwithstanding any other provision of law, action by
                    the Secretary shall not be required to advance a project
                    included in the approved TIP in place of another project
                    in the program.
                ``(6) Selection of projects from illustrative list.--
                        ``(A) No required selection.--Notwithstanding
                    paragraph (2)(B)(iv), a State or metropolitan planning
                    organization shall not be required to select any project
                    from the illustrative list of additional projects
                    included in the financial plan under paragraph
                    (2)(B)(iv).
                        ``(B) Required action by the secretary.--Action by
                    the Secretary shall be required for a State or
                    metropolitan planning organization to select any project
                    from the illustrative list of additional projects
                    included in the financial plan under paragraph
                    (2)(B)(iv) for inclusion in an approved TIP.
                ``(7) Publication.--
                        ``(A) Publication of tips.--A TIP involving Federal
                    participation shall be published or otherwise made
                    readily available by the metropolitan planning
                    organization for public review.
                        ``(B) Publication of annual listings of projects.--
                              ``(i) In general.--An annual listing of
                          projects, including investments in pedestrian
                          walkways and bicycle transportation facilities,
                          for which Federal funds have been obligated in the
                          preceding year shall be published or otherwise
                          made available by the cooperative effort of the
                          State, transit operator, and metropolitan planning
                          organization for public review.
                              ``(ii) Requirement.--The listing shall be
                          consistent with the categories identified in the
                          TIP.

        ``(k) Transportation Management Areas.--
                ``(1) Identification and designation.--

    [[Page 126 STAT. 512]]

                        ``(A) Required identification.--The Secretary shall
                    identify as a transportation management area each
                    urbanized area (as defined by the Bureau of the Census)
                    with a population of over 200,000 individuals.
                        ``(B) Designations on request.--The Secretary shall
                    designate any additional area as a transportation
                    management area on the request of the Governor and the
                    metropolitan planning organization designated for the
                    area.
                ``(2) Transportation plans.--In a transportation management
            area, transportation plans shall be based on a continuing and
            comprehensive transportation planning process carried out by the
            metropolitan planning organization in cooperation with the State
            and public transportation operators.
                ``(3) Congestion management process.--
                        ``(A) In general.--Within a metropolitan planning
                    area serving a transportation management area, the
                    transportation planning process under this section shall
                    address congestion management through a process that
                    provides for effective management and operation, based
                    on a cooperatively developed and implemented
                    metropolitan-wide strategy, of new and existing
                    transportation facilities eligible for funding under
                    this title and chapter 53 of title 49 through the use of
                    travel demand reduction and operational management
                    strategies.
                        ``(B) <<NOTE: Deadline.>> Schedule.--The Secretary
                    shall establish an appropriate phase-in schedule for
                    compliance with the requirements of this section but no
                    sooner than 1 year after the identification of a
                    transportation management area.
                ``(4) Selection of projects.--
                        ``(A) In general.--All Federally funded projects
                    carried out within the boundaries of a metropolitan
                    planning area serving a transportation management area
                    under this title (excluding projects carried out on the
                    National Highway System) or under chapter 53 of title 49
                    shall be selected for implementation from the approved
                    TIP by the metropolitan planning organization designated
                    for the area in consultation with the State and any
                    affected public transportation operator.
                        ``(B) National highway system projects.--Projects
                    carried out within the boundaries of a metropolitan
                    planning area serving a transportation management area
                    on the National Highway System shall be selected for
                    implementation from the approved TIP by the State in
                    cooperation with the metropolitan planning organization
                    designated for the area.
                ``(5) Certification.--
                        ``(A) In general.--The Secretary shall--
                              ``(i) ensure that the metropolitan planning
                          process of a metropolitan planning organization
                          serving a transportation management area is being
                          carried out in accordance with applicable
                          provisions of Federal law; and
                              ``(ii) subject to subparagraph (B), certify,
                          not less often than once every 4 years, that the
                          requirements of this paragraph are met with
                          respect to the metropolitan planning process.

    [[Page 126 STAT. 513]]

                        ``(B) Requirements for certification.--The Secretary
                    may make the certification under subparagraph (A) if--
                              ``(i) the transportation planning process
                          complies with the requirements of this section and
                          other applicable requirements of Federal law; and
                              ``(ii) there is a TIP for the metropolitan
                          planning area that has been approved by the
                          metropolitan planning organization and the
                          Governor.
                        ``(C) Effect of failure to certify.--
                              ``(i) Withholding of project funds.--If a
                          metropolitan planning process of a metropolitan
                          planning organization serving a transportation
                          management area is not certified, the Secretary
                          may withhold up to 20 percent of the funds
                          attributable to the metropolitan planning area of
                          the metropolitan planning organization for
                          projects funded under this title and chapter 53 of
                          title 49.
                              ``(ii) Restoration of withheld funds.--The
                          withheld funds shall be restored to the
                          metropolitan planning area at such time as the
                          metropolitan planning process is certified by the
                          Secretary.
                        ``(D) Review of certification.--In making
                    certification determinations under this paragraph, the
                    Secretary shall provide for public involvement
                    appropriate to the metropolitan area under review.

        ``(l) Report on Performance-based Planning Processes.--
                ``(1) In general.--The Secretary shall submit to Congress a
            report on the effectiveness of the performance-based planning
            processes of metropolitan planning organizations under this
            section, taking into consideration the requirements of this
            subsection
                ``(2) Report.--Not later than 5 years after the date of
            enactment of the MAP-21, the Secretary shall submit to Congress
            a report evaluating--
                        ``(A) the overall effectiveness of performance-based
                    planning as a tool for guiding transportation
                    investments;
                        ``(B) the effectiveness of the performance-based
                    planning process of each metropolitan planning
                    organization under this section;
                        ``(C) the extent to which metropolitan planning
                    organizations have achieved, or are currently making
                    substantial progress toward achieving, the performance
                    targets specified under this section and whether
                    metropolitan planning organizations are developing
                    meaningful performance targets; and
                        ``(D) the technical capacity of metropolitan
                    planning organizations that operate within a
                    metropolitan planning area of less than 200,000 and
                    their ability to carry out the requirements of this
                    section.
                ``(3) <<NOTE: Web posting.>> Publication.--The report under
            paragraph (2) shall be published or otherwise made available in
            electronically accessible formats and means, including on the
            Internet.

        ``(m) Abbreviated Plans for Certain Areas.--
                ``(1) In general.--Subject to paragraph (2), in the case of
            a metropolitan area not designated as a transportation
            management area under this section, the Secretary may provide

    [[Page 126 STAT. 514]]

            for the development of an abbreviated transportation plan and
            TIP for the metropolitan planning area that the Secretary
            determines is appropriate to achieve the purposes of this
            section, taking into account the complexity of transportation
            problems in the area.
                ``(2) Nonattainment areas.--The Secretary may not permit
            abbreviated plans or TIPs for a metropolitan area that is in
            nonattainment for ozone or carbon monoxide under the Clean Air
            Act (42 U.S.C. 7401 et seq.).

        ``(n) Additional Requirements for Certain Nonattainment Areas.--
                ``(1) In general.--Notwithstanding any other provisions of
            this title or chapter 53 of title, for transportation management
            areas classified as nonattainment for ozone or carbon monoxide
            pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal
            funds may not be advanced in such area for any highway project
            that will result in a significant increase in the carrying
            capacity for single-occupant vehicles unless the project is
            addressed through a congestion management process.
                ``(2) Applicability.--This subsection applies to a
            nonattainment area within the metropolitan planning area
            boundaries determined under subsection (e).

        ``(o) Limitation on Statutory Construction.--Nothing in this section
    shall be construed to confer on a metropolitan planning organization the
    authority to impose legal requirements on any transportation facility,
    provider, or project not eligible under this title or chapter 53 of
    title 49.
        ``(p) Funding.--Funds set aside under section 104(f) of this title
    or section 5305(g) of title 49 shall be available to carry out this
    section.
        ``(q) Continuation of Current Review Practice.--Since plans and TIPs
    described in this section are subject to a reasonable opportunity for
    public comment, since individual projects included in plans and TIPs are
    subject to review under the National Environmental Policy Act of 1969
    (42 U.S.C. 4321 et seq.), and since decisions by the Secretary
    concerning plans and TIPs described in this section have not been
    reviewed under that Act as of January 1, 1997, any decision by the
    Secretary concerning a plan or TIP described in this section shall not
    be considered to be a Federal action subject to review under that
    Act.''.
        (b) <<NOTE: Evaluation.>> Study on Metropolitan Planning Scenario
    Development.--
                (1) In general.--The Secretary shall evaluate the costs and
            benefits associated with metropolitan planning organizations
            developing multiple scenarios for consideration as a part of the
            development of their metropolitan transportation plan.
                (2) Inclusions.--The evaluation shall include an analysis of
            the technical and financial capacity of the metropolitan
            planning organization needed to develop scenarios described in
            paragraph (1).
    SEC. 1202. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

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

    [[Page 126 STAT. 515]]

    ``Sec. 135. Statewide and nonmetropolitan transportation planning

        ``(a) General Requirements.--
                ``(1) Development of plans and programs.--Subject to section
            134, to accomplish the objectives stated in section 134(a), each
            State shall develop a statewide transportation plan and a
            statewide transportation improvement program for all areas of
            the State.
                ``(2) Contents.--The statewide transportation plan and the
            transportation improvement program developed for each State
            shall provide for the development and integrated management and
            operation of transportation systems and facilities (including
            accessible pedestrian walkways and bicycle transportation
            facilities) that will function as an intermodal transportation
            system for the State and an integral part of an intermodal
            transportation system for the United States.
                ``(3) Process of development.--The process for developing
            the statewide plan and the transportation improvement program
            shall provide for consideration of all modes of transportation
            and the policies stated in section 134(a) and shall be
            continuing, cooperative, and comprehensive to the degree
            appropriate, based on the complexity of the transportation
            problems to be addressed.

        ``(b) Coordination With Metropolitan Planning; State Implementation
    Plan.--A State shall--
                ``(1) coordinate planning carried out under this section
            with the transportation planning activities carried out under
            section 134 for metropolitan areas of the State and with
            statewide trade and economic development planning activities and
            related multistate planning efforts; and
                ``(2) develop the transportation portion of the State
            implementation plan as required by the Clean Air Act (42 U.S.C.
            7401 et seq.).

        ``(c) Interstate Agreements.--
                ``(1) In general.--Two or more States may enter into
            agreements or compacts, not in conflict with any law of the
            United States, for cooperative efforts and mutual assistance in
            support of activities authorized under this section related to
            interstate areas and localities in the States and establishing
            authorities the States consider desirable for making the
            agreements and compacts effective.
                ``(2) Reservation of rights.--The right to alter, amend, or
            repeal interstate compacts entered into under this subsection is
            expressly reserved.

        ``(d) Scope of Planning Process.--
                ``(1) In general.--Each State shall carry out a statewide
            transportation planning process that provides for consideration
            and implementation of projects, strategies, and services that
            will--
                        ``(A) support the economic vitality of the United
                    States, the States, nonmetropolitan areas, and
                    metropolitan areas, especially by enabling global
                    competitiveness, productivity, and efficiency;
                        ``(B) increase the safety of the transportation
                    system for motorized and nonmotorized users;
                        ``(C) increase the security of the transportation
                    system for motorized and nonmotorized users;

    [[Page 126 STAT. 516]]

                        ``(D) increase the accessibility and mobility of
                    people and freight;
                        ``(E) protect and enhance the environment, promote
                    energy conservation, improve the quality of life, and
                    promote consistency between transportation improvements
                    and State and local planned growth and economic
                    development patterns;
                        ``(F) enhance the integration and connectivity of
                    the transportation system, across and between modes
                    throughout the State, for people and freight;
                        ``(G) promote efficient system management and
                    operation; and
                        ``(H) emphasize the preservation of the existing
                    transportation system.
                ``(2) Performance-based approach.--
                        ``(A) In general.--The statewide transportation
                    planning process shall provide for the establishment and
                    use of a performance-based approach to transportation
                    decisionmaking to support the national goals described
                    in section 150(b) of this title and in section 5301(c)
                    of title 49.
                        ``(B) Performance targets.--
                              ``(i) Surface transportation performance
                          targets.--
                                        ``(I) In general.--Each State shall
                                    establish performance targets that
                                    address the performance measures
                                    described in section 150(c), where
                                    applicable, to use in tracking progress
                                    towards attainment of critical outcomes
                                    for the State.
                                        ``(II) Coordination.--Selection of
                                    performance targets by a State shall be
                                    coordinated with the relevant
                                    metropolitan planning organizations to
                                    ensure consistency, to the maximum
                                    extent practicable.
                              ``(ii) Public transportation performance
                          targets.--In urbanized areas not represented by a
                          metropolitan planning organization, selection of
                          performance targets by a State shall be
                          coordinated, to the maximum extent practicable,
                          with providers of public transportation to ensure
                          consistency with sections 5326(c) and 5329(d) of
                          title 49.
                        ``(C) Integration of other performance-based
                    plans.--A State shall integrate into the statewide
                    transportation planning process, directly or by
                    reference, the goals, objectives, performance measures,
                    and targets described in this paragraph, in other State
                    transportation plans and transportation processes, as
                    well as any plans developed pursuant to chapter 53 of
                    title 49 by providers of public transportation in
                    urbanized areas not represented by a metropolitan
                    planning organization required as part of a performance-
                    based program.
                        ``(D) Use of performance measures and targets.--The
                    performance measures and targets established under this
                    paragraph shall be considered by a State when developing
                    policies, programs, and investment priorities reflected
                    in the statewide transportation plan and statewide
                    transportation improvement program.

    [[Page 126 STAT. 517]]

                ``(3) Failure to consider factors.--The failure to take into
            consideration the factors specified in paragraphs (1) and (2)
            shall not be subject to review by any court under this title,
            chapter 53 of title 49, subchapter II of chapter 5 of title 5,
            or chapter 7 of title 5 in any matter affecting a statewide
            transportation plan, a statewide transportation improvement
            program, a project or strategy, or the certification of a
            planning process.

        ``(e) Additional Requirements.--In carrying out planning under this
    section, each State shall, at a minimum--
                ``(1) with respect to nonmetropolitan areas, cooperate with
            affected local officials with responsibility for transportation
            or, if applicable, through regional transportation planning
            organizations described in subsection (m);
                ``(2) consider the concerns of Indian tribal governments and
            Federal land management agencies that have jurisdiction over
            land within the boundaries of the State; and
                ``(3) consider coordination of transportation plans, the
            transportation improvement program, and planning activities with
            related planning activities being carried out outside of
            metropolitan planning areas and between States.

        ``(f) Long-range Statewide Transportation Plan.--
                ``(1) Development.--Each State shall develop a long-range
            statewide transportation plan, with a minimum 20-year forecast
            period for all areas of the State, that provides for the
            development and implementation of the intermodal transportation
            system of the State.
                ``(2) Consultation with governments.--
                        ``(A) Metropolitan areas.--The statewide
                    transportation plan shall be developed for each
                    metropolitan area in the State in cooperation with the
                    metropolitan planning organization designated for the
                    metropolitan area under section 134.
                        ``(B) Nonmetropolitan areas.--
                              ``(i) In general.--With respect to
                          nonmetropolitan areas, the statewide
                          transportation plan shall be developed in
                          cooperation with affected nonmetropolitan
                          officials with responsibility for transportation
                          or, if applicable, through regional transportation
                          planning organizations described in subsection
                          (m).
                              ``(ii) Role of secretary.--The Secretary shall
                          not review or approve the consultation process in
                          each State.
                        ``(C) Indian tribal areas.--With respect to each
                    area of the State under the jurisdiction of an Indian
                    tribal government, the statewide transportation plan
                    shall be developed in consultation with the tribal
                    government and the Secretary of the Interior.
                        ``(D) Consultation, comparison, and consideration.--
                              ``(i) In general.--The long-range
                          transportation plan shall be developed, as
                          appropriate, in consultation with State, tribal,
                          and local agencies responsible for land use
                          management, natural resources, environmental
                          protection, conservation, and historic
                          preservation.

    [[Page 126 STAT. 518]]

                              ``(ii) Comparison and consideration.--
                          Consultation under clause (i) shall involve
                          comparison of transportation plans to State and
                          tribal conservation plans or maps, if available,
                          and comparison of transportation plans to
                          inventories of natural or historic resources, if
                          available.
                ``(3) Participation by interested parties.--
                        ``(A) In general.--In developing the statewide
                    transportation plan, the State shall provide to--
                              ``(i) nonmetropolitan local elected officials
                          or, if applicable, through regional transportation
                          planning organizations described in subsection
                          (m), an opportunity to participate in accordance
                          with subparagraph (B)(i); and
                              ``(ii) citizens, affected public agencies,
                          representatives of public transportation
                          employees, freight shippers, private providers of
                          transportation, representatives of users of public
                          transportation, representatives of users of
                          pedestrian walkways and bicycle transportation
                          facilities, representatives of the disabled,
                          providers of freight transportation services, and
                          other interested parties a reasonable opportunity
                          to comment on the proposed plan.
                        ``(B) Methods.--In carrying out subparagraph (A),
                    the State shall, to the maximum extent practicable--
                              ``(i) develop and document a consultative
                          process to carry out subparagraph (A)(i) that is
                          separate and discrete from the public involvement
                          process developed under clause (ii);
                              ``(ii) hold any public meetings at convenient
                          and accessible locations and times;
                              ``(iii) employ visualization techniques to
                          describe plans; and
                              ``(iv) make public information available in
                          electronically accessible format and means, such
                          as the World Wide Web, as appropriate to afford
                          reasonable opportunity for consideration of public
                          information under subparagraph (A).
                ``(4) Mitigation activities.--
                        ``(A) In general.--A long-range transportation plan
                    shall include a discussion of potential environmental
                    mitigation activities and potential areas to carry out
                    these activities, including activities that may have the
                    greatest potential to restore and maintain the
                    environmental functions affected by the plan.
                        ``(B) Consultation.--The discussion shall be
                    developed in consultation with Federal, State, and
                    tribal wildlife, land management, and regulatory
                    agencies.
                ``(5) Financial plan.--The statewide transportation plan may
            include--
                        ``(A) a financial plan that--
                              ``(i) demonstrates how the adopted statewide
                          transportation plan can be implemented;
                              ``(ii) indicates resources from public and
                          private sources that are reasonably expected to be
                          made available to carry out the plan; and

    [[Page 126 STAT. 519]]

                              ``(iii) recommends any additional financing
                          strategies for needed projects and programs; and
                        ``(B) for illustrative purposes, additional projects
                    that would be included in the adopted statewide
                    transportation plan if reasonable additional resources
                    beyond those identified in the financial plan were
                    available.
                ``(6) Selection of projects from illustrative list.--A State
            shall not be required to select any project from the
            illustrative list of additional projects included in the
            financial plan described in paragraph (5).
                ``(7) Performance-based approach.--The statewide
            transportation plan should include--
                        ``(A) a description of the performance measures and
                    performance targets used in assessing the performance of
                    the transportation system in accordance with subsection
                    (d)(2); and
                        ``(B) a system performance report and subsequent
                    updates evaluating the condition and performance of the
                    transportation system with respect to the performance
                    targets described in subsection (d)(2), including
                    progress achieved by the metropolitan planning
                    organization in meeting the performance targets in
                    comparison with system performance recorded in previous
                    reports;
                ``(8) Existing system.--The statewide transportation plan
            should include capital, operations and management strategies,
            investments, procedures, and other measures to ensure the
            preservation and most efficient use of the existing
            transportation system.
                ``(9) Publication of long-range transportation plans.--Each
            long-range transportation plan prepared by a State shall be
            published or otherwise made available, including (to the maximum
            extent practicable) in electronically accessible formats and
            means, such as the World Wide Web.

        ``(g) Statewide Transportation Improvement Program.--
                ``(1) Development.--
                        ``(A) In general.--Each State shall develop a
                    statewide transportation improvement program for all
                    areas of the State.
                        ``(B) <<NOTE: Time period. Deadline.>> Duration and
                    updating of program.--Each program developed under
                    subparagraph (A) shall cover a period of 4 years and
                    shall be updated every 4 years or more frequently if the
                    Governor of the State elects to update more frequently.
                ``(2) Consultation with governments.--
                        ``(A) Metropolitan areas.--With respect to each
                    metropolitan area in the State, the program shall be
                    developed in cooperation with the metropolitan planning
                    organization designated for the metropolitan area under
                    section 134.
                        ``(B) Nonmetropolitan areas.--
                              ``(i) In general.--With respect to each
                          nonmetropolitan area in the State, the program
                          shall be developed in consultation with affected
                          nonmetropolitan local officials with
                          responsibility for transportation or, if
                          applicable, through regional transportation
                          planning organizations described in subsection
                          (m).

    [[Page 126 STAT. 520]]

                              ``(ii) Role of secretary.--The Secretary shall
                          not review or approve the specific consultation
                          process in the State.
                        ``(C) Indian tribal areas.--With respect to each
                    area of the State under the jurisdiction of an Indian
                    tribal government, the program shall be developed in
                    consultation with the tribal government and the
                    Secretary of the Interior.
                ``(3) Participation by interested parties.--In developing
            the program, the State shall provide citizens, affected public
            agencies, representatives of public transportation employees,
            freight shippers, private providers of transportation, providers
            of freight transportation services, representatives of users of
            public transportation, representatives of users of pedestrian
            walkways and bicycle transportation facilities, representatives
            of the disabled, and other interested parties with a reasonable
            opportunity to comment on the proposed program.
                ``(4) Performance target achievement.--A statewide
            transportation improvement program shall include, to the maximum
            extent practicable, a discussion of the anticipated effect of
            the statewide transportation improvement program toward
            achieving the performance targets established in the statewide
            transportation plan, linking investment priorities to those
            performance targets.
                ``(5) Included projects.--
                        ``(A) In general.--A transportation improvement
                    program developed under this subsection for a State
                    shall include Federally supported surface transportation
                    expenditures within the boundaries of the State.
                        ``(B) Listing of projects.--
                              ``(i) In general.--An annual listing of
                          projects for which funds have been obligated for
                          the preceding year in each metropolitan planning
                          area shall be published or otherwise made
                          available by the cooperative effort of the State,
                          transit operator, and the metropolitan planning
                          organization for public review.
                              ``(ii) Funding categories.--The listing
                          described in clause (i) shall be consistent with
                          the funding categories identified in each
                          metropolitan transportation improvement program.
                        ``(C) Projects under chapter 2.--
                              ``(i) Regionally significant projects.--
                          Regionally significant projects proposed for
                          funding under chapter 2 shall be identified
                          individually in the transportation improvement
                          program.
                              ``(ii) Other projects.--Projects proposed for
                          funding under chapter 2 that are not determined to
                          be regionally significant shall be grouped in 1
                          line item or identified individually in the
                          transportation improvement program.
                        ``(D) Consistency with statewide transportation
                    plan.--Each project shall be--
                              ``(i) consistent with the statewide
                          transportation plan developed under this section
                          for the State;
                              ``(ii) identical to the project or phase of
                          the project as described in an approved
                          metropolitan transportation plan; and

    [[Page 126 STAT. 521]]

                              ``(iii) in conformance with the applicable
                          State air quality implementation plan developed
                          under the Clean Air Act (42 U.S.C. 7401 et seq.),
                          if the project is carried out in an area
                          designated as a nonattainment area for ozone,
                          particulate matter, or carbon monoxide under part
                          D of title I of that Act (42 U.S.C. 7501 et seq.).
                        ``(E) Requirement of anticipated full funding.--The
                    transportation improvement program shall include a
                    project, or an identified phase of a project, only if
                    full funding can reasonably be anticipated to be
                    available for the project within the time period
                    contemplated for completion of the project.
                        ``(F) Financial plan.--
                              ``(i) In general.--The transportation
                          improvement program may include a financial plan
                          that demonstrates how the approved transportation
                          improvement program can be implemented, indicates
                          resources from public and private sources that are
                          reasonably expected to be made available to carry
                          out the transportation improvement program, and
                          recommends any additional financing strategies for
                          needed projects and programs.
                              ``(ii) Additional projects.--The financial
                          plan may include, for illustrative purposes,
                          additional projects that would be included in the
                          adopted transportation plan if reasonable
                          additional resources beyond those identified in
                          the financial plan were available.
                        ``(G) Selection of projects from illustrative
                    list.--
                              ``(i) No required selection.--Notwithstanding
                          subparagraph (F), a State shall not be required to
                          select any project from the illustrative list of
                          additional projects included in the financial plan
                          under subparagraph (F).
                              ``(ii) Required action by the secretary.--
                          Action by the Secretary shall be required for a
                          State to select any project from the illustrative
                          list of additional projects included in the
                          financial plan under subparagraph (F) for
                          inclusion in an approved transportation
                          improvement program.
                        ``(H) Priorities.--The transportation improvement
                    program shall reflect the priorities for programming and
                    expenditures of funds, including transportation
                    enhancement activities, required by this title and
                    chapter 53 of title 49.
                ``(6) Project selection for areas of less than 50,000
            population.--
                        ``(A) In general.--Projects carried out in areas
                    with populations of less than 50,000 individuals shall
                    be selected, from the approved transportation
                    improvement program (excluding projects carried out on
                    the National Highway System and projects carried out
                    under the bridge program or the Interstate maintenance
                    program under this title or under sections 5310 and 5311
                    of title 49), by the State in cooperation with the
                    affected nonmetropolitan local

    [[Page 126 STAT. 522]]

                    officials with responsibility for transportation or, if
                    applicable, through regional transportation planning
                    organizations described in subsection (m).
                        ``(B) Other projects.--Projects carried out in areas
                    with populations of less than 50,000 individuals on the
                    National Highway System or under the bridge program or
                    the Interstate maintenance program under this title or
                    under sections 5310, 5311, 5316, and 5317 of title 49
                    shall be selected, from the approved statewide
                    transportation improvement program, by the State in
                    consultation with the affected nonmetropolitan local
                    officials with responsibility for transportation.
                ``(7) <<NOTE: Time period.>> Transportation improvement
            program approval.--Every 4 years, a transportation improvement
            program developed under this subsection shall be reviewed and
            approved by the Secretary if based on a current planning
            finding.
                ``(8) Planning finding.--A finding shall be made by the
            Secretary at least every 4 years that the transportation
            planning process through which statewide transportation plans
            and programs are developed is consistent with this section and
            section 134.
                ``(9) Modifications to project priority.--Notwithstanding
            any other provision of law, action by the Secretary shall not be
            required to advance a project included in the approved
            transportation improvement program in place of another project
            in the program.

        ``(h) Performance-based Planning Processes Evaluation.--
                ``(1) <<NOTE: Criteria.>> In general.--The Secretary shall
            establish criteria to evaluate the effectiveness of the
            performance-based planning processes of States, taking into
            consideration the following:
                        ``(A) The extent to which the State is making
                    progress toward achieving, the performance targets
                    described in subsection (d)(2), taking into account
                    whether the State developed appropriate performance
                    targets.
                        ``(B) The extent to which the State has made
                    transportation investments that are efficient and cost-
                    effective.
                        ``(C) The extent to which the State--
                              ``(i) has developed an investment process that
                          relies on public input and awareness to ensure
                          that investments are transparent and accountable;
                          and
                              ``(ii) provides reports allowing the public to
                          access the information being collected in a format
                          that allows the public to meaningfully assess the
                          performance of the State.
                ``(2) Report.--
                        ``(A) In general.--Not later than 5 years after the
                    date of enactment of the MAP-21, the Secretary shall
                    submit to Congress a report evaluating--
                              ``(i) the overall effectiveness of
                          performance-based planning as a tool for guiding
                          transportation investments; and
                              ``(ii) the effectiveness of the performance-
                          based planning process of each State.
                        ``(B) <<NOTE: Web posting.>> Publication.--The
                    report under subparagraph (A) shall be published or
                    otherwise made available in electronically accessible
                    formats and means, including on the Internet.

    [[Page 126 STAT. 523]]

        ``(i) Funding.--Funds apportioned under section 104(b)(5) of this
    title and set aside under section 5305(g) of title 49 shall be available
    to carry out this section.
        ``(j) Treatment of Certain State Laws as Congestion Management
    Processes.--For purposes of this section and section 134, and sections
    5303 and 5304 of title 49, State laws, rules, or regulations pertaining
    to congestion management systems or programs may constitute the
    congestion management process under this section and section 134, and
    sections 5303 and 5304 of title 49, if the Secretary finds that the
    State laws, rules, or regulations are consistent with, and fulfill the
    intent of, the purposes of this section and section 134 and sections
    5303 and 5304 of title 49, as appropriate.
        ``(k) Continuation of Current Review Practice.--Since the statewide
    transportation plan and the transportation improvement program described
    in this section are subject to a reasonable opportunity for public
    comment, since individual projects included in the statewide
    transportation plans and the transportation improvement program are
    subject to review under the National Environmental Policy Act of 1969
    (42 U.S.C. 4321 et seq.), and since decisions by the Secretary
    concerning statewide transportation plans or the transportation
    improvement program described in this section have not been reviewed
    under that Act as of January 1, 1997, any decision by the Secretary
    concerning a metropolitan or statewide transportation plan or the
    transportation improvement program described in this section shall not
    be considered to be a Federal action subject to review under the
    National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
        ``(l) <<NOTE: Guidance.>> Schedule for Implementation.--The
    Secretary shall issue guidance on a schedule for implementation of the
    changes made by this section, taking into consideration the established
    planning update cycle for States. The Secretary shall not require a
    State to deviate from its established planning update cycle to implement
    changes made by this section. <<NOTE: Deadline.>> States shall reflect
    changes made to their transportation plan or transportation improvement
    program updates not later than 2 years after the date of issuance of
    guidance by the Secretary under this subsection.

        ``(m) Designation of Regional Transportation Planning
    Organizations.--
                ``(1) In general.--To carry out the transportation planning
            process required by this section, a State may establish and
            designate regional transportation planning organizations to
            enhance the planning, coordination, and implementation of
            statewide strategic long-range transportation plans and
            transportation improvement programs, with an emphasis on
            addressing the needs of nonmetropolitan areas of the State.
                ``(2) Structure.--A regional transportation planning
            organization shall be established as a multijurisdictional
            organization of nonmetropolitan local officials or their
            designees who volunteer for such organization and
            representatives of local transportation systems who volunteer
            for such organization.
                ``(3) Requirements.--A regional transportation planning
            organization shall establish, at a minimum--
                        ``(A) a policy committee, the majority of which
                    shall consist of nonmetropolitan local officials, or
                    their designees, and, as appropriate, additional
                    representatives from the

    [[Page 126 STAT. 524]]

                    State, private business, transportation service
                    providers, economic development practitioners, and the
                    public in the region; and
                        ``(B) a fiscal and administrative agent, such as an
                    existing regional planning and development organization,
                    to provide professional planning, management, and
                    administrative support.
                ``(4) Duties.--The duties of a regional transportation
            planning organization shall include--
                        ``(A) developing and maintaining, in cooperation
                    with the State, regional long-range multimodal
                    transportation plans;
                        ``(B) developing a regional transportation
                    improvement program for consideration by the State;
                        ``(C) fostering the coordination of local planning,
                    land use, and economic development plans with State,
                    regional, and local transportation plans and programs;
                        ``(D) providing technical assistance to local
                    officials;
                        ``(E) participating in national, multistate, and
                    State policy and planning development processes to
                    ensure the regional and local input of nonmetropolitan
                    areas;
                        ``(F) providing a forum for public participation in
                    the statewide and regional transportation planning
                    processes;
                        ``(G) considering and sharing plans and programs
                    with neighboring regional transportation planning
                    organizations, metropolitan planning organizations, and,
                    where appropriate, tribal organizations; and
                        ``(H) conducting other duties, as necessary, to
                    support and enhance the statewide planning process under
                    subsection (d).
                ``(5) States without regional transportation planning
            organizations.--If a State chooses not to establish or designate
            a regional transportation planning organization, the State shall
            consult with affected nonmetropolitan local officials to
            determine projects that may be of regional significance.''.

        (b) Conforming Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by striking the item relating to section
    135 and inserting the following:

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

    SEC. 1203. NATIONAL GOALS AND PERFORMANCE MANAGEMENT MEASURES.

        (a) In General.--Section 150 of title 23, United States Code, is
    amended to read as follows:
    ``Sec. 150. National goals and performance management measures

        ``(a) Declaration of Policy.--Performance management will transform
    the Federal-aid highway program and provide a means to the most
    efficient investment of Federal transportation funds by refocusing on
    national transportation goals, increasing the accountability and
    transparency of the Federal-aid highway program, and improving project
    decisionmaking through performance-based planning and programming.
        ``(b) National Goals.--It is in the interest of the United States to
    focus the Federal-aid highway program on the following national goals:

    [[Page 126 STAT. 525]]

                ``(1) Safety.--To achieve a significant reduction in traffic
            fatalities and serious injuries on all public roads.
                ``(2) Infrastructure condition.--To maintain the highway
            infrastructure asset system in a state of good repair.
                ``(3) Congestion reduction.--To achieve a significant
            reduction in congestion on the National Highway System.
                ``(4) System reliability.--To improve the efficiency of the
            surface transportation system.
                ``(5) Freight movement and economic vitality.--To improve
            the national freight network, strengthen the ability of rural
            communities to access national and international trade markets,
            and support regional economic development.
                ``(6) Environmental sustainability.--To enhance the
            performance of the transportation system while protecting and
            enhancing the natural environment.
                ``(7) Reduced project delivery delays.--To reduce project
            costs, promote jobs and the economy, and expedite the movement
            of people and goods by accelerating project completion through
            eliminating delays in the project development and delivery
            process, including reducing regulatory burdens and improving
            agencies' work practices.

        ``(c) Establishment of Performance Measures.--
                ``(1) <<NOTE: Deadline. Regulations.>> In general.--Not
            later than 18 months after the date of enactment of the MAP-21,
            the Secretary, in consultation with State departments of
            transportation, metropolitan planning organizations, and other
            stakeholders, shall promulgate a rulemaking that establishes
            performance measures and standards.
                ``(2) Administration.--In carrying out paragraph (1), the
            Secretary shall--
                        ``(A) provide States, metropolitan planning
                    organizations, and other stakeholders not less than 90
                    days to comment on any regulation proposed by the
                    Secretary under that paragraph;
                        ``(B) take into consideration any comments relating
                    to a proposed regulation received during that comment
                    period; and
                        ``(C) limit performance measures only to those
                    described in this subsection.
                ``(3) National highway performance program.--
                        ``(A) In general.--Subject to subparagraph (B), for
                    the purpose of carrying out section 119, the Secretary
                    shall establish--
                              ``(i) <<NOTE: Standards.>> minimum standards
                          for States to use in developing and operating
                          bridge and pavement management systems;
                              ``(ii) measures for States to use to assess--
                                        ``(I) the condition of pavements on
                                    the Interstate system;
                                        ``(II) the condition of pavements on
                                    the National Highway System (excluding
                                    the Interstate);
                                        ``(III) the condition of bridges on
                                    the National Highway System;
                                        ``(IV) the performance of the
                                    Interstate System; and

    [[Page 126 STAT. 526]]

                                        ``(V) the performance of the
                                    National Highway System (excluding the
                                    Interstate System);
                              ``(iii) minimum levels for the condition of
                          pavement on the Interstate System, only for the
                          purposes of carrying out section 119(f)(1); and
                              ``(iv) the data elements that are necessary to
                          collect and maintain standardized data to carry
                          out a performance-based approach.
                        ``(B) Regions.--In establishing minimum condition
                    levels under subparagraph (A)(iii), if the Secretary
                    determines that various geographic regions of the United
                    States experience disparate factors contributing to the
                    condition of pavement on the Interstate System in those
                    regions, the Secretary may establish different minimum
                    levels for each region;
                ``(4) Highway safety improvement program.--For the purpose
            of carrying out section 148, the Secretary shall establish
            measures for States to use to assess--
                        ``(A) serious injuries and fatalities per vehicle
                    mile traveled; and
                        ``(B) the number of serious injuries and fatalities.
                ``(5) Congestion mitigation and air quality program.--For
            the purpose of carrying out section 149, the Secretary shall
            establish measures for States to use to assess--
                        ``(A) traffic congestion; and
                        ``(B) on-road mobile source emissions.
                ``(6) National freight movement.--The Secretary shall
            establish measures for States to use to assess freight movement
            on the Interstate System.

        ``(d) <<NOTE: Deadline.>> Establishment of Performance Targets.--
                ``(1) In general.--Not later than 1 year after the Secretary
            has promulgated the final rulemaking under subsection (c), each
            State shall set performance targets that reflect the measures
            identified in paragraphs (3), (4), (5), and (6) of subsection
            (c).
                ``(2) Different approaches for urban and rural areas.--In
            the development and implementation of any performance target, a
            State may, as appropriate, provide for different performance
            targets for urbanized and rural areas.

        ``(e) Reporting on Performance Targets.--Not later than 4 years
    after the date of enactment of the MAP-21 and biennially thereafter, a
    State shall submit to the Secretary a report that describes--
                ``(1) the condition and performance of the National Highway
            System in the State;
                ``(2) the effectiveness of the investment strategy document
            in the State asset management plan for the National Highway
            System;
                ``(3) progress in achieving performance targets identified
            under subsection (d); and
                ``(4) the ways in which the State is addressing congestion
            at freight bottlenecks, including those identified in the
            National Freight Strategic Plan, within the State.''.

        (b) Conforming Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by striking the item relating to section
    150 and inserting the following:

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

    [[Page 126 STAT. 527]]

                  Subtitle C--Acceleration of Project Delivery

    SEC. 1301. <<NOTE: 23 USC 101 note.>> DECLARATION OF POLICY AND
                              PROJECT DELIVERY INITIATIVE.

        (a) In General.--It is the policy of the United States that--
                (1) it is in the national interest for the Department, State
            departments of transportation, transit agencies, and all other
            recipients of Federal transportation funds--
                        (A) to accelerate project delivery and reduce costs;
                    and
                        (B) to ensure that the planning, design,
                    engineering, construction, and financing of
                    transportation projects is done in an efficient and
                    effective manner, promoting accountability for public
                    investments and encouraging greater private sector
                    involvement in project financing and delivery while
                    enhancing safety and protecting the environment;
                (2) delay in the delivery of transportation projects
            increases project costs, harms the economy of the United States,
            and impedes the travel of the people of the United States and
            the shipment of goods for the conduct of commerce; and
                (3) the Secretary shall identify and promote the deployment
            of innovation aimed at reducing the time and money required to
            deliver transportation projects while enhancing safety and
            protecting the environment.

        (b) Project Delivery Initiative.--
                (1) In general.--To advance the policy described in
            subsection (a), the Secretary shall carry out a project delivery
            initiative under this section.
                (2) Purposes.--The purposes of the project delivery
            initiative shall be--
                        (A) to develop and advance the use of best practices
                    to accelerate project delivery and reduce costs across
                    all modes of transportation and expedite the deployment
                    of technology and innovation;
                        (B) to implement provisions of law designed to
                    accelerate project delivery; and
                        (C) to select eligible projects for applying
                    experimental features to test innovative project
                    delivery techniques.
                (3) Advancing the use of best practices.--
                        (A) In general.--In carrying out the initiative
                    under this section, the Secretary shall identify and
                    advance best practices to reduce delivery time and
                    project costs, from planning through construction, for
                    transportation projects and programs of projects
                    regardless of mode and project size.
                        (B) Administration.--To advance the use of best
                    practices, the Secretary shall--
                              (i) engage interested parties, affected
                          communities, resource agencies, and other
                          stakeholders to gather information regarding
                          opportunities for accelerating project delivery
                          and reducing costs;
                              (ii) establish a clearinghouse for the
                          collection, documentation, and advancement of
                          existing and new innovative approaches and best
                          practices;

    [[Page 126 STAT. 528]]

                              (iii) disseminate information through a
                          variety of means to transportation stakeholders on
                          new innovative approaches and best practices; and
                              (iv) provide technical assistance to assist
                          transportation stakeholders in the use of
                          flexibility authority to resolve project delays
                          and accelerate project delivery if feasible.
                (4) Implementation of accelerated project delivery.--The
            Secretary shall ensure that the provisions of this subtitle
            designed to accelerate project delivery are fully implemented,
            including--
                        (A) expanding eligibility of early acquisition of
                    property prior to completion of environmental review
                    under the National Environmental Policy Act of 1969 (42
                    U.S.C. 4321 et seq.);
                        (B) allowing the use of the construction manager or
                    general contractor method of contracting in the Federal-
                    aid highway system; and
                        (C) establishing a demonstration program to
                    streamline the relocation process by permitting a lump-
                    sum payment for acquisition and relocation if elected by
                    the displaced occupant.

        (c) Expedited Project Delivery.--Section 101(b) of title 23, United
    States Code, is amended by adding at the end the following:
                ``(4) Expedited project delivery.--
                        ``(A) In general.--Congress declares that it is in
                    the national interest to expedite the delivery of
                    surface transportation projects by substantially
                    reducing the average length of the environmental review
                    process.
                        ``(B) Policy of the united states.--Accordingly, it
                    is the policy of the United States that--
                              ``(i) the Secretary shall have the lead role
                          among Federal agencies in carrying out the
                          environmental review process for surface
                          transportation projects;
                              ``(ii) each Federal agency shall cooperate
                          with the Secretary to expedite the environmental
                          review process for surface transportation
                          projects;
                              ``(iii) project sponsors shall not be
                          prohibited from carrying out preconstruction
                          project development activities concurrently with
                          the environmental review process;
                              ``(iv) programmatic approaches shall be used
                          to reduce the need for project-by-project reviews
                          and decisions by Federal agencies; and
                              ``(v) the Secretary shall identify
                          opportunities for project sponsors to assume
                          responsibilities of the Secretary where such
                          responsibilities can be assumed in a manner that
                          protects public health, the environment, and
                          public participation.''.
    SEC. 1302. ADVANCE ACQUISITION OF REAL PROPERTY INTERESTS.

        (a) Real Property Interests.--Section 108 of title 23, United States
    Code, is amended--
                (1) by striking ``real property'' each place it appears and
            inserting ``real property interests'';
                (2) by striking ``right-of-way'' each place it appears and
            inserting ``real property interest''; and

    [[Page 126 STAT. 529]]

                (3) by striking ``rights-of-way'' each place it appears and
            inserting ``real property interests''.

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

        (c) Federally Funded Acquisition of Real Property Interests.--
    Section 108 of title 23, United States Code, is amended by adding at the
    end the following:
        ``(d) Federally Funded Early Acquisition of Real Property
    Interests.--
                ``(1) Definition of acquisition of a real property
            interest.--In this subsection, the term `acquisition of a real
            property interest' includes the acquisition of--
                        ``(A) any interest in land;
                        ``(B) a contractual right to acquire any interest in
                    land; or
                        ``(C) any other similar action to acquire or
                    preserve rights-of-way for a transportation facility.
                ``(2) Authorization.--The Secretary may authorize the use of
            funds apportioned to a State under this title for the
            acquisition of a real property interest by a State.
                ``(3) State certification.--A State requesting Federal
            funding for an acquisition of a real property interest shall
            certify in writing, with concurrence by the Secretary, that--
                        ``(A) the State has authority to acquire the real
                    property interest under State law; and
                        ``(B) the acquisition of the real property
                    interest--
                              ``(i) is for a transportation purpose;
                              ``(ii) will not cause any significant adverse
                          environmental impact;

    [[Page 126 STAT. 530]]

                              ``(iii) will not limit the choice of
                          reasonable alternatives for the project or
                          otherwise influence the decision of the Secretary
                          on any approval required for the project;
                              ``(iv) does not prevent the lead agency from
                          making an impartial decision as to whether to
                          accept an alternative that is being considered in
                          the environmental review process;
                              ``(v) is consistent with the State
                          transportation planning process under section 135;
                              ``(vi) complies with other applicable Federal
                          laws (including regulations);
                              ``(vii) will be acquired through negotiation,
                          without the threat of condemnation; and
                              ``(viii) will not result in a reduction or
                          elimination of benefits or assistance to a
                          displaced person required by the Uniform
                          Relocation Assistance and Real Property
                          Acquisition Policies Act of 1970 (42 U.S.C. 4601
                          et seq.) and title VI of the Civil Rights Act of
                          1964 (42 U.S.C. 2000d et seq.).
                ``(4) Environmental compliance.--
                        ``(A) In general.--Before authorizing Federal
                    funding for an acquisition of a real property interest,
                    the Secretary shall complete the review process under
                    the National Environmental Policy Act of 1969 (42 U.S.C.
                    4321 et seq.) with respect to the acquisition of the
                    real property interest.
                        ``(B) Independent utility.--The acquisition of a
                    real property interest--
                              ``(i) shall be treated as having independent
                          utility for purposes of the review process under
                          the National Environmental Policy Act of 1969 (42
                          U.S.C. 4321 et seq.); and
                              ``(ii) shall not limit consideration of
                          alternatives for future transportation
                          improvements with respect to the real property
                          interest.
                ``(5) Programming.--
                        ``(A) In general.--The acquisition of a real
                    property interest for which Federal funding is requested
                    shall be included as a project in an applicable
                    transportation improvement program under sections 134
                    and 135 and sections 5303 and 5304 of title 49.
                        ``(B) Acquisition project.--The acquisition project
                    may consist of the acquisition of a specific parcel, a
                    portion of a transportation corridor, or an entire
                    transportation corridor.
                ``(6) Development.--Real property interests acquired under
            this subsection may not be developed in anticipation of a
            project until all required environmental reviews for the project
            have been completed.
                ``(7) Reimbursement.--If Federal-aid reimbursement is made
            for real property interests acquired early under this section
            and the real property interests are not subsequently
            incorporated into a project eligible for surface transportation
            funds within the time allowed by subsection (a)(2), the
            Secretary shall offset the amount reimbursed against funds
            apportioned to the State.
                ``(8) Other requirements and conditions.--

    [[Page 126 STAT. 531]]

                        ``(A) Applicable law.--The acquisition of a real
                    property interest shall be carried out in compliance
                    with all requirements applicable to the acquisition of
                    real property interests for federally funded
                    transportation projects.
                        ``(B) Additional conditions.--The Secretary may
                    establish such other conditions or restrictions on
                    acquisitions under this subsection as the Secretary
                    determines to be appropriate.''.
    SEC. 1303. LETTING OF CONTRACTS.

        (a) Efficiencies in Contracting.--Section 112(b) of title 23, United
    States Code, is amended by adding at the end the following:
                ``(4) Method of contracting.--
                        ``(A) In general.--
                              ``(i) 2-phase contract.--A contracting agency
                          may award a 2-phase contract to a construction
                          manager or general contractor for preconstruction
                          and construction services.
                              ``(ii) Preconstruction services phase.--In the
                          preconstruction services phase of a contract under
                          this paragraph, the contractor shall provide the
                          contracting agency with advice for scheduling,
                          work sequencing, cost engineering,
                          constructability, cost estimating, and risk
                          identification.
                              ``(iii) Agreement.--Prior to the start of the
                          construction services phase, the contracting
                          agency and the contractor may agree to a price and
                          other factors specified in regulation for the
                          construction of the project or a portion of the
                          project.
                              ``(iv) Construction phase.--If an agreement is
                          reached under clause (iii), the contractor shall
                          be responsible for the construction of the project
                          or portion of the project at the negotiated price
                          and in compliance with the other factors specified
                          in the agreement.
                        ``(B) Selection.--A contract shall be awarded to a
                    contractor under this paragraph using a competitive
                    selection process based on qualifications, experience,
                    best value, or any other combination of factors
                    considered appropriate by the contracting agency.
                        ``(C) Timing.--
                              ``(i) Relationship to nepa process.--Prior to
                          the completion of the environmental review process
                          required under section 102 of the National
                          Environmental Policy Act of 1969 (42 U.S.C. 4332),
                          a contracting agency may--
                                        ``(I) issue requests for proposals;
                                        ``(II) proceed with the award of a
                                    contract for preconstruction services
                                    under subparagraph (A)(ii); and
                                        ``(III) issue notices to proceed
                                    with a preliminary design and any work
                                    related to preliminary design, to the
                                    extent that those actions do not limit
                                    any reasonable range of alternatives.
                              ``(ii) Construction services phase.--A
                          contracting agency shall not proceed with the
                          award of the construction services phase of a
                          contract under subparagraph (A)(iv) and shall not
                          proceed, or permit

    [[Page 126 STAT. 532]]

                          any consultant or contractor to proceed, with
                          final design or construction until completion of
                          the environmental review process required under
                          section 102 of the National Environmental Policy
                          Act of 1969 (42 U.S.C. 4332).
                              ``(iii) Approval requirement.--Prior to
                          authorizing construction activities, the Secretary
                          shall approve--
                                        ``(I) the price estimate of the
                                    contracting agency for the entire
                                    project; and
                                        ``(II) any price agreement with the
                                    general contractor for the project or a
                                    portion of the project.
                              ``(iv) Design activities.--
                                        ``(I) In general.--A contracting
                                    agency may proceed, at the expense of
                                    the contracting agency, with design
                                    activities at any level of detail for a
                                    project before completion of the review
                                    process required for the project under
                                    the National Environmental Policy Act of
                                    1969 (42 U.S.C. 4321 et seq.) without
                                    affecting subsequent approvals required
                                    for the project.
                                        ``(II) Reimbursement.--Design
                                    activities carried out under subclause
                                    (I) shall be eligible for Federal
                                    reimbursement as a project expense in
                                    accordance with the requirements under
                                    section 109(r).
                              ``(v) Termination provision.--The Secretary
                          shall require a contract to include an appropriate
                          termination provision in the event that a no-build
                          alternative is selected.''.

        (b) <<NOTE: 23 USC 112 note.>> Regulations.--The Secretary shall
    promulgate such regulations as are necessary to carry out the amendment
    made by subsection (a).

        (c) <<NOTE: 23 USC 112 note.>> Effect on Experimental Program.--
    Nothing in this section or the amendment made by this section affects
    the authority to carry out, or any project carried out under, any
    experimental program concerning construction manager risk that is being
    carried out by the Secretary as of the date of enactment of this Act.
    SEC. 1304. INNOVATIVE PROJECT DELIVERY METHODS.

        (a) <<NOTE: 23 USC 101 note.>> Declaration of Policy.--
                (1) In general.--Congress declares that it is in the
            national interest to promote the use of innovative technologies
            and practices that increase the efficiency of construction of,
            improve the safety of, and extend the service life of highways
            and bridges.
                (2) Inclusions.--The innovative technologies and practices
            described in paragraph (1) include state-of-the-art intelligent
            transportation system technologies, elevated performance
            standards, and new highway construction business practices that
            improve highway safety and quality, accelerate project delivery,
            and reduce congestion related to highway construction.

        (b) Federal Share.--Section 120(c) of title 23, United States Code,
    is amended by adding at the end the following:
                ``(3) Innovative project delivery.--
                        ``(A) In general.--Except as provided in
                    subparagraph (C), the Federal share payable on account
                    of a project,

    [[Page 126 STAT. 533]]

                    program, or activity carried out with funds apportioned
                    under paragraph (1), (2), or (5) of section 104(b) may,
                    at the discretion of the State, be up to 100 percent for
                    any such project, program, or activity that the
                    Secretary determines--
                              ``(i) contains innovative project delivery
                          methods that improve work zone safety for
                          motorists or workers and the quality of the
                          facility;
                              ``(ii) contains innovative technologies,
                          manufacturing processes, financing, or contracting
                          methods that improve the quality of, extend the
                          service life of, or decrease the long-term costs
                          of maintaining highways and bridges;
                              ``(iii) accelerates project delivery while
                          complying with other applicable Federal laws
                          (including regulations) and not causing any
                          significant adverse environmental impact; or
                              ``(iv) reduces congestion related to highway
                          construction.
                        ``(B) Examples.--Projects, programs, and activities
                    described in subparagraph (A) may include the use of--
                              ``(i) prefabricated bridge elements and
                          systems and other technologies to reduce bridge
                          construction time;
                              ``(ii) innovative construction equipment,
                          materials, or techniques, including the use of in-
                          place recycling technology and digital 3-
                          dimensional modeling technologies;
                              ``(iii) innovative contracting methods,
                          including the design-build and the construction
                          manager-general contractor contracting methods;
                              ``(iv) intelligent compaction equipment; or
                              ``(v) contractual provisions that offer a
                          contractor an incentive payment for early
                          completion of the project, program, or activity,
                          subject to the condition that the incentives are
                          accounted for in the financial plan of the
                          project, when applicable.
                        ``(C) Limitations.--
                              ``(i) In general.--In each fiscal year, a
                          State may use the authority under subparagraph (A)
                          for up to 10 percent of the combined
                          apportionments of the State under paragraphs (1),
                          (2), and (5) of section 104(b).
                              ``(ii) Federal share increase.--The Federal
                          share payable on account of a project, program, or
                          activity described in subparagraph (A) may be
                          increased by up to 5 percent of the total project
                          cost.''.
    SEC. 1305. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT
                              DECISIONMAKING.

        (a) Flexibility.--Section 139(b) of title 23, United States Code, is
    amended--
                (1) in paragraph (2) by inserting ``, and any requirements
            established under this section may be satisfied,'' after
            ``exercised''; and
                (2) by adding at the end the following:
                ``(3) Programmatic compliance.--

    [[Page 126 STAT. 534]]

                        ``(A) <<NOTE: Regulations.>> In general.--The
                    Secretary shall initiate a rulemaking to allow for the
                    use of programmatic approaches to conduct environmental
                    reviews that--
                              ``(i) eliminate repetitive discussions of the
                          same issues;
                              ``(ii) focus on the actual issues ripe for
                          analyses at each level of review; and
                              ``(iii) are consistent with--
                                        ``(I) the National Environmental
                                    Policy Act of 1969 (42 U.S.C. 4321 et
                                    seq.); and
                                        ``(II) other applicable laws.
                        ``(B) Requirements.--In carrying out subparagraph
                    (A), the Secretary shall--
                              ``(i) <<NOTE: Consultation.>> before
                          initiating the rulemaking under that subparagraph,
                          consult with relevant Federal agencies and State
                          resource agencies, State departments of
                          transportation, Indian tribes, and the public on
                          the appropriate use and scope of the programmatic
                          approaches;
                              ``(ii) emphasize the importance of
                          collaboration among relevant Federal agencies,
                          State agencies, and Indian tribes in undertaking
                          programmatic reviews, especially with respect to
                          including reviews with a broad geographic scope;
                              ``(iii) ensure that the programmatic reviews--
                                        ``(I) promote transparency,
                                    including of the analyses and data used
                                    in the environmental reviews, the
                                    treatment of any deferred issues raised
                                    by agencies or the public, and the
                                    temporal and special scales to be used
                                    to analyze such issues;
                                        ``(II) use accurate and timely
                                    information in reviews, including--
                                                ``(aa) criteria for
                                            determining the general duration
                                            of the usefulness of the review;
                                            and
                                                ``(bb) the timeline for
                                            updating any out-of-date review;
                                        ``(III) describe--
                                                ``(aa) the relationship
                                            between programmatic analysis
                                            and future tiered analysis; and
                                                ``(bb) the role of the
                                            public in the creation of future
                                            tiered analysis; and
                                        ``(IV) are available to other
                                    relevant Federal and State agencies,
                                    Indian tribes, and the public;
                              ``(iv) <<NOTE: Time period. Public notice and
                          comments.>> allow not fewer than 60 days of public
                          notice and comment on any proposed rule; and
                              ``(v) address any comments received under
                          clause (iv).''.

        (b) Federal Lead Agency.--Section 139(c) of title 23, United States
    Code, is amended--
                (1) in paragraph (1)--
                        (A) by striking ``The Department of Transportation''
                    and inserting the following:
                        ``(A) In general.--The Department of
                    Transportation''; and
                        (B) by adding at the end the following:

    [[Page 126 STAT. 535]]

                        ``(B) Modal administration.--If the project requires
                    approval from more than 1 modal administration within
                    the Department, the Secretary may designate a single
                    modal administration to serve as the Federal lead agency
                    for the Department in the environmental review process
                    for the project.''.

        (c) Participating Agencies.--Section 139(d) of title 23, United
    States Code, is amended--
                (1) by striking paragraph (4) and inserting the following:
                ``(4) Effect of designation.--
                        ``(A) Requirement.--A participating agency shall
                    comply with the requirements of this section.
                        ``(B) Implication.--Designation as a participating
                    agency under this subsection shall not imply that the
                    participating agency--
                              ``(i) supports a proposed project; or
                              ``(ii) has any jurisdiction over, or special
                          expertise with respect to evaluation of, the
                          project.''; and
                (2) by striking paragraph (7) and inserting the following:
                ``(7) Concurrent reviews.--Each participating agency and
            cooperating agency shall--
                        ``(A) carry out the obligations of that agency under
                    other applicable law concurrently, and in conjunction,
                    with the review required under the National
                    Environmental Policy Act of 1969 (42 U.S.C. 4321 et
                    seq.), unless doing so would impair the ability of the
                    Federal agency to conduct needed analysis or otherwise
                    carry out those obligations; and
                        ``(B) formulate and implement administrative,
                    policy, and procedural mechanisms to enable the agency
                    to ensure completion of the environmental review process
                    in a timely, coordinated, and environmentally
                    responsible manner.''.

        (d) Project Initiation.--Section 139(e) of title 23, United States
    Code, is amended--
                (1) by striking ``The project sponsor'' and inserting the
            following:
                ``(1) In general.--The project sponsor''; and
                (2) by adding at the end the following:
                ``(2) <<NOTE: Federal Register, publication.>> Submission of
            documents.--The project sponsor may satisfy the requirement
            under paragraph (1) by submitting to the Secretary any relevant
            documents containing the information described in that
            paragraph, including a draft notice for publication in the
            Federal Register announcing the preparation of an environmental
            review for the project.''.

        (e) Coordination and Scheduling.--Section 139(g)(1)(B)(i) of title
    23, United States Code, is amended by inserting ``and the concurrence
    of'' after ``consultation with''.
    SEC. 1306. ACCELERATED DECISIONMAKING.

        Section 139(h) of title 23, United States Code, is amended by
    striking paragraph (4) and inserting the following:
                ``(4) Interim decision on achieving accelerated
            decisionmaking.--
                        ``(A) <<NOTE: Deadline.>> In general.--Not later
                    than 30 days after the close of the public comment
                    period on a draft environmental impact statement, the
                    Secretary may convene a meeting with the project
                    sponsor, lead agency, resource agencies,

    [[Page 126 STAT. 536]]

                    and any relevant State agencies to ensure that all
                    parties are on schedule to meet deadlines for decisions
                    to be made regarding the project.
                        ``(B) Deadlines.--The deadlines referred to in
                    subparagraph (A) shall be those established under
                    subsection (g), or any other deadlines established by
                    the lead agency, in consultation with the project
                    sponsor and other relevant agencies.
                        ``(C) Failure to assure.--If the relevant agencies
                    cannot provide reasonable assurances that the deadlines
                    described in subparagraph (B) will be met, the Secretary
                    may initiate the issue resolution and referral process
                    described under paragraph (5) and before the completion
                    of the record of decision.
                ``(5) Accelerated issue resolution and referral.--
                        ``(A) Agency issue resolution meeting.--
                              ``(i) In general.--A Federal agency of
                          jurisdiction, project sponsor, or the Governor of
                          a State in which a project is located may request
                          an issue resolution meeting to be conducted by the
                          lead agency.
                              ``(ii) Action by lead agency.--The lead agency
                          shall convene an issue resolution meeting under
                          clause (i) with the relevant participating
                          agencies and the project sponsor, including the
                          Governor only if the meeting was requested by the
                          Governor, to resolve issues that could--
                                        ``(I) delay completion of the
                                    environmental review process; or
                                        ``(II) result in denial of any
                                    approvals required for the project under
                                    applicable laws.
                              ``(iii) <<NOTE: Deadline.>> Date.--A meeting
                          requested under this subparagraph shall be held by
                          not later than 21 days after the date of receipt
                          of the request for the meeting, unless the lead
                          agency determines that there is good cause to
                          extend the time for the meeting.
                              ``(iv) Notification.--On receipt of a request
                          for a meeting under this subparagraph, the lead
                          agency shall notify all relevant participating
                          agencies of the request, including the issue to be
                          resolved, and the date for the meeting.
                              ``(v) Disputes.--If a relevant participating
                          agency with jurisdiction over an approval required
                          for a project under applicable law determines that
                          the relevant information necessary to resolve the
                          issue has not been obtained and could not have
                          been obtained within a reasonable time, but the
                          lead agency disagrees, the resolution of the
                          dispute shall be forwarded to the heads of the
                          relevant agencies for resolution.
                              ``(vi) Convention by lead agency.--A lead
                          agency may convene an issue resolution meeting
                          under this subsection at any time without the
                          request of the Federal agency of jurisdiction,
                          project sponsor, or the Governor of a State.
                        ``(B) Elevation of issue resolution.--
                              ``(i) <<NOTE: Deadline. Notification.>> In
                          general.--If issue resolution is not achieved by
                          not later than 30 days after the date of a
                          relevant meeting under subparagraph (A), the

    [[Page 126 STAT. 537]]

                          Secretary shall notify the lead agency, the heads
                          of the relevant participating agencies, and the
                          project sponsor (including the Governor only if
                          the initial issue resolution meeting request came
                          from the Governor) that an issue resolution
                          meeting will be convened.

                          ``(ii) <<NOTE: Meeting. Deadline.>> Requirements.--
                          The Secretary shall identify the issues to be
                          addressed at the meeting and convene the meeting
                          not later than 30 days after the date of issuance
                          of the notice.
                        ``(C) Referral of issue resolution.--
                              ``(i) Referral to council on environmental
                          quality.--
                                        ``(I) In general.--If resolution is
                                    not achieved by not later than 30 days
                                    after the date of an issue resolution
                                    meeting under subparagraph (B), the
                                    Secretary shall refer the matter to the
                                    Council on Environmental Quality.
                                        ``(II) Meeting.--Not later than 30
                                    days after the date of receipt of a
                                    referral from the Secretary under
                                    subclause (I), the Council on
                                    Environmental Quality shall hold an
                                    issue resolution meeting with the lead
                                    agency, the heads of relevant
                                    participating agencies, and the project
                                    sponsor (including the Governor only if
                                    an initial request for an issue
                                    resolution meeting came from the
                                    Governor).
                              ``(ii) Referral to the president.--If a
                          resolution is not achieved by not later than 30
                          days after the date of the meeting convened by the
                          Council on Environmental Quality under clause
                          (i)(II), the Secretary shall refer the matter
                          directly to the President.
                ``(6) Financial penalty provisions.--
                        ``(A) In general.--A Federal agency of jurisdiction
                    over an approval required for a project under applicable
                    laws shall complete any required approval on an
                    expeditious basis using the shortest existing applicable
                    process.
                        ``(B) Failure to decide.--
                              ``(i) In general.--If an agency described in
                          subparagraph (A) fails to render a decision under
                          any Federal law relating to a project that
                          requires the preparation of an environmental
                          impact statement or environmental assessment,
                          including the issuance or denial of a permit,
                          license, or other approval by the date described
                          in clause (ii), an amount of funding equal to the
                          amounts specified in subclause (I) or (II) shall
                          be rescinded from the applicable office of the
                          head of the agency, or equivalent office to which
                          the authority for rendering the decision has been
                          delegated by law by not later than 1 day after the
                          applicable date under clause (ii), and once each
                          week thereafter until a final decision is
                          rendered, subject to subparagraph (C)--
                                        ``(I) $20,000 for any project for
                                    which an annual financial plan under
                                    section 106(i) is required; or
                                        ``(II) $10,000 for any other project
                                    requiring preparation of an
                                    environmental assessment or
                                    environmental impact statement.

    [[Page 126 STAT. 538]]

                              ``(ii) <<NOTE: Time period.>> Description of
                          date.--The date referred to in clause (i) is the
                          later of--
                                        ``(I) the date that is 180 days
                                    after the date on which an application
                                    for the permit, license, or approval is
                                    complete; and
                                        ``(II) the date that is 180 days
                                    after the date on which the Federal lead
                                    agency issues a decision on the project
                                    under the National Environmental Policy
                                    Act of 1969 (42 U.S.C. 4321 et seq.).
                        ``(C) Limitations.--
                              ``(i) In general.--No rescission of funds
                          under subparagraph (B) relating to an individual
                          project shall exceed, in any fiscal year, an
                          amount equal to 2.5 percent of the funds made
                          available for the applicable agency office.
                              ``(ii) <<NOTE: Deadline.>> Failure to
                          decide.--The total amount rescinded in a fiscal
                          year as a result of a failure by an agency to make
                          a decision by an applicable deadline shall not
                          exceed an amount equal to 7 percent of the funds
                          made available for the applicable agency office
                          for that fiscal year.
                        ``(D) No fault of agency.--A rescission of funds
                    under this paragraph shall not be made if the lead
                    agency for the project certifies that--
                              ``(i) the agency has not received necessary
                          information or approvals from another entity, such
                          as the project sponsor, in a manner that affects
                          the ability of the agency to meet any requirements
                          under State, local, or Federal law; or
                              ``(ii) significant new information or
                          circumstances, including a major modification to
                          an aspect of the project, requires additional
                          analysis for the agency to make a decision on the
                          project application.
                        ``(E) Limitation.--The Federal agency with
                    jurisdiction for the decision from which funds are
                    rescinded pursuant to this paragraph shall not reprogram
                    funds to the office of the head of the agency, or
                    equivalent office, to reimburse that office for the loss
                    of the funds.
                        ``(F) Audits.--In any fiscal year in which any funds
                    are rescinded from a Federal agency pursuant to this
                    paragraph, the Inspector General of that agency shall--
                              ``(i) conduct an audit to assess compliance
                          with the requirements of this paragraph; and
                              ``(ii) not later than 120 days after the end
                          of the fiscal year during which the rescission
                          occurred, submit to the Committee on Environment
                          and Public Works of the Senate and the Committee
                          on Transportation and Infrastructure of the House
                          of Representatives a report describing the reasons
                          why the transfers were levied, including
                          allocations of resources.
                        ``(G) Effect of paragraph.--Nothing in this
                    paragraph affects or limits the application of, or
                    obligation to comply with, any Federal, State, local, or
                    tribal law.
                ``(7) Expedient decisions and reviews.--To ensure that
            Federal environmental decisions and reviews are expeditiously
            made--

    [[Page 126 STAT. 539]]

                        ``(A) adequate resources made available under this
                    title shall be devoted to ensuring that applicable
                    environmental reviews under the National Environmental
                    Policy Act of 1969 (42 U.S.C. 4321 et seq.) are
                    completed on an expeditious basis and that the shortest
                    existing applicable process under that Act is
                    implemented; and
                        ``(B) <<NOTE: President. Deadline. Reports.>> the
                    President shall submit to the Committee on
                    Transportation and Infrastructure of the House of
                    Representatives and the Committee on Environment and
                    Public Works of the Senate, not less frequently than
                    once every 120 days after the date of enactment of the
                    MAP-21, a report on the status and progress of the
                    following projects and activities funded under this
                    title with respect to compliance with applicable
                    requirements under the National Environmental Policy Act
                    of 1969 (42 U.S.C. 4321 et seq.):
                              ``(i) Projects and activities required to
                          prepare an annual financial plan under section
                          106(i).
                              ``(ii) A sample of not less than 5 percent of
                          the projects requiring preparation of an
                          environmental impact statement or environmental
                          assessment in each State.''.
    SEC. 1307. ASSISTANCE TO AFFECTED FEDERAL AND STATE AGENCIES.

        Section 139(j) of title 23, United States Code, is amended by adding
    at the end the following:
                ``(6) Memorandum of understanding.--Prior to providing funds
            approved by the Secretary for dedicated staffing at an affected
            Federal agency under paragraphs (1) and (2), the affected
            Federal agency and the State agency shall enter into a
            memorandum of understanding that establishes the projects and
            priorities to be addressed by the use of the funds.''.
    SEC. 1308. LIMITATIONS ON CLAIMS.

        Section 139(l) of title 23, United States Code, is amended--
                (1) in paragraph (1) by striking ``180 days'' and inserting
            ``150 days''; and
                (2) in paragraph (2) by striking ``180 days'' and inserting
            ``150 days''.
    SEC. 1309. ACCELERATING COMPLETION OF COMPLEX PROJECTS WITHIN 4
                              YEARS.

        Section 139 of title 23, United States Code, is amended by adding at
    the end the following:
        ``(m) Enhanced Technical Assistance and Accelerated Project
    Completion.--
                ``(1) Definition of covered project.--In this subsection,
            the term `covered project' means a project--
                        ``(A) that has an ongoing environmental impact
                    statement under the National Environmental Policy Act of
                    1969 (42 U.S.C. 4321 et seq.); and
                        ``(B) for which at least 2 years, beginning on the
                    date on which a notice of intent is issued, have elapsed
                    without the issuance of a record of decision.
                ``(2) Technical assistance.--At the request of a project
            sponsor or the Governor of a State in which a project is
            located, the Secretary shall provide additional technical
            assistance to

    [[Page 126 STAT. 540]]

            resolve for a covered project any outstanding issues and project
            delay, including by--
                        ``(A) providing additional staff, training, and
                    expertise;
                        ``(B) facilitating interagency coordination;
                        ``(C) promoting more efficient collaboration; and
                        ``(D) supplying specialized onsite assistance.
                ``(3) Scope of work.--
                        ``(A) In general.--In providing technical assistance
                    for a covered project under this subsection, the
                    Secretary shall establish a scope of work that describes
                    the actions that the Secretary will take to resolve the
                    outstanding issues and project delays, including
                    establishing a schedule under subparagraph (B).
                        ``(B) Schedule.--
                              ``(i) <<NOTE: Deadline.>> In general.--The
                          Secretary shall establish and meet a schedule for
                          the completion of any permit, approval, review, or
                          study, required for the covered project by the
                          date that is not later than 4 years after the date
                          on which a notice of intent for the covered
                          project is issued.
                              ``(ii) Inclusions.--The schedule under clause
                          (i) shall--
                                        ``(I) comply with all applicable
                                    laws;
                                        ``(II) require the concurrence of
                                    the Council on Environmental Quality and
                                    each participating agency for the
                                    project with the State in which the
                                    project is located or the project
                                    sponsor, as applicable; and
                                        ``(III) reflect any new information
                                    that becomes available and any changes
                                    in circumstances that may result in new
                                    significant impacts that could affect
                                    the timeline for completion of any
                                    permit, approval, review, or study
                                    required for the covered project.
                ``(4) Consultation.--In providing technical assistance for a
            covered project under this subsection, the Secretary shall
            consult, if appropriate, with resource and participating
            agencies on all methods available to resolve the outstanding
            issues and project delays for a covered project as expeditiously
            as possible.
                ``(5) Enforcement.--
                        ``(A) In general.--All provisions of this section
                    shall apply to this subsection, including the financial
                    penalty provisions under subsection (h)(6).
                        ``(B) Restriction.--If the Secretary enforces this
                    subsection under subsection (h)(6), the Secretary may
                    use a date included in a schedule under paragraph (3)(B)
                    that is created pursuant to and is in compliance with
                    this subsection in lieu of the dates under subsection
                    (h)(6)(B)(ii).''.
    SEC. 1310. INTEGRATION OF PLANNING AND ENVIRONMENTAL REVIEW.

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

    [[Page 126 STAT. 541]]

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

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

        ``(b) Adoption of Planning Products for Use in NEPA Proceedings.--
                ``(1) In general.--Subject to the conditions set forth in
            subsection (d), the Federal lead agency for a project may adopt
            and use a planning product in proceedings relating to any class
            of action in the environmental review process of the project.
                ``(2) Identification.--When the Federal lead agency makes a
            determination to adopt and use a planning product, the Federal
            lead agency shall identify those agencies that participated in
            the development of the planning products.
                ``(3) Partial adoption of planning products.--The Federal
            lead agency may adopt a planning product under paragraph (1) in
            its entirety or may select portions for adoption.
                ``(4) Timing.--A determination under paragraph (1) with
            respect to the adoption of a planning product may be made at the
            time the lead agencies decide the appropriate scope of
            environmental review for the project but may also occur later in
            the environmental review process, as appropriate.

        ``(c) Applicability.--
                ``(1) Planning decisions.--Planning decisions that may be
            adopted pursuant to this section include--
                        ``(A) whether tolling, private financial assistance,
                    or other special financial measures are necessary to
                    implement the project;
                        ``(B) a decision with respect to modal choice,
                    including a decision to implement corridor or subarea
                    study recommendations to advance different modal
                    solutions as separate projects with independent utility;
                        ``(C) a basic description of the environmental
                    setting;

    [[Page 126 STAT. 542]]

                        ``(D) a decision with respect to methodologies for
                    analysis; and
                        ``(E) an identification of programmatic level
                    mitigation for potential impacts that the Federal lead
                    agency, in consultation with Federal, State, local, and
                    tribal resource agencies, determines are most
                    effectively addressed at a regional or national program
                    level, including--
                              ``(i) system-level measures to avoid,
                          minimize, or mitigate impacts of proposed
                          transportation investments on environmental
                          resources, including regional ecosystem and water
                          resources; and
                              ``(ii) potential mitigation activities,
                          locations, and investments.
                ``(2) Planning analyses.--Planning analyses that may be
            adopted pursuant to this section include studies with respect
            to--
                        ``(A) travel demands;
                        ``(B) regional development and growth;
                        ``(C) local land use, growth management, and
                    development;
                        ``(D) population and employment;
                        ``(E) natural and built environmental conditions;
                        ``(F) environmental resources and environmentally
                    sensitive areas;
                        ``(G) potential environmental effects, including the
                    identification of resources of concern and potential
                    cumulative effects on those resources, identified as a
                    result of a statewide or regional cumulative effects
                    assessment; and
                        ``(H) mitigation needs for a proposed action, or for
                    programmatic level mitigation, for potential effects
                    that the Federal lead agency determines are most
                    effectively addressed at a regional or national program
                    level.

        ``(d) Conditions.--Adoption and use of a planning product under this
    section is subject to a determination by the Federal lead agency, with
    the concurrence of other participating agencies with relevant expertise
    and project sponsors as appropriate, and with an opportunity for public
    notice and comment and consideration of those comments by the Federal
    lead agency, that the following conditions have been met:
                ``(1) The planning product was developed through a planning
            process conducted pursuant to applicable Federal law.
                ``(2) The planning product was developed by engaging in
            active consultation with appropriate Federal and State resource
            agencies and Indian tribes.
                ``(3) The planning process included broad multidisciplinary
            consideration of systems-level or corridor-wide transportation
            needs and potential effects, including effects on the human and
            natural environment.
                ``(4) During the planning process, notice was provided
            through publication or other means to Federal, State, local, and
            tribal governments that might have an interest in the proposed
            project, and to members of the general public, of the planning
            products that the planning process might produce and that might
            be relied on during any subsequent environmental review process,
            and such entities have been provided an appropriate opportunity
            to participate in the planning process leading to such planning
            product.

    [[Page 126 STAT. 543]]

                ``(5) After initiation of the environmental review process,
            but prior to determining whether to rely on and use the planning
            product, the lead Federal agency has made documentation relating
            to the planning product available to Federal, State, local, and
            tribal governments that may have an interest in the proposed
            action, and to members of the general public, and has considered
            any resulting comments.
                ``(6) There is no significant new information or new
            circumstance that has a reasonable likelihood of affecting the
            continued validity or appropriateness of the planning product.
                ``(7) The planning product has a rational basis and is based
            on reliable and reasonably current data and reasonable and
            scientifically acceptable methodologies.
                ``(8) The planning product is documented in sufficient
            detail to support the decision or the results of the analysis
            and to meet requirements for use of the information in the
            environmental review process.
                ``(9) The planning product is appropriate for adoption and
            use in the environmental review process for the project.
                ``(10) The planning product was approved not later than 5
            years prior to date on which the information is adopted pursuant
            to this section.

        ``(e) Effect of Adoption.--Any planning product adopted by the
    Federal lead agency in accordance with this section may be incorporated
    directly into an environmental review process document or other
    environmental document and may be relied upon and used by other Federal
    agencies in carrying out reviews of the project.
        ``(f) Rules of Construction.--
                ``(1) In general.--This section shall not be construed to
            make the environmental review process applicable to the
            transportation planning process conducted under this title and
            chapter 53 of title 49.
                ``(2) Transportation planning activities.--Initiation of the
            environmental review process as a part of, or concurrently with,
            transportation planning activities does not subject
            transportation plans and programs to the environmental review
            process.
                ``(3) Planning products.--This section shall not be
            construed to affect the use of planning products in the
            environmental review process pursuant to other authorities under
            any other provision of law or to restrict the initiation of the
            environmental review process during planning.''.

        (b) Technical and Conforming Amendment.--The analysis for chapter 1
    of title 23, United States Code (as amended by section 1115(b)), is
    amended by adding at end the following:

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

    SEC. 1311. DEVELOPMENT OF PROGRAMMATIC MITIGATION PLANS.

        (a) In General.--Chapter 1 of title 23, United States Code (as
    amended by section 1310(a)), is amended by adding at the end the
    following:
    ``Sec. 169. Development of programmatic mitigation plans

        ``(a) In General.--As part of the statewide or metropolitan
    transportation planning process, a State or metropolitan planning
    organization may develop 1 or more programmatic mitigation plans

    [[Page 126 STAT. 544]]

    to address the potential environmental impacts of future transportation
    projects.
        ``(b) Scope.--
                ``(1) Scale.--A programmatic mitigation plan may be
            developed on a regional, ecosystem, watershed, or statewide
            scale.
                ``(2) Resources.--The plan may encompass multiple
            environmental resources within a defined geographic area or may
            focus on a specific resource, such as aquatic resources,
            parkland, or wildlife habitat.
                ``(3) Project impacts.--The plan may address impacts from
            all projects in a defined geographic area or may focus on a
            specific type of project.
                ``(4) Consultation.--The scope of the plan shall be
            determined by the State or metropolitan planning organization,
            as appropriate, in consultation with the agency or agencies with
            jurisdiction over the resources being addressed in the
            mitigation plan.

        ``(c) Contents.--A programmatic mitigation plan may include--
                ``(1) an assessment of the condition of environmental
            resources in the geographic area covered by the plan, including
            an assessment of recent trends and any potential threats to
            those resources;
                ``(2) an assessment of potential opportunities to improve
            the overall quality of environmental resources in the geographic
            area covered by the plan, through strategic mitigation for
            impacts of transportation projects;
                ``(3) standard measures for mitigating certain types of
            impacts;
                ``(4) parameters for determining appropriate mitigation for
            certain types of impacts, such as mitigation ratios or criteria
            for determining appropriate mitigation sites;
                ``(5) adaptive management procedures, such as protocols that
            involve monitoring predicted impacts over time and adjusting
            mitigation measures in response to information gathered through
            the monitoring; and
                ``(6) acknowledgment of specific statutory or regulatory
            requirements that must be satisfied when determining appropriate
            mitigation for certain types of resources.

        ``(d) Process.--Before adopting a programmatic mitigation plan, a
    State or metropolitan planning organization shall--
                ``(1) <<NOTE: Consultation.>> consult with each agency with
            jurisdiction over the environmental resources considered in the
            programmatic mitigation plan;
                ``(2) make a draft of the plan available for review and
            comment by applicable environmental resource agencies and the
            public;
                ``(3) consider any comments received from such agencies and
            the public on the draft plan; and
                ``(4) address such comments in the final plan.

        ``(e) Integration With Other Plans.--A programmatic mitigation plan
    may be integrated with other plans, including watershed plans, ecosystem
    plans, species recovery plans, growth management plans, and land use
    plans.
        ``(f) Consideration in Project Development and Permitting.--If a
    programmatic mitigation plan has been developed pursuant to this
    section, any Federal agency responsible for environmental reviews,
    permits, or approvals for a transportation project

    [[Page 126 STAT. 545]]

    may use the recommendations in a programmatic mitigation plan when
    carrying out the responsibilities under the National Environmental
    Policy Act of 1969 (42 U.S.C. 4321 et seq.).
        ``(g) Preservation of Existing Authorities.--Nothing in this section
    limits the use of programmatic approaches to reviews under the National
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.
        (b) Technical and Conforming Amendment.--The analysis for chapter 1
    of title 23, United States Code (as amended by section 1309(b)), is
    amended by adding at the end the following:

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

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

        Section 326 of title 23, United States Code, is amended--
                (1) in subsection (a) by adding at the end the following:
                ``(4) Preservation of flexibility.--The Secretary shall not
            require a State, as a condition of assuming responsibility under
            this section, to forego project delivery methods that are
            otherwise permissible for highway projects.'';
                (2) by striking subsection (d) and inserting the following:

        ``(d) Termination.--
                ``(1) Termination by the secretary.--The Secretary may
            terminate any assumption of responsibility under a memorandum of
            understanding on a determination that the State is not
            adequately carrying out the responsibilities assigned to the
            State.
                ``(2) <<NOTE: Notice. Deadline.>> Termination by the
            state.--The State may terminate the participation of the State
            in the program at any time by providing to the Secretary a
            notice not later than the date that is 90 days before the date
            of termination, and subject to such terms and conditions as the
            Secretary may provide.''; and
                (3) by adding at the end the following:

        ``(f) Legal Fees.--A State assuming the responsibilities of the
    Secretary under this section for a specific project may use funds
    apportioned to the State under section 104(b)(2) for attorney's fees
    directly attributable to eligible activities associated with the
    project.''.
    SEC. 1313. SURFACE TRANSPORTATION PROJECT DELIVERY PROGRAM.

        (a) Program Name.--Section 327 of title 23, United States Code, is
    amended--
                (1) in the section heading by striking ``pilot''; and
                (2) in subsection (a)(1) by striking ``pilot''.

        (b) Assumption of Responsibility.--Section 327(a)(2) of title 23,
    United States Code, is amended--
                (1) in subparagraph (B)--
                        (A) in clause (i) by striking ``but''; and
                        (B) by striking clause (ii) and inserting the
                    following:
                              ``(ii) at the request of the State, the
                          Secretary may also assign to the State, and the
                          State may assume, the responsibilities of the
                          Secretary with respect to 1 or more railroad,
                          public transportation, or multimodal projects
                          within the State under the National Environmental
                          Policy Act of 1969 (42 U.S.C. 4321 et seq.);

    [[Page 126 STAT. 546]]

                              ``(iii) in a State that has assumed the
                          responsibilities of the Secretary under clause
                          (ii), a recipient of assistance under chapter 53
                          of title 49 may request that the Secretary
                          maintain the responsibilities of the Secretary
                          with respect to 1 or more public transportation
                          projects within the State under the National
                          Environmental Policy Act of 1969 (42 U.S.C. 13
                          4321 et seq.); but
                              ``(iv) the Secretary may not assign--
                                        ``(I) any responsibility imposed on
                                    the Secretary by section 134 or 135 or
                                    section 5303 or 5304 of title 49; or
                                        ``(II) responsibility for any
                                    conformity determination required under
                                    section 176 of the Clean Air Act (42
                                    U.S.C. 7506).''; and
                (2) by adding at the end the following:
                        ``(F) Preservation of flexibility.--The Secretary
                    may not require a State, as a condition of participation
                    in the program, to forego project delivery methods that
                    are otherwise permissible for projects.
                        ``(G) Legal fees.--A State assuming the
                    responsibilities of the Secretary under this section for
                    a specific project may use funds apportioned to the
                    State under section 104(b)(2) for attorneys' fees
                    directly attributable to eligible activities associated
                    with the project.''.

        (c) State Participation.--Section 327(b) of title 23, United States
    Code, is amended--
                (1) by striking paragraph (1) and inserting the following:
                ``(1) Participating states.--All States are eligible to
            participate in the program.''; and
                (2) in paragraph (2) by striking ``date of enactment of this
            section, the Secretary shall promulgate'' and inserting ``date
            on which amendments to this section by the MAP-21 take effect,
            the Secretary shall amend, as appropriate,''.

        (d) Written Agreement.--Section 327(c) of title 23, United States
    Code, is amended--
                (1) in paragraph (3)(D) by striking the period at the end
            and inserting a semicolon; and
                (2) by adding at the end the following:
                ``(4) require the State to provide to the Secretary any
            information the Secretary considers necessary to ensure that the
            State is adequately carrying out the responsibilities assigned
            to the State;
                ``(5) have a term of not more than 5 years; and
                ``(6) be renewable.''.

        (e) Conforming Amendment.--Section 327(e) of title 23, United States
    Code, is amended by striking ``subsection (i)'' and inserting
    ``subsection (j)''.
        (f) Audits.--Section 327(g)(1)(B) of title 23, United States Code,
    is amended by striking ``subsequent year'' and inserting ``of the third
    and fourth years''.
        (g) Monitoring.--Section 327 of title 23, United States Code, is
    amended--
                (1) by redesignating subsections (h) and (i) as subsections
            (i) and (j), respectively; and
                (2) by inserting after subsection (g) the following:

    [[Page 126 STAT. 547]]

        ``(h) Monitoring.--After the fourth year of the participation of a
    State in the program, the Secretary shall monitor compliance by the
    State with the written agreement, including the provision by the State
    of financial resources to carry out the written agreement.''.
        (h) Termination.--Section 327(j) of title 23, United States Code (as
    so redesignated), is amended to read as follows:
        ``(j) Termination.--
                ``(1) Termination by the secretary.--The Secretary may
            terminate the participation of any State in the program if--
                        ``(A) the Secretary determines that the State is not
                    adequately carrying out the responsibilities assigned to
                    the State;
                        ``(B) the Secretary provides to the State--
                              ``(i) <<NOTE: Notification.>> notification of
                          the determination of noncompliance; and
                              ``(ii) <<NOTE: Time period.>> a period of at
                          least 30 days during which to take such corrective
                          action as the Secretary determines is necessary to
                          comply with the applicable agreement; and
                        ``(C) the State, after the notification and period
                    provided under subparagraph (B), fails to take
                    satisfactory corrective action, as determined by the
                    Secretary.
                ``(2) <<NOTE: Notice. Deadline.>> Termination by the
            state.--The State may terminate the participation of the State
            in the program at any time by providing to the Secretary a
            notice by not later than the date that is 90 days before the
            date of termination, and subject to such terms and conditions as
            the Secretary may provide.''.

        (i) Clerical Amendment.--The item relating to section 327 in the
    analysis of title 23, United States Code, is amended to read as follows:

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

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

        (a) In General.--Section 304 of title 49, United States Code, is
    amended to read as follows:
    ``Sec. 304. Application of categorical exclusions for multimodal
                    projects

        ``(a) Definitions.--In this section, the following definitions
    apply:
                ``(1) Cooperating authority.--The term `cooperating
            authority' means a Department of Transportation operating
            authority that is not the lead authority with respect to a
            project.
                ``(2) Lead authority.--The term `lead authority' means a
            Department of Transportation operating administration or
            secretarial office that--
                        ``(A) is the lead authority over a proposed
                    multimodal project; and
                        ``(B) has determined that the components of the
                    project that fall under the modal expertise of the lead
                    authority--
                              ``(i) satisfy the conditions for a categorical
                          exclusion under implementing regulations or
                          procedures of the lead authority under the
                          National Environmental Policy Act of 1969 (42
                          U.S.C. 4321 et seq.); and

    [[Page 126 STAT. 548]]

                              ``(ii) do not require the preparation of an
                          environmental assessment or environmental impact
                          statement under that Act.
                ``(3) Multimodal project.--The term `multimodal project' has
            the meaning given the term in section 139(a) of title 23.

        ``(b) Exercise of Authorities.--The authorities granted in this
    section may be exercised for a multimodal project, class of projects, or
    program of projects that are carried out under this title.
        ``(c) Application of Categorical Exclusions for Multimodal
    Projects.--In considering the environmental impacts of a proposed
    multimodal project, a lead authority may apply a categorical exclusion
    designated under the implementing regulations or procedures of a
    cooperating authority for other components of the project, subject to
    the conditions that--
                ``(1) the multimodal project is funded under 1 grant
            agreement administered by the lead authority;
                ``(2) the multimodal project has components that require the
            expertise of a cooperating authority to assess the environmental
            impacts of the components;
                ``(3) the component of the project to be covered by the
            categorical exclusion of the cooperating authority has
            independent utility;
                ``(4) the cooperating authority, in consultation with the
            lead authority--
                        ``(A) follows implementing regulations or procedures
                    under the National Environmental Policy Act of 1969 (42
                    U.S.C. 4321 et seq.); and
                        ``(B) determines that a categorical exclusion under
                    that Act applies to the components; and
                ``(5) the lead authority has determined that--
                        ``(A) the project, using the categorical exclusions
                    of the lead authority and each applicable cooperating
                    authority, does not individually or cumulatively have a
                    significant impact on the environment; and
                        ``(B) extraordinary circumstances do not exist that
                    merit additional analysis and documentation in an
                    environmental impact statement or environmental
                    assessment required under the National Environmental
                    Policy Act of 1969 (42 U.S.C. 4321 et seq.).

        ``(d) Modal Cooperation.--
                ``(1) In general.--A cooperating authority shall provide
            modal expertise to the lead authority on such aspects of the
            multimodal project in which the cooperating authority has
            expertise.
                ``(2) Use of categorical exclusion.--In a case described in
            paragraph (1), the 1 or more categorical exclusions of a
            cooperating authority may be applied by the lead authority once
            the cooperating authority reviews the project on behalf of the
            lead authority and determines the project satisfies the
            conditions for a categorical exclusion under the implementing
            regulations or procedures of the cooperating authority under the
            National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
            seq.) and this section.''.

    [[Page 126 STAT. 549]]

        (b) Conforming Amendment.--The item relating to section 304 in the
    analysis for title 49, United States Code, is amended to read as
    follows:

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

    SEC. 1315. <<NOTE: 23 USC 109 note.>> CATEGORICAL EXCLUSIONS IN
                              EMERGENCIES.

        (a) <<NOTE: Deadline. Notice. Regulations.>> In General.--Not later
    than 30 days after the date of enactment of this Act, for the repair or
    reconstruction of any road, highway, or bridge that is in operation or
    under construction when damaged by an emergency declared by the Governor
    of the State and concurred in by the Secretary, or for a disaster or
    emergency declared by the President pursuant to the Robert T. Stafford
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
    the Secretary shall publish a notice of proposed rulemaking to treat any
    such repair or reconstruction activity as a class of action
    categorically excluded from the requirements relating to environmental
    assessments or environmental impact statements under section 1508.4 of
    title 40, Code of Federal Regulations, and section 771.117 of title 23,
    Code of Federal Regulations (as in effect on the date of enactment of
    this Act) if such repair or reconstruction activity is--
                (1) in the same location with the same capacity, dimensions,
            and design as the original road, highway, or bridge as before
            the declaration described in this section; and
                (2) commenced within a 2-year period beginning on the date
            of a declaration described in this section.

        (b) Rulemaking.--
                (1) In general.--The Secretary shall ensure that the
            rulemaking helps to conserve Federal resources and protects
            public safety and health by providing for periodic evaluations
            to determine if reasonable alternatives exist to roads,
            highways, or bridges that repeatedly require repair and
            reconstruction activities.
                (2) Reasonable alternatives.--The reasonable alternatives
            described in paragraph (1) include actions that could reduce the
            need for Federal funds to be expended on such repair and
            reconstruction activities, better protect public safety and
            health and the environment, and meet transportation needs as
            described in relevant and applicable Federal, State, local and
            tribal plans.
    SEC. 1316. <<NOTE: 23 USC 109 note.>> CATEGORICAL EXCLUSIONS FOR
                              PROJECTS WITHIN THE RIGHT-OF-WAY.

        (a) <<NOTE: Deadlines.>> In General.--The Secretary shall--
                (1) not later than 180 days after the date of enactment of
            this Act, designate any project (as defined in section 101(a) of
            title 23, United States Code) within an existing operational
            right-of-way as an action categorically excluded from the
            requirements relating to environmental assessments or
            environmental impact statements under section 1508.4 of title
            40, Code of Federal Regulations, and section 771.117(c) of title
            23, Code of Federal Regulations; and
                (2) not later than 150 days after the date of enactment of
            this Act, promulgate regulations to carry out paragraph (1).

        (b) Definition of an Operational Right-of-way.--In this section, the
    term ``operational right-of-way'' means all real property

    [[Page 126 STAT. 550]]

    interests acquired for the construction, operation, or mitigation of a
    project (as defined in section 101(a) of title 23, United States Code),
    including the locations of the roadway, bridges, interchanges, culverts,
    drainage, clear zone, traffic control signage, landscaping, and any rest
    areas with direct access to a controlled access highway.
    SEC. 1317. <<NOTE: Deadline. 23 USC 109 note.>> CATEGORICAL
                              EXCLUSION FOR PROJECTS OF LIMITED
                              FEDERAL ASSISTANCE.

        Not later than 180 days after the date of enactment of this Act, the
    Secretary shall--*
                (1) designate as an action categorically excluded from the
            requirements relating to environmental assessments or
            environmental impact statements under section 1508.4 of title
            40, Code of Federal Regulations, and section 771.117(c) of title
            23, Code of Federal Regulations, any project--
                        (A) that receives less than $5,000,000 of Federal
                    funds; or
                        (B) with a total estimated cost of not more than
                    $30,000,000 and Federal funds comprising less than 15
                    percent of the total estimated project cost; and
                (2) not later than 150 days after the date of enactment of
            this Act, promulgate regulations to carry out paragraph (1).
    SEC. 1318. <<NOTE: 23 USC 109 note.>> PROGRAMMATIC AGREEMENTS AND
                              ADDITIONAL CATEGORICAL EXCLUSIONS.

        (a) <<NOTE: Deadline.>> In General.--Not later than 60 days after
    the date of enactment of this Act, the Secretary shall--
                (1) <<NOTE: Survey.>> survey the use by the Department of
            categorical exclusions in transportation projects since 2005;
                (2) <<NOTE: Publication.>> publish a review of the survey
            that includes a description of--
                        (A) the types of actions categorically excluded; and
                        (B) any requests previously received by the
                    Secretary for new categorical exclusions; and
                (3) solicit requests from State departments of
            transportation, transit authorities, metropolitan planning
            organizations, or other government agencies for new categorical
            exclusions.

        (b) <<NOTE: Deadline.>> New Categorical Exclusions.--Not later than
    120 days after the date of enactment of this Act, the Secretary shall
    publish a notice of proposed rulemaking to propose new categorical
    exclusions received by the Secretary under subsection (a), to the extent
    that the categorical exclusions meet the criteria for a categorical
    exclusion under section 1508.4 of title 40, Code of Federal Regulations,
    and section 771.117(a) of title 23, Code of Federal Regulations (as
    those regulations are in effect on the date of the notice).

        (c) <<NOTE: Regulations.>> Additional Actions.--The Secretary shall
    issue a proposed rulemaking to move the following types of actions from
    subsection (d) of section 771.117 of title 23, Code of Federal
    Regulations (as in effect on the date of enactment of this Act), to
    subsection (c) of that section, to the extent that such movement
    complies with the criteria for a categorical exclusion under section
    1508.4 of title 40, Code of Federal Regulations (as in effect on the
    date of enactment of this Act):
                (1) Modernization of a highway by resurfacing, restoration,
            rehabilitation, reconstruction, adding shoulders, or adding
            auxiliary lanes (including parking, weaving, turning, and
            climbing).

    [[Page 126 STAT. 551]]

                (2) Highway safety or traffic operations improvement
            projects, including the installation of ramp metering control
            devices and lighting.
                (3) Bridge rehabilitation, reconstruction, or replacement or
            the construction of grade separation to replace existing at-
            grade railroad crossings.

        (d) Programmatic Agreements.--
                (1) In general.--The Secretary shall seek opportunities to
            enter into programmatic agreements with the States that
            establish efficient administrative procedures for carrying out
            environmental and other required project reviews.
                (2) Inclusions.--Programmatic agreements authorized under
            paragraph (1) may include agreements that allow a State to
            determine on behalf of the Federal Highway Administration
            whether a project is categorically excluded from the preparation
            of an environmental assessment or environmental impact statement
            under the National Environmental Policy Act of 1969 (42 U.S.C.
            4321 et seq.).
                (3) Determinations.--An agreement described in paragraph (2)
            may include determinations by the Secretary of the types of
            projects categorically excluded (consistent with section 1508.4
            of title 40, Code of Federal Regulations) in the State in
            addition to the types listed in subsections (c) and (d) of
            section 771.117 of title 23, Code of Federal Regulations (as in
            effect on the date of enactment of this Act).
    SEC. 1319. <<NOTE: 42 USC 4332a note.>> ACCELERATED DECISIONMAKING
                              IN ENVIRONMENTAL REVIEWS.

        (a) In General.--In preparing a final environmental impact statement
    under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
    seq.), if the lead agency modifies the statement in response to comments
    that are minor and are confined to factual corrections or explanations
    of why the comments do not warrant additional agency response, the lead
    agency may write on errata sheets attached to the statement instead of
    rewriting the draft statement, subject to the condition that the errata
    sheets--
                (1) cite the sources, authorities, or reasons that support
            the position of the agency; and
                (2) if appropriate, indicate the circumstances that would
            trigger agency reappraisal or further response.

        (b) Incorporation.--To the maximum extent practicable, the lead
    agency shall expeditiously develop a single document that consists of a
    final environmental impact statement and a record of decision, unless--
                (1) the final environmental impact statement makes
            substantial changes to the proposed action that are relevant to
            environmental or safety concerns; or
                (2) there are significant new circumstances or information
            relevant to environmental concerns and that bear on the proposed
            action or the impacts of the proposed action.
    SEC. 1320. <<NOTE: 23 USC 139 note.>> MEMORANDA OF AGENCY
                              AGREEMENTS FOR EARLY COORDINATION.

        (a) In General.--It is the sense of Congress that--
                (1) the Secretary and other Federal agencies with relevant
            jurisdiction in the environmental review process should
            cooperate with each other and other agencies on environmental
            review and project delivery activities at the earliest
            practicable

    [[Page 126 STAT. 552]]

            time to avoid delays and duplication of effort later in the
            process, head off potential conflicts, and ensure that planning
            and project development decisions reflect environmental values;
            and
                (2) such cooperation should include the development of
            policies and the designation of staff that advise planning
            agencies or project sponsors of studies or other information
            foreseeably required for later Federal action and early
            consultation with appropriate State and local agencies and
            Indian tribes.

        (b) Technical Assistance.--If requested at any time by a State or
    local planning agency, the Secretary and other Federal agencies with
    relevant jurisdiction in the environmental review process, shall, to the
    extent practicable and appropriate, as determined by the agencies,
    provide technical assistance to the State or local planning agency on
    accomplishing the early coordination activities described in subsection
    (d).
        (c) Memorandum of Agency Agreement.--If requested at any time by a
    State or local planning agency, the lead agency, in consultation with
    other Federal agencies with relevant jurisdiction in the environmental
    review process, may establish memoranda of agreement with the project
    sponsor, State, and local governments and other appropriate entities to
    accomplish the early coordination activities described in subsection
    (d).
        (d) Early Coordination Activities.--Early coordination activities
    shall include, to the maximum extent practicable, the following:
                (1) Technical assistance on identifying potential impacts
            and mitigation issues in an integrated fashion.
                (2) The potential appropriateness of using planning products
            and decisions in later environmental reviews.
                (3) The identification and elimination from detailed study
            in the environmental review process of the issues that are not
            significant or that have been covered by prior environmental
            reviews.
                (4) The identification of other environmental review and
            consultation requirements so that the lead and cooperating
            agencies may prepare, as appropriate, other required analyses
            and studies concurrently with planning activities.
                (5) The identification by agencies with jurisdiction over
            any permits related to the project of any and all relevant
            information that will reasonably be required for the project.
                (6) The reduction of duplication between requirements under
            the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
            seq.) and State and local planning and environmental review
            requirements, unless the agencies are specifically barred from
            doing so by applicable law.
                (7) Timelines for the completion of agency actions during
            the planning and environmental review processes.
                (8) Other appropriate factors.
    SEC. 1321. <<NOTE: Review. Contracts.>> ENVIRONMENTAL PROCEDURES
                              INITIATIVE.

        (a) Establishment.--For grant programs under which funds are
    distributed by formula by the Department, the Secretary shall establish
    an initiative to review and develop consistent procedures for
    environmental permitting and procurement requirements that

    [[Page 126 STAT. 553]]

    apply to a project carried out under title 23, United States Code, or
    chapter 53 of title 49, United States Code.
        (b) Report.--The Secretary shall publish the results of the
    initiative described in subsection (a) in an electronically accessible
    format.
    SEC. 1322. REVIEW OF STATE ENVIRONMENTAL REVIEWS AND APPROVALS FOR
                              THE PURPOSE OF ELIMINATING DUPLICATION
                              OF ENVIRONMENTAL REVIEWS.

        For environmental reviews and approvals carried out on projects
    funded under title 23, United States Code, the Comptroller General of
    the United States shall--
                (1) review State laws and procedures for conducting
            environmental reviews with regard to such projects and identify
            the States that have environmental laws that provide
            environmental protections and opportunities for public
            involvement that are equivalent to those provided by Federal
            environmental laws;
                (2) <<NOTE: Determination.>> determine the frequency and
            cost of environmental reviews carried out at the Federal level
            that are duplicative of State reviews that provide equivalent
            environmental protections and opportunities for public
            involvement; and
                (3) <<NOTE: Deadline.>> not later than 2 years after the
            date of enactment of this Act, submit to the Committee on
            Transportation and Infrastructure of the House of
            Representatives and the Committee on Environment and Public
            Works of the Senate a report that describes the results of the
            review and determination made under this section.
    SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.

        (a) Completion Time Assessments and Reports.--
                (1) In general.--For projects funded under title 23, United
            States Code, the Secretary shall compare--
                        (A)(i) the completion times of categorical
                    exclusions, environmental assessments, and environmental
                    impact statements initiated after calendar year 2005; to
                        (ii) the completion times of categorical exclusions,
                    environmental assessments, and environmental impact
                    statements initiated during a period prior to calendar
                    year 2005; and
                        (B)(i) the completion times of categorical
                    exclusions, environmental assessments, and environmental
                    impact statements initiated during the period beginning
                    on January 1, 2005, and ending on the date of enactment
                    of this Act; to
                        (ii) the completion times of categorical exclusions,
                    environmental assessments, and environmental impact
                    statements initiated after the date of enactment of this
                    Act.
                (2) Report.--The Secretary shall submit to the Committee on
            Transportation and Infrastructure of the House of
            Representatives and the Committee on Environment and Public
            Works of the Senate--
                        (A) not later than 1 year after the date of
                    enactment of this Act, a report that--
                              (i) describes the results of the review
                          conducted under paragraph (1)(A); and

    [[Page 126 STAT. 554]]

                              (ii) identifies any change in the timing for
                          completions, including the reasons for any such
                          change and the reasons for delays in excess of 5
                          years; and
                        (B) not later than 5 years after the date of
                    enactment of this Act, a report that--
                              (i) describes the results of the review
                          conducted under paragraph (1)(B); and
                              (ii) identifies any change in the timing for
                          completions, including the reasons for any such
                          change and the reasons for delays in excess of 5
                          years.

        (b) Additional Report.--Not later than 2 years after the date of
    enactment of this Act, the Secretary shall submit to the Committee on
    Transportation and Infrastructure of the House of Representatives and
    the Committee on Environment and Public Works of the Senate a report on
    the types and justification for the additional categorical exclusions
    granted under the authority provided under sections 1316 and 1317.
        (c) GAO Report.--The Comptroller General of the United States
    shall--
                (1) assess the reforms carried out under this subtitle
            (including the amendments made by this subtitle); and
                (2) not later than 5 years after the date of enactment of
            this Act, submit to the Committee on Transportation and
            Infrastructure of the House of Representatives and the Committee
            on Environment and Public Works of the Senate a report that
            describes the results of the assessment.

        (d) Inspector General Report.--The Inspector General of the
    Department of Transportation shall--
                (1) assess the reforms carried out under this subtitle
            (including the amendments made by this subtitle); and
                (2) submit to the Committee on Transportation and
            Infrastructure of the House of Representatives and the Committee
            on Environment and Public Works of the Senate--
                        (A) not later than 2 years after the date of
                    enactment of this Act, an initial report of the findings
                    of the Inspector General; and
                        (B) not later than 4 years after the date of
                    enactment of this Act, a final report of the findings.

                           Subtitle D--Highway Safety

    SEC. 1401. <<NOTE: 23 USC 137 note.>> JASON'S LAW.

        (a) In General.--It is the sense of Congress that it is a national
    priority to address projects under this section for the shortage of
    long-term parking for commercial motor vehicles on the National Highway
    System to improve the safety of motorized and nonmotorized users and for
    commercial motor vehicle operators.
        (b) Eligible Projects.--Eligible projects under this section are
    those that--
                (1) serve the National Highway System; and
                (2) may include the following:
                        (A) Constructing safety rest areas (as defined in
                    section 120(c) of title 23, United States Code) that
                    include parking for commercial motor vehicles.

    [[Page 126 STAT. 555]]

                        (B) Constructing commercial motor vehicle parking
                    facilities adjacent to commercial truck stops and travel
                    plazas.
                        (C) Opening existing facilities to commercial motor
                    vehicle parking, including inspection and weigh stations
                    and park-and-ride facilities.
                        (D) Promoting the availability of publicly or
                    privately provided commercial motor vehicle parking on
                    the National Highway System using intelligent
                    transportation systems and other means.
                        (E) Constructing turnouts along the National Highway
                    System for commercial motor vehicles.
                        (F) Making capital improvements to public commercial
                    motor vehicle parking facilities currently closed on a
                    seasonal basis to allow the facilities to remain open
                    year-round.
                        (G) Improving the geometric design of interchanges
                    on the National Highway System to improve access to
                    commercial motor vehicle parking facilities.

        (c) <<NOTE: Deadline.>> Survey and Comparative Assessment.--
                (1) In general.--Not later than 18 months after the date of
            enactment of this Act, the Secretary, in consultation with
            relevant State motor carrier safety personnel, shall conduct a
            survey of each State--
                        (A) to evaluate the capability of the State to
                    provide adequate parking and rest facilities for
                    commercial motor vehicles engaged in interstate
                    transportation;
                        (B) to assess the volume of commercial motor vehicle
                    traffic in the State; and
                        (C) to develop a system of metrics to measure the
                    adequacy of commercial motor vehicle parking facilities
                    in the State.
                (2) <<NOTE: Public information. Web posting.>> Results.--The
            results of the survey under paragraph (1) shall be made
            available to the public on the website of the Department of
            Transportation.
                (3) Periodic updates.--The Secretary shall periodically
            update the survey under this subsection.

        (d) Electric Vehicle and Natural Gas Vehicle Infrastructure.--
                (1) In general.--Except as provided in paragraph (2), a
            State may establish electric vehicle charging stations or
            natural gas vehicle refueling stations for the use of battery-
            powered or natural gas-fueled trucks or other motor vehicles at
            any parking facility funded or authorized under this Act or
            title 23, United States Code.
                (2) Exception.--Electric vehicle battery charging stations
            or natural gas vehicle refueling stations may not be established
            or supported under paragraph (1) if commercial establishments
            serving motor vehicle users are prohibited by section 111 of
            title 23, United States Code.
                (3) Funds.--Charging or refueling stations described in
            paragraph (1) shall be eligible for the same funds as are
            available for the parking facilities in which the stations are
            located.

        (e) Treatment of Projects.--Notwithstanding any other provision of
    law, projects funded through the authority provided under this section
    shall be treated as projects on a Federal-aid highway under chapter 1 of
    title 23, United States Code.

    [[Page 126 STAT. 556]]

    SEC. 1402. OPEN CONTAINER REQUIREMENTS.

        Section 154(c) of title 23, United States Code, is amended--
                (1) by striking paragraph (2) and inserting the following:
                ``(2) Fiscal year 2012 and thereafter.--
                        ``(A) Reservation of funds.--On October 1, 2011, and
                    each October 1 thereafter, if a State has not enacted or
                    is not enforcing an open container law described in
                    subsection (b), the Secretary shall reserve an amount
                    equal to 2.5 percent of the funds to be apportioned to
                    the State on that date under each of paragraphs (1) and
                    (2) of section 104(b) until the State certifies to the
                    Secretary the means by which the State will use those
                    reserved funds in accordance with subparagraphs (A) and
                    (B) of paragraph (1) and paragraph (3).
                        ``(B) Transfer of funds.--As soon as practicable
                    after the date of receipt of a certification from a
                    State under subparagraph (A), the Secretary shall--
                              ``(i) transfer the reserved funds identified
                          by the State for use as described in subparagraphs
                          (A) and (B) of paragraph (1) to the apportionment
                          of the State under section 402; and
                              ``(ii) release the reserved funds identified
                          by the State as described in paragraph (3).'';
                (2) by striking paragraph (3) and inserting the following:
                ``(3) Use for highway safety improvement program.--
                        ``(A) In general.--A State may elect to use all or a
                    portion of the funds transferred under paragraph (2) for
                    activities eligible under section 148.
                        ``(B) State departments of transportation.--If the
                    State makes an election under subparagraph (A), the
                    funds shall be transferred to the department of
                    transportation of the State, which shall be responsible
                    for the administration of the funds.''; and
                (3) by striking paragraph (5) and inserting the following:
                ``(5) Derivation of amount to be transferred.--The amount to
            be transferred under paragraph (2) may be derived from the
            following:
                        ``(A) The apportionment of the State under section
                    104(b)(l).
                        ``(B) The apportionment of the State under section
                    104(b)(2).''.
    SEC. 1403. MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING
                              WHILE INTOXICATED OR DRIVING UNDER THE
                              INFLUENCE.

        (a) Definitions.--Section 164(a) of title 23, United States Code, is
    amended--
                (1) by striking paragraph (3);
                (2) by redesignating paragraphs (4) and (5) as paragraphs
            (3) and (4), respectively; and
                (3) in paragraph (4) (as so redesignated) by striking
            subparagraph (A) and inserting the following:
                        ``(A) receive--
                              ``(i) a suspension of all driving privileges
                          for not less than 1 year; or
                              ``(ii) a suspension of unlimited driving
                          privileges for 1 year, allowing for the
                          reinstatement of limited

    [[Page 126 STAT. 557]]

                          driving privileges subject to restrictions and
                          limited exemptions as established by State law, if
                          an ignition interlock device is installed for not
                          less than 1 year on each of the motor vehicles
                          owned or operated, or both, by the individual;''.

        (b) Transfer of Funds.--Section 164(b) of title 23, United States
    Code, is amended--
                (1) by striking paragraph (2) and inserting the following:
                ``(2) Fiscal year 2012 and thereafter.--
                        ``(A) Reservation of funds.--On October 1, 2011, and
                    each October 1 thereafter, if a State has not enacted or
                    is not enforcing a repeat intoxicated driver law, the
                    Secretary shall reserve an amount equal to 2.5 percent
                    of the funds to be apportioned to the State on that date
                    under each of paragraphs (1) and (2) of section 104(b)
                    until the State certifies to the Secretary the means by
                    which the States will use those reserved funds among the
                    uses authorized under subparagraphs (A) and (B) of
                    paragraph (1), and paragraph (3).
                        ``(B) Transfer of funds.--As soon as practicable
                    after the date of receipt of a certification from a
                    State under subparagraph (A), the Secretary shall--
                              ``(i) transfer the reserved funds identified
                          by the State for use as described in subparagraphs
                          (A) and (B) of paragraph (1) to the apportionment
                          of the State under section 402; and
                              ``(ii) release the reserved funds identified
                          by the State as described in paragraph (3).'';
                (2) by striking paragraph (3) and inserting the following:
                ``(3) Use for highway safety improvement program.--
                        ``(A) In general.--A State may elect to use all or a
                    portion of the funds transferred under paragraph (2) for
                    activities eligible under section 148.
                        ``(B) State departments of transportation.--If the
                    State makes an election under subparagraph (A), the
                    funds shall be transferred to the department of
                    transportation of the State, which shall be responsible
                    for the administration of the funds.''; and
                (3) by striking paragraph (5) and inserting the following:
                ``(5) Derivation of amount to be transferred.--The amount to
            be transferred under paragraph (2) may be derived from the
            following:
                        ``(A) The apportionment of the State under section
                    104(b)(1).
                        ``(B) The apportionment of the State under section
                    104(b)(2).''.
    SEC. 1404. ADJUSTMENTS TO PENALTY PROVISIONS.

        (a) Vehicle Weight Limitations.--Section 127(a)(1) of title 23,
    United States Code, is amended by striking ``No funds shall be
    apportioned in any fiscal year under section 104(b)(1) of this title to
    any State which'' and inserting ``The Secretary shall withhold 50
    percent of the apportionment of a State under section 104(b)(1) in any
    fiscal year in which the State''.
        (b) Control of Junkyards.--Section 136 of title 23, United States
    Code, is amended--
                (1) in subsection (b), in the first sentence--

    [[Page 126 STAT. 558]]

                        (A) by striking ``10 per centum'' and inserting ``7
                    percent''; and
                        (B) by striking ``section 104 of this title'' and
                    inserting ``paragraphs (1) through (5) of section
                    104(b)''; and
                (2) by adding at the end the following:

        ``(n) Definitions.--For purposes of this section, the terms `primary
    system' and `Federal-aid primary system' mean any highway that is on the
    National Highway System, which includes the Interstate Highway
    System.''.
        (c) Enforcement of Vehicle Size and Weight Laws.--Section 141(b)(2)
    of title 23, United States Code, is amended--
                (1) by striking ``10 per centum'' and inserting ``7
            percent''; and
                (2) by striking ``section 104 of this title'' and inserting
            ``paragraphs (1) through (5) of section 104(b)''.

        (d) Proof of Payment of the Heavy Vehicle Use Tax.--Section 141(c)
    of title 23, United States Code, is amended--
                (1) by striking ``section 104(b)(4)'' each place it appears
            and inserting ``section 104(b)(1)''; and
                (2) in the first sentence by striking ``25 per centum'' and
            inserting ``8 percent''.

        (e) Use of Safety Belts.--Section 153(h) of title 23, United States
    Code, is amended--
                (1) by striking paragraph (1);
                (2) by redesignating paragraph (2) as paragraph (1);
                (3) in paragraph (1) (as so redesignated)--
                        (A) by striking the paragraph heading and inserting
                    ``Prior to fiscal year 2012''; and
                        (B) by inserting ``and before October 1, 2011,''
                    after ``September 30, 1994,''; and
                (4) by inserting after paragraph (1) (as so redesignated)
            the following:
                ``(2) Fiscal year 2012 and thereafter.--If, at any time in a
            fiscal year beginning after September 30, 2011, a State does not
            have in effect a law described in subsection (a)(2), the
            Secretary shall transfer an amount equal to 2 percent of the
            funds apportioned to the State for the succeeding fiscal year
            under each of paragraphs (1) through (3) of section 104(b) to
            the apportionment of the State under section 402.''.

        (f) National Minimum Drinking Age.--Section 158(a)(1) of title 23,
    United States Code, is amended--
                (1) by striking ``The Secretary'' and inserting the
            following:
                        ``(A) Fiscal years before 2012.--The Secretary'';
                    and
                (2) by adding at the end the following:
                        ``(B) Fiscal year 2012 and thereafter.--For fiscal
                    year 2012 and each fiscal year thereafter, the amount to
                    be withheld under this section shall be an amount equal
                    to 8 percent of the amount apportioned to the
                    noncompliant State, as described in subparagraph (A),
                    under paragraphs (1) and (2) of section 104(b).''.

        (g) Drug Offenders.--Section 159 of title 23, United States Code, is
    amended--
                (1) in subsection (a)--
                        (A) by striking paragraph (1);
                        (B) by redesignating paragraph (2) as paragraph (1);

    [[Page 126 STAT. 559]]

                        (C) in paragraph (1) (as so redesignated) by
                    striking ``(including any amounts withheld under
                    paragraph (1))''; and
                        (D) by inserting after paragraph (1) (as so
                    redesignated) the following:
                ``(2) Fiscal year 2012 and thereafter.--The Secretary shall
            withhold an amount equal to 8 percent of the amount required to
            be apportioned to any State under each of paragraphs (1) and (2)
            of section 104(b) on the first day of each fiscal year beginning
            after September 30, 2011, if the State fails to meet the
            requirements of paragraph (3) on the first day of the fiscal
            year.''; and
                (2) by striking subsection (b) and inserting the following:

        ``(b) Effect of Noncompliance.--No funds withheld under this section
    from apportionments to any State shall be available for apportionment to
    that State.''.
        (h) Zero Tolerance Blood Alcohol Concentration for Minors.--Section
    161(a) of title 23, United States Code, is amended--
                (1) by striking paragraph (1);
                (2) by redesignating paragraph (2) as paragraph (1);
                (3) in paragraph (1) (as so redesignated)--
                        (A) by striking the paragraph heading and inserting
                    ``Prior to fiscal year 2012''; and
                        (B) by inserting ``through fiscal year 2011'' after
                    ``each fiscal year thereafter''; and
                (4) by inserting after paragraph (1) (as so redesignated)
            the following:
                ``(2) Fiscal year 2012 and thereafter.--The Secretary shall
            withhold an amount equal to 8 percent of the amount required to
            be apportioned to any State under each of paragraphs (1) and (2)
            of section 104(b) on October 1, 2011, and on October 1 of each
            fiscal year thereafter, if the State does not meet the
            requirement of paragraph (3) on that date.''.

        (i) Operation of Motor Vehicles by Intoxicated Persons.--Section
    163(e) of title 23, United States Code, is amended by striking
    paragraphs (1) and (2) and inserting the following:
                ``(1) Fiscal years 2007 through 2011.--On October 1, 2006,
            and October 1 of each fiscal year thereafter through fiscal year
            2011, if a State has not enacted or is not enforcing a law
            described in subsection (a), the Secretary shall withhold an
            amount equal to 8 percent of the amounts to be apportioned to
            the State on that date under each of paragraphs (1), (3), and
            (4) of section 104(b).
                ``(2) Fiscal year 2012 and thereafter.--On October 1, 2011,
            and October 1 of each fiscal year thereafter, if a State has not
            enacted or is not enforcing a law described in subsection (a),
            the Secretary shall withhold an amount equal to 6 percent of the
            amounts to be apportioned to the State on that date under each
            of paragraphs (1) and (2) of section 104(b).''.

        (j) Commercial Driver's License.--Section 31314 of title 49, United
    States Code, is amended--
                (1) by redesignating subsection (c) as subsection (d); and
                (2) by inserting after subsection (b) the following:

        ``(c) Penalties Imposed in Fiscal Year 2012 and Thereafter.--
    Effective beginning on October 1, 2011--

    [[Page 126 STAT. 560]]

                ``(1) the penalty for the first instance of noncompliance by
            a State under this section shall be not more than an amount
            equal to 4 percent of funds required to be apportioned to the
            noncompliant State under paragraphs (1) and (2) of section
            104(b) of title 23; and
                ``(2) the penalty for subsequent instances of noncompliance
            shall be not more than an amount equal to 8 percent of funds
            required to be apportioned to the noncompliant State under
            paragraphs (1) and (2) of section 104(b) of title 23.''.
    SEC. 1405. <<NOTE: Deadline.>> HIGHWAY WORKER SAFETY.

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

                            Subtitle E--Miscellaneous

    SEC. 1501. REAL-TIME RIDESHARING.

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

    [[Page 126 STAT. 561]]

    SEC. 1502. PROGRAM EFFICIENCIES.

        The first sentence of section 102(b) of title 23, United States
    Code, is amended by striking ``made available for such engineering'' and
    inserting ``reimbursed for the preliminary engineering''.
    SEC. 1503. PROJECT APPROVAL AND OVERSIGHT.

        (a) In General.--Section 106 of title 23, United States Code, is
    amended--
                (1) in subsection (a)(2) by inserting ``recipient'' before
            ``formalizing'';
                (2) in subsection (c)--
                        (A) in paragraph (1)--
                              (i) in the heading, by striking ``Non-
                          interstate'';
                              (ii) by striking ``but not on the Interstate
                          System''; and inserting ``, including projects on
                          the Interstate System''; and
                              (iii) by striking ``of projects'' and all that
                          follows through the period at the end and
                          inserting ``with respect to the projects unless
                          the Secretary determines that the assumption is
                          not appropriate.''; and
                        (B) by striking paragraph (4) and inserting the
                    following:
                ``(4) Limitation on interstate projects.--
                        ``(A) In general.--The Secretary shall not assign
                    any responsibilities to a State for projects the
                    Secretary determines to be in a high risk category, as
                    defined under subparagraph (B).
                        ``(B) High risk categories.--The Secretary may
                    define the high risk categories under this subparagraph
                    on a national basis, a State-by-State basis, or a
                    national and State-by-State basis, as determined to be
                    appropriate by the Secretary.'';
                (3) in subsection (e)--
                        (A) in paragraph (1)(A)--
                              (i) in the matter preceding clause (i)--
                                        (I) by striking ``concept'' and
                                    inserting ``planning''; and
                                        (II) by striking
                                    ``multidisciplined'' and inserting
                                    ``multidisciplinary''; and
                              (ii) by striking clause (i) and inserting the
                          following:
                              ``(i) providing the needed functions safely,
                          reliably, and at the lowest overall lifecycle
                          cost;'';
                        (B) in paragraph (2)--
                              (i) in the matter preceding subparagraph (A)
                          by striking ``or other cost-reduction analysis'';
                              (ii) in subparagraph (A)--
                                        (I) by striking ``Federal-aid
                                    system'' and inserting ``National
                                    Highway System receiving Federal
                                    assistance''; and
                                        (II) by striking ``$25,000,000'' and
                                    inserting ``$50,000,000''; and
                              (iii) in subparagraph (B)--
                                        (I) by inserting ``on the National
                                    Highway System receiving Federal
                                    assistance'' after ``a bridge project'';
                                    and

    [[Page 126 STAT. 562]]

                                        (II) by striking ``$20,000,000'' and
                                    inserting ``$40,000,000''; and
                        (C) by striking paragraph (4) and inserting the
                    following:
                ``(4) Requirements.--
                        ``(A) Value engineering program.--The State shall
                    develop and carry out a value engineering program that--
                              ``(i) establishes and documents value
                          engineering program policies and procedures;
                              ``(ii) ensures that the required value
                          engineering analysis is conducted before
                          completing the final design of a project;
                              ``(iii) ensures that the value engineering
                          analysis that is conducted, and the
                          recommendations developed and implemented for each
                          project, are documented in a final value
                          engineering report; and
                              ``(iv) <<NOTE: Reports.>> monitors, evaluates,
                          and annually submits to the Secretary a report
                          that describes the results of the value analyses
                          that are conducted and the recommendations
                          implemented for each of the projects described in
                          paragraph (2) that are completed in the State.
                        ``(B) Bridge projects.--The value engineering
                    analysis for a bridge project under paragraph (2)
                    shall--
                              ``(i) include bridge superstructure and
                          substructure requirements based on construction
                          material; and
                              ``(ii) be evaluated by the State--
                                        ``(I) on engineering and economic
                                    bases, taking into consideration
                                    acceptable designs for bridges; and
                                        ``(II) using an analysis of
                                    lifecycle costs and duration of project
                                    construction.
                ``(5) Design-build projects.--A requirement to provide a
            value engineering analysis under this subsection shall not apply
            to a project delivered using the design-build method of
            construction.'';
                (4) in subsection (h)--
                        (A) in paragraph (1)(B) by inserting ``, including a
                    phasing plan when applicable'' after ``financial plan'';
                    and
                        (B) by striking paragraph (3) and inserting the
                    following:
                ``(3) Financial plan.--A financial plan--
                        ``(A) shall be based on detailed estimates of the
                    cost to complete the project;
                        ``(B) shall provide for the annual submission of
                    updates to the Secretary that are based on reasonable
                    assumptions, as determined by the Secretary, of future
                    increases in the cost to complete the project;
                        ``(C) may include a phasing plan that identifies
                    fundable incremental improvements or phases that will
                    address the purpose and the need of the project in the
                    short term in the event there are insufficient financial
                    resources to complete the entire project. If a phasing
                    plan is adopted for a project pursuant to this section,
                    the project shall be deemed to satisfy the fiscal
                    constraint requirements in the statewide and
                    metropolitan planning requirements in sections 134 and
                    135; and

    [[Page 126 STAT. 563]]

                        ``(D) shall assess the appropriateness of a public-
                    private partnership to deliver the project.''; and
                (5) by adding at the end the following:

        ``(j) Use of Advanced Modeling Technologies.--
                ``(1) Definition of advanced modeling technology.--In this
            subsection, the term `advanced modeling technology' means an
            available or developing technology, including 3-dimensional
            digital modeling, that can--
                        ``(A) accelerate and improve the environmental
                    review process;
                        ``(B) increase effective public participation;
                        ``(C) enhance the detail and accuracy of project
                    designs;
                        ``(D) increase safety;
                        ``(E) accelerate construction, and reduce
                    construction costs; or
                        ``(F) otherwise expedite project delivery with
                    respect to transportation projects that receive Federal
                    funding.
                ``(2) Program.--With respect to transportation projects that
            receive Federal funding, the Secretary shall encourage the use
            of advanced modeling technologies during environmental,
            planning, financial management, design, simulation, and
            construction processes of the projects.
                ``(3) Activities.--In carrying out paragraph (2), the
            Secretary shall--
                        ``(A) compile information relating to advanced
                    modeling technologies, including industry best practices
                    with respect to the use of the technologies;
                        ``(B) disseminate to States information relating to
                    advanced modeling technologies, including industry best
                    practices with respect to the use of the technologies;
                    and
                        ``(C) promote the use of advanced modeling
                    technologies.
                ``(4) <<NOTE: Web posting.>> Comprehensive plan.--The
            Secretary shall develop and publish on the public website of the
            Department of Transportation a detailed and comprehensive plan
            for the implementation of paragraph (2).''.

        (b) Review of Oversight Program.--
                (1) In general.--The Secretary shall review the oversight
            program established under section 106(g) of title 23, United
            States Code, to determine the efficacy of the program in
            monitoring the effective and efficient use of funds authorized
            to carry out title 23, United States Code.
                (2) Minimum requirements for review.--At a minimum, the
            review under paragraph (1) shall assess the capability of the
            program to--
                        (A) identify projects funded under title 23, United
                    States Code, for which there are cost or schedule
                    overruns; and
                        (B) evaluate the extent of such overruns.
                (3) Report to congress.--Not later than 2 years after the
            date of enactment of this Act, the Secretary shall transmit to
            the Committee on Transportation and Infrastructure of the House
            of Representatives and the Committee on Environment and Public
            Works of the Senate a report on the results of the review
            conducted under paragraph (1), which shall include

    [[Page 126 STAT. 564]]

            recommendations for legislative changes to improve the oversight
            program established under section 106(g) of title 23, United
            States Code.

        (c) <<NOTE: 23 USC 104 note.>> Transparency and Accountability.--
                (1) <<NOTE: Web posting.>> Data collection.--The Secretary
            shall compile and make available on the public website of the
            Department of Transportation the annual expenditure data for
            funds made available under title 23 and chapter 53 of title 49,
            United States Code.
                (2) Requirements.--In carrying out paragraph (1), the
            Secretary shall ensure that the data made available on the
            public website of the Department of Transportation--
                        (A) is organized by project and State;
                        (B) to the maximum extent practicable, is updated
                    regularly to reflect the current status of obligations,
                    expenditures, and Federal-aid projects; and
                        (C) can be searched and downloaded by users of the
                    website.
                (3) <<NOTE: Time period.>> Report to congress.--The
            Secretary shall annually submit to the Committee on
            Transportation and Infrastructure of the House of
            Representatives and the Committee on Environment and Public
            Works and the Committee on Banking, Housing, and Urban Affairs
            of the Senate a report containing a summary of the data
            described in paragraph (1) for the 1-year period ending on the
            date on which the report is submitted.
    SEC. 1504. STANDARDS.

        Section 109 of title 23, United States Code, is amended by adding at
    the end the following:
        ``(r) Pavement Markings.--The Secretary shall not approve any
    pavement markings project that includes the use of glass beads
    containing more than 200 parts per million of arsenic or lead, as
    determined in accordance with Environmental Protection Agency testing
    methods 3052, 6010B, or 6010C.''.
    SEC. 1505. JUSTIFICATION REPORTS FOR ACCESS POINTS ON THE
                              INTERSTATE SYSTEM.

        Section 111 of title 23, United States Code, is amended by adding at
    the end the following:
        ``(e) Justification Reports.--If the Secretary requests or requires
    a justification report for a project that would add a point of access
    to, or exit from, the Interstate System, the Secretary may permit a
    State transportation department to approve the report.''.
    SEC. 1506. CONSTRUCTION.

        Section 114(b) of title 23, United States Code, is amended--
                (1) in subsection (b)--
                        (A) by striking paragraph (1) and inserting the
                    following:
                ``(1) Limitation on convict labor.--Convict labor shall not
            be used in construction of Federal-aid highways or portions of
            Federal-aid highways unless the labor is performed by convicts
            who are on parole, supervised release, or probation.''; and
                        (B) in paragraph (3) by inserting ``in existence
                    during that period'' after ``located on a Federal-aid
                    system''; and

    [[Page 126 STAT. 565]]

                (2) by adding at the end the following:

        ``(d) Veterans Employment.---
                ``(1) <<NOTE: Contracts.>> In general.--Subject to paragraph
            (2), a recipient of Federal financial assistance under this
            chapter shall, to the extent practicable, encourage contractors
            working on a highway project funded using the assistance to make
            a best faith effort in the hiring or referral of laborers on any
            project for the construction of a highway to veterans (as
            defined in section 2108 of title 5) who have the requisite
            skills and abilities to perform the construction work required
            under the contract.
                ``(2) Administration.--This subsection shall not--
                        ``(A) apply to projects subject to section 140(d);
                    or
                        ``(B) be administered or enforced in any manner that
                    would require an employer to give a preference to any
                    veteran over any equally qualified applicant who is a
                    member of any racial or ethnic minority, a female, or
                    any equally qualified former employee.''.
    SEC. 1507. MAINTENANCE.

        Section 116 of title 23, United States Code, is amended--
                (1) by redesignating subsections (a) through (d) as
            subsections (b) through (e), respectively;
                (2) by inserting before subsection (b) (as so redesignated)
            the following:

        ``(a) Definitions.--In this section, the following definitions
    apply:
                ``(1) Preventive maintenance.--The term `preventive
            maintenance' includes pavement preservation programs and
            activities.
                ``(2) Pavement preservation programs and activities.--The
            term `pavement preservation programs and activities' means
            programs and activities employing a network level, long-term
            strategy that enhances pavement performance by using an
            integrated, cost-effective set of practices that extend pavement
            life, improve safety, and meet road user expectations.'';
                (3) in subsection (b) (as so redesignated)--
                        (A) in the first sentence, by inserting ``or other
                    direct recipient'' before ``to maintain''; and
                        (B) by striking the second sentence;
                (4) by striking subsection (c) (as so redesignated) and
            inserting the following:

        ``(c) Agreement.--In any State in which the State transportation
    department or other direct recipient is without legal authority to
    maintain a project described in subsection (b), the transportation
    department or direct recipient shall enter into a formal agreement with
    the appropriate officials of the county or municipality in which the
    project is located to provide for the maintenance of the project.''; and
                (5) in the first sentence of subsection (d) (as so
            redesignated) by inserting ``or other direct recipient'' after
            ``State transportation department''.
    SEC. 1508. FEDERAL SHARE PAYABLE.

        Section 120 of title 23, United States Code, is amended--
                (1) in the first sentence of subsection (c)(1)--
                        (A) by inserting ``maintaining minimum levels of
                    retroreflectivity of highway signs or pavement
                    markings,'' after ``traffic control signalization,'';

    [[Page 126 STAT. 566]]

                        (B) by inserting ``shoulder and centerline rumble
                    strips and stripes,'' after ``pavement marking,''; and
                        (C) by striking ``Federal-aid systems'' and
                    inserting ``Federal-aid programs'';
                (2) by striking subsection (e) and inserting the following:

        ``(e) Emergency Relief.--The Federal share payable for any repair or
    reconstruction provided for by funds made available under section 125
    for any project on a Federal-aid highway, including the Interstate
    System, shall not exceed the Federal share payable on a project on the
    system as provided in subsections (a) and (b), except that--
                ``(1) <<NOTE: Time period.>> the Federal share payable for
            eligible emergency repairs to minimize damage, protect
            facilities, or restore essential traffic accomplished within 180
            days after the actual occurrence of the natural disaster or
            catastrophic failure may amount to 100 percent of the cost of
            the repairs;
                ``(2) the Federal share payable for any repair or
            reconstruction of Federal land transportation facilities,
            Federal land access transportation facilities, and tribal
            transportation facilities may amount to 100 percent of the cost
            of the repair or reconstruction;
                ``(3) <<NOTE: Extension.>> the Secretary shall extend the
            time period in paragraph (1) taking into consideration any delay
            in the ability of the State to access damaged facilities to
            evaluate damage and the cost of repair; and
                ``(4) the Federal share payable for eligible permanent
            repairs to restore damaged facilities to predisaster condition
            may amount to 90 percent of the cost of the repairs if the
            eligible expenses incurred by the State due to natural disasters
            or catastrophic failures in a Federal fiscal year exceeds the
            annual apportionment of the State under section 104 for the
            fiscal year in which the disasters or failures occurred.'';
                (3) by striking subsection (g) and redesignating subsections
            (h) through (l) as subsections (g) through (k), respectively;
                (4) in subsection (i)(1)(A) (as redesignated by paragraph
            (3)) by striking ``and the Appalachian development highway
            system program under section 14501 of title 40''; and
                (5) by striking subsections (j) and (k) (as redesignated by
            paragraph (3)) and inserting the following:

        ``(j) Use of Federal Agency Funds.--Notwithstanding any other
    provision of law, any Federal funds other than those made available
    under this title and title 49 may be used to pay the non-Federal share
    of the cost of any transportation project that is within, adjacent to,
    or provides access to Federal land, the Federal share of which is funded
    under this title or chapter 53 of title 49.
        ``(k) Use of Federal Land and Tribal Transportation Funds.--
    Notwithstanding any other provision of law, the funds authorized to be
    appropriated to carry out the tribal transportation program under
    section 202 and the Federal lands transportation program under section
    203 may be used to pay the non-Federal share of the cost of any project
    that is funded under this title or chapter 53 of title 49 and that
    provides access to or within Federal or tribal land.''.

    [[Page 126 STAT. 567]]

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

        (a) In General.--Section 126 of title 23, United States Code, is
    amended to read as follows:
    ``Sec. 126. Transferability of Federal-aid highway funds

        ``(a) In General.--Notwithstanding any other provision of law,
    subject to subsection (b), a State may transfer from an apportionment
    under section 104(b) not to exceed 50 percent of the amount apportioned
    for the fiscal year to any other apportionment of the State under that
    section.
        ``(b) Application to Certain Set-asides.--
                ``(1) In general.--Funds that are subject to sections 104(d)
            and 133(d) shall not be transferred under this section.
                ``(2) Funds transferred by states.--Funds transferred by a
            State under this section of the funding reserved for the State
            under section 213 for a fiscal year may only come from the
            portion of those funds that are available for obligation in any
            area of the State under section 213(c)(1)(B).''.

        (b) Conforming Amendment.--The analysis for chapter 1 of title 23,
    United States Code, is amended by striking the item relating to section
    126 and inserting the following:

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

    SEC. 1510. IDLE REDUCTION TECHNOLOGY.

        Section 127(a)(12) of title 23, United States Code, is amended--
                (1) in subparagraph (B), by striking ``400'' and inserting
            ``550''; and
                (2) in subparagraph (C)(ii), by striking ``400-pound'' and
            inserting ``550-pound''.
    SEC. 1511. SPECIAL PERMITS DURING PERIODS OF NATIONAL EMERGENCY.

        Section 127 of title 23, United States Code, is amended by inserting
    at the end the following:
        ``(i) Special Permits During Periods of National Emergency.--
                ``(1) In general.--Notwithstanding any other provision of
            this section, a State may issue special permits during an
            emergency to overweight vehicles and loads that can easily be
            dismantled or divided if--
                        ``(A) the President has declared the emergency to be
                    a major disaster under the Robert T. Stafford Disaster
                    Relief and Emergency Assistance Act (42 U.S.C. 5121 et
                    seq.);
                        ``(B) the permits are issued in accordance with
                    State law; and
                        ``(C) the permits are issued exclusively to vehicles
                    and loads that are delivering relief supplies.
                ``(2) Expiration.--A permit issued under paragraph (1) shall
            expire not later than 120 days after the date of the declaration
            of emergency under subparagraph (A) of that paragraph.''.
    SEC. 1512. TOLLING.

        (a) Amendment to Tolling Provision.--Section 129(a) of title 23,
    United States Code, is amended to read as follows:
        ``(a) Basic Program.--

    [[Page 126 STAT. 568]]

                ``(1) Authorization for federal participation.--Subject to
            the provisions of this section, Federal participation shall be
            permitted on the same basis and in the same manner as
            construction of toll-free highways is permitted under this
            chapter in the--
                        ``(A) initial construction of a toll highway,
                    bridge, or tunnel or approach to the highway, bridge, or
                    tunnel;
                        ``(B) initial construction of 1 or more lanes or
                    other improvements that increase capacity of a highway,
                    bridge, or tunnel (other than a highway on the
                    Interstate System) and conversion of that highway,
                    bridge, or tunnel to a tolled facility, if the number of
                    toll-free lanes, excluding auxiliary lanes, after the
                    construction is not less than the number of toll-free
                    lanes, excluding auxiliary lanes, before the
                    construction;
                        ``(C) initial construction of 1 or more lanes or
                    other improvements that increase the capacity of a
                    highway, bridge, or tunnel on the Interstate System and
                    conversion of that highway, bridge, or tunnel to a
                    tolled facility, if the number of toll-free non-HOV
                    lanes, excluding auxiliary lanes, after such
                    construction is not less than the number of toll-free
                    non-HOV lanes, excluding auxiliary lanes, before such
                    construction;
                        ``(D) reconstruction, resurfacing, restoration,
                    rehabilitation, or replacement of a toll highway,
                    bridge, or tunnel or approach to the highway, bridge, or
                    tunnel;
                        ``(E) reconstruction or replacement of a toll-free
                    bridge or tunnel and conversion of the bridge or tunnel
                    to a toll facility;
                        ``(F) reconstruction of a toll-free Federal-aid
                    highway (other than a highway on the Interstate System)
                    and conversion of the highway to a toll facility;
                        ``(G) reconstruction, restoration, or rehabilitation
                    of a highway on the Interstate System if the number of
                    toll-free non-HOV lanes, excluding auxiliary lanes,
                    after reconstruction, restoration, or rehabilitation is
                    not less than the number of toll-free non-HOV lanes,
                    excluding auxiliary lanes, before reconstruction,
                    restoration, or rehabilitation;
                        ``(H) conversion of a high occupancy vehicle lane on
                    a highway, bridge, or tunnel to a toll facility; and
                        ``(I) preliminary studies to determine the
                    feasibility of a toll facility for which Federal
                    participation is authorized under this paragraph.
                ``(2) Ownership.--Each highway, bridge, tunnel, or approach
            to the highway, bridge, or tunnel constructed under this
            subsection shall--
                        ``(A) be publicly owned; or
                        ``(B) be privately owned if the public authority
                    with jurisdiction over the highway, bridge, tunnel, or
                    approach has entered into a contract with 1 or more
                    private persons to design, finance, construct, and
                    operate the facility and the public authority will be
                    responsible for complying with all applicable
                    requirements of this title with respect to the facility.
                ``(3) Limitations on use of revenues.--

    [[Page 126 STAT. 569]]

                        ``(A) In general.--A public authority with
                    jurisdiction over a toll facility shall use all toll
                    revenues received from operation of the toll facility
                    only for--
                              ``(i) debt service with respect to the
                          projects on or for which the tolls are authorized,
                          including funding of reasonable reserves and debt
                          service on refinancing;
                              ``(ii) a reasonable return on investment of
                          any private person financing the project, as
                          determined by the State or interstate compact of
                          States concerned;
                              ``(iii) any costs necessary for the
                          improvement and proper operation and maintenance
                          of the toll facility, including reconstruction,
                          resurfacing, restoration, and rehabilitation;
                              ``(iv) if the toll facility is subject to a
                          public-private partnership agreement, payments
                          that the party holding the right to toll revenues
                          owes to the other party under the public-private
                          partnership agreement; and
                              ``(v) if the public authority certifies
                          annually that the tolled facility is being
                          adequately maintained, any other purpose for which
                          Federal funds may be obligated by a State under
                          this title.
                        ``(B) Annual audit.--
                              ``(i) In general.--A public authority with
                          jurisdiction over a toll facility shall conduct or
                          have an independent auditor conduct an annual
                          audit of toll facility records to verify adequate
                          maintenance and compliance with subparagraph (A),
                          and report the results of the audits to the
                          Secretary.
                              ``(ii) Records.--On reasonable notice, the
                          public authority shall make all records of the
                          public authority pertaining to the toll facility
                          available for audit by the Secretary.
                        ``(C) Noncompliance.--If the Secretary concludes
                    that a public authority has not complied with the
                    limitations on the use of revenues described in
                    subparagraph (A), the Secretary may require the public
                    authority to discontinue collecting tolls until an
                    agreement with the Secretary is reached to achieve
                    compliance with the limitation on the use of revenues
                    described in subparagraph (A).
                ``(4) Limitations on conversion of high occupancy vehicle
            facilities on interstate system.--
                        ``(A) In general.--A public authority with
                    jurisdiction over a high occupancy vehicle facility on
                    the Interstate System may undertake reconstruction,
                    restoration, or rehabilitation under paragraph (1)(G) on
                    the facility, and may levy tolls on vehicles, excluding
                    high occupancy vehicles, using the reconstructed,
                    restored, or rehabilitated facility, if the public
                    authority--
                              ``(i) in the case of a high occupancy vehicle
                          facility that affects a metropolitan area, submits
                          to the Secretary a written assurance that the
                          metropolitan planning organization designated
                          under section 5203 of title 49 for the area has
                          been consulted concerning the placement and amount
                          of tolls on the converted facility;

    [[Page 126 STAT. 570]]

                              ``(ii) develops, manages, and maintains a
                          system that will automatically collect the toll;
                          and
                              ``(iii) establishes policies and procedures--
                                        ``(I) to manage the demand to use
                                    the facility by varying the toll amount
                                    that is charged; and
                                        ``(II) to enforce sanctions for
                                    violations of use of the facility.
                        ``(B) Exemption from tolls.--In levying tolls on a
                    facility under subparagraph (A), a public authority may
                    designate classes of vehicles that are exempt from the
                    tolls or charge different toll rates for different
                    classes of vehicles.
                ``(5) Special rule for funding.--
                        ``(A) In general.--In the case of a toll facility
                    under the jurisdiction of a public authority of a State
                    (other than the State transportation department), on
                    request of the State transportation department and
                    subject to such terms and conditions as the department
                    and public authority may agree, the Secretary, working
                    through the State department of transportation, shall
                    reimburse the public authority for the Federal share of
                    the costs of construction of the project carried out on
                    the toll facility under this subsection in the same
                    manner and to the same extent as the department would be
                    reimbursed if the project was being carried out by the
                    department.
                        ``(B) Source.--The reimbursement of funds under this
                    paragraph shall be from sums apportioned to the State
                    under this chapter and available for obligations on
                    projects on the Federal-aid system in the State on which
                    the project is being carried out.
                ``(6) Limitation on federal share.--The Federal share
            payable for a project described in paragraph (1) shall be a
            percentage determined by the State, but not to exceed 80
            percent.
                ``(7) Modifications.--If a public authority (including a
            State transportation department) with jurisdiction over a toll
            facility subject to an agreement under this section or section
            119(e), as in effect on the day before the effective date of
            title I of the Intermodal Surface Transportation Efficiency Act
            of 1991 (105 Stat. 1915), requests modification of the
            agreement, the Secretary shall modify the agreement to allow the
            continuation of tolls in accordance with paragraph (3) without
            repayment of Federal funds.
                ``(8) Loans.--
                        ``(A) In general.--
                              ``(i) Loans.--Using amounts made available
                          under this title, a State may loan to a public or
                          private entity constructing or proposing to
                          construct under this section a toll facility or
                          non-toll facility with a dedicated revenue source
                          an amount equal to all or part of the Federal
                          share of the cost of the project if the project
                          has a revenue source specifically dedicated to the
                          project.
                              ``(ii) Dedicated revenue sources.--Dedicated
                          revenue sources for non-toll facilities include
                          excise taxes, sales taxes, motor vehicle use fees,
                          tax on real

    [[Page 126 STAT. 571]]

                          property, tax increment financing, and such other
                          dedicated revenue sources as the Secretary
                          determines appropriate.
                        ``(B) Compliance with federal laws.--As a condition
                    of receiving a loan under this paragraph, the public or
                    private entity that receives the loan shall ensure that
                    the project will be carried out in accordance with this
                    title and any other applicable Federal law, including
                    any applicable provision of a Federal environmental law.
                        ``(C) Subordination of debt.--The amount of any loan
                    received for a project under this paragraph may be
                    subordinated to any other debt financing for the
                    project.
                        ``(D) Obligation of funds loaned.--Funds loaned
                    under this paragraph may only be obligated for projects
                    under this paragraph.
                        ``(E) Repayment.--The repayment of a loan made under
                    this paragraph shall commence not later than 5 years
                    after date on which the facility that is the subject of
                    the loan is open to traffic.
                        ``(F) Term of loan.--The term of a loan made under
                    this paragraph shall not exceed 30 years from the date
                    on which the loan funds are obligated.
                        ``(G) Interest.--A loan made under this paragraph
                    shall bear interest at or below market interest rates,
                    as determined by the State, to make the project that is
                    the subject of the loan feasible.
                        ``(H) Reuse of funds.--Amounts repaid to a State
                    from a loan made under this paragraph may be obligated--
                              ``(i) for any purpose for which the loan funds
                          were available under this title; and
                              ``(ii) for the purchase of insurance or for
                          use as a capital reserve for other forms of credit
                          enhancement for project debt in order to improve
                          credit market access or to lower interest rates
                          for projects eligible for assistance under this
                          title.
                        ``(I) Guidelines.--The Secretary shall establish
                    procedures and guidelines for making loans under this
                    paragraph.
                ``(9) State law permitting tolling.--If a State does not
            have a highway, bridge, or tunnel toll facility as of the date
            of enactment of the MAP-21, before commencing any activity
            authorized under this section, the State shall have in effect a
            law that permits tolling on a highway, bridge, or tunnel.
                ``(10) Definitions.--In this subsection, the following
            definitions apply:
                        ``(A) High occupancy vehicle; hov.--The term `high
                    occupancy vehicle' or `HOV' means a vehicle with not
                    fewer than 2 occupants.
                        ``(B) Initial construction.--
                              ``(i) In general.--The term `initial
                          construction' means the construction of a highway,
                          bridge, tunnel, or other facility at any time
                          before it is open to traffic.
                              ``(ii) Exclusions.--The term `initial
                          construction' does not include any improvement to
                          a highway, bridge, tunnel, or other facility after
                          it is open to traffic.

    [[Page 126 STAT. 572]]

                        ``(C) Public authority.--The term `public authority'
                    means a State, interstate compact of States, or public
                    entity designated by a State.
                        ``(D) Toll facility.--The term `toll facility' means
                    a toll highway, bridge, or tunnel or approach to the
                    highway, bridge, or tunnel constructed under this
                    subsection.''.

        (b) <<NOTE: Deadline. 23 USC 129 note.>> Electronic Toll Collection
    Interoperability Requirements.--Not later than 4 years after the date of
    enactment of this Act, all toll facilities on the Federal-aid highways
    shall implement technologies or business practices that provide for the
    interoperability of electronic toll collection programs.
    SEC. 1513. MISCELLANEOUS PARKING AMENDMENTS.

        (a) Fringe and Corridor Parking Facilities.--Section 137 of title
    23, United States Code, is amended--
                (1) in subsection (f)(1)--
                        (A) by striking ``104(b)(4)'' and inserting
                    ``104(b)(1)''; and
                        (B) by inserting ``including the addition of
                    electric vehicle charging stations or natural gas
                    vehicle refueling stations,'' after ``new facilities,'';
                    and
                (2) by adding at the end the following:

        ``(g) Funding.--The addition of electric vehicle charging stations
    or natural gas vehicle refueling stations to new or previously funded
    parking facilities shall be eligible for funding under this section.''.
        (b) Public Transportation.--Section 142(a)(1) of title 23, United
    States Code, is amended by inserting ``, which may include electric
    vehicle charging stations or natural gas vehicle refueling stations,''
    after ``parking facilities''.
        (c) Forest Development Roads and Trails.--Section 205(d) of title
    23, United States Code, is amended by inserting ``, which may include
    electric vehicle charging stations or natural gas vehicle refueling
    stations,'' after ``parking areas''.
    SEC. 1514. HOV FACILITIES.

        Section 166 of title 23, United States Code, is amended--
                (1) in subsection (b)(5)--
                        (A) in subparagraph (A) by striking ``2009'' and
                    inserting ``2017'';
                        (B) in subparagraph (B) by striking ``2009'' and
                    inserting ``2017''; and
                        (C) in subparagraph (C)--
                              (i) by striking ``subparagraph (B)'' and
                          inserting ``this paragraph''; and
                              (ii) by inserting ``or equal to'' after ``less
                          than'';
                (2) in subsection (c) by striking paragraph (3) and
            inserting the following:
                ``(3) Toll revenue.--Toll revenue collected under this
            section is subject to the requirements of section 129(a)(3).'';
            and
                (3) in subsection (d)(1)--
                        (A) in the matter preceding subparagraph (A)--
                              (i) by striking ``in a fiscal year shall
                          certify'' and inserting ``shall submit to the
                          Secretary a report demonstrating that the facility
                          is not already degraded, and that the presence of
                          the vehicles will not cause the facility to become
                          degraded, and certify''; and
                              (ii) by striking ``in the fiscal year'';

    [[Page 126 STAT. 573]]

                        (B) in subparagraph (A) by inserting ``and
                    submitting to the Secretary annual reports of those
                    impacts'' after ``adjacent highways'';
                        (C) in subparagraph (C) by striking ``if the
                    presence of the vehicles has degraded the operation of
                    the facility'' and inserting ``whenever the operation of
                    the facility is degraded''; and
                        (D) by adding at the end the following:
                        ``(D) <<NOTE: Deadline.>> Maintenance of operating
                    performance.--Not later than 180 days after the date on
                    which a facility is degraded pursuant to the standard
                    specified in paragraph (2), the State agency with
                    jurisdiction over the facility shall bring the facility
                    into compliance with the minimum average operating speed
                    performance standard through changes to operation of the
                    facility, including--
                              ``(i) increasing the occupancy requirement for
                          HOV lanes;
                              ``(ii) varying the toll charged to vehicles
                          allowed under subsection (b) to reduce demand;
                              ``(iii) discontinuing allowing non-HOV
                          vehicles to use HOV lanes under subsection (b); or
                              ``(iv) increasing the available capacity of
                          the HOV facility.
                        ``(E) Compliance.--If the State fails to bring a
                    facility into compliance under subparagraph (D), the
                    Secretary shall subject the State to appropriate program
                    sanctions under section 1.36 of title 23, Code of
                    Federal Regulations (or successor regulations), until
                    the performance is no longer degraded.''.
    SEC. 1515. FUNDING FLEXIBILITY FOR TRANSPORTATION EMERGENCIES.

        (a) In General.--Chapter 1 of title 23, United States Code (as
    amended by section 1311(a)), is amended by adding at the end the
    following:
    ``Sec. 170. Funding flexibility for transportation emergencies

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

    [[Page 126 STAT. 574]]

            than the repair or replacement of a transportation facility
            under this section.
                ``(2) Transportation facility.--The term `transportation
            facility' means any facility eligible for assistance under
            section 125.''.

        (b) Technical and Conforming Amendment.--The analysis for chapter 1
    of title 23, United States Code (as amended by section 1311(b)), is
    amended by adding at the end the following:

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

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

        The second sentence of section 210(a)(2) of title 23, United States
    Code, is amended by inserting ``, in consultation with the Secretary of
    Transportation,'' before ``shall determine''.
    SEC. 1517. MAPPING.

        (a) In General.--Section 306 of title 23, United States Code, is
    amended--
                (1) in subsection (a) by striking ``may'' and inserting
            ``shall'';
                (2) in subsection (b) in the second sentence by striking
            ``State and'' and inserting ``State government and''; and
                (3) by adding at the end the following:

        ``(c) <<NOTE: Compliance process.>> Implementation.--The Secretary
    shall develop a process for the oversight and monitoring, on an annual
    basis, of the compliance of each State with the guidance issued under
    subsection (b).''.

        (b) <<NOTE: Deadline.>> Survey.--Not later than 2 years after the
    date of enactment of this Act, the Secretary shall conduct a survey of
    all States to determine what percentage of projects carried out under
    title 23, United States Code, in each State utilize private sector
    sources for surveying and mapping services.
    SEC. 1518. BUY AMERICA PROVISIONS.

        Section 313 of title 23, United States Code, is amended by adding at
    the end the following:
        ``(g) Application to Highway Programs.--The requirements under this
    section shall apply to all contracts eligible for assistance under this
    chapter for a project carried out within the scope of the applicable
    finding, determination, or decision under the National Environmental
    Policy Act of 1969 (42 U.S.C. 4321 et seq.), regardless of the funding
    source of such contracts, if at least 1 contract for the project is
    funded with amounts made available to carry out this title.''.
    SEC. 1519. CONSOLIDATION OF PROGRAMS; REPEAL OF OBSOLETE
                              PROVISIONS.

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

    [[Page 126 STAT. 575]]

                        (B) to provide work zone safety grants in accordance
                    with subsections (a) and (b) of section 1409 of the
                    SAFETEA-LU (23 U.S.C. 401 note; 119 Stat. 1232); and
                (2) to operate authorized safety-related clearinghouses,
            including--
                        (A) the national work zone safety information
                    clearinghouse authorized by section 358(b)(2) of the
                    National Highway System Designation Act of 1995 (23
                    U.S.C. 401 note; 109 Stat. 625); and
                        (B) a public road safety clearinghouse in accordance
                    with section 1411(a) of the SAFETEA-LU (23 U.S.C. 402
                    note; 119 Stat. 1234).

        (b) Repeals.--
                (1) Title 23.--
                        (A) In general.--Sections 105, 110, 117, 124, 151,
                    155, 157, 160, 212, 216, 303, and 309 of title 23,
                    United States Code, are repealed.
                        (B) Set asides.--Section 118 of title 23, United
                    States Code, is amended--
                              (i) by striking subsection (c); and
                              (ii) by redesignating subsections (d) and (e)
                          as subsections (c) and (d), respectively.
                (2) SAFETEA-LU.--Sections 1302, 1305, 1306, 1803, 1804,
            1907, and 1958 of SAFETEA-LU <<NOTE: 23 USC 101 note, 103 note,
            137 note, 144 note.>> (Public Law 109-59) are repealed.
                (3) Additional.--Section 1132 of the Energy Independence and
            Security Act of 2007 (Public Law 110-140; 121 Stat. 1763) is
            repealed.

        (c) Conforming Amendments.--
                (1) Title analysis.--
                        (A) Chapter 1.--The analysis for chapter 1 of title
                    23, United States Code, is amended by striking the items
                    relating to sections 105, 110, 117, 124, 151, 155, 157,
                    and 160.
                        (B) Chapter 2.--The analysis for chapter 2 of title
                    23, United States Code, is amended by striking the items
                    relating to sections 212 and 216.
                        (C) Chapter 3.--The analysis for chapter 3 of title
                    23, United States Code, is amended by striking the items
                    relating to sections 303 and 309.
                (2) Table of contents.--The table of contents contained in
            section 1(b) of SAFETEA-LU (Public Law 109-59; 119 Stat. 1144)
            is amended by striking the items relating to sections 1302,
            1305, 1306, 1803, 1804, 1907, and 1958.
                (3) Section 104.--Section 104(e) of title 23, United States
            Code, is amended by striking ``, 105,''.
                (4) Section 109.--Section 109(q) of title 23, United States
            Code, is amended by striking ``in accordance with section 303
            or''.
                (5) Section 118.--Section 118(b) of title 23, United States
            Code, is amended--
                        (A) by striking paragraph (1) and all that follows
                    through the heading of paragraph (2); and
                        (B) by striking ``(other than for Interstate
                    construction)''.
                (6) Section 130.--Section 130 of title 23, United States
            Code, is amended--

    [[Page 126 STAT. 576]]

                        (A) in subsection (e) by striking ``section
                    104(b)(5)'' and inserting ``section 104(b)(3)'';
                        (B) in subsection (f)(1) by inserting ``as in effect
                    on the day before the date of enactment of the MAP-21''
                    after ``section 104(b)(3)(A)''; and
                        (C) in subsection (l) by striking paragraphs (3) and
                    (4).
                (7) Section 131.--Section 131(m) of title 23, United States
            Code, is amended by striking ``Subject to approval by the
            Secretary in accordance with the program of projects approval
            process of section 105, a State'' and inserting ``A State''.
                (8) Section 133.--Paragraph (13) of section 133(b) of title
            23, United States Code (as amended by section 1108(a)(3)), is
            amended by striking ``under section 303.''
                (9) Section 142.--Section 142 of title 23, United States
            Code, is amended--
                        (A) in subsection (a)--
                              (i) in paragraph (1)--
                                        (I) by striking ``motor vehicles
                                    (other than rail)'' and inserting
                                    ``buses'';
                                        (II) by striking ``(hereafter in
                                    this section referred to as `buses')'';
                                        (III) by striking ``Federal-aid
                                    systems'' and inserting ``Federal-aid
                                    highways''; and
                                        (IV) by striking ``Federal-aid
                                    system'' and inserting ``Federal-aid
                                    highway''; and
                              (ii) in paragraph (2)--
                                        (I) by striking ``as a project on
                                    the the surface transportation program
                                    for''; and
                                        (II) by striking ``section
                                    104(b)(3)'' and inserting ``section
                                    104(b)(2)'';
                        (B) in subsection (b) by striking ``104(b)(4)'' and
                    inserting ``104(b)(1)'';
                        (C) in subsection (c)--
                              (i) by striking ``system'' in each place it
                          appears and inserting ``highway''; and
                              (ii) by striking ``highway facilities'' and
                          inserting ``highways eligible under the program
                          that is the source of the funds'';
                        (D) in subsection (e)(2) by striking
                    ``Notwithstanding section 209(f)(1) of the Highway
                    Revenue Act of 1956, the Highway Trust Fund shall be
                    available for making expenditures to meet obligations
                    resulting from projects authorized by subsection (a)(2)
                    of this section and such projects'' and inserting
                    ``Projects authorized by subsection (a)(2)''; and
                        (E) in subsection (f) by striking ``exits'' and
                    inserting ``exists''.
                (10) Section 145.--Section 145(b) of title 23, United States
            Code, is amended by striking ``section 117 of this title,''.
                (11) Section 218.--Section 218 of title 23, United States
            Code, is amended--
                        (A) in subsection (a)--
                              (i) by striking the first two sentences;
                              (ii) in the third sentence--
                                        (I) by striking ``, in addition to
                                    such funds,''; and
                                        (II) by striking ``such highway
                                    or'';

    [[Page 126 STAT. 577]]

                              (iii) by striking the fourth sentence and
                          fifth sentences;
                        (B) by striking subsection (b); and
                        (C) by redesignating subsection (c) as subsection
                    (b).
                (12) Section 610.--Section 610(d)(1)(B) of title 23, United
            States Code, is amended by striking ``under section 105''.
    SEC. 1520. DENALI COMMISSION.

        The Denali Commission Act of 1998 (42 U.S.C. 3121 note) is amended--
                (1) in section 305, by striking subsection (c) and inserting
            the following:

        ``(c) Gifts.--
                ``(1) In general.--Except as provided in paragraph (2), the
            Commission, on behalf of the United States, may accept use, and
            dispose of gifts or donations of services, property, or money
            for purposes of carrying out this Act.
                ``(2) Conditional.--With respect to conditional gifts--
                        ``(A)(i) the Commission, on behalf of the United
                    States, may accept conditional gifts for purposes of
                    carrying out this Act, if approved by the Federal
                    Cochairperson; and
                        ``(ii) the principal of and income from any such
                    conditional gift shall be held, invested, reinvested,
                    and used in accordance with the condition applicable to
                    the gift; but
                        ``(B) no gift shall be accepted that is conditioned
                    on any expenditure not to be funded from the gift or
                    from the income generated by the gift unless the
                    expenditure has been approved by Act of Congress.''; and
                (2) by adding at the end the following:
    ``SEC. 311. TRANSFER OF FUNDS FROM OTHER FEDERAL AGENCIES.

        ``(a) In General.--Subject to subsection (c), for purposes of this
    Act, the Commission may accept transfers of funds from other Federal
    agencies.
        ``(b) Transfers.--Any Federal agency authorized to carry out an
    activity that is within the authority of the Commission may transfer to
    the Commission any appropriated funds for the activity.
        ``(c) Treatment.--Any funds transferred to the Commission under this
    subsection--
                ``(1) shall remain available until expended; and
                ``(2) may, to the extent necessary to carry out this Act, be
            transferred to, and merged with, the amounts made available by
            appropriations Acts for the Commission by the Federal
            Cochairperson.''.
    SEC. 1521. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
                              ACQUISITION POLICIES ACT OF 1970
                              AMENDMENTS.

        (a) Moving and Related Expenses.--Section 202 of the Uniform
    Relocation Assistance and Real Property Acquisition Policies Act of 1970
    (42 U.S.C. 4622) is amended--
                (1) in subsection (a)(4) by striking ``$10,000'' and
            inserting ``$25,000, as adjusted by regulation, in accordance
            with section 213(d)''; and
                (2) in the second sentence of subsection (c) by striking
            ``$20,000'' and inserting ``$40,000, as adjusted by regulation,
            in accordance with section 213(d)''.

    [[Page 126 STAT. 578]]

        (b) Replacement Housing for Homeowners.--The first sentence of
    section 203(a)(1) of the Uniform Relocation Assistance and Real Property
    Acquisition Policies Act of 1970 (42 U.S.C. 4623(a)(1)) is amended--
                (1) by striking ``$22,500'' and inserting ``$31,000, as
            adjusted by regulation, in accordance with 213(d),''; and
                (2) by striking ``one hundred and eighty days prior to'' and
            inserting ``90 days before''.

        (c) Replacement Housing for Tenants and Certain Others.--Section 204
    of the Uniform Relocation Assistance and Real Property Acquisition
    Policies Act of 1970 (42 U.S.C. 4624) is amended--
                (1) in the second sentence of subsection (a) by striking
            ``$5,250'' and inserting ``$7,200, as adjusted by regulation, in
            accordance with section 213(d)''; and
                (2) in the second sentence of subsection (b) by striking ``,
            except'' and all that follows through the end of the subsection
            and inserting a period.

        (d) Duties of Lead Agency.--Section 213 of the Uniform Relocation
    Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C.
    4633) is amended--
                (1) in subsection (b)--
                        (A) in paragraph (2) by striking ``and'' at the end;
                        (B) in paragraph (3) by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(4) that each Federal agency that has programs or projects
            requiring the acquisition of real property or causing a
            displacement from real property subject to the provisions of
            this Act shall provide to the lead agency an annual summary
            report the describes the activities conducted by the Federal
            agency.''; and
                (2) by adding at the end the following:

        ``(d) Adjustment of Payments.--The head of the lead agency may
    adjust, by regulation, the amounts of relocation payments provided under
    sections 202(a)(4), 202(c), 203(a), and 204(a) if the head of the lead
    agency determines that cost of living, inflation, or other factors
    indicate that the payments should be adjusted to meet the policy
    objectives of this Act.''.
        (e) Agency Coordination.--Title II of the Uniform Relocation
    Assistance and Real Property Acquisition Policies Act of 1970 is amended
    by inserting after section 213 (42 U.S.C. 4633) the following:
    ``SEC. 214. <<NOTE: 42 USC 4634.>> AGENCY COORDINATION.

        ``(a) Agency Capacity.--Each Federal agency responsible for funding
    or carrying out relocation and acquisition activities shall have
    adequately trained personnel and such other resources as are necessary
    to manage and oversee the relocation and acquisition program of the
    Federal agency in accordance with this Act.
        ``(b) <<NOTE: Deadline. Memorandum.>> Interagency Agreements.--Not
    later than 1 year after the date of enactment of this section, each
    Federal agency responsible for funding relocation and acquisition
    activities (other than the agency serving as the lead agency) shall
    enter into a memorandum of understanding with the lead agency that--
                ``(1) provides for periodic training of the personnel of the
            Federal agency, which in the case of a Federal agency that

    [[Page 126 STAT. 579]]

            provides Federal financial assistance, may include personnel of
            any displacing agency that receives Federal financial
            assistance;
                ``(2) addresses ways in which the lead agency may provide
            assistance and coordination to the Federal agency relating to
            compliance with the Act on a program or project basis; and
                ``(3) addresses the funding of the training, assistance, and
            coordination activities provided by the lead agency, in
            accordance with subsection (c).

        ``(c) Interagency Payments.--
                ``(1) In general.--For the fiscal year that begins 1 year
            after the date of enactment of this section, and each fiscal
            year thereafter, each Federal agency responsible for funding
            relocation and acquisition activities (other than the agency
            serving as the lead agency) shall transfer to the lead agency
            for the fiscal year, such funds as are necessary, but not less
            than $35,000, to support the training, assistance, and
            coordination activities of the lead agency described in
            subsection (b).
                ``(2) Included costs.--The cost to a Federal agency of
            providing the funds described in paragraph (1) shall be included
            as part of the cost of 1 or more programs or projects undertaken
            by the Federal agency or with Federal financial assistance that
            result in the displacement of persons or the acquisition of real
            property.''.

        (f) Cooperation With Federal Agencies.--Section 308 of title 23,
    United States Code, is amended by striking subsection (a) and inserting
    the following:
        ``(a) Authorized Activities.--
                ``(1) In general.--The Secretary may perform, by contract or
            otherwise, authorized engineering or other services in
            connection with the survey, construction, maintenance, or
            improvement of highways for other Federal agencies, cooperating
            foreign countries, and State cooperating agencies.
                ``(2) Inclusions.--Services authorized under paragraph (1)
            may include activities authorized under section 214 of the
            Uniform Relocation Assistance and Real Property Acquisition
            Policies Act of 1970.
                ``(3) Reimbursement.--Reimbursement for services carried out
            under this subsection (including depreciation on engineering and
            road-building equipment) shall be credited to the applicable
            appropriation.''.

        (g) <<NOTE: 23 USC 308 note.>> Effective Dates.--
                (1) In general.--Except as provided in paragraph (2), the
            amendments made by this section shall take effect on the date of
            enactment of this Act.
                (2) Exception.--The amendments made by subsections (a)
            through (c) shall take effect 2 years after the date of
            enactment of this Act.
    SEC. 1522. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE
                              WEIGHT RESTRICTIONS.

        Section 1023(h) of the Intermodal Surface Transportation Efficiency
    Act of 1991 (23 U.S.C. 127 note; Public Law 102-240) is amended--
                (1) in the heading of paragraph (1) by striking ``temporary
            exemption'' and inserting ``exemption'';
                (2) in paragraph (1)--

    [[Page 126 STAT. 580]]

                        (A) in the matter preceding subparagraph (A) by
                    striking ``, for the period beginning on October 6,
                    1992, and ending on October 1, 2009,'';
                        (B) in subparagraph (A) by striking ``or'' at the
                    end;
                        (C) in subparagraph (B) by striking the period at
                    the end and inserting ``; or''; and
                        (D) by adding at the end the following:
                        ``(C) any motor home (as defined in section 571.3 of
                    title 49, Code of Federal Regulations (or successor
                    regulation)).''; and
                (3) in paragraph (2)(A) by striking ``For the period
            beginning on the date of enactment of this subparagraph and
            ending on September 30, 2009, a'' and inserting ``A''.
    SEC. 1523. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.

        Section 1805(a) of the SAFETEA-LU (23 U.S.C. 144 note; 119 Stat.
    1459) is amended by striking ``highway bridge replacement and
    rehabilitation program under section 144'' and inserting ``national
    highway performance program under section 119''.
    SEC. 1524. <<NOTE: 23 USC 206 note.>> USE OF YOUTH SERVICE AND
                              CONSERVATION CORPS.

        (a) <<NOTE: Contracts.>> In General.--The Secretary shall encourage
    the States and regional transportation planning agencies to enter into
    contracts and cooperative agreements with qualified youth service or
    conservation corps, as defined in sections 122(a)(2) of Public Law 101-
    610 (42 U.S.C. 12572(a)(2)) and 106(c)(3) of Public Law 103-82 (42
    U.S.C. 12656(c)(3)) to perform appropriate projects eligible under
    sections 162, 206, 213, and 217 of title 23, United States Code, and
    under section 1404 of the SAFETEA-LU (119 Stat. 1228).

        (b) Requirements.--Under any contract or cooperative agreement
    entered into with a qualified youth service or conservation corps under
    this section, the Secretary shall--
                (1) set the amount of a living allowance or rate of pay for
            each participant in such corps at--
                        (A) such amount or rate as required under State law
                    in a State with such requirements; or
                        (B) for corps in States not described in
                    subparagraph (A), at such amount or rate as determined
                    by the Secretary, not to exceed the maximum living
                    allowance authorized by section 140 of Public Law 101-
                    610 (42 U.S.C. 12594); and
                (2) not subject such corps to the requirements of section
            112 of title 23, United States Code.
    SEC. 1525. <<NOTE: Deadline.>> STATE AUTONOMY FOR CULVERT PIPE
                              SELECTION.

        Not later than 180 days after the date of enactment of this Act, the
    Secretary shall modify section 635.411 of title 23, Code of Federal
    Regulations (as in effect on the date of enactment of this Act), to
    ensure that States shall have the autonomy to determine culvert and
    storm sewer material types to be included in the construction of a
    project on a Federal-aid highway.
    SEC. 1526. <<NOTE: 23 USC 104 note.>> EVACUATION ROUTES.

        Each State shall give adequate consideration to the needs of
    evacuation routes in the State, including such routes serving or
    adjacent to facilities operated by the Armed Forces, when allocating

    [[Page 126 STAT. 581]]

    funds apportioned to the State under title 23, United States Code, for
    the construction of Federal-aid highways.
    SEC. 1527. <<NOTE: 23 USC 106 note.>> CONSOLIDATION OF GRANTS.

        (a) Definitions.--In this section, the term ``recipient'' means--
                (1) a State, local, or tribal government, including--
                        (A) a territory of the United States;
                        (B) a transit agency;
                        (C) a port authority;
                        (D) a metropolitan planning organization; or
                        (E) any other political subdivision of a State or
                    local government;
                (2) a multistate or multijurisdictional group, if each
            member of the group is an entity described in paragraph (1); and
                (3) a public-private partnership, if both parties are
            engaged in building the project.

        (b) Consolidation.--
                (1) In general.--A recipient that receives multiple grant
            awards from the Department to support 1 multimodal project may
            request that the Secretary designate 1 modal administration in
            the Department to be the lead administering authority for the
            overall project.
                (2) New starts.--Any project that includes funds awarded
            under section 5309 of title 49, United States Code, shall be
            exempt from consolidation under this section unless the grant
            recipient requests the Federal Transit Administration to be the
            lead administering authority.
                (3) Review.--
                        (A) <<NOTE: Deadline.>> In general.--Not later than
                    30 days after the date on which a request under
                    paragraph (1) is made, the Secretary shall review the
                    request and approve or deny the designation of a single
                    modal administration as the lead administering authority
                    and point of contact for the Department.
                        (B) Notification.--
                              (i) In general.--The Secretary shall notify
                          the requestor of the decision of the Secretary
                          under subparagraph (A) in such form and at such
                          time as the Secretary and the requestor agree.
                              (ii) Denial.--If a request is denied, the
                          Secretary shall provide the requestor with a
                          detailed explanation of the reasoning of the
                          Secretary with the notification under clause (i).

        (c) Duties.--
                (1) In general.--A modal administration designated as a lead
            administering authority under this section shall--
                        (A) be responsible for leading and coordinating the
                    integrated project management team, which shall consist
                    of all of the other modal administrations in the
                    Department relating to the multimodal project; and
                        (B) to the extent feasible during the first 30 days
                    of carrying out the multimodal project, identify
                    overlapping or duplicative regulatory requirements that
                    exist for the project and propose a single, streamlined
                    approach to meeting all of the applicable regulatory
                    requirements through the activities described in
                    subsection (d).

    [[Page 126 STAT. 582]]

                (2) Administration.--
                        (A) In general.--The Secretary shall transfer all
                    amounts that have been awarded for the multimodal
                    project to the modal administration designated as the
                    lead administering authority.
                        (B) Option.--
                              (i) In general.--Participation under this
                          section shall be optional for recipients, and no
                          recipient shall be required to participate.
                              (ii) Secretarial duties.--The Secretary is not
                          required to identify every recipient that may be
                          eligible to participate under this section.

        (d) Cooperation.--
                (1) In general.--The Secretary and modal administrations
            with relevant jurisdiction over a multimodal project should
            cooperate on project review and delivery activities at the
            earliest practicable time.
                (2) Purposes.--The purposes of the cooperation under
            paragraph (1) are--
                        (A) to avoid delays and duplication of effort later
                    in the process;
                        (B) to prevent potential conflicts; and
                        (C) to ensure that planning and project development
                    decisions are made in a streamlined manner and
                    consistent with applicable law.

        (e) Applicability.--Nothing in this section shall--
                (1) supersede, amend, or modify the National Environmental
            Policy Act of 1969 (42 U.S.C. 4321 et seq.) or any other Federal
            environmental law; or
                (2) affect the responsibility of any Federal officer to
            comply with or enforce any law described in paragraph (1).
    SEC. 1528. <<NOTE: 40 USC 14501 note.>> APPALACHIAN DEVELOPMENT
                              HIGHWAY SYSTEM.

        (a) Sense of the Senate.--It is the Sense of the Senate that the
    timely completion of the Appalachian development highway system is a
    transportation priority in the national interest.
        (b) Modified Federal Share for Projects on ADHS.--For fiscal years
    2012 through 2021, the Federal share payable for the cost of
    constructing highways and access roads on the Appalachian development
    highway system under section 14501 of title 40, United States Code, with
    funds made available to a State for fiscal year 2012 or a previous
    fiscal year for the Appalachian development highway system program, or
    with funds made available for fiscal year 2012 or a previous fiscal year
    for a specific project, route, or corridor on that system, shall be 100
    percent.
        (c) Federal Share for Other Funds Used on ADHS.--For fiscal years
    2012 through 2021, the Federal share payable for the cost of
    constructing highways and access roads on the Appalachian development
    highway system under section 14501 of title 40, United States Code, with
    Federal funds apportioned to a State for a program other than the
    Appalachian development highway system program shall be 100 percent.
        (d) Completion Plan.--
                (1) <<NOTE: Deadline.>> In general.--Subject to paragraph
            (2), not later than 1 year after the date of enactment of the
            MAP-21, each State represented on the Appalachian Regional
            Commission shall establish a plan for the completion of the
            designated corridors

    [[Page 126 STAT. 583]]

            of the Appalachian development highway system within the State,
            including annual performance targets, with a target completion
            date.
                (2) Significant uncompleted miles.--If the percentage of
            remaining Appalachian development highway system needs for a
            State, according to the latest cost to complete estimate for the
            Appalachian development highway system, is greater than 15
            percent of the total cost to complete estimate for the entire
            Appalachian development highway system, the State shall not
            establish a plan under paragraph (1) that would result in a
            reduction of obligated funds for the Appalachian development
            highway system within the State for any subsequent fiscal year.
    SEC. 1529. <<NOTE: Deadline. Guidance. 23 USC 109
                              note.>> ENGINEERING JUDGMENT.

        Not later than 90 days after the date of enactment of this Act, the
    Secretary shall issue guidance to State transportation departments
    clarifying that the standards, guidance, and options for design and
    application of traffic control devices provided in the Manual on Uniform
    Traffic Control Devices should not be considered a substitute for
    engineering judgment.
    SEC. 1530. TRANSPORTATION TRAINING AND EMPLOYMENT PROGRAMS.

        To encourage the development of careers in the transportation field,
    the Secretary of Education and the Secretary of Labor are encouraged to
    use funds for training and employment education programs--
                (1) to develop programs for transportation-related careers
            and trades; and
                (2) to work with the Secretary to carry out programs
            developed under paragraph (1).
    SEC. 1531. NOTICE OF CERTAIN GRANT AWARDS.

        (a) Definition of Covered Grant Award.--In this section, the term
    ``covered grant award'' means a grant award--
                (1) made--
                        (A) by the Department; and
                        (B) with funds made available under this Act; and
                (2) in an amount equal to or greater than $500,000.

        (b) <<NOTE: Deadline.>> Notice.--Except to the extent otherwise
    expressly provided in another provision of law, at least 3 business days
    before a covered grant award is announced, the Secretary shall provide
    to the Committee on Transportation and Infrastructure of the House of
    Representatives and the Committee on Environment and Public Works of the
    Senate written notice of the covered grant award.
    SEC. 1532. <<NOTE: 49 USC 301 note.>> BUDGET JUSTIFICATION.

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

    [[Page 126 STAT. 584]]

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

        (a) Definition of Automated Traffic Enforcement System.--In this
    section, the term ``automated traffic enforcement system'' means any
    camera that captures an image of a vehicle for the purposes of traffic
    law enforcement.
        (b) Use of Funds.--Except as provided in subsection (c), for fiscal
    years 2013 and 2014, funds apportioned to a State under section
    104(b)(3) of title 23, United States Code, may not be used for any
    program to purchase, operate, or maintain an automated traffic
    enforcement system.
        (c) Exception.--Subsection (b) shall not apply to automated traffic
    enforcement systems used to improve safety in school zones.
    SEC. 1534. <<NOTE: 49 USC 301 note.>> PUBLIC-PRIVATE PARTNERSHIPS.

        (a) <<NOTE: Compilation. Public information. Web posting.>> Best
    Practices.--The Secretary shall compile, and make available to the
    public on the website of the Department, best practices on how States,
    public transportation agencies, and other public officials can work with
    the private sector in the development, financing, construction, and
    operation of transportation facilities.

        (b) Contents.--The best practices compiled under subsection (a)
    shall include polices and techniques to ensure that the interests of the
    traveling public and State and local governments are protected in any
    agreement entered into with the private sector for the development,
    financing, construction, and operation of transportation facilities.
        (c) Technical Assistance.--The Secretary, on request, may provide
    technical assistance to States, public transportation agencies, and
    other public officials regarding proposed public-private partnership
    agreements for the development, financing, construction, and operation
    of transportation facilities, including assistance in analyzing whether
    the use of a public-private partnership agreement would provide value
    compared with traditional public delivery methods.
        (d) <<NOTE: Deadline.>>  Standard Transaction Contracts.--
                (1) Development.--Not later than 18 months after the date of
            enactment of this Act, the Secretary shall develop standard
            public-private partnership transaction model contracts for the
            most popular types of public-private partnerships for the
            development, financing, construction, and operation of
            transportation facilities.
                (2) Use.--The Secretary shall encourage States, public
            transportation agencies, and other public officials to use the
            model contracts as a base template when developing their own
            public-private partnership agreements for the development,
            financing, construction, and operation of transportation
            facilities.
    SEC. 1535. <<NOTE: 23 USC 101 note.>> REPORT ON HIGHWAY TRUST FUND
                              EXPENDITURES.

        (a) Initial Report.--Not later than 150 days after the date of
    enactment of this Act, the Comptroller General of the United States
    shall submit to Congress a report describing the activities funded from
    the Highway Trust Fund during each of fiscal years 2009 through 2011,
    including for purposes other than construction and maintenance of
    highways and bridges.
        (b) <<NOTE: Time period.>> Updates.--Not later than 5 years after
    the date on which the report is submitted under subsection (a) and every
    5 years

    [[Page 126 STAT. 585]]

    thereafter, the Comptroller General of the United States shall submit to
    Congress a report that updates the information provided in the report
    under that subsection for the applicable 5-year period.

        (c) Inclusions.--A report submitted under subsection (a) or (b)
    shall include information similar to the information included in the
    report of the Government Accountability Office numbered ``GAO-09-729R''
    and entitled ``Highway Trust Fund Expenditures on Purposes Other Than
    Construction and Maintenance of Highways and Bridges During Fiscal Years
    2004-2008''.
    SEC. 1536. SENSE OF CONGRESS ON HARBOR MAINTENANCE.

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

        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the Administration should request full use of the Harbor
            Maintenance Trust Fund for operating and maintaining the
            navigation channels of the United States;
                (2) the amounts in the Harbor Maintenance Trust Fund should
            be fully expended to operate and maintain the navigation
            channels of the United States; and
                (3) Congress should ensure that other programs, projects,
            and activities of the Civil Works Program of the Corps of
            Engineers, especially those programs, projects, and activities
            relating to inland navigation and flood control, are not
            adversely impacted.
    SEC. 1537. <<NOTE: 33 USC 2238a.>> ESTIMATE OF HARBOR MAINTENANCE
                              NEEDS.

        For fiscal year 2014 and each fiscal year thereafter, the
    President's budget request submitted pursuant to section 1105 of title
    31, United States Code, shall include--

    [[Page 126 STAT. 586]]

                (1) an estimate of the nationwide average availability,
            expressed as a percentage, of the authorized depth and
            authorized width of all navigation channels authorized to be
            maintained using appropriations from the Harbor Maintenance
            Trust Fund that would result from harbor maintenance activities
            to be funded by the budget request; and
                (2) an estimate of the average annual amount of
            appropriations from the Harbor Maintenance Trust Fund that would
            be required to increase that average availability to 95 percent
            over a 3-year period.
    SEC. 1538. ASIAN CARP.

        (a) Definitions.--In this section:
                (1) Hydrological separation.--The term ``hydrological
            separation'' means a physical separation on the Chicago Area
            Waterway System that--
                        (A) would disconnect the Mississippi River watershed
                    from the Lake Michigan watershed; and
                        (B) shall be designed to be adequate in scope to
                    prevent the transfer of all aquatic species between each
                    of those bodies of water.
                (2) Secretary.--The term ``Secretary'' means the Secretary
            of the Army, acting through the Chief of Engineers.

        (b) Expedited Study and Report.--
                (1) In general.--The Secretary shall--
                        (A) expedite completion of the report for the study
                    authorized by section 3061(d) of the Water Resources
                    Development Act of 2007 (Public Law 110-114; 121 Stat.
                    1121); and
                        (B) if the Secretary determines a project is
                    justified in the completed report, proceed directly to
                    project preconstruction engineering and design.
                (2) Focus.--In expediting the completion of the study and
            report under paragraph (1), the Secretary shall focus on--
                        (A) the prevention of the spread of aquatic nuisance
                    species between the Great Lakes and Mississippi River
                    Basins, such as through the permanent hydrological
                    separation of the Great Lakes and Mississippi River
                    Basins; and
                        (B) the watersheds of the following rivers and
                    tributaries associated with the Chicago Area Waterway
                    System:
                              (i) The Illinois River, at and in the vicinity
                          of Chicago, Illinois.
                              (ii) The Chicago River, Calumet River, North
                          Shore Channel, Chicago Sanitary and Ship Canal,
                          and Cal-Sag Channel in the State of Illinois.
                              (iii) The Grand Calumet River and Little
                          Calumet River in the States of Illinois and
                          Indiana.
                (3) Efficient use of funds.--The Secretary shall ensure the
            efficient use of funds to maximize the timely completion of the
            study and report under paragraph (1).
                (4) Deadline.--The Secretary shall complete the report under
            paragraph (1) by not later than 18 months after the date of
            enactment of this Act.
                (5) Interim report.--Not later than 90 days after the date
            of enactment of this Act, the Secretary shall submit to

    [[Page 126 STAT. 587]]

            the Committees on Appropriations of the House of Representatives
            and Senate, the Committee on Environment and Public Works of the
            Senate, and the Committee on Transportation and Infrastructure
            of the House of Representatives a report describing--
                        (A) interim milestones that will be met prior to
                    final completion of the study and report under paragraph
                    (1); and
                        (B) funding necessary for completion of the study
                    and report under paragraph (1), including funding
                    necessary for completion of each interim milestone
                    identified under subparagraph (A).
    SEC. 1539. REST AREAS.

        (a) Agreements Relating to Use of and Access to Rights-of-way--
    Interstate System.--Section 111 of title 23, United States Code, is
    amended--
                (1) in subsection (a) in the second sentence by striking the
            period and inserting ``and will not change the boundary of any
            right-of-way on the Interstate System to accommodate
            construction of, or afford access to, an automotive service
            station or other commercial establishment.'';
                (2) by redesignating subsections (b) and (c) as subsections
            (c) and (d), respectively; and
                (3) by inserting after subsection (a) the following:

        ``(b) Rest Areas.--
                ``(1) In general.--Notwithstanding subsection (a), the
            Secretary shall permit a State to acquire, construct, operate,
            and maintain a rest area along a highway on the Interstate
            System in such State.
                ``(2) Limited activities.--The Secretary shall permit
            limited commercial activities within a rest area under paragraph
            (1), if the activities are available only to customers using the
            rest area and are limited to--
                        ``(A) commercial advertising and media displays if
                    such advertising and displays are--
                              ``(i) exhibited solely within any facility
                          constructed in the rest area; and
                              ``(ii) not legible from the main traveled way;
                        ``(B) items designed to promote tourism in the
                    State, limited to books, DVDs, and other media;
                        ``(C) tickets for events or attractions in the State
                    of a historical or tourism-related nature;
                        ``(D) travel-related information, including maps,
                    travel booklets, and hotel coupon booklets; and
                        ``(E) lottery machines, provided that the priority
                    afforded to blind vendors under subsection (c) applies
                    to this subparagraph.
                ``(3) Private operators.--A State may permit a private party
            to operate such commercial activities.
                ``(4) Limitation on use of revenues.--A State shall use any
            revenues received from the commercial activities in a rest area
            under this section to cover the costs of acquiring,
            constructing, operating, and maintaining rest areas in the
            State.''.

        (b) Control of Outdoor Advertising.--Section 131(i) of title 23,
    United States Code, is amended by adding at the end the following:

    [[Page 126 STAT. 588]]

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

     Subtitle F-- <<NOTE: Resources and Ecosystems Sustainability, Tourist
      Opportunities, and Revived Economies of the Gulf Coast States Act of
    2012.>> Gulf Coast Restoration
    SEC. 1601. <<NOTE: 33 USC 1321 note.>> SHORT TITLE.

        This subtitle may be cited as the ``Resources and Ecosystems
    Sustainability, Tourist Opportunities, and Revived Economies of the Gulf
    Coast States Act of 2012''.
    SEC. 1602. <<NOTE: 33 USC 1321 note.>> GULF COAST RESTORATION
                              TRUST FUND.

        (a) Establishment.--There is established in the Treasury of the
    United States a trust fund to be known as the ``Gulf Coast Restoration
    Trust Fund'' (referred to in this section as the ``Trust Fund''),
    consisting of such amounts as are deposited in the Trust Fund under this
    Act or any other provision of law.
        (b) Transfers.--The Secretary of the Treasury shall deposit in the
    Trust Fund an amount equal to 80 percent of all administrative and civil
    penalties paid by responsible parties after the date of enactment of
    this Act in connection with the explosion on, and sinking of, the mobile
    offshore drilling unit Deepwater Horizon pursuant to a court order,
    negotiated settlement, or other instrument in accordance with section
    311 of the Federal Water Pollution Control Act (33 U.S.C. 1321).
        (c) Expenditures.--Amounts in the Trust Fund, including interest
    earned on advances to the Trust Fund and proceeds from investment under
    subsection (d), shall--
                (1) be available for expenditure, without further
            appropriation, solely for the purpose and eligible activities of
            this subtitle and the amendments made by this subtitle; and
                (2) remain available until expended, without fiscal year
            limitation.

        (d) Investment.--Amounts in the Trust Fund shall be invested in
    accordance with section 9702 of title 31, United States Code, and any
    interest on, and proceeds from, any such investment shall be available
    for expenditure in accordance with this subtitle and the amendments made
    by this subtitle.
        (e) <<NOTE: Deadline. Procedures.>> Administration.--Not later than
    180 days after the date of enactment of this Act, after providing notice
    and an opportunity for public comment, the Secretary of the Treasury, in
    consultation with the Secretary of the Interior and the Secretary of
    Commerce, shall establish such procedures as the Secretary determines to
    be necessary to deposit amounts in, and expend amounts from, the Trust
    Fund pursuant to this subtitle, including--
                (1) procedures to assess whether the programs and activities
            carried out under this subtitle and the amendments made by this
            subtitle achieve compliance with applicable requirements,
            including procedures by which the Secretary of the Treasury may
            determine whether an expenditure by a Gulf

    [[Page 126 STAT. 589]]

            Coast State or coastal political subdivision (as those terms are
            defined in section 311 of the Federal Water Pollution Control
            Act (33 U.S.C. 1321)) pursuant to such a program or activity
            achieves compliance;
                (2) auditing requirements to ensure that amounts in the
            Trust Fund are expended as intended; and
                (3) procedures for identification and allocation of funds
            available to the Secretary under other provisions of law that
            may be necessary to pay the administrative expenses directly
            attributable to the management of the Trust Fund.

        (f) Sunset.--The authority for the Trust Fund shall terminate on the
    date all funds in the Trust Fund have been expended.
    SEC. 1603. <<NOTE: 33 USC 1321 note.>> GULF COAST NATURAL
                              RESOURCES RESTORATION AND ECONOMIC
                              RECOVERY.

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

    [[Page 126 STAT. 590]]

                        ``(C) all Federal waters in the Gulf of Mexico;
                ``(34) the term `Gulf Coast State' means any of the States
            of Alabama, Florida, Louisiana, Mississippi, and Texas; and
                ``(35) the term `Trust Fund' means the Gulf Coast
            Restoration Trust Fund established pursuant to section 1602 of
            the Resources and Ecosystems Sustainability, Tourist
            Opportunities, and Revived Economies of the Gulf Coast States
            Act of 2012.'';
                (2) in subsection (s), by inserting ``except as provided in
            subsection (t)'' before the period at the end; and
                (3) by adding at the end the following:

        ``(t) Gulf Coast Restoration and Recovery.--
                ``(1) State allocation and expenditures.--
                        ``(A) In general.--Of the total amounts made
                    available in any fiscal year from the Trust Fund, 35
                    percent shall be available, in accordance with the
                    requirements of this section, to the Gulf Coast States
                    in equal shares for expenditure for ecological and
                    economic restoration of the Gulf Coast region in
                    accordance with this subsection.
                        ``(B) Use of funds.--
                              ``(i) Eligible activities in the gulf coast
                          region.--Subject to clause (iii), amounts provided
                          to the Gulf Coast States under this subsection may
                          only be used to carry out 1 or more of the
                          following activities in the Gulf Coast region:
                                        ``(I) Restoration and protection of
                                    the natural resources, ecosystems,
                                    fisheries, marine and wildlife habitats,
                                    beaches, and coastal wetlands of the
                                    Gulf Coast region.
                                        ``(II) Mitigation of damage to fish,
                                    wildlife, and natural resources.
                                        ``(III) Implementation of a
                                    federally approved marine, coastal, or
                                    comprehensive conservation management
                                    plan, including fisheries monitoring.
                                        ``(IV) Workforce development and job
                                    creation.
                                        ``(V) Improvements to or on State
                                    parks located in coastal areas affected
                                    by the Deepwater Horizon oil spill.
                                        ``(VI) Infrastructure projects
                                    benefitting the economy or ecological
                                    resources, including port
                                    infrastructure.
                                        ``(VII) Coastal flood protection and
                                    related infrastructure.
                                        ``(VIII) Planning assistance.
                                        ``(IX) Administrative costs of
                                    complying with this subsection.
                              ``(ii) Activities to promote tourism and
                          seafood in the gulf coast region.--Amounts
                          provided to the Gulf Coast States under this
                          subsection may be used to carry out 1 or more of
                          the following activities:
                                        ``(I) Promotion of tourism in the
                                    Gulf Coast Region, including
                                    recreational fishing.
                                        ``(II) Promotion of the consumption
                                    of seafood harvested from the Gulf Coast
                                    Region.
                              ``(iii) Limitation.--
                                        ``(I) In general.--Of the amounts
                                    received by a Gulf Coast State under
                                    this subsection, not more

    [[Page 126 STAT. 591]]

                                    than 3 percent may be used for
                                    administrative costs eligible under
                                    clause (i)(IX).
                                        ``(II) Claims for compensation.--
                                    Activities funded under this subsection
                                    may not be included in any claim for
                                    compensation paid out by the Oil Spill
                                    Liability Trust Fund after the date of
                                    enactment of this subsection.
                        ``(C) Coastal political subdivisions.--
                              ``(i) Distribution.--In the case of a State
                          where the coastal zone includes the entire State--
                                        ``(I) 75 percent of funding shall be
                                    provided directly to the 8
                                    disproportionately affected counties
                                    impacted by the Deepwater Horizon oil
                                    spill; and
                                        ``(II) 25 percent shall be provided
                                    directly to nondisproportionately
                                    impacted counties within the State.
                              ``(ii) Nondisproportionately impacted
                          counties.--The total amounts made available to
                          coastal political subdivisions in the State of
                          Florida under clause (i)(II) shall be distributed
                          according to the following weighted formula:
                                        ``(I) 34 percent based on the
                                    weighted average of the population of
                                    the county.
                                        ``(II) 33 percent based on the
                                    weighted average of the county per
                                    capita sales tax collections estimated
                                    for fiscal year 2012.
                                        ``(III) 33 percent based on the
                                    inverse proportion of the weighted
                                    average distance from the Deepwater
                                    Horizon oil rig to each of the nearest
                                    and farthest points of the shoreline.
                        ``(D) Louisiana.--
                              ``(i) In general.--Of the total amounts made
                          available to the State of Louisiana under this
                          paragraph:
                                        ``(I) 70 percent shall be provided
                                    directly to the State in accordance with
                                    this subsection.
                                        ``(II) 30 percent shall be provided
                                    directly to parishes in the coastal zone
                                    (as defined in section 304 of the
                                    Coastal Zone Management Act of 1972 (16
                                    U.S.C. 1453)) of the State of Louisiana
                                    according to the following weighted
                                    formula:
                                                ``(aa) 40 percent based on
                                            the weighted average of miles of
                                            the parish shoreline oiled.
                                                ``(bb) 40 percent based on
                                            the weighted average of the
                                            population of the parish.
                                                ``(cc) 20 percent based on
                                            the weighted average of the land
                                            mass of the parish.
                              ``(ii) Conditions.--
                                        ``(I) Land use plan.--As a condition
                                    of receiving amounts allocated under
                                    this paragraph, the chief executive of
                                    the eligible parish shall certify to the
                                    Governor of the State that the parish
                                    has completed a comprehensive land use
                                    plan.
                                        ``(II) Other conditions.--A coastal
                                    political subdivision receiving funding
                                    under this paragraph shall meet all of
                                    the conditions in subparagraph (E).

    [[Page 126 STAT. 592]]

                        ``(E) Conditions.--As a condition of receiving
                    amounts from the Trust Fund, a Gulf Coast State,
                    including the entities described in subparagraph (F), or
                    a coastal political subdivision shall--
                              ``(i) agree to meet such conditions, including
                          audit requirements, as the Secretary of the
                          Treasury determines necessary to ensure that
                          amounts disbursed from the Trust Fund will be used
                          in accordance with this subsection;
                              ``(ii) <<NOTE: Certification.>> certify in
                          such form and in such manner as the Secretary of
                          the Treasury determines necessary that the project
                          or program for which the Gulf Coast State or
                          coastal political subdivision is requesting
                          amounts--
                                        ``(I) is designed to restore and
                                    protect the natural resources,
                                    ecosystems, fisheries, marine and
                                    wildlife habitats, beaches, coastal
                                    wetlands, or economy of the Gulf Coast;
                                        ``(II) carries out 1 or more of the
                                    activities described in clauses (i) and
                                    (ii) of subparagraph (B);
                                        ``(III) was selected based on
                                    meaningful input from the public,
                                    including broad-based participation from
                                    individuals, businesses, and nonprofit
                                    organizations; and
                                        ``(IV) in the case of a natural
                                    resource protection or restoration
                                    project, is based on the best available
                                    science;
                              ``(iii) <<NOTE: Certification.>> certify that
                          the project or program and the awarding of a
                          contract for the expenditure of amounts received
                          under this paragraph are consistent with the
                          standard procurement rules and regulations
                          governing a comparable project or program in that
                          State, including all applicable competitive
                          bidding and audit requirements; and
                              ``(iv) <<NOTE: Implementation plan.>> develop
                          and submit a multiyear implementation plan for the
                          use of such amounts, which may include milestones,
                          projected completion of each activity, and a
                          mechanism to evaluate the success of each activity
                          in helping to restore and protect the Gulf Coast
                          region impacted by the Deepwater Horizon oil
                          spill.
                        ``(F) Approval by state entity, task force, or
                    agency.--The following Gulf Coast State entities, task
                    forces, or agencies shall carry out the duties of a Gulf
                    Coast State pursuant to this paragraph:
                              ``(i) Alabama.--
                                        ``(I) In general.--In the State of
                                    Alabama, the Alabama Gulf Coast Recovery
                                    Council, which shall be comprised of
                                    only the following:
                                                ``(aa) The Governor of
                                            Alabama, who shall also serve as
                                            Chairperson and preside over the
                                            meetings of the Alabama Gulf
                                            Coast Recovery Council.
                                                ``(bb) The Director of the
                                            Alabama State Port Authority,
                                            who shall also serve as Vice
                                            Chairperson and preside over the
                                            meetings

    [[Page 126 STAT. 593]]

                                            of the Alabama Gulf Coast
                                            Recovery Council in the absence
                                            of the Chairperson.
                                                ``(cc) The Chairman of the
                                            Baldwin County Commission.
                                                ``(dd) The President of the
                                            Mobile County Commission.
                                                ``(ee) The Mayor of the city
                                            of Bayou La Batre.
                                                ``(ff) The Mayor of the town
                                            of Dauphin Island.
                                                ``(gg) The Mayor of the city
                                            of Fairhope.
                                                ``(hh) The Mayor of the city
                                            of Gulf Shores.
                                                ``(ii) The Mayor of the city
                                            of Mobile.
                                                ``(jj) The Mayor of the city
                                            of Orange Beach.
                                        ``(II) Vote.--Each member of the
                                    Alabama Gulf Coast Recovery Council
                                    shall be entitled to 1 vote.
                                        ``(III) Majority vote.--All
                                    decisions of the Alabama Gulf Coast
                                    Recovery Council shall be made by
                                    majority vote.
                                        ``(IV) Limitation on administrative
                                    expenses.--Administrative duties for the
                                    Alabama Gulf Coast Recovery Council may
                                    only be performed by public officials
                                    and employees that are subject to the
                                    ethics laws of the State of Alabama.
                              ``(ii) Louisiana.--In the State of Louisiana,
                          the Coastal Protection and Restoration Authority
                          of Louisiana.
                              ``(iii) Mississippi.--In the State of
                          Mississippi, the Mississippi Department of
                          Environmental Quality.
                              ``(iv) Texas.--In the State of Texas, the
                          Office of the Governor or an appointee of the
                          Office of the Governor.
                        ``(G) Compliance with eligible activities.--If the
                    Secretary of the Treasury determines that an expenditure
                    by a Gulf Coast State or coastal political subdivision
                    of amounts made available under this subsection does not
                    meet one of the activities described in clauses (i) and
                    (ii) of subparagraph (B), the Secretary shall make no
                    additional amounts from the Trust Fund available to that
                    Gulf Coast State or coastal political subdivision until
                    such time as an amount equal to the amount expended for
                    the unauthorized use--
                              ``(i) has been deposited by the Gulf Coast
                          State or coastal political subdivision in the
                          Trust Fund; or
                              ``(ii) has been authorized by the Secretary of
                          the Treasury for expenditure by the Gulf Coast
                          State or coastal political subdivision for a
                          project or program that meets the requirements of
                          this subsection.
                        ``(H) Compliance with conditions.--If the Secretary
                    of the Treasury determines that a Gulf Coast State or
                    coastal political subdivision does not meet the
                    requirements of this paragraph, including the conditions
                    of subparagraph (E), where applicable, the Secretary of
                    the Treasury shall make no amounts from the Trust Fund
                    available to that

    [[Page 126 STAT. 594]]

                    Gulf Coast State or coastal political subdivision until
                    all conditions of this paragraph are met.
                        ``(I) Public input.--In meeting any condition of
                    this paragraph, a Gulf Coast State may use an
                    appropriate procedure for public consultation in that
                    Gulf Coast State, including consulting with one or more
                    established task forces or other entities, to develop
                    recommendations for proposed projects and programs that
                    would restore and protect the natural resources,
                    ecosystems, fisheries, marine and wildlife habitats,
                    beaches, coastal wetlands, and economy of the Gulf
                    Coast.
                        ``(J) Previously approved projects and programs.--A
                    Gulf Coast State or coastal political subdivision shall
                    be considered to have met the conditions of subparagraph
                    (E) for a specific project or program if, before the
                    date of enactment of the Resources and Ecosystems
                    Sustainability, Tourist Opportunities, and Revived
                    Economies of the Gulf Coast States Act of 2012--
                              ``(i) the Gulf Coast State or coastal
                          political subdivision has established conditions
                          for carrying out projects and programs that are
                          substantively the same as the conditions described
                          in subparagraph (E); and
                              ``(ii) the applicable project or program
                          carries out 1 or more of the activities described
                          in clauses (i) and (ii) of subparagraph (B).
                        ``(K) <<NOTE: Contracts.>> Local preference.--In
                    awarding contracts to carry out a project or program
                    under this paragraph, a Gulf Coast State or coastal
                    political subdivision may give a preference to
                    individuals and companies that reside in, are
                    headquartered in, or are principally engaged in business
                    in the State of project execution.
                        ``(L) <<NOTE: Plan.>> Unused funds.--Funds allocated
                    to a State or coastal political subdivision under this
                    paragraph shall remain in the Trust Fund until such time
                    as the State or coastal political subdivision develops
                    and submits a plan identifying uses for those funds in
                    accordance with subparagraph (E)(iv).
                        ``(M) Judicial review.--If the Secretary of the
                    Treasury determines that a Gulf Coast State or coastal
                    political subdivision does not meet the requirements of
                    this paragraph, including the conditions of subparagraph
                    (E), the Gulf Coast State or coastal political
                    subdivision may obtain expedited judicial review within
                    90 days after that decision in a district court of the
                    United States, of appropriate jurisdiction and venue,
                    that is located within the State seeking the review.
                        ``(N) Cost-sharing.--
                              ``(i) In general.--A Gulf Coast State or
                          coastal political subdivision may use, in whole or
                          in part, amounts made available under this
                          paragraph to that Gulf Coast State or coastal
                          political subdivision to satisfy the non-Federal
                          share of the cost of any project or program
                          authorized by Federal law that is an eligible
                          activity described in clauses (i) and (ii) of
                          subparagraph (B).
                              ``(ii) Effect on other funds.--The use of
                          funds made available from the Trust Fund to
                          satisfy the

    [[Page 126 STAT. 595]]

                          non-Federal share of the cost of a project or
                          program that meets the requirements of clause (i)
                          shall not affect the priority in which other
                          Federal funds are allocated or awarded.
                ``(2) Council establishment and allocation.--
                        ``(A) In general.--Of the total amount made
                    available in any fiscal year from the Trust Fund, 30
                    percent shall be disbursed to the Council to carry out
                    the Comprehensive Plan.
                        ``(B) Council expenditures.--
                              ``(i) In general.--In accordance with this
                          paragraph, the Council shall expend funds made
                          available from the Trust Fund to undertake
                          projects and programs, using the best available
                          science, that would restore and protect the
                          natural resources, ecosystems, fisheries, marine
                          and wildlife habitats, beaches, coastal wetlands,
                          and economy of the Gulf Coast.
                              ``(ii) <<NOTE: Audits.>> Allocation and
                          expenditure procedures.--The Secretary of the
                          Treasury shall develop such conditions, including
                          audit requirements, as the Secretary of the
                          Treasury determines necessary to ensure that
                          amounts disbursed from the Trust Fund to the
                          Council to implement the Comprehensive Plan will
                          be used in accordance with this paragraph.
                              ``(iii) Administrative expenses.--Of the
                          amounts received by the Council under this
                          paragraph, not more than 3 percent may be used for
                          administrative expenses, including staff.
                        ``(C) Gulf coast ecosystem restoration council.--
                              ``(i) Establishment.--There is established as
                          an independent entity in the Federal Government a
                          council to be known as the `Gulf Coast Ecosystem
                          Restoration Council'.
                              ``(ii) Membership.--The Council shall consist
                          of the following members, or in the case of a
                          Federal agency, a designee at the level of the
                          Assistant Secretary or the equivalent:
                                        ``(I) The Secretary of the Interior.
                                        ``(II) The Secretary of the Army.
                                        ``(III) The Secretary of Commerce.
                                        ``(IV) The Administrator of the
                                    Environmental Protection Agency.
                                        ``(V) The Secretary of Agriculture.
                                        ``(VI) The head of the department in
                                    which the Coast Guard is operating.
                                        ``(VII) The Governor of the State of
                                    Alabama.
                                        ``(VIII) The Governor of the State
                                    of Florida.
                                        ``(IX) The Governor of the State of
                                    Louisiana.
                                        ``(X) The Governor of the State of
                                    Mississippi.
                                        ``(XI) The Governor of the State of
                                    Texas.
                              ``(iii) Alternate.--A Governor appointed to
                          the Council by the President may designate an
                          alternate to represent the Governor on the Council
                          and vote on behalf of the Governor.

                          ``(iv) <<NOTE: President. Appointment.>> Chairperso
                          n.--From among the Federal agency members of the
                          Council, the representatives of States on the
                          Council shall select, and the President

    [[Page 126 STAT. 596]]

                          shall appoint, 1 Federal member to serve as
                          Chairperson of the Council.
                              ``(v) Presidential appointment.--All Council
                          members shall be appointed by the President.
                              ``(vi) Council actions.--
                                        ``(I) In general.--The following
                                    actions by the Council shall require the
                                    affirmative vote of the Chairperson and
                                    a majority of the State members to be
                                    effective:
                                                ``(aa) Approval of a
                                            Comprehensive Plan and future
                                            revisions to a Comprehensive
                                            Plan.
                                                ``(bb) Approval of State
                                            plans pursuant to paragraph
                                            (3)(B)(iv).
                                                ``(cc) Approval of reports
                                            to Congress pursuant to clause
                                            (vii)(VII).
                                                ``(dd) Approval of transfers
                                            pursuant to subparagraph
                                            (E)(ii)(I).
                                                ``(ee) Other significant
                                            actions determined by the
                                            Council.
                                        ``(II) Quorum.--A majority of State
                                    members shall be required to be present
                                    for the Council to take any significant
                                    action.
                                        ``(III) Affirmative vote requirement
                                    considered met.--For approval of State
                                    plans pursuant to paragraph (3)(B)(iv),
                                    the certification by a State member of
                                    the Council that the plan satisfies all
                                    requirements of clauses (i) and (ii) of
                                    paragraph (3)(B), when joined by an
                                    affirmative vote of the Federal
                                    Chairperson of the Council, shall be
                                    considered to satisfy the requirements
                                    for affirmative votes under subclause
                                    (I).
                                        ``(IV) Public transparency.--
                                    Appropriate actions of the Council,
                                    including significant actions and
                                    associated deliberations, shall be made
                                    available to the public via electronic
                                    means prior to any vote.
                              ``(vii) Duties of council.--The Council
                          shall--
                                        ``(I) develop the Comprehensive Plan
                                    and future revisions to the
                                    Comprehensive Plan;
                                        ``(II) identify as soon as
                                    practicable the projects that--
                                                ``(aa) have been authorized
                                            prior to the date of enactment
                                            of this subsection but not yet
                                            commenced; and
                                                ``(bb) if implemented
                                            quickly, would restore and
                                            protect the natural resources,
                                            ecosystems, fisheries, marine
                                            and wildlife habitats, beaches,
                                            barrier islands, dunes, and
                                            coastal wetlands of the Gulf
                                            Coast region;
                                        ``(III) establish such other 1 or
                                    more advisory committees as may be
                                    necessary to assist the Council,
                                    including a scientific advisory
                                    committee and a committee to advise the
                                    Council on public policy issues;
                                        ``(IV) collect and consider
                                    scientific and other research associated
                                    with restoration of the Gulf Coast
                                    ecosystem, including research,
                                    observation,

    [[Page 126 STAT. 597]]

                                    and monitoring carried out pursuant to
                                    sections 1604 and 1605 of the Resources
                                    and Ecosystems Sustainability, Tourist
                                    Opportunities, and Revived Economies of
                                    the Gulf Coast States Act of 2012;
                                        ``(V) develop standard terms to
                                    include in contracts for projects and
                                    programs awarded pursuant to the
                                    Comprehensive Plan that provide a
                                    preference to individuals and companies
                                    that reside in, are headquartered in, or
                                    are principally engaged in business in a
                                    Gulf Coast State;
                                        ``(VI) prepare an integrated
                                    financial plan and recommendations for
                                    coordinated budget requests for the
                                    amounts proposed to be expended by the
                                    Federal agencies represented on the
                                    Council for projects and programs in the
                                    Gulf Coast States; and
                                        ``(VII) <<NOTE: Reports.>> submit to
                                    Congress an annual report that--
                                                ``(aa) summarizes the
                                            policies, strategies, plans, and
                                            activities for addressing the
                                            restoration and protection of
                                            the Gulf Coast region;
                                                ``(bb) describes the
                                            projects and programs being
                                            implemented to restore and
                                            protect the Gulf Coast region,
                                            including--
                                                    ``(AA) a list of each
                                                project and program;
                                                    ``(BB) an identification
                                                of the funding provided to
                                                projects and programs
                                                identified in subitem (AA);
                                                    ``(CC) an identification
                                                of each recipient for
                                                funding identified in
                                                subitem (BB); and
                                                    ``(DD) a description of
                                                the length of time and
                                                funding needed to complete
                                                the objectives of each
                                                project and program
                                                identified in subitem (AA);
                                                ``(cc) makes such
                                            recommendations to Congress for
                                            modifications of existing laws
                                            as the Council determines
                                            necessary to implement the
                                            Comprehensive Plan;
                                                ``(dd) reports on the
                                            progress on implementation of
                                            each project or program--
                                                    ``(AA) after 3 years of
                                                ongoing activity of the
                                                project or program, if
                                                applicable; and
                                                    ``(BB) on completion of
                                                the project or program;
                                                ``(ee) includes the
                                            information required to be
                                            submitted under section
                                            1605(c)(4) of the Resources and
                                            Ecosystems Sustainability,
                                            Tourist Opportunities, and
                                            Revived Economies of the Gulf
                                            Coast States Act of 2012; and
                                                ``(ff) submits the reports
                                            required under item (dd) to--
                                                    ``(AA) the Committee on
                                                Science, Space, and
                                                Technology, the Committee on

    [[Page 126 STAT. 598]]

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

                                    ``(I) <<NOTE: Deadline. Publication.>> In
                                     general.--Not later than 180 days after
                                    the date of enactment of the Resources
                                    and Ecosystems Sustainability, Tourist
                                    Opportunities, and Revived Economies of
                                    the Gulf Coast States Act of 2012, the
                                    Chairperson, on behalf of the Council
                                    and after appropriate public input,
                                    review, and comment, shall publish a
                                    proposed plan to restore and protect the
                                    natural resources, ecosystems,
                                    fisheries, marine and wildlife habitats,
                                    beaches, and coastal wetlands of the
                                    Gulf Coast region.
                                        ``(II) Inclusions.--The proposed
                                    plan described in subclause (I) shall
                                    include and incorporate the findings and
                                    information prepared by the President's
                                    Gulf Coast Restoration Task Force.
                              ``(ii) Publication.--
                                        ``(I) <<NOTE: Deadline. Federal
                                    Register, publication.>> Initial plan.--
                                    Not later than 1 year after the date of
                                    enactment of the Resources and
                                    Ecosystems Sustainability, Tourist
                                    Opportunities, and Revived Economies of
                                    the Gulf Coast States Act of 2012 and
                                    after notice and opportunity for public
                                    comment, the Chairperson, on behalf of
                                    the Council and after approval by the
                                    Council, shall publish in the Federal
                                    Register the initial Comprehensive Plan
                                    to restore and protect the natural
                                    resources, ecosystems, fisheries, marine
                                    and wildlife habitats, beaches, and
                                    coastal wetlands of the Gulf Coast
                                    region.
                                        ``(II) Cooperation with gulf coast
                                    restoration task force.--The Council
                                    shall develop the initial Comprehensive
                                    Plan in close coordination with the
                                    President's Gulf Coast Restoration Task
                                    Force.
                                        ``(III) Considerations.--In
                                    developing the initial Comprehensive
                                    Plan and subsequent updates, the Council
                                    shall consider all relevant findings,

    [[Page 126 STAT. 599]]

                                    reports, or research prepared or funded
                                    under section 1604 or 1605 of the
                                    Resources and Ecosystems Sustainability,
                                    Tourist Opportunities, and Revived
                                    Economies of the Gulf Coast States Act
                                    of 2012.
                                        ``(IV) Contents.--The initial
                                    Comprehensive Plan shall include--
                                                ``(aa) such provisions as
                                            are necessary to fully
                                            incorporate in the Comprehensive
                                            Plan the strategy, projects, and
                                            programs recommended by the
                                            President's Gulf Coast
                                            Restoration Task Force;
                                                ``(bb) a list of any project
                                            or program authorized prior to
                                            the date of enactment of this
                                            subsection but not yet
                                            commenced, the completion of
                                            which would further the purposes
                                            and goals of this subsection and
                                            of the Resources and Ecosystems
                                            Sustainability, Tourist
                                            Opportunities, and Revived
                                            Economies of the Gulf Coast
                                            States Act of 2012;
                                                ``(cc) a description of the
                                            manner in which amounts from the
                                            Trust Fund projected to be made
                                            available to the Council for the
                                            succeeding 10 years will be
                                            allocated; and
                                                ``(dd) subject to available
                                            funding in accordance with
                                            clause (iii), a prioritized list
                                            of specific projects and
                                            programs to be funded and
                                            carried out during the 3-year
                                            period immediately following the
                                            date of publication of the
                                            initial Comprehensive Plan,
                                            including a table that
                                            illustrates the distribution of
                                            projects and programs by the
                                            Gulf Coast State.
                                        ``(V) Plan updates.--The Council
                                    shall update--
                                                ``(aa) <<NOTE: Time
                                            period.>> the Comprehensive Plan
                                            every 5 years in a manner
                                            comparable to the manner
                                            established in this subparagraph
                                            for each 5-year period for which
                                            amounts are expected to be made
                                            available to the Gulf Coast
                                            States from the Trust Fund; and
                                                ``(bb) the 3-year list of
                                            projects and programs described
                                            in subclause (IV)(dd) annually.
                              ``(iii) Restoration priorities.--Except for
                          projects and programs described in clause
                          (ii)(IV)(bb), in selecting projects and programs
                          to include on the 3-year list described in clause
                          (ii)(IV)(dd), based on the best available science,
                          the Council shall give highest priority to
                          projects that address 1 or more of the following
                          criteria:
                                        ``(I) Projects that are projected to
                                    make the greatest contribution to
                                    restoring and protecting the natural
                                    resources, ecosystems, fisheries, marine
                                    and wildlife habitats, beaches, and
                                    coastal wetlands of the Gulf Coast
                                    region, without regard to geographic
                                    location within the Gulf Coast region.

    [[Page 126 STAT. 600]]

                                        ``(II) Large-scale projects and
                                    programs that are projected to
                                    substantially contribute to restoring
                                    and protecting the natural resources,
                                    ecosystems, fisheries, marine and
                                    wildlife habitats, beaches, and coastal
                                    wetlands of the Gulf Coast ecosystem.
                                        ``(III) Projects contained in
                                    existing Gulf Coast State comprehensive
                                    plans for the restoration and protection
                                    of natural resources, ecosystems,
                                    fisheries, marine and wildlife habitats,
                                    beaches, and coastal wetlands of the
                                    Gulf Coast region.
                                        ``(IV) Projects that restore long-
                                    term resiliency of the natural
                                    resources, ecosystems, fisheries, marine
                                    and wildlife habitats, beaches, and
                                    coastal wetlands most impacted by the
                                    Deepwater Horizon oil spill.
                        ``(E) Implementation.--
                              ``(i) In general.--The Council, acting through
                          the Federal agencies represented on the Council
                          and Gulf Coast States, shall expend funds made
                          available from the Trust Fund to carry out
                          projects and programs adopted in the Comprehensive
                          Plan.
                              ``(ii) Administrative responsibility.--
                                        ``(I) In general.--Primary authority
                                    and responsibility for each project and
                                    program included in the Comprehensive
                                    Plan shall be assigned by the Council to
                                    a Gulf Coast State represented on the
                                    Council or a Federal agency.
                                        ``(II) Transfer of amounts.--Amounts
                                    necessary to carry out each project or
                                    program included in the Comprehensive
                                    Plan shall be transferred by the
                                    Secretary of the Treasury from the Trust
                                    Fund to that Federal agency or Gulf
                                    Coast State as the project or program is
                                    implemented, subject to such conditions
                                    as the Secretary of the Treasury, in
                                    consultation with the Secretary of the
                                    Interior and the Secretary of Commerce,
                                    established pursuant to section 1602 of
                                    the Resources and Ecosystems
                                    Sustainability, Tourist Opportunities,
                                    and Revived Economies of the Gulf Coast
                                    States Act of 2012.
                                        ``(III) <<NOTE: Federal Register,
                                    publication.>> Limitation on
                                    transfers.--
                                                ``(aa) Grants to
                                            nongovernmental entities.--In
                                            the case of funds transferred to
                                            a Federal or State agency under
                                            subclause (II), the agency shall
                                            not make 1 or more grants or
                                            cooperative agreements to a
                                            nongovernmental entity if the
                                            total amount provided to the
                                            entity would equal or exceed 10
                                            percent of the total amount
                                            provided to the agency for that
                                            particular project or program,
                                            unless the 1 or more grants have
                                            been reported in accordance with
                                            item (bb).
                                                ``(bb) <<NOTE: Time
                                            period.>> Reporting of
                                            grantees.--At least 30 days
                                            prior to making a grant or
                                            entering into a cooperative
                                            agreement described in item
                                            (aa), the name of each grantee,
                                            including the

    [[Page 126 STAT. 601]]

                                            amount and purpose of each grant
                                            or cooperative agreement, shall
                                            be published in the Federal
                                            Register and delivered to the
                                            congressional committees listed
                                            in subparagraph
                                            (C)(vii)(VII)(ff).
                                                ``(cc) Annual reporting of
                                            grantees.--Annually, the name of
                                            each grantee, including the
                                            amount and purposes of each
                                            grant or cooperative agreement,
                                            shall be published in the
                                            Federal Register and delivered
                                            to Congress as part of the
                                            report submitted pursuant to
                                            subparagraph (C)(vii)(VII).
                                        ``(IV) Project and program
                                    limitation.--The Council, a Federal
                                    agency, or a State may not carry out a
                                    project or program funded under this
                                    paragraph outside of the Gulf Coast
                                    region.
                        ``(F) Coordination.--The Council and the Federal
                    members of the Council may develop memoranda of
                    understanding establishing integrated funding and
                    implementation plans among the member agencies and
                    authorities.
                ``(3) Oil spill restoration impact allocation.--
                        ``(A) In general.--
                              ``(i) Disbursement.--Of the total amount made
                          available from the Trust Fund, 30 percent shall be
                          disbursed pursuant to the formula in clause (ii)
                          to the Gulf Coast States on the approval of the
                          plan described in subparagraph (B)(i).
                              ``(ii) <<NOTE: Regulations.>> Formula.--
                          Subject to subparagraph (B), for each Gulf Coast
                          State, the amount disbursed under this paragraph
                          shall be based on a formula established by the
                          Council by regulation that is based on a weighted
                          average of the following criteria:
                                        ``(I) 40 percent based on the
                                    proportionate number of miles of
                                    shoreline in each Gulf Coast State that
                                    experienced oiling on or before April
                                    10, 2011, compared to the total number
                                    of miles of shoreline that experienced
                                    oiling as a result of the Deepwater
                                    Horizon oil spill.
                                        ``(II) 40 percent based on the
                                    inverse proportion of the average
                                    distance from the mobile offshore
                                    drilling unit Deepwater Horizon at the
                                    time of the explosion to the nearest and
                                    farthest point of the shoreline that
                                    experienced oiling of each Gulf Coast
                                    State.
                                        ``(III) 20 percent based on the
                                    average population in the 2010 decennial
                                    census of coastal counties bordering the
                                    Gulf of Mexico within each Gulf Coast
                                    State.
                              ``(iii) Minimum allocation.--The amount
                          disbursed to a Gulf Coast State for each fiscal
                          year under clause (ii) shall be at least 5 percent
                          of the total amounts made available under this
                          paragraph.
                        ``(B) Disbursement of funds.--
                              ``(i) <<NOTE: Expenditure plan.>> In
                          general.--The Council shall disburse amounts to
                          the respective Gulf Coast States in accordance
                          with the formula developed under subparagraph (A)
                          for projects, programs, and activities that will

    [[Page 126 STAT. 602]]

                          improve the ecosystems or economy of the Gulf
                          Coast region, subject to the condition that each
                          Gulf Coast State submits a plan for the
                          expenditure of amounts disbursed under this
                          paragraph that meets the following criteria:
                                        ``(I) All projects, programs, and
                                    activities included in the plan are
                                    eligible activities pursuant to clauses
                                    (i) and (ii) of paragraph (1)(B).
                                        ``(II) The projects, programs, and
                                    activities included in the plan
                                    contribute to the overall economic and
                                    ecological recovery of the Gulf Coast.
                                        ``(III) The plan takes into
                                    consideration the Comprehensive Plan and
                                    is consistent with the goals and
                                    objectives of the Plan, as described in
                                    paragraph (2)(B)(i).
                              ``(ii) Funding.--
                                        ``(I) In general.--Except as
                                    provided in subclause (II), the plan
                                    described in clause (i) may use not more
                                    than 25 percent of the funding made
                                    available for infrastructure projects
                                    eligible under subclauses (VI) and (VII)
                                    of paragraph (1)(B)(i).
                                        ``(II) Exception.--The plan
                                    described in clause (i) may propose to
                                    use more than 25 percent of the funding
                                    made available for infrastructure
                                    projects eligible under subclauses (VI)
                                    and (VII) of paragraph (1)(B)(i) if the
                                    plan certifies that--
                                                ``(aa) ecosystem restoration
                                            needs in the State will be
                                            addressed by the projects in the
                                            proposed plan; and
                                                ``(bb) additional investment
                                            in infrastructure is required to
                                            mitigate the impacts of the
                                            Deepwater Horizon Oil Spill to
                                            the ecosystem or economy.
                              ``(iii) <<NOTE: State
                          listing.>> Development.--The plan described in
                          clause (i) shall be developed by--
                                        ``(I) in the State of Alabama, the
                                    Alabama Gulf Coast Recovery Council
                                    established under paragraph (1)(F)(i);
                                        ``(II) in the State of Florida, a
                                    consortia of local political
                                    subdivisions that includes at a minimum
                                    1 representative of each affected
                                    county;
                                        ``(III) in the State of Louisiana,
                                    the Coastal Protection and Restoration
                                    Authority of Louisiana;
                                        ``(IV) in the State of Mississippi,
                                    the Office of the Governor or an
                                    appointee of the Office of the Governor;
                                    and
                                        ``(V) in the State of Texas, the
                                    Office of the Governor or an appointee
                                    of the Office of the Governor.
                              ``(iv) <<NOTE: Deadline.>> Approval.--Not
                          later than 60 days after the date on which a plan
                          is submitted under clause (i), the Council shall
                          approve or disapprove the plan based on the
                          conditions of clause (i).
                        ``(C) Disapproval.--If the Council disapproves a
                    plan pursuant to subparagraph (B)(iv), the Council
                    shall--
                              ``(i) provide the reasons for disapproval in
                          writing; and

    [[Page 126 STAT. 603]]

                              ``(ii) <<NOTE: Consultation.>> consult with
                          the State to address any identified deficiencies
                          with the State plan.
                        ``(D) Failure to submit adequate plan.--If a State
                    fails to submit an adequate plan under this paragraph,
                    any funds made available under this paragraph shall
                    remain in the Trust Fund until such date as a plan is
                    submitted and approved pursuant to this paragraph.
                        ``(E) <<NOTE: Deadlines.>> Judicial review.--If the
                    Council fails to approve or take action within 60 days
                    on a plan, as described in subparagraph (B)(iv), the
                    State may obtain expedited judicial review within 90
                    days of that decision in a district court of the United
                    States, of appropriate jurisdiction and venue, that is
                    located within the State seeking the review.
                        ``(F) Cost-sharing.--
                              ``(i) In general.--A Gulf Coast State or
                          coastal political subdivision may use, in whole or
                          in part, amounts made available to that Gulf Coast
                          State or coastal political subdivision under this
                          paragraph to satisfy the non-Federal share of any
                          project or program that--
                                        ``(I) is authorized by other Federal
                                    law; and
                                        ``(II) is an eligible activity
                                    described in clause (i) or (ii) of
                                    paragraph (1)(B).
                              ``(ii) Effect on other funds.--The use of
                          funds made available from the Trust Fund under
                          this paragraph to satisfy the non-Federal share of
                          the cost of a project or program described in
                          clause (i) shall not affect the priority in which
                          other Federal funds are allocated or awarded.
                ``(4) Authorization of interest transfers.--Of the total
            amount made available for any fiscal year from the Trust Fund
            that is equal to the interest earned by the Trust Fund and
            proceeds from investments made by the Trust Fund in the
            preceding fiscal year--
                        ``(A) 50 percent shall be divided equally between--
                              ``(i) the Gulf Coast Ecosystem Restoration
                          Science, Observation, Monitoring, and Technology
                          program authorized in section 1604 of the
                          Resources and Ecosystems Sustainability, Tourist
                          Opportunities, and Revived Economies of the Gulf
                          Coast States Act of 2012; and
                              ``(ii) the centers of excellence research
                          grants authorized in section 1605 of that Act; and
                        ``(B) 50 percent shall be made available to the Gulf
                    Coast Ecosystem Restoration Council to carry out the
                    Comprehensive Plan pursuant to paragraph (2).''.
    SEC. 1604. <<NOTE: 33 USC 1321 note.>> GULF COAST ECOSYSTEM
                              RESTORATION SCIENCE, OBSERVATION,
                              MONITORING, AND TECHNOLOGY PROGRAM.

        (a) Definitions.--In this section:
                (1) Administrator.--The term ``Administrator'' means the
            Administrator of the National Oceanic and Atmospheric
            Administration.
                (2) Commission.--The term ``Commission'' means the Gulf
            States Marine Fisheries Commission.

    [[Page 126 STAT. 604]]

                (3) Director.--The term ``Director'' means the Director of
            the United States Fish and Wildlife Service.
                (4) Program.--The term ``program'' means the Gulf Coast
            Ecosystem Restoration Science, Observation, Monitoring, and
            Technology program established under this section.

        (b) Establishment of Program.--
                (1) <<NOTE: Deadline.>> In general.--Not later than 180 days
            after the date of enactment of this Act, the Administrator, in
            consultation with the Director, shall establish the Gulf Coast
            Ecosystem Restoration Science, Observation, Monitoring, and
            Technology program to carry out research, observation, and
            monitoring to support, to the maximum extent practicable, the
            long-term sustainability of the ecosystem, fish stocks, fish
            habitat, and the recreational, commercial, and charter fishing
            industry in the Gulf of Mexico.
                (2) Expenditure of funds.--For each fiscal year, amounts
            made available to carry out this subsection may be expended for,
            with respect to the Gulf of Mexico--
                        (A) marine and estuarine research;
                        (B) marine and estuarine ecosystem monitoring and
                    ocean observation;
                        (C) data collection and stock assessments;
                        (D) pilot programs for--
                              (i) fishery independent data; and
                              (ii) reduction of exploitation of spawning
                          aggregations; and
                        (E) cooperative research.
                (3) Cooperation with the commission.--For each fiscal year,
            amounts made available to carry out this subsection may be
            transferred to the Commission to establish a fisheries
            monitoring and research program, with respect to the Gulf of
            Mexico.
                (4) Consultation.--The Administrator and the Director shall
            consult with the Regional Gulf of Mexico Fishery Management
            Council and the Commission in carrying out the program.

        (c) Species Included.--The research, monitoring, assessment, and
    programs eligible for amounts made available under the program shall
    include all marine, estuarine, aquaculture, and fish species in State
    and Federal waters of the Gulf of Mexico.
        (d) Research Priorities.--In distributing funding under this
    subsection, priority shall be given to integrated, long-term projects
    that--
                (1) build on, or are coordinated with, related research
            activities; and
                (2) address current or anticipated marine ecosystem,
            fishery, or wildlife management information needs.

        (e) Duplication.--In carrying out this section, the Administrator,
    in consultation with the Director, shall seek to avoid duplication of
    other research and monitoring activities.
        (f) <<NOTE: Plan. State listing.>> Coordination With Other
    Programs.--The Administrator, in consultation with the Director, shall
    develop a plan for the coordination of projects and activities between
    the program and other existing Federal and State science and technology
    programs in the States of Alabama, Florida, Louisiana, Mississippi, and
    Texas, as well as between the centers of excellence.

        (g) Limitation on Expenditures.--

    [[Page 126 STAT. 605]]

                (1) In general.--Not more than 3 percent of funds provided
            in subsection (h) shall be used for administrative expenses.
                (2) NOAA.--The funds provided in subsection (h) may not be
            used--
                        (A) for any existing or planned research led by the
                    National Oceanic and Atmospheric Administration, unless
                    agreed to in writing by the grant recipient;
                        (B) to implement existing regulations or initiate
                    new regulations promulgated or proposed by the National
                    Oceanic and Atmospheric Administration; or
                        (C) to develop or approve a new limited access
                    privilege program (as that term is used in section 303A
                    of the Magnuson-Stevens Fishery Conservation and
                    Management Act (16 U.S.C. 1853a)) for any fishery under
                    the jurisdiction of the South Atlantic, Mid-Atlantic,
                    New England, or Gulf of Mexico Fishery Management
                    Councils.

        (h) Funding.--Of the total amount made available for each fiscal
    year for the Gulf Coast Restoration Trust Fund established under section
    1602, 2.5 percent shall be available to carry out the program.
        (i) Sunset.--The program shall cease operations when all funds in
    the Gulf Coast Restoration Trust Fund established under section 1602
    have been expended.
    SEC. 1605. <<NOTE: 33 USC 1321 note.>> CENTERS OF EXCELLENCE
                              RESEARCH GRANTS.

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

    [[Page 126 STAT. 606]]

            (1) shall submit to a Gulf Coast State an application at such
            time, in such manner, and containing such information as the
            Gulf Coast State determines to be appropriate.
                (3) Priority.--In awarding grants under this subsection, a
            Gulf Coast State shall give priority to entities and consortia
            that demonstrate the ability to establish the broadest cross-
            section of participants with interest and expertise in any
            discipline described in subsection (d) on which the proposal of
            the center of excellence will be focused.
                (4) Reporting.--
                        (A) In general.--Each Gulf Coast State shall provide
                    annually to the Gulf Coast Ecosystem Restoration Council
                    established under section 311(t)(2)(C) of the Federal
                    Water Pollution Control Act (as added by section 1603 of
                    the Resources and Ecosystems Sustainability, Tourist
                    Opportunities, and Revived Economies of the Gulf Coast
                    States Act of 2012) information regarding all grants,
                    including the amount, discipline or disciplines, and
                    recipients of the grants, and in the case of any grant
                    awarded to a consortium, the membership of the
                    consortium.
                        (B) Inclusion.--The Gulf Coast Ecosystem Restoration
                    Council shall include the information received under
                    subparagraph (A) in the annual report to Congress of the
                    Council required under section 311(t)(2)(C)(vii)(VII) of
                    the Federal Water Pollution Control Act (as added by
                    section 1603 of the Resources and Ecosystems
                    Sustainability, Tourist Opportunities, and Revived
                    Economies of the Gulf Coast States Act of 2012).

        (d) Disciplines.--Each center of excellence shall focus on science,
    technology, and monitoring in at least 1 of the following disciplines:
                (1) Coastal and deltaic sustainability, restoration and
            protection, including solutions and technology that allow
            citizens to live in a safe and sustainable manner in a coastal
            delta in the Gulf Coast Region.
                (2) Coastal fisheries and wildlife ecosystem research and
            monitoring in the Gulf Coast Region.
                (3) Offshore energy development, including research and
            technology to improve the sustainable and safe development of
            energy resources in the Gulf of Mexico.
                (4) Sustainable and resilient growth, economic and
            commercial development in the Gulf Coast Region.
                (5) Comprehensive observation, monitoring, and mapping of
            the Gulf of Mexico.
    SEC. 1606. <<NOTE: 33 USC 1321 note.>> EFFECT.

        (a) Definition of Deepwater Horizon Oil Spill.--In this section, the
    term ``Deepwater Horizon oil spill'' has the meaning given the term in
    section 311(a) of the Federal Water Pollution Control Act (33 U.S.C.
    1321(a)).
        (b) Effect and Application.--Nothing in this subtitle or any
    amendment made by this subtitle--
                (1) supersedes or otherwise affects any other provision of
            Federal law, including, in particular, laws providing recovery
            for injury to natural resources under the Oil Pollution Act of
            1990 (33 U.S.C. 2701 et seq.) and laws for the protection of
            public health and the environment; or

    [[Page 126 STAT. 607]]

                (2) applies to any fine collected under section 311 of the
            Federal Water Pollution Control Act (33 U.S.C. 1321) for any
            incident other than the Deepwater Horizon oil spill.

        (c) Use of Funds.--Funds made available under this subtitle may be
    used only for eligible activities specifically authorized by this
    subtitle and the amendments made by this subtitle.
    SEC. 1607. <<NOTE: 33 USC 1321 note.>> RESTORATION AND PROTECTION
                              ACTIVITY LIMITATIONS.

        (a) Willing Seller.--Funds made available under this subtitle may
    only be used to acquire land or interests in land by purchase, exchange,
    or donation from a willing seller.
        (b) Acquisition of Federal Land.--None of the funds made available
    under this subtitle may be used to acquire land in fee title by the
    Federal Government unless--
                (1) the land is acquired by exchange or donation; or
                (2) the acquisition is necessary for the restoration and
            protection of the natural resources, ecosystems, fisheries,
            marine and wildlife habitats, beaches, and coastal wetlands of
            the Gulf Coast region and has the concurrence of the Governor of
            the State in which the acquisition will take place.
    SEC. 1608. <<NOTE: Audits. Investigations. 33 USC 1321
                              note.>> INSPECTOR GENERAL.

        The Office of the Inspector General of the Department of the
    Treasury shall have authority to conduct, supervise, and coordinate
    audits and investigations of projects, programs, and activities funded
    under this subtitle and the amendments made by this subtitle.

      TITLE II-- <<NOTE: America Fast Forward Financing Innovation Act of
    2012.>> AMERICA FAST FORWARD FINANCING INNOVATION
    SEC. 2001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

        This title may be cited as the ``America Fast Forward Financing
    Innovation Act of 2012''.
    SEC. 2002. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION
                              ACT OF 1998 AMENDMENTS.

        Sections 601 through 609 of title 23, United States Code, are
    amended to read as follows:
    ``Sec. 601. Generally applicable provisions

        ``(a) Definitions.--In this chapter, the following definitions
    apply:
                ``(1) Contingent commitment.--The term `contingent
            commitment' means a commitment to obligate an amount from future
            available budget authority that is--
                        ``(A) contingent on those funds being made available
                    in law at a future date; and
                        ``(B) not an obligation of the Federal Government.
                ``(2) Eligible project costs.--The term `eligible project
            costs' means amounts substantially all of which are paid by, or
            for the account of, an obligor in connection with a project,
            including the cost of--
                        ``(A) development phase activities, including
                    planning, feasibility analysis, revenue forecasting,
                    environmental

    [[Page 126 STAT. 608]]

                    review, permitting, preliminary engineering and design
                    work, and other preconstruction activities;
                        ``(B) construction, reconstruction, rehabilitation,
                    replacement, and acquisition of real property (including
                    land relating to the project and improvements to land),
                    environmental mitigation, construction contingencies,
                    and acquisition of equipment; and
                        ``(C) capitalized interest necessary to meet market
                    requirements, reasonably required reserve funds, capital
                    issuance expenses, and other carrying costs during
                    construction.
                ``(3) Federal credit instrument.--The term `Federal credit
            instrument' means a secured loan, loan guarantee, or line of
            credit authorized to be made available under this chapter with
            respect to a project.
                ``(4) Investment-grade rating.--The term `investment-grade
            rating' means a rating of BBB minus, Baa3, bbb minus, BBB (low),
            or higher assigned by a rating agency to project obligations.
                ``(5) Lender.--The term `lender' means any non-Federal
            qualified institutional buyer (as defined in section 230.144A(a)
            of title 17, Code of Federal Regulations (or any successor
            regulation), known as Rule 144A(a) of the Securities and
            Exchange Commission and issued under the Securities Act of 1933
            (15 U.S.C. 77a et seq.)), including--
                        ``(A) a qualified retirement plan (as defined in
                    section 4974(c) of the Internal Revenue Code of 1986)
                    that is a qualified institutional buyer; and
                        ``(B) a governmental plan (as defined in section
                    414(d) of the Internal Revenue Code of 1986) that is a
                    qualified institutional buyer.
                ``(6) Letter of interest.--The term `letter of interest'
            means a letter submitted by a potential applicant prior to an
            application for credit assistance in a format prescribed by the
            Secretary on the website of the TIFIA program that--
                        ``(A) describes the project and the location,
                    purpose, and cost of the project;
                        ``(B) outlines the proposed financial plan,
                    including the requested credit assistance and the
                    proposed obligor;
                        ``(C) provides a status of environmental review; and
                        ``(D) provides information regarding satisfaction of
                    other eligibility requirements of the TIFIA program.
                ``(7) Line of credit.--The term `line of credit' means an
            agreement entered into by the Secretary with an obligor under
            section 604 to provide a direct loan at a future date upon the
            occurrence of certain events.
                ``(8) Limited buydown.--The term `limited buydown' means,
            subject to the conditions described in section 603(b)(4)(C), a
            buydown of the interest rate by the obligor if the interest rate
            has increased between--
                        ``(A)(i) the date on which a project application
                    acceptable to the Secretary is submitted; or
                        ``(ii) the date on which the Secretary entered into
                    a master credit agreement; and
                        ``(B) the date on which the Secretary executes the
                    Federal credit instrument.

    [[Page 126 STAT. 609]]

                ``(9) Loan guarantee.--The term `loan guarantee' means any
            guarantee or other pledge by the Secretary to pay all or part of
            the principal of and interest on a loan or other debt obligation
            issued by an obligor and funded by a lender.
                ``(10) Master credit agreement.--The term `master credit
            agreement' means an agreement to extend credit assistance for a
            program of projects secured by a common security pledge (which
            shall receive an investment grade rating from a rating agency),
            or for a single project covered under section 602(b)(2) that
            would--
                        ``(A) make contingent commitments of 1 or more
                    secured loans or other Federal credit instruments at
                    future dates, subject to the availability of future
                    funds being made available to carry out this chapter;
                        ``(B) establish the maximum amounts and general
                    terms and conditions of the secured loans or other
                    Federal credit instruments;
                        ``(C) identify the 1 or more dedicated non-Federal
                    revenue sources that will secure the repayment of the
                    secured loans or secured Federal credit instruments;
                        ``(D) provide for the obligation of funds for the
                    secured loans or secured Federal credit instruments
                    after all requirements have been met for the projects
                    subject to the master credit agreement, including--
                              ``(i) completion of an environmental impact
                          statement or similar analysis required under the
                          National Environmental Policy Act of 1969 (42
                          U.S.C. 4321 et seq.);
                              ``(ii) compliance with such other requirements
                          as are specified in section 602(c); and
                              ``(iii) the availability of funds to carry out
                          this chapter; and
                        ``(E) require that contingent commitments result in
                    a financial close and obligation of credit assistance
                    not later than 3 years after the date of entry into the
                    master credit agreement, or release of the commitment,
                    unless otherwise extended by the Secretary.
                ``(11) Obligor.--The term `obligor' means a party that--
                        ``(A) is primarily liable for payment of the
                    principal of or interest on a Federal credit instrument;
                    and
                        ``(B) may be a corporation, partnership, joint
                    venture, trust, or governmental entity, agency, or
                    instrumentality.
                ``(12) Project.--The term `project' means--
                        ``(A) any surface transportation project eligible
                    for Federal assistance under this title or chapter 53 of
                    title 49;
                        ``(B) a project for an international bridge or
                    tunnel for which an international entity authorized
                    under Federal or State law is responsible;
                        ``(C) a project for intercity passenger bus or rail
                    facilities and vehicles, including facilities and
                    vehicles owned by the National Railroad Passenger
                    Corporation and components of magnetic levitation
                    transportation systems; and
                        ``(D) a project that--
                              ``(i) is a project--
                                        ``(I) for a public freight rail
                                    facility or a private facility providing
                                    public benefit for highway users

    [[Page 126 STAT. 610]]

                                    by way of direct freight interchange
                                    between highway and rail carriers;
                                        ``(II) for an intermodal freight
                                    transfer facility;
                                        ``(III) for a means of access to a
                                    facility described in subclause (I) or
                                    (II);
                                        ``(IV) for a service improvement for
                                    a facility described in subclause (I) or
                                    (II) (including a capital investment for
                                    an intelligent transportation system);
                                    or
                                        ``(V) that comprises a series of
                                    projects described in subclauses (I)
                                    through (IV) with the common objective
                                    of improving the flow of goods;
                              ``(ii) may involve the combining of private
                          and public sector funds, including investment of
                          public funds in private sector facility
                          improvements;
                              ``(iii) if located within the boundaries of a
                          port terminal, includes only such surface
                          transportation infrastructure modifications as are
                          necessary to facilitate direct intermodal
                          interchange, transfer, and access into and out of
                          the port; and
                              ``(iv) is composed of related highway, surface
                          transportation, transit, rail, or intermodal
                          capital improvement projects eligible for
                          assistance under this section in order to meet the
                          eligible project cost threshold under section 602,
                          by grouping related projects together for that
                          purpose, subject to the condition that the credit
                          assistance for the projects is secured by a common
                          pledge.
                ``(13) Project obligation.--The term `project obligation'
            means any note, bond, debenture, or other debt obligation issued
            by an obligor in connection with the financing of a project,
            other than a Federal credit instrument.
                ``(14) Rating agency.--The term `rating agency' means a
            credit rating agency registered with the Securities and Exchange
            Commission as a nationally recognized statistical rating
            organization (as that term is defined in section 3(a) of the
            Securities Exchange Act of 1934 (15 U.S.C. 78c(a))).
                ``(15) Rural infrastructure project.--The term `rural
            infrastructure project' means a surface transportation
            infrastructure project located in any area other than a city
            with a population of more than 250,000 inhabitants within the
            city limits.
                ``(16) Secured loan.--The term `secured loan' means a direct
            loan or other debt obligation issued by an obligor and funded by
            the Secretary in connection with the financing of a project
            under section 603.
                ``(17) State.--The term `State' has the meaning given the
            term in section 101.
                ``(18) Subsidy amount.--The term `subsidy amount' means the
            amount of budget authority sufficient to cover the estimated
            long-term cost to the Federal Government of a Federal credit
            instrument--
                        ``(A) calculated on a net present value basis; and
                        ``(B) excluding administrative costs and any
                    incidental effects on governmental receipts or outlays
                    in accordance with the Federal Credit Reform Act of 1990
                    (2 U.S.C. 661 et seq.).

    [[Page 126 STAT. 611]]

                ``(19) Substantial completion.--The term `substantial
            completion' means--
                        ``(A) the opening of a project to vehicular or
                    passenger traffic; or
                        ``(B) a comparable event, as determined by the
                    Secretary and specified in the credit agreement.
                ``(20) TIFIA program.--The term `TIFIA program' means the
            transportation infrastructure finance and innovation program of
            the Department.

        ``(b) Treatment of Chapter.--For purposes of this title, this
    chapter shall be treated as being part of chapter 1.
    ``Sec. 602. Determination of eligibility and project selection

        ``(a) Eligibility.--
                ``(1) In general.--A project shall be eligible to receive
            credit assistance under this chapter if--
                        ``(A) the entity proposing to carry out the project
                    submits a letter of interest prior to submission of a
                    formal application for the project; and
                        ``(B) the project meets the criteria described in
                    this subsection.
                ``(2) Creditworthiness.--
                        ``(A) In general.--To be eligible for assistance
                    under this chapter, a project shall satisfy applicable
                    creditworthiness standards, which, at a minimum, shall
                    include--
                              ``(i) a rate covenant, if applicable;
                              ``(ii) adequate coverage requirements to
                          ensure repayment;
                              ``(iii) an investment grade rating from at
                          least 2 rating agencies on debt senior to the
                          Federal credit instrument; and
                              ``(iv) a rating from at least 2 rating
                          agencies on the Federal credit instrument, subject
                          to the condition that, with respect to clause
                          (iii), if the total amount of the senior debt and
                          the Federal credit instrument is less than
                          $75,000,000, 1 rating agency opinion for each of
                          the senior debt and Federal credit instrument
                          shall be sufficient.
                        ``(B) Senior debt.--Notwithstanding subparagraph
                    (A), in a case in which the Federal credit instrument is
                    the senior debt, the Federal credit instrument shall be
                    required to receive an investment grade rating from at
                    least 2 rating agencies, unless the credit instrument is
                    for an amount less than $75,000,000, in which case 1
                    rating agency opinion shall be sufficient.
                ``(3) Inclusion in transportation plans and programs.--A
            project shall satisfy the applicable planning and programming
            requirements of sections 134 and 135 at such time as an
            agreement to make available a Federal credit instrument is
            entered into under this chapter.
                ``(4) Application.--A State, local government, public
            authority, public-private partnership, or any other legal entity
            undertaking the project and authorized by the Secretary shall
            submit a project application that is acceptable to the
            Secretary.
                ``(5) Eligible project costs.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), to be eligible for assistance under
                    this chapter, a

    [[Page 126 STAT. 612]]

                    project shall have eligible project costs that are
                    reasonably anticipated to equal or exceed the lesser
                    of--
                              ``(i)(I) $50,000,000; or
                              ``(II) in the case of a rural infrastructure
                          project, $25,000,000; and
                              ``(ii) 33\1/3\ percent of the amount of
                          Federal highway assistance funds apportioned for
                          the most recently completed fiscal year to the
                          State in which the project is located.
                        ``(B) Intelligent transportation system projects.--
                    In the case of a project principally involving the
                    installation of an intelligent transportation system,
                    eligible project costs shall be reasonably anticipated
                    to equal or exceed $15,000,000.
                ``(6) Dedicated revenue sources.--The applicable Federal
            credit instrument shall be repayable, in whole or in part,
            from--
                        ``(A) tolls;
                        ``(B) user fees;
                        ``(C) payments owing to the obligor under a public-
                    private partnership; or
                        ``(D) other dedicated revenue sources that also
                    secure or fund the project obligations.
                ``(7) Public sponsorship of private entities.--In the case
            of a project that is undertaken by an entity that is not a State
            or local government or an agency or instrumentality of a State
            or local government, the project that the entity is undertaking
            shall be publicly sponsored as provided in paragraph (3).
                ``(8) Applications where obligor will be identified later.--
            A State, local government, agency or instrumentality of a State
            or local government, or public authority may submit to the
            Secretary an application under paragraph (4), under which a
            private party to a public-private partnership will be--
                        ``(A) the obligor; and
                        ``(B) identified later through completion of a
                    procurement and selection of the private party.
                ``(9) Beneficial effects.-- <<NOTE: Determination.>> The
            Secretary shall determine that financial assistance for the
            project under this chapter will--
                        ``(A) foster, if appropriate, partnerships that
                    attract public and private investment for the project;
                        ``(B) enable the project to proceed at an earlier
                    date than the project would otherwise be able to proceed
                    or reduce the lifecycle costs (including debt service
                    costs) of the project; and
                        ``(C) reduce the contribution of Federal grant
                    assistance for the project.
                ``(10) Project readiness.-- <<NOTE: Deadline.>> To be
            eligible for assistance under this chapter, the applicant shall
            demonstrate a reasonable expectation that the contracting
            process for construction of the project can commence by not
            later than 90 days after the date on which a Federal credit
            instrument is obligated for the project under this chapter.

        ``(b) Selection Among Eligible Projects.--
                ``(1) Establishment.--The Secretary shall establish a
            rolling application process under which projects that are
            eligible to receive credit assistance under subsection (a) shall
            receive

    [[Page 126 STAT. 613]]

            credit assistance on terms acceptable to the Secretary, if
            adequate funds are available to cover the subsidy costs
            associated with the Federal credit instrument.
                ``(2) Adequate funding not available.--If the Secretary
            fully obligates funding to eligible projects in a fiscal year,
            and adequate funding is not available to fund a credit
            instrument, a project sponsor of an eligible project may elect
            to enter into a master credit agreement and wait until the
            earlier of--
                        ``(A) the following fiscal year; and
                        ``(B) the fiscal year during which additional funds
                    are available to receive credit assistance.
                ``(3) Preliminary rating opinion letter.--The Secretary
            shall require each project applicant to provide a preliminary
            rating opinion letter from at least 1 rating agency--
                        ``(A) indicating that the senior obligations of the
                    project, which may be the Federal credit instrument,
                    have the potential to achieve an investment-grade
                    rating; and
                        ``(B) including a preliminary rating opinion on the
                    Federal credit instrument.

        ``(c) Federal Requirements.--
                ``(1) In general.-- <<NOTE: Applicability.>> In addition to
            the requirements of this title for highway projects, the
            requirements of chapter 53 of title 49 for transit projects, and
            the requirements of section 5333(a) of title 49 for rail
            projects, the following provisions of law shall apply to funds
            made available under this chapter and projects assisted with
            those funds:
                        ``(A) Title VI of the Civil Rights Act of 1964 (42
                    U.S.C. 2000d et seq.).
                        ``(B) The National Environmental Policy Act of 1969
                    (42 U.S.C. 4321 et seq.).
                        ``(C) The Uniform Relocation Assistance and Real
                    Property Acquisition Policies Act of 1970 (42 U.S.C.
                    4601 et seq.).
                ``(2) NEPA.--No funding shall be obligated for a project
            that has not received an environmental categorical exclusion, a
            finding of no significant impact, or a record of decision under
            the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
            seq.).

        ``(d) <<NOTE: Deadlines.>> Application Processing Procedures.--
                ``(1) Notice of complete application.--Not later than 30
            days after the date of receipt of an application under this
            section, the Secretary shall provide to the applicant a written
            notice to inform the applicant whether--
                        ``(A) the application is complete; or
                        ``(B) additional information or materials are needed
                    to complete the application.
                ``(2) Approval or denial of application.--
            <<NOTE: Notification.>> Not later than 60 days after the date of
            issuance of the written notice under paragraph (1), the
            Secretary shall provide to the applicant a written notice
            informing the applicant whether the Secretary has approved or
            disapproved the application.

        ``(e) Development Phase Activities.--Any credit instrument secured
    under this chapter may be used to finance up to 100 percent of the cost
    of development phase activities as described in section 601(a)(1)(A).

    [[Page 126 STAT. 614]]

    ``Sec. 603. Secured loans

        ``(a) In General.--
                ``(1) Agreements.--Subject to paragraphs (2) and (3), the
            Secretary may enter into agreements with 1 or more obligors to
            make secured loans, the proceeds of which shall be used--
                        ``(A) to finance eligible project costs of any
                    project selected under section 602;
                        ``(B) to refinance interim construction financing of
                    eligible project costs of any project selected under
                    section 602;
                        ``(C) to refinance existing Federal credit
                    instruments for rural infrastructure projects; or
                        ``(D) to refinance long-term project obligations or
                    Federal credit instruments, if the refinancing provides
                    additional funding capacity for the completion,
                    enhancement, or expansion of any project that--
                              ``(i) is selected under section 602; or
                              ``(ii) otherwise meets the requirements of
                          section 602.
                ``(2) Limitation on refinancing of interim construction
            financing.-- <<NOTE: Time period.>> A loan under paragraph (1)
            shall not refinance interim construction financing under
            paragraph (1)(B) later than 1 year after the date of substantial
            completion of the project.
                ``(3) Risk assessment.-- <<NOTE: Determination.>> Before
            entering into an agreement under this subsection, the Secretary,
            in consultation with the Director of the Office of Management
            and Budget, shall determine an appropriate capital reserve
            subsidy amount for each secured loan, taking into account each
            rating letter provided by an agency under section 602(b)(3)(B).

        ``(b) Terms and Limitations.--
                ``(1) In general.--A secured loan under this section with
            respect to a project shall be on such terms and conditions and
            contain such covenants, representations, warranties, and
            requirements (including requirements for audits) as the
            Secretary determines to be appropriate.
                ``(2) Maximum amount.--The amount of a secured loan under
            this section shall not exceed the lesser of 49 percent of the
            reasonably anticipated eligible project costs or if the secured
            loan does not receive an investment grade rating, the amount of
            the senior project obligations.
                ``(3) Payment.--A secured loan under this section--
                        ``(A) shall--
                              ``(i) be payable, in whole or in part, from--
                                        ``(I) tolls;
                                        ``(II) user fees;
                                        ``(III) payments owing to the
                                    obligor under a public-private
                                    partnership; or
                                        ``(IV) other dedicated revenue
                                    sources that also secure the senior
                                    project obligations; and
                              ``(ii) include a rate covenant, coverage
                          requirement, or similar security feature
                          supporting the project obligations; and
                        ``(B) may have a lien on revenues described in
                    subparagraph (A), subject to any lien securing project
                    obligations.
                ``(4) Interest rate.--

    [[Page 126 STAT. 615]]

                        ``(A) In general.--Except as provided in
                    subparagraphs (B) and (C), the interest rate on a
                    secured loan under this section shall be not less than
                    the yield on United States Treasury securities of a
                    similar maturity to the maturity of the secured loan on
                    the date of execution of the loan agreement.
                        ``(B) Rural infrastructure projects.--
                              ``(i) In general.--The interest rate of a loan
                          offered to a rural infrastructure project under
                          this chapter shall be at \1/2\ of the Treasury
                          Rate in effect on the date of execution of the
                          loan agreement.
                              ``(ii) Application.--The rate described in
                          clause (i) shall only apply to any portion of a
                          loan the subsidy cost of which is funded by
                          amounts set aside for rural infrastructure
                          projects under section 608(a)(3)(A).
                        ``(C) Limited buydowns.--The interest rate of a
                    secured loan under this section may not be lowered by
                    more than the lower of--
                              ``(i) 1\1/2\ percentage points (150 basis
                          points); or
                              ``(ii) the amount of the increase in the
                          interest rate.
                ``(5) Maturity date.--The final maturity date of the secured
            loan shall be the lesser of--
                        ``(A) 35 years after the date of substantial
                    completion of the project; and
                        ``(B) if the useful life of the capital asset being
                    financed is of a lesser period, the useful life of the
                    asset.
                ``(6) Nonsubordination.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the secured loan shall not be
                    subordinated to the claims of any holder of project
                    obligations in the event of bankruptcy, insolvency, or
                    liquidation of the obligor.
                        ``(B) Preexisting indenture.--
                              ``(i) In general.-- <<NOTE: Waiver
                          authority.>> The Secretary shall waive the
                          requirement under subparagraph (A) for a public
                          agency borrower that is financing ongoing capital
                          programs and has outstanding senior bonds under a
                          preexisting indenture, if--
                                        ``(I) the secured loan is rated in
                                    the A category or higher;
                                        ``(II) the secured loan is secured
                                    and payable from pledged revenues not
                                    affected by project performance, such as
                                    a tax-backed revenue pledge or a system-
                                    backed pledge of project revenues; and
                                        ``(III) the TIFIA program share of
                                    eligible project costs is 33 percent or
                                    less.
                              ``(ii) Limitation.--If the Secretary waives
                          the nonsubordination requirement under this
                          subparagraph--
                                        ``(I) the maximum credit subsidy to
                                    be paid by the Federal Government shall
                                    be not more than 10 percent of the
                                    principal amount of the secured loan;
                                    and
                                        ``(II) the obligor shall be
                                    responsible for paying the remainder of
                                    the subsidy cost, if any.
                ``(7) Fees.--The Secretary may establish fees at a level
            sufficient to cover all or a portion of the costs to the Federal
            Government of making a secured loan under this section.

    [[Page 126 STAT. 616]]

                ``(8) Non-federal share.--The proceeds of a secured loan
            under this chapter may be used for any non-Federal share of
            project costs required under this title or chapter 53 of title
            49, if the loan is repayable from non-Federal funds.
                ``(9) Maximum federal involvement.--The total Federal
            assistance provided on a project receiving a loan under this
            chapter shall not exceed 80 percent of the total project cost.

        ``(c) Repayment.--
                ``(1) Schedule.--The Secretary shall establish a repayment
            schedule for each secured loan under this section based on--
                        ``(A) the projected cash flow from project revenues
                    and other repayment sources; and
                        ``(B) the useful life of the project.
                ``(2) Commencement.--Scheduled loan repayments of principal
            or interest on a secured loan under this section shall commence
            not later than 5 years after the date of substantial completion
            of the project.
                ``(3) Deferred payments.--
                        ``(A) In general.--If, at any time after the date of
                    substantial completion of the project, the project is
                    unable to generate sufficient revenues to pay the
                    scheduled loan repayments of principal and interest on
                    the secured loan, the Secretary may, subject to
                    subparagraph (C), allow the obligor to add unpaid
                    principal and interest to the outstanding balance of the
                    secured loan.
                        ``(B) Interest.--Any payment deferred under
                    subparagraph (A) shall--
                              ``(i) continue to accrue interest in
                          accordance with subsection (b)(4) until fully
                          repaid; and
                              ``(ii) be scheduled to be amortized over the
                          remaining term of the loan.
                        ``(C) Criteria.--
                              ``(i) In general.--Any payment deferral under
                          subparagraph (A) shall be contingent on the
                          project meeting criteria established by the
                          Secretary.
                              ``(ii) Repayment standards.--The criteria
                          established pursuant to clause (i) shall include
                          standards for reasonable assurance of repayment.
                ``(4) Prepayment.--
                        ``(A) Use of excess revenues.--Any excess revenues
                    that remain after satisfying scheduled debt service
                    requirements on the project obligations and secured loan
                    and all deposit requirements under the terms of any
                    trust agreement, bond resolution, or similar agreement
                    securing project obligations may be applied annually to
                    prepay the secured loan without penalty.
                        ``(B) Use of proceeds of refinancing.--The secured
                    loan may be prepaid at any time without penalty from the
                    proceeds of refinancing from non-Federal funding
                    sources.

        ``(d) Sale of Secured Loans.--
                ``(1) In general.--Subject to paragraph (2), as soon as
            practicable after substantial completion of a project and after
            notifying the obligor, the Secretary may sell to another entity
            or reoffer into the capital markets a secured loan for the
            project if the Secretary determines that the sale or reoffering
            can be made on favorable terms.

    [[Page 126 STAT. 617]]

                ``(2) Consent of obligor.--In making a sale or reoffering
            under paragraph (1), the Secretary may not change the original
            terms and conditions of the secured loan without the written
            consent of the obligor.

        ``(e) Loan Guarantees.--
                ``(1) In general.--The Secretary may provide a loan
            guarantee to a lender in lieu of making a secured loan under
            this section if the Secretary determines that the budgetary cost
            of the loan guarantee is substantially the same as that of a
            secured loan.
                ``(2) Terms.--The terms of a loan guarantee under paragraph
            (1) shall be consistent with the terms required under this
            section for a secured loan, except that the rate on the
            guaranteed loan and any prepayment features shall be negotiated
            between the obligor and the lender, with the consent of the
            Secretary.
    ``Sec. 604. Lines of credit

        ``(a) In General.--
                ``(1) Agreements.--Subject to paragraphs (2) through (4),
            the Secretary may enter into agreements to make available to 1
            or more obligors lines of credit in the form of direct loans to
            be made by the Secretary at future dates on the occurrence of
            certain events for any project selected under section 602.
                ``(2) Use of proceeds.--The proceeds of a line of credit
            made available under this section shall be available to pay debt
            service on project obligations issued to finance eligible
            project costs, extraordinary repair and replacement costs,
            operation and maintenance expenses, and costs associated with
            unexpected Federal or State environmental restrictions.
                ``(3) Risk assessment.-- <<NOTE: Determination.>> Before
            entering into an agreement under this subsection, the Secretary,
            in consultation with the Director of the Office of Management
            and Budget and each rating agency providing a preliminary rating
            opinion letter under section 602(b)(3), shall determine an
            appropriate capital reserve subsidy amount for each line of
            credit, taking into account the rating opinion letter.
                ``(4) Investment-grade rating requirement.--The funding of a
            line of credit under this section shall be contingent on the
            senior obligations of the project receiving an investment-grade
            rating from 2 rating agencies.

        ``(b) Terms and Limitations.--
                ``(1) In general.--A line of credit under this section with
            respect to a project shall be on such terms and conditions and
            contain such covenants, representations, warranties, and
            requirements (including requirements for audits) as the
            Secretary determines to be appropriate.
                ``(2) Maximum amounts.--The total amount of a line of credit
            under this section shall not exceed 33 percent of the reasonably
            anticipated eligible project costs.
                ``(3) Draws.--Any draw on a line of credit under this
            section shall--
                        ``(A) represent a direct loan; and
                        ``(B) be made only if net revenues from the project
                    (including capitalized interest, but not including
                    reasonably

    [[Page 126 STAT. 618]]

                    required financing reserves) are insufficient to pay the
                    costs specified in subsection (a)(2).
                ``(4) Interest rate.--Except as provided in subparagraphs
            (B) and (C) of section 603(b)(4), the interest rate on a direct
            loan resulting from a draw on the line of credit shall be not
            less than the yield on 30-year United States Treasury
            securities, as of the date of execution of the line of credit
            agreement.
                ``(5) Security.--A line of credit issued under this
            section--
                        ``(A) shall--
                              ``(i) be payable, in whole or in part, from--
                                        ``(I) tolls;
                                        ``(II) user fees;
                                        ``(III) payments owing to the
                                    obligor under a public-private
                                    partnership; or
                                        ``(IV) other dedicated revenue
                                    sources that also secure the senior
                                    project obligations; and
                              ``(ii) include a rate covenant, coverage
                          requirement, or similar security feature
                          supporting the project obligations; and
                        ``(B) may have a lien on revenues described in
                    subparagraph (A), subject to any lien securing project
                    obligations.
                ``(6) Period of availability.--The full amount of a line of
            credit under this section, to the extent not drawn upon, shall
            be available during the 10-year period beginning on the date of
            substantial completion of the project.
                ``(7) Rights of third-party creditors.--
                        ``(A) Against federal government.--A third-party
                    creditor of the obligor shall not have any right against
                    the Federal Government with respect to any draw on a
                    line of credit under this section.
                        ``(B) Assignment.--An obligor may assign a line of
                    credit under this section to--
                              ``(i) 1 or more lenders; or
                              ``(ii) a trustee on the behalf of such a
                          lender.
                ``(8) Nonsubordination.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), a direct loan under this section shall
                    not be subordinated to the claims of any holder of
                    project obligations in the event of bankruptcy,
                    insolvency, or liquidation of the obligor.
                        ``(B) Pre-existing indenture.--
                              ``(i) In general.-- <<NOTE: Waiver
                          authority.>> The Secretary shall waive the
                          requirement of subparagraph (A) for a public
                          agency borrower that is financing ongoing capital
                          programs and has outstanding senior bonds under a
                          preexisting indenture, if--
                                        ``(I) the line of credit is rated in
                                    the A category or higher;
                                        ``(II) the TIFIA program loan
                                    resulting from a draw on the line of
                                    credit is payable from pledged revenues
                                    not affected by project performance,
                                    such as a tax-backed revenue pledge or a
                                    system-backed pledge of project
                                    revenues; and
                                        ``(III) the TIFIA program share of
                                    eligible project costs is 33 percent or
                                    less.
                              ``(ii) Limitation.--If the Secretary waives
                          the nonsubordination requirement under this
                          subparagraph--

    [[Page 126 STAT. 619]]

                                        ``(I) the maximum credit subsidy to
                                    be paid by the Federal Government shall
                                    be not more than 10 percent of the
                                    principal amount of the secured loan;
                                    and
                                        ``(II) the obligor shall be
                                    responsible for paying the remainder of
                                    the subsidy cost.
                ``(9) Fees.--The Secretary may establish fees at a level
            sufficient to cover all or a portion of the costs to the Federal
            Government of providing a line of credit under this section.
                ``(10) Relationship to other credit instruments.--A project
            that receives a line of credit under this section also shall not
            receive a secured loan or loan guarantee under section 603 in an
            amount that, combined with the amount of the line of credit,
            exceeds 49 percent of eligible project costs.

        ``(c) Repayment.--
                ``(1) Terms and conditions.--The Secretary shall establish
            repayment terms and conditions for each direct loan under this
            section based on--
                        ``(A) the projected cash flow from project revenues
                    and other repayment sources; and
                        ``(B) the useful life of the asset being financed.
                ``(2) Timing.--All repayments of principal or interest on a
            direct loan under this section shall be scheduled--
                        ``(A) to commence not later than 5 years after the
                    end of the period of availability specified in
                    subsection (b)(6); and
                        ``(B) to conclude, with full repayment of principal
                    and interest, by the date that is 25 years after the end
                    of the period of availability specified in subsection
                    (b)(6).
    ``Sec. 605. Program administration

        ``(a) Requirement.--The Secretary shall establish a uniform system
    to service the Federal credit instruments made available under this
    chapter.
        ``(b) Fees.--The Secretary may collect and spend fees, contingent on
    authority being provided in appropriations Acts, at a level that is
    sufficient to cover--
                ``(1) the costs of services of expert firms retained
            pursuant to subsection (d); and
                ``(2) all or a portion of the costs to the Federal
            Government of servicing the Federal credit instruments.

        ``(c) Servicer.--
                ``(1) In general.--The Secretary may appoint a financial
            entity to assist the Secretary in servicing the Federal credit
            instruments.
                ``(2) Duties.--A servicer appointed under paragraph (1)
            shall act as the agent for the Secretary.
                ``(3) Fee.--A servicer appointed under paragraph (1) shall
            receive a servicing fee, subject to approval by the Secretary.

        ``(d) Assistance From Expert Firms.--The Secretary may retain the
    services of expert firms, including counsel, in the field of municipal
    and project finance to assist in the underwriting and servicing of
    Federal credit instruments.
        ``(e) Expedited Processing.-- <<NOTE: Procedures.>> The Secretary
    shall implement procedures and measures to economize the time and cost
    involved in obtaining approval and the issuance of credit assistance
    under this chapter.

    [[Page 126 STAT. 620]]

    ``Sec. 606. State and local permits

        ``The provision of credit assistance under this chapter with respect
    to a project shall not--
                ``(1) relieve any recipient of the assistance of any
            obligation to obtain any required State or local permit or
            approval with respect to the project;
                ``(2) limit the right of any unit of State or local
            government to approve or regulate any rate of return on private
            equity invested in the project; or
                ``(3) otherwise supersede any State or local law (including
            any regulation) applicable to the construction or operation of
            the project.
    ``Sec. 607. Regulations

        ``The Secretary may promulgate such regulations as the Secretary
    determines to be appropriate to carry out this chapter.
    ``Sec. 608. Funding

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

    [[Page 126 STAT. 621]]

                        ``(C) Purpose.--Funds distributed under subparagraph
                    (B) shall be available for any purpose described in
                    section 133(b).
                ``(5) Availability.--Amounts made available to carry out
            this chapter shall remain available until expended.
                ``(6) Administrative costs.--Of the amounts made available
            to carry out this chapter, the Secretary may use not more than
            0.50 percent for each fiscal year for the administration of this
            chapter.

        ``(b) Contract Authority.--
                ``(1) In general.--Notwithstanding any other provision of
            law, execution of a term sheet by the Secretary of a Federal
            credit instrument that uses amounts made available under this
            chapter shall impose on the United States a contractual
            obligation to fund the Federal credit investment.
                ``(2) Availability.--Amounts made available to carry out
            this chapter for a fiscal year shall be available for obligation
            on October 1 of the fiscal year.
    ``Sec. 609. Reports to Congress

        ``(a) In General.-- <<NOTE: Effective date.>> On June 1, 2012, and
    every 2 years thereafter, the Secretary shall submit to Congress a
    report summarizing the financial performance of the projects that are
    receiving, or have received, assistance under this chapter (other than
    section 610), including a recommendation as to whether the objectives of
    this chapter (other than section 610) are best served by--
                ``(1) continuing the program under the authority of the
            Secretary;
                ``(2) establishing a Federal corporation or federally
            sponsored enterprise to administer the program; or
                ``(3) phasing out the program and relying on the capital
            markets to fund the types of infrastructure investments assisted
            by this chapter (other than section 610) without Federal
            participation.

        ``(b) Application Process Report.--
                ``(1) In general.-- <<NOTE: List.>> Not later than December
            1, 2012, and annually thereafter, the Secretary shall submit to
            the Committee on Transportation and Infrastructure of the House
            of Representatives and the Committee on Environment and Public
            Works of the Senate a report that includes a list of all of the
            letters of interest and applications received from project
            sponsors for assistance under this chapter (other than section
            610) during the preceding fiscal year.
                ``(2) Inclusions.--
                        ``(A) In general.--Each report under paragraph (1)
                    shall include, at a minimum, a description of, with
                    respect to each letter of interest and application
                    included in the report--
                              ``(i) the date on which the letter of interest
                          or application was received;
                              ``(ii) the date on which a notification was
                          provided to the project sponsor regarding whether
                          the application was complete or incomplete;
                              ``(iii) the date on which a revised and
                          completed application was submitted (if
                          applicable);

    [[Page 126 STAT. 622]]

                              ``(iv) the date on which a notification was
                          provided to the project sponsor regarding whether
                          the project was approved or disapproved; and
                              ``(v) if the project was not approved, the
                          reason for the disapproval.
                        ``(B) Correspondence.--Each report under paragraph
                    (1) shall include copies of any correspondence provided
                    to the project sponsor in accordance with section
                    602(d).''.

    DIVISION B-- <<NOTE: Federal Public Transportation Act of 2012.>> PUBLIC
    TRANSPORTATION
    SEC. 20001. <<NOTE: 49 USC 5101 note.>> SHORT TITLE.

        This division may be cited as the ``Federal Public Transportation
    Act of 2012''.
    SEC. 20002. REPEALS.

        (a) Chapter 53.--Chapter 53 of title 49, United States Code, is
    amended by striking sections 5308, 5316, 5317, 5320, and 5328.
        (b) Transportation Equity Act for the 21st Century.--Section 3038 of
    the Transportation Equity Act for the 21st Century (49 U.S.C. 5310 note)
    is repealed.
        (c) SAFETEA-LU.--The following provisions are repealed:
                (1) Section 3009(i) of SAFETEA-LU (Public Law 109-59; 119
            Stat. 1572).
                (2) Section 3011(c) of SAFETEA-LU (49 U.S.C. 5309 note).
                (3) Section 3012(b) of SAFETEA-LU (49 U.S.C. 5310 note).
                (4) Section 3045 of SAFETEA-LU (49 U.S.C. 5308 note).
                (5) Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note).
    SEC. 20003. POLICIES AND PURPOSES.

        Section 5301 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5301. Policies and purposes

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

    [[Page 126 STAT. 623]]

                ``(7) support research, development, demonstration, and
            deployment projects dedicated to assisting in the delivery of
            efficient and effective public transportation service; and
                ``(8) promote the development of the public transportation
            workforce.''.
    SEC. 20004. DEFINITIONS.

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

        ``Except as otherwise specifically provided, in this chapter the
    following definitions apply:
                ``(1) Associated transit improvement.--The term `associated
            transit improvement' means, with respect to any project or an
            area to be served by a project, projects that are designed to
            enhance public transportation service or use and that are
            physically or functionally related to transit facilities.
            Eligible projects are--
                        ``(A) historic preservation, rehabilitation, and
                    operation of historic public transportation buildings,
                    structures, and facilities (including historic bus and
                    railroad facilities) intended for use in public
                    transportation service;
                        ``(B) bus shelters;
                        ``(C) landscaping and streetscaping, including
                    benches, trash receptacles, and street lights;
                        ``(D) pedestrian access and walkways;
                        ``(E) bicycle access, including bicycle storage
                    facilities and installing equipment for transporting
                    bicycles on public transportation vehicles;
                        ``(F) signage; or
                        ``(G) enhanced access for persons with disabilities
                    to public transportation.
                ``(2) Bus rapid transit system.--The term `bus rapid transit
            system' means a bus transit system--
                        ``(A) in which the majority of each line operates in
                    a separated right-of-way dedicated for public
                    transportation use during peak periods; and
                        ``(B) that includes features that emulate the
                    services provided by rail fixed guideway public
                    transportation systems, including--
                              ``(i) defined stations;
                              ``(ii) traffic signal priority for public
                          transportation vehicles;
                              ``(iii) short headway bidirectional services
                          for a substantial part of weekdays and weekend
                          days; and
                              ``(iv) any other features the Secretary may
                          determine are necessary to produce high-quality
                          public transportation services that emulate the
                          services provided by rail fixed guideway public
                          transportation systems.
                ``(3) Capital project.--The term `capital project' means a
            project for--
                        ``(A) acquiring, constructing, supervising, or
                    inspecting equipment or a facility for use in public
                    transportation, expenses incidental to the acquisition
                    or construction

    [[Page 126 STAT. 624]]

                    (including designing, engineering, location surveying,
                    mapping, and acquiring rights-of-way), payments for the
                    capital portions of rail trackage rights agreements,
                    transit-related intelligent transportation systems,
                    relocation assistance, acquiring replacement housing
                    sites, and acquiring, constructing, relocating, and
                    rehabilitating replacement housing;
                        ``(B) rehabilitating a bus;
                        ``(C) remanufacturing a bus;
                        ``(D) overhauling rail rolling stock;
                        ``(E) preventive maintenance;
                        ``(F) leasing equipment or a facility for use in
                    public transportation, subject to regulations that the
                    Secretary prescribes limiting the leasing arrangements
                    to those that are more cost-effective than purchase or
                    construction;
                        ``(G) a joint development improvement that--
                              ``(i) enhances economic development or
                          incorporates private investment, such as
                          commercial and residential development;
                              ``(ii)(I) enhances the effectiveness of public
                          transportation and is related physically or
                          functionally to public transportation; or
                              ``(II) establishes new or enhanced
                          coordination between public transportation and
                          other transportation;
                              ``(iii) provides a fair share of revenue that
                          will be used for public transportation;
                              ``(iv) provides that a person making an
                          agreement to occupy space in a facility
                          constructed under this paragraph shall pay a fair
                          share of the costs of the facility through rental
                          payments and other means;
                              ``(v) may include--
                                        ``(I) property acquisition;
                                        ``(II) demolition of existing
                                    structures;
                                        ``(III) site preparation;
                                        ``(IV) utilities;
                                        ``(V) building foundations;
                                        ``(VI) walkways;
                                        ``(VII) pedestrian and bicycle
                                    access to a public transportation
                                    facility;
                                        ``(VIII) construction, renovation,
                                    and improvement of intercity bus and
                                    intercity rail stations and terminals;
                                        ``(IX) renovation and improvement of
                                    historic transportation facilities;
                                        ``(X) open space;
                                        ``(XI) safety and security equipment
                                    and facilities (including lighting,
                                    surveillance, and related intelligent
                                    transportation system applications);
                                        ``(XII) facilities that incorporate
                                    community services such as daycare or
                                    health care;
                                        ``(XIII) a capital project for, and
                                    improving, equipment or a facility for
                                    an intermodal transfer facility or
                                    transportation mall; and
                                        ``(XIV) construction of space for
                                    commercial uses; and

    [[Page 126 STAT. 625]]

                              ``(vi) does not include outfitting of
                          commercial space (other than an intercity bus or
                          rail station or terminal) or a part of a public
                          facility not related to public transportation;
                        ``(H) the introduction of new technology, through
                    innovative and improved products, into public
                    transportation;
                        ``(I) the provision of nonfixed route paratransit
                    transportation services in accordance with section 223
                    of the Americans with Disabilities Act of 1990 (42
                    U.S.C. 12143), but only for grant recipients that are in
                    compliance with applicable requirements of that Act,
                    including both fixed route and demand responsive
                    service, and only for amounts not to exceed 10 percent
                    of such recipient's annual formula apportionment under
                    sections 5307 and 5311;
                        ``(J) establishing a debt service reserve, made up
                    of deposits with a bondholder's trustee, to ensure the
                    timely payment of principal and interest on bonds issued
                    by a grant recipient to finance an eligible project
                    under this chapter;
                        ``(K) mobility management--
                              ``(i) consisting of short-range planning and
                          management activities and projects for improving
                          coordination among public transportation and other
                          transportation service providers carried out by a
                          recipient or subrecipient through an agreement
                          entered into with a person, including a
                          governmental entity, under this chapter (other
                          than section 5309); but
                              ``(ii) excluding operating public
                          transportation services; or
                        ``(L) associated capital maintenance, including--
                              ``(i) equipment, tires, tubes, and material,
                          each costing at least .5 percent of the current
                          fair market value of rolling stock comparable to
                          the rolling stock for which the equipment, tires,
                          tubes, and material are to be used; and
                              ``(ii) reconstruction of equipment and
                          material, each of which after reconstruction will
                          have a fair market value of at least .5 percent of
                          the current fair market value of rolling stock
                          comparable to the rolling stock for which the
                          equipment and material will be used.
                ``(4) Designated recipient.--The term `designated recipient'
            means--
                        ``(A) an entity designated, in accordance with the
                    planning process under sections 5303 and 5304, by the
                    Governor of a State, responsible local officials, and
                    publicly owned operators of public transportation, to
                    receive and apportion amounts under section 5336 to
                    urbanized areas of 200,000 or more in population; or
                        ``(B) a State or regional authority, if the
                    authority is responsible under the laws of a State for a
                    capital project and for financing and directly providing
                    public transportation.
                ``(5) Disability.--The term `disability' has the same
            meaning as in section 3(1) of the Americans with Disabilities
            Act of 1990 (42 U.S.C. 12102).

    [[Page 126 STAT. 626]]

                ``(6) Emergency regulation.--The term `emergency regulation'
            means a regulation--
                        ``(A) that is effective temporarily before the
                    expiration of the otherwise specified periods of time
                    for public notice and comment under section 5334(c); and
                        ``(B) prescribed by the Secretary as the result of a
                    finding that a delay in the effective date of the
                    regulation--
                              ``(i) would injure seriously an important
                          public interest;
                              ``(ii) would frustrate substantially
                          legislative policy and intent; or
                              ``(iii) would damage seriously a person or
                          class without serving an important public
                          interest.
                ``(7) Fixed guideway.--The term `fixed guideway' means a
            public transportation facility--
                        ``(A) using and occupying a separate right-of-way
                    for the exclusive use of public transportation;
                        ``(B) using rail;
                        ``(C) using a fixed catenary system;
                        ``(D) for a passenger ferry system; or
                        ``(E) for a bus rapid transit system.
                ``(8) Governor.--The term `Governor'--
                        ``(A) means the Governor of a State, the mayor of
                    the District of Columbia, and the chief executive
                    officer of a territory of the United States; and
                        ``(B) includes the designee of the Governor.
                ``(9) Job access and reverse commute project.--
                        ``(A) In general.--The term `job access and reverse
                    commute project' means a transportation project to
                    finance planning, capital, and operating costs that
                    support the development and maintenance of
                    transportation services designed to transport welfare
                    recipients and eligible low-income individuals to and
                    from jobs and activities related to their employment,
                    including transportation projects that facilitate the
                    provision of public transportation services from
                    urbanized areas and rural areas to suburban employment
                    locations.
                        ``(B) Definitions.--In this paragraph:
                              ``(i) Eligible low-income individual.--The
                          term `eligible low-income individual' means an
                          individual whose family income is at or below 150
                          percent of the poverty line (as that term is
                          defined in section 673(2) of the Community Service
                          Block Grant Act (42 U.S.C. 9902(2)), including any
                          revision required by that section) for a family of
                          the size involved.
                              ``(ii) Welfare recipient.--The term `welfare
                          recipient' means an individual who has received
                          assistance under a State or tribal program funded
                          under part A of title IV of the Social Security
                          Act (42 U.S.C. 601 et seq.) at any time during the
                          3-year period before the date on which the
                          applicant applies for a grant under section 5307
                          or 5311.
                ``(10) Local governmental authority.--The term `local
            governmental authority' includes--
                        ``(A) a political subdivision of a State;
                        ``(B) an authority of at least 1 State or political
                    subdivision of a State;

    [[Page 126 STAT. 627]]

                        ``(C) an Indian tribe; and
                        ``(D) a public corporation, board, or commission
                    established under the laws of a State.
                ``(11) Low-income individual.--The term `low-income
            individual' means an individual whose family income is at or
            below 150 percent of the poverty line, as that term is defined
            in section 673(2) of the Community Services Block Grant Act (42
            U.S.C. 9902(2)), including any revision required by that
            section, for a family of the size involved.
                ``(12) Net project cost.--The term `net project cost' means
            the part of a project that reasonably cannot be financed from
            revenues.
                ``(13) New bus model.--The term `new bus model' means a bus
            model (including a model using alternative fuel)--
                        ``(A) that has not been used in public
                    transportation in the United States before the date of
                    production of the model; or
                        ``(B) used in public transportation in the United
                    States, but being produced with a major change in
                    configuration or components.
                ``(14) Public transportation.--The term `public
            transportation'--
                        ``(A) means regular, continuing shared-ride surface
                    transportation services that are open to the general
                    public or open to a segment of the general public
                    defined by age, disability, or low income; and
                        ``(B) does not include--
                              ``(i) intercity passenger rail transportation
                          provided by the entity described in chapter 243
                          (or a successor to such entity);
                              ``(ii) intercity bus service;
                              ``(iii) charter bus service;
                              ``(iv) school bus service;
                              ``(v) sightseeing service;
                              ``(vi) courtesy shuttle service for patrons of
                          one or more specific establishments; or
                              ``(vii) intra-terminal or intra-facility
                          shuttle services.
                ``(15) Regulation.--The term `regulation' means any part of
            a statement of general or particular applicability of the
            Secretary designed to carry out, interpret, or prescribe law or
            policy in carrying out this chapter.
                ``(16) Rural area.--The term `rural area' means an area
            encompassing a population of less than 50,000 people that has
            not been designated in the most recent decennial census as an
            `urbanized area' by the Secretary of Commerce.
                ``(17) Secretary.--The term `Secretary' means the Secretary
            of Transportation.
                ``(18) Senior.--The term `senior' means an individual who is
            65 years of age or older.
                ``(19) State.--The term `State' means a State of the United
            States, the District of Columbia, Puerto Rico, the Northern
            Mariana Islands, Guam, American Samoa, and the Virgin Islands.
                ``(20) State of good repair.--The term `state of good
            repair' has the meaning given that term by the Secretary, by
            rule, under section 5326(b).

    [[Page 126 STAT. 628]]

                ``(21) Transit.--The term `transit' means public
            transportation.
                ``(22) Urban area.--The term `urban area' means an area that
            includes a municipality or other built-up place that the
            Secretary, after considering local patterns and trends of urban
            growth, decides is appropriate for a local public transportation
            system to serve individuals in the locality.
                ``(23) Urbanized area.--The term `urbanized area' means an
            area encompassing a population of not less than 50,000 people
            that has been defined and designated in the most recent
            decennial census as an `urbanized area' by the Secretary of
            Commerce.''.
    SEC. 20005. METROPOLITAN TRANSPORTATION PLANNING.

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

        ``(a) Policy.--It is in the national interest--
                ``(1) to encourage and promote the safe and efficient
            management, operation, and development of surface transportation
            systems that will serve the mobility needs of people and freight
            and foster economic growth and development within and between
            States and urbanized areas, while minimizing transportation-
            related fuel consumption and air pollution through metropolitan
            and statewide transportation planning processes identified in
            this chapter; and
                ``(2) to encourage the continued improvement and evolution
            of the metropolitan and statewide transportation planning
            processes by metropolitan planning organizations, State
            departments of transportation, and public transit operators as
            guided by the planning factors identified in subsection (h) and
            section 5304(d).

        ``(b) Definitions.--In this section and section 5304, the following
    definitions apply:
                ``(1) Metropolitan planning area.--The term `metropolitan
            planning area' means the geographic area determined by agreement
            between the metropolitan planning organization for the area and
            the Governor under subsection (e).
                ``(2) Metropolitan planning organization.--The term
            `metropolitan planning organization' means the policy board of
            an organization established as a result of the designation
            process under subsection (d).
                ``(3) Nonmetropolitan area.--The term `nonmetropolitan area'
            means a geographic area outside designated metropolitan planning
            areas.
                ``(4) Nonmetropolitan local official.--The term
            `nonmetropolitan local official' means elected and appointed
            officials of general purpose local government in a
            nonmetropolitan area with responsibility for transportation.
                ``(5) Regional transportation planning organization.--The
            term `regional transportation planning organization' means a
            policy board of an organization established as the result of a
            designation under section 5304(l).
                ``(6) TIP.--The term `TIP' means a transportation
            improvement program developed by a metropolitan planning
            organization under subsection (j).

    [[Page 126 STAT. 629]]

                ``(7) Urbanized area.--The term `urbanized area' means a
            geographic area with a population of 50,000 or more, as
            determined by the Bureau of the Census.

        ``(c) General Requirements.--
                ``(1) Development of long-range plans and tips.--To
            accomplish the objectives in subsection (a), metropolitan
            planning organizations designated under subsection (d), in
            cooperation with the State and public transportation operators,
            shall develop long-range transportation plans and transportation
            improvement programs through a performance-driven, outcome-based
            approach to planning for metropolitan areas of the State.
                ``(2) Contents.--The plans and TIPs for each metropolitan
            area shall provide for the development and integrated management
            and operation of transportation systems and facilities
            (including accessible pedestrian walkways and bicycle
            transportation facilities) that will function as an intermodal
            transportation system for the metropolitan planning area and as
            an integral part of an intermodal transportation system for the
            State and the United States.
                ``(3) Process of development.--The process for developing
            the plans and TIPs shall provide for consideration of all modes
            of transportation and shall be continuing, cooperative, and
            comprehensive to the degree appropriate, based on the complexity
            of the transportation problems to be addressed.

        ``(d) Designation of Metropolitan Planning Organizations.--
                ``(1) In general.--To carry out the transportation planning
            process required by this section, a metropolitan planning
            organization shall be designated for each urbanized area with a
            population of more than 50,000 individuals--
                        ``(A) by agreement between the Governor and units of
                    general purpose local government that together represent
                    at least 75 percent of the affected population
                    (including the largest incorporated city (based on
                    population) as determined by the Bureau of the Census);
                    or
                        ``(B) in accordance with procedures established by
                    applicable State or local law.
                ``(2) Structure.-- <<NOTE: Deadline.>> Not later than 2
            years after the date of enactment of the Federal Public
            Transportation Act of 2012, each metropolitan planning
            organization that serves an area designated as a transportation
            management area shall consist of--
                        ``(A) local elected officials;
                        ``(B) officials of public agencies that administer
                    or operate major modes of transportation in the
                    metropolitan area, including representation by providers
                    of public transportation; and
                        ``(C) appropriate State officials.
                ``(3) Limitation on statutory construction.--Nothing in this
            subsection shall be construed to interfere with the authority,
            under any State law in effect on December 18, 1991, of a public
            agency with multimodal transportation responsibilities--
                        ``(A) to develop the plans and TIPs for adoption by
                    a metropolitan planning organization; and

    [[Page 126 STAT. 630]]

                        ``(B) to develop long-range capital plans,
                    coordinate transit services and projects, and carry out
                    other activities pursuant to State law.
                ``(4) Continuing designation.--A designation of a
            metropolitan planning organization under this subsection or any
            other provision of law shall remain in effect until the
            metropolitan planning organization is redesignated under
            paragraph (5).
                ``(5) Redesignation procedures.--
                        ``(A) In general.--A metropolitan planning
                    organization may be redesignated by agreement between
                    the Governor and units of general purpose local
                    government that together represent at least 75 percent
                    of the existing planning area population (including the
                    largest incorporated city (based on population) as
                    determined by the Bureau of the Census) as appropriate
                    to carry out this section.
                        ``(B) Restructuring.--A metropolitan planning
                    organization may be restructured to meet the
                    requirements of paragraph (2) without undertaking a
                    redesignation.
                ``(6) Designation of more than 1 metropolitan planning
            organization.--More than 1 metropolitan planning organization
            may be designated within an existing metropolitan planning area
            only if the Governor and the existing metropolitan planning
            organization determine that the size and complexity of the
            existing metropolitan planning area make designation of more
            than 1 metropolitan planning organization for the area
            appropriate.

        ``(e) Metropolitan Planning Area Boundaries.--
                ``(1) In general.--For the purposes of this section, the
            boundaries of a metropolitan planning area shall be determined
            by agreement between the metropolitan planning organization and
            the Governor.
                ``(2) <<NOTE: Time period.>> Included area.--Each
            metropolitan planning area--
                        ``(A) shall encompass at least the existing
                    urbanized area and the contiguous area expected to
                    become urbanized within a 20-year forecast period for
                    the transportation plan; and
                        ``(B) may encompass the entire metropolitan
                    statistical area or consolidated metropolitan
                    statistical area, as defined by the Bureau of the
                    Census.
                ``(3) Identification of new urbanized areas within existing
            planning area boundaries.--The designation by the Bureau of the
            Census of new urbanized areas within an existing metropolitan
            planning area shall not require the redesignation of the
            existing metropolitan planning organization.
                ``(4) Existing metropolitan planning areas in
            nonattainment.--
                        ``(A) In general.--Notwithstanding paragraph (2),
                    except as provided in subparagraph (B), in the case of
                    an urbanized area designated as a nonattainment area for
                    ozone or carbon monoxide under the Clean Air Act (42
                    U.S.C. 7401 et seq.) as of the date of enactment of the
                    SAFETEA-LU, the boundaries of the metropolitan planning
                    area in existence as of such date of enactment shall be
                    retained.
                        ``(B) Exception.--The boundaries described in
                    subparagraph (A) may be adjusted by agreement of the

    [[Page 126 STAT. 631]]

                    Governor and affected metropolitan planning
                    organizations in the manner described in subsection
                    (d)(5).
                ``(5) New metropolitan planning areas in nonattainment.--In
            the case of an urbanized area designated after the date of
            enactment of the SAFETEA-LU, as a nonattainment area for ozone
            or carbon monoxide, the boundaries of the metropolitan planning
            area--
                        ``(A) shall be established in the manner described
                    in subsection (d)(1);
                        ``(B) shall encompass the areas described in
                    paragraph (2)(A);
                        ``(C) may encompass the areas described in paragraph
                    (2)(B); and
                        ``(D) may address any nonattainment area identified
                    under the Clean Air Act (42 U.S.C. 7401 et seq.) for
                    ozone or carbon monoxide.

        ``(f) Coordination in Multistate Areas.--
                ``(1) In general.--The Secretary shall encourage each
            Governor with responsibility for a portion of a multistate
            metropolitan area and the appropriate metropolitan planning
            organizations to provide coordinated transportation planning for
            the entire metropolitan area.
                ``(2) Interstate compacts.--The consent of Congress is
            granted to any 2 or more States--
                        ``(A) to enter into agreements or compacts, not in
                    conflict with any law of the United States, for
                    cooperative efforts and mutual assistance in support of
                    activities authorized under this section as the
                    activities pertain to interstate areas and localities
                    within the States; and
                        ``(B) to establish such agencies, joint or
                    otherwise, as the States may determine desirable for
                    making the agreements and compacts effective.
                ``(3) Reservation of rights.--The right to alter, amend, or
            repeal interstate compacts entered into under this subsection is
            expressly reserved.

        ``(g) MPO Consultation in Plan and TIP Coordination.--
                ``(1) Nonattainment areas.--If more than 1 metropolitan
            planning organization has authority within a metropolitan area
            or an area which is designated as a nonattainment area for ozone
            or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et
            seq.), each metropolitan planning organization shall consult
            with the other metropolitan planning organizations designated
            for such area and the State in the coordination of plans and
            TIPs required by this section.
                ``(2) Transportation improvements located in multiple
            mpos.--If a transportation improvement, funded under this
            chapter or title 23, is located within the boundaries of more
            than 1 metropolitan planning area, the metropolitan planning
            organizations shall coordinate plans and TIPs regarding the
            transportation improvement.
                ``(3) Relationship with other planning officials.--
                        ``(A) In general.--The Secretary shall encourage
                    each metropolitan planning organization to consult with
                    officials responsible for other types of planning
                    activities that are affected by transportation in the
                    area (including State and

    [[Page 126 STAT. 632]]

                    local planned growth, economic development,
                    environmental protection, airport operations, and
                    freight movements) or to coordinate its planning
                    process, to the maximum extent practicable, with such
                    planning activities.
                        ``(B) Requirements.--Under the metropolitan planning
                    process, transportation plans and TIPs shall be
                    developed with due consideration of other related
                    planning activities within the metropolitan area, and
                    the process shall provide for the design and delivery of
                    transportation services within the metropolitan area
                    that are provided by--
                              ``(i) recipients of assistance under this
                          chapter;
                              ``(ii) governmental agencies and nonprofit
                          organizations (including representatives of the
                          agencies and organizations) that receive Federal
                          assistance from a source other than the Department
                          of Transportation to provide nonemergency
                          transportation services; and
                              ``(iii) recipients of assistance under section
                          204 of title 23.

        ``(h) Scope of Planning Process.--
                ``(1) In general.--The metropolitan planning process for a
            metropolitan planning area under this section shall provide for
            consideration of projects and strategies that will--
                        ``(A) support the economic vitality of the
                    metropolitan area, especially by enabling global
                    competitiveness, productivity, and efficiency;
                        ``(B) increase the safety of the transportation
                    system for motorized and nonmotorized users;
                        ``(C) increase the security of the transportation
                    system for motorized and nonmotorized users;
                        ``(D) increase the accessibility and mobility of
                    people and for freight;
                        ``(E) protect and enhance the environment, promote
                    energy conservation, improve the quality of life, and
                    promote consistency between transportation improvements
                    and State and local planned growth and economic
                    development patterns;
                        ``(F) enhance the integration and connectivity of
                    the transportation system, across and between modes, for
                    people and freight;
                        ``(G) promote efficient system management and
                    operation; and
                        ``(H) emphasize the preservation of the existing
                    transportation system.
                ``(2) Performance-based approach.--
                        ``(A) In general.--The metropolitan transportation
                    planning process shall provide for the establishment and
                    use of a performance-based approach to transportation
                    decisionmaking to support the national goals described
                    in section 150(b) of title 23 and the general purposes
                    described in section 5301.
                        ``(B) Performance targets.--
                              ``(i) Surface transportation performance
                          targets.--
                                        ``(I) In general.--Each metropolitan
                                    planning organization shall establish
                                    performance targets that address the
                                    performance measures described

    [[Page 126 STAT. 633]]

                                    in section 150(c) of title 23, where
                                    applicable, to use in tracking progress
                                    towards attainment of critical outcomes
                                    for the region of the metropolitan
                                    planning organization.
                                        ``(II) Coordination.--Selection of
                                    performance targets by a metropolitan
                                    planning organization shall be
                                    coordinated with the relevant State to
                                    ensure consistency, to the maximum
                                    extent practicable.
                              ``(ii) Public transportation performance
                          targets.--Selection of performance targets by a
                          metropolitan planning organization shall be
                          coordinated, to the maximum extent practicable,
                          with providers of public transportation to ensure
                          consistency with sections 5326(c) and 5329(d).
                        ``(C) Timing.--Each metropolitan planning
                    organization shall establish the performance targets
                    under subparagraph (B) not later than 180 days after the
                    date on which the relevant State or provider of public
                    transportation establishes the performance targets.
                        ``(D) Integration of other performance-based
                    plans.--A metropolitan planning organization shall
                    integrate in the metropolitan transportation planning
                    process, directly or by reference, the goals,
                    objectives, performance measures, and targets described
                    in other State transportation plans and transportation
                    processes, as well as any plans developed by recipients
                    of assistance under this chapter, required as part of a
                    performance-based program.
                ``(3) Failure to consider factors.--The failure to consider
            any factor specified in paragraphs (1) and (2) shall not be
            reviewable by any court under this chapter, title 23, subchapter
            II of chapter 5 of title 5, or chapter 7 of title 5 in any
            matter affecting a transportation plan, a TIP, a project or
            strategy, or the certification of a planning process.

        ``(i) Development of Transportation Plan.--
                ``(1) Requirements.--
                        ``(A) In general.--Each metropolitan planning
                    organization shall prepare and update a transportation
                    plan for its metropolitan planning area in accordance
                    with the requirements of this subsection.
                        ``(B) Frequency.--
                              ``(i) In general.--The metropolitan planning
                          organization shall prepare and update such plan
                          every 4 years (or more frequently, if the
                          metropolitan planning organization elects to
                          update more frequently) in the case of each of the
                          following:
                                        ``(I) Any area designated as
                                    nonattainment, as defined in section
                                    107(d) of the Clean Air Act (42 U.S.C.
                                    7407(d)).
                                        ``(II) Any area that was
                                    nonattainment and subsequently
                                    designated to attainment in accordance
                                    with section 107(d)(3) of that Act (42
                                    U.S.C. 7407(d)(3)) and that is subject
                                    to a maintenance plan under section 175A
                                    of that Act (42 U.S.C. 7505a).

    [[Page 126 STAT. 634]]

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

    [[Page 126 STAT. 635]]

                                        ``(I) demonstrates how the adopted
                                    transportation plan can be implemented;
                                        ``(II) indicates resources from
                                    public and private sources that are
                                    reasonably expected to be made available
                                    to carry out the plan; and
                                        ``(III) recommends any additional
                                    financing strategies for needed projects
                                    and programs.
                              ``(ii) Inclusions.--The financial plan may
                          include, for illustrative purposes, additional
                          projects that would be included in the adopted
                          transportation plan if reasonable additional
                          resources beyond those identified in the financial
                          plan were available.
                              ``(iii) Cooperative development.--For the
                          purpose of developing the transportation plan, the
                          metropolitan planning organization, transit
                          operator, and State shall cooperatively develop
                          estimates of funds that will be available to
                          support plan implementation.
                        ``(F) Operational and management strategies.--
                    Operational and management strategies to improve the
                    performance of existing transportation facilities to
                    relieve vehicular congestion and maximize the safety and
                    mobility of people and goods.
                        ``(G) Capital investment and other strategies.--
                    Capital investment and other strategies to preserve the
                    existing and projected future metropolitan
                    transportation infrastructure and provide for multimodal
                    capacity increases based on regional priorities and
                    needs.
                        ``(H) Transportation and transit enhancement
                    activities.--Proposed transportation and transit
                    enhancement activities.
                ``(3) Coordination with clean air act agencies.--In
            metropolitan areas that are in nonattainment for ozone or carbon
            monoxide under the Clean Air Act (42 U.S.C. 7401 et seq.), the
            metropolitan planning organization shall coordinate the
            development of a transportation plan with the process for
            development of the transportation control measures of the State
            implementation plan required by that Act.
                ``(4) Optional scenario development.--
                        ``(A) In general.--A metropolitan planning
                    organization may, while fitting the needs and complexity
                    of its community, voluntarily elect to develop multiple
                    scenarios for consideration as part of the development
                    of the metropolitan transportation plan, in accordance
                    with subparagraph (B).
                        ``(B) Recommended components.--A metropolitan
                    planning organization that chooses to develop multiple
                    scenarios under subparagraph (A) shall be encouraged to
                    consider--
                              ``(i) potential regional investment strategies
                          for the planning horizon;
                              ``(ii) assumed distribution of population and
                          employment;
                              ``(iii) a scenario that, to the maximum extent
                          practicable, maintains baseline conditions for the
                          performance measures identified in subsection
                          (h)(2);

    [[Page 126 STAT. 636]]

                              ``(iv) a scenario that improves the baseline
                          conditions for as many of the performance measures
                          identified in subsection (h)(2) as possible;
                              ``(v) revenue constrained scenarios based on
                          the total revenues expected to be available over
                          the forecast period of the plan; and
                              ``(vi) estimated costs and potential revenues
                          available to support each scenario.
                        ``(C) Metrics.--In addition to the performance
                    measures identified in section 150(c) of title 23,
                    metropolitan planning organizations may evaluate
                    scenarios developed under this paragraph using locally-
                    developed measures.
                ``(5) Consultation.--
                        ``(A) In general.--In each metropolitan area, the
                    metropolitan planning organization shall consult, as
                    appropriate, with State and local agencies responsible
                    for land use management, natural resources,
                    environmental protection, conservation, and historic
                    preservation concerning the development of a long-range
                    transportation plan.
                        ``(B) Issues.--The consultation shall involve, as
                    appropriate--
                              ``(i) comparison of transportation plans with
                          State conservation plans or maps, if available; or
                              ``(ii) comparison of transportation plans to
                          inventories of natural or historic resources, if
                          available.
                ``(6) Participation by interested parties.--
                        ``(A) In general.--Each metropolitan planning
                    organization shall provide citizens, affected public
                    agencies, representatives of public transportation
                    employees, freight shippers, providers of freight
                    transportation services, private providers of
                    transportation, representatives of users of public
                    transportation, representatives of users of pedestrian
                    walkways and bicycle transportation facilities,
                    representatives of the disabled, and other interested
                    parties with a reasonable opportunity to comment on the
                    transportation plan.
                        ``(B) Contents of participation plan.--A
                    participation plan--
                              ``(i) shall be developed in consultation with
                          all interested parties; and
                              ``(ii) shall provide that all interested
                          parties have reasonable opportunities to comment
                          on the contents of the transportation plan.
                        ``(C) <<NOTE: Public information.>> Methods.--In
                    carrying out subparagraph (A), the metropolitan planning
                    organization shall, to the maximum extent practicable--
                              ``(i) hold any public meetings at convenient
                          and accessible locations and times;
                              ``(ii) employ visualization techniques to
                          describe plans; and
                              ``(iii) make public information available in
                          electronically accessible format and means, such
                          as the World Wide Web, as appropriate to afford
                          reasonable opportunity for consideration of public
                          information under subparagraph (A).
                ``(7) Publication.--A transportation plan involving Federal
            participation shall be published or otherwise made readily

    [[Page 126 STAT. 637]]

            available by the metropolitan planning organization for public
            review, including (to the maximum extent practicable) in
            electronically accessible formats and means, such as the World
            Wide Web, approved by the metropolitan planning organization and
            submitted for information purposes to the Governor at such times
            and in such manner as the Secretary shall establish.
                ``(8) Selection of projects from illustrative list.--
            Notwithstanding paragraph (2)(C), a State or metropolitan
            planning organization shall not be required to select any
            project from the illustrative list of additional projects
            included in the financial plan under paragraph (2)(C).

        ``(j) Metropolitan TIP.--
                ``(1) Development.--
                        ``(A) In general.--In cooperation with the State and
                    any affected public transportation operator, the
                    metropolitan planning organization designated for a
                    metropolitan area shall develop a TIP for the
                    metropolitan planning area that--
                              ``(i) contains projects consistent with the
                          current metropolitan transportation plan;
                              ``(ii) reflects the investment priorities
                          established in the current metropolitan
                          transportation plan; and
                              ``(iii) once implemented, is designed to make
                          progress toward achieving the performance targets
                          established under subsection (h)(2).
                        ``(B) Opportunity for comment.--In developing the
                    TIP, the metropolitan planning organization, in
                    cooperation with the State and any affected public
                    transportation operator, shall provide an opportunity
                    for participation by interested parties in the
                    development of the program, in accordance with
                    subsection (i)(5).
                        ``(C) Funding estimates.--For the purpose of
                    developing the TIP, the metropolitan planning
                    organization, public transportation agency, and State
                    shall cooperatively develop estimates of funds that are
                    reasonably expected to be available to support program
                    implementation.
                        ``(D) Updating and approval.--The TIP shall be--
                              ``(i) updated at least once every 4 years; and
                              ``(ii) approved by the metropolitan planning
                          organization and the Governor.
                ``(2) Contents.--
                        ``(A) <<NOTE: Time period.>> 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.

    [[Page 126 STAT. 638]]

                        ``(C) Descriptions.--Each project in the TIP shall
                    include sufficient descriptive material (such as type of
                    work, termini, length, and other similar factors) to
                    identify the project or phase of the project.
                        ``(D) Performance target achievement.--The
                    transportation improvement program shall include, to the
                    maximum extent practicable, a description of the
                    anticipated effect of the transportation improvement
                    program toward achieving the performance targets
                    established in the metropolitan transportation plan,
                    linking investment priorities to those performance
                    targets.
                ``(3) Included projects.--
                        ``(A) Projects under this chapter and title 23.--A
                    TIP developed under this subsection for a metropolitan
                    area shall include the projects within the area that are
                    proposed for funding under this chapter and chapter 1 of
                    title 23.
                        ``(B) Projects under chapter 2 of title 23.--
                              ``(i) Regionally significant projects.--
                          Regionally significant projects proposed for
                          funding under chapter 2 of title 23 shall be
                          identified individually in the transportation
                          improvement program.
                              ``(ii) Other projects.--Projects proposed for
                          funding under chapter 2 of title 23 that are not
                          determined to be regionally significant shall be
                          grouped in 1 line item or identified individually
                          in the transportation improvement program.
                        ``(C) Consistency with long-range transportation
                    plan.--Each project shall be consistent with the long-
                    range transportation plan developed under subsection (i)
                    for the area.
                        ``(D) Requirement of anticipated full funding.--The
                    program shall include a project, or an identified phase
                    of a project, only if full funding can reasonably be
                    anticipated to be available for the project or the
                    identified phase within the time period contemplated for
                    completion of the project or the identified phase.
                ``(4) Notice and comment.--Before approving a TIP, a
            metropolitan planning organization, in cooperation with the
            State and any affected public transportation operator, shall
            provide an opportunity for participation by interested parties
            in the development of the program, in accordance with subsection
            (i)(5).
                ``(5) Selection of projects.--
                        ``(A) In general.--Except as otherwise provided in
                    subsection (k)(4) and in addition to the TIP development
                    required under paragraph (1), the selection of Federally
                    funded projects in metropolitan areas shall be carried
                    out, from the approved TIP--
                              ``(i) by--
                                        ``(I) in the case of projects under
                                    title 23, the State; and
                                        ``(II) in the case of projects under
                                    this chapter, the designated recipients
                                    of public transportation funding; and
                              ``(ii) in cooperation with the metropolitan
                          planning organization.

    [[Page 126 STAT. 639]]

                        ``(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) <<NOTE: Public information.>> Publication.--
                        ``(A) Publication of tips.--A TIP involving Federal
                    participation shall be published or otherwise made
                    readily available by the metropolitan planning
                    organization for public review.
                        ``(B) Publication of annual listings of projects.--
                              ``(i) In general.--An annual listing of
                          projects, including investments in pedestrian
                          walkways and bicycle transportation facilities,
                          for which Federal funds have been obligated in the
                          preceding year shall be published or otherwise
                          made available by the cooperative effort of the
                          State, transit operator, and metropolitan planning
                          organization for public review.
                              ``(ii) Requirement.--The listing shall be
                          consistent with the categories identified in the
                          TIP.

        ``(k) Transportation Management Areas.--
                ``(1) Identification and designation.--
                        ``(A) Required identification.--The Secretary shall
                    identify as a transportation management area each
                    urbanized area (as defined by the Bureau of the Census)
                    with a population of over 200,000 individuals.
                        ``(B) Designations on request.--The Secretary shall
                    designate any additional area as a transportation
                    management area on the request of the Governor and the
                    metropolitan planning organization designated for the
                    area.
                ``(2) Transportation plans.--In a transportation management
            area, transportation plans shall be based on a continuing and
            comprehensive transportation planning process carried out by the
            metropolitan planning organization in cooperation with the State
            and public transportation operators.
                ``(3) Congestion management process.--
                        ``(A) In general.--Within a metropolitan planning
                    area serving a transportation management area, the
                    transportation planning process under this section shall
                    address congestion management through a process that
                    provides for effective management and operation, based
                    on a cooperatively developed and implemented
                    metropolitan-wide strategy, of new and existing
                    transportation facilities eligible for funding under
                    this chapter and title 23 through the use of travel
                    demand reduction and operational management strategies.

    [[Page 126 STAT. 640]]

                        ``(B) <<NOTE: Time period.>> Schedule.--The
                    Secretary shall establish an appropriate phase-in
                    schedule for compliance with the requirements of this
                    section but no sooner than 1 year after the
                    identification of a transportation management area.
                ``(4) Selection of projects.--
                        ``(A) In general.--All Federally funded projects
                    carried out within the boundaries of a metropolitan
                    planning area serving a transportation management area
                    under title 23 (excluding projects carried out on the
                    National Highway System) or under this chapter shall be
                    selected for implementation from the approved TIP by the
                    metropolitan planning organization designated for the
                    area in consultation with the State and any affected
                    public transportation operator.
                        ``(B) National highway system projects.--Projects
                    carried out within the boundaries of a metropolitan
                    planning area serving a transportation management area
                    on the National Highway System shall be selected for
                    implementation from the approved TIP by the State in
                    cooperation with the metropolitan planning organization
                    designated for the area.
                ``(5) Certification.--
                        ``(A) In general.--The Secretary shall--
                              ``(i) ensure that the metropolitan planning
                          process of a metropolitan planning organization
                          serving a transportation management area is being
                          carried out in accordance with applicable
                          provisions of Federal law; and
                              ``(ii) <<NOTE: Time period.>> 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

    [[Page 126 STAT. 641]]

                    shall provide for public involvement appropriate to the
                    metropolitan area under review.

        ``(l) Report on Performance-based Planning Processes.--
                ``(1) In general.--The Secretary shall submit to Congress a
            report on the effectiveness of the performance-based planning
            processes of metropolitan planning organizations under this
            section, taking into consideration the requirements of this
            subsection
                ``(2) Report.--Not later than 5 years after the date of
            enactment of the Federal Public Transportation Act of 2012, the
            Secretary shall submit to Congress a report evaluating--
                        ``(A) the overall effectiveness of performance-based
                    planning as a tool for guiding transportation
                    investments;
                        ``(B) the effectiveness of the performance-based
                    planning process of each metropolitan planning
                    organization under this section;
                        ``(C) the extent to which metropolitan planning
                    organizations have achieved, or are currently making
                    substantial progress toward achieving, the performance
                    targets specified under this section and whether
                    metropolitan planning organizations are developing
                    meaningful performance targets; and
                        ``(D) the technical capacity of metropolitan
                    planning organizations that operate within a
                    metropolitan planning area of less than 200,000 and
                    their ability to carry out the requirements of this
                    section.
                ``(3) Publication.--The report under paragraph (2) shall be
            published or otherwise made available in electronically
            accessible formats and means, including on the Internet.

        ``(m) Abbreviated Plans for Certain Areas.--
                ``(1) In general.--Subject to paragraph (2), in the case of
            a metropolitan area not designated as a transportation
            management area under this section, the Secretary may provide
            for the development of an abbreviated transportation plan and
            TIP for the metropolitan planning area that the Secretary
            determines is appropriate to achieve the purposes of this
            section, taking into account the complexity of transportation
            problems in the area.
                ``(2) Nonattainment areas.--The Secretary may not permit
            abbreviated plans or TIPs for a metropolitan area that is in
            nonattainment for ozone or carbon monoxide under the Clean Air
            Act (42 U.S.C. 7401 et seq.).

        ``(n) Additional Requirements for Certain Nonattainment Areas.--
                ``(1) In general.--Notwithstanding any other provisions of
            this chapter or title 23, for transportation management areas
            classified as nonattainment for ozone or carbon monoxide
            pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.), Federal
            funds may not be advanced in such area for any highway project
            that will result in a significant increase in the carrying
            capacity for single-occupant vehicles unless the project is
            addressed through a congestion management process.
                ``(2) Applicability.--This subsection applies to a
            nonattainment area within the metropolitan planning area
            boundaries determined under subsection (e).

        ``(o) Limitation on Statutory Construction.--Nothing in this section
    shall be construed to confer on a metropolitan planning

    [[Page 126 STAT. 642]]

    organization the authority to impose legal requirements on any
    transportation facility, provider, or project not eligible under this
    chapter or title 23.
        ``(p) Funding.--Funds set aside under section 104(f) of title 23 or
    section 5305(g) shall be available to carry out this section.
        ``(q) Continuation of Current Review Practice.--Since plans and TIPs
    described in this section are subject to a reasonable opportunity for
    public comment, since individual projects included in plans and TIPs are
    subject to review under the National Environmental Policy Act of 1969
    (42 U.S.C. 4321 et seq.), and since decisions by the Secretary
    concerning plans and TIPs described in this section have not been
    reviewed under that Act as of January 1, 1997, any decision by the
    Secretary concerning a plan or TIP described in this section shall not
    be considered to be a Federal action subject to review under that
    Act.''.
        (b) <<NOTE: 49 USC 5303 note.>> Pilot Program for Transit-oriented
    Development Planning.--
                (1) Definitions.--In this subsection the following
            definitions shall apply:
                        (A) Eligible project.--The term ``eligible project''
                    means a new fixed guideway capital project or a core
                    capacity improvement project, as those terms are defined
                    in section 5309 of title 49, United States Code, as
                    amended by this division.
                        (B) Secretary.--The term ``Secretary'' means the
                    Secretary of Transportation.
                (2) General authority.--The Secretary may make grants under
            this subsection to a State or local governmental authority to
            assist in financing comprehensive planning associated with an
            eligible project that seeks to--
                        (A) enhance economic development, ridership, and
                    other goals established during the project development
                    and engineering processes;
                        (B) facilitate multimodal connectivity and
                    accessibility;
                        (C) increase access to transit hubs for pedestrian
                    and bicycle traffic;
                        (D) enable mixed-use development;
                        (E) identify infrastructure needs associated with
                    the eligible project; and
                        (F) include private sector participation.
                (3) Eligibility.--A State or local governmental authority
            that desires to participate in the program under this subsection
            shall submit to the Secretary an application that contains, at a
            minimum--
                        (A) identification of an eligible project;
                        (B) a schedule and process for the development of a
                    comprehensive plan;
                        (C) a description of how the eligible project and
                    the proposed comprehensive plan advance the metropolitan
                    transportation plan of the metropolitan planning
                    organization;
                        (D) proposed performance criteria for the
                    development and implementation of the comprehensive
                    plan; and
                        (E) identification of--
                              (i) partners;
                              (ii) availability of and authority for
                          funding; and

    [[Page 126 STAT. 643]]

                              (iii) potential State, local or other
                          impediments to the implementation of the
                          comprehensive plan.
    SEC. 20006. STATEWIDE AND NONMETROPOLITAN TRANSPORTATION PLANNING.

        Section 5304 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5304. Statewide and nonmetropolitan transportation planning

        ``(a) General Requirements.--
                ``(1) Development of plans and programs.--Subject to section
            5303, to accomplish the objectives stated in section 5303(a),
            each State shall develop a statewide transportation plan and a
            statewide transportation improvement program for all areas of
            the State.
                ``(2) Contents.--The statewide transportation plan and the
            transportation improvement program developed for each State
            shall provide for the development and integrated management and
            operation of transportation systems and facilities (including
            accessible pedestrian walkways and bicycle transportation
            facilities) that will function as an intermodal transportation
            system for the State and an integral part of an intermodal
            transportation system for the United States.
                ``(3) Process of development.--The process for developing
            the statewide plan and the transportation improvement program
            shall provide for consideration of all modes of transportation
            and the policies stated in section 5303(a) and shall be
            continuing, cooperative, and comprehensive to the degree
            appropriate, based on the complexity of the transportation
            problems to be addressed.

        ``(b) Coordination With Metropolitan Planning; State Implementation
    Plan.--A State shall--
                ``(1) coordinate planning carried out under this section
            with the transportation planning activities carried out under
            section 5303 for metropolitan areas of the State and with
            statewide trade and economic development planning activities and
            related multistate planning efforts; and
                ``(2) develop the transportation portion of the State
            implementation plan as required by the Clean Air Act (42 U.S.C.
            7401 et seq.).

        ``(c) Interstate Agreements.--
                ``(1) In general.--Two or more States may enter into
            agreements or compacts, not in conflict with any law of the
            United States, for cooperative efforts and mutual assistance in
            support of activities authorized under this section related to
            interstate areas and localities in the States and establishing
            authorities the States consider desirable for making the
            agreements and compacts effective.
                ``(2) Reservation of rights.--The right to alter, amend, or
            repeal interstate compacts entered into under this subsection is
            expressly reserved.

        ``(d) Scope of Planning Process.--
                ``(1) In general.--Each State shall carry out a statewide
            transportation planning process that provides for consideration
            and implementation of projects, strategies, and services that
            will--

    [[Page 126 STAT. 644]]

                        ``(A) support the economic vitality of the United
                    States, the States, nonmetropolitan areas, and
                    metropolitan areas, especially by enabling global
                    competitiveness, productivity, and efficiency;
                        ``(B) increase the safety of the transportation
                    system for motorized and nonmotorized users;
                        ``(C) increase the security of the transportation
                    system for motorized and nonmotorized users;
                        ``(D) increase the accessibility and mobility of
                    people and freight;
                        ``(E) protect and enhance the environment, promote
                    energy conservation, improve the quality of life, and
                    promote consistency between transportation improvements
                    and State and local planned growth and economic
                    development patterns;
                        ``(F) enhance the integration and connectivity of
                    the transportation system, across and between modes
                    throughout the State, for people and freight;
                        ``(G) promote efficient system management and
                    operation; and
                        ``(H) emphasize the preservation of the existing
                    transportation system.
                ``(2) Performance-based approach.--
                        ``(A) In general.--The statewide transportation
                    planning process shall provide for the establishment and
                    use of a performance-based approach to transportation
                    decisionmaking to support the national goals described
                    in section 150(b) of title 23 and the general purposes
                    described in section 5301.
                        ``(B) Performance targets.--
                              ``(i) Surface transportation performance
                          targets.--
                                        ``(I) In general.--Each State shall
                                    establish performance targets that
                                    address the performance measures
                                    described in section 150(c) of title 23,
                                    where applicable, to use in tracking
                                    progress towards attainment of critical
                                    outcomes for the State.
                                        ``(II) Coordination.--Selection of
                                    performance targets by a State shall be
                                    coordinated with the relevant
                                    metropolitan planning organizations to
                                    ensure consistency, to the maximum
                                    extent practicable.
                              ``(ii) Public transportation performance
                          targets.--In urbanized areas with a population of
                          fewer than 200,000 individuals, as calculated
                          according to the most recent decennial census, and
                          not represented by a metropolitan planning
                          organization, selection of performance targets by
                          a State shall be coordinated, to the maximum
                          extent practicable, with providers of public
                          transportation to ensure consistency with sections
                          5326(c) and 5329(d).
                        ``(C) Integration of other performance-based
                    plans.--A State shall integrate into the statewide
                    transportation planning process, directly or by
                    reference, the goals, objectives, performance measures,
                    and targets described in this paragraph, in other State
                    transportation plans and

    [[Page 126 STAT. 645]]

                    transportation processes, as well as any plans developed
                    pursuant to title 23 by providers of public
                    transportation in urbanized areas with a population of
                    fewer than 200,000 individuals, as calculated according
                    to the most recent decennial census, and not represented
                    by a metropolitan planning organization, required as
                    part of a performance-based program.
                        ``(D) Use of performance measures and targets.--The
                    performance measures and targets established under this
                    paragraph shall be considered by a State when developing
                    policies, programs, and investment priorities reflected
                    in the statewide transportation plan and statewide
                    transportation improvement program.
                ``(3) Failure to consider factors.--The failure to take into
            consideration the factors specified in paragraphs (1) and (2)
            shall not be subject to review by any court under this chapter,
            title 23, subchapter II of chapter 5 of title 5, or chapter 7 of
            title 5 in any matter affecting a statewide transportation plan,
            a statewide transportation improvement program, a project or
            strategy, or the certification of a planning process.

        ``(e) Additional Requirements.--``In carrying out planning under
    this section, each State shall, at a minimum--
                ``(1) with respect to nonmetropolitan areas, cooperate with
            affected local officials with responsibility for transportation
            or, if applicable, through regional transportation planning
            organizations described in subsection (l);
                ``(2) consider the concerns of Indian tribal governments and
            Federal land management agencies that have jurisdiction over
            land within the boundaries of the State; and
                ``(3) consider coordination of transportation plans, the
            transportation improvement program, and planning activities with
            related planning activities being carried out outside of
            metropolitan planning areas and between States.

        ``(f) Long-range Statewide Transportation Plan.--
                ``(1) <<NOTE: Time period.>> Development.--Each State shall
            develop a long-range statewide transportation plan, with a
            minimum 20-year forecast period for all areas of the State, that
            provides for the development and implementation of the
            intermodal transportation system of the State.
                ``(2) Consultation with governments.--
                        ``(A) Metropolitan areas.--The statewide
                    transportation plan shall be developed for each
                    metropolitan area in the State in cooperation with the
                    metropolitan planning organization designated for the
                    metropolitan area under section 5303.
                        ``(B) Nonmetropolitan areas.--
                              ``(i) In general.--With respect to
                          nonmetropolitan areas, the statewide
                          transportation plan shall be developed in
                          cooperation with affected nonmetropolitan
                          officials with responsibility for transportation
                          or, if applicable, through regional transportation
                          planning organizations described in subsection
                          (l).
                              ``(ii) Role of secretary.--The Secretary shall
                          not review or approve the consultation process in
                          each State.
                        ``(C) Indian tribal areas.--With respect to each
                    area of the State under the jurisdiction of an Indian
                    tribal

    [[Page 126 STAT. 646]]

                    government, the statewide transportation plan shall be
                    developed in consultation with the tribal government and
                    the Secretary of the Interior.
                        ``(D) Consultation, comparison, and consideration.--
                              ``(i) In general.--The long-range
                          transportation plan shall be developed, as
                          appropriate, in consultation with State, tribal,
                          and local agencies responsible for land use
                          management, natural resources, environmental
                          protection, conservation, and historic
                          preservation.
                              ``(ii) Comparison and consideration.--
                          Consultation under clause (i) shall involve
                          comparison of transportation plans to State and
                          tribal conservation plans or maps, if available,
                          and comparison of transportation plans to
                          inventories of natural or historic resources, if
                          available.
                ``(3) Participation by interested parties.--
                        ``(A) In general.--In developing the statewide
                    transportation plan, the State shall provide to--
                              ``(i) nonmetropolitan local elected officials,
                          or, if applicable, through regional transportation
                          planning organizations described in subsection
                          (l), an opportunity to participate in accordance
                          with subparagraph (B)(i); and
                              ``(ii) citizens, affected public agencies,
                          representatives of public transportation
                          employees, freight shippers, private providers of
                          transportation, representatives of users of public
                          transportation, representatives of users of
                          pedestrian walkways and bicycle transportation
                          facilities, representatives of the disabled,
                          providers of freight transportation services, and
                          other interested parties a reasonable opportunity
                          to comment on the proposed plan.
                        ``(B) <<NOTE: Public information.>> Methods.--In
                    carrying out subparagraph (A), the State shall, to the
                    maximum extent practicable--
                              ``(i) develop and document a consultative
                          process to carry out subparagraph (A)(i) that is
                          separate and discrete from the public involvement
                          process developed under clause (ii);
                              ``(ii) hold any public meetings at convenient
                          and accessible locations and times;
                              ``(iii) employ visualization techniques to
                          describe plans; and
                              ``(iv) make public information available in
                          electronically accessible format and means, such
                          as the World Wide Web, as appropriate to afford
                          reasonable opportunity for consideration of public
                          information under subparagraph (A).
                ``(4) Mitigation activities.--
                        ``(A) In general.--A long-range transportation plan
                    shall include a discussion of potential environmental
                    mitigation activities and potential areas to carry out
                    these activities, including activities that may have the
                    greatest potential to restore and maintain the
                    environmental functions affected by the plan.

    [[Page 126 STAT. 647]]

                        ``(B) Consultation.--The discussion shall be
                    developed in consultation with Federal, State, and
                    tribal wildlife, land management, and regulatory
                    agencies.
                ``(5) Financial plan.--The statewide transportation plan may
            include--
                        ``(A) a financial plan that--
                              ``(i) demonstrates how the adopted statewide
                          transportation plan can be implemented;
                              ``(ii) indicates resources from public and
                          private sources that are reasonably expected to be
                          made available to carry out the plan; and
                              ``(iii) recommends any additional financing
                          strategies for needed projects and programs; and
                        ``(B) for illustrative purposes, additional projects
                    that would be included in the adopted statewide
                    transportation plan if reasonable additional resources
                    beyond those identified in the financial plan were
                    available.
                ``(6) Selection of projects from illustrative list.--A State
            shall not be required to select any project from the
            illustrative list of additional projects included in the
            financial plan described in paragraph (5).
                ``(7) Performance-based approach.--The statewide
            transportation plan should include--
                        ``(A) a description of the performance measures and
                    performance targets used in assessing the performance of
                    the transportation system in accordance with subsection
                    (d)(2); and
                        ``(B) a system performance report and subsequent
                    updates evaluating the condition and performance of the
                    transportation system with respect to the performance
                    targets described in subsection (d)(2), including
                    progress achieved by the metropolitan planning
                    organization in meeting the performance targets in
                    comparison with system performance recorded in previous
                    reports;
                ``(8) Existing system.--The statewide transportation plan
            should include capital, operations and management strategies,
            investments, procedures, and other measures to ensure the
            preservation and most efficient use of the existing
            transportation system.
                ``(9) Publication of long-range transportation plans.--Each
            long-range transportation plan prepared by a State shall be
            published or otherwise made available, including (to the maximum
            extent practicable) in electronically accessible formats and
            means, such as the World Wide Web.

        ``(g) Statewide Transportation Improvement Program.--
                ``(1) Development.--
                        ``(A) In general.--Each State shall develop a
                    statewide transportation improvement program for all
                    areas of the State.
                        ``(B) <<NOTE: Time period.>> Duration and updating
                    of program.--Each program developed under subparagraph
                    (A) shall cover a period of 4 years and shall be updated
                    every 4 years or more frequently if the Governor of the
                    State elects to update more frequently.
                ``(2) Consultation with governments.--

    [[Page 126 STAT. 648]]

                        ``(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.--
                              ``(i) In general.--With respect to each
                          nonmetropolitan area in the State, the program
                          shall be developed in cooperation with affected
                          nonmetropolitan local officials with
                          responsibility for transportation or, if
                          applicable, through regional transportation
                          planning organizations described in subsection
                          (l).
                              ``(ii) Role of secretary.--The Secretary shall
                          not review or approve the specific consultation
                          process in the State.
                        ``(C) Indian tribal areas.--With respect to each
                    area of the State under the jurisdiction of an Indian
                    tribal government, the program shall be developed in
                    consultation with the tribal government and the
                    Secretary of the Interior.
                ``(3) Participation by interested parties.--In developing
            the program, the State shall provide citizens, affected public
            agencies, representatives of public transportation employees,
            freight shippers, private providers of transportation, providers
            of freight transportation services, representatives of users of
            public transportation, representatives of users of pedestrian
            walkways and bicycle transportation facilities, representatives
            of the disabled, and other interested parties with a reasonable
            opportunity to comment on the proposed program.
                ``(4) Performance target achievement.--A statewide
            transportation improvement program shall include, to the maximum
            extent practicable, a discussion of the anticipated effect of
            the statewide transportation improvement program toward
            achieving the performance targets established in the statewide
            transportation plan, linking investment priorities to those
            performance targets.
                ``(5) Included projects.--
                        ``(A) In general.--A transportation improvement
                    program developed under this subsection for a State
                    shall include Federally supported surface transportation
                    expenditures within the boundaries of the State.
                        ``(B) Listing of projects.--
                              ``(i) <<NOTE: Public information.>> In
                          general.--An annual listing of projects for which
                          funds have been obligated for the preceding year
                          in each metropolitan planning area shall be
                          published or otherwise made available by the
                          cooperative effort of the State, transit operator,
                          and the metropolitan planning organization for
                          public review.
                              ``(ii) Funding categories.--The listing
                          described in clause (i) shall be consistent with
                          the funding categories identified in each
                          metropolitan transportation improvement program.
                        ``(C) Projects under chapter 2.--
                              ``(i) Regionally significant projects.--
                          Regionally significant projects proposed for
                          funding under chapter 2 of title 23 shall be
                          identified individually in the transportation
                          improvement program.

    [[Page 126 STAT. 649]]

                              ``(ii) Other projects.--Projects proposed for
                          funding under chapter 2 of title 23 that are not
                          determined to be regionally significant shall be
                          grouped in 1 line item or identified individually
                          in the transportation improvement program.
                        ``(D) Consistency with statewide transportation
                    plan.--Each project shall be--
                              ``(i) consistent with the statewide
                          transportation plan developed under this section
                          for the State;
                              ``(ii) identical to the project or phase of
                          the project as described in an approved
                          metropolitan transportation plan; and
                              ``(iii) in conformance with the applicable
                          State air quality implementation plan developed
                          under the Clean Air Act (42 U.S.C. 7401 et seq.),
                          if the project is carried out in an area
                          designated as a nonattainment area for ozone,
                          particulate matter, or carbon monoxide under part
                          D of title I of that Act (42 U.S.C. 7501 et seq.).
                        ``(E) Requirement of anticipated full funding.--The
                    transportation improvement program shall include a
                    project, or an identified phase of a project, only if
                    full funding can reasonably be anticipated to be
                    available for the project within the time period
                    contemplated for completion of the project.
                        ``(F) Financial plan.--
                              ``(i) In general.--The transportation
                          improvement program may include a financial plan
                          that demonstrates how the approved transportation
                          improvement program can be implemented, indicates
                          resources from public and private sources that are
                          reasonably expected to be made available to carry
                          out the transportation improvement program, and
                          recommends any additional financing strategies for
                          needed projects and programs.
                              ``(ii) Additional projects.--The financial
                          plan may include, for illustrative purposes,
                          additional projects that would be included in the
                          adopted transportation plan if reasonable
                          additional resources beyond those identified in
                          the financial plan were available.
                        ``(G) Selection of projects from illustrative
                    list.--
                              ``(i) No required selection.--Notwithstanding
                          subparagraph (F), a State shall not be required to
                          select any project from the illustrative list of
                          additional projects included in the financial plan
                          under subparagraph (F).
                              ``(ii) Required action by the secretary.--
                          Action by the Secretary shall be required for a
                          State to select any project from the illustrative
                          list of additional projects included in the
                          financial plan under subparagraph (F) for
                          inclusion in an approved transportation
                          improvement program.
                        ``(H) Priorities.--The transportation improvement
                    program shall reflect the priorities for programming and

    [[Page 126 STAT. 650]]

                    expenditures of funds, including transportation
                    enhancement activities, required by this chapter and
                    title 23.
                ``(6) Project selection for areas of less than 50,000
            population.--
                        ``(A) In general.--Projects carried out in areas
                    with populations of less than 50,000 individuals shall
                    be selected, from the approved transportation
                    improvement program (excluding projects carried out on
                    the National Highway System and projects carried out
                    under the bridge program or the Interstate maintenance
                    program under title 23 or under sections 5310 and 5311
                    of this chapter), by the State in cooperation with the
                    affected nonmetropolitan local officials with
                    responsibility for transportation or, if applicable,
                    through regional transportation planning organizations
                    described in subsection (l).
                        ``(B) Other projects.--Projects carried out in areas
                    with populations of less than 50,000 individuals on the
                    National Highway System or under the bridge program or
                    the Interstate maintenance program under title 23 or
                    under sections 5310 and 5311 of this chapter shall be
                    selected, from the approved statewide transportation
                    improvement program, by the State in consultation with
                    the affected nonmetropolitan local officials with
                    responsibility for transportation.
                ``(7) Transportation improvement program approval.--Every 4
            years, a transportation improvement program developed under this
            subsection shall be reviewed and approved by the Secretary if
            based on a current planning finding.
                ``(8) <<NOTE: Time period.>> Planning finding.--A finding
            shall be made by the Secretary at least every 4 years that the
            transportation planning process through which statewide
            transportation plans and programs are developed is consistent
            with this section and section 5303.
                ``(9) Modifications to project priority.--Notwithstanding
            any other provision of law, action by the Secretary shall not be
            required to advance a project included in the approved
            transportation improvement program in place of another project
            in the program.

        ``(h) Performance-based Planning Processes Evaluation.--
                ``(1) <<NOTE: Criteria.>> In general.--The Secretary shall
            establish criteria to evaluate the effectiveness of the
            performance-based planning processes of States, taking into
            consideration the following:
                        ``(A) The extent to which the State is making
                    progress toward achieving, the performance targets
                    described in subsection (d)(2), taking into account
                    whether the State developed appropriate performance
                    targets.
                        ``(B) The extent to which the State has made
                    transportation investments that are efficient and cost-
                    effective.
                        ``(C) <<NOTE: Public information.>> The extent to
                    which the State--
                              ``(i) has developed an investment process that
                          relies on public input and awareness to ensure
                          that investments are transparent and accountable;
                          and
                              ``(ii) provides reports allowing the public to
                          access the information being collected in a format
                          that allows the public to meaningfully assess the
                          performance of the State.
                ``(2) Report.--

    [[Page 126 STAT. 651]]

                        ``(A) In general.--Not later than 5 years after the
                    date of enactment of the Federal Public Transportation
                    Act of 2012, the Secretary shall submit to Congress a
                    report evaluating--
                              ``(i) the overall effectiveness of
                          performance-based planning as a tool for guiding
                          transportation investments; and
                              ``(ii) the effectiveness of the performance-
                          based planning process of each State.
                        ``(B) Publication.--The report under subparagraph
                    (A) shall be published or otherwise made available in
                    electronically accessible formats and means, including
                    on the Internet.

        ``(i) Treatment of Certain State Laws as Congestion Management
    Processes.--For purposes of this section and section 5303, and sections
    134 and 135 of title 23, State laws, rules, or regulations pertaining to
    congestion management systems or programs may constitute the congestion
    management process under this this section and section 5303, and
    sections 134 and 135 of title 23, if the Secretary finds that the State
    laws, rules, or regulations are consistent with, and fulfill the intent
    of, the purposes of this section and section 5303, and sections 134 and
    135 of title 23, as appropriate.
        ``(j) Continuation of Current Review Practice.--Since the statewide
    transportation plan and the transportation improvement program described
    in this section are subject to a reasonable opportunity for public
    comment, since individual projects included in the statewide
    transportation plans and the transportation improvement program are
    subject to review under the National Environmental Policy Act of 1969
    (42 U.S.C. 4321 et seq.), and since decisions by the Secretary
    concerning statewide transportation plans or the transportation
    improvement program described in this section have not been reviewed
    under that Act as of January 1, 1997, any decision by the Secretary
    concerning a metropolitan or statewide transportation plan or the
    transportation improvement program described in this section shall not
    be considered to be a Federal action subject to review under the
    National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
        ``(k) <<NOTE: Guidance.>> Schedule for Implementation.--The
    Secretary shall issue guidance on a schedule for implementation of the
    changes made by this section, taking into consideration the established
    planning update cycle for States. The Secretary shall not require a
    State to deviate from its established planning update cycle to implement
    changes made by this section. <<NOTE: Deadline.>> States shall reflect
    changes made to their transportation plan or transportation improvement
    program updates not later than 2 years after the date of issuance of
    guidance by the Secretary under this subsection.

        ``(l) Designation of Regional Transportation Planning
    Organizations.--
                ``(1) In general.--To carry out the transportation planning
            process required by this section, a State may establish and
            designate regional transportation planning organizations to
            enhance the planning, coordination, and implementation of
            statewide strategic long-range transportation plans and
            transportation improvement programs, with an emphasis on
            addressing the needs of nonmetropolitan areas of the State.

    [[Page 126 STAT. 652]]

                ``(2) Structure.--A regional transportation planning
            organization shall be established as a multijurisdictional
            organization of nonmetropolitan local officials or their
            designees who volunteer for such organization and
            representatives of local transportation systems who volunteer
            for such organization.
                ``(3) Requirements.--A regional transportation planning
            organization shall establish, at a minimum--
                        ``(A) a policy committee, the majority of which
                    shall consist of nonmetropolitan local officials, or
                    their designees, and, as appropriate, additional
                    representatives from the State, private business,
                    transportation service providers, economic development
                    practitioners, and the public in the region; and
                        ``(B) a fiscal and administrative agent, such as an
                    existing regional planning and development organization,
                    to provide professional planning, management, and
                    administrative support.
                ``(4) Duties.--The duties of a regional transportation
            planning organization shall include--
                        ``(A) developing and maintaining, in cooperation
                    with the State, regional long-range multimodal
                    transportation plans;
                        ``(B) developing a regional transportation
                    improvement program for consideration by the State;
                        ``(C) fostering the coordination of local planning,
                    land use, and economic development plans with State,
                    regional, and local transportation plans and programs;
                        ``(D) providing technical assistance to local
                    officials;
                        ``(E) participating in national, multistate, and
                    State policy and planning development processes to
                    ensure the regional and local input of nonmetropolitan
                    areas;
                        ``(F) providing a forum for public participation in
                    the statewide and regional transportation planning
                    processes;
                        ``(G) considering and sharing plans and programs
                    with neighboring regional transportation planning
                    organizations, metropolitan planning organizations, and,
                    where appropriate, tribal organizations; and
                        ``(H) conducting other duties, as necessary, to
                    support and enhance the statewide planning process under
                    subsection (d).
                ``(5) States without regional transportation planning
            organizations.-- <<NOTE: Consultation.>> If a State chooses not
            to establish or designate a regional transportation planning
            organization, the State shall consult with affected
            nonmetropolitan local officials to determine projects that may
            be of regional significance.''.
    SEC. 20007. URBANIZED AREA FORMULA GRANTS.

        Section 5307 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5307. Urbanized area formula grants

        ``(a) General Authority.--
                ``(1) Grants.--The Secretary may make grants under this
            section for--
                        ``(A) capital projects;
                        ``(B) planning;

    [[Page 126 STAT. 653]]

                        ``(C) job access and reverse commute projects; and
                        ``(D) operating costs of equipment and facilities
                    for use in public transportation in an urbanized area
                    with a population of fewer than 200,000 individuals, as
                    determined by the Bureau of the Census.
                ``(2) Special rule.--The Secretary may make grants under
            this section to finance the operating cost of equipment and
            facilities for use in public transportation, excluding rail
            fixed guideway, in an urbanized area with a population of not
            fewer than 200,000 individuals, as determined by the Bureau of
            the Census--
                        ``(A) for public transportation systems that operate
                    75 or fewer buses in fixed route service during peak
                    service hours, in an amount not to exceed 75 percent of
                    the share of the apportionment which is attributable to
                    such systems within the urbanized area, as measured by
                    vehicle revenue hours; and
                        ``(B) for public transportation systems that operate
                    a minimum of 76 buses and a maximum of 100 buses in
                    fixed route service during peak service hours, in an
                    amount not to exceed 50 percent of the share of the
                    apportionment which is attributable to such systems
                    within the urbanized area, as measured by vehicle
                    revenue hours.

        ``(b) <<NOTE: Public information.>> Program of Projects.--Each
    recipient of a grant shall--
                ``(1) make available to the public information on amounts
            available to the recipient under this section;
                ``(2) develop, in consultation with interested parties,
            including private transportation providers, a proposed program
            of projects for activities to be financed;
                ``(3) <<NOTE: Publication.>> publish a proposed program of
            projects in a way that affected individuals, private
            transportation providers, and local elected officials have the
            opportunity to examine the proposed program and submit comments
            on the proposed program and the performance of the recipient;
                ``(4) provide an opportunity for a public hearing in which
            to obtain the views of individuals on the proposed program of
            projects;
                ``(5) ensure that the proposed program of projects provides
            for the coordination of public transportation services assisted
            under section 5336 of this title with transportation services
            assisted from other United States Government sources;
                ``(6) consider comments and views received, especially those
            of private transportation providers, in preparing the final
            program of projects; and
                ``(7) make the final program of projects available to the
            public.

        ``(c) Grant Recipient Requirements.--A recipient may receive a grant
    in a fiscal year only if--
                ``(1) <<NOTE: Certification.>> the recipient, within the
            time the Secretary prescribes, submits a final program of
            projects prepared under subsection (b) of this section and a
            certification for that fiscal year that the recipient (including
            a person receiving amounts from a Governor under this section)--
                        ``(A) has or will have the legal, financial, and
                    technical capacity to carry out the program, including
                    safety and security aspects of the program;

    [[Page 126 STAT. 654]]

                        ``(B) has or will have satisfactory continuing
                    control over the use of equipment and facilities;
                        ``(C) will maintain equipment and facilities;
                        ``(D) will ensure that, during non-peak hours for
                    transportation using or involving a facility or
                    equipment of a project financed under this section, a
                    fare that is not more than 50 percent of the peak hour
                    fare will be charged for any--
                              ``(i) senior;
                              ``(ii) individual who, because of illness,
                          injury, age, congenital malfunction, or other
                          incapacity or temporary or permanent disability
                          (including an individual who is a wheelchair user
                          or has semiambulatory capability), cannot use a
                          public transportation service or a public
                          transportation facility effectively without
                          special facilities, planning, or design; and
                              ``(iii) individual presenting a Medicare card
                          issued to that individual under title II or XVIII
                          of the Social Security Act (42 U.S.C. 401 et seq.
                          and 1395 et seq.);
                        ``(E) in carrying out a procurement under this
                    section, will comply with sections 5323 and 5325;
                        ``(F) has complied with subsection (b) of this
                    section;
                        ``(G) has available and will provide the required
                    amounts as provided by subsection (d) of this section;
                        ``(H) will comply with sections 5303 and 5304;
                        ``(I) <<NOTE: Public comment.>> has a locally
                    developed process to solicit and consider public comment
                    before raising a fare or carrying out a major reduction
                    of transportation;
                        ``(J)(i) will expend for each fiscal year for public
                    transportation security projects, including increased
                    lighting in or adjacent to a public transportation
                    system (including bus stops, subway stations, parking
                    lots, and garages), increased camera surveillance of an
                    area in or adjacent to that system, providing an
                    emergency telephone line to contact law enforcement or
                    security personnel in an area in or adjacent to that
                    system, and any other project intended to increase the
                    security and safety of an existing or planned public
                    transportation system, at least 1 percent of the amount
                    the recipient receives for each fiscal year under
                    section 5336 of this title; or
                        ``(ii) has decided that the expenditure for security
                    projects is not necessary;
                        ``(K) in the case of a recipient for an urbanized
                    area with a population of not fewer than 200,000
                    individuals, as determined by the Bureau of the Census--
                              ``(i) will expend not less than 1 percent of
                          the amount the recipient receives each fiscal year
                          under this section for associated transit
                          improvements, as defined in section 5302; and
                              ``(ii) <<NOTE: Reports.>> will submit an
                          annual report listing projects carried out in the
                          preceding fiscal year with those funds; and
                        ``(L) will comply with section 5329(d); and
                ``(2) the Secretary accepts the certification.

        ``(d) Government Share of Costs.--
                ``(1) Capital projects.--A grant for a capital project under
            this section shall be for 80 percent of the net project cost

    [[Page 126 STAT. 655]]

            of the project. The recipient may provide additional local
            matching amounts.
                ``(2) Operating expenses.--A grant for operating expenses
            under this section may not exceed 50 percent of the net project
            cost of the project.
                ``(3) Remaining costs.--Subject to paragraph (4), the
            remainder of the net project costs shall be provided--
                        ``(A) in cash from non-Government sources other than
                    revenues from providing public transportation services;
                        ``(B) from revenues from the sale of advertising and
                    concessions;
                        ``(C) from an undistributed cash surplus, a
                    replacement or depreciation cash fund or reserve, or new
                    capital;
                        ``(D) from amounts appropriated or otherwise made
                    available to a department or agency of the Government
                    (other than the Department of Transportation) that are
                    eligible to be expended for transportation; and
                        ``(E) from amounts received under a service
                    agreement with a State or local social service agency or
                    private social service organization.
                ``(4) Use of certain funds.--For purposes of subparagraphs
            (D) and (E) of paragraph (3), the prohibitions on the use of
            funds for matching requirements under section 403(a)(5)(C)(vii)
            of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall
            not apply to Federal or State funds to be used for
            transportation purposes.

        ``(e) Undertaking Projects in Advance.--
                ``(1) Payment.--The Secretary may pay the Government share
            of the net project cost to a State or local governmental
            authority that carries out any part of a project eligible under
            subparagraph (A) or (B) of subsection (a)(1) without the aid of
            amounts of the Government and according to all applicable
            procedures and requirements if--
                        ``(A) the recipient applies for the payment;
                        ``(B) the Secretary approves the payment; and
                        ``(C) before carrying out any part of the project,
                    the Secretary approves the plans and specifications for
                    the part in the same way as for other projects under
                    this section.
                ``(2) Approval of application.--The Secretary may approve an
            application under paragraph (1) of this subsection only if an
            authorization for this section is in effect for the fiscal year
            to which the application applies. The Secretary may not approve
            an application if the payment will be more than--
                        ``(A) the recipient's expected apportionment under
                    section 5336 of this title if the total amount
                    authorized to be appropriated for the fiscal year to
                    carry out this section is appropriated; less
                        ``(B) the maximum amount of the apportionment that
                    may be made available for projects for operating
                    expenses under this section.
                ``(3) Financing costs.--
                        ``(A) In general.--The cost of carrying out part of
                    a project includes the amount of interest earned and
                    payable on bonds issued by the recipient to the extent
                    proceeds of the bonds are expended in carrying out the
                    part.

    [[Page 126 STAT. 656]]

                        ``(B) Limitation on the amount of interest.--The
                    amount of interest allowed under this paragraph may not
                    be more than the most favorable financing terms
                    reasonably available for the project at the time of
                    borrowing.
                        ``(C) Certification.--The applicant shall certify,
                    in a manner satisfactory to the Secretary, that the
                    applicant has shown reasonable diligence in seeking the
                    most favorable financing terms.

        ``(f) Reviews, Audits, and Evaluations.--
                ``(1) Annual review.--
                        ``(A) In general.--At least annually, the Secretary
                    shall carry out, or require a recipient to have carried
                    out independently, reviews and audits the Secretary
                    considers appropriate to establish whether the recipient
                    has carried out--
                              ``(i) the activities proposed under subsection
                          (c) of this section in a timely and effective way
                          and can continue to do so; and
                              ``(ii) those activities and its certifications
                          and has used amounts of the Government in the way
                          required by law.
                        ``(B) Auditing procedures.--An audit of the use of
                    amounts of the Government shall comply with the auditing
                    procedures of the Comptroller General.
                ``(2) Triennial review.--At least once every 3 years, the
            Secretary shall review and evaluate completely the performance
            of a recipient in carrying out the recipient's program,
            specifically referring to compliance with statutory and
            administrative requirements and the extent to which actual
            program activities are consistent with the activities proposed
            under subsection (c) of this section and the planning process
            required under sections 5303, 5304, and 5305 of this title. To
            the extent practicable, the Secretary shall coordinate such
            reviews with any related State or local reviews.
                ``(3) Actions resulting from review, audit, or evaluation.--
            The Secretary may take appropriate action consistent with a
            review, audit, and evaluation under this subsection, including
            making an appropriate adjustment in the amount of a grant or
            withdrawing the grant.

        ``(g) Treatment.--For purposes of this section, the United States
    Virgin Islands shall be treated as an urbanized area, as defined in
    section 5302.
        ``(h) Passenger Ferry Grants.--
                ``(1) In general.--The Secretary may make grants under this
            subsection to recipients for passenger ferry projects that are
            eligible for a grant under subsection (a).
                ``(2) Grant requirements.--Except as otherwise provided in
            this subsection, a grant under this subsection shall be subject
            to the same terms and conditions as a grant under subsection
            (a).
                ``(3) Competitive process.--The Secretary shall solicit
            grant applications and make grants for eligible projects on a
            competitive basis.''.
    SEC. 20008. FIXED GUIDEWAY CAPITAL INVESTMENT GRANTS.

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

    [[Page 126 STAT. 657]]

    ``Sec. 5309. Fixed guideway capital investment grants

        ``(a) Definitions.--In this section, the following definitions shall
    apply:
                ``(1) Applicant.--The term `applicant' means a State or
            local governmental authority that applies for a grant under this
            section.
                ``(2) Core capacity improvement project.--The term `core
            capacity improvement project' means a substantial corridor-based
            capital investment in an existing fixed guideway system that
            increases the capacity of a corridor by not less than 10
            percent. The term does not include project elements designed to
            maintain a state of good repair of the existing fixed guideway
            system.
                ``(3) Corridor-based bus rapid transit project.--The term
            `corridor-based bus rapid transit project' means a small start
            project utilizing buses in which the project represents a
            substantial investment in a defined corridor as demonstrated by
            features that emulate the services provided by rail fixed
            guideway public transportation systems, including defined
            stations; traffic signal priority for public transportation
            vehicles; short headway bidirectional services for a substantial
            part of weekdays and weekend days; and any other features the
            Secretary may determine support a long-term corridor investment,
            but the majority of which does not operate in a separated right-
            of-way dedicated for public transportation use during peak
            periods.
                ``(4) Fixed guideway bus rapid transit project.--The term
            `fixed guideway bus rapid transit project' means a bus capital
            project--
                        ``(A) in which the majority of the project operates
                    in a separated right-of-way dedicated for public
                    transportation use during peak periods;
                        ``(B) that represents a substantial investment in a
                    single route in a defined corridor or subarea; and
                        ``(C) that includes features that emulate the
                    services provided by rail fixed guideway public
                    transportation systems, including--
                              ``(i) defined stations;
                              ``(ii) traffic signal priority for public
                          transportation vehicles;
                              ``(iii) short headway bidirectional services
                          for a substantial part of weekdays and weekend
                          days; and
                              ``(iv) any other features the Secretary may
                          determine are necessary to produce high-quality
                          public transportation services that emulate the
                          services provided by rail fixed guideway public
                          transportation systems.
                ``(5) New fixed guideway capital project.--The term `new
            fixed guideway capital project' means--
                        ``(A) a new fixed guideway project that is a minimum
                    operable segment or extension to an existing fixed
                    guideway system; or
                        ``(B) a fixed guideway bus rapid transit project
                    that is a minimum operable segment or an extension to an
                    existing bus rapid transit system.

    [[Page 126 STAT. 658]]

                ``(6) Program of interrelated projects.--The term `program
            of interrelated projects' means the simultaneous development
            of--
                        ``(A) 2 or more new fixed guideway capital projects
                    or core capacity improvement projects; or
                        ``(B) 1 or more new fixed guideway capital projects
                    and 1 or more core capacity improvement projects.
                ``(7) Small start project.--The term `small start project'
            means a new fixed guideway capital project or corridor-based bus
            rapid transit project for which--
                        ``(A) the Federal assistance provided or to be
                    provided under this section is less than $75,000,000;
                    and
                        ``(B) the total estimated net capital cost is less
                    than $250,000,000.

        ``(b) General Authority.--The Secretary may make grants under this
    section to State and local governmental authorities to assist in
    financing--
                ``(1) new fixed guideway capital projects or small start
            projects, including the acquisition of real property, the
            initial acquisition of rolling stock for the system, the
            acquisition of rights-of-way, and relocation, for fixed guideway
            corridor development for projects in the advanced stages of
            project development or engineering; and
                ``(2) core capacity improvement projects, including the
            acquisition of real property, the acquisition of rights-of-way,
            double tracking, signalization improvements, electrification,
            expanding system platforms, acquisition of rolling stock
            associated with corridor improvements increasing capacity,
            construction of infill stations, and such other capacity
            improvement projects as the Secretary determines are appropriate
            to increase the capacity of an existing fixed guideway system
            corridor by at least 10 percent. Core capacity improvement
            projects do not include elements to improve general station
            facilities or parking, or acquisition of rolling stock alone.

        ``(c) Grant Requirements.--
                ``(1) In general.--The Secretary may make a grant under this
            section for new fixed guideway capital projects, small start
            projects, or core capacity improvement projects, if the
            Secretary determines that--
                        ``(A) the project is part of an approved
                    transportation plan required under sections 5303 and
                    5304; and
                        ``(B) the applicant has, or will have--
                              ``(i) the legal, financial, and technical
                          capacity to carry out the project, including the
                          safety and security aspects of the project;
                              ``(ii) satisfactory continuing control over
                          the use of the equipment or facilities; and
                              ``(iii) the technical and financial capacity
                          to maintain new and existing equipment and
                          facilities.
                ``(2) Certification.--An applicant that has submitted the
            certifications required under subparagraphs (A), (B), (C), and
            (H) of section 5307(c)(1) shall be deemed to have provided
            sufficient information upon which the Secretary may make the
            determinations required under this subsection.
                ``(3) Technical capacity.--The Secretary shall use an
            expedited technical capacity review process for applicants that
            have recently and successfully completed at least 1 new fixed

    [[Page 126 STAT. 659]]

            guideway capital project, or core capacity improvement project,
            if--
                        ``(A) the applicant achieved budget, cost, and
                    ridership outcomes for the project that are consistent
                    with or better than projections; and
                        ``(B) the applicant demonstrates that the applicant
                    continues to have the staff expertise and other
                    resources necessary to implement a new project.
                ``(4) Recipient requirements.--A recipient of a grant
            awarded under this section shall be subject to all terms,
            conditions, requirements, and provisions that the Secretary
            determines to be necessary or appropriate for purposes of this
            section.

        ``(d) New Fixed Guideway Grants.--
                ``(1) Project development phase.--
                        ``(A) <<NOTE: Notifications.>> Entrance into project
                    development phase.--A new fixed guideway capital project
                    shall enter into the project development phase when--
                              ``(i) the applicant--
                                        ``(I) submits a letter to the
                                    Secretary describing the project and
                                    requesting entry into the project
                                    development phase; and
                                        ``(II) initiates activities required
                                    to be carried out under the National
                                    Environmental Policy Act of 1969 (42
                                    U.S.C. 4321 et seq.) with respect to the
                                    project; and
                              ``(ii) the Secretary--
                                        ``(I) <<NOTE: Deadline.>> responds
                                    in writing to the applicant within 45
                                    days whether the information provided is
                                    sufficient to enter into the project
                                    development phase, including, when
                                    necessary, a detailed description of any
                                    information deemed insufficient; and
                                        ``(II) provides concurrent notice to
                                    the Committee on Banking, Housing, and
                                    Urban Affairs of the Senate and the
                                    Committee on Transportation and
                                    Infrastructure of the House of
                                    Representatives of whether the new fixed
                                    guideway capital project is entering the
                                    project development phase.
                        ``(B) Activities during project development phase.--
                    Concurrent with the analysis required to be made under
                    the National Environmental Policy Act of 1969 (42 U.S.C.
                    4321 et seq.), each applicant shall develop sufficient
                    information to enable the Secretary to make findings of
                    project justification, policies and land use patterns
                    that promote public transportation, and local financial
                    commitment under this subsection.
                        ``(C) Completion of project development activities
                    required.--
                              ``(i) <<NOTE: Deadline.>> In general.--Not
                          later than 2 years after the date on which a
                          project enters into the project development phase,
                          the applicant shall complete the activities
                          required to obtain a project rating under
                          subsection (g)(2) and submit completed
                          documentation to the Secretary.
                              ``(ii) Extension of time.--Upon the request of
                          an applicant, the Secretary may extend the time
                          period

    [[Page 126 STAT. 660]]

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

        ``(e) Core Capacity Improvement Projects.--
                ``(1) Project development phase.--
                        ``(A) <<NOTE: Notifications.>> Entrance into project
                    development phase.--A core capacity improvement project
                    shall be deemed to have entered into the project
                    development phase if--
                              ``(i) the applicant--
                                        ``(I) submits a letter to the
                                    Secretary describing the project and
                                    requesting entry into the project
                                    development phase; and
                                        ``(II) initiates activities required
                                    to be carried out under the National
                                    Environmental Policy Act

    [[Page 126 STAT. 661]]

                                    of 1969 (42 U.S.C. 4321 et seq.) with
                                    respect to the project; and
                              ``(ii) the Secretary--
                                        ``(I) <<NOTE: Deadline.>> responds
                                    in writing to the applicant within 45
                                    days whether the information provided is
                                    sufficient to enter into the project
                                    development phase, including when
                                    necessary a detailed description of any
                                    information deemed insufficient; and
                                        ``(II) provides concurrent notice to
                                    the Committee on Banking, Housing, and
                                    Urban Affairs of the Senate and the
                                    Committee on Transportation and
                                    Infrastructure of the House of
                                    Representatives of whether the core
                                    capacity improvement project is entering
                                    the project development phase.
                        ``(B) Activities during project development phase.--
                    Concurrent with the analysis required to be made under
                    the National Environmental Policy Act of 1969 (42 U.S.C.
                    4321 et seq.), each applicant shall develop sufficient
                    information to enable the Secretary to make findings of
                    project justification and local financial commitment
                    under this subsection.
                        ``(C) Completion of project development activities
                    required.--
                              ``(i) <<NOTE: Deadline.>> In general.--Not
                          later than 2 years after the date on which a
                          project enters into the project development phase,
                          the applicant shall complete the activities
                          required to obtain a project rating under
                          subsection (g)(2) and submit completed
                          documentation to the Secretary.
                              ``(ii) Extension of time.--Upon the request of
                          an applicant, the Secretary may extend the time
                          period under clause (i), if the applicant submits
                          to the Secretary--
                                        ``(I) a reasonable plan for
                                    completing the activities required under
                                    this paragraph; and
                                        ``(II) an estimated time period
                                    within which the applicant will complete
                                    such activities.
                ``(2) Engineering phase.--
                        ``(A) <<NOTE: Determination.>> In general.--A core
                    capacity improvement project may advance into the
                    engineering phase upon completion of activities required
                    under the National Environmental Policy Act of 1969 (42
                    U.S.C. 4321 et seq.), as demonstrated by a record of
                    decision with respect to the project, a finding that the
                    project has no significant impact, or a determination
                    that the project is categorically excluded, only if the
                    Secretary determines that the project--
                              ``(i) is selected as the locally preferred
                          alternative at the completion of the process
                          required under the National Environmental Policy
                          Act of 1969;
                              ``(ii) is adopted into the metropolitan
                          transportation plan required under section 5303;
                              ``(iii) is in a corridor that is--
                                        ``(I) at or over capacity; or
                                        ``(II) projected to be at or over
                                    capacity within the next 5 years;

    [[Page 126 STAT. 662]]

                              ``(iv) is justified based on a comprehensive
                          review of the project's mobility improvements, the
                          project's environmental benefits, congestion
                          relief associated with the project, economic
                          development effects associated with the project,
                          the capacity needs of the corridor, and the
                          project's cost-effectiveness as measured by cost
                          per rider; and
                              ``(v) is supported by an acceptable degree of
                          local financial commitment (including evidence of
                          stable and dependable financing sources), as
                          required under subsection (f).
                        ``(B) <<NOTE: Evaluation.>> Determination that
                    project is justified.--In making a determination under
                    subparagraph (A)(iv), the Secretary shall evaluate,
                    analyze, and consider--
                              ``(i) the reliability of the forecasting
                          methods used to estimate costs and utilization
                          made by the recipient and the contractors to the
                          recipient;
                              ``(ii) whether the project will increase
                          capacity at least 10 percent in a corridor;
                              ``(iii) whether the project will improve
                          interconnectivity among existing systems; and
                              ``(iv) whether the project will improve
                          environmental outcomes.

        ``(f) Financing Sources.--
                ``(1) Requirements.--In determining whether a project is
            supported by an acceptable degree of local financial commitment
            and shows evidence of stable and dependable financing sources
            for purposes of subsection (d)(2)(A)(v) or (e)(2)(A)(v), the
            Secretary shall require that--
                        ``(A) the proposed project plan provides for the
                    availability of contingency amounts that the Secretary
                    determines to be reasonable to cover unanticipated cost
                    increases or funding shortfalls;
                        ``(B) each proposed local source of capital and
                    operating financing is stable, reliable, and available
                    within the proposed project timetable; and
                        ``(C) local resources are available to recapitalize,
                    maintain, and operate the overall existing and proposed
                    public transportation system, including essential feeder
                    bus and other services necessary to achieve the
                    projected ridership levels without requiring a reduction
                    in existing public transportation services or level of
                    service to operate the project.
                ``(2) Considerations.--In assessing the stability,
            reliability, and availability of proposed sources of local
            financing for purposes of subsection (d)(2)(A)(v) or
            (e)(2)(A)(v), the Secretary shall consider--
                        ``(A) the reliability of the forecasting methods
                    used to estimate costs and revenues made by the
                    recipient and the contractors to the recipient;
                        ``(B) existing grant commitments;
                        ``(C) the degree to which financing sources are
                    dedicated to the proposed purposes;
                        ``(D) any debt obligation that exists, or is
                    proposed by the recipient, for the proposed project or
                    other public transportation purpose;

    [[Page 126 STAT. 663]]

                        ``(E) the extent to which the project has a local
                    financial commitment that exceeds the required non-
                    Government share of the cost of the project; and
                        ``(F) private contributions to the project,
                    including cost-effective project delivery, management or
                    transfer of project risks, expedited project schedule,
                    financial partnering, and other public-private
                    partnership strategies.

        ``(g) Project Advancement and Ratings.--
                ``(1) <<NOTE: Determination.>> Project advancement.--A new
            fixed guideway capital project or core capacity improvement
            project proposed to be carried out using a grant under this
            section may not advance from the project development phase to
            the engineering phase, or from the engineering phase to the
            construction phase, unless the Secretary determines that--
                        ``(A) the project meets the applicable requirements
                    under this section; and
                        ``(B) there is a reasonable likelihood that the
                    project will continue to meet the requirements under
                    this section.
                ``(2) Ratings.--
                        ``(A) <<NOTE: Evaluation.>> Overall rating.--In
                    making a determination under paragraph (1), the
                    Secretary shall evaluate and rate a project as a whole
                    on a 5-point scale (high, medium-high, medium, medium-
                    low, or low) based on--
                              ``(i) in the case of a new fixed guideway
                          capital project, the project justification
                          criteria under subsection (d)(2)(A)(iii), the
                          policies and land use patterns that support public
                          transportation, and the degree of local financial
                          commitment; and
                              ``(ii) in the case of a core capacity
                          improvement project, the capacity needs of the
                          corridor, the project justification criteria under
                          subsection (e)(2)(A)(iv), and the degree of local
                          financial commitment.
                        ``(B) Individual ratings for each criterion.--In
                    rating a project under this paragraph, the Secretary
                    shall--
                              ``(i) provide, in addition to the overall
                          project rating under subparagraph (A), individual
                          ratings for each of the criteria established under
                          subsection (d)(2)(A)(iii) or (e)(2)(A)(iv), as
                          applicable; and
                              ``(ii) give comparable, but not necessarily
                          equal, numerical weight to each of the criteria
                          established under subsections (d)(2)(A)(iii) or
                          (e)(2)(A)(iv), as applicable, in calculating the
                          overall project rating under clause (i).
                        ``(C) Medium rating not required.--The Secretary
                    shall not require that any single project justification
                    criterion meet or exceed a `medium' rating in order to
                    advance the project from one phase to another.
                ``(3) Warrants.--The Secretary shall, to the maximum extent
            practicable, develop and use special warrants for making a
            project justification determination under subsection (d)(2) or
            (e)(2), as applicable, for a project proposed to be funded using
            a grant under this section, if--
                        ``(A) the share of the cost of the project to be
                    provided under this section does not exceed--
                              ``(i) $100,000,000; or
                              ``(ii) 50 percent of the total cost of the
                          project;
                        ``(B) the applicant requests the use of the
                    warrants;

    [[Page 126 STAT. 664]]

                        ``(C) <<NOTE: Certification.>> the applicant
                    certifies that its existing public transportation system
                    is in a state of good repair; and
                        ``(D) the applicant meets any other requirements
                    that the Secretary considers appropriate to carry out
                    this subsection.
                ``(4) Letters of intent and early systems work agreements.--
            In order to expedite a project under this subsection, the
            Secretary shall, to the maximum extent practicable, issue
            letters of intent and enter into early systems work agreements
            upon issuance of a record of decision for projects that receive
            an overall project rating of medium or better.
                ``(5) Policy guidance.--The Secretary shall issue policy
            guidance regarding the review and evaluation process and
            criteria--
                        ``(A) <<NOTE: Deadline.>> not later than 180 days
                    after the date of enactment of the Federal Public
                    Transportation Act of 2012; and
                        ``(B) each time the Secretary makes significant
                    changes to the process and criteria, but not less
                    frequently than once every 2 years.
                ``(6) <<NOTE: Deadline.>> Rules.--Not later than 1 year
            after the date of enactment of the Federal Public Transportation
            Act of 2012, the Secretary shall issue rules establishing an
            evaluation and rating process for--
                        ``(A) new fixed guideway capital projects that is
                    based on the results of project justification, policies
                    and land use patterns that promote public
                    transportation, and local financial commitment, as
                    required under this subsection; and
                        ``(B) core capacity improvement projects that is
                    based on the results of the capacity needs of the
                    corridor, project justification, and local financial
                    commitment.
                ``(7) Applicability.--This subsection shall not apply to a
            project for which the Secretary issued a letter of intent,
            entered into a full funding grant agreement, or entered into a
            project construction agreement before the date of enactment of
            the Federal Public Transportation Act of 2012.

        ``(h) Small Start Projects.--
                ``(1) In general.--A small start project shall be subject to
            the requirements of this subsection.
                ``(2) Project development phase.--
                        ``(A) <<NOTE: Notifications.>> Entrance into project
                    development phase.--A new small starts project shall
                    enter into the project development phase when--
                              ``(i) the applicant--
                                        ``(I) submits a letter to the
                                    Secretary describing the project and
                                    requesting entry into the project
                                    development phase; and
                                        ``(II) initiates activities required
                                    to be carried out under the National
                                    Environmental Policy Act of 1969 (42
                                    U.S.C. 4321 et seq.) with respect to the
                                    project; and
                              ``(ii) the Secretary--
                                        ``(I) <<NOTE: Deadline.>> responds
                                    in writing to the applicant within 45
                                    days whether the information provided is
                                    sufficient to enter into the project
                                    development phase, including, when
                                    necessary, a detailed description of any
                                    information deemed insufficient; and

    [[Page 126 STAT. 665]]

                                        ``(II) provides concurrent notice to
                                    the Committee on Banking, Housing, and
                                    Urban Affairs of the Senate and the
                                    Committee on Transportation and
                                    Infrastructure of the House of
                                    Representatives of whether the small
                                    starts project is entering the project
                                    development phase.
                        ``(B) Activities during project development phase.--
                    Concurrent with the analysis required to be made under
                    the National Environmental Policy Act of 1969 (42 U.S.C.
                    4321 et seq.), each applicant shall develop sufficient
                    information to enable the Secretary to make findings of
                    project justification, policies and land use patterns
                    that promote public transportation, and local financial
                    commitment under this subsection.
                ``(3) <<NOTE: Determination.>> Selection criteria.--The
            Secretary may provide Federal assistance for a small start
            project under this subsection only if the Secretary determines
            that the project--
                        ``(A) has been adopted as the locally preferred
                    alternative as part of the metropolitan transportation
                    plan required under section 5303;
                        ``(B) is based on the results of an analysis of the
                    benefits of the project as set forth in paragraph (4);
                    and
                        ``(C) is supported by an acceptable degree of local
                    financial commitment.
                ``(4) Evaluation of benefits and federal investment.--In
            making a determination for a small start project under paragraph
            (3)(B), the Secretary shall analyze, evaluate, and consider the
            following evaluation criteria for the project (as compared to a
            no-action alternative): mobility improvements, environmental
            benefits, congestion relief, economic development effects
            associated with the project, policies and land use patterns that
            support public transportation and cost-effectiveness as measured
            by cost per rider.
                ``(5) Evaluation of local financial commitment.--For
            purposes of paragraph (3)(C), the Secretary shall require that
            each proposed local source of capital and operating financing is
            stable, reliable, and available within the proposed project
            timetable.
                ``(6) <<NOTE: Evaluation.>> Ratings.--In carrying out
            paragraphs (4) and (5) for a small start project, the Secretary
            shall evaluate and rate the project on a 5-point scale (high,
            medium-high, medium, medium-low, or low) based on an evaluation
            of the benefits of the project as compared to the Federal
            assistance to be provided and the degree of local financial
            commitment, as required under this subsection. In rating the
            projects, the Secretary shall provide, in addition to the
            overall project rating, individual ratings for each of the
            criteria established by this subsection and shall give
            comparable, but not necessarily equal, numerical weight to the
            benefits that the project will bring to the community in
            calculating the overall project rating.
                ``(7) Grants and expedited grant agreements.--
                        ``(A) In general.--The Secretary, to the maximum
                    extent practicable, shall provide Federal assistance
                    under this subsection in a single grant. If the
                    Secretary cannot provide such a single grant, the
                    Secretary may execute

    [[Page 126 STAT. 666]]

                    an expedited grant agreement in order to include a
                    commitment on the part of the Secretary to provide
                    funding for the project in future fiscal years.
                        ``(B) Terms of expedited grant agreements.--In
                    executing an expedited grant agreement under this
                    subsection, the Secretary may include in the agreement
                    terms similar to those established under subsection
                    (k)(2).
                        ``(C) Notice of proposed grants and expedited grant
                    agreements.-- <<NOTE: Time period.>> At least 10 days
                    before making a grant award or entering into a grant
                    agreement for a project under this subsection, the
                    Secretary shall notify, in writing, the Committee on
                    Transportation and Infrastructure and the Committee on
                    Appropriations of the House of Representatives and the
                    Committee on Banking, Housing, and Urban Affairs and the
                    Committee on Appropriations of the Senate of the
                    proposed grant or expedited grant agreement, as well as
                    the evaluations and ratings for the project.

        ``(i) Programs of Interrelated Projects.--
                ``(1) Project development phase.--A federally funded project
            in a program of interrelated projects shall advance through
            project development as provided in subsection (d) or (e), as
            applicable.
                ``(2) <<NOTE: Determination.>> Engineering phase.--A
            federally funded project in a program of interrelated projects
            may advance into the engineering phase upon completion of
            activities required under the National Environmental Policy Act
            of 1969 (42 U.S.C. 4321 et seq.), as demonstrated by a record of
            decision with respect to the project, a finding that the project
            has no significant impact, or a determination that the project
            is categorically excluded, only if the Secretary determines
            that--
                        ``(A) the project is selected as the locally
                    preferred alternative at the completion of the process
                    required under the National Environmental Policy Act of
                    1969;
                        ``(B) the project is adopted into the metropolitan
                    transportation plan required under section 5303;
                        ``(C) the program of interrelated projects involves
                    projects that have a logical connectivity to one
                    another;
                        ``(D) the program of interrelated projects, when
                    evaluated as a whole, meets the requirements of
                    subsection (d)(2) or (e)(2), as applicable;
                        ``(E) the program of interrelated projects is
                    supported by a program implementation plan demonstrating
                    that construction will begin on each of the projects in
                    the program of interrelated projects within a reasonable
                    time frame; and
                        ``(F) the program of interrelated projects is
                    supported by an acceptable degree of local financial
                    commitment, as described in subsection (f).
                ``(3) Project advancement and ratings.--
                        ``(A) <<NOTE: Determination.>> Project
                    advancement.--A project receiving a grant under this
                    section that is part of a program of interrelated
                    projects may not advance from the project development
                    phase to the engineering phase, or from the engineering
                    phase to the construction phase, unless the Secretary
                    determines that the program of interrelated projects
                    meets the applicable requirements of this section

    [[Page 126 STAT. 667]]

                    and there is a reasonable likelihood that the program
                    will continue to meet such requirements.
                        ``(B) Ratings.--
                              ``(i) <<NOTE: Evaluation.>> Overall rating.--
                          In making a determination under subparagraph (A),
                          the Secretary shall evaluate and rate a program of
                          interrelated projects on a 5-point scale (high,
                          medium-high, medium, medium-low, or low) based on
                          the criteria described in paragraph (2).
                              ``(ii) Individual rating for each criterion.--
                          In rating a program of interrelated projects, the
                          Secretary shall provide, in addition to the
                          overall program rating, individual ratings for
                          each of the criteria described in paragraph (2)
                          and shall give comparable, but not necessarily
                          equal, numerical weight to each such criterion in
                          calculating the overall program rating.
                              ``(iii) Medium rating not required.--The
                          Secretary shall not require that any single
                          criterion described in paragraph (2) meet or
                          exceed a `medium' rating in order to advance the
                          program of interrelated projects from one phase to
                          another.
                ``(4) Annual review.--
                        ``(A) Review required.--The Secretary shall annually
                    review the program implementation plan required under
                    paragraph (2)(E) to determine whether the program of
                    interrelated projects is adhering to its schedule.
                        ``(B) Extension of time.--If a program of
                    interrelated projects is not adhering to its schedule,
                    the Secretary may, upon the request of the applicant,
                    grant an extension of time if the applicant submits a
                    reasonable plan that includes--
                              ``(i) evidence of continued adequate funding;
                          and
                              ``(ii) an estimated time frame for completing
                          the program of interrelated projects.
                        ``(C) Satisfactory progress required.--If the
                    Secretary determines that a program of interrelated
                    projects is not making satisfactory progress, no Federal
                    funds shall be provided for a project within the program
                    of interrelated projects.
                ``(5) Failure to carry out program of interrelated
            projects.--
                        ``(A) Repayment required.--If an applicant does not
                    carry out the program of interrelated projects within a
                    reasonable time, for reasons within the control of the
                    applicant, the applicant shall repay all Federal funds
                    provided for the program, and any reasonable interest
                    and penalty charges that the Secretary may establish.
                        ``(B) Crediting of funds received.--Any funds
                    received by the Government under this paragraph, other
                    than interest and penalty charges, shall be credited to
                    the appropriation account from which the funds were
                    originally derived.
                ``(6) Non-federal funds.--Any non-Federal funds committed to
            a project in a program of interrelated projects may be used to
            meet a non-Government share requirement for any other project in
            the program of interrelated projects, if the

    [[Page 126 STAT. 668]]

            Government share of the cost of each project within the program
            of interrelated projects does not exceed 80 percent.
                ``(7) Priority.--In making grants under this section, the
            Secretary may give priority to programs of interrelated projects
            for which the non-Government share of the cost of the projects
            included in the programs of interrelated projects exceeds the
            non-Government share required under subsection (l).
                ``(8) Non-government projects.--Including a project not
            financed by the Government in a program of interrelated projects
            does not impose Government requirements that would not otherwise
            apply to the project.

        ``(j) Previously Issued Letter of Intent or Full Funding Grant
    Agreement.--Subsections (d) and (e) shall not apply to projects for
    which the Secretary has issued a letter of intent, approved entry into
    final design, entered into a full funding grant agreement, or entered
    into a project construction grant agreement before the date of enactment
    of the Federal Public Transportation Act of 2012.
        ``(k) Letters of Intent, Full Funding Grant Agreements, and Early
    Systems Work Agreements.--
                ``(1) Letters of intent.--
                        ``(A) Amounts intended to be obligated.--The
                    Secretary may issue a letter of intent to an applicant
                    announcing an intention to obligate, for a new fixed
                    guideway capital project or core capacity improvement
                    project, an amount from future available budget
                    authority specified in law that is not more than the
                    amount stipulated as the financial participation of the
                    Secretary in the project. When a letter is issued for a
                    capital project under this section, the amount shall be
                    sufficient to complete at least an operable segment.
                        ``(B) Treatment.--The issuance of a letter under
                    subparagraph (A) is deemed not to be an obligation under
                    sections 1108(c), 1501, and 1502(a) of title 31 or an
                    administrative commitment.
                ``(2) Full funding grant agreements.--
                        ``(A) In general.--A new fixed guideway capital
                    project or core capacity improvement project shall be
                    carried out through a full funding grant agreement.
                        ``(B) Criteria.--The Secretary shall enter into a
                    full funding grant agreement, based on the evaluations
                    and ratings required under subsection (d), (e), or (i),
                    as applicable, with each grantee receiving assistance
                    for a new fixed guideway capital project or core
                    capacity improvement project that has been rated as
                    high, medium-high, or medium, in accordance with
                    subsection (g)(2)(A) or (i)(3)(B), as applicable.
                        ``(C) Terms.--A full funding grant agreement shall--
                              ``(i) establish the terms of participation by
                          the Government in a new fixed guideway capital
                          project or core capacity improvement project;
                              ``(ii) establish the maximum amount of Federal
                          financial assistance for the project;
                              ``(iii) include the period of time for
                          completing the project, even if that period
                          extends beyond the period of an authorization; and

    [[Page 126 STAT. 669]]

                              ``(iv) make timely and efficient management of
                          the project easier according to the law of the
                          United States.
                        ``(D) Special financial rules.--
                              ``(i) In general.--A full funding grant
                          agreement under this paragraph obligates an amount
                          of available budget authority specified in law and
                          may include a commitment, contingent on amounts to
                          be specified in law in advance for commitments
                          under this paragraph, to obligate an additional
                          amount from future available budget authority
                          specified in law.
                              ``(ii) Statement of contingent commitment.--
                          The agreement shall state that the contingent
                          commitment is not an obligation of the Government.
                              ``(iii) Interest and other financing costs.--
                          Interest and other financing costs of efficiently
                          carrying out a part of the project within a
                          reasonable time are a cost of carrying out the
                          project under a full funding grant agreement,
                          except that eligible costs may not be more than
                          the cost of the most favorable financing terms
                          reasonably available for the project at the time
                          of borrowing. <<NOTE: Certification.>> The
                          applicant shall certify, in a way satisfactory to
                          the Secretary, that the applicant has shown
                          reasonable diligence in seeking the most favorable
                          financing terms.
                              ``(iv) Completion of operable segment.--The
                          amount stipulated in an agreement under this
                          paragraph for a new fixed guideway capital project
                          shall be sufficient to complete at least an
                          operable segment.
                        ``(E) Before and after study.--
                              ``(i) In general.--A full funding grant
                          agreement under this paragraph shall require the
                          applicant to conduct a study that--
                                        ``(I) describes and analyzes the
                                    impacts of the new fixed guideway
                                    capital project or core capacity
                                    improvement project on public
                                    transportation services and public
                                    transportation ridership;
                                        ``(II) evaluates the consistency of
                                    predicted and actual project
                                    characteristics and performance; and
                                        ``(III) identifies reasons for
                                    differences between predicted and actual
                                    outcomes.
                              ``(ii) Information collection and analysis
                          plan.--
                                        ``(I) Submission of plan.--
                                    Applicants seeking a full funding grant
                                    agreement under this paragraph shall
                                    submit a complete plan for the
                                    collection and analysis of information
                                    to identify the impacts of the new fixed
                                    guideway capital project or core
                                    capacity improvement project and the
                                    accuracy of the forecasts prepared
                                    during the development of the project.
                                    Preparation of this plan shall be
                                    included in the full funding grant
                                    agreement as an eligible activity.
                                        ``(II) Contents of plan.--The plan
                                    submitted under subclause (I) shall
                                    provide for--
                                                ``(aa) collection of data on
                                            the current public
                                            transportation system regarding
                                            public

    [[Page 126 STAT. 670]]

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

    [[Page 126 STAT. 671]]

                          of time the Secretary considers appropriate. The
                          period may extend beyond the period of current
                          authorization.
                              ``(iv) Interest and other financing costs.--
                          Interest and other financing costs of efficiently
                          carrying out the early systems work agreement
                          within a reasonable time are a cost of carrying
                          out the agreement, except that eligible costs may
                          not be more than the cost of the most favorable
                          financing terms reasonably available for the
                          project at the time of
                          borrowing. <<NOTE: Certification.>> The applicant
                          shall certify, in a way satisfactory to the
                          Secretary, that the applicant has shown reasonable
                          diligence in seeking the most favorable financing
                          terms.
                              ``(v) Failure to carry out project.--If an
                          applicant does not carry out the project for
                          reasons within the control of the applicant, the
                          applicant shall repay all Federal grant funds
                          awarded for the project from all Federal funding
                          sources, for all project activities, facilities,
                          and equipment, plus reasonable interest and
                          penalty charges allowable by law or established by
                          the Secretary in the early systems work agreement.
                              ``(vi) Crediting of funds received.--Any funds
                          received by the Government under this paragraph,
                          other than interest and penalty charges, shall be
                          credited to the appropriation account from which
                          the funds were originally derived.
                ``(4) Limitation on amounts.--
                        ``(A) In general.--The Secretary may enter into full
                    funding grant agreements under this subsection for new
                    fixed guideway capital projects and core capacity
                    improvement projects that contain contingent commitments
                    to incur obligations in such amounts as the Secretary
                    determines are appropriate.
                        ``(B) Appropriation required.--An obligation may be
                    made under this subsection only when amounts are
                    appropriated for the obligation.
                ``(5) <<NOTE: Deadline.>> Notification to congress.--At
            least 30 days before issuing a letter of intent, entering into a
            full funding grant agreement, or entering into an early systems
            work agreement under this section, the Secretary shall notify,
            in writing, the Committee on Banking, Housing, and Urban Affairs
            and the Committee on Appropriations of the Senate and the
            Committee on Transportation and Infrastructure and the Committee
            on Appropriations of the House of Representatives of the
            proposed letter or agreement. <<NOTE: Records.>> The Secretary
            shall include with the notification a copy of the proposed
            letter or agreement as well as the evaluations and ratings for
            the project.

        ``(l) Government Share of Net Capital Project Cost.--
                ``(1) In general.--Based on engineering studies, studies of
            economic feasibility, and information on the expected use of
            equipment or facilities, the Secretary shall estimate the net
            capital project cost. A grant for a fixed guideway project or
            small start project shall not exceed 80 percent of the net
            capital project cost. A grant for a core capacity project shall
            not exceed 80 percent of the net capital project cost of the
            incremental cost of increasing the capacity in the corridor.

    [[Page 126 STAT. 672]]

                ``(2) Adjustment for completion under budget.--The Secretary
            may adjust the final net capital project cost of a new fixed
            guideway capital project or core capacity improvement project
            evaluated under subsection (d), (e), or (i) to include the cost
            of eligible activities not included in the originally defined
            project if the Secretary determines that the originally defined
            project has been completed at a cost that is significantly below
            the original estimate.
                ``(3) Maximum government share.--The Secretary may provide a
            higher grant percentage than requested by the grant recipient
            if--
                        ``(A) the Secretary determines that the net capital
                    project cost of the project is not more than 10 percent
                    higher than the net capital project cost estimated at
                    the time the project was approved for advancement into
                    the engineering phase; and
                        ``(B) the ridership estimated for the project is not
                    less than 90 percent of the ridership estimated for the
                    project at the time the project was approved for
                    advancement into the engineering phase.
                ``(4) Remainder of net capital project cost.--The remainder
            of the net capital project cost shall be provided from an
            undistributed cash surplus, a replacement or depreciation cash
            fund or reserve, or new capital.
                ``(5) Limitation on statutory construction.--Nothing in this
            section shall be construed as authorizing the Secretary to
            require a non-Federal financial commitment for a project that is
            more than 20 percent of the net capital project cost.
                ``(6) Special rule for rolling stock costs.--In addition to
            amounts allowed pursuant to paragraph (1), a planned extension
            to a fixed guideway system may include the cost of rolling stock
            previously purchased if the applicant satisfies the Secretary
            that only amounts other than amounts provided by the Government
            were used and that the purchase was made for use on the
            extension. A refund or reduction of the remainder may be made
            only if a refund of a proportional amount of the grant of the
            Government is made at the same time.
                ``(7) Limitation on applicability.--This subsection shall
            not apply to projects for which the Secretary entered into a
            full funding grant agreement before the date of enactment of the
            Federal Public Transportation Act of 2012.
                ``(8) Special rule for fixed guideway bus rapid transit
            projects.--For up to three fixed-guideway bus rapid transit
            projects each fiscal year the Secretary shall--
                        ``(A) establish a Government share of at least 80
                    percent; and
                        ``(B) not lower the project's rating for degree of
                    local financial commitment for purposes of subsections
                    (d)(2)(A)(v) or (h)(3)(C) as a result of the Government
                    share specified in this paragraph.

        ``(m) Undertaking Projects in Advance.--
                ``(1) In general.--The Secretary may pay the Government
            share of the net capital project cost to a State or local
            governmental authority that carries out any part of a project
            described in this section without the aid of amounts of the
            Government and according to all applicable procedures and
            requirements if--

    [[Page 126 STAT. 673]]

                        ``(A) the State or local governmental authority
                    applies for the payment;
                        ``(B) the Secretary approves the payment; and
                        ``(C) before the State or local governmental
                    authority carries out the part of the project, the
                    Secretary approves the plans and specifications for the
                    part in the same way as other projects under this
                    section.
                ``(2) Financing costs.--
                        ``(A) In general.--The cost of carrying out part of
                    a project includes the amount of interest earned and
                    payable on bonds issued by the State or local
                    governmental authority to the extent proceeds of the
                    bonds are expended in carrying out the part.
                        ``(B) Limitation on amount of interest.--The amount
                    of interest under this paragraph may not be more than
                    the most favorable interest terms reasonably available
                    for the project at the time of borrowing.
                        ``(C) Certification.--The applicant shall certify,
                    in a manner satisfactory to the Secretary, that the
                    applicant has shown reasonable diligence in seeking the
                    most favorable financing terms.

        ``(n) Availability of Amounts.--
                ``(1) In general.--An amount made available or appropriated
            for a new fixed guideway capital project or core capacity
            improvement project shall remain available to that project for 5
            fiscal years, including the fiscal year in which the amount is
            made available or appropriated. Any amounts that are unobligated
            to the project at the end of the 5-fiscal-year period may be
            used by the Secretary for any purpose under this section.
                ``(2) Use of deobligated amounts.--An amount available under
            this section that is deobligated may be used for any purpose
            under this section.

        ``(o) Reports on New Fixed Guideway and Core Capacity Improvement
    Projects.--
                ``(1) Annual report on funding recommendations.--Not later
            than the first Monday in February of each year, the Secretary
            shall submit to the Committee on Banking, Housing, and Urban
            Affairs and the Committee on Appropriations of the Senate and
            the Committee on Transportation and Infrastructure and the
            Committee on Appropriations of the House of Representatives a
            report that includes--
                        ``(A) a proposal of allocations of amounts to be
                    available to finance grants for projects under this
                    section among applicants for these amounts;
                        ``(B) evaluations and ratings, as required under
                    subsections (d), (e), and (i), for each such project
                    that is in project development, engineering, or has
                    received a full funding grant agreement; and
                        ``(C) recommendations of such projects for funding
                    based on the evaluations and ratings and on existing
                    commitments and anticipated funding levels for the next
                    3 fiscal years based on information currently available
                    to the Secretary.
                ``(2) Reports on before and after studies.--Not later than
            the first Monday in August of each year, the Secretary shall
            submit to the committees described in paragraph (1) a

    [[Page 126 STAT. 674]]

            report containing a summary of the results of any studies
            conducted under subsection (k)(2)(E).
                ``(3) Biennial gao review.--The Comptroller General of the
            United States shall--
                        ``(A) conduct a biennial review of--
                              ``(i) the processes and procedures for
                          evaluating, rating, and recommending new fixed
                          guideway capital projects and core capacity
                          improvement projects; and
                              ``(ii) the Secretary's implementation of such
                          processes and procedures; and
                        ``(B) report to Congress on the results of such
                    review by May 31 of each year.''.

        (b) <<NOTE: 49 USC 5309 note.>> Pilot Program for Expedited Project
    Delivery.--
                (1) Definitions.--In this subsection the following
            definitions shall apply:
                        (A) Eligible project.--The term ``eligible project''
                    means a new fixed guideway capital project or a core
                    capacity improvement project, as those terms are defined
                    in section 5309 of title 49, United States Code, as
                    amended by this section, that has not entered into a
                    full funding grant agreement with the Federal Transit
                    Administration before the date of enactment of the
                    Federal Public Transportation Act of 2012.
                        (B) Program.--The term ``program'' means the pilot
                    program for expedited project delivery established under
                    this subsection.
                        (C) Recipient.--The term ``recipient'' means a
                    recipient of funding under chapter 53 of title 49,
                    United States Code.
                        (D) Secretary.--The term ``Secretary'' means the
                    Secretary of Transportation.
                (2) Establishment.--The Secretary shall establish and
            implement a pilot program to demonstrate whether innovative
            project development and delivery methods or innovative financing
            arrangements can expedite project delivery for certain
            meritorious new fixed guideway capital projects and core
            capacity improvement projects.
                (3) Limitation on number of projects.--The Secretary shall
            select 3 eligible projects to participate in the program, of
            which--
                        (A) at least 1 shall be an eligible project
                    requesting more than $100,000,000 in Federal financial
                    assistance under section 5309 of title 49, United States
                    Code; and
                        (B) at least 1 shall be an eligible project
                    requesting less than $100,000,000 in Federal financial
                    assistance under section 5309 of title 49, United States
                    Code.
                (4) Government share.--The Government share of the total
            cost of an eligible project that participates in the program may
            not exceed 50 percent.
                (5) Eligibility.--A recipient that desires to participate in
            the program shall submit to the Secretary an application that
            contains, at a minimum--
                        (A) identification of an eligible project;
                        (B) a schedule and finance plan for the construction
                    and operation of the eligible project;

    [[Page 126 STAT. 675]]

                        (C) an analysis of the efficiencies of the proposed
                    project development and delivery methods or innovative
                    financing arrangement for the eligible project; and
                        (D) a certification that the recipient's existing
                    public transportation system is in a state of good
                    repair.
                (6) Selection criteria.--The Secretary may award a full
            funding grant agreement under this subsection if the Secretary
            determines that--
                        (A) the recipient has completed planning and the
                    activities required under the National Environmental
                    Policy Act of 1969 (42 U.S.C. 4321 et seq.); and
                        (B) the recipient has the necessary legal,
                    financial, and technical capacity to carry out the
                    eligible project.
                (7) Before and after study and report.--
                        (A) Study required.--A full funding grant agreement
                    under this paragraph shall require a recipient to
                    conduct a study that--
                              (i) describes and analyzes the impacts of the
                          eligible project on public transportation services
                          and public transportation ridership;
                              (ii) describes and analyzes the consistency of
                          predicted and actual benefits and costs of the
                          innovative project development and delivery
                          methods or innovative financing for the eligible
                          project; and
                              (iii) identifies reasons for any differences
                          between predicted and actual outcomes for the
                          eligible project.
                        (B) Submission of report.--Not later than 9 months
                    after an eligible project selected to participate in the
                    program begins revenue operations, the recipient shall
                    submit to the Secretary a report on the results of the
                    study under subparagraph (A).
    SEC. 20009. MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES.

        Section 5310 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5310. Formula grants for the enhanced mobility of seniors
                      and individuals with disabilities

        ``(a) Definitions.--In this section, the following definitions shall
    apply:
                ``(1) Recipient.--The term `recipient' means a designated
            recipient or a State that receives a grant under this section
            directly.
                ``(2) Subrecipient.--The term `subrecipient' means a State
            or local governmental authority, a private nonprofit
            organization, or an operator of public transportation that
            receives a grant under this section indirectly through a
            recipient.

        ``(b) General Authority.--
                ``(1) Grants.--The Secretary may make grants under this
            section to recipients for--
                        ``(A) public transportation projects planned,
                    designed, and carried out to meet the special needs of
                    seniors and individuals with disabilities when public
                    transportation is insufficient, inappropriate, or
                    unavailable;

    [[Page 126 STAT. 676]]

                        ``(B) public transportation projects that exceed the
                    requirements of the Americans with Disabilities Act of
                    1990 (42 U.S.C. 12101 et seq.);
                        ``(C) public transportation projects that improve
                    access to fixed route service and decrease reliance by
                    individuals with disabilities on complementary
                    paratransit; and
                        ``(D) alternatives to public transportation that
                    assist seniors and individuals with disabilities with
                    transportation.
                ``(2) Limitations for capital projects.--
                        ``(A) Amount available.--The amount available for
                    capital projects under paragraph (1)(A) shall be not
                    less than 55 percent of the funds apportioned to the
                    recipient under this section.
                        ``(B) Allocation to subrecipients.--A recipient of a
                    grant under paragraph (1)(A) may allocate the amounts
                    provided under the grant to--
                              ``(i) a private nonprofit organization; or
                              ``(ii) a State or local governmental authority
                          that--
                                        ``(I) is approved by a State to
                                    coordinate services for seniors and
                                    individuals with disabilities; or
                                        ``(II) certifies that there are no
                                    private nonprofit organizations readily
                                    available in the area to provide the
                                    services described in paragraph (1)(A).
                ``(3) Administrative expenses.--A recipient may use not more
            than 10 percent of the amounts apportioned to the recipient
            under this section to administer, plan, and provide technical
            assistance for a project funded under this section.
                ``(4) Eligible capital expenses.--The acquisition of public
            transportation services is an eligible capital expense under
            this section.
                ``(5) Coordination.--
                        ``(A) Department of transportation.--To the maximum
                    extent feasible, the Secretary shall coordinate
                    activities under this section with related activities
                    under other Federal departments and agencies.
                        ``(B) Other federal agencies and nonprofit
                    organizations.--A State or local governmental authority
                    or nonprofit organization that receives assistance from
                    Government sources (other than the Department of
                    Transportation) for nonemergency transportation services
                    shall--
                              ``(i) participate and coordinate with
                          recipients of assistance under this chapter in the
                          design and delivery of transportation services;
                          and
                              ``(ii) participate in the planning for the
                          transportation services described in clause (i).
                ``(6) Program of projects.--
                        ``(A) In general.--Amounts made available to carry
                    out this section may be used for transportation projects
                    to assist in providing transportation services for
                    seniors and individuals with disabilities, if such
                    transportation projects are included in a program of
                    projects.
                        ``(B) Submission.--A recipient shall annually submit
                    a program of projects to the Secretary.

    [[Page 126 STAT. 677]]

                        ``(C) Assurance.--The program of projects submitted
                    under subparagraph (B) shall contain an assurance that
                    the program provides for the maximum feasible
                    coordination of transportation services assisted under
                    this section with transportation services assisted by
                    other Government sources.
                ``(7) Meal delivery for homebound individuals.--A public
            transportation service provider that receives assistance under
            this section or section 5311(c) may coordinate and assist in
            regularly providing meal delivery service for homebound
            individuals, if the delivery service does not conflict with
            providing public transportation service or reduce service to
            public transportation passengers.

        ``(c) Apportionment and Transfers.--
                ``(1) Formula.--The Secretary shall apportion amounts made
            available to carry out this section as follows:
                        ``(A) Large urbanized areas.--Sixty percent of the
                    funds shall be apportioned among designated recipients
                    for urbanized areas with a population of 200,000 or more
                    individuals, as determined by the Bureau of the Census,
                    in the ratio that--
                              ``(i) the number of seniors and individuals
                          with disabilities in each such urbanized area;
                          bears to
                              ``(ii) the number of seniors and individuals
                          with disabilities in all such urbanized areas.
                        ``(B) Small urbanized areas.--Twenty percent of the
                    funds shall be apportioned among the States in the ratio
                    that--
                              ``(i) the number of seniors and individuals
                          with disabilities in urbanized areas with a
                          population of fewer than 200,000 individuals, as
                          determined by the Bureau of the Census, in each
                          State; bears to
                              ``(ii) the number of seniors and individuals
                          with disabilities in urbanized areas with a
                          population of fewer than 200,000 individuals, as
                          determined by the Bureau of the Census, in all
                          States.
                        ``(C) Rural areas.--Twenty percent of the funds
                    shall be apportioned among the States in the ratio
                    that--
                              ``(i) the number of seniors and individuals
                          with disabilities in rural areas in each State;
                          bears to
                              ``(ii) the number of seniors and individuals
                          with disabilities in rural areas in all States.
                ``(2) Areas served by projects.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B)--
                              ``(i) funds apportioned under paragraph (1)(A)
                          shall be used for projects serving urbanized areas
                          with a population of 200,000 or more individuals,
                          as determined by the Bureau of the Census;
                              ``(ii) funds apportioned under paragraph
                          (1)(B) shall be used for projects serving
                          urbanized areas with a population of fewer than
                          200,000 individuals, as determined by the Bureau
                          of the Census; and
                              ``(iii) funds apportioned under paragraph
                          (1)(C) shall be used for projects serving rural
                          areas.

    [[Page 126 STAT. 678]]

                        ``(B) Exceptions.--A State may use funds apportioned
                    to the State under subparagraph (B) or (C) of paragraph
                    (1)--
                              ``(i) for a project serving an area other than
                          an area specified in subparagraph (A)(ii) or
                          (A)(iii), as the case may be, if the Governor of
                          the State certifies that all of the objectives of
                          this section are being met in the area specified
                          in subparagraph (A)(ii) or (A)(iii); or
                              ``(ii) for a project anywhere in the State, if
                          the State has established a statewide program for
                          meeting the objectives of this section.
                        ``(C) Limited to eligible projects.--Any funds
                    transferred pursuant to subparagraph (B) shall be made
                    available only for eligible projects selected under this
                    section.
                        ``(D) Consultation.--A recipient may transfer an
                    amount under subparagraph (B) only after consulting with
                    responsible local officials, publicly owned operators of
                    public transportation, and nonprofit providers in the
                    area for which the amount was originally apportioned.

        ``(d) Government Share of Costs.--
                ``(1) Capital projects.--A grant for a capital project under
            this section shall be in an amount equal to 80 percent of the
            net capital costs of the project, as determined by the
            Secretary.
                ``(2) Operating assistance.--A grant made under this section
            for operating assistance may not exceed an amount equal to 50
            percent of the net operating costs of the project, as determined
            by the Secretary.
                ``(3) Remainder of net costs.--The remainder of the net
            costs of a project carried out under this section--
                        ``(A) may be provided from an undistributed cash
                    surplus, a replacement or depreciation cash fund or
                    reserve, a service agreement with a State or local
                    social service agency or a private social service
                    organization, or new capital; and
                        ``(B) may be derived from amounts appropriated or
                    otherwise made available--
                              ``(i) to a department or agency of the
                          Government (other than the Department of
                          Transportation) that are eligible to be expended
                          for transportation; or
                              ``(ii) to carry out the Federal lands highways
                          program under section 204 of title 23.
                ``(4) Use of certain funds.--For purposes of paragraph
            (3)(B)(i), the prohibition under section 403(a)(5)(C)(vii) of
            the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)) on the use
            of grant funds for matching requirements shall not apply to
            Federal or State funds to be used for transportation purposes.

        ``(e) Grant Requirements.--
                ``(1) In general.--A grant under this section shall be
            subject to the same requirements as a grant under section 5307,
            to the extent the Secretary determines appropriate.
                ``(2) Certification requirements.--
                        ``(A) Project selection and plan development.--
                    Before receiving a grant under this section, each
                    recipient shall certify that--

    [[Page 126 STAT. 679]]

                              ``(i) the projects selected by the recipient
                          are included in a locally developed, coordinated
                          public transit-human services transportation plan;
                              ``(ii) the plan described in clause (i) was
                          developed and approved through a process that
                          included participation by seniors, individuals
                          with disabilities, representatives of public,
                          private, and nonprofit transportation and human
                          services providers, and other members of the
                          public; and
                              ``(iii) to the maximum extent feasible, the
                          services funded under this section will be
                          coordinated with transportation services assisted
                          by other Federal departments and agencies,
                          including any transportation activities carried
                          out by a recipient of a grant from the Department
                          of Health and Human Services.
                        ``(B) Allocations to subrecipients.--If a recipient
                    allocates funds received under this section to
                    subrecipients, the recipient shall certify that the
                    funds are allocated on a fair and equitable basis.

        ``(f) Competitive Process for Grants to Subrecipients.--
                ``(1) Areawide solicitations.--A recipient of funds
            apportioned under subsection (c)(1)(A) may conduct, in
            cooperation with the appropriate metropolitan planning
            organization, an areawide solicitation for applications for
            grants under this section.
                ``(2) Statewide solicitations.--A recipient of funds
            apportioned under subparagraph (B) or (C) of subsection (c)(1)
            may conduct a statewide solicitation for applications for grants
            under this section.
                ``(3) Application.--If the recipient elects to engage in a
            competitive process, a recipient or subrecipient seeking to
            receive a grant from funds apportioned under subsection (c)
            shall submit to the recipient making the election an application
            in such form and in accordance with such requirements as the
            recipient making the election shall establish.

        ``(g) Transfers of Facilities and Equipment.--A recipient may
    transfer a facility or equipment acquired using a grant under this
    section to any other recipient eligible to receive assistance under this
    chapter, if--
                ``(1) the recipient in possession of the facility or
            equipment consents to the transfer; and
                ``(2) the facility or equipment will continue to be used as
            required under this section.

        ``(h) Performance Measures.--
                ``(1) <<NOTE: Deadline. Reports.>> In general.--Not later
            than 1 year after the date of enactment of the Federal Public
            Transportation Act of 2012, the Secretary shall submit a report
            to the Committee on Banking, Housing, and Urban Affairs of the
            Senate and the Committee on Transportation and Infrastructure of
            the House of Representatives making recommendations on the
            establishment of performance measures for grants under this
            section. Such report shall be developed in consultation with
            national nonprofit organizations that provide technical
            assistance and advocacy on issues related to transportation
            services for seniors and individuals with disabilities.

    [[Page 126 STAT. 680]]

                ``(2) Measures.--The performance measures to be considered
            in the report under paragraph (1) shall require the collection
            of quantitative and qualitative information, as available,
            concerning--
                        ``(A) modifications to the geographic coverage of
                    transportation service, the quality of transportation
                    service, or service times that increase the availability
                    of transportation services for seniors and individuals
                    with disabilities;
                        ``(B) ridership;
                        ``(C) accessibility improvements; and
                        ``(D) other measures, as the Secretary determines is
                    appropriate.''.
    SEC. 20010. FORMULA GRANTS FOR RURAL AREAS.

        Section 5311 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5311. Formula grants for rural areas

        ``(a) Definitions.--As used in this section, the following
    definitions shall apply:
                ``(1) Recipient.--The term `recipient' means a State or
            Indian tribe that receives a Federal transit program grant
            directly from the Government.
                ``(2) Subrecipient.--The term `subrecipient' means a State
            or local governmental authority, a nonprofit organization, or an
            operator of public transportation or intercity bus service that
            receives Federal transit program grant funds indirectly through
            a recipient.

        ``(b) General Authority.--
                ``(1) Grants authorized.--Except as provided by paragraph
            (2), the Secretary may award grants under this section to
            recipients located in rural areas for--
                        ``(A) planning, provided that a grant under this
                    section for planning activities shall be in addition to
                    funding awarded to a State under section 5305 for
                    planning activities that are directed specifically at
                    the needs of rural areas in the State;
                        ``(B) public transportation capital projects;
                        ``(C) operating costs of equipment and facilities
                    for use in public transportation;
                        ``(D) job access and reverse commute projects; and
                        ``(E) the acquisition of public transportation
                    services, including service agreements with private
                    providers of public transportation service.
                ``(2) State program.--
                        ``(A) In general.--A project eligible for a grant
                    under this section shall be included in a State program
                    for public transportation service projects, including
                    agreements with private providers of public
                    transportation service.
                        ``(B) Submission to secretary.--Each State shall
                    submit to the Secretary annually the program described
                    in subparagraph (A).
                        ``(C) Approval.--The Secretary may not approve the
                    program unless the Secretary determines that--
                              ``(i) the program provides a fair distribution
                          of amounts in the State, including Indian
                          reservations; and

    [[Page 126 STAT. 681]]

                              ``(ii) the program provides the maximum
                          feasible coordination of public transportation
                          service assisted under this section with
                          transportation service assisted by other Federal
                          sources.
                ``(3) Rural transportation assistance program.--
                        ``(A) In general.--The Secretary shall carry out a
                    rural transportation assistance program in rural areas.
                        ``(B) Grants and contracts.--In carrying out this
                    paragraph, the Secretary may use not more than 2 percent
                    of the amount made available under section 5338(a)(2)(E)
                    to make grants and contracts for transportation
                    research, technical assistance, training, and related
                    support services in rural areas.
                        ``(C) Projects of a national scope.--Not more than
                    15 percent of the amounts available under subparagraph
                    (B) may be used by the Secretary to carry out
                    competitively selected projects of a national scope,
                    with the remaining balance provided to the States.
                ``(4) Data collection.--Each recipient under this section
            shall submit an annual report to the Secretary containing
            information on capital investment, operations, and service
            provided with funds received under this section, including--
                        ``(A) total annual revenue;
                        ``(B) sources of revenue;
                        ``(C) total annual operating costs;
                        ``(D) total annual capital costs;
                        ``(E) fleet size and type, and related facilities;
                        ``(F) vehicle revenue miles; and
                        ``(G) ridership.

        ``(c) Apportionments.--
                ``(1) Public transportation on indian reservations.--Of the
            amounts made available or appropriated for each fiscal year
            pursuant to section 5338(a)(2)(E) to carry out this paragraph,
            the following amounts shall be apportioned each fiscal year for
            grants to Indian tribes for any purpose eligible under this
            section, under such terms and conditions as may be established
            by the Secretary:
                        ``(A) $5,000,000 shall be distributed on a
                    competitive basis by the Secretary.
                        ``(B) $25,000,000 shall be apportioned as formula
                    grants, as provided in subsection (j).
                ``(2) Appalachian development public transportation
            assistance program.--
                        ``(A) Definitions.--In this paragraph--
                              ``(i) the term `Appalachian region' has the
                          same meaning as in section 14102 of title 40; and
                              ``(ii) the term `eligible recipient' means a
                          State that participates in a program established
                          under subtitle IV of title 40.
                        ``(B) In general.--The Secretary shall carry out a
                    public transportation assistance program in the
                    Appalachian region.
                        ``(C) Apportionment.--Of amounts made available or
                    appropriated for each fiscal year under section
                    5338(a)(2)(E) to carry out this paragraph, the Secretary
                    shall apportion funds to eligible recipients for any
                    purpose eligible under this section, based on the
                    guidelines established under

    [[Page 126 STAT. 682]]

                    section 9.5(b) of the Appalachian Regional Commission
                    Code.
                        ``(D) Special rule.--An eligible recipient may use
                    amounts that cannot be used for operating expenses under
                    this paragraph for a highway project if--
                              ``(i) that use is approved, in writing, by the
                          eligible recipient after appropriate notice and an
                          opportunity for comment and appeal are provided to
                          affected public transportation providers; and
                              ``(ii) the eligible recipient, in approving
                          the use of amounts under this subparagraph,
                          determines that the local transit needs are being
                          addressed.
                ``(3) Remaining amounts.--
                        ``(A) In general.--The amounts made available or
                    appropriated for each fiscal year pursuant to section
                    5338(a)(2)(E) that are not apportioned under paragraph
                    (1) or (2) shall be apportioned in accordance with this
                    paragraph.
                        ``(B) Apportionment based on land area and
                    population in nonurbanized areas.--
                              ``(i) In general.--83.15 percent of the amount
                          described in subparagraph (A) shall be apportioned
                          to the States in accordance with this
                          subparagraph.
                              ``(ii) Land area.--
                                        ``(I) In general.--Subject to
                                    subclause (II), each State shall receive
                                    an amount that is equal to 20 percent of
                                    the amount apportioned under clause (i),
                                    multiplied by the ratio of the land area
                                    in rural areas in that State and divided
                                    by the land area in all rural areas in
                                    the United States, as shown by the most
                                    recent decennial census of population.
                                        ``(II) Maximum apportionment.--No
                                    State shall receive more than 5 percent
                                    of the amount apportioned under
                                    subclause (I).
                              ``(iii) Population.--Each State shall receive
                          an amount equal to 80 percent of the amount
                          apportioned under clause (i), multiplied by the
                          ratio of the population of rural areas in that
                          State and divided by the population of all rural
                          areas in the United States, as shown by the most
                          recent decennial census of population.
                        ``(C) Apportionment based on land area, vehicle
                    revenue miles, and low-income individuals in
                    nonurbanized areas.--
                              ``(i) In general.--16.85 percent of the amount
                          described in subparagraph (A) shall be apportioned
                          to the States in accordance with this
                          subparagraph.
                              ``(ii) Land area.--Subject to clause (v), each
                          State shall receive an amount that is equal to
                          29.68 percent of the amount apportioned under
                          clause (i), multiplied by the ratio of the land
                          area in rural areas in that State and divided by
                          the land area in all rural areas in the United
                          States, as shown by the most recent decennial
                          census of population.
                              ``(iii) Vehicle revenue miles.--Subject to
                          clause (v), each State shall receive an amount
                          that is equal

    [[Page 126 STAT. 683]]

                          to 29.68 percent of the amount apportioned under
                          clause (i), multiplied by the ratio of vehicle
                          revenue miles in rural areas in that State and
                          divided by the vehicle revenue miles in all rural
                          areas in the United States, as determined by
                          national transit database reporting.
                              ``(iv) Low-income individuals.--Each State
                          shall receive an amount that is equal to 40.64
                          percent of the amount apportioned under clause
                          (i), multiplied by the ratio of low-income
                          individuals in rural areas in that State and
                          divided by the number of low-income individuals in
                          all rural areas in the United States, as shown by
                          the Bureau of the Census.
                              ``(v) Maximum apportionment.--No State shall
                          receive--
                                        ``(I) more than 5 percent of the
                                    amount apportioned under clause (ii); or
                                        ``(II) more than 5 percent of the
                                    amount apportioned under clause (iii).

        ``(d) Use for Local Transportation Service.--A State may use an
    amount apportioned under this section for a project included in a
    program under subsection (b) of this section and eligible for assistance
    under this chapter if the project will provide local transportation
    service, as defined by the Secretary of Transportation, in a rural area.
        ``(e) Use for Administration, Planning, and Technical Assistance.--
    The Secretary may allow a State to use not more than 10 percent of the
    amount apportioned under this section to administer this section and
    provide technical assistance to a subrecipient, including project
    planning, program and management development, coordination of public
    transportation programs, and research the State considers appropriate to
    promote effective delivery of public transportation to a rural area.
        ``(f) Intercity Bus Transportation.--
                ``(1) In general.--A State shall expend at least 15 percent
            of the amount made available in each fiscal year to carry out a
            program to develop and support intercity bus transportation.
            Eligible activities under the program include--
                        ``(A) planning and marketing for intercity bus
                    transportation;
                        ``(B) capital grants for intercity bus facilities;
                        ``(C) joint-use facilities;
                        ``(D) operating grants through purchase-of-service
                    agreements, user-side subsidies, and demonstration
                    projects; and
                        ``(E) coordinating rural connections between small
                    public transportation operations and intercity bus
                    carriers.
                ``(2) Certification.--A State does not have to comply with
            paragraph (1) of this subsection in a fiscal year in which the
            Governor of the State certifies to the Secretary, after
            consultation with affected intercity bus service providers, that
            the intercity bus service needs of the State are being met
            adequately.

        ``(g) Government Share of Costs.--
                ``(1) Capital projects.--
                        ``(A) In general.--Except as provided by
                    subparagraph (B), a grant awarded under this section for
                    a capital project or project administrative expenses
                    shall be for 80 percent

    [[Page 126 STAT. 684]]

                    of the net costs of the project, as determined by the
                    Secretary.
                        ``(B) Exception.--A State described in section
                    120(b) of title 23 shall receive a Government share of
                    the net costs in accordance with the formula under that
                    section.
                ``(2) Operating assistance.--
                        ``(A) In general.--Except as provided by
                    subparagraph (B), a grant made under this section for
                    operating assistance may not exceed 50 percent of the
                    net operating costs of the project, as determined by the
                    Secretary.
                        ``(B) Exception.--A State described in section
                    120(b) of title 23 shall receive a Government share of
                    the net operating costs equal to 62.5 percent of the
                    Government share provided for under paragraph (1)(B).
                ``(3) Remainder.--The remainder of net project costs--
                        ``(A) may be provided from an undistributed cash
                    surplus, a replacement or depreciation cash fund or
                    reserve, a service agreement with a State or local
                    social service agency or a private social service
                    organization, or new capital;
                        ``(B) may be derived from amounts appropriated or
                    otherwise made available to a department or agency of
                    the Government (other than the Department of
                    Transportation) that are eligible to be expended for
                    transportation;
                        ``(C) notwithstanding subparagraph (B), may be
                    derived from amounts made available to carry out the
                    Federal lands highway program established by section 204
                    of title 23; and
                        ``(D) in the case of an intercity bus project that
                    includes both feeder service and an unsubsidized segment
                    of intercity bus service to which the feeder service
                    connects, may be derived from the costs of a private
                    operator for the unsubsidized segment of intercity bus
                    service as an in-kind match for the operating costs of
                    connecting rural intercity bus feeder service funded
                    under subsection (f), if the private operator agrees in
                    writing to the use of the costs of the private operator
                    for the unsubsidized segment of intercity bus service as
                    an in-kind match.
                ``(4) Use of certain funds.--For purposes of paragraph
            (3)(B), the prohibitions on the use of funds for matching
            requirements under section 403(a)(5)(C)(vii) of the Social
            Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to
            Federal or State funds to be used for transportation purposes.
                ``(5) Limitation on operating assistance.--A State carrying
            out a program of operating assistance under this section may not
            limit the level or extent of use of the Government grant for the
            payment of operating expenses.

        ``(h) Transfer of Facilities and Equipment.--With the consent of the
    recipient currently having a facility or equipment acquired with
    assistance under this section, a State may transfer the facility or
    equipment to any recipient eligible to receive assistance under this
    chapter if the facility or equipment will continue to be used as
    required under this section.
        ``(i) Relationship to Other Laws.--

    [[Page 126 STAT. 685]]

                ``(1) <<NOTE: Applicability.>> In general.--Section 5333(b)
            applies to this section if the Secretary of Labor utilizes a
            special warranty that provides a fair and equitable arrangement
            to protect the interests of employees.
                ``(2) Rule of construction.--This subsection does not affect
            or discharge a responsibility of the Secretary of Transportation
            under a law of the United States.

        ``(j) Formula Grants for Public Transportation on Indian
    Reservations.--
                ``(1) Apportionment.--
                        ``(A) In general.--Of the amounts described in
                    subsection (c)(1)(B)--
                              ``(i) 50 percent of the total amount shall be
                          apportioned so that each Indian tribe providing
                          public transportation service shall receive an
                          amount equal to the total amount apportioned under
                          this clause multiplied by the ratio of the number
                          of vehicle revenue miles provided by an Indian
                          tribe divided by the total number of vehicle
                          revenue miles provided by all Indian tribes, as
                          reported to the Secretary;
                              ``(ii) 25 percent of the total amount shall be
                          apportioned equally among each Indian tribe
                          providing at least 200,000 vehicle revenue miles
                          of public transportation service annually, as
                          reported to the Secretary; and
                              ``(iii) 25 percent of the total amount shall
                          be apportioned among each Indian tribe providing
                          public transportation on tribal lands (as defined
                          by the Bureau of the Census) on which more than
                          1,000 low-income individuals reside (as determined
                          by the Bureau of the Census) so that each Indian
                          tribe shall receive an amount equal to the total
                          amount apportioned under this clause multiplied by
                          the ratio of the number of low-income individuals
                          residing on an Indian tribe's lands divided by the
                          total number of low-income individuals on tribal
                          lands on which more than 1,000 low-income
                          individuals reside.
                        ``(B) Limitation.--No recipient shall receive more
                    than $300,000 of the amounts apportioned under
                    subparagraph (A)(iii) in a fiscal year.
                        ``(C) Remaining amounts.--Of the amounts made
                    available under subparagraph (A)(iii), any amounts not
                    apportioned under that subparagraph shall be allocated
                    among Indian tribes receiving less than $300,000 in a
                    fiscal year according to the formula specified in that
                    clause.
                        ``(D) Low-income individuals.--For purposes of
                    subparagraph (A)(iii), the term `low-income individual'
                    means an individual whose family income is at or below
                    100 percent of the poverty line, as that term is defined
                    in section 673(2) of the Community Services Block Grant
                    Act (42 U.S.C. 9902(2)), including any revision required
                    by that section, for a family of the size involved.
                ``(2) Non-tribal service providers.--A recipient that is an
            Indian tribe may use funds apportioned under this subsection to
            finance public transportation services provided by a non-tribal
            provider of public transportation that connects residents of
            tribal lands with surrounding communities,

    [[Page 126 STAT. 686]]

            improves access to employment or healthcare, or otherwise
            addresses the mobility needs of tribal members.''.
    SEC. 20011. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT
                                PROJECTS.

        Section 5312 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5312. Research, development, demonstration, and deployment
                      projects

        ``(a) Research, Development, Demonstration, and Deployment
    Projects.--
                ``(1) In general.--The Secretary may make grants and enter
            into contracts, cooperative agreements, and other agreements for
            research, development, demonstration, and deployment projects,
            and evaluation of research and technology of national
            significance to public transportation, that the Secretary
            determines will improve public transportation.
                ``(2) Agreements.--In order to carry out paragraph (1), the
            Secretary may make grants to and enter into contracts,
            cooperative agreements, and other agreements with--
                        ``(A) departments, agencies, and instrumentalities
                    of the Government, including Federal laboratories;
                        ``(B) State and local governmental entities;
                        ``(C) providers of public transportation;
                        ``(D) private or non-profit organizations;
                        ``(E) institutions of higher education; and
                        ``(F) technical and community colleges.
                ``(3) Application.--
                        ``(A) In general.--To receive a grant, contract,
                    cooperative agreement, or other agreement under this
                    section, an entity described in paragraph (2) shall
                    submit an application to the Secretary.
                        ``(B) Form and contents.--An application under
                    subparagraph (A) shall be in such form and contain such
                    information as the Secretary may require, including--
                              ``(i) a statement of purpose detailing the
                          need being addressed;
                              ``(ii) the short- and long-term goals of the
                          project, including opportunities for future
                          innovation and development, the potential for
                          deployment, and benefits to riders and public
                          transportation; and
                              ``(iii) the short- and long-term funding
                          requirements to complete the project and any
                          future objectives of the project.

        ``(b) Research.--
                ``(1) In general.--The Secretary may make a grant to or
            enter into a contract, cooperative agreement, or other agreement
            under this section with an entity described in subsection (a)(2)
            to carry out a public transportation research project that has
            as its ultimate goal the development and deployment of new and
            innovative ideas, practices, and approaches.
                ``(2) Project eligibility.--A public transportation research
            project that receives assistance under paragraph (1) shall focus
            on--
                        ``(A) providing more effective and efficient public
                    transportation service, including services to--

    [[Page 126 STAT. 687]]

                              ``(i) seniors;
                              ``(ii) individuals with disabilities; and
                              ``(iii) low-income individuals;
                        ``(B) mobility management and improvements and
                    travel management systems;
                        ``(C) data and communication system advancements;
                        ``(D) system capacity, including--
                              ``(i) train control;
                              ``(ii) capacity improvements; and
                              ``(iii) performance management;
                        ``(E) capital and operating efficiencies;
                        ``(F) planning and forecasting modeling and
                    simulation;
                        ``(G) advanced vehicle design;
                        ``(H) advancements in vehicle technology;
                        ``(I) asset maintenance and repair systems
                    advancement;
                        ``(J) construction and project management;
                        ``(K) alternative fuels;
                        ``(L) the environment and energy efficiency;
                        ``(M) safety improvements; or
                        ``(N) any other area that the Secretary determines
                    is important to advance the interests of public
                    transportation.

        ``(c) Innovation and Development.--
                ``(1) In general.--The Secretary may make a grant to or
            enter into a contract, cooperative agreement, or other agreement
            under this section with an entity described in subsection (a)(2)
            to carry out a public transportation innovation and development
            project that seeks to improve public transportation systems
            nationwide in order to provide more efficient and effective
            delivery of public transportation services, including through
            technology and technological capacity improvements.
                ``(2) Project eligibility.--A public transportation
            innovation and development project that receives assistance
            under paragraph (1) shall focus on--
                        ``(A) the development of public transportation
                    research projects that received assistance under
                    subsection (b) that the Secretary determines were
                    successful;
                        ``(B) planning and forecasting modeling and
                    simulation;
                        ``(C) capital and operating efficiencies;
                        ``(D) advanced vehicle design;
                        ``(E) advancements in vehicle technology;
                        ``(F) the environment and energy efficiency;
                        ``(G) system capacity, including train control and
                    capacity improvements; or
                        ``(H) any other area that the Secretary determines
                    is important to advance the interests of public
                    transportation.

        ``(d) Demonstration, Deployment, and Evaluation.--
                ``(1) In general.--The Secretary may, under terms and
            conditions that the Secretary prescribes, make a grant to or
            enter into a contract, cooperative agreement, or other agreement
            with an entity described in paragraph (2) to promote the early
            deployment and demonstration of innovation in public
            transportation that has broad applicability.
                ``(2) Participants.--An entity described in this paragraph
            is--
                        ``(A) an entity described in subsection (a)(2); or

    [[Page 126 STAT. 688]]

                        ``(B) a consortium of entities described in
                    subsection (a)(2), including a provider of public
                    transportation, that will share the costs, risks, and
                    rewards of early deployment and demonstration of
                    innovation.
                ``(3) Project eligibility.--A project that receives
            assistance under paragraph (1) shall seek to build on successful
            research, innovation, and development efforts to facilitate--
                        ``(A) the deployment of research and technology
                    development resulting from private efforts or Federally
                    funded efforts; and
                        ``(B) the implementation of research and technology
                    development to advance the interests of public
                    transportation.
                ``(4) <<NOTE: Deadline.>> Evaluation.--Not later than 2
            years after the date on which a project receives assistance
            under paragraph (1), the Secretary shall conduct a comprehensive
            evaluation of the success or failure of the projects funded
            under this subsection and any plan for broad-based
            implementation of the innovation promoted by successful
            projects.
                ``(5) Low or no emission vehicle deployment.--
                        ``(A) Definitions.--In this paragraph, the following
                    definitions shall apply:
                              ``(i) Eligible area.--The term `eligible area'
                          means an area that is--
                                        ``(I) designated as a nonattainment
                                    area for ozone or carbon monoxide under
                                    section 107(d) of the Clean Air Act (42
                                    U.S.C. 7407(d)); or
                                        ``(II) a maintenance area, as
                                    defined in section 5303, for ozone or
                                    carbon monoxide.
                              ``(ii) Eligible project.--The term `eligible
                          project' means a project or program of projects in
                          an eligible area for--
                                        ``(I) acquiring or leasing low or no
                                    emission vehicles;
                                        ``(II) constructing or leasing
                                    facilities and related equipment for low
                                    or no emission vehicles;
                                        ``(III) constructing new public
                                    transportation facilities to accommodate
                                    low or no emission vehicles; or
                                        ``(IV) rehabilitating or improving
                                    existing public transportation
                                    facilities to accommodate low or no
                                    emission vehicles.
                              ``(iii) Direct carbon emissions.--The term
                          `direct carbon emissions' means the quantity of
                          direct greenhouse gas emissions from a vehicle, as
                          determined by the Administrator of the
                          Environmental Protection Agency.
                              ``(iv) Low or no emission bus.--The term `low
                          or no emission bus' means a bus that is a low or
                          no emission vehicle.
                              ``(v) Low or no emission vehicle.--The term
                          `low or no emission vehicle' means--
                                        ``(I) a passenger vehicle used to
                                    provide public transportation that the
                                    Administrator of the Environmental
                                    Protection Agency has certified
                                    sufficiently reduces energy consumption
                                    or reduces

    [[Page 126 STAT. 689]]

                                    harmful emissions, including direct
                                    carbon emissions, when compared to a
                                    comparable standard vehicle; or
                                        ``(II) a zero emission bus used to
                                    provide public transportation.
                              ``(vi) Recipient.--The term `recipient'
                          means--
                                        ``(I) for an eligible area that is
                                    an urbanized area with a population of
                                    fewer than 200,000 individuals, as
                                    determined by the Bureau of the Census,
                                    the State in which the eligible area is
                                    located; and
                                        ``(II) for an eligible area not
                                    described in subparagraph (A), the
                                    designated recipient for the eligible
                                    area.
                              ``(vii) Zero emission bus.--The term `zero
                          emission bus' means a low or no emission bus that
                          produces no carbon or particulate matter.
                        ``(B) Authority.--The Secretary may make grants to
                    recipients to finance eligible projects under this
                    paragraph.
                        ``(C) Grant requirements.--
                              ``(i) In general.--A grant under this
                          paragraph shall be subject to the requirements of
                          section 5307.
                              ``(ii) Government share of costs for certain
                          projects.-- <<NOTE: Applicability.>> Section
                          5323(j) applies to projects carried out under this
                          paragraph, unless the grant recipient requests a
                          lower grant percentage.
                              ``(iii) Combination of funding sources.--
                                        ``(I) Combination permitted.--A
                                    project carried out under this paragraph
                                    may receive funding under section 5307,
                                    or any other provision of law.
                                        ``(II) Government share.--Nothing in
                                    this clause may be construed to alter
                                    the Government share required under this
                                    section, section 5307, or any other
                                    provision of law.
                        ``(D) Minimum amounts.--Of amounts made available by
                    or appropriated under section 5338(b) in each fiscal
                    year to carry out this paragraph--
                              ``(i) not less than 65 percent shall be made
                          available to fund eligible projects relating to
                          low or no emission buses; and
                              ``(ii) not less than 10 percent shall be made
                          available for eligible projects relating to
                          facilities and related equipment for low or no
                          emission buses.
                        ``(E) Competitive process.--The Secretary shall
                    solicit grant applications and make grants for eligible
                    projects on a competitive basis.
                        ``(F) Priority consideration.--In making grants
                    under this paragraph, the Secretary shall give priority
                    to projects relating to low or no emission buses that
                    make greater reductions in energy consumption and
                    harmful emissions, including direct carbon emissions,
                    than comparable standard buses or other low or no
                    emission buses.
                        ``(G) Availability of funds.--Any amounts made
                    available or appropriated to carry out this paragraph--
                              ``(i) shall remain available to an eligible
                          project for 2 years after the fiscal year for
                          which the amount is made available or
                          appropriated; and

    [[Page 126 STAT. 690]]

                              ``(ii) that remain unobligated at the end of
                          the period described in clause (i) shall be added
                          to the amount made available to an eligible
                          project in the following fiscal year.

        ``(e) Annual Report on Research.--Not later than the first Monday in
    February of each year, the Secretary shall submit to the Committee on
    Banking, Housing, and Urban Affairs and the Committee on Appropriations
    of the Senate and the Committee on Transportation and Infrastructure,
    the Committee on Science, Space, and Technology, and the Committee on
    Appropriations of the House of Representatives a report that includes--
                ``(1) a description of each project that received assistance
            under this section during the preceding fiscal year;
                ``(2) an evaluation of each project described in paragraph
            (1), including any evaluation conducted under subsection (d)(4)
            for the preceding fiscal year; and
                ``(3) a proposal for allocations of amounts for assistance
            under this section for the subsequent fiscal year.

        ``(f) Government Share of Costs.--
                ``(1) In general.--The Government share of the cost of a
            project carried out under this section shall not exceed 80
            percent.
                ``(2) Non-government share.--The non-Government share of the
            cost of a project carried out under this section may be derived
            from in-kind contributions.
                ``(3) Financial benefit.--If the Secretary determines that
            there would be a clear and direct financial benefit to an entity
            under a grant, contract, cooperative agreement, or other
            agreement under this section, the Secretary shall establish a
            Government share of the costs of the project to be carried out
            under the grant, contract, cooperative agreement, or other
            agreement that is consistent with the benefit.''.
    SEC. 20012. TECHNICAL ASSISTANCE AND STANDARDS DEVELOPMENT.

        Section 5314 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5314. Technical assistance and standards development

        ``(a) Technical Assistance and Standards Development.--
                ``(1) In general.--The Secretary may make grants and enter
            into contracts, cooperative agreements, and other agreements
            (including agreements with departments, agencies, and
            instrumentalities of the Government) to carry out activities
            that the Secretary determines will assist recipients of
            assistance under this chapter to--
                        ``(A) more effectively and efficiently provide
                    public transportation service;
                        ``(B) administer funds received under this chapter
                    in compliance with Federal law; and
                        ``(C) improve public transportation.
                ``(2) Eligible activities.--The activities carried out under
            paragraph (1) may include--
                        ``(A) technical assistance; and
                        ``(B) the development of voluntary and consensus-
                    based standards and best practices by the public
                    transportation industry, including standards and best
                    practices for safety,

    [[Page 126 STAT. 691]]

                    fare collection, Intelligent Transportation Systems,
                    accessibility, procurement, security, asset management
                    to maintain a state of good repair, operations,
                    maintenance, vehicle propulsion, communications, and
                    vehicle electronics.

        ``(b) Technical Assistance.--The Secretary, through a competitive
    bid process, may enter into contracts, cooperative agreements, and other
    agreements with national nonprofit organizations that have the
    appropriate demonstrated capacity to provide public transportation-
    related technical assistance under this section. The Secretary may enter
    into such contracts, cooperative agreements, and other agreements to
    assist providers of public transportation to--
                ``(1) comply with the Americans with Disabilities Act of
            1990 (42 U.S.C. 12101 et seq.) through technical assistance,
            demonstration programs, research, public education, and other
            activities related to complying with such Act;
                ``(2) comply with human services transportation coordination
            requirements and to enhance the coordination of Federal
            resources for human services transportation with those of the
            Department of Transportation through technical assistance,
            training, and support services related to complying with such
            requirements;
                ``(3) meet the transportation needs of elderly individuals;
                ``(4) increase transit ridership in coordination with
            metropolitan planning organizations and other entities through
            development around public transportation stations through
            technical assistance and the development of tools, guidance, and
            analysis related to market-based development around transit
            stations;
                ``(5) address transportation equity with regard to the
            effect that transportation planning, investment and operations
            have for low-income and minority individuals; and
                ``(6) any other technical assistance activity that the
            Secretary determines is necessary to advance the interests of
            public transportation.

        ``(c) Annual Report on Technical Assistance.--Not later than the
    first Monday in February of each year, the Secretary shall submit to the
    Committee on Banking, Housing, and Urban Affairs and the Committee on
    Appropriations of the Senate and the Committee on Transportation and
    Infrastructure, the Committee on Science, Space, and Technology, and the
    Committee on Appropriations of the House of Representatives a report
    that includes--
                ``(1) a description of each project that received assistance
            under this section during the preceding fiscal year;
                ``(2) an evaluation of the activities carried out by each
            organization that received assistance under this section during
            the preceding fiscal year; and
                ``(3) a proposal for allocations of amounts for assistance
            under this section for the subsequent fiscal year.

        ``(d) Government Share of Costs.--
                ``(1) In general.--The Government share of the cost of an
            activity carried out using a grant under this section may not
            exceed 80 percent.
                ``(2) Non-government share.--The non-Government share of the
            cost of an activity carried out using a grant under this section
            may be derived from in-kind contributions.''.

    [[Page 126 STAT. 692]]

    SEC. 20013. PRIVATE SECTOR PARTICIPATION.

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

        ``(a) General Purposes.--In the interest of fulfilling the general
    purposes of this chapter under section 5301(b), the Secretary shall--
                ``(1) better coordinate public and private sector-provided
            public transportation services;
                ``(2) promote more effective utilization of private sector
            expertise, financing, and operational capacity to deliver costly
            and complex new fixed guideway capital projects; and
                ``(3) promote transparency and public understanding of
            public-private partnerships affecting public transportation.

        ``(b) Actions to Promote Better Coordination Between Public and
    Private Sector Providers of Public Transportation.--The Secretary
    shall--
                ``(1) provide technical assistance to recipients of Federal
            transit grant assistance, at the request of a recipient, on
            practices and methods to best utilize private providers of
            public transportation; and
                ``(2) educate recipients of Federal transit grant assistance
            on laws and regulations under this chapter that impact private
            providers of public transportation.

        ``(c) Actions to Provide Technical Assistance for Alternative
    Project Delivery Methods.--Upon request by a sponsor of a new fixed
    guideway capital project, the Secretary shall--
                ``(1) identify best practices for public-private
            partnerships models in the United States and in other countries;
                ``(2) develop standard public-private partnership
            transaction model contracts; and
                ``(3) perform financial assessments that include the
            calculation of public and private benefits of a proposed public-
            private partnership transaction.''.

        (b) <<NOTE: 49 USC 5315 note.>> Public-private Partnership
    Procedures and Approaches.--
                (1) Identify impediments.--The Secretary shall--
                        (A) except as provided in paragraph (6), identify
                    any provisions of chapter 53 of title 49, United States
                    Code, and any regulations or practices thereunder, that
                    impede greater use of public-private partnerships and
                    private investment in public transportation capital
                    projects; and
                        (B) develop and implement on a project basis
                    procedures and approaches that--
                              (i) address such impediments in a manner
                          similar to the Special Experimental Project Number
                          15 of the Federal Highway Administration (commonly
                          referred to as ``SEP-15''); and
                              (ii) protect the public interest and any
                          public investment in public transportation capital
                          projects that involve public-private partnerships
                          or private investment in public transportation
                          capital projects.
                (2) <<NOTE: Guidance.>> Transparency.--The Secretary shall
            develop guidance to promote greater transparency and public
            access to public-private partnership agreements involving
            recipients of Federal

    [[Page 126 STAT. 693]]

            assistance under chapter 53 of title 49, United States Code,
            including--
                        (A) any conflict of interest involving any party
                    involved in the public-private partnership;
                        (B) tax and financing aspects related to a public-
                    private partnership agreement;
                        (C) changes in the workforce and wages, benefits, or
                    rules as a result of a public-private partnership;
                        (D) estimates of the revenue or savings the public-
                    private partnership will produce for the private entity
                    and public entity;
                        (E) any impacts on other developments and
                    transportation modes as a result of non-compete clauses
                    contained in public-private partnership agreements; and
                        (F) any other issues the Secretary believes will
                    increase transparency of public-private partnership
                    agreements and protect the public interest.
                (3) Assessment.--In developing and implementing the guidance
            under paragraph (2), the Secretary shall encourage project
            sponsors to conduct assessments to determine whether use of a
            public-private partnership represents a better public and
            financial benefit than a similar transaction using public
            funding or public project delivery.
                (4) Report.--Not later than 4 years after the date of
            enactment of this Act, the Secretary shall submit to Congress a
            report on the status of the procedures, approaches, and guidance
            developed and implemented under paragraphs (1) and (2).
                (5) <<NOTE: Deadline.>> Rulemaking.--Not later than 1 year
            after the date of enactment of this Act, the Secretary shall
            issue rules to carry out the procedures and approaches developed
            under paragraph (1).
                (6) Rule of construction.--Nothing in this subsection may be
            construed to allow the Secretary to waive any requirement
            under--
                        (A) section 5333 of title 49, United States Code;
                        (B) the National Environmental Policy Act of 1969
                    (42 U.S.C. 4321 et seq.); or
                        (C) any other provision of Federal law.

        (c) Contracting Out Study.--
                (1) <<NOTE: Deadline. Reports.>> In general.--Not later than
            1 year after the date of enactment of this Act, the Comptroller
            General of the United States shall submit to the Committee on
            Transportation and Infrastructure of the House of
            Representatives and the Committee on Banking, Housing, and Urban
            Affairs of the Senate a comprehensive report on the effect of
            contracting out public transportation operations and
            administrative functions on cost, availability and level of
            service, efficiency, and quality of service.
                (2) Considerations.--In developing the report, the
            Comptroller General shall consider--
                        (A) the number of grant recipients that have
                    contracted out services and the types of public
                    transportation services that are performed under
                    contract, including paratransit service, fixed route bus
                    service, commuter rail operations, and administrative
                    functions;

    [[Page 126 STAT. 694]]

                        (B) the size of the populations served by such grant
                    recipients;
                        (C) the basis for decisions regarding contracting
                    out such services;
                        (D) comparative costs of providing service under
                    contract to providing the same service through public
                    transit agency employees, using to the greatest extent
                    possible a standard cost allocation model;
                        (E) the extent of unionization among privately
                    contracted employees;
                        (F) the impact to wages and benefits of employees
                    when publicly provided public transportation services
                    are contracted out to a private for-profit entity;
                        (G) the level of transparency and public access to
                    agreements and contracts related to contracted out
                    public transportation services;
                        (H) the extent of Federal law, regulations and
                    guidance prohibiting any conflicts of interest for
                    contractor employees and businesses;
                        (I) the extent to which grant recipients evaluate
                    contracted out services before selecting them and the
                    extent to which grant recipients conduct oversight of
                    those services; and
                        (J) barriers to contracting out public
                    transportation operations and administrative functions.

        (d) <<NOTE: Deadline. Federal Register, publication. 49 USC 5303
    note.>> Guidance on Documenting Compliance.--Not later than 1 year after
    the date of enactment of this Act, the Secretary shall publish in the
    Federal Register policy guidance regarding how to best document
    compliance by recipients of Federal assistance under chapter 53 of title
    49, United States Code, with the requirements regarding private
    enterprise participation in public transportation planning and
    transportation improvement programs under sections 5303(i)(6), 5306(a),
    and 5307(c) of such title 49.
    SEC. 20014. BUS TESTING FACILITIES.

        Section 5318 of title 49, United States Code, is amended by striking
    subsection (e) and inserting the following:
        ``(e) Acquiring New Bus Models.--
                ``(1) In general.--Amounts appropriated or otherwise made
            available under this chapter may be obligated or expended to
            acquire a new bus model only if--
                        ``(A) a bus of that model has been tested at a
                    facility authorized under subsection (a); and
                        ``(B) the bus tested under subparagraph (A) met--
                              ``(i) performance standards for
                          maintainability, reliability, performance
                          (including braking performance), structural
                          integrity, fuel economy, emissions, and noise, as
                          established by the Secretary by rule; and
                              ``(ii) the minimum safety performance
                          standards established by the Secretary pursuant to
                          section 5329(b).
                ``(2) <<NOTE: Deadline. Regulations.>> Bus test `pass/fail'
            standard.--Not later than 2 years after the date of enactment of
            the Federal Public Transportation Act of 2012, the Secretary
            shall issue a final rule under subparagraph (B)(i). The final
            rule issued under paragraph (B)(i) shall include a bus model
            scoring system that results

    [[Page 126 STAT. 695]]

            in a weighted, aggregate score that uses the testing categories
            under subsection (a) and considers the relative importance of
            each such testing category. The final rule issued under
            subparagraph (B)(i) shall establish a `pass/fail' standard that
            uses the aggregate score described in the preceding sentence.
            Amounts appropriated or otherwise made available under this
            chapter may be obligated or expended to acquire a new bus model
            only if the new bus model has received a passing aggregate test
            score. The Secretary shall work with the bus testing facility,
            bus manufacturers, and transit agencies to develop the bus model
            scoring system under this paragraph. A passing aggregate test
            score under the rule issued under subparagraph (B)(i) indicates
            only that amounts appropriated or made available under this
            chapter may be obligated or expended to acquire a new bus model
            and shall not be interpreted as a warranty or guarantee that the
            new bus model will meet a purchaser's specific requirements.''.
    SEC. 20015. HUMAN RESOURCES AND TRAINING.

        Section 5322 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5322. Human resources and training

        ``(a) In General.--The Secretary may undertake, or make grants and
    contracts for, programs that address human resource needs as they apply
    to public transportation activities. A program may include--
                ``(1) an employment training program;
                ``(2) an outreach program to increase minority and female
            employment in public transportation activities;
                ``(3) research on public transportation personnel and
            training needs; and
                ``(4) training and assistance for minority business
            opportunities.

        ``(b) Innovative Public Transportation Workforce Development
    Program.--
                ``(1) <<NOTE: Grants.>> Program established.--The Secretary
            shall establish a competitive grant program to assist the
            development of innovative activities eligible for assistance
            under subsection (a).
                ``(2) Selection of recipients.--To the maximum extent
            feasible, the Secretary shall select recipients that--
                        ``(A) are geographically diverse;
                        ``(B) address the workforce and human resources
                    needs of large public transportation providers;
                        ``(C) address the workforce and human resources
                    needs of small public transportation providers;
                        ``(D) address the workforce and human resources
                    needs of urban public transportation providers;
                        ``(E) address the workforce and human resources
                    needs of rural public transportation providers;
                        ``(F) advance training related to maintenance of
                    alternative energy, energy efficiency, or zero emission
                    vehicles and facilities used in public transportation;
                        ``(G) target areas with high rates of unemployment;
                    and

    [[Page 126 STAT. 696]]

                        ``(H) address current or projected workforce
                    shortages in areas that require technical expertise.

        ``(c) Government's Share of Costs.--The Government share of the cost
    of a project carried out using a grant under subsection (a) or (b) shall
    be 50 percent.
        ``(d) National Transit Institute.--
                ``(1) Establishment.--The Secretary shall establish a
            national transit institute and award grants to a public 4-year
            degree-granting institution of higher education, as defined in
            section 101(a) of the Higher Education Act of 1965 (20 U.S.C.
            1001(a)), in order to carry out the duties of the institute.
                ``(2) Duties.--
                        ``(A) In general.--In cooperation with the Federal
                    Transit Administration, State transportation
                    departments, public transportation authorities, and
                    national and international entities, the institute
                    established under paragraph (1) shall develop and
                    conduct training and educational programs for Federal,
                    State, and local transportation employees, United States
                    citizens, and foreign nationals engaged or to be engaged
                    in Government-aid public transportation work.
                        ``(B) Training and educational programs.--The
                    training and educational programs developed under
                    subparagraph (A) may include courses in recent
                    developments, techniques, and procedures related to--
                              ``(i) intermodal and public transportation
                          planning;
                              ``(ii) management;
                              ``(iii) environmental factors;
                              ``(iv) acquisition and joint use rights-of-
                          way;
                              ``(v) engineering and architectural design;
                              ``(vi) procurement strategies for public
                          transportation systems;
                              ``(vii) turnkey approaches to delivering
                          public transportation systems;
                              ``(viii) new technologies;
                              ``(ix) emission reduction technologies;
                              ``(x) ways to make public transportation
                          accessible to individuals with disabilities;
                              ``(xi) construction, construction management,
                          insurance, and risk management;
                              ``(xii) maintenance;
                              ``(xiii) contract administration;
                              ``(xiv) inspection;
                              ``(xv) innovative finance;
                              ``(xvi) workplace safety; and
                              ``(xvii) public transportation security.
                ``(3) Providing education and training.--Education and
            training of Government, State, and local transportation
            employees under this subsection shall be provided--
                        ``(A) by the Secretary at no cost to the States and
                    local governments for subjects that are a Government
                    program responsibility; or
                        ``(B) when the education and training are paid under
                    paragraph (4) of this subsection, by the State, with the
                    approval of the Secretary, through grants and contracts
                    with public and private agencies, other institutions,
                    individuals, and the institute.

    [[Page 126 STAT. 697]]

                ``(4) Availability of amounts.--Not more than .5 percent of
            the amounts made available for a fiscal year beginning after
            September 30, 1991, to a State or public transportation
            authority in the State to carry out sections 5307 and 5309 of
            this title is available for expenditure by the State and public
            transportation authorities in the State, with the approval of
            the Secretary, to pay not more than 80 percent of the cost of
            tuition and direct educational expenses related to educating and
            training State and local transportation employees under this
            subsection.

        ``(e) Report.--Not later than 2 years after the date of enactment of
    the Federal Public Transportation Act of 2012, the Secretary shall
    submit to the Committee on Banking, Housing, and Urban Affairs of the
    Senate and the Committee on Transportation and Infrastructure of the
    House of Representatives a report concerning the measurable outcomes and
    impacts of the programs funded under subsections (a) and (b).''.
    SEC. 20016. GENERAL PROVISIONS.

        Section 5323 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5323. General provisions

        ``(a) Interests in Property.--
                ``(1) <<NOTE: Determinations.>> 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.
                ``(2) Limitation.--A governmental authority may not use
            financial assistance of the United States Government to acquire
            land, equipment, or a facility used in public transportation
            from another governmental authority in the same geographic area.

        ``(b) <<NOTE: Applicability.>> Relocation and Real Property
    Requirements.--The Uniform Relocation Assistance and Real Property
    Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.) shall apply to
    financial assistance for capital projects under this chapter.

        ``(c) Consideration of Economic, Social, and Environmental
    Interests.--
                ``(1) Cooperation and consultation.--The Secretary shall
            cooperate and consult with the Secretary of the Interior and the
            Administrator of the Environmental Protection Agency on

    [[Page 126 STAT. 698]]

            each project that may have a substantial impact on the
            environment.
                ``(2) <<NOTE: Applicability.>> Compliance with nepa.--The
            National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
            seq.) shall apply to financial assistance for capital projects
            under this chapter.

        ``(d) Condition on Charter Bus Transportation Service.--
                ``(1) Agreements.--Financial assistance under this chapter
            may be used to buy or operate a bus only if the applicant,
            governmental authority, or publicly owned operator that receives
            the assistance agrees that, except as provided in the agreement,
            the governmental authority or an operator of public
            transportation for the governmental authority will not provide
            charter bus transportation service outside the urban area in
            which it provides regularly scheduled public transportation
            service. An agreement shall provide for a fair arrangement the
            Secretary of Transportation considers appropriate to ensure that
            the assistance will not enable a governmental authority or an
            operator for a governmental authority to foreclose a private
            operator from providing intercity charter bus service if the
            private operator can provide the service.
                ``(2) Violations.--
                        ``(A) Investigations.--On receiving a complaint
                    about a violation of the agreement required under
                    paragraph (1), the Secretary shall investigate and
                    decide whether a violation has occurred.
                        ``(B) Enforcement of agreements.--If the Secretary
                    decides that a violation has occurred, the Secretary
                    shall correct the violation under terms of the
                    agreement.
                        ``(C) Additional remedies.--In addition to any
                    remedy specified in the agreement, the Secretary shall
                    bar a recipient or an operator from receiving Federal
                    transit assistance in an amount the Secretary considers
                    appropriate if the Secretary finds a pattern of
                    violations of the agreement.

        ``(e) Bond Proceeds Eligible for Local Share.--
                ``(1) Use as local matching funds.--Notwithstanding any
            other provision of law, a recipient of assistance under section
            5307, 5309, or 5337 may use the proceeds from the issuance of
            revenue bonds as part of the local matching funds for a capital
            project.
                ``(2) Maintenance of effort.--The Secretary shall approve of
            the use of the proceeds from the issuance of revenue bonds for
            the remainder of the net project cost only if the Secretary
            finds that the aggregate amount of financial support for public
            transportation in the urbanized area provided by the State and
            affected local governmental authorities during the next 3 fiscal
            years, as programmed in the State transportation improvement
            program under section 5304, is not less than the aggregate
            amount provided by the State and affected local governmental
            authorities in the urbanized area during the preceding 3 fiscal
            years.
                ``(3) Debt service reserve.--The Secretary may reimburse an
            eligible recipient for deposits of bond proceeds in a debt
            service reserve that the recipient establishes pursuant to
            section 5302(3)(J) from amounts made available to the recipient
            under section 5309.

        ``(f) Schoolbus Transportation.--

    [[Page 126 STAT. 699]]

                ``(1) Agreements.--Financial assistance under this chapter
            may be used for a capital project, or to operate public
            transportation equipment or a public transportation facility,
            only if the applicant agrees not to provide schoolbus
            transportation that exclusively transports students and school
            personnel in competition with a private schoolbus operator. This
            subsection does not apply--
                        ``(A) to an applicant that operates a school system
                    in the area to be served and a separate and exclusive
                    schoolbus program for the school system; and
                        ``(B) unless a private schoolbus operator can
                    provide adequate transportation that complies with
                    applicable safety standards at reasonable rates.
                ``(2) Violations.--If the Secretary finds that an applicant,
            governmental authority, or publicly owned operator has violated
            the agreement required under paragraph (1), the Secretary shall
            bar a recipient or an operator from receiving Federal transit
            assistance in an amount the Secretary considers appropriate.

        ``(g) <<NOTE: Applicability.>> Buying Buses Under Other Laws.--
    Subsections (d) and (f) of this section apply to financial assistance to
    buy a bus under sections 133 and 142 of title 23.

        ``(h) Grant and Loan Prohibitions.--A grant or loan may not be used
    to--
                ``(1) pay ordinary governmental or nonproject operating
            expenses; or
                ``(2) support a procurement that uses an exclusionary or
            discriminatory specification.

        ``(i) Government Share of Costs for Certain Projects.--
                ``(1) Acquiring vehicles and vehicle-related equipment or
            facilities.--
                        ``(A) Vehicles.--A grant for a project to be
                    assisted under this chapter that involves acquiring
                    vehicles for purposes of complying with or maintaining
                    compliance with the Americans with Disabilities Act of
                    1990 (42 U.S.C. 12101 et seq.) or the Clean Air Act is
                    for 85 percent of the net project cost.
                        ``(B) Vehicle-related equipment or facilities.--A
                    grant for a project to be assisted under this chapter
                    that involves acquiring vehicle-related equipment or
                    facilities required by the Americans with Disabilities
                    Act of 1990 (42 U.S.C. 12101 et seq.) or vehicle-related
                    equipment or facilities (including clean fuel or
                    alternative fuel vehicle-related equipment or
                    facilities) for purposes of complying with or
                    maintaining compliance with the Clean Air Act, is for 90
                    percent of the net project cost of such equipment or
                    facilities attributable to compliance with those Acts.
                    The Secretary shall have discretion to determine,
                    through practicable administrative procedures, the costs
                    of such equipment or facilities attributable to
                    compliance with those Acts.
                ``(2) Costs incurred by providers of public transportation
            by vanpool.--
                        ``(A) Local matching share.--The local matching
                    share provided by a recipient of assistance for a
                    capital project under this chapter may include any
                    amounts expended by a provider of public transportation
                    by vanpool

    [[Page 126 STAT. 700]]

                    for the acquisition of rolling stock to be used by such
                    provider in the recipient's service area, excluding any
                    amounts the provider may have received in Federal,
                    State, or local government assistance for such
                    acquisition.
                        ``(B) Use of revenues.--A private provider of public
                    transportation by vanpool may use revenues it receives
                    in the provision of public transportation service in the
                    service area of a recipient of assistance under this
                    chapter that are in excess of the provider's operating
                    costs for the purpose of acquiring rolling stock, if the
                    private provider enters into a legally binding agreement
                    with the recipient that requires the provider to use the
                    rolling stock in the recipient's service area.
                        ``(C) Definitions.--In this paragraph, the following
                    definitions apply:
                              ``(i) Private provider of public
                          transportation by vanpool.--The term `private
                          provider of public transportation by vanpool'
                          means a private entity providing vanpool services
                          in the service area of a recipient of assistance
                          under this chapter using a commuter highway
                          vehicle or vanpool vehicle.
                              ``(ii) Commuter highway vehicle; vanpool
                          vehicle.--The term `commuter highway vehicle or
                          vanpool vehicle' means any vehicle--
                                        ``(I) the seating capacity of which
                                    is at least 6 adults (not including the
                                    driver); and
                                        ``(II) at least 80 percent of the
                                    mileage use of which can be reasonably
                                    expected to be for the purposes of
                                    transporting commuters in connection
                                    with travel between their residences and
                                    their place of employment.

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

    [[Page 126 STAT. 701]]

                              ``(i) <<NOTE: Federal Register,
                          publication. Public information. Web
                          posting.>> publish in the Federal Register and
                          make publicly available in an easily identifiable
                          location on the website of the Department of
                          Transportation a detailed written explanation of
                          the waiver determination; and
                              ``(ii) <<NOTE: Public information.>> provide
                          the public with a reasonable period of time for
                          notice and comment.
                        ``(B) Annual report.--Not later than 1 year after
                    the date of enactment of the Federal Public
                    Transportation Act of 2012, and annually thereafter, the
                    Secretary shall submit to the Committee on Banking,
                    Housing, and Urban Affairs of the Senate and the
                    Committee on Transportation and Infrastructure of the
                    House of Representatives a report listing any waiver
                    issued under paragraph (2) during the preceding year.
                ``(4) Labor costs for final assembly.--In this subsection,
            labor costs involved in final assembly are not included in
            calculating the cost of components.
                ``(5) Waiver prohibited.--The Secretary may not make a
            waiver under paragraph (2) of this subsection for goods produced
            in a foreign country if the Secretary, in consultation with the
            United States Trade Representative, decides that the government
            of that foreign country--
                        ``(A) has an agreement with the United States
                    Government under which the Secretary has waived the
                    requirement of this subsection; and
                        ``(B) has violated the agreement by discriminating
                    against goods to which this subsection applies that are
                    produced in the United States and to which the agreement
                    applies.
                ``(6) Penalty for mislabeling and misrepresentation.--A
            person is ineligible under subpart 9.4 of the Federal
            Acquisition Regulation, or any successor thereto, to receive a
            contract or subcontract made with amounts authorized under the
            Federal Public Transportation Act of 2012 if a court or
            department, agency, or instrumentality of the Government decides
            the person intentionally--
                        ``(A) affixed a `Made in America' label, or a label
                    with an inscription having the same meaning, to goods
                    sold in or shipped to the United States that are used in
                    a project to which this subsection applies but not
                    produced in the United States; or
                        ``(B) represented that goods described in
                    subparagraph (A) of this paragraph were produced in the
                    United States.
                ``(7) State requirements.--The Secretary may not impose any
            limitation on assistance provided under this chapter that
            restricts a State from imposing more stringent requirements than
            this subsection on the use of articles, materials, and supplies
            mined, produced, or manufactured in foreign countries in
            projects carried out with that assistance or restricts a
            recipient of that assistance from complying with those State-
            imposed requirements.
                ``(8) Opportunity to correct inadvertent error.--The
            Secretary may allow a manufacturer or supplier of steel, iron,
            or manufactured goods to correct after bid opening any
            certification of noncompliance or failure to properly complete
            the certification (but not including failure to sign the
            certification) under this subsection if such manufacturer or
            supplier attests

    [[Page 126 STAT. 702]]

            under penalty of perjury that such manufacturer or supplier
            submitted an incorrect certification as a result of an
            inadvertent or clerical error. The burden of establishing
            inadvertent or clerical error is on the manufacturer or
            supplier.
                ``(9) Administrative review.--A party adversely affected by
            an agency action under this subsection shall have the right to
            seek review under section 702 of title 5.

        ``(k) Participation of Governmental Agencies in Design and Delivery
    of Transportation Services.--Governmental agencies and nonprofit
    organizations that receive assistance from Government sources (other
    than the Department of Transportation) for nonemergency transportation
    services shall--
                ``(1) participate and coordinate with recipients of
            assistance under this chapter in the design and delivery of
            transportation services; and
                ``(2) be included in the planning for those services.

        ``(l) Relationship to Other Laws.--
                ``(1) <<NOTE: Applicability.>> Fraud and false statements.--
            Section 1001 of title 18 applies to a certificate, submission,
            or statement provided under this chapter. The Secretary may
            terminate financial assistance under this chapter and seek
            reimbursement directly, or by offsetting amounts, available
            under this chapter if the Secretary determines that a recipient
            of such financial assistance has made a false or fraudulent
            statement or related act in connection with a Federal public
            transportation program.
                ``(2) Political activities of nonsupervisory employees.--The
            provision of assistance under this chapter shall not be
            construed to require the application of chapter 15 of title 5 to
            any nonsupervisory employee of a public transportation system
            (or any other agency or entity performing related functions) to
            whom such chapter does not otherwise apply.

        ``(m) Preaward and Postdelivery Review of Rolling Stock Purchases.--
    <<NOTE: Regulations.>> The Secretary shall prescribe regulations
    requiring a preaward and postdelivery review of a grant under this
    chapter to buy rolling stock to ensure compliance with Government motor
    vehicle safety requirements, subsection (j) of this section, and bid
    specifications requirements of grant recipients under this chapter.
    Under this subsection, independent inspections and review are required,
    and a manufacturer certification is not sufficient. Rolling stock
    procurements of 20 vehicles or fewer made for the purpose of serving
    rural areas and urbanized areas with populations of 200,000 or fewer
    shall be subject to the same requirements as established for
    procurements of 10 or fewer buses under the post-delivery purchaser's
    requirements certification process under section 663.37(c) of title 49,
    Code of Federal Regulations.

        ``(n) Submission of Certifications.--A certification required under
    this chapter and any additional certification or assurance required by
    law or regulation to be submitted to the Secretary may be consolidated
    into a single document to be submitted annually as part of a grant
    application under this chapter. The Secretary shall publish annually a
    list of all certifications required under this chapter with the
    publication required under section 5336(d)(2).
        ``(o) <<NOTE: Applicability.>> Grant Requirements.--The grant
    requirements under sections 5307, 5309, and 5337 apply to any project
    under this chapter

    [[Page 126 STAT. 703]]

    that receives any assistance or other financing under chapter 6 (other
    than section 609) of title 23.

        ``(p) Alternative Fueling Facilities.--A recipient of assistance
    under this chapter may allow the incidental use of federally funded
    alternative fueling facilities and equipment by nontransit public
    entities and private entities if--
                ``(1) the incidental use does not interfere with the
            recipient's public transportation operations;
                ``(2) all costs related to the incidental use are fully
            recaptured by the recipient from the nontransit public entity or
            private entity;
                ``(3) the recipient uses revenues received from the
            incidental use in excess of costs for planning, capital, and
            operating expenses that are incurred in providing public
            transportation; and
                ``(4) private entities pay all applicable excise taxes on
            fuel.

        ``(q) Corridor Preservation.--
                ``(1) In general.--The Secretary may assist a recipient in
            acquiring right-of-way before the completion of the
            environmental reviews for any project that may use the right-of-
            way if the acquisition is otherwise permitted under Federal law.
            The Secretary may establish restrictions on such an acquisition
            as the Secretary determines to be necessary and appropriate.
                ``(2) Environmental reviews.--Right-of-way acquired under
            this subsection may not be developed in anticipation of the
            project until all required environmental reviews for the project
            have been completed.

        ``(r) Reasonable Access to Public Transportation Facilities.--A
    recipient of assistance under this chapter may not deny reasonable
    access for a private intercity or charter transportation operator to
    federally funded public transportation facilities, including intermodal
    facilities, park and ride lots, and bus-only highway lanes. In
    determining reasonable access, capacity requirements of the recipient of
    assistance and the extent to which access would be detrimental to
    existing public transportation services must be considered.''.
    SEC. 20017. PUBLIC TRANSPORTATION EMERGENCY RELIEF PROGRAM.

        (a) In General.--Section 5324 of title 49, United States Code, is
    amended to read as follows:
    ``Sec. 5324. Public transportation emergency relief program

        ``(a) Definition.--In this section the following definitions shall
    apply:
                ``(1) Eligible operating costs.--The term `eligible
            operating costs' means costs relating to--
                        ``(A) evacuation services;
                        ``(B) rescue operations;
                        ``(C) temporary public transportation service; or
                        ``(D) reestablishing, expanding, or relocating
                    public transportation route service before, during, or
                    after an emergency.
                ``(2) Emergency.--The term `emergency' means a natural
            disaster affecting a wide area (such as a flood, hurricane,
            tidal wave, earthquake, severe storm, or landslide) or a
            catastrophic failure from any external cause, as a result of
            which--

    [[Page 126 STAT. 704]]

                        ``(A) the Governor of a State has declared an
                    emergency and the Secretary has concurred; or
                        ``(B) the President has declared a major disaster
                    under section 401 of the Robert T. Stafford Disaster
                    Relief and Emergency Assistance Act (42 U.S.C. 5170).

        ``(b) General Authority.--The Secretary may make grants and enter
    into contracts and other agreements (including agreements with
    departments, agencies, and instrumentalities of the Government) for--
                ``(1) capital projects to protect, repair, reconstruct, or
            replace equipment and facilities of a public transportation
            system operating in the United States or on an Indian
            reservation that the Secretary determines is in danger of
            suffering serious damage, or has suffered serious damage, as a
            result of an emergency; and
                ``(2) <<NOTE: Time periods.>> eligible operating costs of
            public transportation equipment and facilities in an area
            directly affected by an emergency during--
                        ``(A) the 1-year period beginning on the date of a
                    declaration described in subsection (a)(2); or
                        ``(B) if the Secretary determines there is a
                    compelling need, the 2-year period beginning on the date
                    of a declaration described in subsection (a)(2).

        ``(c) Coordination of Emergency Funds.--
                ``(1) Use of funds.--Funds appropriated to carry out this
            section shall be in addition to any other funds available under
            this chapter.
                ``(2) No effect on other government activity.--The provision
            of funds under this section shall not affect the ability of any
            other agency of the Government, including the Federal Emergency
            Management Agency, or a State agency, a local governmental
            entity, organization, or person, to provide any other funds
            otherwise authorized by law.
                ``(3) Notification.--The Secretary shall notify the
            Secretary of Homeland Security of the purpose and amount of any
            grant made or contract or other agreement entered into under
            this section.

        ``(d) Grant Requirements.--A grant awarded under this section or
    under section 5307 or 5311 that is made to address an emergency defined
    under subsection (a)(2) shall be--
                ``(1) subject to the terms and conditions the Secretary
            determines are necessary; and
                ``(2) made only for expenses that are not reimbursed under
            the Robert T. Stafford Disaster Relief and Emergency Assistance
            Act (42 U.S.C. 5121 et seq.).

        ``(e) Government Share of Costs.--
                ``(1) Capital projects and operating assistance.--A grant,
            contract, or other agreement for a capital project or eligible
            operating costs under this section shall be, at the option of
            the recipient, for not more than 80 percent of the net project
            cost, as determined by the Secretary.
                ``(2) Non-federal share.--The remainder of the net project
            cost may be provided from an undistributed cash surplus, a
            replacement or depreciation cash fund or reserve, or new
            capital.
                ``(3) Waiver.--The Secretary may waive, in whole or part,
            the non-Federal share required under--

    [[Page 126 STAT. 705]]

                        ``(A) paragraph (2); or
                        ``(B) section 5307 or 5311, in the case of a grant
                    made available under section 5307 or 5311, respectively,
                    to address an emergency.''.

        (b) <<NOTE: 49 USC 5324 note.>> Memorandum of Agreement.--
                (1) Purposes.--The purposes of this subsection are--
                        (A) to improve coordination between the Department
                    of Transportation and the Department of Homeland
                    Security; and
                        (B) to expedite the provision of Federal assistance
                    for public transportation systems for activities
                    relating to a major disaster or emergency declared by
                    the President under the Robert T. Stafford Disaster
                    Relief and Emergency Assistance Act (42 U.S.C. 5121 et
                    seq.) (referred to in this subsection as a ``major
                    disaster or emergency'').
                (2) <<NOTE: Deadline.>> Agreement.--Not later than 180 days
            after the date of enactment of this Act, the Secretary of
            Transportation and the Secretary of Homeland Security shall
            enter into a memorandum of agreement to coordinate the roles and
            responsibilities of the Department of Transportation and the
            Department of Homeland Security in providing assistance for
            public transportation, including the provision of public
            transportation services and the repair and restoration of public
            transportation systems in areas for which the President has
            declared a major disaster or emergency.
                (3) Contents of agreement.--The memorandum of agreement
            required under paragraph (2) shall--
                        (A) provide for improved coordination and
                    expeditious use of public transportation, as
                    appropriate, in response to and recovery from a major
                    disaster or emergency;
                        (B) establish procedures to address--
                              (i) issues that have contributed to delays in
                          the reimbursement of eligible transportation-
                          related expenses relating to a major disaster or
                          emergency;
                              (ii) any challenges identified in the review
                          under paragraph (4); and
                              (iii) the coordination of assistance for
                          public transportation provided under the Robert T.
                          Stafford Disaster Relief and Emergency Assistance
                          Act and section 5324 of title 49, United States
                          Code, as amended by this Act, as appropriate; and
                        (C) provide for the development and distribution of
                    clear guidelines for State, local, and tribal
                    governments, including public transportation systems,
                    relating to--
                              (i) assistance available for public
                          transportation systems for activities relating to
                          a major disaster or emergency--
                                        (I) under the Robert T. Stafford
                                    Disaster Relief and Emergency Assistance
                                    Act;
                                        (II) under section 5324 of title 49,
                                    United States Code, as amended by this
                                    Act; and
                                        (III) from other sources, including
                                    other Federal agencies; and
                              (ii) reimbursement procedures that speed the
                          process of--

    [[Page 126 STAT. 706]]

                                        (I) applying for assistance under
                                    the Robert T. Stafford Disaster Relief
                                    and Emergency Assistance Act and section
                                    5324 of title 49, United States Code, as
                                    amended by this Act; and
                                        (II) distributing assistance for
                                    public transportation systems under the
                                    Robert T. Stafford Disaster Relief and
                                    Emergency Assistance Act and section
                                    5324 of title 49, United States Code, as
                                    amended by this Act.
                (4) After action review.--Before entering into a memorandum
            of agreement under paragraph (2), the Secretary of
            Transportation and the Secretary of Homeland Security (acting
            through the Administrator of the Federal Emergency Management
            Agency), in consultation with State, local, and tribal
            governments (including public transportation systems) that have
            experienced a major disaster or emergency, shall review after
            action reports relating to major disasters, emergencies, and
            exercises, to identify areas where coordination between the
            Department of Transportation and the Department of Homeland
            Security and the provision of public transportation services
            should be improved.
                (5) Factors for declarations of major disasters and
            emergencies.--The Administrator of the Federal Emergency
            Management Agency shall make available to State, local, and
            tribal governments, including public transportation systems, a
            description of the factors that the President considers in
            declaring a major disaster or emergency, including any pre-
            disaster emergency declaration policies.
                (6) Briefings.--
                        (A) Initial briefing.-- <<NOTE: Deadline.>> Not
                    later than 180 days after the date of enactment of this
                    Act, the Secretary of Transportation and the Secretary
                    of Homeland Security shall jointly brief the Committee
                    on Banking, Housing, and Urban Affairs and the Committee
                    on Homeland Security and Governmental Affairs of the
                    Senate on the memorandum of agreement required under
                    paragraph (2).
                        (B) Quarterly briefings.--Each quarter of the 1-year
                    period beginning on the date on which the Secretary of
                    Transportation and the Secretary of Homeland Security
                    enter into the memorandum of agreement required under
                    paragraph (2), the Secretary of Transportation and the
                    Secretary of Homeland Security shall jointly brief the
                    Committee on Banking, Housing, and Urban Affairs and the
                    Committee on Homeland Security and Governmental Affairs
                    of the Senate on the implementation of the memorandum of
                    agreement.
    SEC. 20018. CONTRACT REQUIREMENTS.

        Section 5325 of title 49, United States Code, is amended--
                (1) in subsection (e), by striking paragraph (1) and
            inserting the following:
                ``(1) Contracts.--A recipient procuring rolling stock with
            Government financial assistance under this chapter may make a
            multiyear contract to buy the rolling stock and replacement
            parts under which the recipient has an option to buy additional
            rolling stock or replacement parts for--

    [[Page 126 STAT. 707]]

                        ``(A) not more than 5 years after the date of the
                    original contract for bus procurements; and
                        ``(B) not more than 7 years after the date of the
                    original contract for rail procurements, provided that
                    such option does not allow for significant changes or
                    alterations to the rolling stock.''.
                (2) in subsection (h), by striking ``Federal Public
            Transportation Act of 2005'' and inserting ``Federal Public
            Transportation Act of 2012'';
                (3) in subsection (j)(2)(C), by striking ``, including the
            performance reported in the Contractor Performance Assessment
            Reports required under section 5309(l)(2)''; and
                (4) by adding at the end the following:

        ``(k) Veterans Employment.--Recipients and subrecipients of Federal
    financial assistance under this chapter shall ensure that contractors
    working on a capital project funded using such assistance give a hiring
    preference, to the extent practicable, to veterans (as defined in
    section 2108 of title 5) who have the requisite skills and abilities to
    perform the construction work required under the contract. This
    subsection shall not be understood, construed or enforced in any manner
    that would require an employer to give a preference to any veteran over
    any equally qualified applicant who is a member of any racial or ethnic
    minority, female, an individual with a disability, or a former
    employee.''.
    SEC. 20019. TRANSIT ASSET MANAGEMENT.

        Section 5326 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5326. Transit asset management

        ``(a) Definitions.--In this section the following definitions shall
    apply:
                ``(1) Capital asset.--The term `capital asset' includes
            equipment, rolling stock, infrastructure, and facilities for use
            in public transportation and owned or leased by a recipient or
            subrecipient of Federal financial assistance under this chapter.
                ``(2) Transit asset management plan.--The term `transit
            asset management plan' means a plan developed by a recipient of
            funding under this chapter that--
                        ``(A) includes, at a minimum, capital asset
                    inventories and condition assessments, decision support
                    tools, and investment prioritization; and
                        ``(B) the recipient certifies complies with the rule
                    issued under this section.
                ``(3) Transit asset management system.--The term `transit
            asset management system' means a strategic and systematic
            process of operating, maintaining, and improving public
            transportation capital assets effectively throughout the life
            cycle of such assets.

        ``(b) Transit Asset Management System.--The Secretary shall
    establish and implement a national transit asset management system,
    which shall include--
                ``(1) a definition of the term `state of good repair' that
            includes objective standards for measuring the condition of
            capital assets of recipients, including equipment, rolling
            stock, infrastructure, and facilities;

    [[Page 126 STAT. 708]]

                ``(2) a requirement that recipients and subrecipients of
            Federal financial assistance under this chapter develop a
            transit asset management plan;
                ``(3) a requirement that each designated recipient of
            Federal financial assistance under this chapter report on the
            condition of the system of the recipient and provide a
            description of any change in condition since the last report;
                ``(4) an analytical process or decision support tool for use
            by public transportation systems that--
                        ``(A) allows for the estimation of capital
                    investment needs of such systems over time; and
                        ``(B) assists with asset investment prioritization
                    by such systems; and
                ``(5) technical assistance to recipients of Federal
            financial assistance under this chapter.

        ``(c) <<NOTE: Deadlines. Regulations.>> Performance Measures and
    Targets.--
                ``(1) In general.--Not later than 1 year after the date of
            enactment of the Federal Public Transportation Act of 2012, the
            Secretary shall issue a final rule to establish performance
            measures based on the state of good repair standards established
            under subsection (b)(1).
                ``(2) Targets.--Not later than 3 months after the date on
            which the Secretary issues a final rule under paragraph (1), and
            each fiscal year thereafter, each recipient of Federal financial
            assistance under this chapter shall establish performance
            targets in relation to the performance measures established by
            the Secretary.
                ``(3) Reports.--Each designated recipient of Federal
            financial assistance under this chapter shall submit to the
            Secretary an annual report that describes--
                        ``(A) the progress of the recipient during the
                    fiscal year to which the report relates toward meeting
                    the performance targets established under paragraph (2)
                    for that fiscal year; and
                        ``(B) the performance targets established by the
                    recipient for the subsequent fiscal year.

        ``(d) <<NOTE: Deadline.>> Rulemaking.--Not later than 1 year after
    the date of enactment of the Federal Public Transportation Act of 2012,
    the Secretary shall issue a final rule to implement the transit asset
    management system described in subsection (b).''.
    SEC. 20020. PROJECT MANAGEMENT OVERSIGHT.

        Section 5327 of title 49, United States Code, is amended--
                (1) in subsection (a)--
                        (A) in the matter preceding paragraph (1), by
                    striking ``United States'' and all that follows through
                    ``Secretary of Transportation'' and inserting the
                    following: ``Federal financial assistance for a major
                    capital project for public transportation under this
                    chapter or any other provision of Federal law, a
                    recipient must prepare a project management plan
                    approved by the Secretary and carry out the project in
                    accordance with the project management plan''; and
                        (B) in paragraph (12), by striking ``each month''
                    and inserting ``quarterly'';
                (2) by striking subsections (c), (d), and (f);
                (3) by inserting after subsection (b) the following:

    [[Page 126 STAT. 709]]

        ``(c) Access to Sites and Records.--Each recipient of Federal
    financial assistance for public transportation under this chapter or any
    other provision of Federal law shall provide the Secretary and a
    contractor the Secretary chooses under section 5338(i) with access to
    the construction sites and records of the recipient when reasonably
    necessary.'';
                (4) by redesignating subsection (e) as subsection (d); and
                (5) in subsection (d), as so redesignated--
                        (A) in paragraph (1), by striking ``subsection (c)
                    of this section'' and inserting ``section 5338(i)''; and
                        (B) in paragraph (2)--
                              (i) by striking ``preliminary engineering
                          stage'' and inserting ``project development
                          phase''; and
                              (ii) by striking ``another stage'' and
                          inserting ``another phase''.
    SEC. 20021. PUBLIC TRANSPORTATION SAFETY.

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

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

        ``(c) Public Transportation Safety Certification Training Program.--
                ``(1) In general.--The Secretary shall establish a public
            transportation safety certification training program for Federal
            and State employees, or other designated personnel, who conduct
            safety audits and examinations of public transportation

    [[Page 126 STAT. 710]]

            systems and employees of public transportation agencies directly
            responsible for safety oversight.
                ``(2) <<NOTE: Deadline.>> Interim provisions.--Not later
            than 90 days after the date of enactment of the Federal Public
            Transportation Act of 2012, the Secretary shall establish
            interim provisions for the certification and training of the
            personnel described in paragraph (1), which shall be in effect
            until the effective date of the final rule issued by the
            Secretary to implement this subsection.

        ``(d) Public Transportation Agency Safety Plan.--
                ``(1) <<NOTE: Effective date. Certification.>> In general.--
            Effective 1 year after the effective date of a final rule issued
            by the Secretary to carry out this subsection, each recipient or
            State, as described in paragraph (3), shall certify that the
            recipient or State has established a comprehensive agency safety
            plan that includes, at a minimum--
                        ``(A) a requirement that the board of directors (or
                    equivalent entity) of the recipient approve the agency
                    safety plan and any updates to the agency safety plan;
                        ``(B) methods for identifying and evaluating safety
                    risks throughout all elements of the public
                    transportation system of the recipient;
                        ``(C) strategies to minimize the exposure of the
                    public, personnel, and property to hazards and unsafe
                    conditions;
                        ``(D) a process and timeline for conducting an
                    annual review and update of the safety plan of the
                    recipient;
                        ``(E) performance targets based on the safety
                    performance criteria and state of good repair standards
                    established under subparagraphs (A) and (B),
                    respectively, of subsection (b)(2);
                        ``(F) assignment of an adequately trained safety
                    officer who reports directly to the general manager,
                    president, or equivalent officer of the recipient; and
                        ``(G) a comprehensive staff training program for the
                    operations personnel and personnel directly responsible
                    for safety of the recipient that includes--
                              ``(i) the completion of a safety training
                          program; and
                              ``(ii) continuing safety education and
                          training.
                ``(2) Interim agency safety plan.--A system safety plan
            developed pursuant to part 659 of title 49, Code of Federal
            Regulations, as in effect on the date of enactment of the
            Federal Public Transportation Act of 2012, shall remain in
            effect until such time as this subsection takes effect.
                ``(3) Public transportation agency safety plan drafting and
            certification.--
                        ``(A) Section 5311.--For a recipient receiving
                    assistance under section 5311, a State safety plan may
                    be drafted and certified by the recipient or a State.
                        ``(B) Section 5307.--
                    <<NOTE: Deadline. Regulations.>> Not later than 120 days
                    after the date of enactment of the Federal Public
                    Transportation Act of 2012, the Secretary shall issue a
                    rule designating recipients of assistance under section
                    5307 that are small public transportation providers or
                    systems that may have their State safety plans drafted
                    or certified by a State.

        ``(e) State Safety Oversight Program.--

    [[Page 126 STAT. 711]]

                ``(1) Applicability.--This subsection applies only to
            eligible States.
                ``(2) Definition.--In this subsection, the term `eligible
            State' means a State that has--
                        ``(A) a rail fixed guideway public transportation
                    system within the jurisdiction of the State that is not
                    subject to regulation by the Federal Railroad
                    Administration; or
                        ``(B) a rail fixed guideway public transportation
                    system in the engineering or construction phase of
                    development within the jurisdiction of the State that
                    will not be subject to regulation by the Federal
                    Railroad Administration.
                ``(3) <<NOTE: Effective date.>> In general.--In order to
            obligate funds apportioned under section 5338 to carry out this
            chapter, effective 3 years after the date on which a final rule
            under this subsection becomes effective, an eligible State shall
            have in effect a State safety oversight program approved by the
            Secretary under which the State--
                        ``(A) assumes responsibility for overseeing rail
                    fixed guideway public transportation safety;
                        ``(B) adopts and enforces Federal and relevant State
                    laws on rail fixed guideway public transportation
                    safety;
                        ``(C) establishes a State safety oversight agency;
                        ``(D) <<NOTE: Determination.>> determines, in
                    consultation with the Secretary, an appropriate staffing
                    level for the State safety oversight agency that is
                    commensurate with the number, size, and complexity of
                    the rail fixed guideway public transportation systems in
                    the eligible State;
                        ``(E) requires that employees and other designated
                    personnel of the eligible State safety oversight agency
                    who are responsible for rail fixed guideway public
                    transportation safety oversight are qualified to perform
                    such functions through appropriate training, including
                    successful completion of the public transportation
                    safety certification training program established under
                    subsection (c); and
                        ``(F) prohibits any public transportation agency
                    from providing funds to the State safety oversight
                    agency or an entity designated by the eligible State as
                    the State safety oversight agency under paragraph (4).
                ``(4) State safety oversight agency.--
                        ``(A) In general.--Each State safety oversight
                    program shall establish a State safety oversight agency
                    that--
                              ``(i) is financially and legally independent
                          from any public transportation entity that the
                          State safety oversight agency oversees;
                              ``(ii) does not directly provide public
                          transportation services in an area with a rail
                          fixed guideway public transportation system
                          subject to the requirements of this section;
                              ``(iii) does not employ any individual who is
                          also responsible for the administration of rail
                          fixed guideway public transportation programs
                          subject to the requirements of this section;
                              ``(iv) has the authority to review, approve,
                          oversee, and enforce the implementation by the
                          rail fixed guideway public transportation agency
                          of the public transportation agency safety plan
                          required under subsection (d);

    [[Page 126 STAT. 712]]

                              ``(v) has investigative and enforcement
                          authority with respect to the safety of rail fixed
                          guideway public transportation systems of the
                          eligible State;
                              ``(vi) <<NOTE: Audits.>> audits, at least once
                          triennially, the compliance of the rail fixed
                          guideway public transportation systems in the
                          eligible State subject to this subsection with the
                          public transportation agency safety plan required
                          under subsection (d); and
                              ``(vii) <<NOTE: Deadline. Reports.>> provides,
                          at least once annually, a status report on the
                          safety of the rail fixed guideway public
                          transportation systems the State safety oversight
                          agency oversees to--
                                        ``(I) the Federal Transit
                                    Administration;
                                        ``(II) the Governor of the eligible
                                    State; and
                                        ``(III) the board of directors, or
                                    equivalent entity, of any rail fixed
                                    guideway public transportation system
                                    that the State safety oversight agency
                                    oversees.
                        ``(B) Waiver.--At the request of an eligible State,
                    the Secretary may waive clauses (i) and (iii) of
                    subparagraph (A) for eligible States with 1 or more rail
                    fixed guideway systems in revenue operations, design, or
                    construction, that--
                              ``(i) have fewer than 1,000,000 combined
                          actual and projected rail fixed guideway revenue
                          miles per year; or
                              ``(ii) provide fewer than 10,000,000 combined
                          actual and projected unlinked passenger trips per
                          year.
                ``(5) Programs for multi-state rail fixed guideway public
            transportation systems.--An eligible State that has within the
            jurisdiction of the eligible State a rail fixed guideway public
            transportation system that operates in more than 1 eligible
            State shall--
                        ``(A) jointly with all other eligible States in
                    which the rail fixed guideway public transportation
                    system operates, ensure uniform safety standards and
                    enforcement procedures that shall be in compliance with
                    this section, and establish and implement a State safety
                    oversight program approved by the Secretary; or
                        ``(B) jointly with all other eligible States in
                    which the rail fixed guideway public transportation
                    system operates, designate an entity having
                    characteristics consistent with the characteristics
                    described in paragraph (3) to carry out the State safety
                    oversight program approved by the Secretary.
                ``(6) Grants.--
                        ``(A) In general.--The Secretary shall make grants
                    to eligible States to develop or carry out State safety
                    oversight programs under this subsection. Grant funds
                    may be used for program operational and administrative
                    expenses, including employee training activities.
                        ``(B) Apportionment.--
                              ``(i) Formula.--The amount made available for
                          State safety oversight under section 5336(h) shall
                          be apportioned among eligible States under a
                          formula to be established by the Secretary. Such
                          formula shall take into account fixed guideway
                          vehicle revenue miles,

    [[Page 126 STAT. 713]]

                          fixed guideway route miles, and fixed guideway
                          vehicle passenger miles attributable to all rail
                          fixed guideway systems not subject to regulation
                          by the Federal Railroad Administration within each
                          eligible State.
                              ``(ii) Administrative requirements.--Grant
                          funds apportioned to States under this paragraph
                          shall be subject to uniform administrative
                          requirements for grants and cooperative agreements
                          to State and local governments under part 18 of
                          title 49, Code of Federal Regulations, and shall
                          be subject to the requirements of this chapter as
                          the Secretary determines appropriate.
                        ``(C) Government share.--
                              ``(i) In general.--The Government share of the
                          reasonable cost of a State safety oversight
                          program developed or carried out using a grant
                          under this paragraph shall be 80 percent.
                              ``(ii) In-kind contributions.--Any calculation
                          of the non-Government share of a State safety
                          oversight program shall include in-kind
                          contributions by an eligible State.
                              ``(iii) Non-government share.--The non-
                          Government share of the cost of a State safety
                          oversight program developed or carried out using a
                          grant under this paragraph may not be met by--
                                        ``(I) any Federal funds;
                                        ``(II) any funds received from a
                                    public transportation agency; or
                                        ``(III) any revenues earned by a
                                    public transportation agency.
                              ``(iv) Safety training program.--Recipients of
                          funds made available to carry out sections 5307
                          and 5311 may use not more than 0.5 percent of
                          their formula funds to pay not more than 80
                          percent of the cost of participation in the public
                          transportation safety certification training
                          program established under subsection (c), by an
                          employee of a State safety oversight agency or a
                          recipient who is directly responsible for safety
                          oversight.
                ``(7) Certification process.--
                        ``(A) <<NOTE: Deadline. Determination.>> In
                    general.--Not later than 1 year after the date of
                    enactment of the Federal Public Transportation Act of
                    2012, the Secretary shall determine whether or not each
                    State safety oversight program meets the requirements of
                    this subsection and the State safety oversight program
                    is adequate to promote the purposes of this section.
                        ``(B) Issuance of certifications and denials.--The
                    Secretary shall issue a certification to each eligible
                    State that the Secretary determines under subparagraph
                    (A) adequately meets the requirements of this
                    subsection, and shall issue a denial of certification to
                    each eligible State that the Secretary determines under
                    subparagraph (A) does not adequately meet the
                    requirements of this subsection.

    [[Page 126 STAT. 714]]

                        ``(C) <<NOTE: Notification.>> Disapproval.--If the
                    Secretary determines that a State safety oversight
                    program does not meet the requirements of this
                    subsection and denies certification, the Secretary shall
                    transmit to the eligible State a written explanation and
                    allow the eligible State to modify and resubmit the
                    State safety oversight program for approval.
                        ``(D) Failure to correct.--If the Secretary
                    determines that a modification by an eligible State of
                    the State safety oversight program is not sufficient to
                    certify the program, the Secretary--
                              ``(i) <<NOTE: Notification.>> shall notify the
                          Governor of the eligible State of such denial of
                          certification and failure to adequately modify the
                          program, and shall request that the Governor take
                          all possible actions to correct deficiencies in
                          the program to ensure the certification of the
                          program; and
                              ``(ii) may--
                                        ``(I) withhold funds available under
                                    paragraph (6) in an amount determined by
                                    the Secretary;
                                        ``(II) withhold not more than 5
                                    percent of the amount required to be
                                    appropriated for use in a State or
                                    urbanized area in the State under
                                    section 5307 of this title, until the
                                    State safety oversight program has been
                                    certified; or
                                        ``(III) require fixed guideway
                                    public transportation systems under such
                                    State safety oversight program to
                                    provide up to 100 percent of Federal
                                    assistance made available under this
                                    chapter only for safety-related
                                    improvements on such systems, until the
                                    State safety oversight program has been
                                    certified.
                ``(8) Evaluation of program and annual report.--The
            Secretary shall continually evaluate the implementation of a
            State safety oversight program by a State safety oversight
            agency, and shall submit on or before July 1 of each year to the
            Committee on Banking, Housing, and Urban Affairs of the Senate
            and the Committee on Transportation and Infrastructure of the
            House of Representatives a report on--
                        ``(A) the amount of funds apportioned to each
                    eligible State; and
                        ``(B) the certification status of each State safety
                    oversight program, including what steps a State program
                    that has been denied certification must take in order to
                    be certified.
                ``(9) Federal oversight.--The Secretary shall--
                        ``(A) oversee the implementation of each State
                    safety oversight program under this subsection;
                        ``(B) <<NOTE: Audits.>> audit the operations of each
                    State safety oversight agency at least once triennially;
                    and
                        ``(C) <<NOTE: Regulations.>> issue rules to carry
                    out this subsection.

        ``(f) Authority of Secretary.--In carrying out this section, the
    Secretary may--
                ``(1) conduct inspections, investigations, audits,
            examinations, and testing of the equipment, facilities, rolling
            stock, and operations of the public transportation system of a
            recipient;

    [[Page 126 STAT. 715]]

                ``(2) make reports and issue directives with respect to the
            safety of the public transportation system of a recipient;
                ``(3) <<NOTE: Determination.>> in conjunction with an
            accident investigation or an investigation into a pattern or
            practice of conduct that negatively affects public safety, issue
            a subpoena to, and take the deposition of, any employee of a
            recipient or a State safety oversight agency, if--
                        ``(A) before the issuance of the subpoena, the
                    Secretary requests a determination by the Attorney
                    General of the United States as to whether the subpoena
                    will interfere with an ongoing criminal investigation;
                    and
                        ``(B) the Attorney General--
                              ``(i) determines that the subpoena will not
                          interfere with an ongoing criminal investigation;
                          or
                              ``(ii) <<NOTE: Time period.>> fails to make a
                          determination under clause (i) before the date
                          that is 30 days after the date on which the
                          Secretary makes a request under subparagraph (A);
                ``(4) require the production of documents by, and prescribe
            recordkeeping and reporting requirements for, a recipient or a
            State safety oversight agency;
                ``(5) investigate public transportation accidents and
            incidents and provide guidance to recipients regarding
            prevention of accidents and incidents;
                ``(6) at reasonable times and in a reasonable manner, enter
            and inspect equipment, facilities, rolling stock, operations,
            and relevant records of the public transportation system of a
            recipient; and
                ``(7) issue rules to carry out this section.

        ``(g) Enforcement Actions.--
                ``(1) Types of enforcement actions.--The Secretary may take
            enforcement action against an eligible State, as defined in
            subsection (e), that does not comply with Federal law with
            respect to the safety of the public transportation system,
            including--
                        ``(A) issuing directives;
                        ``(B) requiring more frequent oversight of the
                    recipient by a State safety oversight agency or the
                    Secretary;
                        ``(C) imposing more frequent reporting requirements;
                    and
                        ``(D) requiring that any Federal financial
                    assistance provided under this chapter be spent on
                    correcting safety deficiencies identified by the
                    Secretary or the State safety oversight agency before
                    such funds are spent on other projects.
                ``(2) Use or withholding of funds.--
                        ``(A) In general.--The Secretary may require the use
                    of funds in accordance with paragraph (1)(D) only if the
                    Secretary finds that a recipient is engaged in a pattern
                    or practice of serious safety violations or has
                    otherwise refused to comply with Federal law relating to
                    the safety of the public transportation system.
                        ``(B) Notice.--Before withholding funds from a
                    recipient, the Secretary shall provide to the
                    recipient--
                              ``(i) written notice of a violation and the
                          amount proposed to be withheld; and

    [[Page 126 STAT. 716]]

                              ``(ii) a reasonable period of time within
                          which the recipient may address the violation or
                          propose and initiate an alternative means of
                          compliance that the Secretary determines is
                          acceptable.

        ``(h) Cost-benefit Analysis.--
                ``(1) Analysis required.--In carrying out this section, the
            Secretary shall take into consideration the costs and benefits
            of each action the Secretary proposes to take under this
            section.
                ``(2) Waiver.--The Secretary may waive the requirement under
            this subsection if the Secretary determines that such a waiver
            is in the public interest.

        ``(i) Consultation by the Secretary of Homeland Security.--The
    Secretary of Homeland Security shall consult with the Secretary of
    Transportation before the Secretary of Homeland Security issues a rule
    or order that the Secretary of Transportation determines affects the
    safety of public transportation design, construction, or operations.
        ``(j) Actions Under State Law.--
                ``(1) Rule of construction.--Nothing in this section shall
            be construed to preempt an action under State law seeking
            damages for personal injury, death, or property damage alleging
            that a party has failed to comply with--
                        ``(A) a Federal standard of care established by a
                    regulation or order issued by the Secretary under this
                    section; or
                        ``(B) its own program, rule, or standard that it
                    created pursuant to a rule or order issued by the
                    Secretary.
                ``(2) <<NOTE: Applicability.>> Effective date.--This
            subsection shall apply to any cause of action under State law
            arising from an event or activity occurring on or after the date
            of enactment of the Federal Public Transportation Act of 2012.
                ``(3) Jurisdiction.--Nothing in this section shall be
            construed to create a cause of action under Federal law on
            behalf of an injured party or confer Federal question
            jurisdiction for a State law cause of action.

        ``(k) National Public Transportation Safety Report.--Not later than
    3 years after the date of enactment of the Federal Public Transportation
    Act of 2012, the Secretary shall submit to the Committee on Banking,
    Housing, and Urban Affairs of the Senate and the Committee on
    Transportation and Infrastructure of the House of Representatives a
    report that--
                ``(1) analyzes public transportation safety trends among the
            States and documents the most effective safety programs
            implemented using grants under this section; and
                ``(2) describes the effect on public transportation safety
            of activities carried out using grants under this section.''.

        (b) Bus Safety Study.--
                (1) Definition.--In this subsection, the term ``highway
            route'' means a route where 50 percent or more of the route is
            on roads having a speed limit of more than 45 miles per hour.
                (2) <<NOTE: Deadline. Reports.>> Study.--Not later than 180
            days after the date of enactment of this Act, the Secretary of
            Transportation shall submit to the Committee on Banking,
            Housing, and Urban Affairs of the Senate and the Committee on
            Transportation and Infrastructure of the House of
            Representatives a report that--

    [[Page 126 STAT. 717]]

                        (A) examines the safety of public transportation
                    buses that travel on highway routes;
                        (B) examines laws and regulations that apply to
                    commercial over-the-road buses; and
                        (C) makes recommendations as to whether additional
                    safety measures should be required for public
                    transportation buses that travel on highway routes.
    SEC. 20022. ALCOHOL AND CONTROLLED SUBSTANCES TESTING.

        Section 5331 of title 49, United States Code, is amended by striking
    subsection (g) and inserting the following:
        ``(g) Conditions on Federal Assistance.--
                ``(1) <<NOTE: Regulations.>> Ineligibility for assistance.--
            A person that receives funds under this chapter is not eligible
            for financial assistance under section 5307, 5309, or 5311 of
            this title if the person is required, under regulations the
            Secretary prescribes under this section, to establish a program
            of alcohol and controlled substances testing and does not
            establish the program in accordance with this section.
                ``(2) Additional remedies.--If the Secretary determines that
            a person that receives funds under this chapter is not in
            compliance with regulations prescribed under this section, the
            Secretary may bar the person from receiving Federal transit
            assistance in an amount the Secretary considers appropriate.''.
    SEC. 20023. NONDISCRIMINATION.

        (a) Amendments.--Section 5332 of title 49, United States Code, is
    amended--
                (1) in subsection (b)--
                        (A) by striking ``creed'' and inserting
                    ``religion''; and
                        (B) by inserting ``disability,'' after ``sex,''; and
                (2) in subsection (d)(3), by striking ``and'' and inserting
            ``or''.

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

    [[Page 126 STAT. 718]]

                        (B) recommendations for improvements if the
                    Comptroller General determines that improvements are
                    necessary; and
                        (C) information upon which the evaluation under
                    paragraph (1) is based.
    SEC. 20024. ADMINISTRATIVE PROVISIONS.

        Section 5334 of title 49, United States Code, is amended--
                (1) in subsection (a)(1), by striking ``under sections 5307
            and 5309-5311 of this title'' and inserting ``that receives
            Federal financial assistance under this chapter'';
                (2) in subsection (b)(1)--
                        (A) by inserting after ``emergency,'' the following:
                    ``or for purposes of establishing and enforcing a
                    program to improve the safety of public transportation
                    systems in the United States as described in section
                    5329,''; and
                        (B) by striking ``chapter, nor may the Secretary''
                    and inserting ``chapter. The Secretary may not'';
                (3) in subsection (c)(4), by striking ``section (except
            subsection (i)) and sections 5318(e), 5323(a)(2), 5325(a),
            5325(b), and 5325(f)'' and inserting ``subsection'';
                (4) in subsection (h)(3), by striking ``another'' and
            inserting ``any other'';
                (5) in subsection (i)(1), by striking ``title 23 shall'' and
            inserting ``title 23 may'';
                (6) by striking subsection (j); and
                (7) by redesignating subsections (k) and (l) as subsections
            (j) and (k), respectively.
    SEC. 20025. NATIONAL TRANSIT DATABASE.

        (a) Amendments.--Section 5335 of title 49, United States Code, is
    amended--
                (1) in subsection (a), by striking ``public transportation
            financial and operating information'' and inserting ``public
            transportation financial, operating, and asset condition
            information''; and
                (2) by adding at the end the following:

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

    [[Page 126 STAT. 719]]

    SEC. 20026. APPORTIONMENT OF APPROPRIATIONS FOR FORMULA GRANTS.

        Section 5336 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5336. Apportionment of appropriations for formula grants

        ``(a) Based on Urbanized Area Population.--Of the amount apportioned
    under subsection (h)(4) to carry out section 5307--
                ``(1) 9.32 percent shall be apportioned each fiscal year
            only in urbanized areas with a population of less than 200,000
            so that each of those areas is entitled to receive an amount
            equal to--
                        ``(A) 50 percent of the total amount apportioned
                    multiplied by a ratio equal to the population of the
                    area divided by the total population of all urbanized
                    areas with populations of less than 200,000 as shown in
                    the most recent decennial census; and
                        ``(B) 50 percent of the total amount apportioned
                    multiplied by a ratio for the area based on population
                    weighted by a factor, established by the Secretary, of
                    the number of inhabitants in each square mile; and
                ``(2) 90.68 percent shall be apportioned each fiscal year
            only in urbanized areas with populations of at least 200,000 as
            provided in subsections (b) and (c) of this section.

        ``(b) Based on Fixed Guideway Vehicle Revenue Miles, Directional
    Route Miles, and Passenger Miles.--(1) In this subsection, `fixed
    guideway vehicle revenue miles' and `fixed guideway directional route
    miles' include passenger ferry operations directly or under contract by
    the designated recipient.
        ``(2) Of the amount apportioned under subsection (a)(2) of this
    section, 33.29 percent shall be apportioned as follows:
                ``(A) 95.61 percent of the total amount apportioned under
            this subsection shall be apportioned so that each urbanized area
            with a population of at least 200,000 is entitled to receive an
            amount equal to--
                        ``(i) 60 percent of the 95.61 percent apportioned
                    under this subparagraph multiplied by a ratio equal to
                    the number of fixed guideway vehicle revenue miles
                    attributable to the area, as established by the
                    Secretary, divided by the total number of all fixed
                    guideway vehicle revenue miles attributable to all
                    areas; and
                        ``(ii) 40 percent of the 95.61 percent apportioned
                    under this subparagraph multiplied by a ratio equal to
                    the number of fixed guideway directional route miles
                    attributable to the area, established by the Secretary,
                    divided by the total number of all fixed guideway
                    directional route miles attributable to all areas.
            An urbanized area with a population of at least 750,000 in which
            commuter rail transportation is provided shall receive at least
            .75 percent of the total amount apportioned under this
            subparagraph.
                ``(B) 4.39 percent of the total amount apportioned under
            this subsection shall be apportioned so that each urbanized area
            with a population of at least 200,000 is entitled to receive an
            amount equal to--
                        ``(i) the number of fixed guideway vehicle passenger
                    miles traveled multiplied by the number of fixed
                    guideway

    [[Page 126 STAT. 720]]

                    vehicle passenger miles traveled for each dollar of
                    operating cost in an area; divided by
                        ``(ii) the total number of fixed guideway vehicle
                    passenger miles traveled multiplied by the total number
                    of fixed guideway vehicle passenger miles traveled for
                    each dollar of operating cost in all areas.
            An urbanized area with a population of at least 750,000 in which
            commuter rail transportation is provided shall receive at least
            .75 percent of the total amount apportioned under this
            subparagraph.
                ``(C) Under subparagraph (A) of this paragraph, fixed
            guideway vehicle revenue or directional route miles, and
            passengers served on those miles, in an urbanized area with a
            population of less than 200,000, where the miles and passengers
            served otherwise would be attributable to an urbanized area with
            a population of at least 1,000,000 in an adjacent State, are
            attributable to the governmental authority in the State in which
            the urbanized area with a population of less than 200,000 is
            located. The authority is deemed an urbanized area with a
            population of at least 200,000 if the authority makes a contract
            for the service.
                ``(D) A recipient's apportionment under subparagraph (A)(i)
            of this paragraph may not be reduced if the recipient, after
            satisfying the Secretary that energy or operating efficiencies
            would be achieved, reduces vehicle revenue miles but provides
            the same frequency of revenue service to the same number of
            riders.
                ``(E) For purposes of subparagraph (A) and section
            5337(c)(3), the Secretary shall deem to be attributable to an
            urbanized area not less than 22.27 percent of the fixed guideway
            vehicle revenue miles or fixed guideway directional route miles
            in the public transportation system of a recipient that are
            located outside the urbanized area for which the recipient
            receives funds, in addition to the fixed guideway vehicle
            revenue miles or fixed guideway directional route miles of the
            recipient that are located inside the urbanized area.

        ``(c) Based on Bus Vehicle Revenue Miles and Passenger Miles.--Of
    the amount apportioned under subsection (a)(2) of this section, 66.71
    percent shall be apportioned as follows:
                ``(1) 90.8 percent of the total amount apportioned under
            this subsection shall be apportioned as follows:
                        ``(A) 73.39 percent of the 90.8 percent apportioned
                    under this paragraph shall be apportioned so that each
                    urbanized area with a population of at least 1,000,000
                    is entitled to receive an amount equal to--
                              ``(i) 50 percent of the 73.39 percent
                          apportioned under this subparagraph multiplied by
                          a ratio equal to the total bus vehicle revenue
                          miles operated in or directly serving the
                          urbanized area divided by the total bus vehicle
                          revenue miles attributable to all areas;
                              ``(ii) 25 percent of the 73.39 percent
                          apportioned under this subparagraph multiplied by
                          a ratio equal to the population of the area
                          divided by the total population of all areas, as
                          shown in the most recent decennial census; and

    [[Page 126 STAT. 721]]

                              ``(iii) 25 percent of the 73.39 percent
                          apportioned under this subparagraph multiplied by
                          a ratio for the area based on population weighted
                          by a factor, established by the Secretary, of the
                          number of inhabitants in each square mile.
                        ``(B) 26.61 percent of the 90.8 percent apportioned
                    under this paragraph shall be apportioned so that each
                    urbanized area with a population of at least 200,000 but
                    not more than 999,999 is entitled to receive an amount
                    equal to--
                              ``(i) 50 percent of the 26.61 percent
                          apportioned under this subparagraph multiplied by
                          a ratio equal to the total bus vehicle revenue
                          miles operated in or directly serving the
                          urbanized area divided by the total bus vehicle
                          revenue miles attributable to all areas;
                              ``(ii) 25 percent of the 26.61 percent
                          apportioned under this subparagraph multiplied by
                          a ratio equal to the population of the area
                          divided by the total population of all areas, as
                          shown by the most recent decennial census; and
                              ``(iii) 25 percent of the 26.61 percent
                          apportioned under this subparagraph multiplied by
                          a ratio for the area based on population weighted
                          by a factor, established by the Secretary, of the
                          number of inhabitants in each square mile.
                ``(2) 9.2 percent of the total amount apportioned under this
            subsection shall be apportioned so that each urbanized area with
            a population of at least 200,000 is entitled to receive an
            amount equal to--
                        ``(A) the number of bus passenger miles traveled
                    multiplied by the number of bus passenger miles traveled
                    for each dollar of operating cost in an area; divided by
                        ``(B) the total number of bus passenger miles
                    traveled multiplied by the total number of bus passenger
                    miles traveled for each dollar of operating cost in all
                    areas.

        ``(d) <<NOTE: Deadline.>> Date of Apportionment.--The Secretary
    shall--
                ``(1) apportion amounts appropriated under section
            5338(a)(2)(C) of this title to carry out section 5307 of this
            title not later than the 10th day after the date the amounts are
            appropriated or October 1 of the fiscal year for which the
            amounts are appropriated, whichever is later; and
                ``(2) <<NOTE: Publication.>> publish apportionments of the
            amounts, including amounts attributable to each urbanized area
            with a population of more than 50,000 and amounts attributable
            to each State of a multistate urbanized area, on the
            apportionment date.

        ``(e) Amounts Not Apportioned to Designated Recipients.--The
    Governor of a State may expend in an urbanized area with a population of
    less than 200,000 an amount apportioned under this section that is not
    apportioned to a designated recipient, as defined in section 5302(4).
        ``(f) Transfers of Apportionments.--(1) The Governor of a State may
    transfer any part of the State's apportionment under subsection (a)(1)
    of this section to supplement amounts apportioned to the State under
    section 5311(c)(3). <<NOTE: Consultation.>> The Governor may make a
    transfer only after consulting with responsible local officials and

    [[Page 126 STAT. 722]]

    publicly owned operators of public transportation in each area for which
    the amount originally was apportioned under this section.

        ``(2) The Governor of a State may transfer any part of the State's
    apportionment under section 5311(c)(3) to supplement amounts apportioned
    to the State under subsection (a)(1) of this section.
        ``(3) <<NOTE: Time period.>> The Governor of a State may use
    throughout the State amounts of a State's apportionment remaining
    available for obligation at the beginning of the 90-day period before
    the period of the availability of the amounts expires.

        ``(4) A designated recipient for an urbanized area with a population
    of at least 200,000 may transfer a part of its apportionment under this
    section to the Governor of a State. The Governor shall distribute the
    transferred amounts to urbanized areas under this section.
        ``(5) <<NOTE: Applicability.>> Capital and operating assistance
    limitations applicable to the original apportionment apply to amounts
    transferred under this subsection.

        ``(g) Period of Availability to Recipients.--An amount apportioned
    under this section may be obligated by the recipient for 5 years after
    the fiscal year in which the amount is apportioned. Not later than
    30 <<NOTE: Deadline.>> days after the end of the 5-year period, an
    amount that is not obligated at the end of that period shall be added to
    the amount that may be apportioned under this section in the next fiscal
    year.

        ``(h) Apportionments.--Of the amounts made available for each fiscal
    year under section 5338(a)(2)(C)--
                ``(1) $30,000,000 shall be set aside to carry out section
            5307(h);
                ``(2) 3.07 percent shall be apportioned to urbanized areas
            in accordance with subsection (j);
                ``(3) of amounts not apportioned under paragraphs (1) and
            (2), 1.5 percent shall be apportioned to urbanized areas with
            populations of less than 200,000 in accordance with subsection
            (i);
                ``(4) 0.5 percent shall be apportioned to eligible States
            for State safety oversight program grants in accordance with
            section 5329(e)(6); and
                ``(5) any amount not apportioned under paragraphs (1), (2),
            (3), and (4) shall be apportioned to urbanized areas in
            accordance with subsections (a) through (c).

        ``(i) Small Transit Intensive Cities Formula.--
                ``(1) Definitions.--In this subsection, the following
            definitions apply:
                        ``(A) Eligible area.--The term `eligible area' means
                    an urbanized area with a population of less than 200,000
                    that meets or exceeds in one or more performance
                    categories the industry average for all urbanized areas
                    with a population of at least 200,000 but not more than
                    999,999, as determined by the Secretary in accordance
                    with subsection (c)(2).
                        ``(B) Performance category.--The term `performance
                    category' means each of the following:
                              ``(i) Passenger miles traveled per vehicle
                          revenue mile.
                              ``(ii) Passenger miles traveled per vehicle
                          revenue hour.

    [[Page 126 STAT. 723]]

                              ``(iii) Vehicle revenue miles per capita.
                              ``(iv) Vehicle revenue hours per capita.
                              ``(v) Passenger miles traveled per capita.
                              ``(vi) Passengers per capita.
                ``(2) Apportionment.--
                        ``(A) Apportionment formula.--The amount to be
                    apportioned under subsection (h)(3) shall be apportioned
                    among eligible areas in the ratio that--
                              ``(i) the number of performance categories for
                          which each eligible area meets or exceeds the
                          industry average in urbanized areas with a
                          population of at least 200,000 but not more than
                          999,999; bears to
                              ``(ii) the aggregate number of performance
                          categories for which all eligible areas meet or
                          exceed the industry average in urbanized areas
                          with a population of at least 200,000 but not more
                          than 999,999.
                        ``(B) Data used in formula.--The Secretary shall
                    calculate apportionments under this subsection for a
                    fiscal year using data from the national transit
                    database used to calculate apportionments for that
                    fiscal year under this section.

        ``(j) Apportionment Formula.--The amounts apportioned under
    subsection (h)(2) shall be apportioned among urbanized areas as follows:
                ``(1) 75 percent of the funds shall be apportioned among
            designated recipients for urbanized areas with a population of
            200,000 or more in the ratio that--
                        ``(A) the number of eligible low-income individuals
                    in each such urbanized area; bears to
                        ``(B) the number of eligible low-income individuals
                    in all such urbanized areas.
                ``(2) 25 percent of the funds shall be apportioned among
            designated recipients for urbanized areas with a population of
            less than 200,000 in the ratio that--
                        ``(A) the number of eligible low-income individuals
                    in each such urbanized area; bears to
                        ``(B) the number of eligible low-income individuals
                    in all such urbanized areas.''.
    SEC. 20027. STATE OF GOOD REPAIR GRANTS.

        Section 5337 of title 49, United States Code, is amended to read as
    follows:
    ``Sec. 5337. State of good repair grants

        ``(a) Definitions.--In this section, the following definitions shall
    apply:
                ``(1) Fixed guideway.--The term `fixed guideway' means a
            public transportation facility--
                        ``(A) using and occupying a separate right-of-way
                    for the exclusive use of public transportation;
                        ``(B) using rail;
                        ``(C) using a fixed catenary system;
                        ``(D) for a passenger ferry system; or
                        ``(E) for a bus rapid transit system.
                ``(2) State.--The term `State' means the 50 States, the
            District of Columbia, and Puerto Rico.

    [[Page 126 STAT. 724]]

                ``(3) State of good repair.--The term `state of good repair'
            has the meaning given that term by the Secretary, by rule, under
            section 5326(b).
                ``(4) Transit asset management plan.--The term `transit
            asset management plan' means a plan developed by a recipient of
            funding under this chapter that--
                        ``(A) includes, at a minimum, capital asset
                    inventories and condition assessments, decision support
                    tools, and investment prioritization; and
                        ``(B) the recipient certifies that the recipient
                    complies with the rule issued under section 5326(d).

        ``(b) General Authority.--
                ``(1) Eligible projects.--The Secretary may make grants
            under this section to assist State and local governmental
            authorities in financing capital projects to maintain public
            transportation systems in a state of good repair, including
            projects to replace and rehabilitate--
                        ``(A) rolling stock;
                        ``(B) track;
                        ``(C) line equipment and structures;
                        ``(D) signals and communications;
                        ``(E) power equipment and substations;
                        ``(F) passenger stations and terminals;
                        ``(G) security equipment and systems;
                        ``(H) maintenance facilities and equipment;
                        ``(I) operational support equipment, including
                    computer hardware and software;
                        ``(J) development and implementation of a transit
                    asset management plan; and
                        ``(K) other replacement and rehabilitation projects
                    the Secretary determines appropriate.
                ``(2) Inclusion in plan.--A recipient shall include a
            project carried out under paragraph (1) in the transit asset
            management plan of the recipient upon completion of the plan.

        ``(c) High Intensity Fixed Guideway State of Good Repair Formula.--
                ``(1) In general.--Of the amount authorized or made
            available under section 5338(a)(2)(I), 97.15 percent shall be
            apportioned to recipients in accordance with this subsection.
                ``(2) Area share.--
                        ``(A) In general.--50 percent of the amount
                    described in paragraph (1) shall be apportioned for
                    fixed guideway systems in accordance with this
                    paragraph.
                        ``(B) Share.--A recipient shall receive an amount
                    equal to the amount described in subparagraph (A),
                    multiplied by the amount the recipient would have
                    received under this section, as in effect for fiscal
                    year 2011, if the amount had been calculated in
                    accordance with section 5336(b)(1) and using the
                    definition of the term `fixed guideway' under subsection
                    (a) of this section, as such sections are in effect on
                    the day after the date of enactment of the Federal
                    Public Transportation Act of 2012, and divided by the
                    total amount apportioned for all areas under this
                    section for fiscal year 2011.
                        ``(C) <<NOTE: Definition.>>  Recipient.--For
                    purposes of this paragraph, the term `recipient' means
                    an entity that received funding under this section, as
                    in effect for fiscal year 2011.

    [[Page 126 STAT. 725]]

                ``(3) Vehicle revenue miles and directional route miles.--
                        ``(A) In general.--50 percent of the amount
                    described in paragraph (1) shall be apportioned to
                    recipients in accordance with this paragraph.
                        ``(B) Vehicle revenue miles.--A recipient in an
                    urbanized area shall receive an amount equal to 60
                    percent of the amount described in subparagraph (A),
                    multiplied by the number of fixed guideway vehicle
                    revenue miles attributable to the urbanized area, as
                    established by the Secretary, divided by the total
                    number of all fixed guideway vehicle revenue miles
                    attributable to all urbanized areas.
                        ``(C) Directional route miles.--A recipient in an
                    urbanized area shall receive an amount equal to 40
                    percent of the amount described in subparagraph (A),
                    multiplied by the number of fixed guideway directional
                    route miles attributable to the urbanized area, as
                    established by the Secretary, divided by the total
                    number of all fixed guideway directional route miles
                    attributable to all urbanized areas.
                ``(4) Limitation.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), the share of the total amount
                    apportioned under this subsection that is apportioned to
                    an area under this subsection shall not decrease by more
                    than 0.25 percentage points compared to the share
                    apportioned to the area under this subsection in the
                    previous fiscal year.
                        ``(B) Special rule for fiscal year 2013.--In fiscal
                    year 2013, the share of the total amount apportioned
                    under this subsection that is apportioned to an area
                    under this subsection shall not decrease by more than
                    0.25 percentage points compared to the share that would
                    have been apportioned to the area under this section, as
                    in effect for fiscal year 2011, if the share had been
                    calculated using the definition of the term `fixed
                    guideway' under subsection (a) of this section, as in
                    effect on the day after the date of enactment of the
                    Federal Public Transportation Act of 2012.
                ``(5) Use of funds.--Amounts made available under this
            subsection shall be available for the exclusive use of fixed
            guideway projects.
                ``(6) Receiving apportionment.--
                        ``(A) In general.--Except as provided in
                    subparagraph (B), for an area with a fixed guideway
                    system, the amounts provided under this subsection shall
                    be apportioned to the designated recipient for the
                    urbanized area in which the system operates.
                        ``(B) Exception.--An area described in the amendment
                    made by section 3028(a) of the Transportation Equity Act
                    for the 21st Century (Public Law 105-178; 112 Stat. 366)
                    shall receive an individual apportionment under this
                    subsection.
                ``(7) <<NOTE: Deadline.>> Apportionment requirements.--For
            purposes of determining the number of fixed guideway vehicle
            revenue miles or fixed guideway directional route miles
            attributable to an urbanized area for a fiscal year under this
            subsection, only segments of fixed guideway systems placed in
            revenue

    [[Page 126 STAT. 726]]

            service not later than 7 years before the first day of the
            fiscal year shall be deemed to be attributable to an urbanized
            area.

        ``(d) High Intensity Motorbus State of Good Repair.--
                ``(1) Definition.--For purposes of this subsection, the term
            `high intensity motorbus' means public transportation that is
            provided on a facility with access for other high-occupancy
            vehicles.
                ``(2) Apportionment.--Of the amount authorized or made
            available under section 5338(a)(2)(I), 2.85 percent shall be
            apportioned to urbanized areas for high intensity motorbus state
            of good repair in accordance with this subsection.
                ``(3) Vehicle revenue miles and directional route miles.--
                        ``(A) In general.--The amount described in paragraph
                    (2) shall be apportioned to each area in accordance with
                    this paragraph.
                        ``(B) Vehicle revenue miles.--Each area shall
                    receive an amount equal to 60 percent of the amount
                    described in subparagraph (A), multiplied by the number
                    of high intensity motorbus vehicle revenue miles
                    attributable to the area, as established by the
                    Secretary, divided by the total number of all high
                    intensity motorbus vehicle revenue miles attributable to
                    all areas.
                        ``(C) Directional route miles.--Each area shall
                    receive an amount equal to 40 percent of the amount
                    described in subparagraph (A), multiplied by the number
                    of high intensity motorbus directional route miles
                    attributable to the area, as established by the
                    Secretary, divided by the total number of all high
                    intensity motorbus directional route miles attributable
                    to all areas.
                ``(4) <<NOTE: Deadline.>> Apportionment requirements.--For
            purposes of determining the number of high intensity motorbus
            vehicle revenue miles or high intensity motorbus directional
            route miles attributable to an urbanized area for a fiscal year
            under this subsection, only segments of high intensity motorbus
            systems placed in revenue service not later than 7 years before
            the first day of the fiscal year shall be deemed to be
            attributable to an urbanized area.''.
    SEC. 20028. AUTHORIZATIONS.

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

        ``(a) Formula Grants.--
                ``(1) In general.--There shall be available from the Mass
            Transit Account of the Highway Trust Fund to carry out sections
            5305, 5307, 5310, 5311, 5318, 5322(d), 5335, 5337, 5339, and
            5340, and section 20005(b) of the Federal Public Transportation
            Act of 2012, $8,478,000,000 for fiscal year 2013 and
            $8,595,000,000 for fiscal year 2014.
                ``(2) Allocation of funds.--Of the amounts made available
            under paragraph (1)--
                        ``(A) $126,900,000 for fiscal year 2013 and
                    $128,800,000 for fiscal year 2014 shall be available to
                    carry out section 5305;

    [[Page 126 STAT. 727]]

                        ``(B) $10,000,000 for each of fiscal years 2013 and
                    2014 shall be available to carry out section 20005(b) of
                    the Federal Public Transportation Act of 2012;
                        ``(C) $4,397,950,000 for fiscal year 2013 and
                    $4,458,650,000 for fiscal year 2014 shall be allocated
                    in accordance with section 5336 to provide financial
                    assistance for urbanized areas under section 5307;
                        ``(D) $254,800,000 for fiscal year 2013 and
                    $258,300,000 for fiscal year 2014 shall be available to
                    provide financial assistance for services for the
                    enhanced mobility of seniors and individuals with
                    disabilities under section 5310;
                        ``(E) $599,500,000 for fiscal year 2013 and
                    $607,800,000 for fiscal year 2014 shall be available to
                    provide financial assistance for rural areas under
                    section 5311, of which not less than $30,000,000 for
                    fiscal year 2013 and $30,000,000 for fiscal year 2014
                    shall be available to carry out section 5311(c)(1) and
                    $20,000,000 for fiscal year 2013 and $20,000,000 for
                    fiscal year 2014 shall be available to carry out section
                    5311(c)(2);
                        ``(F) $3,000,000 for each of fiscal years 2013 and
                    2014 shall be available for bus testing under section
                    5318;
                        ``(G) $5,000,000 for each of fiscal years 2013 and
                    2014 shall be available for the national transit
                    institute under section 5322(d);
                        ``(H) $3,850,000 for each of fiscal years 2013 and
                    2014 shall be available to carry out section 5335;
                        ``(I) $2,136,300,000 for fiscal year 2013 and
                    $2,165,900,000 for fiscal year 2014 shall be available
                    to carry out section 5337;
                        ``(J) $422,000,000 for fiscal year 2013 and
                    $427,800,000 for fiscal year 2014 shall be available for
                    the bus and bus facilities program under section 5339;
                    and
                        ``(K) $518,700,000 for fiscal year 2013 and
                    $525,900,000 for fiscal year 2014 shall be allocated in
                    accordance with section 5340 to provide financial
                    assistance for urbanized areas under section 5307 and
                    rural areas under section 5311.

        ``(b) Research, Development Demonstration and Deployment Projects.--
    There are authorized to be appropriated to carry out section 5312,
    $70,000,000 for fiscal year 2013 and $70,000,000 for fiscal year 2014.
        ``(c) Transit Cooperative Research Program.--There are authorized to
    be appropriated to carry out section 5313, $7,000,000 for fiscal year
    2013 and $7,000,000 for fiscal year 2014.
        ``(d) Technical Assistance and Standards Development.--There are
    authorized to be appropriated to carry out section 5314, $7,000,000 for
    fiscal year 2013 and $7,000,000 for fiscal year 2014.
        ``(e) Human Resources and Training.--There are authorized to be
    appropriated to carry out subsections (a), (b), (c), and (e) of section
    5322, $5,000,000 for fiscal year 2013 and $5,000,000 for fiscal year
    2014.
        ``(f) Emergency Relief Program.--There are authorized to be
    appropriated such sums as are necessary to carry out section 5324.
        ``(g) Capital Investment Grants.--There are authorized to be
    appropriated to carry out section 5309, $1,907,000,000 for fiscal year
    2013 and $1,907,000,000 for fiscal year 2014.

    [[Page 126 STAT. 728]]

        ``(h) Administration.--
                ``(1) In general.--There are authorized to be appropriated
            to carry out section 5334, $104,000,000 for fiscal year 2013 and
            $104,000,000 for fiscal year 2014.
                ``(2) Section 5329.--Of the amounts authorized to be
            appropriated under paragraph (1), not less than $5,000,000 shall
            be available to carry out section 5329.
                ``(3) Section 5326.--Of the amounts made available under
            paragraph (2), not less than $1,000,000 shall be available to
            carry out section 5326.

        ``(i) Oversight.--
                ``(1) In general.--Of the amounts made available to carry
            out this chapter for a fiscal year, the Secretary may use not
            more than the following amounts for the activities described in
            paragraph (2):
                        ``(A) 0.5 percent of amounts made available to carry
                    out section 5305.
                        ``(B) 0.75 percent of amounts made available to
                    carry out section 5307.
                        ``(C) 1 percent of amounts made available to carry
                    out section 5309.
                        ``(D) 1 percent of amounts made available to carry
                    out section 601 of the Passenger Rail Investment and
                    Improvement Act of 2008 (Public Law 110-432; 126 Stat.
                    4968).
                        ``(E) 0.5 percent of amounts made available to carry
                    out section 5310.
                        ``(F) 0.5 percent of amounts made available to carry
                    out section 5311.
                        ``(G) 0.75 percent of amounts made available to
                    carry out section 5337(c).
                ``(2) Activities.--The activities described in this
            paragraph are as follows:
                        ``(A) Activities to oversee the construction of a
                    major capital project.
                        ``(B) Activities to review and audit the safety and
                    security, procurement, management, and financial
                    compliance of a recipient or subrecipient of funds under
                    this chapter.
                        ``(C) Activities to provide technical assistance
                    generally, and to provide technical assistance to
                    correct deficiencies identified in compliance reviews
                    and audits carried out under this section.
                ``(3) <<NOTE: Contracts.>> Government share of costs.--The
            Government shall pay the entire cost of carrying out a contract
            under this subsection.
                ``(4) Availability of certain funds.--Funds made available
            under paragraph (1)(C) shall be made available to the Secretary
            before allocating the funds appropriated to carry out any
            project under a full funding grant agreement.

        ``(j) Grants as Contractual Obligations.--
                ``(1) Grants financed from highway trust fund.--A grant or
            contract that is approved by the Secretary and financed with
            amounts made available from the Mass Transit Account of the
            Highway Trust Fund pursuant to this section is a contractual
            obligation of the Government to pay the Government share of the
            cost of the project.

    [[Page 126 STAT. 729]]

                ``(2) Grants financed from general fund.--A grant or
            contract that is approved by the Secretary and financed with
            amounts appropriated in advance from the General Fund of the
            Treasury pursuant to this section is a contractual obligation of
            the Government to pay the Government share of the cost of the
            project only to the extent that amounts are appropriated for
            such purpose by an Act of Congress.

        ``(k) Availability of Amounts.--Amounts made available by or
    appropriated under this section shall remain available until
    expended.''.
    SEC. 20029. BUS AND BUS FACILITIES FORMULA GRANTS.

        (a) In General.--Section 5339 of title 49, United States Code, is
    amended to read as follows:
    ``Sec. 5339. Bus and bus facilities formula grants

        ``(a) General Authority.--The Secretary may make grants under this
    section to assist eligible recipients described in subsection (c)(1) in
    financing capital projects--
                ``(1) to replace, rehabilitate, and purchase buses and
            related equipment; and
                ``(2) to construct bus-related facilities.

        ``(b) Grant Requirements.--The requirements of section 5307 apply to
    recipients of grants made under this section.
        ``(c) Eligible Recipients and Subrecipients.--
                ``(1) Recipients.--Eligible recipients under this section
            are designated recipients that operate fixed route bus service
            or that allocate funding to fixed route bus operators.
                ``(2) Subrecipients.--A designated recipient that receives a
            grant under this section may allocate amounts of the grant to
            subrecipients that are public agencies or private nonprofit
            organizations engaged in public transportation.

        ``(d) Distribution of Grant Funds.--Funds allocated under section
    5338(a)(2)(J) shall be distributed as follows:
                ``(1) National distribution.--$65,500,000 shall be allocated
            to all States and territories, with each State receiving
            $1,250,000 and each territory receiving $500,000.
                ``(2) Distribution using population and service factors.--
            The remainder of the funds not otherwise distributed under
            paragraph (1) shall be allocated pursuant to the formula set
            forth in section 5336 other than subsection (b).

        ``(e) Transfers of Apportionments.--
                ``(1) Transfer flexibility for national distribution
            funds.--The Governor of a State may transfer any part of the
            State's apportionment under subsection (d)(1) to supplement
            amounts apportioned to the State under section 5311(c) of this
            title or amounts apportioned to urbanized areas under
            subsections (a) and (c) of section 5336 of this title.
                ``(2) Transfer flexibility for population and service
            factors funds.--The Governor of a State may expend in an
            urbanized area with a population of less than 200,000 any
            amounts apportioned under subsection (d)(2) that are not
            allocated to designated recipients in urbanized areas with a
            population of 200,000 or more.

        ``(f) Government's Share of Costs.--
                ``(1) Capital projects.--A grant for a capital project under
            this section shall be for 80 percent of the net capital costs

    [[Page 126 STAT. 730]]

            of the project. A recipient of a grant under this section may
            provide additional local matching amounts.
                ``(2) Remaining costs.--The remainder of the net project
            cost shall be provided--
                        ``(A) in cash from non-Government sources other than
                    revenues from providing public transportation services;
                        ``(B) from revenues derived from the sale of
                    advertising and concessions;
                        ``(C) from an undistributed cash surplus, a
                    replacement or depreciation cash fund or reserve, or new
                    capital; or
                        ``(D) from amounts received under a service
                    agreement with a State or local social service agency or
                    private social service organization.

        ``(g) <<NOTE: Deadline.>> Period of Availability to Recipients.--
    Amounts made available under this section may be obligated by a
    recipient for 3 years after the fiscal year in which the amount is
    apportioned. Not later than 30 <<NOTE: Deadline.>> days after the end of
    the 3-year period described in the preceding sentence, any amount that
    is not obligated on the last day of that period shall be added to the
    amount that may be apportioned under this section in the next fiscal
    year.

        ``(h) Definitions.--For purposes of this section:
                ``(1) The term `State' means a State of the United States.
                ``(2) The term `territory' means the District of Columbia,
            Puerto Rico, the Northern Mariana Islands, Guam, American Samoa,
            and the United States Virgin Islands.''.
    SEC. 20030. TECHNICAL AND CONFORMING AMENDMENTS.

        (a) Section 5305.--Section 5305 of title 49, United States Code, is
    amended--
                (1) in subsection (e)(1)(A), by striking ``sections 5304,
            5306, 5315, and 5322'' and inserting ``section 5304 and 5306'';
                (2) in subsection (f)--
                        (A) in the heading, by striking ``Government's'' and
                    inserting ``Government''; and
                        (B) by striking ``Government's'' and inserting
                    ``Government''; and
                (3) in subsection (g), by striking ``section 5338(c) for
            fiscal years 2005 through 2012'' and inserting ``section
            5338(a)(2)(A) for a fiscal year''.

        (b) Section 5313.--Section 5313(a) of title 49, United States Code,
    is amended--
                (1) in the first sentence, by striking ``subsections
            (a)(5)(C)(iii) and (d)(1) of section 5338'' and inserting
            section ``5338(c)''; and
                (2) in the second sentence, by striking ``of
            Transportation''.

        (c) Section 5319.--Section 5319 of title 49, United States Code, is
    amended, in the second sentence--
                (1) by striking ``sections 5307(e), 5309(h), and 5311(g) of
            this title'' and inserting ``sections 5307(d), 5309(l), and
            5311(g)''; and
                (2) by striking ``of the United States'' and inserting
            ``made by the''.

        (d) Section 5325.--Section 5325(b)(2)(A) of title 49, United States
    Code, is amended by striking ``title 48, Code of Federal Regulations
    (commonly known as the Federal Acquisition Regulation)'' and inserting
    ``the Federal Acquisition Regulation, or any successor thereto''.

    [[Page 126 STAT. 731]]

        (e) <<NOTE: Effective date. Repeal.>> Section 5330.--Effective 3
    years after the effective date of the final rules issued by the
    Secretary of Transportation under section 5329(e) of title 49, United
    States Code, as amended by this division, section 5330 of title 49,
    United States Code, is repealed.

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

        (j) Section 5335.--Section 5335(a) of title 49, United States Code,
    is amended by striking ``of Transportation''.
        (k) Analysis.--The analysis for chapter 53 of title 49, United
    States Code, is amended to read as follows:

    ``Sec.
    ``5301. Policies and purposes.
    ``5302. Definitions.

    [[Page 126 STAT. 732]]

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

       DIVISION C--TRANSPORTATION SAFETY AND SURFACE TRANSPORTATION POLICY

      TITLE I <<NOTE: Motor Vehicle and Highway Safety Improvement Act of
    2012.>> --MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012
    SEC. 31001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

        This title may be cited as the ``Motor Vehicle and Highway Safety
    Improvement Act of 2012'' or ``Mariah's Act''.
    SEC. 31002. <<NOTE: 23 USC 101 note.>> DEFINITION.

        In this title, the term ``Secretary'' means the Secretary of
    Transportation.

                           Subtitle A--Highway Safety

    SEC. 31101. AUTHORIZATION OF APPROPRIATIONS.

        (a) In General.--The following sums are authorized to be
    appropriated out of the Highway Trust Fund (other than the Mass Transit
    Account):

    [[Page 126 STAT. 733]]

                (1) Highway safety programs.--For carrying out section 402
            of title 23, United States Code--
                        (A) $235,000,000 for fiscal year 2013; and
                        (B) $235,000,000 for fiscal year 2014.
                (2) Highway safety research and development.--For carrying
            out section 403 of title 23, United States Code--
                        (A) $110,500,000 for fiscal year 2013; and
                        (B) $113,500,000 for fiscal year 2014.
                (3) National priority safety programs.--For carrying out
            section 405 of title 23, United States Code--
                        (A) $265,000,000 for fiscal year 2013; and
                        (B) $272,000,000 for fiscal year 2014.
                (4) National driver register.--For the National Highway
            Traffic Safety Administration to carry out chapter 303 of title
            49, United States Code--
                        (A) $5,000,000 for fiscal year 2013; and
                        (B) $5,000,000 for fiscal year 2014.
                (5) High visibility enforcement program.--For carrying out
            section 2009 of SAFETEA-LU (23 U.S.C. 402 note)--
                        (A) $29,000,000 for fiscal year 2013; and
                        (B) $29,000,000 for fiscal year 2014.
                (6) Administrative expenses.--For administrative and related
            operating expenses of the National Highway Traffic Safety
            Administration in carrying out chapter 4 of title 23, United
            States Code, and this subtitle--
                        (A) $25,500,000 for fiscal year 2013; and
                        (B) $25,500,000 for fiscal year 2014.

        (b) <<NOTE: 23 USC 401 note.>> Prohibition on Other Uses.--Except as
    otherwise provided in chapter 4 of title 23, United States Code, in this
    subtitle, and in the amendments made by this subtitle, the amounts made
    available from the Highway Trust Fund (other than the Mass Transit
    Account) for a program under such chapter--
                (1) shall only be used to carry out such program; and
                (2) may not be used by States or local governments for
            construction purposes.

        (c) Applicability of Title 23.--Except as otherwise provided in
    chapter 4 of title 23, United States Code, and in this subtitle, amounts
    made available under subsection (a) for fiscal years 2013 and 2014 shall
    be available for obligation in the same manner as if such funds were
    apportioned under chapter 1 of title 23, United States Code.
        (d) <<NOTE: Grants. 23 USC 402 note.>> Regulatory Authority.--Grants
    awarded under this subtitle shall be in accordance with regulations
    issued by the Secretary.

        (e) State Matching Requirements.--If a grant awarded under this
    subtitle requires a State to share in the cost, the aggregate of all
    expenditures for highway safety activities made during any fiscal year
    by the State and its political subdivisions (exclusive of Federal funds)
    for carrying out the grant (other than planning and administration)
    shall be available for the purpose of crediting the State during such
    fiscal year for the non-Federal share of the cost of any project under
    this subtitle (other than planning or administration) without regard to
    whether such expenditures were actually made in connection with such
    project.
        (f) Grant Application and Deadline.--To receive a grant under this
    subtitle, a State shall submit an application, and the Secretary shall
    establish a single deadline for such applications to enable the award of
    grants early in the next fiscal year.

    [[Page 126 STAT. 734]]

    SEC. 31102. HIGHWAY SAFETY PROGRAMS.

        (a) Programs Included.--Section 402(a) of title 23, United States
    Code, is amended to read as follows:
        ``(a) Program Required.--
                ``(1) In general.--Each State shall have a highway safety
            program, approved by the Secretary, that is designed to reduce
            traffic accidents and the resulting deaths, injuries, and
            property damage.
                ``(2) <<NOTE: Compliance.>> Uniform guidelines.--Programs
            required under paragraph (1) shall comply with uniform
            guidelines, promulgated by the Secretary and expressed in terms
            of performance criteria, that--
                        ``(A) include programs--
                              ``(i) to reduce injuries and deaths resulting
                          from motor vehicles being driven in excess of
                          posted speed limits;
                              ``(ii) to encourage the proper use of occupant
                          protection devices (including the use of safety
                          belts and child restraint systems) by occupants of
                          motor vehicles;
                              ``(iii) to reduce injuries and deaths
                          resulting from persons driving motor vehicles
                          while impaired by alcohol or a controlled
                          substance;
                              ``(iv) to prevent accidents and reduce
                          injuries and deaths resulting from accidents
                          involving motor vehicles and motorcycles;
                              ``(v) to reduce injuries and deaths resulting
                          from accidents involving school buses;
                              ``(vi) to reduce accidents resulting from
                          unsafe driving behavior (including aggressive or
                          fatigued driving and distracted driving arising
                          from the use of electronic devices in vehicles);
                          and
                              ``(vii) to improve law enforcement services in
                          motor vehicle accident prevention, traffic
                          supervision, and post-accident procedures;
                        ``(B) improve driver performance, including--
                              ``(i) driver education;
                              ``(ii) driver testing to determine proficiency
                          to operate motor vehicles; and
                              ``(iii) driver examinations (physical, mental,
                          and driver licensing);
                        ``(C) improve pedestrian performance and bicycle
                    safety;
                        ``(D) include provisions for--
                              ``(i) an effective record system of accidents
                          (including resulting injuries and deaths);
                              ``(ii) accident investigations to determine
                          the probable causes of accidents, injuries, and
                          deaths;
                              ``(iii) vehicle registration, operation, and
                          inspection; and
                              ``(iv) emergency services; and
                        ``(E) to the extent determined appropriate by the
                    Secretary, are applicable to federally administered
                    areas where a Federal department or agency controls the
                    highways or supervises traffic operations.''.

        (b) Administration of State Programs.--Section 402(b) of title 23,
    United States Code, is amended--
                (1) in paragraph (1)--

    [[Page 126 STAT. 735]]

                        (A) in subparagraph (D), by striking ``and'' at the
                    end;
                        (B) by redesignating subparagraph (E) as
                    subparagraph (F);
                        (C) by inserting after subparagraph (D) the
                    following:
                        ``(E) beginning on the first day of the first fiscal
                    year after the date of enactment of the Motor Vehicle
                    and Highway Safety Improvement Act of 2012 in which a
                    State submits its highway safety plan under subsection
                    (f), provide for a data-driven traffic safety
                    enforcement program to prevent traffic violations,
                    crashes, and crash fatalities and injuries in areas most
                    at risk for such incidents, to the satisfaction of the
                    Secretary;''; and
                        (D) in subparagraph (F), as redesignated--
                              (i) in clause (i), by inserting ``and high-
                          visibility law enforcement mobilizations
                          coordinated by the Secretary'' after
                          ``mobilizations'';
                              (ii) in clause (iii), by striking ``and'' at
                          the end;
                              (iii) in clause (iv), by striking the period
                          at the end and inserting ``; and''; and
                              (iv) by adding at the end the following:
                              ``(v) ensuring that the State will coordinate
                          its highway safety plan, data collection, and
                          information systems with the State strategic
                          highway safety plan (as defined in section
                          148(a)).''; and
                (2) by striking paragraph (3).

        (c) Approved Highway Safety Programs.--Section 402(c) of title 23,
    United States Code, is amended--
                (1) by striking ``(c) Funds authorized'' and inserting the
            following:

        ``(c) Use of Funds.--
                ``(1) In general.--Funds authorized'';
                (2) by striking ``Such funds'' and inserting the following:
                ``(2) Apportionment.--Except for amounts identified in
            section 403(f), funds described in paragraph (1)'';
                (3) by striking ``The Secretary shall not'' and all that
            follows through ``subsection, a highway safety program'' and
            inserting ``A highway safety program'';
                (4) by inserting ``A State may use the funds apportioned
            under this section, in cooperation with neighboring States, for
            highway safety programs or related projects that may confer
            benefits on such neighboring States.'' after ``in every
            State.'';
                (5) by striking ``50 per centum'' and inserting ``20
            percent''; and
                (6) by striking ``The Secretary shall promptly'' and all
            that follows and inserting the following:

            ``(3) <<NOTE: Determinations. Deadlines.>> Reapportionment.--The
            Secretary shall promptly apportion the funds withheld from a
            State's apportionment to the State if the Secretary approves the
            State's highway safety program or determines that the State has
            begun implementing an approved program, as appropriate, not
            later than July 31st of the fiscal year for which the funds were
            withheld. If the Secretary determines that the State did not
            correct its failure within such period, the Secretary shall
            reapportion the withheld funds to the other States in accordance
            with the formula specified in paragraph (2) not later than the
            last day of the fiscal year.
                ``(4) Automated traffic enforcement systems.--

    [[Page 126 STAT. 736]]

                        ``(A) Prohibition.--A State may not expend funds
                    apportioned to that State under this section to carry
                    out a program to purchase, operate, or maintain an
                    automated traffic enforcement system.
                        ``(B) Automated traffic enforcement system
                    defined.--In this paragraph, the term `automated traffic
                    enforcement system' means any camera which captures an
                    image of a vehicle for the purposes only of red light
                    and speed enforcement, and does not include hand held
                    radar and other devices operated by law enforcement
                    officers to make an on-the-scene traffic stop, issue a
                    traffic citation, or other enforcement action at the
                    time of the violation.''.

        (d) Use of Highway Safety Program Funds.--Section 402(g) of title
    23, United States Code, is amended to read as follows:
        ``(g) Savings Provision.--
                ``(1) In general.--Except as provided under paragraph (2),
            nothing in this section may be construed to authorize the
            appropriation or expenditure of funds for--
                        ``(A) highway construction, maintenance, or design
                    (other than design of safety features of highways to be
                    incorporated into guidelines); or
                        ``(B) any purpose for which funds are authorized
                    under section 403.
                ``(2) Demonstration projects.--A State may use funds made
            available to carry out this section to assist in demonstration
            projects carried out by the Secretary under section 403.''.

        (e) In General.--Section 402 of title 23, United States Code, is
    amended--
                (1) by striking subsections (k) and (m);
                (2) by redesignating subsections (i) and (j) as subsections
            (h) and (i), respectively; and
                (3) by redesignating subsection (l) as subsection (j).

        (f) Highway Safety Plan and Reporting Requirements.--Section 402 of
    title 23, United States Code, as amended by this section, is further
    amended by adding at the end the following:
        ``(k) Highway Safety Plan and Reporting Requirements.--
                ``(1) In general.--With respect to fiscal year 2014, and
            each fiscal year thereafter, the Secretary shall require each
            State, as a condition of the approval of the State's highway
            safety program for that fiscal year, to develop and submit to
            the Secretary for approval a highway safety plan that complies
            with the requirements under this subsection.
                ``(2) Timing.--Each State shall submit to the Secretary the
            highway safety plan not later than July 1st of the fiscal year
            preceding the fiscal year to which the plan applies.
                ``(3) Contents.--State highway safety plans submitted under
            paragraph (1) shall include--
                        ``(A) performance measures required by the Secretary
                    or otherwise necessary to support additional State
                    safety goals, including--
                              ``(i) documentation of current safety levels
                          for each performance measure;
                              ``(ii) quantifiable annual performance targets
                          for each performance measure; and

    [[Page 126 STAT. 737]]

                              ``(iii) a justification for each performance
                          target, that explains why each target is
                          appropriate and evidence-based;
                        ``(B) a strategy for programming funds apportioned
                    to the State under this section on projects and
                    activities that will allow the State to meet the
                    performance targets described in subparagraph (A);
                        ``(C) data and data analysis supporting the
                    effectiveness of proposed countermeasures;
                        ``(D) a description of any Federal, State, local, or
                    private funds that the State plans to use, in addition
                    to funds apportioned to the State under this section, to
                    carry out the strategy described in subparagraph (B);
                        ``(E) for the fiscal year preceding the fiscal year
                    to which the plan applies, a report on the State's
                    success in meeting State safety goals and performance
                    targets set forth in the previous year's highway safety
                    plan; and
                        ``(F) an application for any additional grants
                    available to the State under this chapter.
                ``(4) <<NOTE: Limitations.>> Performance measures.--For the
            first highway safety plan submitted under this subsection, the
            performance measures required by the Secretary under paragraph
            (2)(A) shall be limited to those developed by the National
            Highway Traffic Safety Administration and the Governor's Highway
            Safety Association and described in the report, `Traffic Safety
            Performance Measures for States and Federal Agencies' (DOT HS
            811 025). For subsequent highway safety plans, the Secretary
            shall coordinate with the Governor's Highway Safety Association
            in making revisions to the set of required performance measures.
                ``(5) Review of highway safety plans.--
                        ``(A) <<NOTE: Deadline.>> In general.--Not later
                    than 60 days after the date on which a State's highway
                    safety plan is received by the Secretary, the Secretary
                    shall review and approve or disapprove the plan.
                        ``(B) <<NOTE: Determinations.>> Approvals and
                    disapprovals.--
                              ``(i) Approvals.--The Secretary shall approve
                          a State's highway safety plan if the Secretary
                          determines that--
                                        ``(I) the plan and the performance
                                    targets contained in the plan are
                                    evidence-based and supported by data;
                                    and
                                        ``(II) the plan, once implemented,
                                    will allow the State to meet the State's
                                    performance targets.
                              ``(ii) Disapprovals.--The Secretary shall
                          disapprove a State's highway safety plan if the
                          Secretary determines that--
                                        ``(I) the plan and the performance
                                    targets contained in the plan are not
                                    evidence-based or supported by data; or
                                        ``(II) the plan does not provide for
                                    programming of funding in a manner
                                    sufficient to allow the State to meet
                                    the State's performance targets.
                        ``(C) Actions upon disapproval.--If the Secretary
                    disapproves a State's highway safety plan, the Secretary
                    shall--
                              ``(i) <<NOTE: Notification.>> inform the State
                          of the reasons for such disapproval; and

    [[Page 126 STAT. 738]]

                              ``(ii) require the State to resubmit the plan
                          with any modifications that the Secretary
                          determines to be necessary.
                        ``(D) <<NOTE: Deadline.>> Review of resubmitted
                    plans.--If the Secretary requires a State to resubmit a
                    highway safety plan, with modifications, the Secretary
                    shall review and approve or disapprove the modified plan
                    not later than 30 days after the date on which the
                    Secretary receives such plan.
                        ``(E) Public notice.--A State shall make the State's
                    highway safety plan, and decisions of the Secretary
                    concerning approval or disapproval of a revised plan,
                    available to the public.''.

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

    [[Page 126 STAT. 739]]

        (h) Biennial Report to Congress.--Section 402 of title 23, United
    States Code, as amended by this section, is further amended by adding at
    the end the following:
        ``(n) Biennial Report to Congress.--Not later than October 1, 2015,
    and biennially thereafter, the Secretary shall submit a report to the
    Committee on Transportation and Infrastructure of the House of
    Representatives and the Committee on Commerce, Science, and
    Transportation of the Senate that contains--
                ``(1) an evaluation of each State's performance with respect
            to the State's highway safety plan under subsection (k) and
            performance targets set by the States in such plans; and
                ``(2) such recommendations as the Secretary may have for
            improvements to activities carried out under subsection (k).''.
    SEC. 31103. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.

        Section 403 of title 23, United States Code, is amended--
                (1) by striking subsections (a) through (f) and inserting
            the following:

        ``(a) Defined Term.--In this section, the term `Federal laboratory'
    includes--
                ``(1) a government-owned, government-operated laboratory;
            and
                ``(2) a government-owned, contractor-operated laboratory.

        ``(b) General Authority.--
                ``(1) Research and development activities.--The Secretary
            may conduct research and development activities, including
            demonstration projects and the collection and analysis of
            highway and motor vehicle safety data and related information
            needed to carry out this section, with respect to--
                        ``(A) all aspects of highway and traffic safety
                    systems and conditions relating to--
                              ``(i) vehicle, highway, driver, passenger,
                          motorcyclist, bicyclist, and pedestrian
                          characteristics;
                              ``(ii) accident causation and investigations;
                              ``(iii) communications; and
                              ``(iv) emergency medical services, including
                          the transportation of the injured;
                        ``(B) human behavioral factors and their effect on
                    highway and traffic safety, including--
                              ``(i) driver education;
                              ``(ii) impaired driving; and
                              ``(iii) distracted driving;
                        ``(C) an evaluation of the effectiveness of
                    countermeasures to increase highway and traffic safety,
                    including occupant protection and alcohol- and drug-
                    impaired driving technologies and initiatives;
                        ``(D) the development of technologies to detect drug
                    impaired drivers;
                        ``(E) research on, evaluations of, and
                    identification of best practices related to driver
                    education programs (including driver education
                    curricula, instructor training and certification,
                    program administration, and delivery mechanisms) and
                    make recommendations for harmonizing driver education
                    and multistage graduated licensing systems; and
                        ``(F) the effect of State laws on any aspects,
                    activities, or programs described in subparagraphs (A)
                    through (E).

    [[Page 126 STAT. 740]]

                ``(2) Cooperation, grants, and contracts.--The Secretary may
            carry out this section--
                        ``(A) independently;
                        ``(B) in cooperation with other Federal departments,
                    agencies, and instrumentalities and Federal
                    laboratories;
                        ``(C) by entering into contracts, cooperative
                    agreements, and other transactions with the National
                    Academy of Sciences, any Federal laboratory, State or
                    local agency, authority, association, institution, or
                    person (as defined in chapter 1 of title 1); or
                        ``(D) by making grants to the National Academy of
                    Sciences, any Federal laboratory, State or local agency,
                    authority, association, institution, or person (as
                    defined in chapter 1 of title 1).

        ``(c) Collaborative Research and Development.--
                ``(1) In general.--To encourage innovative solutions to
            highway safety problems, stimulate voluntary improvements in
            highway safety, and stimulate the marketing of new highway
            safety related technology by private industry, the Secretary is
            authorized to carry out, on a cost-shared basis, collaborative
            research and development with--
                        ``(A) non-Federal entities, including State and
                    local governments, colleges, universities, corporations,
                    partnerships, sole proprietorships, organizations, and
                    trade associations that are incorporated or established
                    under the laws of any State or the United States; and
                        ``(B) Federal laboratories.
                ``(2) Agreements.--In carrying out this subsection, the
            Secretary may enter into cooperative research and development
            agreements (as defined in section 12 of the Stevenson-Wydler
            Technology Innovation Act of 1980 (15 U.S.C. 3710a)) in which
            the Secretary provides not more than 50 percent of the cost of
            any research or development project under this subsection.
                ``(3) Use of technology.--The research, development, or use
            of any technology pursuant to an agreement under this
            subsection, including the terms under which technology may be
            licensed and the resulting royalties may be distributed, shall
            be subject to the provisions of the Stevenson-Wydler Technology
            Innovation Act of 1980 (15 U.S.C. 3701 et seq.).

        ``(d) Title to Equipment.--In furtherance of the purposes set forth
    in section 402, the Secretary may vest title to equipment purchased for
    demonstration projects with funds authorized under this section to State
    or local agencies on such terms and conditions as the Secretary
    determines to be appropriate.
        ``(e) Prohibition on Certain Disclosures.--Any report of the
    National Highway Traffic Safety Administration, or of any officer,
    employee, or contractor of the National Highway Traffic Safety
    Administration, relating to any highway traffic accident or the
    investigation of such accident conducted pursuant to this chapter or
    chapter 301 may only be made available to the public in a manner that
    does not identify individuals.
        ``(f) Cooperative Research and Evaluation.--
                ``(1) Establishment and funding.--Notwithstanding the
            apportionment formula set forth in section 402(c)(2), $2,500,000
            of the total amount available for apportionment to the States
            for highway safety programs under subsection 402(c) in each
            fiscal year shall be available for expenditure by the Secretary,

    [[Page 126 STAT. 741]]

            acting through the Administrator of the National Highway Traffic
            Safety Administration, for a cooperative research and evaluation
            program to research and evaluate priority highway safety
            countermeasures.
                ``(2) Administration.--The program established under
            paragraph (1)--
                        ``(A) shall be administered by the Administrator of
                    the National Highway Traffic Safety Administration; and
                        ``(B) shall be jointly managed by the Governors
                    Highway Safety Association and the National Highway
                    Traffic Safety Administration.''; and
                (2) by adding at the end the following:

        ``(h) In-vehicle Alcohol Detection Device Research.--
                ``(1) In general.--The Administrator of the National Highway
            Traffic Safety Administration may carry out a collaborative
            research effort under chapter 301 of title 49 on in-vehicle
            technology to prevent alcohol-impaired driving.
                ``(2) Funding.--Funds provided under section 405 may be made
            to be used by the Secretary to conduct the research described in
            paragraph (1).
                ``(3) Privacy protection.--If the Administrator utilizes the
            authority under paragraph (1), the Administrator shall not
            develop requirements for any device or means of technology to be
            installed in an automobile intended for retail sale that records
            a driver's blood alcohol concentration.
                ``(4) Reports.--If the Administrator conducts the research
            authorized under paragraph (1), the Administrator shall submit
            an annual report to the Committee on Commerce, Science, and
            Transportation of the Senate, the Committee on Transportation
            and Infrastructure of the House of Representatives, and
            Committee on Science, Space, and Technology of the House of
            Representatives that--
                        ``(A) describes the progress made in carrying out
                    the collaborative research effort; and
                        ``(B) includes an accounting for the use of Federal
                    funds obligated or expended in carrying out that effort.
                ``(5) Definitions.--In this subsection:
                        ``(A) Alcohol-impaired driving.--The term `alcohol-
                    impaired driving' means the operation of a motor vehicle
                    (as defined in section 30102(a)(6) of title 49) by an
                    individual whose blood alcohol content is at or above
                    the legal limit.
                        ``(B) Legal limit.--The term `legal limit' means a
                    blood alcohol concentration of 0.08 percent or greater
                    (as set forth in section 163(a)) or such other
                    percentage limitation as may be established by
                    applicable Federal, State, or local law.''.
    SEC. 31104. NATIONAL DRIVER REGISTER.

        Section 30302(b) of title 49, United States Code, is amended by
    adding at the end the following: ``The Secretary shall make continual
    improvements to modernize the Register's data processing system.''.
    SEC. 31105. NATIONAL PRIORITY SAFETY PROGRAMS.

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

    [[Page 126 STAT. 742]]

    ``Sec. 405. National priority safety programs

        ``(a) General Authority.--Subject to the requirements of this
    section, the Secretary of Transportation shall manage programs to
    address national priorities for reducing highway deaths and injuries.
    Funds shall be allocated according to the priorities set forth in
    paragraphs (1) and (2).
                ``(1) Grants to states.--
                        ``(A) Occupant protection.--16 percent of the funds
                    provided under this section in each fiscal year shall be
                    allocated among States that adopt and implement
                    effective occupant protection programs to reduce highway
                    deaths and injuries resulting from individuals riding
                    unrestrained or improperly restrained in motor vehicles
                    (as described in subsection (b)).
                        ``(B) State traffic safety information system
                    improvements.--14.5 percent of the funds provided under
                    this section in each fiscal year shall be allocated
                    among States that meet the requirements of the State
                    traffic safety information system improvements (as
                    described in subsection (c)).
                        ``(C) Impaired driving countermeasures.--52.5
                    percent of the funds provided under this section in each
                    fiscal year shall be allocated among States that meet
                    the requirements of the impaired driving countermeasures
                    (as described in subsection (d)).
                        ``(D) Distracted driving.--8.5 percent of the funds
                    provided under this section in each fiscal year shall be
                    allocated among States that adopt and implement
                    effective laws to reduce distracted driving (as
                    described in subsection (e)).
                        ``(E) Motorcyclist safety.--1.5 percent of the funds
                    provided under this section in each fiscal year shall be
                    allocated among States that implement motorcyclist
                    safety programs (as described in subsection (f)).
                        ``(F) State graduated driver licensing laws.--5
                    percent of the funds provided under this section in each
                    fiscal year shall be allocated among States that adopt
                    and implement graduated driver licensing laws (as
                    described in subsection (g)).
                        ``(G) Transfers.--Notwithstanding subparagraphs (A)
                    through (F), the Secretary may reallocate, before the
                    last day of any fiscal year, any amounts remaining
                    available to carry out any of the activities described
                    in subsections (b) through (g) to increase the amount
                    made available to carry out any of the other activities
                    described in such subsections, or the amount made
                    available under section 402, in order to ensure, to the
                    maximum extent possible, that all such amounts are
                    obligated during such fiscal year.
                        ``(H) Maintenance of effort.--
                              ``(i) Requirements.--No grant may be made to a
                          State in any fiscal year under subsection (b),
                          (c), or (d) unless the State enters into such
                          agreements with the Secretary as the Secretary may
                          require to ensure that the State will maintain its
                          aggregate

    [[Page 126 STAT. 743]]

                          expenditures from all State and local sources for
                          programs described in those sections at or above
                          the average level of such expenditures in its 2
                          fiscal years preceding the date of enactment of
                          the Motor Vehicle and Highway Safety Improvement
                          Act of 2012.
                              ``(ii) Waiver.--Upon the request of a State,
                          the Secretary may waive or modify the requirements
                          under clause (i) for not more than 1 fiscal year
                          if the Secretary determines that such a waiver
                          would be equitable due to exceptional or
                          uncontrollable circumstances.
                ``(2) Other priority programs.--Funds provided under this
            section in each fiscal year may be used for research into
            technology to prevent alcohol-impaired driving (as described in
            subsection 403(h)).

        ``(b) Occupant Protection Grants.--
                ``(1) General authority.--Subject to the requirements under
            this subsection, the Secretary of Transportation shall award
            grants to States that adopt and implement effective occupant
            protection programs to reduce highway deaths and injuries
            resulting from individuals riding unrestrained or improperly
            restrained in motor vehicles.
                ``(2) Federal share.--The Federal share of the costs of
            activities funded using amounts from grants awarded under this
            subsection may not exceed 80 percent for each fiscal year for
            which a State receives a grant.
                ``(3) Eligibility.--
                        ``(A) High seat belt use rate.--A State with an
                    observed seat belt use rate of 90 percent or higher,
                    based on the most recent data from a survey that
                    conforms with national criteria established by the
                    National Highway Traffic Safety Administration, shall be
                    eligible for a grant in a fiscal year if the State--
                              ``(i) <<NOTE: Occupant plan.>> submits an
                          occupant protection plan during the first fiscal
                          year;
                              ``(ii) participates in the Click It or Ticket
                          national mobilization;
                              ``(iii) has an active network of child
                          restraint inspection stations; and
                              ``(iv) has a plan to recruit, train, and
                          maintain a sufficient number of child passenger
                          safety technicians.
                        ``(B) Lower seat belt use rate.--A State with an
                    observed seat belt use rate below 90 percent, based on
                    the most recent data from a survey that conforms with
                    national criteria established by the National Highway
                    Traffic Safety Administration, shall be eligible for a
                    grant in a fiscal year if--
                              ``(i) the State meets all of the requirements
                          under clauses (i) through (iv) of subparagraph
                          (A); and
                              ``(ii) the Secretary determines that the State
                          meets at least 3 of the following criteria:
                                        ``(I) The State conducts sustained
                                    (on-going and periodic) seat belt
                                    enforcement at a defined level of
                                    participation during the year.
                                        ``(II) The State has enacted and
                                    enforces a primary enforcement seat belt
                                    use law.

    [[Page 126 STAT. 744]]

                                        ``(III) The State has implemented
                                    countermeasure programs for high-risk
                                    populations, such as drivers on rural
                                    roadways, unrestrained nighttime
                                    drivers, or teenage drivers.
                                        ``(IV) The State has enacted and
                                    enforces occupant protection laws
                                    requiring front and rear occupant
                                    protection use by all occupants in an
                                    age-appropriate restraint.
                                        ``(V) The State has implemented a
                                    comprehensive occupant protection
                                    program in which the State has--
                                                ``(aa) conducted a program
                                            assessment;
                                                ``(bb) developed a statewide
                                            strategic plan;
                                                ``(cc) designated an
                                            occupant protection coordinator;
                                            and
                                                ``(dd) established a
                                            statewide occupant protection
                                            task force.
                                        ``(VI) The State--
                                                ``(aa) completed an
                                            assessment of its occupant
                                            protection program during the 3-
                                            year period preceding the grant
                                            year; or
                                                ``(bb) will conduct such an
                                            assessment during the first year
                                            of the grant.
                ``(4) Use of grant amounts.--
                        ``(A) In general.--Grant funds received pursuant to
                    this subsection may be used to--
                              ``(i) carry out a program to support high-
                          visibility enforcement mobilizations, including
                          paid media that emphasizes publicity for the
                          program, and law enforcement;
                              ``(ii) carry out a program to train occupant
                          protection safety professionals, police officers,
                          fire and emergency medical personnel, educators,
                          and parents concerning all aspects of the use of
                          child restraints and occupant protection;
                              ``(iii) carry out a program to educate the
                          public concerning the proper use and installation
                          of child restraints, including related equipment
                          and information systems;
                              ``(iv) carry out a program to provide
                          community child passenger safety services,
                          including programs about proper seating positions
                          for children and how to reduce the improper use of
                          child restraints;
                              ``(v) purchase and distribute child restraints
                          to low-income families, provided that not more
                          than 5 percent of the funds received in a fiscal
                          year are used for such purpose; and
                              ``(vi) establish and maintain information
                          systems containing data concerning occupant
                          protection, including the collection and
                          administration of child passenger safety and
                          occupant protection surveys.
                        ``(B) High seat belt use rate.--A State that is
                    eligible for funds under paragraph (3)(A) may use up to
                    75 percent of such funds for any project or activity
                    eligible for funding under section 402.

    [[Page 126 STAT. 745]]

                ``(5) Grant amount.--The allocation of grant funds to a
            State under this subsection for a fiscal year shall be in
            proportion to the State's apportionment under section 402 for
            fiscal year 2009.
                ``(6) Definitions.--In this subsection:
                        ``(A) Child restraint.--The term `child restraint'
                    means any device (including child safety seat, booster
                    seat, harness, and excepting seat belts) that is--
                              ``(i) designed for use in a motor vehicle to
                          restrain, seat, or position children who weigh 65
                          pounds (30 kilograms) or less; and
                              ``(ii) certified to the Federal motor vehicle
                          safety standard prescribed by the National Highway
                          Traffic Safety Administration for child
                          restraints.
                        ``(B) Seat belt.--The term `seat belt' means--
                              ``(i) with respect to open-body motor
                          vehicles, including convertibles, an occupant
                          restraint system consisting of a lap belt or a lap
                          belt and a detachable shoulder belt; and
                              ``(ii) with respect to other motor vehicles,
                          an occupant restraint system consisting of
                          integrated lap and shoulder belts.

        ``(c) State Traffic Safety Information System Improvements.--
                ``(1) General authority.--Subject to the requirements under
            this subsection, the Secretary of Transportation shall award
            grants to States to support the development and implementation
            of effective State programs that--
                        ``(A) improve the timeliness, accuracy,
                    completeness, uniformity, integration, and accessibility
                    of the State safety data that is needed to identify
                    priorities for Federal, State, and local highway and
                    traffic safety programs;
                        ``(B) evaluate the effectiveness of efforts to make
                    such improvements;
                        ``(C) link the State data systems, including traffic
                    records, with other data systems within the State, such
                    as systems that contain medical, roadway, and economic
                    data;
                        ``(D) improve the compatibility and interoperability
                    of the data systems of the State with national data
                    systems and data systems of other States; and
                        ``(E) enhance the ability of the Secretary to
                    observe and analyze national trends in crash
                    occurrences, rates, outcomes, and circumstances.
                ``(2) Federal share.--The Federal share of the cost of
            adopting and implementing in a fiscal year a State program
            described in this subsection may not exceed 80 percent.
                ``(3) Eligibility.--A State is not eligible for a grant
            under this subsection in a fiscal year unless the State
            demonstrates, to the satisfaction of the Secretary, that the
            State--
                        ``(A) has a functioning traffic records coordinating
                    committee (referred to in this paragraph as `TRCC') that
                    meets at least 3 times each year;
                        ``(B) has designated a TRCC coordinator;
                        ``(C) has established a State traffic record
                    strategic plan that has been approved by the TRCC and
                    describes

    [[Page 126 STAT. 746]]

                    specific quantifiable and measurable improvements
                    anticipated in the State's core safety databases,
                    including crash, citation or adjudication, driver,
                    emergency medical services or injury surveillance
                    system, roadway, and vehicle databases;
                        ``(D) has demonstrated quantitative progress in
                    relation to the significant data program attribute of--
                              ``(i) accuracy;
                              ``(ii) completeness;
                              ``(iii) timeliness;
                              ``(iv) uniformity;
                              ``(v) accessibility; or
                              ``(vi) integration of a core highway safety
                          database; and
                        ``(E) <<NOTE: Certification.>> has certified to the
                    Secretary that an assessment of the State's highway
                    safety data and traffic records system was conducted or
                    updated during the preceding 5 years.
                ``(4) Use of grant amounts.--Grant funds received by a State
            under this subsection shall be used for making data program
            improvements to core highway safety databases related to
            quantifiable, measurable progress in any of the 6 significant
            data program attributes set forth in paragraph (3)(D).
                ``(5) Grant amount.--The allocation of grant funds to a
            State under this subsection for a fiscal year shall be in
            proportion to the State's apportionment under section 402 for
            fiscal year 2009.

        ``(d) Impaired Driving Countermeasures.--
                ``(1) <<NOTE: Grants.>> In general.--Subject to the
            requirements under this subsection, the Secretary of
            Transportation shall award grants to States that adopt and
            implement--
                        ``(A) effective programs to reduce driving under the
                    influence of alcohol, drugs, or the combination of
                    alcohol and drugs; or
                        ``(B) alcohol-ignition interlock laws.
                ``(2) Federal share.--The Federal share of the costs of
            activities funded using amounts from grants under this
            subsection may not exceed 80 percent in any fiscal year in which
            the State receives a grant.
                ``(3) <<NOTE: Plans.>> Eligibility.--
                        ``(A) Low-range states.--Low-range States shall be
                    eligible for a grant under this subsection.
                        ``(B) Mid-range states.--A mid-range State shall be
                    eligible for a grant under this subsection if--
                              ``(i) a statewide impaired driving task force
                          in the State developed a statewide plan during the
                          most recent 3 calendar years to address the
                          problem of impaired driving; or
                              ``(ii) the State will convene a statewide
                          impaired driving task force to develop such a plan
                          during the first year of the grant.
                        ``(C) High-range states.--A high-range State shall
                    be eligible for a grant under this subsection if the
                    State--
                              ``(i)(I) conducted an assessment of the
                          State's impaired driving program during the most
                          recent 3 calendar years; or

    [[Page 126 STAT. 747]]

                              ``(II) will conduct such an assessment during
                          the first year of the grant;
                              ``(ii) convenes, during the first year of the
                          grant, a statewide impaired driving task force to
                          develop a statewide plan that--
                                        ``(I) addresses any recommendations
                                    from the assessment conducted under
                                    clause (i);
                                        ``(II) includes a detailed plan for
                                    spending any grant funds provided under
                                    this subsection; and
                                        ``(III) describes how such spending
                                    supports the statewide program; and
                              ``(iii)(I) submits the statewide plan to the
                          National Highway Traffic Safety Administration
                          during the first year of the grant for the
                          agency's review and approval;
                              ``(II) annually updates the statewide plan in
                          each subsequent year of the grant; and
                              ``(III) submits each updated statewide plan
                          for the agency's review and comment.
                ``(4) Use of grant amounts.--
                        ``(A) Required programs.--High-range States shall
                    use grant funds for--
                              ``(i) high visibility enforcement efforts; and
                              ``(ii) any of the activities described in
                          subparagraph (B) if--
                                        ``(I) the activity is described in
                                    the statewide plan; and
                                        ``(II) the Secretary approves the
                                    use of funding for such activity.
                        ``(B) Authorized programs.--Medium-range and low-
                    range States may use grant funds for--
                              ``(i) any of the purposes described in
                          subparagraph (A);
                              ``(ii) hiring a full-time or part-time
                          impaired driving coordinator of the State's
                          activities to address the enforcement and
                          adjudication of laws regarding driving while
                          impaired by alcohol;
                              ``(iii) court support of high visibility
                          enforcement efforts, training and education of
                          criminal justice professionals (including law
                          enforcement, prosecutors, judges, and probation
                          officers) to assist such professionals in handling
                          impaired driving cases, hiring traffic safety
                          resource prosecutors, hiring judicial outreach
                          liaisons, and establishing driving while
                          intoxicated courts;
                              ``(iv) alcohol ignition interlock programs;
                              ``(v) improving blood-alcohol concentration
                          testing and reporting;
                              ``(vi) paid and earned media in support of
                          high visibility enforcement efforts, and
                          conducting standardized field sobriety training,
                          advanced roadside impaired driving evaluation
                          training, and drug recognition expert training for
                          law enforcement, and equipment and related
                          expenditures used in connection with impaired
                          driving enforcement in accordance with criteria
                          established by the National Highway Traffic Safety
                          Administration;

    [[Page 126 STAT. 748]]

                              ``(vii) training on the use of alcohol
                          screening and brief intervention;
                              ``(viii) developing impaired driving
                          information systems; and
                              ``(ix) costs associated with a 24-7 sobriety
                          program.
                        ``(C) Other programs.--Low-range States may use
                    grant funds for any expenditure designed to reduce
                    impaired driving based on problem identification. Medium
                    and high-range States may use funds for such
                    expenditures upon approval by the Secretary.
                ``(5) Grant amount.--Subject to paragraph (6), the
            allocation of grant funds to a State under this section for a
            fiscal year shall be in proportion to the State's apportionment
            under section 402(c) for fiscal year 2009.
                ``(6) Grants to states that adopt and enforce mandatory
            alcohol-ignition interlock laws.--
                        ``(A) In general.--The Secretary shall make a
                    separate grant under this subsection to each State that
                    adopts and is enforcing a mandatory alcohol-ignition
                    interlock law for all individuals convicted of driving
                    under the influence of alcohol or of driving while
                    intoxicated.
                        ``(B) Use of funds.--Grants authorized under
                    subparagraph (A) may be used by recipient States for any
                    eligible activities under this subsection or section
                    402.
                        ``(C) Allocation.--Amounts made available under this
                    paragraph shall be allocated among States described in
                    subparagraph (A) on the basis of the apportionment
                    formula set forth in section 402(c).
                        ``(D) Funding.--Not more than 15 percent of the
                    amounts made available to carry out this subsection in a
                    fiscal year shall be made available by the Secretary for
                    making grants under this paragraph.
                ``(7) Definitions.--In this subsection:
                        ``(A) 24-7 sobriety program.--The term `24-7
                    sobriety program' means a State law or program that
                    authorizes a State court or a State agency, as a
                    condition of sentence, probation, parole, or work
                    permit, to--
                              ``(i) require an individual who plead guilty
                          or was convicted of driving under the influence of
                          alcohol or drugs to totally abstain from alcohol
                          or drugs for a period of time; and
                              ``(ii) require the individual to be subject to
                          testing for alcohol or drugs--
                                        ``(I) at least twice per day;
                                        ``(II) by continuous transdermal
                                    alcohol monitoring via an electronic
                                    monitoring device; or
                                        ``(III) by an alternate method with
                                    the concurrence of the Secretary.
                        ``(B) Average impaired driving fatality rate.--The
                    term `average impaired driving fatality rate' means the
                    number of fatalities in motor vehicle crashes involving
                    a driver with a blood alcohol concentration of at least
                    0.08 percent for every 100,000,000 vehicle miles
                    traveled, based on the most recently reported 3 calendar
                    years of final data from the Fatality Analysis Reporting
                    System, as calculated in accordance with regulations
                    prescribed

    [[Page 126 STAT. 749]]

                    by the Administrator of the National Highway Traffic
                    Safety Administration.
                        ``(C) High-range state.--The term `high-range State'
                    means a State that has an average impaired driving
                    fatality rate of 0.60 or higher.
                        ``(D) Low-range state.--The term `low-range State'
                    means a State that has an average impaired driving
                    fatality rate of 0.30 or lower..
                        ``(E) Mid-range state.--The term `mid-range State'
                    means a State that has an average impaired driving
                    fatality rate that is higher than 0.30 and lower than
                    0.60.

        ``(e) Distracted Driving Grants.--
                ``(1) In general.--The Secretary shall award a grant under
            this subsection to any State that enacts and enforces a statute
            that meets the requirements set forth in paragraphs (2) and (3).
                ``(2) Prohibition on texting while driving.--A State statute
            meets the requirements set forth in this paragraph if the
            statute--
                        ``(A) prohibits drivers from texting through a
                    personal wireless communications device while driving;
                        ``(B) makes violation of the statute a primary
                    offense; and
                        ``(C) establishes--
                              ``(i) a minimum fine for a first violation of
                          the statute; and
                              ``(ii) increased fines for repeat violations.
                ``(3) Prohibition on youth cell phone use while driving.--A
            State statute meets the requirements set forth in this paragraph
            if the statute--
                        ``(A) prohibits a driver who is younger than 18
                    years of age from using a personal wireless
                    communications device while driving;
                        ``(B) makes violation of the statute a primary
                    offense;
                        ``(C) requires distracted driving issues to be
                    tested as part of the State driver's license
                    examination; and
                        ``(D) establishes--
                              ``(i) a minimum fine for a first violation of
                          the statute; and
                              ``(ii) increased fines for repeat violations.
                ``(4) Permitted exceptions.--A statute that meets the
            requirements set forth in paragraphs (2) and (3) may provide
            exceptions for--
                        ``(A) a driver who uses a personal wireless
                    communications device to contact emergency services;
                        ``(B) emergency services personnel who use a
                    personal wireless communications device while--
                              ``(i) operating an emergency services vehicle;
                          and
                              ``(ii) engaged in the performance of their
                          duties as emergency services personnel; and
                        ``(C) an individual employed as a commercial motor
                    vehicle driver or a school bus driver who uses a
                    personal wireless communications device within the scope
                    of such individual's employment if such use is permitted
                    under the regulations promulgated pursuant to section
                    31152 of title 49.

    [[Page 126 STAT. 750]]

                ``(5) Use of grant funds.--Of the amounts received by a
            State under this subsection--
                        ``(A) at least 50 percent shall be used--
                              ``(i) to educate the public through
                          advertising containing information about the
                          dangers of texting or using a cell phone while
                          driving;
                              ``(ii) for traffic signs that notify drivers
                          about the distracted driving law of the State; or
                              ``(iii) for law enforcement costs related to
                          the enforcement of the distracted driving law; and
                        ``(B) up to 50 percent may be used for any eligible
                    project or activity under section 402.
                ``(6) Additional grants.--In the first fiscal year that
            grants are awarded under this subsection, the Secretary may use
            up to 25 percent of the amounts available for grants under this
            subsection to award grants to States that--
                        ``(A) enacted statutes before the date of enactment
                    of the Motor Vehicle and Highway Safety Improvement Act
                    of 2012, which meet the requirements set forth in
                    subparagraphs (A) and (B) of paragraph (2); and
                        ``(B) are otherwise ineligible for a grant under
                    this subsection.
                ``(7) Allocation to support state distracted driving laws.--
            Of the amounts available under this subsection in a fiscal year
            for distracted driving grants, the Secretary may expend up to
            $5,000,000 for the development and placement of broadcast media
            to support the enforcement of State distracted driving laws.
                ``(8) Distracted driving study.--
                        ``(A) In general.--The Secretary shall conduct a
                    study of all forms of distracted driving.
                        ``(B) Components.--The study conducted under
                    subparagraph (A) shall--
                              ``(i) examine the effect of distractions other
                          than the use of personal wireless communications
                          on motor vehicle safety;
                              ``(ii) identify metrics to determine the
                          nature and scope of the distracted driving
                          problem;
                              ``(iii) identify the most effective methods to
                          enhance education and awareness; and
                              ``(iv) identify the most effective method of
                          reducing deaths and injuries caused by all forms
                          of distracted driving.
                        ``(C) Report.--Not later than 1 year after the date
                    of enactment of the Motor Vehicle and Highway Safety
                    Improvement Act of 2012, the Secretary shall submit a
                    report containing the results of the study conducted
                    under this paragraph to--
                              ``(i) the Committee on Commerce, Science, and
                          Transportation of the Senate; and
                              ``(ii) the Committee on Transportation and
                          Infrastructure of the House of Representatives.
                ``(9) Definitions.--In this subsection:
                        ``(A) Driving.--The term `driving'--
                              ``(i) means operating a motor vehicle on a
                          public road, including operation while temporarily
                          stationary

    [[Page 126 STAT. 751]]

                          because of traffic, a traffic light or stop sign,
                          or otherwise; and
                              ``(ii) does not include operating a motor
                          vehicle when the vehicle has pulled over to the
                          side of, or off, an active roadway and has stopped
                          in a location where it can safely remain
                          stationary.
                        ``(B) Personal wireless communications device.--The
                    term `personal wireless communications device'--
                              ``(i) means a device through which personal
                          wireless services (as defined in section
                          332(c)(7)(C)(i) of the Communications Act of 1934
                          (47 U.S.C. 332(c)(7)(C)(i))) are transmitted; and
                              ``(ii) does not include a global navigation
                          satellite system receiver used for positioning,
                          emergency notification, or navigation purposes.
                        ``(C) Primary offense.--The term `primary offense'
                    means an offense for which a law enforcement officer may
                    stop a vehicle solely for the purpose of issuing a
                    citation in the absence of evidence of another offense.
                        ``(D) Public road.--The term `public road' has the
                    meaning given such term in section 402(c).
                        ``(E) Texting.--The term `texting' means reading
                    from or manually entering data into a personal wireless
                    communications device, including doing so for the
                    purpose of SMS texting, e-mailing, instant messaging, or
                    engaging in any other form of electronic data retrieval
                    or electronic data communication.

        ``(f) Motorcyclist Safety.--
                ``(1) Grants authorized.--Subject to the requirements under
            this subsection, the Secretary shall award grants to States that
            adopt and implement effective programs to reduce the number of
            single- and multi-vehicle crashes involving motorcyclists.
                ``(2) Allocation.--The amount of a grant awarded to a State
            for a fiscal year under this subsection may not exceed 25
            percent of the amount apportioned to the State for fiscal year
            2003 under section 402.
                ``(3) Grant eligibility.--A State becomes eligible for a
            grant under this subsection by adopting or demonstrating to the
            satisfaction of the Secretary, at least 2 of the following
            criteria:
                        ``(A) Motorcycle rider training courses.--An
                    effective motorcycle rider training course that is
                    offered throughout the State, which--
                              ``(i) provides a formal program of instruction
                          in accident avoidance and other safety-oriented
                          operational skills to motorcyclists; and
                              ``(ii) may include innovative training
                          opportunities to meet unique regional needs.
                        ``(B) Motorcyclists awareness program.--An effective
                    statewide program to enhance motorist awareness of the
                    presence of motorcyclists on or near roadways and safe
                    driving practices that avoid injuries to motorcyclists.
                        ``(C) Reduction of fatalities and crashes involving
                    motorcycles.--A reduction for the preceding calendar
                    year in the number of motorcycle fatalities and the rate
                    of

    [[Page 126 STAT. 752]]

                    motor vehicle crashes involving motorcycles in the State
                    (expressed as a function of 10,000 motorcycle
                    registrations).
                        ``(D) Impaired driving program.--Implementation of a
                    statewide program to reduce impaired driving, including
                    specific measures to reduce impaired motorcycle
                    operation.
                        ``(E) Reduction of fatalities and accidents
                    involving impaired motorcyclists.--A reduction for the
                    preceding calendar year in the number of fatalities and
                    the rate of reported crashes involving alcohol- or drug-
                    impaired motorcycle operators (expressed as a function
                    of 10,000 motorcycle registrations).
                        ``(F) Fees collected from motorcyclists.--All fees
                    collected by the State from motorcyclists for the
                    purposes of funding motorcycle training and safety
                    programs will be used for motorcycle training and safety
                    purposes.
                ``(4) Eligible uses.--
                        ``(A) In general.--A State may use funds from a
                    grant under this subsection only for motorcyclist safety
                    training and motorcyclist awareness programs,
                    including--
                              ``(i) improvements to motorcyclist safety
                          training curricula;
                              ``(ii) improvements in program delivery of
                          motorcycle training to both urban and rural areas,
                          including--
                                        ``(I) procurement or repair of
                                    practice motorcycles;
                                        ``(II) instructional materials;
                                        ``(III) mobile training units; and
                                        ``(IV) leasing or purchasing
                                    facilities for closed-course motorcycle
                                    skill training;
                              ``(iii) measures designed to increase the
                          recruitment or retention of motorcyclist safety
                          training instructors; and
                              ``(iv) public awareness, public service
                          announcements, and other outreach programs to
                          enhance driver awareness of motorcyclists, such as
                          the `share-the-road' safety messages developed
                          under subsection (g).
                        ``(B) Suballocations of funds.--An agency of a State
                    that receives a grant under this subsection may
                    suballocate funds from the grant to a nonprofit
                    organization incorporated in that State to carry out
                    this subsection.
                ``(5) Definitions.--In this subsection:
                        ``(A) Motorcyclist awareness.--The term
                    `motorcyclist awareness' means individual or collective
                    awareness of--
                              ``(i) the presence of motorcycles on or near
                          roadways; and
                              ``(ii) safe driving practices that avoid
                          injury to motorcyclists.
                        ``(B) Motorcyclist awareness program.--The term
                    `motorcyclist awareness program' means an informational
                    or public awareness program designed to enhance
                    motorcyclist awareness that is developed by or in
                    coordination with the designated State authority having
                    jurisdiction over motorcyclist safety issues, which may
                    include the State motorcycle safety administrator or a
                    motorcycle advisory council appointed by the governor of
                    the State.

    [[Page 126 STAT. 753]]

                        ``(C) Motorcyclist safety training.--The term
                    `motorcyclist safety training' means a formal program of
                    instruction that is approved for use in a State by the
                    designated State authority having jurisdiction over
                    motorcyclist safety issues, which may include the State
                    motorcycle safety administrator or a motorcycle advisory
                    council appointed by the governor of the State.
                        ``(D) State.--The term `State' has the meaning given
                    such term in section 101(a) of title 23, United States
                    Code.

        ``(g) State Graduated Driver Licensing Incentive Grant.--
                ``(1) Grants authorized.--Subject to the requirements under
            this subsection, the Secretary shall award grants to States that
            adopt and implement graduated driver licensing laws in
            accordance with the requirements set forth in paragraph (2).
                ``(2) Minimum requirements.--
                        ``(A) In general.--A State meets the requirements
                    set forth in this paragraph if the State has a graduated
                    driver licensing law that requires novice drivers
                    younger than 21 years of age to comply with the 2-stage
                    licensing process described in subparagraph (B) before
                    receiving an unrestricted driver's license.
                        ``(B) Licensing process.--A State is in compliance
                    with the 2-stage licensing process described in this
                    subparagraph if the State's driver's license laws
                    include--
                              ``(i) a learner's permit stage that--
                                        ``(I) is at least 6 months in
                                    duration;
                                        ``(II) prohibits the driver from
                                    using a cellular telephone or any
                                    communications device in a nonemergency
                                    situation; and
                                        ``(III) remains in effect until the
                                    driver--
                                                ``(aa) reaches 16 years of
                                            age and enters the intermediate
                                            stage; or
                                                ``(bb) reaches 18 years of
                                            age;
                              ``(ii) an intermediate stage that--
                                        ``(I) commences immediately after
                                    the expiration of the learner's permit
                                    stage;
                                        ``(II) is at least 6 months in
                                    duration;
                                        ``(III) prohibits the driver from
                                    using a cellular telephone or any
                                    communications device in a nonemergency
                                    situation;
                                        ``(IV) restricts driving at night;
                                        ``(V) prohibits the driver from
                                    operating a motor vehicle with more than
                                    1 nonfamilial passenger younger than 21
                                    years of age unless a licensed driver
                                    who is at least 21 years of age is in
                                    the motor vehicle; and
                                        ``(VI) remains in effect until the
                                    driver reaches 18 years of age; and
                              ``(iii) any other requirement prescribed by
                          the Secretary of Transportation, including--
                                        ``(I) in the learner's permit
                                    stage--
                                                ``(aa) at least 40 hours of
                                            behind-the-wheel training with a
                                            licensed driver who is at least
                                            21 years of age;
                                                ``(bb) a driver training
                                            course; and

    [[Page 126 STAT. 754]]

                                                ``(cc) a requirement that
                                            the driver be accompanied and
                                            supervised by a licensed driver,
                                            who is at least 21 years of age,
                                            at all times while such driver
                                            is operating a motor vehicle;
                                            and
                                        ``(II) in the learner's permit or
                                    intermediate stage, a requirement, in
                                    addition to any other penalties imposed
                                    by State law, that the grant of an
                                    unrestricted driver's license be
                                    automatically delayed for any individual
                                    who, during the learner's permit or
                                    intermediate stage, is convicted of a
                                    driving-related offense, including--
                                                ``(aa) driving while
                                            intoxicated;
                                                ``(bb) misrepresentation of
                                            his or her true age;
                                                ``(cc) reckless driving;
                                                ``(dd) driving without
                                            wearing a seat belt;
                                                ``(ee) speeding; or
                                                ``(ff) any other driving-
                                            related offense, as determined
                                            by the Secretary.
                ``(3) Rulemaking.--
                        ``(A) In general.--The Secretary shall promulgate
                    regulations necessary to implement the requirements set
                    forth in paragraph (2), in accordance with the notice
                    and comment provisions under section 553 of title 5.
                        ``(B) <<NOTE: Deadline.>> Exception.--A State that
                    otherwise meets the minimum requirements set forth in
                    paragraph (2) shall be deemed by the Secretary to be in
                    compliance with the requirement set forth in paragraph
                    (2) if the State enacted a law before January 1, 2011,
                    establishing a class of license that permits licensees
                    or applicants younger than 18 years of age to drive a
                    motor vehicle--
                              ``(i) in connection with work performed on, or
                          for the operation of, a farm owned by family
                          members who are directly related to the applicant
                          or licensee; or
                              ``(ii) if demonstrable hardship would result
                          from the denial of a license to the licensees or
                          applicants.
                ``(4) Allocation.--Grant funds allocated to a State under
            this subsection for a fiscal year shall be in proportion to a
            State's apportionment under section 402 for such fiscal year.
                ``(5) Use of funds.--Of the grant funds received by a State
            under this subsection--
                        ``(A) at least 25 percent shall be used for--
                              ``(i) enforcing a 2-stage licensing process
                          that complies with paragraph (2);
                              ``(ii) training for law enforcement personnel
                          and other relevant State agency personnel relating
                          to the enforcement described in clause (i);
                              ``(iii) publishing relevant educational
                          materials that pertain directly or indirectly to
                          the State graduated driver licensing law;
                              ``(iv) carrying out other administrative
                          activities that the Secretary considers relevant
                          to the State's 2-stage licensing process; and
                              ``(v) carrying out a teen traffic safety
                          program described in section 402(m); and

    [[Page 126 STAT. 755]]

                        ``(B) up to 75 percent may be used for any eligible
                    project or activity under section 402.''.

        (b) Conforming Amendment.--The analysis for chapter 4 of title 23,
    United States Code, is amended by striking the item relating to section
    405 and inserting the following:

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

    SEC. 31106. HIGH VISIBILITY ENFORCEMENT PROGRAM.

        Section 2009 of SAFETEA-LU (23 U.S.C. 402 note) is amended--
                (1) in subsection (a)--
                        (A) by striking ``at least 2'' and inserting ``at
                    least 3''; and
                        (B) by striking ``years 2006 through 2012.'' and
                    inserting ``fiscal years 2013 and 2014. The
                    Administrator may also initiate and support additional
                    campaigns in each of fiscal years 2013 and 2014 for the
                    purposes specified in subsection (b).'';
                (2) in subsection (b), by striking ``either or both'' and
            inserting ``outcomes related to at least 1'';
                (3) in subsection (c), by inserting ``and Internet-based
            outreach'' after ``print media advertising'';
                (4) in subsection (e), by striking ``subsections (a), (c),
            and (f)'' and inserting ``subsection (c)'';
                (5) by striking subsection (f); and
                (6) by redesignating subsection (g) as subsection (f).
    SEC. 31107. AGENCY ACCOUNTABILITY.

        Section 412 of title 23, United States Code, is amended--
                (1) by amending subsection (a) to read as follows:

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

    [[Page 126 STAT. 756]]

    SEC. 31108. EMERGENCY MEDICAL SERVICES.

        Section 10202 of Public Law 109-59 (42 U.S.C. 300d-4), is amended by
    adding at the end the following:
        ``(b) National Emergency Medical Services Advisory Council.--
                ``(1) Establishment.--The Secretary of Transportation, in
            coordination with the Secretary of Health and Human Services and
            the Secretary of Homeland Security, shall establish a National
            Emergency Medical Services Advisory Council (referred to in this
            subsection as the `Advisory Council').
                ``(2) Membership.--The Advisory Council shall be composed of
            25 members, who--
                        ``(A) shall be appointed by the Secretary of
                    Transportation; and
                        ``(B) shall collectively be representative of all
                    sectors of the emergency medical services community.
                ``(3) <<NOTE: Consultation.>> Purposes.--The purposes of the
            Advisory Council are to advise and consult with--
                        ``(A) the Federal Interagency Committee on Emergency
                    Medical Services on matters relating to emergency
                    medical services issues; and
                        ``(B) the Secretary of Transportation on matters
                    relating to emergency medical services issues affecting
                    the Department of Transportation.
                ``(4) Administration.--The Administrator of the National
            Highway Traffic Safety Administration shall provide
            administrative support to the Advisory Council, including
            scheduling meetings, setting agendas, keeping minutes and
            records, and producing reports.
                ``(5) <<NOTE: Deadline.>> Leadership.--The members of the
            Advisory Council shall annually select a chairperson of the
            Advisory Council.
                ``(6) Meetings.--The Advisory Council shall meet as
            frequently as is determined necessary by the chairperson of the
            Advisory Council.
                ``(7) Annual reports.--The Advisory Council shall prepare an
            annual report to the Secretary of Transportation regarding the
            Advisory Council's actions and recommendations.''.
    SEC. 31109. REPEAL OF PROGRAMS.

        (a) <<NOTE: 23 USC 406 note.>> General Provision.--A repeal made by
    this section shall not affect amounts apportioned or allocated before
    the effective date of such repeal, provided that such apportioned or
    allocated funds continue to be subject to the requirements to which such
    funds were subject under the repealed section as in effect on the day
    before the date of the repeal.

        (b) Safety Belt Performance Grants.--Section 406 of title 23, United
    States Code, and the item relating to section 406 in the analysis for
    chapter 4 of title 23, United States Code, are repealed.
        (c) Innovative Project Grants.--Section 407 of title 23, United
    States Code, and the item relating to section 407 in the analysis for
    chapter 4, are repealed.
        (d) State Traffic Safety Information System Improvements.--Section
    408 of title 23, United States Code, and the item relating to section
    408 in the analysis for chapter 4, are repealed.

    [[Page 126 STAT. 757]]

        (e) Alcohol-impaired Driving Countermeasures.--Section 410 of title
    23, United States Code, and the item relating to section 410 in the
    analysis for chapter 4, are repealed.
        (f) State Highway Safety Data Improvements.--Section 411 of title
    23, United States Code, and the item relating to section 411 in the
    analysis for chapter 4, are repealed.
        (g) Motorcyclist Safety.--Section 2010 of SAFETEA-LU (23 U.S.C. 402
    note), and the item relating to section 2010 in the table of contents
    under section 1(b) of such Act, are repealed.
        (h) Child Safety and Child Booster Seat Incentive Grants.--Section
    2011 of SAFETEA-LU (23 U.S.C. 405 note), and the item relating to
    section 2011 in the table of contents under section 1(b) of that Act,
    are repealed.
        (i) Drug-impaired Driving Enforcement.--Section 2013 of SAFETEA-LU
    (23 U.S.C. 403 note), and the item relating to section 2013 in the table
    of contents under section 1(b) of that Act, are repealed.
        (j) First Responder Vehicle Safety Program.--Section 2014 of
    SAFETEA-LU (23 U.S.C. 402 note), and the item relating to section 2014
    in the table of contents under section 1(b) of that Act, are repealed.
        (k) Rural State Emergency Medical Services Optimization Pilot
    Program.--Section 2016 of SAFETEA-LU (119 Stat. 1541), and the item
    relating to section 2016 in the table of contents under section 1(b) of
    that Act, are repealed.
        (l) Older Driver Safety; Law Enforcement Training.--Section 2017 of
    SAFETEA-LU (119 Stat. 1541) <<NOTE: 23 USC 402 note.>> , and the item
    relating to section 2017 in the table of contents under section 1(b) of
    that Act, are repealed.

                     Subtitle B--Enhanced Safety Authorities

    SEC. 31201. DEFINITION OF MOTOR VEHICLE EQUIPMENT.

        Section 30102(a)(7)(C) of title 49, United States Code, is amended
    to read as follows:
                        ``(C) any device or an article or apparel, including
                    a motorcycle helmet and excluding medicine or eyeglasses
                    prescribed by a licensed practitioner, that--
                              ``(i) is not a system, part, or component of a
                          motor vehicle; and
                              ``(ii) is manufactured, sold, delivered, or
                          offered to be sold for use on public streets,
                          roads, and highways with the apparent purpose of
                          safeguarding users of motor vehicles against risk
                          of accident, injury, or death.''.
    SEC. 31202. PERMIT REMINDER SYSTEM FOR NON-USE OF SAFETY BELTS.

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

        ``A motor vehicle safety standard prescribed under this chapter may
    not require a manufacturer to comply with the standard by

    [[Page 126 STAT. 758]]

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

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

    SEC. 31203. CIVIL PENALTIES.

        (a) In General.--Section 30165 of title 49, United States Code, is
    amended--
                (1) in subsection (a)--
                        (A) in paragraph (1)--
                              (i) by striking ``30123(d)'' and inserting
                          ``30123(a)''; and
                              (ii) by striking ``$15,000,000'' and inserting
                          ``$35,000,000''; and
                        (B) in paragraph (3), by striking ``$15,000,000''
                    and inserting ``$35,000,000''; and
                (2) by amending subsection (c) to read as follows:

        ``(c) Relevant Factors in Determining Amount of Penalty or
    Compromise.--In determining the amount of a civil penalty or compromise
    under this section, the Secretary of Transportation shall consider the
    nature, circumstances, extent, and gravity of the violation. Such
    determination shall include, as appropriate--
                ``(1) the nature of the defect or noncompliance;
                ``(2) knowledge by the person charged of its obligations
            under this chapter;
                ``(3) the severity of the risk of injury;
                ``(4) the occurrence or absence of injury;
                ``(5) the number of motor vehicles or items of motor vehicle
            equipment distributed with the defect or noncompliance;
                ``(6) actions taken by the person charged to identify,
            investigate, or mitigate the condition;
                ``(7) the appropriateness of such penalty in relation to the
            size of the business of the person charged, including the
            potential for undue adverse economic impacts;
                ``(8) whether the person has been assessed civil penalties
            under this section during the most recent 5 years; and
                ``(9) other appropriate factors.''.

        (b) <<NOTE: Deadline. Regulations. 49 USC 30165 note.>> Civil
    Penalty Criteria.--Not later than 1 year after the date of enactment of
    this Act, the Secretary shall issue a final rule, in accordance with the
    procedures of section 553 of title 5, United States Code, which provides
    an interpretation of the penalty factors described in section 30165(c)
    of title 49, United States Code.

        (c) <<NOTE: 49 USC 30165 note.>> Effective Date.--The amendments
    made by subsection (a) shall take effect on the date that is the earlier
    of the date on which final regulations are issued under subsection (b)
    or 1 year after the date of enactment of this Act.
    SEC. 31204. MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT.

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

    [[Page 126 STAT. 759]]

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

    ``Sec. 30181. Policy

        ``The Secretary of Transportation shall conduct research,
    development, and testing on any area or aspect of motor vehicle safety
    necessary to carry out this chapter.
    ``Sec. 30182. Powers and duties

        ``(a) In General.--The Secretary of Transportation shall--
                ``(1) conduct motor vehicle safety research, development,
            and testing programs and activities, including activities
            related to new and emerging technologies that impact or may
            impact motor vehicle safety;
                ``(2) collect and analyze all types of motor vehicle and
            highway safety data and related information to determine the
            relationship between motor vehicle or motor vehicle equipment
            performance characteristics and--
                        ``(A) accidents involving motor vehicles; and
                        ``(B) deaths or personal injuries resulting from
                    those accidents.

        ``(b) Activities.--In carrying out a program under this section, the
    Secretary of Transportation may--
                ``(1) promote, support, and advance the education and
            training of motor vehicle safety staff of the National Highway
            Traffic Safety Administration in motor vehicle safety research
            programs and activities, including using program funds for
            planning, implementing, conducting, and presenting results of
            program activities, and for related expenses;
                ``(2) obtain experimental and other motor vehicles and motor
            vehicle equipment for research or testing;
                ``(3)(A) use any test motor vehicles and motor vehicle
            equipment suitable for continued use, as determined by the
            Secretary to assist in carrying out this chapter or any other
            chapter of this title; or
                ``(B) sell or otherwise dispose of test motor vehicles and
            motor vehicle equipment and use the resulting proceeds to carry
            out this chapter;
                ``(4) award grants to States and local governments,
            interstate authorities, and nonprofit institutions; and
                ``(5) enter into cooperative agreements, collaborative
            research, or contracts with Federal agencies, interstate
            authorities, State and local governments, other public entities,
            private organizations and persons, nonprofit institutions,
            colleges and universities, consumer advocacy groups,
            corporations, partnerships, sole proprietorships, trade
            associations, Federal laboratories (including government-owned,
            government-operated laboratories and government-owned,
            contractor-operated laboratories), and research organizations.

        ``(c) Use of Public Agencies.--In carrying out this subchapter, the
    Secretary shall avoid duplication by using the services, research, and
    testing facilities of public agencies, as appropriate.
        ``(d) Facilities.--The Secretary may plan, design, and construct a
    new facility or modify an existing facility to conduct research,
    development, and testing in traffic safety, highway safety, and motor
    vehicle safety. <<NOTE: Notification. Time period.>> An expenditure of
    more than $1,500,000 for planning, design, or construction may be made
    only if 60 days

    [[Page 126 STAT. 760]]

    prior notice of the planning, design, or construction is provided to the
    Committees on Science, Space, and Technology and Transportation and
    Infrastructure of the House of Representatives and the Committees on
    Commerce, Science, and Transportation and Environment and Public Works
    of the Senate. The notice shall include--
                ``(1) a brief description of the facility being planned,
            designed, or constructed;
                ``(2) the location of the facility;
                ``(3) an estimate of the maximum cost of the facility;
                ``(4) a statement identifying private and public agencies
            that will use the facility and the contribution each agency will
            make to the cost of the facility; and
                ``(5) a justification of the need for the facility.

        ``(e) Increasing Costs of Approved Facilities.--The estimated
    maximum cost of a facility noticed under subsection (d) may be increased
    by an amount equal to the percentage increase in construction costs from
    the date the notice is submitted to Congress. However, the increase in
    the cost of the facility may not be more than 10 percent of the
    estimated maximum cost included in the notice. The Secretary shall
    decide what increase in construction costs has occurred.
        ``(f) Availability of Information, Patents, and Developments.--
    <<NOTE: Public information.>> When the United States Government makes
    more than a minimal contribution to a research or development activity
    under this chapter, the Secretary shall include in the arrangement for
    the activity a provision to ensure that all information, patents, and
    developments related to the activity are available to the public. The
    owner of a background patent may not be deprived of a right under the
    patent.
    ``Sec. 30183. Prohibition on certain disclosures.

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

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

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

                (2) Deletion of redundant material.--Chapter 301 of title
            49, United States Code, is amended--
                        (A) in the chapter analysis, by striking the item
                    relating to section 30168; and
                        (B) by striking section 30168.
    SEC. 31205. ODOMETER REQUIREMENTS.

        (a) Definition.--Section 32702(5) of title 49, United States Code,
    is amended by inserting ``or system of components'' after
    ``instrument''.

    [[Page 126 STAT. 761]]

        (b) Electronic Disclosures of Odometer Information.--Section 32705
    of title 49, United States Code, is amended by adding at the end the
    following:
        ``(g) <<NOTE: Deadline. Regulations.>> Electronic Disclosures.--Not
    later than 18 months after the date of enactment of the Motor Vehicle
    and Highway Safety Improvement Act of 2012, in carrying out this
    section, the Secretary shall prescribe regulations permitting any
    written disclosures or notices and related matters to be provided
    electronically.''.
    SEC. 31206. INCREASED PENALTIES AND DAMAGES FOR ODOMETER FRAUD.

        Chapter 327 of title 49, United States Code, is amended--
                (1) in section 32709(a)(1)--
                        (A) by striking ``$2,000'' and inserting
                    ``$10,000''; and
                        (B) by striking ``$100,000'' and inserting
                    ``$1,000,000''; and
                (2) in section 32710(a), by striking ``$1,500'' and
            inserting ``$10,000''.
    SEC. 31207. EXTEND PROHIBITIONS ON IMPORTING NONCOMPLIANT VEHICLES
                                AND EQUIPMENT TO DEFECTIVE VEHICLES
                                AND EQUIPMENT.

        Section 30112 of title 49, United States Code, is amended--
                (1) in subsection (a), by adding at the end the following:

        ``(3) Except as provided in this section, section 30114, subsections
    (i) and (j) of section 30120, and subchapter III, a person may not sell,
    offer for sale, introduce or deliver for introduction in interstate
    commerce, or import into the United States any motor vehicle or motor
    vehicle equipment if the vehicle or equipment contains a defect related
    to motor vehicle safety about which notice was given under section
    30118(c) or an order was issued under section 30118(b). Nothing in this
    paragraph may be construed to prohibit the importation of a new motor
    vehicle that receives a required recall remedy before being sold to a
    consumer in the United States.''; and
                (2) in subsection (b)(2)--
                        (A) in subparagraph (A), by striking ``or'' at the
                    end;
                        (B) in subparagraph (B), by adding ``or'' at the
                    end; and
                        (C) by adding at the end the following:
                        ``(C) having no reason to know, despite exercising
                    reasonable care, that a motor vehicle or motor vehicle
                    equipment contains a defect related to motor vehicle
                    safety about which notice was given under section
                    30118(c) or an order was issued under section
                    30118(b);''.
    SEC. 31208. CONDITIONS ON IMPORTATION OF VEHICLES AND EQUIPMENT.

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

    ``30164. Service of process; conditions on importation of vehicles and
               equipment.'';

            and
                (2) in section 30164--
                        (A) in the section heading, by adding ``; conditions
                    on importation of vehicles and equipment'' at the end;
                    and

    [[Page 126 STAT. 762]]

                        (B) by adding at the end the following:

        ``(c) Identifying Information.--A manufacturer (including an
    importer) offering a motor vehicle or motor vehicle equipment for import
    shall provide, upon request, such information that is necessary to
    identify and track the products as the Secretary, by rule, may specify,
    including--
                ``(1) the product by name and the manufacturer's address;
            and
                ``(2) each retailer or distributor to which the manufacturer
            directly supplied motor vehicles or motor vehicle equipment over
            which the Secretary has jurisdiction under this chapter.

        ``(d) Regulations on the Import of a Motor Vehicle.--The Secretary
    may issue regulations that--
                ``(1) condition the import of a motor vehicle or motor
            vehicle equipment on the manufacturer's compliance with--
                        ``(A) the requirements under this section;
                        ``(B) paragraph (1) or (3) of section 30112(a) with
                    respect to such motor vehicle or motor vehicle
                    equipment;
                        ``(C) the provision of reports and records required
                    to be maintained with respect to such motor vehicle or
                    motor vehicle equipment under this chapter;
                        ``(D) a request for inspection of premises, vehicle,
                    or equipment under section 30166;
                        ``(E) an order or voluntary agreement to remedy such
                    vehicle or equipment; or
                        ``(F) any rules implementing the requirements
                    described in this subsection;
                ``(2) provide an opportunity for the manufacturer to present
            information before the Secretary's determination as to whether
            the manufacturer's imports should be restricted; and
                ``(3) establish a process by which a manufacturer may
            petition for reinstatement of its ability to import motor
            vehicles or motor vehicle equipment.

        ``(e) Exception.--The requirements of subsections (c) and (d) shall
    not apply to original manufacturers (or wholly owned subsidiaries) of
    motor vehicles that, prior to the date of enactment of the Motor Vehicle
    and Highway Safety Improvement Act of 2012--
                ``(1) have imported motor vehicles into the United States
            that are certified to comply with all applicable Federal motor
            vehicle safety standards;
                ``(2) have submitted to the Secretary appropriate
            manufacturer identification information under part 566 of title
            49, Code of Federal Regulations; and
                ``(3) if applicable, have identified a current agent for
            service of process in accordance with part 551 of title 49, Code
            of Federal Regulations.

        ``(f) <<NOTE: Coordination.>> Rulemaking.--In issuing regulations
    under this section, the Secretary shall seek to reduce duplicative
    requirements by coordinating with the Department of Homeland
    Security.''.
    SEC. 31209. PORT INSPECTIONS; SAMPLES FOR EXAMINATION OR TESTING.

        Section 30166(c) of title 49, United States Code, is amended--
                (1) in paragraph (2), by striking ``and'' at the end;
                (2) in paragraph (3)--

    [[Page 126 STAT. 763]]

                        (A) in subparagraph (A), by inserting ``(including
                    at United States ports of entry)'' after ``held for
                    introduction in interstate commerce''; and
                        (B) in subparagraph (D), by striking the period at
                    the end and inserting a semicolon; and
                (3) by adding at the end the following:
                ``(4) <<NOTE: Memorandum.>> shall enter into a memorandum of
            understanding with the Secretary of Homeland Security for
            inspections and sampling of motor vehicle equipment being
            offered for import to determine compliance with this chapter or
            a regulation or order issued under this chapter.''.

                   Subtitle C--Transparency and Accountability

    SEC. 31301. <<NOTE: 49 USC 30166 note.>> PUBLIC AVAILABILITY OF
                                RECALL INFORMATION.

        (a) Vehicle Recall Information.-- <<NOTE: Deadline.>> Not later than
    1 year after the date of enactment of this Act, the Secretary shall
    require that motor vehicle safety recall information--
                (1) <<NOTE: Web posting.>> be available to the public on the
            Internet;
                (2) be searchable by vehicle make and model and vehicle
            identification number;
                (3) be in a format that preserves consumer privacy; and
                (4) includes information about each recall that has not been
            completed for each vehicle.

        (b) Rulemaking.--The Secretary may initiate a rulemaking proceeding
    to require each manufacturer to provide the information described in
    subsection (a), with respect to that manufacturer's motor vehicles, on a
    publicly accessible Internet website. Any rules promulgated under this
    subsection--
                (1) shall limit the information that must be made available
            under this section to include only those recalls issued not more
            than 15 years prior to the date of enactment of this Act;
                (2) may require information under paragraph (1) to be
            provided to a dealer or an owner of a vehicle at no charge; and
                (3) shall permit a manufacturer a reasonable period of time
            after receiving information from a dealer with respect to a
            vehicle to update the information about the vehicle on the
            publicly accessible Internet website.

        (c) Promotion of Public Awareness.--The Secretary, in consultation
    with the heads of other relevant agencies, shall promote consumer
    awareness of the information made available to the public pursuant to
    this section.
    SEC. 31302. <<NOTE: 49 USC 30101 note.>> NATIONAL HIGHWAY TRAFFIC
                                SAFETY ADMINISTRATION OUTREACH TO
                                MANUFACTURER, DEALER, AND MECHANIC
                                PERSONNEL.

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

    [[Page 126 STAT. 764]]

    SEC. 31303. PUBLIC AVAILABILITY OF COMMUNICATIONS TO DEALERS.

        (a) Internet Accessibility.--Section 30166(f) of title 49, United
    States Code, is amended--
                (1) by striking ``A manufacturer shall give the Secretary of
            Transportation'' and inserting the following:
                ``(1) In general.--A manufacturer shall give the Secretary
            of Transportation, and the Secretary shall make available on a
            publicly accessible Internet website,''; and
                (2) by adding at the end the following:
                ``(2) Index.--Communications required to be submitted to the
            Secretary under this subsection shall be accompanied by an index
            to each communication, that--
                        ``(A) identifies the make, model, and model year of
                    the affected vehicles;
                        ``(B) includes a concise summary of the subject
                    matter of the communication; and
                        ``(C) shall be made available by the Secretary to
                    the public on the Internet in a searchable format.''.
    SEC. 31304. CORPORATE RESPONSIBILITY FOR NATIONAL HIGHWAY TRAFFIC
                                SAFETY ADMINISTRATION REPORTS.

        (a) In General.--Section 30166 of title 49, United States Code, is
    amended by adding at the end the following:
        ``(o) Corporate Responsibility for Reports.--
                ``(1) <<NOTE: Certification.>> In general.--The Secretary
            may promulgate rules requiring a senior official responsible for
            safety in any company submitting information to the Secretary in
            response to a request for information in a safety defect or
            compliance investigation under this chapter to certify that--
                        ``(A) the signing official has reviewed the
                    submission; and
                        ``(B) based on the official's knowledge, the
                    submission does not--
                              ``(i) contain any untrue statement of a
                          material fact; or
                              ``(ii) omit to state a material fact necessary
                          in order to make the statements made not
                          misleading, in light of the circumstances under
                          which such statements were made.
                ``(2) Notice.--The certification requirements of this
            section shall be clearly stated on any request for information
            under paragraph (1).''.

        (b) Civil Penalty.--Section 30165(a) of title 49, United States
    Code, is amended--
                (1) in paragraph (3), by striking ``A person'' and inserting
            ``Except as provided in paragraph (4), a person''; and
                (2) by adding at the end the following:
                ``(4) False or misleading reports.--A person who knowingly
            and willfully submits materially false or misleading information
            to the Secretary, after certifying the same information as
            accurate under the certification process established pursuant to
            section 30166(o), shall be subject to a civil penalty of not
            more than $5,000 per day. The maximum penalty under this
            paragraph for a related series of daily violations is
            $1,000,000.''.

    [[Page 126 STAT. 765]]

    SEC. 31305. PASSENGER MOTOR VEHICLE INFORMATION PROGRAM.

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

        (b) Information Included.--Section 32302(a) of title 49, United
    States Code, is amended--
                (1) in paragraph (2), by inserting ``, crash avoidance, and
            any other areas the Secretary determines will improve the safety
            of passenger motor vehicles'' after ``crashworthiness''; and
                (2) by striking paragraph (4).
    SEC. 31306. PROMOTION OF VEHICLE DEFECT REPORTING.

        Section 32302 of title 49, United States Code, is amended by adding
    at the end the following:
        ``(d) Motor Vehicle Defect Reporting Information.--
                ``(1) Rulemaking required.--Not later than 1 year after the
            date of enactment of the Motor Vehicle and Highway Safety
            Improvement Act of 2012, the Secretary shall prescribe
            regulations that require passenger motor vehicle manufacturers--
                        ``(A) to affix, in the glove compartment or in
                    another readily accessible location on the vehicle, a
                    sticker, decal, or other device that provides, in simple
                    and understandable language, information about how to
                    submit a safety-related motor vehicle defect complaint
                    to the National Highway Traffic Safety Administration;
                        ``(B) to prominently print the information described
                    in subparagraph (A) within the owner's manual; and
                        ``(C) to not place such information on the label
                    required under section 3 of the Automobile Information
                    Disclosure Act (15 U.S.C. 1232).
                ``(2) <<NOTE: Applicability.>> Application.--The
            requirements under paragraph (1) shall apply to passenger motor
            vehicles manufactured in any model year beginning more than 1
            year after the date on which a final rule is published under
            paragraph (1).''.
    SEC. 31307. WHISTLEBLOWER PROTECTIONS FOR MOTOR VEHICLE
                                MANUFACTURERS, PART SUPPLIERS, AND
                                DEALERSHIP EMPLOYEES.

        (a) In General.--Subchapter IV of chapter 301 of title 49, United
    States Code, is amended by adding at the end the following:
    ``Sec. 30171. Protection of employees providing motor vehicle
                        safety information

        ``(a) Discrimination Against Employees of Manufacturers, Part
    Suppliers, and Dealerships.--No motor vehicle manufacturer, part
    supplier, or dealership may discharge an employee or otherwise
    discriminate against an employee with respect to compensation, terms,
    conditions, or privileges of employment because

    [[Page 126 STAT. 766]]

    the employee (or any person acting pursuant to a request of the
    employee)--
                ``(1) provided, caused to be provided, or is about to
            provide (with any knowledge of the employer) or cause to be
            provided to the employer or the Secretary of Transportation
            information relating to any motor vehicle defect, noncompliance,
            or any violation or alleged violation of any notification or
            reporting requirement of this chapter;
                ``(2) has filed, caused to be filed, or is about to file
            (with any knowledge of the employer) or cause to be filed a
            proceeding relating to any violation or alleged violation of any
            motor vehicle defect, noncompliance, or any violation or alleged
            violation of any notification or reporting requirement of this
            chapter;
                ``(3) testified or is about to testify in such a proceeding;
                ``(4) assisted or participated or is about to assist or
            participate in such a proceeding; or
                ``(5) objected to, or refused to participate in, any
            activity that the employee reasonably believed to be in
            violation of any provision of chapter 301 of this title, or any
            order, rule, regulation, standard, or ban under such provision.

        ``(b) <<NOTE: Deadlines.>> Complaint Procedure.--
                ``(1) Filing and notification.--A person who believes that
            he or she has been discharged or otherwise discriminated against
            by any person in violation of subsection (a) may file (or have
            any person file on his or her behalf), not later than 180 days
            after the date on which such violation occurs, a complaint with
            the Secretary of Labor (hereinafter in this section referred to
            as the `Secretary') alleging such discharge or discrimination.
            Upon receipt of such a complaint, the Secretary shall notify, in
            writing, the person named in the complaint of the filing of the
            complaint, of the allegations contained in the complaint, of the
            substance of evidence supporting the complaint, and of the
            opportunities that will be afforded to such person under
            paragraph (2).
                ``(2) Investigation; preliminary order.--
                        ``(A) In general.--Not later than 60
                    days <<NOTE: Notifications.>>  after the date of receipt
                    of a complaint filed under paragraph (1) and after
                    affording the person named in the complaint an
                    opportunity to submit to the Secretary a written
                    response to the complaint and an opportunity to meet
                    with a representative of the Secretary to present
                    statements from witnesses, the Secretary shall conduct
                    an investigation and determine whether there is
                    reasonable cause to believe that the complaint has merit
                    and notify, in writing, the complainant and the person
                    alleged to have committed a violation of subsection (a)
                    of the Secretary's findings. If the Secretary concludes
                    that there is a reasonable cause to believe that a
                    violation of subsection (a) has occurred, the Secretary
                    shall accompany the Secretary's findings with a
                    preliminary order providing the relief prescribed by
                    paragraph (3)(B). Not later than 30 days after the date
                    of notification of findings under this paragraph, either
                    the person alleged to have committed the violation or
                    the complainant may file objections to the findings or
                    preliminary order, or both, and request a hearing on the
                    record. The filing of such objections shall not operate
                    to

    [[Page 126 STAT. 767]]

                    stay any reinstatement remedy contained in the
                    preliminary order. Such hearings shall be conducted
                    expeditiously. If a hearing is not requested in such 30-
                    day <<NOTE: Time period.>>  period, the preliminary
                    order shall be deemed a final order that is not subject
                    to judicial review.
                        ``(B) Requirements.--
                              ``(i) Required showing by complainant.--The
                          Secretary shall dismiss a complaint filed under
                          this subsection and shall not conduct an
                          investigation otherwise required under
                          subparagraph (A) unless the complainant makes a
                          prima facie showing that any behavior described in
                          paragraphs (1) through (5) of subsection (a) was a
                          contributing factor in the unfavorable personnel
                          action alleged in the complaint.
                              ``(ii) Showing by employer.--Notwithstanding a
                          finding by the Secretary that the complainant has
                          made the showing required under clause (i), no
                          investigation otherwise required under
                          subparagraph (A) shall be conducted if the
                          employer demonstrates, by clear and convincing
                          evidence, that the employer would have taken the
                          same unfavorable personnel action in the absence
                          of that behavior.
                              ``(iii) Criteria for determination by
                          secretary.--The Secretary may determine that a
                          violation of subsection (a) has occurred only if
                          the complainant demonstrates that any behavior
                          described in paragraphs (1) through (5) of
                          subsection (a) was a contributing factor in the
                          unfavorable personnel action alleged in the
                          complaint.
                              ``(iv) Prohibition.--Relief may not be ordered
                          under subparagraph (A) if the employer
                          demonstrates, by clear and convincing evidence,
                          that the employer would have taken the same
                          unfavorable personnel action in the absence of
                          that behavior.
                ``(3) Final order.--
                        ``(A) Deadline for issuance; settlement
                    agreements.--Not later than 120 days after the date of
                    conclusion of a hearing under paragraph (2), the
                    Secretary shall issue a final order providing the relief
                    prescribed by this paragraph or denying the complaint.
                    At any time before issuance of a final order, a
                    proceeding under this subsection may be terminated on
                    the basis of a settlement agreement entered into by the
                    Secretary, the complainant, and the person alleged to
                    have committed the violation.
                        ``(B) Remedy.--If, in response to a complaint filed
                    under paragraph (1), the Secretary determines that a
                    violation of subsection (a) has occurred, the Secretary
                    shall order the person who committed such violation--
                              ``(i) to take affirmative action to abate the
                          violation;
                              ``(ii) to reinstate the complainant to his or
                          her former position together with the compensation
                          (including back pay) and restore the terms,
                          conditions, and privileges associated with his or
                          her employment; and
                              ``(iii) to provide compensatory damages to the
                          complainant.

    [[Page 126 STAT. 768]]

                        ``(C) Attorneys' fees.--If such an order is issued
                    under this paragraph, the Secretary, at the request of
                    the complainant, shall assess against the person against
                    whom the order is issued a sum equal to the aggregate
                    amount of all costs and expenses (including attorneys'
                    and expert witness fees) reasonably incurred, as
                    determined by the Secretary, by the complainant for, or
                    in connection with, bringing the complaint upon which
                    the order was issued.
                        ``(D) Frivolous complaints.--If the Secretary
                    determines that a complaint under paragraph (1) is
                    frivolous or has been brought in bad faith, the
                    Secretary may award to the prevailing employer a
                    reasonable attorney's fee not exceeding $1,000.
                        ``(E) <<NOTE: Deadline.>> De novo review.--With
                    respect to a complaint under paragraph (1), if the
                    Secretary has not issued a final decision within 210
                    days after the filing of the complaint and if the delay
                    is not due to the bad faith of the employee, the
                    employee may bring an original action at law or equity
                    for de novo review in the appropriate district court of
                    the United States, which shall have jurisdiction over
                    such an action without regard to the amount in
                    controversy, and which action shall, at the request of
                    either party to the action, be tried by the court with a
                    jury. The action shall be governed by the same legal
                    burdens of proof specified in paragraph (2)(B) for
                    review by the Secretary.
                ``(4) Review.--
                        ``(A) Appeal to court of appeals.--Any person
                    adversely affected or aggrieved by an order issued under
                    paragraph (3) may obtain review of the order in the
                    United States Court of Appeals for the circuit in which
                    the violation, with respect to which the order was
                    issued, allegedly occurred or the circuit in which the
                    complainant resided on the date of such
                    violation. <<NOTE: Deadline.>> The petition for review
                    shall be filed not later than 60 days after the date of
                    the issuance of the final order of the Secretary. Review
                    shall conform to chapter 7 of title 5. The commencement
                    of proceedings under this subparagraph shall not, unless
                    ordered by the court, operate as a stay of the order.
                        ``(B) Limitation on collateral attack.--An order of
                    the Secretary with respect to which review could have
                    been obtained under subparagraph (A) shall not be
                    subject to judicial review in any criminal or other
                    civil proceeding.
                ``(5) Enforcement of order by secretary.--Whenever any
            person fails to comply with an order issued under paragraph (3),
            the Secretary may file a civil action in the United States
            district court for the district in which the violation was found
            to occur to enforce such order. In actions brought under this
            paragraph, the district courts shall have jurisdiction to grant
            all appropriate relief, including injunctive relief and
            compensatory damages.
                ``(6) Enforcement of order by parties.--
                        ``(A) Commencement of action.--A person on whose
                    behalf an order was issued under paragraph (3) may
                    commence a civil action against the person to whom such
                    order was issued to require compliance with such order.

    [[Page 126 STAT. 769]]

                    The appropriate United States district court shall have
                    jurisdiction, without regard to the amount in
                    controversy or the citizenship of the parties, to
                    enforce such order.
                        ``(B) Attorney fees.--The court, in issuing any
                    final order under this paragraph, may award costs of
                    litigation (including reasonable attorney and expert
                    witness fees) to any party whenever the court determines
                    such award is appropriate.

        ``(c) Mandamus.--Any nondiscretionary duty imposed under this
    section shall be enforceable in a mandamus proceeding brought under
    section 1361 of title 28.
        ``(d) Nonapplicability To Deliberate Violations.--Subsection (a)
    shall not apply with respect to an employee of a motor vehicle
    manufacturer, part supplier, or dealership who, acting without direction
    from such motor vehicle manufacturer, part supplier, or dealership (or
    such person's agent), deliberately causes a violation of any requirement
    relating to motor vehicle safety under this chapter.''.
        (b) Government Accountability Office Report.--Not later than 2 years
    after the date of enactment of this Act, the Comptroller General of the
    United States shall--
                (1) <<NOTE: Study.>> conduct a study of the whistleblower
            protections established by law with respect to this program, and
            update its study of other such programs administered by the
            Secretary of Transportation; and
                (2) submit to Congress a report of the results of the study
            under paragraph (1), including--
                        (A) an identification of the differences between the
                    provisions applicable to different programs, the number
                    of claims brought pursuant to each provision, and the
                    outcome of each claim; and
                        (B) any recommendations for program changes that the
                    Comptroller General considers appropriate based on the
                    study under paragraph (1).

        (c) Conforming Amendment.--The table of sections for chapter 301 of
    title 49, United States Code, is amended by inserting after the item
    relating to section 30170 the following:

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

    SEC. 31308. ANTI-REVOLVING DOOR.

        (a) Study of Department of Transportation Policies on Official
    Communication With Former Motor Vehicle Safety Issue Employees.--
    <<NOTE: Deadline.>> Not later than 1 year after the date of enactment of
    this Act, the Inspector General of the Department of Transportation
    shall--
                (1) <<NOTE: Review.>> review the Department of
            Transportation's policies and procedures applicable to official
            communication with former employees concerning motor vehicle
            safety compliance matters for which they had responsibility
            during the last 12 months of their tenure at the Department,
            including any limitations on the ability of such employees to
            submit comments, or otherwise communicate directly with the
            Department, on motor vehicle safety issues; and
                (2) <<NOTE: Reports.>> submit a report to the Committee on
            Commerce, Science, and Transportation of the Senate and the
            Committee on Energy and Commerce of the House of Representatives
            that contains

    [[Page 126 STAT. 770]]

            the Inspector General's findings, conclusions, and
            recommendations for strengthening those policies and procedures
            to minimize the risk of undue influence without compromising the
            ability of the Department to employ and retain highly qualified
            individuals for such responsibilities.

        (b) <<NOTE: 49 USC 323 note.>> Post-Employment Policy Study.--
                (1) In general.--The Inspector General of the Department of
            Transportation shall conduct a study of the Department's
            policies relating to post-employment restrictions on employees
            who perform functions related to transportation safety.
                (2) Report.--Not later than 1 year after the date of
            enactment of this Act, the Inspector General shall submit a
            report containing the results of the study conducted under
            paragraph (1) to--
                        (A) the Committee on Commerce, Science, and
                    Transportation of the Senate;
                        (B) the Committee on Energy and Commerce of the
                    House of Representatives; and
                        (C) the Secretary of Transportation.
                (3) <<NOTE: Review.>> Use of results.--The Secretary of
            Transportation shall review the results of the study conducted
            under paragraph (1) and take whatever action the Secretary
            determines to be appropriate.
    SEC. 31309. STUDY OF CRASH DATA COLLECTION.

        (a) <<NOTE: Deadline. Reports.>> In General.--Not later than 1 year
    after the date of enactment of this Act, the Secretary shall submit a
    report to the Committee on Commerce, Science, and Transportation of the
    Senate and the Committee on Energy and Commerce of the House of
    Representatives regarding the quality of data collected through the
    National Automotive Sampling System, including the Special Crash
    Investigations Program.

        (b) Review.--The Administrator of the National Highway Traffic
    Safety Administration (referred to in this section as the
    ``Administration'') shall conduct a comprehensive review of the data
    elements collected from each crash to determine if additional data
    should be collected. The review under this subsection shall include
    input from interested parties, including suppliers, automakers, safety
    advocates, the medical community, and research organizations.
        (c) Contents.--The report issued under this section shall include--
                (1) the analysis and conclusions the Administration can
            reach from the amount of motor vehicle crash data collected in a
            given year;
                (2) the additional analysis and conclusions the
            Administration could reach if more crash investigations were
            conducted each year;
                (3) the number of investigations per year that would allow
            for optimal data analysis and crash information;
                (4) the results of the comprehensive review conducted
            pursuant to subsection (b);
                (5) the incremental costs of collecting and analyzing
            additional data, as well as data from additional crashes;
                (6) the potential for obtaining private funding for all or a
            portion of the costs under paragraph (5);

    [[Page 126 STAT. 771]]

                (7) the potential for recovering any additional costs from
            high volume users of the data, while continuing to make the data
            available to the general public free of charge;
                (8) the advantages or disadvantages of expanding collection
            of non-crash data instead of crash data;
                (9) recommendations for improvements to the Administration's
            data collection program; and
                (10) the resources needed by the Administration to implement
            such recommendations.
    SEC. 31310. UPDATE MEANS OF PROVIDING NOTIFICATION; IMPROVING
                                EFFICACY OF RECALLS.

        (a) Update of Means of Providing Notification.--Section 30119(d) of
    title 49, United States Code, is amended--
                (1) in paragraph (1), by striking ``by first class mail''
            and inserting ``in the manner prescribed by the Secretary, by
            regulation'';
                (2) in paragraph (2)--
                        (A) by striking ``(except a tire) shall be sent by
                    first class mail'' and inserting ``shall be sent in the
                    manner prescribed by the Secretary, by regulation,'';
                    and
                        (B) by striking the second sentence;
                (3) in paragraph (3)--
                        (A) by striking the first sentence;
                        (B) by inserting ``to the notification required
                    under paragraphs (1) and (2)'' after ``addition''; and
                        (C) by inserting ``by the manufacturer'' after
                    ``given''; and
                (4) in paragraph (4), by striking ``by certified mail or
            quicker means if available'' and inserting ``in the manner
            prescribed by the Secretary, by regulation''.

        (b) Improving Efficacy of Recalls.--Section 30119(e) of title 49,
    United States Code, is amended--
                (1) in the subsection heading, by striking ``Second'' and
            inserting ``Additional'';
                (2) by striking ``If the Secretary'' and inserting the
            following:
                ``(1) Second notification.--If the Secretary''; and
                (3) by adding at the end the following:
                ``(2) Additional notifications.--If the Secretary
            determines, after taking into account the severity of the defect
            or noncompliance, that the second notification by a manufacturer
            does not result in an adequate number of motor vehicles or items
            of replacement equipment being returned for remedy, the
            Secretary may order the manufacturer--
                        ``(A)(i) to send additional notifications in the
                    manner prescribed by the Secretary, by regulation; or
                        ``(ii) to take additional steps to locate and notify
                    each person registered under State law as the owner or
                    lessee or the most recent purchaser or lessee, as
                    appropriate; and
                        ``(B) to emphasize the magnitude of the safety risk
                    caused by the defect or noncompliance in such
                    notification.''.
    SEC. 31311. EXPANDING CHOICES OF REMEDY AVAILABLE TO MANUFACTURERS
                                OF REPLACEMENT EQUIPMENT.

        Section 30120 of title 49, United States Code, is amended--

    [[Page 126 STAT. 772]]

                (1) in subsection (a)(1), by amending subparagraph (B) to
            read as follows:
                        ``(B) if replacement equipment, by repairing the
                    equipment, replacing the equipment with identical or
                    reasonably equivalent equipment, or by refunding the
                    purchase price.'';
                (2) in the heading of subsection (i), by adding ``of New
            Vehicles or Equipment'' at the end; and
                (3) in the heading of subsection (j), by striking
            ``replaced'' and inserting ``replacement''.
    SEC. 31312. RECALL OBLIGATIONS AND BANKRUPTCY OF MANUFACTURER.

        (a) In General.--Chapter 301 of title 49, United States Code, is
    amended by inserting the following after section 30120:
    ``Sec. 30120A. Recall obligations and bankruptcy of a manufacturer

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

        (b) Conforming Amendment.--The chapter analysis of chapter 301 of
    title 49, United States Code, is amended by inserting after the item
    relating to section 30120 the following:

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

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

        Chapter 331 of title 49, United States Code, is amended--
                (1) in the chapter analysis, by striking the item relating
            to section 33112; and
                (2) by striking section 33112.
    SEC. 31314. MONRONEY STICKER TO PERMIT ADDITIONAL SAFETY RATING
                                CATEGORIES.

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

              Subtitle D--Vehicle Electronics and Safety Standards

    SEC. 31401. <<NOTE: 49 USC 105 note.>> NATIONAL HIGHWAY TRAFFIC
                                SAFETY ADMINISTRATION ELECTRONICS,
                                SOFTWARE, AND ENGINEERING EXPERTISE.

        (a) <<NOTE: Establishment.>> Council for Vehicle Electronics,
    Vehicle Software, and Emerging Technologies.--

    [[Page 126 STAT. 773]]

                (1) In general.--The Secretary shall establish, within the
            National Highway Traffic Safety Administration, a Council for
            Vehicle Electronics, Vehicle Software, and Emerging Technologies
            (referred to in this section as the ``Council'') to build,
            integrate, and aggregate the Administration's expertise in
            passenger motor vehicle electronics and other new and emerging
            technologies.
                (2) Implementation of roadmap.--The Council shall research
            the inclusion of emerging lightweight plastic and composite
            technologies in motor vehicles to increase fuel efficiency,
            lower emissions, meet fuel economy standards, and enhance
            passenger motor vehicle safety through continued utilization of
            the Administration's Plastic and Composite Intensive Vehicle
            Safety Roadmap (Report No. DOT HS 810 863).
                (3) Intra-agency coordination.--The Council shall coordinate
            with all components of the Administration responsible for
            vehicle safety, including research and development, rulemaking,
            and defects investigation.

        (b) Honors Recruitment Program.--
                (1) Establishment.--The Secretary shall establish, within
            the National Highway Traffic Safety Administration, an honors
            program for engineering students, computer science students, and
            other students interested in vehicle safety that will enable
            such students to train with engineers and other safety officials
            for careers in vehicle safety.
                (2) Stipend.--The Secretary is authorized to provide a
            stipend to any student during the student's participation in the
            program established under paragraph (1).

        (c) Assessment.--The Council, in consultation with affected
    stakeholders, shall periodically assess the implications of emerging
    safety technologies in passenger motor vehicles, including the effect of
    such technologies on consumers, product availability, and cost.
    SEC. 31402. ELECTRONIC SYSTEMS PERFORMANCE.

        (a) <<NOTE: Deadline.>> In General.--Not later than 2 years after
    the date of enactment of this Act, the Secretary shall complete an
    examination of the need for safety standards with regard to electronic
    systems in passenger motor vehicles. In conducting this examination, the
    Secretary shall--
                (1) consider the electronic components, the interaction of
            electronic components, the security needs for those electronic
            systems to prevent unauthorized access, and the effect of
            surrounding environments on the electronic systems; and
                (2) allow for public comment.

        (b) Report.--Upon completion of the examination under subsection
    (a), the Secretary shall submit a report on the highest priority areas
    for safety with regard to the electronic systems to the Committee on
    Commerce, Science, and Transportation of the Senate and the Committee on
    Energy and Commerce of the House of Representatives.

                       Subtitle E--Child Safety Standards

    SEC. <<NOTE: 49 USC 30127 note.>> 31501. CHILD SAFETY SEATS.

        (a) <<NOTE: Deadline. Regulations.>> Side Impact Crashes.--Not later
    than 2 years after the date of enactment of this Act, the Secretary
    shall issue a final

    [[Page 126 STAT. 774]]

    rule amending Federal Motor Vehicle Safety Standard Number 213 to
    improve the protection of children seated in child restraint systems
    during side impact crashes.

        (b) <<NOTE: Deadlines.>> Frontal Impact Test Parameters.--
                (1) Commencement.--Not later than 2 years after the date of
            enactment of this Act, the Secretary shall commence a rulemaking
            proceeding to amend the standard seat assembly specifications
            under Federal Motor Vehicle Safety Standard Number 213 to better
            simulate a single representative motor vehicle rear seat.
                (2) Final rule.--Not later than 4 years after the date of
            enactment of this Act, the Secretary shall issue a final rule
            pursuant to paragraph (1).
    SEC. 31502. <<NOTE: Deadlines. 49 USC 30127 note.>> CHILD
                                RESTRAINT ANCHORAGE SYSTEMS.

        (a) Initiation of Rulemaking Proceeding.--Not later than 1 year
    after the date of enactment of this Act, the Secretary shall initiate a
    rulemaking proceeding to amend Federal Motor Vehicle Safety Standard
    Number 225 (relating to child restraint anchorage systems) to improve
    the ease of use for lower anchorages and tethers in all rear seat
    seating positions if such anchorages and tethers are feasible.
        (b) Final Rule.--
                (1) In general.--Except as provided under paragraph (2) and
            section 31505, the Secretary shall issue a final rule under
            subsection (a) not later than 3 years after the date of
            enactment of this Act.
                (2) Report.--If the Secretary determines that an amendment
            to the standard referred to in subsection (a) does not meet the
            requirements and considerations set forth in subsections (a) and
            (b) of section 30111 of title 49, United States Code, the
            Secretary shall submit a report describing the reasons for not
            prescribing such a standard to--
                        (A) the Committee on Commerce, Science, and
                    Transportation of the Senate; and
                        (B) the Committee on Energy and Commerce of the
                    House of Representatives.
    SEC. 31503. <<NOTE: Deadlines. 49 USC 30127 note.>> REAR SEAT BELT
                                REMINDERS.

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

    [[Page 126 STAT. 775]]

                        (B) the Committee on Energy and Commerce of the
                    House of Representatives.
    SEC. 31504. <<NOTE: 49 USC 30111 note.>> UNATTENDED PASSENGER
                                REMINDERS.

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

        (c) Coordination With Other Agencies.--The Secretary may collaborate
    with other Federal agencies in conducting the research under this
    section.
    SEC. 31505. <<NOTE: 49 USC 30127 note.>> NEW DEADLINE.

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

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

    SEC. 31601. <<NOTE: 49 USC 30111 note.>> RULEMAKING ON VISIBILITY
                                OF AGRICULTURAL EQUIPMENT.

        (a) Definitions.--In this section:
                (1) Agricultural equipment.--The term ``agricultural
            equipment'' has the meaning given the term ``agricultural field
            equipment'' in ASABE Standard 390.4, entitled ``Definitions and
            Classifications of Agricultural Field Equipment'', which was
            published in January 2005 by the American Society of Agriculture
            and Biological Engineers, or any successor standard.
                (2) Public road.--The term ``public road'' has the meaning
            given the term in section 101(a)(27) of title 23, United States
            Code.

        (b) Rulemaking.--
                (1) <<NOTE: Deadline.>> In general.--Not later than 2 years
            after the date of enactment of this Act, the Secretary of
            Transportation, after consultation with representatives of the
            American Society of Agricultural and Biological Engineers and
            appropriate Federal agencies, and with other appropriate
            persons, shall promulgate a rule to improve the daytime and
            nighttime visibility of agricultural equipment that may be
            operated on a public road.
                (2) Minimum standards.--The rule promulgated pursuant to
            this subsection shall--

    [[Page 126 STAT. 776]]

                        (A) establish minimum lighting and marking standards
                    for applicable agricultural equipment manufactured at
                    least 1 year after the date on which such rule is
                    promulgated; and
                        (B) provide for the methods, materials,
                    specifications, and equipment to be employed to comply
                    with such standards, which shall be equivalent to ASABE
                    Standard 279.14, entitled ``Lighting and Marking of
                    Agricultural Equipment on Highways'', which was
                    published in July 2008 by the American Society of
                    Agricultural and Biological Engineers, or any successor
                    standard.

        (c) <<NOTE: Time period.>> Review.--Not less frequently than once
    every 5 years, the Secretary of Transportation shall--
                (1) review the standards established pursuant to subsection
            (b); and
                (2) revise such standards to reflect the revision of ASABE
            Standard 279 that is in effect at the time of such review.

        (d) Limitations.--
                (1) Compliance with successor standards.--Any rule
            promulgated pursuant to this section may not prohibit the
            operation on public roads of agricultural equipment that is
            equipped in accordance with any adopted revision of ASABE
            Standard 279 that is later than the revision of such standard
            that was referenced during the promulgation of the rule.
                (2) No retrofitting required.--Any rule promulgated pursuant
            to this section may not require the retrofitting of agricultural
            equipment that was manufactured before the date on which the
            lighting and marking standards are enforceable under subsection
            (b)(2)(A).
                (3) No effect on additional materials and equipment.--Any
            rule promulgated pursuant to this section may not prohibit the
            operation on public roads of agricultural equipment that is
            equipped with materials or equipment that are in addition to the
            minimum materials and equipment specified in the standard upon
            which such rule is based.

     TITLE II-- <<NOTE: Commercial Motor Vehicle Safety Enhancement Act of
    2012.>> COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012
    SEC. 32001. <<NOTE: 49 USC 30101 note.>> SHORT TITLE.

        This title may be cited as the ``Commercial Motor Vehicle Safety
    Enhancement Act of 2012''.
    SEC. 32002. REFERENCES TO TITLE 49, UNITED STATES CODE.

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

    [[Page 126 STAT. 777]]

                Subtitle A--Commercial Motor Vehicle Registration

    SEC. 32101. REGISTRATION OF MOTOR CARRIERS.

        (a) Registration Requirements.--Section 13902(a)(1) is amended to
    read as follows:
                ``(1) In general.--Except as otherwise provided in this
            section, the Secretary of Transportation shall register a person
            to provide transportation subject to jurisdiction under
            subchapter I of chapter 135 as a motor carrier only if the
            Secretary determines that the person--
                        ``(A) is willing and able to comply with--
                              ``(i) this part and the applicable regulations
                          of the Secretary and the Board;
                              ``(ii) any safety regulations imposed by the
                          Secretary;
                              ``(iii) the duties of employers and employees
                          established by the Secretary under section 31135;
                              ``(iv) the safety fitness requirements
                          established by the Secretary under section 31144;
                              ``(v) the accessibility requirements
                          established by the Secretary under subpart H of
                          part 37 of title 49, Code of Federal Regulations
                          (or successor regulations), for transportation
                          provided by an over-the-road bus; and
                              ``(vi) the minimum financial responsibility
                          requirements established by the Secretary under
                          sections 13906, 31138, and 31139;
                        ``(B) has been issued a USDOT number under section
                    31134;
                        ``(C) has disclosed any relationship involving
                    common ownership, common management, common control, or
                    common familial relationship between that person and any
                    other motor carrier, freight forwarder, or broker, or
                    any other applicant for motor carrier, freight
                    forwarder, or broker registration, if the relationship
                    occurred in the 3-year period preceding the date of the
                    filing of the application for registration; and
                        ``(D) after the Secretary establishes a written
                    proficiency examination pursuant to section 32101(b) of
                    the Commercial Motor Vehicle Safety Enhancement Act of
                    2012, has passed the written proficiency examination.''.

        (b) <<NOTE: 49 USC 13902 note.>> Written Proficiency Examination.--
                Not <<NOTE: Deadline.>> later than 18 months after the date
            of enactment of this Act, the Secretary shall establish through
            a rulemaking a written proficiency examination for applicant
            motor carriers pursuant to section 13902(a)(1)(D) of title 49,
            United States Code. The written proficiency examination shall
            test a person's knowledge of applicable safety regulations,
            standards, and orders of the Federal government.

        (c) Conforming Amendment.--Section 210(b) of the Motor Carrier
    Safety Improvement Act of 1999 (49 U.S.C. 31144 note) is amended--
                (1) by inserting ``, commercial regulations, and provisions
            of subpart H of part 37 of title 49, Code of Federal
            Regulations,

    [[Page 126 STAT. 778]]

            or successor regulations'' after ``applicable safety
            regulations''; and
                (2) by striking ``consider the establishment of'' and
            inserting ``establish''.

        (d) Transportation of Agricultural Commodities and Farm Supplies.--
    Section 229(a)(1) of the Motor Carrier Safety Improvement Act of 1999
    (49 U.S.C. 31136 note) is amended to read as follows:
                ``(1) Transportation of agricultural commodities and farm
            supplies.--Regulations prescribed by the Secretary under
            sections 31136 and 31502 regarding maximum driving and on-duty
            time for drivers used by motor carriers shall not apply during
            planting and harvest periods, as determined by each State, to--
                        ``(A) drivers transporting agricultural commodities
                    from the source of the agricultural commodities to a
                    location within a 150 air-mile radius from the source;
                        ``(B) drivers transporting farm supplies for
                    agricultural purposes from a wholesale or retail
                    distribution point of the farm supplies to a farm or
                    other location where the farm supplies are intended to
                    be used within a 150 air-mile radius from the
                    distribution point; or
                        ``(C) drivers transporting farm supplies for
                    agricultural purposes from a wholesale distribution
                    point of the farm supplies to a retail distribution
                    point of the farm supplies within a 150 air-mile radius
                    from the wholesale distribution point.''.
    SEC. 32102. SAFETY FITNESS OF NEW OPERATORS.

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

        (b) <<NOTE: 49 USC 31144 note.>> Effective Date.--The amendments
    made by subsection (a) shall take effect 1 year after the date of
    enactment of this Act.
    SEC. 32103. REINCARNATED CARRIERS.

        (a) Effective Periods of Registration.--
                (1) Suspensions, amendments, and revocations.--Section
            13905(d) is amended--
                        (A) by redesignating paragraph (2) as paragraph (4);
                        (B) by striking paragraph (1) and inserting the
                    following:
                ``(1) Applications.--On application of the registrant, the
            Secretary may amend or revoke a registration.

    [[Page 126 STAT. 779]]

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

    [[Page 126 STAT. 780]]

            disclose a material fact in an application for registration in
            accordance with subsection (d)(2)(C),'' after ``registrant,''.

        (b) Information Systems.--Section 31106(a)(3) is amended--
                (1) in subparagraph (F), by striking ``and'' at the end;
                (2) in subparagraph (G), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following:
                        ``(H) determine whether a person or employer is or
                    was related, through common ownership, common
                    management, common control, or common familial
                    relationship, to any other person, employer, or any
                    other applicant for registration under section 13902 or
                    31134.''.
    SEC. 32104. <<NOTE: 49 USC 13903 note.>> FINANCIAL RESPONSIBILITY
                                REQUIREMENTS.

        Not <<NOTE: Deadline. Reports.>> later than 6 months after the date
    of enactment of this Act, and every 4 years thereafter, the Secretary
    shall--
                (1) issue a report on the appropriateness of--
                        (A) the current minimum financial responsibility
                    requirements under sections 31138 and 31139 of title 49,
                    United States Code; and
                        (B) the current bond and insurance requirements
                    under sections 13904(f), 13903, and 13906 of title 49,
                    United States Code; and
                (2) submit the report issued under paragraph (1) to the
            Committee on Commerce, Science, and Transportation of the Senate
            and the Committee on Transportation and Infrastructure of the
            House of Representatives.
    SEC. 32105. USDOT NUMBER REGISTRATION REQUIREMENT.

        (a) In General.--Chapter 311 is amended by inserting after section
    31133 the following:
    ``Sec. 31134. Requirement for registration and USDOT number

        ``(a) In General.--Upon application, and subject to subsections (b)
    and (c), the Secretary shall register an employer or person subject to
    the safety jurisdiction of this subchapter. An employer or person may
    operate a commercial motor vehicle in interstate commerce only if the
    employer or person is registered by the Secretary under this section and
    receives a USDOT number. Nothing in this section shall preclude
    registration by the Secretary of an employer or person not engaged in
    interstate commerce. An employer or person subject to jurisdiction under
    subchapter I of chapter 135 of this title shall apply for commercial
    registration under section 13902 of this title.
        ``(b) Withholding Registration.--The Secretary shall register an
    employer or person under subsection (a) only if the Secretary determines
    that--
                ``(1) the employer or person seeking registration is willing
            and able to comply with the requirements of this subchapter and
            the regulations prescribed thereunder and chapter 51 and the
            regulations prescribed thereunder;
                ``(2)(A) <<NOTE: Time period.>> during the 3-year period
            before the date of the filing of the application, the employer
            or person is not or was not related through common ownership,
            common management, common control, or common familial
            relationship to any other person or applicant for registration
            subject to this subchapter who, during such 3-year period, is or
            was unfit,

    [[Page 126 STAT. 781]]

            unwilling, or unable to comply with the requirements listed in
            subsection (b)(1); or
                ``(3) the employer or person has disclosed to the Secretary
            any relationship involving common ownership, common management,
            common control, or common familial relationship to any other
            person or applicant for registration subject to this subchapter.

        ``(c) Revocation or Suspension of Registration.--
    <<NOTE: Notification.>> The Secretary shall revoke the registration of
    an employer or person issued under subsection (a) after notice and an
    opportunity for a proceeding, or suspend the registration after giving
    notice of the suspension to the employer or person, if the Secretary
    determines that--
                ``(1) the employer's or person's authority to operate
            pursuant to chapter 139 of this title is subject to revocation
            or suspension under sections 13905(d)(1) or 13905(f) of this
            title;
                ``(2) the employer or person has knowingly failed to comply
            with the requirements listed in subsection (b)(1);
                ``(3) the employer or person has not disclosed any
            relationship through common ownership, common management, common
            control, or common familial relationship to any other person or
            applicant for registration subject to this subchapter that the
            Secretary determines is or was unfit, unwilling, or unable to
            comply with the requirements listed in subsection (b)(1);
                ``(4) the employer or person refused to submit to the safety
            review required by section 31144(g) of this title.

        ``(d) <<NOTE: Deadline.>> Periodic Registration Update.--The
    Secretary may require an employer to update a registration under this
    section not later than 30 days after a change in the employer's address,
    other contact information, officers, process agent, or other essential
    information, as determined by the Secretary.

        ``(e) State Authority.--Nothing in this section shall be construed
    as affecting the authority of a State to issue a Department of
    Transportation number under State law to a person operating in
    intrastate commerce.''.
        (b) Conforming Amendment.--The analysis of chapter 311 is amended by
    inserting after the item relating to section 31133 the following:

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

    SEC. 32106. REGISTRATION FEE SYSTEM.

        Section 13908(d)(1) is amended by striking ``but shall not exceed
    $300''.
    SEC. 32107. REGISTRATION UPDATE.

        (a) Motor Carrier Update.--Section 13902 is amended by adding at the
    end the following:
        ``(h) <<NOTE: Deadlines.>> Update of Registration.--
                ``(1) In general.--The Secretary shall require a registrant
            to update its registration under this section not later than 30
            days after a change in the registrant's address, other contact
            information, officers, process agent, or other essential
            information, as determined by the Secretary.
                ``(2) Motor carriers of passengers.--In addition to the
            requirements of paragraph (1), the Secretary shall require a

    [[Page 126 STAT. 782]]

            motor carrier of passengers to update its registration
            information, including numbers of vehicles, annual mileage, and
            individuals responsible for compliance with Federal safety
            regulations quarterly for the first 2 years after being issued a
            registration under this section.''.

        (b) Freight Forwarder Update.--Section 13903 is amended by adding at
    the end the following:
        ``(c) <<NOTE: Deadline.>> Update of Registration.--The Secretary
    shall require a freight forwarder to update its registration under this
    section not later than 30 days after a change in the freight forwarder's
    address, other contact information, officers, process agent, or other
    essential information, as determined by the Secretary.''.

        (c) Broker Update.--Section 13904 is amended by adding at the end
    the following:
        ``(e) <<NOTE: Deadline.>> Update of Registration.--The Secretary
    shall require a broker to update its registration under this section not
    later than 30 days after a change in the broker's address, other contact
    information, officers, process agent, or other essential information, as
    determined by the Secretary.''.
    SEC. 32108. INCREASED PENALTIES FOR OPERATING WITHOUT
                                REGISTRATION.

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

        (b) Transportation of Hazardous Wastes.--Section 14901(b) is amended
    by striking ``not to exceed $20,000'' and inserting ``not less than
    $20,000, but not to exceed $40,000''.
    SEC. 32109. REVOCATION OF REGISTRATION FOR IMMINENT HAZARD.

        Section 13905(f)(2) is amended to read as follows:
                ``(2) Imminent hazard to public health.--Notwithstanding
            subchapter II of chapter 5 of title 5, the Secretary shall
            revoke the registration of a motor carrier if the Secretary
            finds that the carrier is or was conducting unsafe operations
            that are or were an imminent hazard to public health or
            property.''.
    SEC. 32110. REVOCATION OF REGISTRATION AND OTHER PENALTIES FOR
                                FAILURE TO RESPOND TO SUBPOENA.

        Section 525 is amended--
                (1) by striking ``subpenas'' in the section heading and
            inserting ``subpoenas'';
                (2) by striking ``subpena'' and inserting ``subpoena'';
                (3) by striking ``$100'' and inserting ``$1,000'';
                (4) by striking ``$5,000'' and inserting ``$10,000''; and
                (5) by adding at the end the following:

        ``The Secretary may withhold, suspend, amend, or revoke any part of
    the registration of a person required to register under chapter 139 for
    failing to obey a subpoena or requirement of the

    [[Page 126 STAT. 783]]

    Secretary under this chapter to appear and testify or produce
    records.''.
    SEC. 32111. FLEETWIDE OUT OF SERVICE ORDER FOR OPERATING WITHOUT
                                REQUIRED REGISTRATION.

        Section 13902(e)(1) is amended--
                (1) by striking ``motor vehicle'' and inserting ``motor
            carrier'' after ``the Secretary determines that a''; and
                (2) by striking ``order the vehicle'' and inserting ``order
            the motor carrier operations'' after ``the Secretary may''.
    SEC. 32112. MOTOR CARRIER AND OFFICER PATTERNS OF SAFETY
                                VIOLATIONS.

        Section 31135 is amended--
                (1) by striking subsection (b) and inserting the following:

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

                   Subtitle B--Commercial Motor Vehicle Safety

    SEC. 32201. CRASHWORTHINESS STANDARDS.

        (a) <<NOTE: Deadline. Analysis.>> In General.--Not later than 18
    months after the date of enactment of this Act, the Secretary shall
    conduct a comprehensive analysis on the need for crashworthiness
    standards on property-carrying commercial motor vehicles with a gross
    vehicle weight rating or gross vehicle weight of at least 26,001 pounds
    involved in interstate commerce, including an evaluation of the need for

    [[Page 126 STAT. 784]]

    roof strength, pillar strength, air bags, and other occupant protections
    standards, and frontal and back wall standards.

        (b) Report.--Not later than 90 days after completing the
    comprehensive analysis under subsection (a), the Secretary shall report
    the results of the analysis and any recommendations to the Committee on
    Commerce, Science, and Transportation of the Senate and the Committee on
    Transportation and Infrastructure of the House of Representatives.
    SEC. 32202. CANADIAN SAFETY RATING RECIPROCITY.

        Section 31144 is amended by adding at the end the following:
        ``(h) Recognition of Canadian Motor Carrier Safety Fitness
    Determinations.--
                ``(1) If an authorized agency of the Canadian federal
            government or a Canadian Territorial or Provincial government
            determines, by applying the procedure and standards prescribed
            by the Secretary under subsection (b) or pursuant to an
            agreement under paragraph (2), that a Canadian employer is unfit
            and prohibits the employer from operating a commercial motor
            vehicle in Canada or any Canadian Province, the Secretary may
            prohibit the employer from operating such vehicle in interstate
            and foreign commerce until the authorized Canadian agency
            determines that the employer is fit.
                ``(2) The Secretary may consult and participate in
            negotiations with authorized officials of the Canadian federal
            government or a Canadian Territorial or Provincial government,
            as necessary, to provide reciprocal recognition of each
            country's motor carrier safety fitness determinations. An
            agreement shall provide, to the maximum extent practicable, that
            each country will follow the procedure and standards prescribed
            by the Secretary under subsection (b) in making motor carrier
            safety fitness determinations.''.
    SEC. 32203. STATE REPORTING OF FOREIGN COMMERCIAL DRIVER
                                CONVICTIONS.

        (a) Definition of Foreign Commercial Driver.--Section 31301 is
    amended--
                (1) by redesignating paragraphs (10) through (14) as
            paragraphs (11) through (15), respectively; and
                (2) by inserting after paragraph (9) the following:
                ``(10) `foreign commercial driver' means an individual
            licensed to operate a commercial motor vehicle by an authority
            outside the United States, or a citizen of a foreign country who
            operates a commercial motor vehicle in the United States.''.

        (b) State Reporting of Convictions.--Section 31311(a) is amended by
    adding after paragraph (21) the following:
                ``(22) The State shall report a conviction of a foreign
            commercial driver by that State to the Federal Convictions and
            Withdrawal Database, or another information system designated by
            the Secretary to record the convictions. A report shall
            include--
                        ``(A) for a driver holding a foreign commercial
                    driver's license--
                              ``(i) each conviction relating to the
                          operation of a commercial motor vehicle; and
                              ``(ii) each conviction relating to the
                          operation of a non-commercial motor vehicle; and

    [[Page 126 STAT. 785]]

                        ``(B) for an unlicensed driver or a driver holding a
                    foreign non-commercial driver's license, each conviction
                    relating to the operation of a commercial motor
                    vehicle.''.
    SEC. 32204. AUTHORITY TO DISQUALIFY FOREIGN COMMERCIAL DRIVERS.

        Section 31310 is amended by adding at the end the following:
        ``(k) Foreign Commercial Drivers.--A foreign commercial driver shall
    be subject to disqualification under this section.''.
    SEC. 32205. REVOCATION OF FOREIGN MOTOR CARRIER OPERATING
                                AUTHORITY FOR FAILURE TO PAY CIVIL
                                PENALTIES.

        Section 13905(d)(2), as amended by section 32103(a) of this Act, is
    amended by inserting ``foreign motor carrier, foreign motor private
    carrier,'' after ``registration of a motor carrier,'' each place it
    appears.
    SEC. 32206. RENTAL TRUCK ACCIDENT STUDY.

        (a) Definitions.--In this section:
                (1) Rental truck.--The term ``rental truck'' means a motor
            vehicle with a gross vehicle weight rating of between 10,000 and
            26,000 pounds that is made available for rental by a rental
            truck company.
                (2) Rental truck company.--The term ``rental truck company''
            means a person or company that is in the business of renting or
            leasing rental trucks to the public or for private use.

        (b) Study.--
                (1) <<NOTE: Time period.>> In general.--The Secretary shall
            conduct a study of the safety of rental trucks during the 7-year
            period ending on December 31, 2011.
                (2) Requirements.--The study conducted under paragraph (1)
            shall--
                        (A) evaluate available data on the number of
                    crashes, fatalities, and injuries involving rental
                    trucks and the cause of such crashes, utilizing police
                    accident reports and other sources;
                        (B) estimate the property damage and costs resulting
                    from a subset of crashes involving rental truck
                    operations, which the Secretary believes adequately
                    reflect all crashes involving rental trucks;
                        (C) analyze State and local laws regulating rental
                    truck companies, including safety and inspection
                    requirements;
                        (D) assess the rental truck maintenance programs of
                    a selection of small, medium, and large rental truck
                    companies, as selected by the Secretary, including the
                    frequency of rental truck maintenance inspections, and
                    compare such programs with inspection requirements for
                    passenger vehicles and commercial motor vehicles;
                        (E) include any other information available
                    regarding the safety of rental trucks; and
                        (F) review any other information that the Secretary
                    determines to be appropriate.

        (c) Report.--Not later than 1 year after the date of enactment of
    this Act, the Secretary shall submit a report to the Committee on
    Commerce, Science, and Transportation of the Senate and the Committee on
    Transportation and Infrastructure of the House of Representatives that
    contains--

    [[Page 126 STAT. 786]]

                (1) the findings of the study conducted pursuant to
            subsection (b); and
                (2) any recommendations for legislation that the Secretary
            determines to be appropriate.

                            Subtitle C--Driver Safety

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

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

        (b) General Authority.--Section 31137 is amended--
                (1) by amending the section heading to read as follows:
    ``Sec. 31137. Electronic logging devices and brake maintenance
                        regulations'';
                (2) by redesignating subsection (b) as subsection (g); and
                (3) by amending (a) to read as follows:

        ``(a) Use of Electronic Logging Devices.-- <<NOTE: Deadline.>> Not
    later than 1 year after the date of enactment of the Commercial Motor
    Vehicle Safety Enhancement Act of 2012, the Secretary of Transportation
    shall prescribe regulations--

    [[Page 126 STAT. 787]]

                ``(1) requiring a commercial motor vehicle involved in
            interstate commerce and operated by a driver subject to the
            hours of service and the record of duty status requirements
            under part 395 of title 49, Code of Federal Regulations, be
            equipped with an electronic logging device to improve compliance
            by an operator of a vehicle with hours of service regulations
            prescribed by the Secretary; and
                ``(2) ensuring that an electronic logging device is not used
            to harass a vehicle operator.

        ``(b) Electronic Logging Device Requirements.--
                ``(1) In general.--The regulations prescribed under
            subsection (a) shall--
                        ``(A) require an electronic logging device--
                              ``(i) to accurately record commercial driver
                          hours of service;
                              ``(ii) to record the location of a commercial
                          motor vehicle;
                              ``(iii) to be tamper resistant; and
                              ``(iv) to be synchronized to the operation of
                          the vehicle engine or be capable of recognizing
                          when the vehicle is being operated;
                        ``(B) allow law enforcement to access the data
                    contained in the device during a roadside inspection;
                    and
                        ``(C) <<NOTE: Applicability. Effective date.>> apply
                    to a commercial motor vehicle beginning on the date that
                    is 2 years after the date that the regulations are
                    published as a final rule.
                ``(2) Performance and design standards.--The regulations
            prescribed under subsection (a) shall establish performance
            standards--
                        ``(A) defining a standardized user interface to aid
                    vehicle operator compliance and law enforcement review;
                        ``(B) establishing a secure process for
                    standardized--
                              ``(i) and unique vehicle operator
                          identification;
                              ``(ii) data access;
                              ``(iii) data transfer for vehicle operators
                          between motor vehicles;
                              ``(iv) data storage for a motor carrier; and
                              ``(v) data transfer and transportability for
                          law enforcement officials;
                        ``(C) establishing a standard security level for an
                    electronic logging device and related components to be
                    tamper resistant by using a methodology endorsed by a
                    nationally recognized standards organization; and
                        ``(D) identifying each driver subject to the hours
                    of service and record of duty status requirements under
                    part 395 of title 49, Code of Federal Regulations.

        ``(c) Certification Criteria.--
                ``(1) In general.--The regulations prescribed by the
            Secretary under this section shall establish the criteria and a
            process for the certification of electronic logging devices to
            ensure that the device meets the performance requirements under
            this section.
                ``(2) Effect of noncertification.--Electronic logging
            devices that are not certified in accordance with the
            certification process referred to in paragraph (1) shall not be
            acceptable evidence of hours of service and record of duty
            status requirements under part 395 of title 49, Code of Federal
            Regulations.

    [[Page 126 STAT. 788]]

        ``(d) Additional Considerations.--The Secretary, in prescribing the
    regulations described in subsection (a), shall consider how such
    regulations may--
                ``(1) reduce or eliminate requirements for drivers and motor
            carriers to retain supporting documentation associated with
            paper-based records of duty status if--
                        ``(A) data contained in an electronic logging device
                    supplants such documentation; and
                        ``(B) using such data without paper-based records
                    does not diminish the Secretary's ability to audit and
                    review compliance with the Secretary's hours of service
                    regulations; and
                ``(2) include such measures as the Secretary determines are
            necessary to protect the privacy of each individual whose
            personal data is contained in an electronic logging device.

        ``(e) Use of Data.--
                ``(1) In general.--The Secretary may utilize information
            contained in an electronic logging device only to enforce the
            Secretary's motor carrier safety and related regulations,
            including record-of-duty status regulations.
                ``(2) Measures to preserve confidentiality of personal
            data.--The Secretary shall institute appropriate measures to
            preserve the confidentiality of any personal data contained in
            an electronic logging device and disclosed in the course of an
            action taken by the Secretary or by law enforcement officials to
            enforce the regulations referred to in paragraph (1).
                ``(3) Enforcement.--The Secretary shall institute
            appropriate measures to ensure any information collected by
            electronic logging devices is used by enforcement personnel only
            for the purpose of determining compliance with hours of service
            requirements.

        ``(f) Definitions.--In this section:
                ``(1) Electronic logging device.--The term `electronic
            logging device' means an electronic device that--
                        ``(A) is capable of recording a driver's hours of
                    service and duty status accurately and automatically;
                    and
                        ``(B) meets the requirements established by the
                    Secretary through regulation.
                ``(2) Tamper resistant.--The term `tamper resistant' means
            resistant to allowing any individual to cause an electronic
            device to record the incorrect date, time, and location for
            changes to on-duty driving status of a commercial motor vehicle
            operator under part 395 of title 49, Code of Federal
            Regulations, or to subsequently alter the record created by that
            device.''.

        (c) Civil Penalties.--Section 30165(a)(1) is amended by striking
    ``or 30141 through 30147'' and inserting ``30141 through 30147, or
    31137''.
        (d) Conforming Amendment.--The analysis for chapter 311 is amended
    by striking the item relating to section 31137 and inserting the
    following:

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

    SEC. 32302. DRIVER MEDICAL QUALIFICATIONS.

        (a) <<NOTE: 49 USC 31149 note.>> Deadline for Establishment of
    National Registry of Medical Examiners.--Not later than 1 year after the
    date of

    [[Page 126 STAT. 789]]

    enactment of this Act, the Secretary shall establish a national registry
    of medical examiners in accordance with section 31149(d)(1) of title 49,
    United States Code.

        (b) Examination Requirement for National Registry of Medical
    Examiners.--Section 31149(c)(1)(D) is amended to read as follows:
                        ``(D) <<NOTE: Deadline.>> not later than 1 year
                    after enactment of the Commercial Motor Vehicle Safety
                    Enhancement Act of 2012, develop requirements for a
                    medical examiner to be listed in the national registry
                    under this section, including--
                              ``(i) the completion of specific courses and
                          materials;
                              ``(ii) <<NOTE: Certification.>> certification,
                          including, at a minimum, self-certification, if
                          the Secretary determines that self-certification
                          is necessary for sufficient participation in the
                          national registry, to verify that a medical
                          examiner completed specific training, including
                          refresher courses, that the Secretary determines
                          necessary to be listed in the national registry;
                              ``(iii) an examination that requires a passing
                          grade; and
                              ``(iv) demonstration of a medical examiner's
                          willingness to meet the reporting requirements
                          established by the Secretary;''.

        (c) Additional Oversight of Licensing Authorities.--
                (1) In general.--Section 31149(c)(1) is amended--
                        (A) by amending subparagraph (E) to read as follows:
                        ``(E) require medical examiners to transmit
                    electronically, on a monthly basis, the name of the
                    applicant, a numerical identifier, and additional
                    information contained on the medical examiner's
                    certificate for any completed medical examination report
                    required under section 391.43 of title 49, Code of
                    Federal Regulations, to the chief medical examiner;'';
                        (B) in subparagraph (F), by striking the period at
                    the end and inserting ``; and''; and
                        (C) by adding at the end the following:
                        ``(G) <<NOTE: Deadline. Review.>> annually review
                    the implementation of commercial driver's license
                    requirements by not fewer than 10 States to assess the
                    accuracy, validity, and timeliness of--
                              ``(i) the submission of physical examination
                          reports and medical certificates to State
                          licensing agencies; and
                              ``(ii) the processing of the submissions by
                          State licensing agencies.''.
                (2) Internal oversight policy.--
                        (A) <<NOTE: Deadline. 49 USC 31149 note.>> In
                    general.--Not later than 2 years after the date of
                    enactment of this Act, the Secretary shall establish an
                    oversight policy and procedure to carry out section
                    31149(c)(1)(G) of title 49, United States Code, as added
                    by section 32302(c)(1) of this Act.
                        (B) <<NOTE: 49 USC 31149 note.>> Effective date.--
                    The amendments made by section 32303(c)(1) of this Act
                    shall take effect on the date the oversight policies and
                    procedures are established pursuant to subparagraph (A).

    [[Page 126 STAT. 790]]

        (d) Electronic Filing of Medical Examination Certificates.--Section
    31311(a), as amended by sections 32203(b) and 32305(b) of this Act, is
    amended by adding at the end the following:
                ``(25) <<NOTE: Deadline. Records.>> Not later than 5 years
            after the date of enactment of the Commercial Motor Vehicle
            Safety Enhancement Act of 2012, the State shall establish and
            maintain, as part of its driver information system, the
            capability to receive an electronic copy of a medical examiner's
            certificate, from a certified medical examiner, for each holder
            of a commercial driver's license issued by the State who
            operates or intends to operate in interstate commerce.''.

        (e) Funding.--The Secretary is authorized to utilize funds provided
    under section 4101(c)(1) of SAFETEA-LU (119 Stat. 1715) to support
    development of costs of the information technology needed to carry out
    section 31311(a)(25) of title 49, United States Code.
    SEC. 32303. COMMERCIAL DRIVER'S LICENSE NOTIFICATION SYSTEM.

        (a) In General.--Section 31304 is amended--
                (1) by striking ``An employer'' and inserting the following:

        ``(a) In General.--An employer''; and
                (2) by adding at the end the following:

        ``(b) Driver Violation Records.--
                ``(1) Periodic review.--Except as provided in paragraph (3),
            an employer shall ascertain the driving record of each driver it
            employs--
                        ``(A) by making an inquiry at least once every 12
                    months to the appropriate State agency in which the
                    driver held or holds a commercial driver's license or
                    permit during such time period;
                        ``(B) by receiving occurrence-based reports of
                    changes in the status of a driver's record from 1 or
                    more driver record notification systems that meet
                    minimum standards issued by the Secretary; or
                        ``(C) by a combination of inquiries to States and
                    reports from driver record notification systems.
                ``(2) Record keeping.--A copy of the reports received under
            paragraph (1) shall be maintained in the driver's qualification
            file.
                ``(3) <<NOTE: Time period.>> Exceptions to record review
            requirement.--Paragraph (1) shall not apply to a driver employed
            by an employer who, in any 7-day period, is employed or used as
            a driver by more than 1 employer--
                        ``(A) if the employer obtains the driver's
                    identification number, type, and issuing State of the
                    driver's commercial motor vehicle license; or
                        ``(B) if the information described in subparagraph
                    (A) is furnished by another employer and the employer
                    that regularly employs the driver meets the other
                    requirements under this section.
                ``(4) Driver record notification system defined.--In this
            section, the term `driver record notification system' means a
            system that automatically furnishes an employer with a report,
            generated by the appropriate agency of a State, on the change in
            the status of an employee's driver's license due to a conviction
            for a moving violation, a failure to appear,

    [[Page 126 STAT. 791]]

            an accident, driver's license suspension, driver's license
            revocation, or any other action taken against the driving
            privilege.''.

        (b) <<NOTE: Deadline. 49 USC 31304 note.>> Standards for Driver
    Record Notification Systems.--Not later than 1 year after the date of
    enactment of this Act, the Secretary shall issue minimum standards for
    driver notification systems, including standards for the accuracy,
    consistency, and completeness of the information provided.

        (c) <<NOTE: Deadlines.>> Plan for National Notification System.--
                (1) <<NOTE: Recommenda- tions.>> Development.--Not later
            than 2 years after the date of enactment of this Act, the
            Secretary shall develop recommendations and a plan for the
            development and implementation of a national driver record
            notification system, including--
                        (A) an assessment of the merits of achieving a
                    national system by expanding the Commercial Driver's
                    License Information System; and
                        (B) an estimate of the fees that an employer will be
                    charged to offset the operating costs of the national
                    system.
                (2) <<NOTE: Reports.>> Submission to congress.--Not later
            than 90 days after the recommendations and plan are developed
            under paragraph (1), the Secretary shall submit a report on the
            recommendations and plan to the Committee on Commerce, Science,
            and Transportation of the Senate and the Committee on
            Transportation and Infrastructure of the House of
            Representatives.
    SEC. 32304. COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING.

        (a) In General.--Section 31305 is amended by adding at the end the
    following:
        ``(c) <<NOTE: Deadline. Regulations.>> Standards for Training.--Not
    later than 1 year after the date of enactment of the Commercial Motor
    Vehicle Safety Enhancement Act of 2012, the Secretary shall issue final
    regulations establishing minimum entry-level training requirements for
    an individual operating a commercial motor vehicle--
                ``(1) addressing the knowledge and skills that--
                        ``(A) are necessary for an individual operating a
                    commercial motor vehicle to safely operate a commercial
                    motor vehicle; and
                        ``(B) must be acquired before obtaining a commercial
                    driver's license for the first time or upgrading from
                    one class of commercial driver's license to another
                    class;
                ``(2) addressing the specific training needs of a commercial
            motor vehicle operator seeking passenger or hazardous materials
            endorsements;
                ``(3) requiring effective instruction to acquire the
            knowledge, skills, and training referred to in paragraphs (1)
            and (2), including classroom and behind-the-wheel instruction;
                ``(4) requiring certification that an individual operating a
            commercial motor vehicle meets the requirements established by
            the Secretary; and
                ``(5) requiring a training provider (including a public or
            private driving school, motor carrier, or owner or operator of a
            commercial motor vehicle) that offers training that results in
            the issuance of a certification to an individual under paragraph
            (4) to demonstrate that the training meets the requirements of
            the regulations, through a process established by the
            Secretary.''.

        (b) Commercial Driver's License Uniform Standards.--Section 31308(1)
    is amended to read as follows:

    [[Page 126 STAT. 792]]

                ``(1) an individual issued a commercial driver's license--
                        ``(A) pass written and driving tests for the
                    operation of a commercial motor vehicle that comply with
                    the minimum standards prescribed by the Secretary under
                    section 31305(a); and
                        ``(B) present certification of completion of driver
                    training that meets the requirements established by the
                    Secretary under section 31305(c);''.

        (c) Conforming Amendment.--The section heading for section 31305 is
    amended to read as follows:
    ``Sec. 31305. General driver fitness, testing, and training''.

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

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

    SEC. 32305. COMMERCIAL DRIVER'S LICENSE PROGRAM.

        (a) In General.--Section 31309 is amended--
                (1) in subsection (e)(4), by amending subparagraph (A) to
            read as follows:
                        ``(A) <<NOTE: Plan.>> In general.--The plan shall
                    specify--
                              ``(i) a date by which all States shall be
                          operating commercial driver's license information
                          systems that are compatible with the modernized
                          information system under this section; and
                              ``(ii) that States must use the systems to
                          receive and submit conviction and disqualification
                          data.''; and
                (2) in subsection (f), by striking ``use'' and inserting
            ``use, subject to section 31313(a),''.

        (b) Requirements for State Participation.--Section 31311 is
    amended--
                (1) in subsection (a), as amended by section 32203(b) of
            this Act--
                        (A) <<NOTE: Time period. Regulations.>> in paragraph
                    (5), by striking ``At least'' and all that follows
                    through ``regulation),'' and inserting: ``Not later than
                    the time period prescribed by the Secretary by
                    regulation,''; and
                        (B) by adding at the end the following:
                ``(23) <<NOTE: Deadline. Records.>> Not later than 1 year
            after the date of enactment of the Commercial Motor Vehicle
            Safety Enhancement Act of 2012, the State shall implement a
            system and practices for the exclusive electronic exchange of
            driver history record information on the system the Secretary
            maintains under section 31309, including the posting of
            convictions, withdrawals, and disqualifications.
                ``(24) <<NOTE: Records.>> Before renewing or issuing a
            commercial driver's license to an individual, the State shall
            request information pertaining to the individual from the drug
            and alcohol clearinghouse maintained under section 31306a.'';
            and
                (2) by adding at the end the following:

        ``(d) State Commercial Driver's License Program Plan.--
                ``(1) <<NOTE: Time period.>> In general.--A State shall
            submit a plan to the Secretary for complying with the
            requirements under this section during the period beginning on
            the date the plan is submitted and ending on September 30, 2016.

    [[Page 126 STAT. 793]]

                ``(2) Contents.--A plan submitted by a State under paragraph
            (1) shall identify--
                        ``(A) the actions that the State will take to
                    address any deficiencies in the State's commercial
                    driver's license program, as identified by the Secretary
                    in the most recent audit of the program; and
                        ``(B) other actions that the State will take to
                    comply with the requirements under subsection (a).
                ``(3) Priority.--
                        ``(A) Implementation schedule.--A plan submitted by
                    a State under paragraph (1) shall include a schedule for
                    the implementation of the actions identified under
                    paragraph (2). In establishing the schedule, the State
                    shall prioritize actions to address any deficiencies
                    highlighted by the Secretary as critical in the most
                    recent audit of the program.
                        ``(B) Deadline for compliance with requirements.--A
                    plan submitted by a State under paragraph (1) shall
                    include assurances that the State will take the
                    necessary actions to comply with the requirements of
                    subsection (a) not later than September 30, 2015.
                ``(4) Approval and disapproval.--The Secretary shall--
                        ``(A) <<NOTE: Review.>> review each plan submitted
                    under paragraph (1);
                        ``(B)(i) <<NOTE: Determinations.>> approve a plan if
                    the Secretary determines that the plan meets the
                    requirements under this subsection and promotes the
                    goals of this chapter; and
                        ``(ii) disapprove a plan that the Secretary
                    determines does not meet the requirements or does not
                    promote the goals.
                ``(5) Modification of disapproved plans.--If the Secretary
            disapproves a plan under paragraph (4), the Secretary shall--
                        ``(A) <<NOTE: Notification.>> provide a written
                    explanation of the disapproval to the State; and
                        ``(B) allow the State to modify the plan and
                    resubmit it for approval.
                ``(6) Plan updates.--The Secretary may require a State to
            review and update a plan, as appropriate.

        ``(e) Annual Comparison of State Levels of Compliance.--The
    Secretary shall annually--
                ``(1) compare the relative levels of compliance by States
            with the requirements under subsection (a); and
                ``(2) <<NOTE: Public information.>> make the results of the
            comparison available to the public.''.
    SEC. 32306. COMMERCIAL MOTOR VEHICLE DRIVER INFORMATION SYSTEMS.

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

    [[Page 126 STAT. 794]]

    SEC. 32307. EMPLOYER RESPONSIBILITIES.

        Section 31304, as amended by section 32303 of this Act, is amended
    in subsection (a)--
                (1) by striking ``knowingly''; and
                (2) by striking ``in which'' and inserting ``that the
            employer knows or should reasonably know that''.
    SEC. 32308. <<NOTE: 49 USC 31301 note.>> PROGRAM TO ASSIST
                                VETERANS TO ACQUIRE COMMERCIAL
                                DRIVER'S LICENSES.

        (a) Study.--
                (1) <<NOTE: Deadline.>> In general.--Not later than 90 days
            after the date of enactment of this Act, the Secretary, in
            coordination with the Secretary of Defense, and in consultation
            with the States and other relevant stakeholders, shall commence
            a study to assess Federal and State regulatory, economic, and
            administrative challenges faced by members and former members of
            the Armed Forces, who received safety training and operated
            qualifying motor vehicles during their service, in obtaining
            commercial driver's licenses (as defined in section 31301(3) of
            title 49, United States Code).
                (2) Requirements.--The study under this subsection shall--
                        (A) identify written and behind-the-wheel safety
                    training, qualification standards, knowledge and skills
                    tests, or other operating experience members of the
                    Armed Forces must meet that satisfy the minimum
                    standards prescribed by the Secretary of Transportation
                    for the operation of commercial motor vehicles under
                    section 31305 of title 49, United States Code;
                        (B) compare the alcohol and controlled substances
                    testing requirements for members of the Armed Forces
                    with those required for holders of a commercial driver's
                    license;
                        (C) evaluate the cause of delays in reviewing
                    applications for commercial driver's licenses of members
                    and former members of the Armed Forces;
                        (D) identify duplicative application costs;
                        (E) identify residency, domicile, training and
                    testing requirements, and other safety or health
                    assessments that affect or delay the issuance of
                    commercial driver's licenses to members and former
                    members of the Armed Forces; and
                        (F) include other factors that the Secretary
                    determines to be appropriate to meet the requirements of
                    the study.

        (b) Report.--
                (1) In general.--Not later than 180 days after the
            commencement of the study under subsection (a), the Secretary
            shall submit a report to the Committee on Commerce, Science, and
            Transportation of the Senate and the Committee on Financial
            Services of the House of Representatives that contains the
            findings and recommendations from the study.
                (2) Elements.--The report under paragraph (1) shall
            include--
                        (A) findings related to the study requirements under
                    subsection (a)(2);

    [[Page 126 STAT. 795]]

                        (B) <<NOTE: Recommenda- tions.>> recommendations for
                    the Federal and State legislative, regulatory, and
                    administrative actions necessary to address challenges
                    identified in subparagraph (A); and
                        (C) <<NOTE: Plan.>> a plan to implement the
                    recommendations for which the Secretary has authority.

        (c) <<NOTE: Deadline. Procedures.>> Implementation.--Not later than
    1 year after the date of enactment of this Act, the Secretary, in
    consultation with the Secretary of Defense and in cooperation with the
    States, shall implement the recommendations identified in subsection (b)
    and establish accelerated licensing procedures to assist veterans to
    acquire commercial driver's licenses.

        (d) Accelerated Licensing Procedures.-- <<NOTE: Applicability.>> The
    procedures established under subsection (a) shall be designed to be
    applicable to any veteran who--
                (1) is attempting to acquire a commercial driver's license;
            and
                (2) obtained, during military service, documented driving
            experience that, in the determination of the Secretary, makes
            the use of accelerated licensing procedures appropriate.

        (e) Definitions.--In this section:
                (1) Commercial driver's license.--The term ``commercial
            driver's license'' has the meaning given that term in section
            31301 of title 49, United States Code.
                (2) State.--The term ``State'' has the meaning given that
            term in section 31301 of title 49, United States Code.
                (3) Veteran.--The term ``veteran'' has the meaning given
            that term in section 101 of title 38, United States Code.

    Subtitle D-- <<NOTE: Safe Roads Act of 2012.>> Safe Roads Act of 2012
    SEC. 32401. <<NOTE: 49 USC 30101 note.>> SHORT TITLE.

        This subtitle may be cited as the ``Safe Roads Act of 2012''.
    SEC. 32402. NATIONAL CLEARINGHOUSE FOR CONTROLLED SUBSTANCE AND
                                ALCOHOL TEST RESULTS OF COMMERCIAL
                                MOTOR VEHICLE OPERATORS.

        (a) In General.--Chapter 313 is amended--
                (1) in section 31306(a), by inserting ``and section 31306a''
            after ``this section''; and
                (2) by inserting after section 31306 the following:
    ``Sec. 31306a. <<NOTE: Records.>> National clearinghouse for
                          controlled substance and alcohol test
                          results of commercial motor vehicle
                          operators

        ``(a) Establishment.--
                ``(1) <<NOTE: Deadline.>> In general.--Not later than 2
            years after the date of enactment of the Safe Roads Act of 2012,
            the Secretary of Transportation shall establish, operate, and
            maintain a national clearinghouse for records relating to
            alcohol and controlled substances testing of commercial motor
            vehicle operators.
                ``(2) Purposes.--The purposes of the clearinghouse shall
            be--
                        ``(A) to improve compliance with the Department of
                    Transportation's alcohol and controlled substances
                    testing program applicable to commercial motor vehicle
                    operators; and

    [[Page 126 STAT. 796]]

                        ``(B) to enhance the safety of our United States
                    roadways by reducing accident and injuries involving the
                    misuse of alcohol or use of controlled substances by
                    operators of commercial motor vehicles.
                ``(3) Contents.--The clearinghouse shall function as a
            repository for records relating to the positive test results and
            test refusals of commercial motor vehicle operators and
            violations by such operators of prohibitions set forth in
            subpart B of part 382 of title 49, Code of Federal Regulations
            (or any subsequent corresponding regulations).
                ``(4) Electronic exchange of records.--The Secretary shall
            ensure that records can be electronically submitted to, and
            requested from, the clearinghouse by authorized users.
                ``(5) Authorized operator.--The Secretary may authorize a
            qualified private entity to operate and maintain the
            clearinghouse and to collect fees on behalf of the Secretary
            under subsection (e). The entity shall operate and maintain the
            clearinghouse and permit access to driver information and
            records from the clearinghouse in accordance with this section.

        ``(b) Design of Clearinghouse.--
                ``(1) Use of federal motor carrier safety administration
            recommendations.--In establishing the clearinghouse, the
            Secretary shall consider--
                        ``(A) the findings and recommendations contained in
                    the Federal Motor Carrier Safety Administration's March
                    2004 report to Congress required under section 226 of
                    the Motor Carrier Safety Improvement Act of 1999 (49
                    U.S.C. 31306 note); and
                        ``(B) the findings and recommendations contained in
                    the Government Accountability Office's May 2008 report
                    to Congress entitled `Motor Carrier Safety: Improvements
                    to Drug Testing Programs Could Better Identify Illegal
                    Drug Users and Keep Them off the Road.'.
                ``(2) Development of secure processes.--In establishing the
            clearinghouse, the Secretary shall develop a secure process
            for--
                        ``(A) administering and managing the clearinghouse
                    in compliance with applicable Federal security
                    standards;
                        ``(B) registering and authenticating authorized
                    users of the clearinghouse;
                        ``(C) registering and authenticating persons
                    required to report to the clearinghouse under subsection
                    (g);
                        ``(D) preventing the unauthorized access of
                    information from the clearinghouse;
                        ``(E) storing and transmitting data;
                        ``(F) persons required to report to the
                    clearinghouse under subsection (g) to timely and
                    accurately submit electronic data to the clearinghouse;
                        ``(G) generating timely and accurate reports from
                    the clearinghouse in response to requests for
                    information by authorized users; and
                        ``(H) updating an individual's record upon
                    completion of the return-to-duty process described in
                    title 49, Code of Federal Regulations.
                ``(3) Employer alert of positive test result.--
            <<NOTE: Notification.>> In establishing the clearinghouse, the
            Secretary shall develop a secure

    [[Page 126 STAT. 797]]

            method for electronically notifying an employer of each
            additional positive test result or other noncompliance--
                        ``(A) <<NOTE: Time period.>> for an employee, that
                    is entered into the clearinghouse during the 7-day
                    period immediately following an employer's inquiry about
                    the employee; and
                        ``(B) for an employee who is listed as having
                    multiple employers.
                ``(4) Archive capability.--In establishing the
            clearinghouse, the Secretary shall develop a process for
            archiving all clearinghouse records for the purposes of auditing
            and evaluating the timeliness, accuracy, and completeness of
            data in the clearinghouse.
                ``(5) Future needs.--
                        ``(A) Interoperability with other data systems.--In
                    establishing the clearinghouse, the Secretary shall
                    consider--
                              ``(i) the existing data systems containing
                          regulatory and safety data for commercial motor
                          vehicle operators;
                              ``(ii) the efficacy of using or combining
                          clearinghouse data with 1 or more of such systems;
                          and
                              ``(iii) the potential interoperability of the
                          clearinghouse with such systems.
                        ``(B) <<NOTE: Determination.>> Specific
                    considerations.--In carrying out subparagraph (A), the
                    Secretary shall determine--
                              ``(i) the clearinghouse's capability for
                          interoperability with--
                                        ``(I) the National Driver Register
                                    established under section 30302;
                                        ``(II) the Commercial Driver's
                                    License Information System established
                                    under section 31309;
                                        ``(III) the Motor Carrier Management
                                    Information System for preemployment
                                    screening services under section 31150;
                                    and
                                        ``(IV) other data systems, as
                                    appropriate; and
                              ``(ii) any change to the administration of the
                          current testing program, such as forms, that is
                          necessary to collect data for the clearinghouse.

        ``(c) Standard Formats.--The Secretary shall develop standard
    formats to be used--
                ``(1) by an authorized user of the clearinghouse to--
                        ``(A) request a record from the clearinghouse; and
                        ``(B) obtain the consent of an individual who is the
                    subject of a request from the clearinghouse, if
                    applicable; and
                ``(2) <<NOTE: Notification.>> to notify an individual that a
            positive alcohol or controlled substances test result, refusing
            to test, and a violation of any of the prohibitions under
            subpart B of part 382 of title 49, Code of Federal Regulations
            (or any subsequent corresponding regulations), will be reported
            to the clearinghouse.

        ``(d) Privacy.--A release of information from the clearinghouse
    shall--
                ``(1) comply with applicable Federal privacy laws, including
            the fair information practices under the Privacy Act of 1974 (5
            U.S.C. 552a);
                ``(2) comply with applicable sections of the Fair Credit
            Reporting Act (15 U.S.C. 1681 et seq.); and

    [[Page 126 STAT. 798]]

                ``(3) not be made to any person or entity unless expressly
            authorized or required by law.

        ``(e) Fees.--
                ``(1) Authority to collect fees.--Except as provided under
            paragraph (3), the Secretary may collect a reasonable,
            customary, and nominal fee from an authorized user of the
            clearinghouse for a request for information from the
            clearinghouse.
                ``(2) Use of fees.--Fees collected under this subsection
            shall be used for the operation and maintenance of the
            clearinghouse.
                ``(3) Limitation.--The Secretary may not collect a fee from
            an individual requesting information from the clearinghouse that
            pertains to the record of that individual.

        ``(f) Employer Requirements.--
                ``(1) Determination concerning use of clearinghouse.--The
            Secretary shall determine if an employer is authorized to use
            the clearinghouse to meet the alcohol and controlled substances
            testing requirements under title 49, Code of Federal
            Regulations.
                ``(2) Applicability of existing requirements.--
            <<NOTE: Compliance.>> Each employer and service agent shall
            continue to comply with the alcohol and controlled substances
            testing requirements under title 49, Code of Federal
            Regulations.
                ``(3) Employment prohibitions.--After the clearinghouse is
            established under subsection (a), at a date determined to be
            appropriate by the Secretary and published in the Federal
            Register, an employer shall utilize the clearinghouse to
            determine whether any employment prohibitions exist and shall
            not hire an individual to operate a commercial motor vehicle
            unless the employer determines that the individual, during the
            preceding 3-year period--
                        ``(A) if tested for the use of alcohol and
                    controlled substances, as required under title 49, Code
                    of Federal Regulations--
                              ``(i) did not test positive for the use of
                          alcohol or controlled substances in violation of
                          the regulations; or
                              ``(ii) tested positive for the use of alcohol
                          or controlled substances and completed the
                          required return-to-duty process under title 49,
                          Code of Federal Regulations;
                        ``(B)(i) did not refuse to take an alcohol or
                    controlled substance test under title 49, Code of
                    Federal Regulations; or
                        ``(ii) refused to take an alcohol or controlled
                    substance test and completed the required return-to-duty
                    process under title 49, Code of Federal Regulations; and
                        ``(C) did not violate any other provision of subpart
                    B of part 382 of title 49, Code of Federal Regulations
                    (or any subsequent corresponding regulations).
                ``(4) <<NOTE: Federal Register, publication.>> Annual
            review.--After the clearinghouse is established under subsection
            (a), at a date determined to be appropriate by the Secretary and
            published in the Federal Register, an employer shall request and
            review a commercial motor vehicle operator's record from the
            clearinghouse annually for

    [[Page 126 STAT. 799]]

            as long as the commercial motor vehicle operator is under the
            employ of the employer.

        ``(g) Reporting of Records.--
                ``(1) <<NOTE: Effective date.>> In general.--Beginning 30
            days after the date that the clearinghouse is established under
            subsection (a), a medical review officer, employer, service
            agent, and other appropriate person, as determined by the
            Secretary, shall promptly submit to the Secretary any record
            generated after the clearinghouse is initiated of an individual
            who--
                        ``(A) refuses to take an alcohol or controlled
                    substances test required under title 49, Code of Federal
                    Regulations;
                        ``(B) tests positive for alcohol or a controlled
                    substance in violation of the regulations; or
                        ``(C) violates any other provision of subpart B of
                    part 382 of title 49, Code of Federal Regulations (or
                    any subsequent corresponding regulations).
                ``(2) Inclusion of records in clearinghouse.--The Secretary
            shall include in the clearinghouse the records of positive test
            results and test refusals received under paragraph (1).
                ``(3) Modifications and deletions.--If the Secretary
            determines that a record contained in the clearinghouse is not
            accurate, the Secretary shall modify or delete the record, as
            appropriate.
                ``(4) Notification.--The Secretary shall expeditiously
            notify an individual, unless such notification would be
            duplicative, when--
                        ``(A) a record relating to the individual is
                    received by the clearinghouse;
                        ``(B) a record in the clearinghouse relating to the
                    individual is modified or deleted, and include in the
                    notification the reason for the modification or
                    deletion; or
                        ``(C) a record in the clearinghouse relating to the
                    individual is released to an employer and specify the
                    reason for the release.
                ``(5) Data quality and security standards for reporting and
            releasing.--The Secretary may establish additional requirements,
            as appropriate, to ensure that--
                        ``(A) the submission of records to the clearinghouse
                    is timely and accurate;
                        ``(B) the release of data from the clearinghouse is
                    timely, accurate, and released to the appropriate
                    authorized user under this section; and
                        ``(C) an individual with a record in the
                    clearinghouse has a cause of action for any
                    inappropriate use of information included in the
                    clearinghouse.
                ``(6) <<NOTE: Time period.>> Retention of records.--The
            Secretary shall--
                        ``(A) retain a record submitted to the clearinghouse
                    for a 5-year period beginning on the date the record is
                    submitted;
                        ``(B) remove the record from the clearinghouse at
                    the end of the 5-year period, unless the individual
                    fails to meet a return-to-duty or follow-up requirement
                    under title 49, Code of Federal Regulations; and
                        ``(C) retain a record after the end of the 5-year
                    period in a separate location for archiving and auditing
                    purposes.

        ``(h) Authorized Users.--

    [[Page 126 STAT. 800]]

                ``(1) Employers.-- <<NOTE: Procedures.>> The Secretary shall
            establish a process for an employer, or an employer's designated
            agent, to request and receive an individual's record from the
            clearinghouse.
                        ``(A) Consent.--An employer may not access an
                    individual's record from the clearinghouse unless the
                    employer--
                              ``(i) obtains the prior written or electronic
                          consent of the individual for access to the
                          record; and
                              ``(ii) submits proof of the individual's
                          consent to the Secretary.
                        ``(B) Access to records.--After receiving a request
                    from an employer for an individual's record under
                    subparagraph (A), the Secretary shall grant access to
                    the individual's record to the employer as expeditiously
                    as practicable.
                        ``(C) <<NOTE: Time period.>> Retention of record
                    requests.--The Secretary shall require an employer to
                    retain for a 3-year period--
                              ``(i) a record of each request made by the
                          employer for records from the clearinghouse; and
                              ``(ii) the information received pursuant to
                          the request.
                        ``(D) Use of records.--An employer may use an
                    individual's record received from the clearinghouse only
                    to assess and evaluate whether a prohibition applies
                    with respect to the individual to operate a commercial
                    motor vehicle for the employer.
                        ``(E) Protection of privacy of individuals.--An
                    employer that receives an individual's record from the
                    clearinghouse under subparagraph (B) shall--
                              ``(i) protect the privacy of the individual
                          and the confidentiality of the record; and
                              ``(ii) ensure that information contained in
                          the record is not divulged to a person or entity
                          that is not directly involved in assessing and
                          evaluating whether a prohibition applies with
                          respect to the individual to operate a commercial
                          motor vehicle for the employer.
                ``(2) <<NOTE: Procedures.>> State licensing authorities.--
            The Secretary shall establish a process for the chief commercial
            driver's licensing official of a State to request and receive an
            individual's record from the clearinghouse if the individual is
            applying for a commercial driver's license from the State.
                        ``(A) Consent.--The Secretary may grant access to an
                    individual's record in the clearinghouse under this
                    paragraph without the prior written or electronic
                    consent of the individual. An individual who holds a
                    commercial driver's license shall be deemed to consent
                    to such access by obtaining a commercial driver's
                    license.
                        ``(B) Protection of privacy of individuals.--A chief
                    commercial driver's licensing official of a State that
                    receives an individual's record from the clearinghouse
                    under this paragraph shall--
                              ``(i) protect the privacy of the individual
                          and the confidentiality of the record; and
                              ``(ii) ensure that the information in the
                          record is not divulged to any person that is not
                          directly involved in assessing and evaluating the
                          qualifications of the individual to operate a
                          commercial motor vehicle.

    [[Page 126 STAT. 801]]

        ``(i) National Transportation Safety Board.--
    <<NOTE: Procedures.>> The Secretary shall establish a process for the
    National Transportation Safety Board to request and receive an
    individual's record from the clearinghouse if the individual is involved
    in an accident that is under investigation by the National
    Transportation Safety Board.

        ``(j) Access to Clearinghouse by Individuals.--
                ``(1) <<NOTE: Procedures.>> In general.--The Secretary shall
            establish a process for an individual to request and receive
            information from the clearinghouse--
                        ``(A) to determine whether the clearinghouse
                    contains a record pertaining to the individual;
                        ``(B) to verify the accuracy of a record;
                        ``(C) to update an individual's record, including
                    completing the return-to-duty process described in title
                    49, Code of Federal Regulations; and
                        ``(D) to determine whether the clearinghouse
                    received requests for the individual's information.
                ``(2) <<NOTE: Appeal process.>> Dispute procedure.--The
            Secretary shall establish a procedure, including an appeal
            process, for an individual to dispute and remedy an
            administrative error in the individual's record.

        ``(k) Penalties.--
                ``(1) In general.--An employer, employee, medical review
            officer, or service agent who violates any provision of this
            section shall be subject to civil penalties under section
            521(b)(2)(C) and criminal penalties under section 521(b)(6)(B),
            and any other applicable civil and criminal penalties, as
            determined by the Secretary.
                ``(2) Violation of privacy.--The Secretary shall establish
            civil and criminal penalties, consistent with paragraph (1), for
            an authorized user who violates paragraph (1) or (2) of
            subsection (h).

        ``(l) Compatibility of State and Local Laws.--
                ``(1) Preemption.--Except as provided under paragraph (2),
            any law, regulation, order, or other requirement of a State,
            political subdivision of a State, or Indian tribe related to a
            commercial driver's license holder subject to alcohol or
            controlled substance testing under title 49, Code of Federal
            Regulations, that is inconsistent with this section or a
            regulation issued pursuant to this section is preempted.
                ``(2) Applicability.--The preemption under paragraph (1)
            shall include--
                        ``(A) the reporting of valid positive results from
                    alcohol screening tests and drug tests;
                        ``(B) the refusal to provide a specimen for an
                    alcohol screening test or drug test; and
                        ``(C) other violations of subpart B of part 382 of
                    title 49, Code of Federal Regulations (or any subsequent
                    corresponding regulations).
                ``(3) Exception.--A law, regulation, order, or other
            requirement of a State, political subdivision of a State, or
            Indian tribe shall not be preempted under this subsection to the
            extent it relates to an action taken with respect to a
            commercial motor vehicle operator's commercial driver's license
            or driving record as a result of the driver's--
                        ``(A) verified positive alcohol or drug test result;
                        ``(B) refusal to provide a specimen for the test; or

    [[Page 126 STAT. 802]]

                        ``(C) other violations of subpart B of part 382 of
                    title 49, Code of Federal Regulations (or any subsequent
                    corresponding regulations).

        ``(m) Definitions.--In this section--
                ``(1) Authorized user.--The term `authorized user' means an
            employer, State licensing authority, or other person granted
            access to the clearinghouse under subsection (h).
                ``(2) Chief commercial driver's licensing official.--The
            term `chief commercial driver's licensing official' means the
            official in a State who is authorized to--
                        ``(A) maintain a record about commercial driver's
                    licenses issued by the State; and
                        ``(B) take action on commercial driver's licenses
                    issued by the State.
                ``(3) Clearinghouse.--The term `clearinghouse' means the
            clearinghouse established under subsection (a).
                ``(4) Commercial motor vehicle operator.--The term
            `commercial motor vehicle operator' means an individual who--
                        ``(A) possesses a valid commercial driver's license
                    issued in accordance with section 31308; and
                        ``(B) is subject to controlled substances and
                    alcohol testing under title 49, Code of Federal
                    Regulations.
                ``(5) Employer.--The term `employer' means a person or
            entity employing, or seeking to employ, 1 or more employees
            (including an individual who is self-employed) to be commercial
            motor vehicle operators.
                ``(6) Medical review officer.--The term `medical review
            officer' means a licensed physician who is responsible for--
                        ``(A) receiving and reviewing a laboratory result
                    generated under the testing program;
                        ``(B) evaluating a medical explanation for a
                    controlled substances test under title 49, Code of
                    Federal Regulations; and
                        ``(C) interpreting the results of a controlled
                    substances test.
                ``(7) Secretary.--The term `Secretary' means the Secretary
            of Transportation.
                ``(8) Service agent.--The term `service agent' means a
            person or entity, other than an employee of the employer, who
            provides services to employers or employees under the testing
            program.
                ``(9) Testing program.--The term `testing program' means the
            alcohol and controlled substances testing program required under
            title 49, Code of Federal Regulations.''.

        (b) Conforming Amendment.--The analysis for chapter 313 is amended
    by inserting after the item relating to section 31306 the following:

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

                             Subtitle E--Enforcement

    SEC. 32501. INSPECTION DEMAND AND DISPLAY OF CREDENTIALS.

        (a) Safety Investigations.--Section 504(c) is amended--

    [[Page 126 STAT. 803]]

                (1) by inserting ``, or an employee of the recipient of a
            grant issued under section 31102 of this title'' after ``a
            contractor''; and
                (2) by inserting ``, in person or in writing'' after
            ``proper credentials''.

        (b) Civil Penalty.--Section 521(b)(2)(E) is amended--
                (1) by redesignating subparagraph (E) as subparagraph
            (E)(i); and
                (2) by adding at the end the following:
                              ``(ii) Place out of service.--The Secretary
                          may by regulation adopt procedures for placing out
                          of service the commercial motor vehicle of a
                          foreign-domiciled motor carrier that fails to
                          promptly allow the Secretary to inspect and copy a
                          record or inspect equipment, land, buildings, or
                          other property.''.

        (c) Hazardous Materials Investigations.--Section 5121(c)(2) is
    amended by inserting ``, in person or in writing,'' after ``proper
    credentials''.
        (d) Commercial Investigations.--Section 14122(b) is amended by
    inserting ``, in person or in writing'' after ``proper credentials''.
    SEC. 32502. OUT OF SERVICE PENALTY FOR DENIAL OF ACCESS TO
                                RECORDS.

        Section 521(b)(2)(E) is amended--
                (1) by inserting after ``$10,000.'' the following: ``In the
            case of a motor carrier, the Secretary may also place the
            violator's motor carrier operations out of service.''; and
                (2) by striking ``such penalty'' after ``It shall be a
            defense to'' and inserting ``a penalty''.
    SEC. 32503. PENALTIES FOR VIOLATION OF OPERATION OUT OF SERVICE
                                ORDERS.

        Section 521(b)(2) is amended by adding at the end the following:
                        ``(F) Penalty for violations relating to out of
                    service orders.--A motor carrier or employer (as defined
                    in section 31132) that operates a commercial motor
                    vehicle in commerce in violation of a prohibition on
                    transportation under section 31144(c) of this title or
                    an imminent hazard out of service order issued under
                    subsection (b)(5) of this section or section 5121(d) of
                    this title shall be liable for a civil penalty not to
                    exceed $25,000.''.
    SEC. 32504. IMPOUNDMENT AND IMMOBILIZATION OF COMMERCIAL MOTOR
                                VEHICLES FOR IMMINENT HAZARD.

        Section 521(b) is amended by adding at the end the following:
                ``(15) Impoundment of commercial motor vehicles.--
                        ``(A) Enforcement of imminent hazard out-of-service
                    orders.--
                              ``(i) The Secretary, or an authorized State
                          official carrying out motor carrier safety
                          enforcement activities under section 31102, may
                          enforce an imminent hazard out-of-service order
                          issued under chapters 5, 51, 131 through 149, 311,
                          313, or 315 of this title, or a regulation
                          promulgated thereunder, by towing and impounding a
                          commercial motor vehicle until the order is
                          rescinded.
                              ``(ii) Enforcement shall not unreasonably
                          interfere with the ability of a shipper, carrier,
                          broker, or other

    [[Page 126 STAT. 804]]

                          party to arrange for the alternative
                          transportation of any cargo or passenger being
                          transported at the time the commercial motor
                          vehicle is immobilized. In the case of a
                          commercial motor vehicle transporting passengers,
                          the Secretary or authorized State official shall
                          provide reasonable, temporary, and secure shelter
                          and accommodations for passengers in transit.
                              ``(iii) <<NOTE: Notification.>> The
                          Secretary's designee or an authorized State
                          official carrying out motor carrier safety
                          enforcement activities under section 31102, shall
                          immediately notify the owner of a commercial motor
                          vehicle of the impoundment and the opportunity for
                          review of the impoundment. <<NOTE: Deadline.>> A
                          review shall be provided in accordance with
                          section 554 of title 5, except that the review
                          shall occur not later than 10 days after the
                          impoundment.
                        ``(B) Issuance of regulations.--The Secretary shall
                    promulgate regulations on the use of impoundment or
                    immobilization of commercial motor vehicles as a means
                    of enforcing additional out-of-service orders issued
                    under chapters 5, 51, 131 through 149, 311, 313, or 315
                    of this title, or a regulation promulgated thereunder.
                    Regulations promulgated under this subparagraph shall
                    include consideration of public safety, the protection
                    of passengers and cargo, inconvenience to passengers,
                    and the security of the commercial motor vehicle.
                        ``(C) Definition.--In this paragraph, the term
                    `impoundment' or 'impounding' means the seizing and
                    taking into custody of a commercial motor vehicle or the
                    immobilizing of a commercial motor vehicle through the
                    attachment of a locking device or other mechanical or
                    electronic means.''.
    SEC. 32505. INCREASED PENALTIES FOR EVASION OF REGULATIONS.

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

        (b) Evasion of Regulation.--Section 14906 is amended--
                (1) by striking ``$200'' and inserting ``at least $2,000'';
                (2) by striking ``$250'' and inserting ``$5,000''; and
                (3) by inserting after ``a subsequent violation'' the
            following:

        ``, and may be subject to criminal penalties''.
    SEC. 32506. VIOLATIONS RELATING TO COMMERCIAL MOTOR VEHICLE SAFETY
                                REGULATION AND OPERATORS.

        Section 521(b)(2)(D) is amended by striking ``ability to pay,''.
    SEC. 32507. EMERGENCY DISQUALIFICATION FOR IMMINENT HAZARD.

        Section 31310(f) is amended--

    [[Page 126 STAT. 805]]

                (1) in paragraph (1) by inserting ``section 521 or'' before
            ``section 5102''; and
                (2) in paragraph (2) by inserting ``section 521 or'' before
            ``section 5102''.
    SEC. 32508. DISCLOSURE TO STATE AND LOCAL LAW ENFORCEMENT
                                AGENCIES.

        Section 31106(e) is amended--
                (1) by redesignating subsection (e) as subsection (e)(1);
            and
                (2) by inserting at the end the following:
                ``(2) In general.--Notwithstanding any prohibition on
            disclosure of information in section 31105(h) or 31143(b) of
            this title or section 552a of title 5, the Secretary may
            disclose information maintained by the Secretary pursuant to
            chapters 51, 135, 311, or 313 of this title to appropriate
            personnel of a State agency or instrumentality authorized to
            carry out State commercial motor vehicle safety activities and
            commercial driver's license laws, or appropriate personnel of a
            local law enforcement agency, in accordance with standards,
            conditions, and procedures as determined by the Secretary.
            Disclosure under this section shall not operate as a waiver by
            the Secretary of any applicable privilege against disclosure
            under common law or as a basis for compelling disclosure under
            section 552 of title 5.''.
    SEC. 32509. GRADE CROSSING SAFETY REGULATIONS.

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

                 Subtitle F--Compliance, Safety, Accountability

    SEC. 32601. MOTOR CARRIER SAFETY ASSISTANCE PROGRAM.

        (a) In General.--Section 31102(b) is amended--
                (1) by amending the heading to read as follows:

        ``(b) Motor Carrier Safety Assistance Program.--'';
                (2) by redesignating paragraphs (1) through (3) as (2)
            through (4), respectively;
                (3) by inserting before paragraph (2), as redesignated, the
            following:
                ``(1) Program goal.--The goal of the Motor Carrier Safety
            Assistance Program is to ensure that the Secretary, States,
            local government agencies, and other political jurisdictions
            work in partnership to establish programs to improve motor
            carrier, commercial motor vehicle, and driver safety to support
            a safe and efficient surface transportation system by--
                        ``(A) making targeted investments to promote safe
                    commercial motor vehicle transportation, including
                    transportation of passengers and hazardous materials;
                        ``(B) investing in activities likely to generate
                    maximum reductions in the number and severity of
                    commercial motor vehicle crashes and fatalities
                    resulting from such crashes;

    [[Page 126 STAT. 806]]

                        ``(C) adopting and enforcing effective motor
                    carrier, commercial motor vehicle, and driver safety
                    regulations and practices consistent with Federal
                    requirements; and
                        ``(D) assessing and improving statewide performance
                    by setting program goals and meeting performance
                    standards, measures, and benchmarks.'';
                (4) in paragraph (2), as redesignated--
                        (A) by striking ``make a declaration of'' in
                    subparagraph (I) and inserting ``demonstrate'';
                        (B) by amending subparagraph (M) to read as follows:
                        ``(M) ensures participation in appropriate Federal
                    Motor Carrier Safety Administration systems and other
                    information systems by all appropriate jurisdictions
                    receiving Motor Carrier Safety Assistance Program
                    funding;'';
                        (C) in subparagraph (Q), by inserting ``and
                    dedicated sufficient resources to'' between
                    ``established'' and ``a program'';
                        (D) in subparagraph (W), by striking ``and'' after
                    the semicolon;
                        (E) in subparagraph (X), by striking the period and
                    inserting ``; and''; and
                        (F) by adding after subparagraph (X) the following:
                        ``(Y) ensures that the State will transmit to its
                    roadside inspectors the notice of each Federal exemption
                    granted pursuant to section 31315(b) and provided to the
                    State by the Secretary, including the name of the person
                    granted the exemption and any terms and conditions that
                    apply to the exemption.''; and
                (5) by amending paragraph (4), as redesignated, to read as
            follows:
                ``(4) Maintenance of effort.--
                        ``(A) <<NOTE: Plans.>> In general.--A plan submitted
                    by a State under paragraph (2) shall provide that the
                    total expenditure of amounts of the lead State agency
                    responsible for implementing the plan will be maintained
                    at a level at least equal to the average level of that
                    expenditure for fiscal years 2004 and 2005.
                        ``(B) Average level of state expenditures.--In
                    estimating the average level of State expenditure under
                    subparagraph (A), the Secretary--
                              ``(i) may allow the State to exclude State
                          expenditures for Government-sponsored
                          demonstration or pilot programs; and
                              ``(ii) <<NOTE: Requirements.>> shall require
                          the State to exclude State matching amounts used
                          to receive Government financing under this
                          subsection.
                        ``(C) Waiver.--Upon the request of a State, the
                    Secretary may waive or modify the requirements of this
                    paragraph for 1 fiscal year, if the Secretary determines
                    that a waiver is equitable due to exceptional or
                    uncontrollable circumstances, such as a natural disaster
                    or a serious decline in the financial resources of the
                    State motor carrier safety assistance program agency.''.

    [[Page 126 STAT. 807]]

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

        Section 31106(b) is amended by amending paragraph (3)(C) to read as
    follows:
                        ``(C) establish and implement a process--
                              ``(i) to cancel the motor vehicle registration
                          and seize the registration plates of a vehicle
                          when an employer is found liable under section
                          31310(i)(2)(C) for knowingly allowing or requiring
                          an employee to operate such a commercial motor
                          vehicle in violation of an out-of-service order;
                          and
                              ``(ii) to reinstate the vehicle registration
                          or return the registration plates of the
                          commercial motor vehicle, subject to sanctions
                          under clause (i), if the Secretary permits such
                          carrier to resume operations after the date of
                          issuance of such order.''.
    SEC. 32603. AUTHORIZATION OF APPROPRIATIONS.

        (a) Motor Carrier Safety Grants.--Section 31104(a) is amended--
                (1) by striking ``and'' at the end of paragraph (7);
                (2) by striking paragraph (8); and
                (3) by inserting after paragraph (7) the following:
                ``(8) $215,000,000 for fiscal year 2013; and
                ``(9) $218,000,000 for fiscal year 2014.''.

        (b) Administrative Expenses.--Section 31104(i)(1) is amended--
                (1) by striking ``and'' at the end of subparagraph (G); and
                (2) by striking subparagraph (H); and
                (3) by inserting after subparagraph (G) the following:
                        ``(H) $251,000,000 for fiscal year 2013; and
                        ``(I) $259,000,000 for fiscal year 2014.''.

        (c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119 Stat. 1715)
    is amended to read as follows:
        ``(c) Grant Programs.--There are authorized to be appropriated from
    the Highway Trust Fund (other than the Mass Transit Account) the
    following sums for the following Federal Motor Carrier Safety
    Administration programs:
                ``(1) Commercial driver's license program improvement
            grants.--For commercial driver's license program improvement
            grants under section 31313 of title 49, United States Code
            $30,000,000 for each of fiscal years 2013 and 2014.
                ``(2) Border enforcement grants.--For border enforcement
            grants under section 31107 of such title $32,000,000 for each of
            fiscal years 2013 and 2014.
                ``(3) Performance and registration information system
            management grant program.--For the performance and registration
            information system management grant program under section 31109
            of such title $5,000,000 for each of fiscal years 2013 and 2014.
                ``(4) Commercial vehicle information systems and networks
            deployment.--For carrying out the commercial vehicle information
            systems and networks deployment program under section 4126 of
            this Act, $25,000,000 for each of fiscal years 2013 and 2014.

    [[Page 126 STAT. 808]]

                ``(5) Safety data improvement grants.--For safety data
            improvement grants under section 4128 of this Act, $3,000,000
            for each of fiscal years 2013 and 2014.''.

        (d) High-priority Activities.--Section 31104(k)(2) is amended by
    striking ``2011 and $11,250,000 for the period beginning on October 1,
    2011, and ending on June 30, 2012,'' and inserting ``2014''.
        (e) New Entrant Audits.--Section 31144(g)(5)(B) is amended to read
    as follows:
                        ``(B) Set aside.--The Secretary shall set aside from
                    amounts made available by section 31104(a) up to
                    $32,000,000 per fiscal year for audits of new entrant
                    motor carriers conducted pursuant to this paragraph.''.

        (f) Outreach and Education.--Section 4127(e) of SAFETEA-LU (119
    Stat. 1741) <<NOTE: 49 USC 31100 note.>> is amended to read as follows:

        ``(e) Funding.--From amounts made available under section 31104(i)
    of title 49, United States Code, the Secretary shall make available
    $4,000,000 to the Federal Motor Carrier Safety Administration for each
    of fiscal years 2013 and 2014 to carry out this section (other than
    subsection (f)).''.
        (g) Grant Program for Commercial Motor Vehicle Operators.--
    <<NOTE: Time period.>> Section 4134(c) of SAFETEA-LU (49 U.S.C. 31301
    note) is amended by striking ``2011 and $750,000 for the period
    beginning on October 1, 2011, and ending on June 30, 2012,'' and
    inserting ``2014''.

        (h) Border Enforcement Grants.--Section 31107 is amended--
                (1) by striking subsection (b); and
                (2) redesignating subsections (c) and (d) as subsections (b)
            and (c), respectively.

        (i) <<NOTE: 49 USC 31100 note.>> Administration of Grant Programs.--
    The Secretary is authorized to identify and implement processes to
    reduce the administrative burden on the States and the Department of
    Transportation concerning the application and management of the grant
    programs authorized under chapter 311 and chapter 313 of title 49,
    United States Code.
    SEC. 32604. GRANTS FOR COMMERCIAL DRIVER'S LICENSE PROGRAM
                                IMPLEMENTATION.

        (a) Grants for Commercial Driver's License Program Implementation.--
    Section 31313(a) is amended to read as follows:
        ``(a) Commercial Driver's License Program Improvement Grants.--
                ``(1) Program goal.--The Secretary of Transportation may
            make a grant to a State in a fiscal year--
                        ``(A) to comply with the requirements of section
                    31311;
                        ``(B) in the case of a State that is making a good
                    faith effort toward substantial compliance with the
                    requirements of this section and section 31311, to
                    improve its implementation of its commercial driver's
                    license program, including expenses--
                              ``(i) for computer hardware and software;
                              ``(ii) for publications, testing, personnel,
                          training, and quality control;
                              ``(iii) for commercial driver's license
                          program coordinators;

    [[Page 126 STAT. 809]]

                              ``(iv) to implement or maintain a system to
                          notify an employer of an operator of a commercial
                          motor vehicle of the suspension or revocation of
                          the operator's commercial driver's license
                          consistent with the standards developed under
                          section 32303(b) of the Commercial Motor Vehicle
                          Safety Enhancement Act of 2012.
                ``(2) Prohibitions.--A State may not use grant funds under
            this subsection to rent, lease, or buy land or buildings.''.

        (b) Conforming Amendment.--
                (1) The heading for section 31313 is amended by striking
            ``improvements'' and inserting ``implementation''.
                (2) The analysis of chapter 313 is amended by striking the
            item relating to section 31313 and inserting the following:

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

    SEC. 32605. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS.

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

            Subtitle G--M <<NOTE: Motorcoach Enhanced Safety Act of
    2012.>> otorcoach Enhanced Safety Act of 2012
    SEC. 32701. <<NOTE: 49 USC 31136 note.>> SHORT TITLE.

        This subtitle may be cited as the ``Motorcoach Enhanced Safety Act
    of 2012''.
    SEC. 32702. <<NOTE: 49 USC 31136 note.>> DEFINITIONS.

        In this subtitle:
                (1) Advanced glazing.--The term ``advanced glazing'' means
            glazing installed in a portal on the side or the roof of a
            motorcoach that is designed to be highly resistant to partial or
            complete occupant ejection in all types of motor vehicle
            crashes.
                (2) Bus.--The term ``bus'' has the meaning given the term in
            section 571.3(b) of title 49, Code of Federal Regulations (as in
            effect on the day before the date of enactment of this Act).
                (3) Commercial motor vehicle.--Except as otherwise
            specified, the term ``commercial motor vehicle'' has the meaning
            given the term in section 31132(1) of title 49, United States
            Code.
                (4) Direct tire pressure monitoring system.--The term
            ``direct tire pressure monitoring system'' means a tire pressure
            monitoring system that is capable of directly detecting when the
            air pressure level in any tire is significantly under-inflated

    [[Page 126 STAT. 810]]

            and providing the driver a low tire pressure warning as to which
            specific tire is significantly under-inflated.
                (5) Motor carrier.--The term ``motor carrier'' means--
                        (A) a motor carrier (as defined in section 13102(14)
                    of title 49, United States Code); or
                        (B) a motor private carrier (as defined in section
                    13102(15) of that title).
                (6) Motorcoach.--The term ``motorcoach'' has the meaning
            given the term ``over-the-road bus'' in section 3038(a)(3) of
            the Transportation Equity Act for the 21st Century (49 U.S.C.
            5310 note), but does not include--
                        (A) a bus used in public transportation provided by,
                    or on behalf of, a public transportation agency; or
                        (B) a school bus, including a multifunction school
                    activity bus.
                (7) Motorcoach services.--The term ``motorcoach services''
            means passenger transportation by motorcoach for compensation.
                (8) Multifunction school activity bus.--The term
            ``multifunction school activity bus'' has the meaning given the
            term in section 571.3(b) of title 49, Code of Federal
            Regulations (as in effect on the day before the date of
            enactment of this Act).
                (9) Portal.--The term ``portal'' means any opening on the
            front, side, rear, or roof of a motorcoach that could, in the
            event of a crash involving the motorcoach, permit the partial or
            complete ejection of any occupant from the motorcoach, including
            a young child.
                (10) Provider of motorcoach services.--The term ``provider
            of motorcoach services'' means a motor carrier that provides
            passenger transportation services with a motorcoach, including
            per-trip compensation and contracted or chartered compensation.
                (11) Public transportation.--The term ``public
            transportation'' has the meaning given the term in section 5302
            of title 49, United States Code.
                (12) Safety belt.--The term ``safety belt'' has the meaning
            given the term in section 153(i)(4)(B) of title 23, United
            States Code.
                (13) Secretary.--The term ``Secretary'' means the Secretary
            of Transportation.
    SEC. 32703. <<NOTE: Deadlines. 49 USC 31136 note.>> REGULATIONS
                                FOR IMPROVED OCCUPANT PROTECTION,
                                PASSENGER EVACUATION, AND CRASH
                                AVOIDANCE.

        (a) Regulations Required Within 1 Year.--Not later than 1 year after
    the date of enactment of this Act, the Secretary shall prescribe
    regulations requiring safety belts to be installed in motorcoaches at
    each designated seating position.
        (b) Regulations Required Within 2 Years.--Not later than 2 years
    after the date of enactment of this Act, the Secretary shall prescribe
    regulations that address the following commercial motor vehicle
    standards, if the Secretary determines that such standards meet the
    requirements and considerations set forth in subsections (a) and (b) of
    section 30111 of title 49, United States Code:
                (1) Roof strength and crush resistance.--The Secretary shall
            establish improved roof and roof support standards for

    [[Page 126 STAT. 811]]

            motorcoaches that substantially improve the resistance of
            motorcoach roofs to deformation and intrusion to prevent serious
            occupant injury in rollover crashes involving motorcoaches.
                (2) <<NOTE: Standards.>> Anti-ejection safety
            countermeasures.--The Secretary shall consider requiring
            advanced glazing standards for each motorcoach portal and shall
            consider other portal improvements to prevent partial and
            complete ejection of motorcoach passengers, including children.
            In prescribing such standards, the Secretary shall consider the
            impact of such standards on the use of motorcoach portals as a
            means of emergency egress.
                (3) Rollover crash avoidance.--The Secretary shall consider
            requiring motorcoaches to be equipped with stability enhancing
            technology, such as electronic stability control and torque
            vectoring, to reduce the number and frequency of rollover
            crashes among motorcoaches.

        (c) Commercial Motor Vehicle Tire Pressure Monitoring Systems.--
    <<NOTE: Deadline.>> Not later than 3 years after the date of enactment
    of this Act, the Secretary shall prescribe the following commercial
    vehicle regulation:
                (1) In general.--The Secretary shall consider requiring
            motorcoaches to be equipped with direct tire pressure monitoring
            systems that warn the operator of a commercial motor vehicle
            when any tire exhibits a level of air pressure that is below a
            specified level of air pressure established by the Secretary, if
            the Secretary determines that such standards meet the
            requirements and considerations set forth in subsections (a) and
            (b) of section 30111 of title 49, United States Code.
                (2) Performance requirements.--In any standard adopted under
            paragraph (1), the Secretary shall include performance
            requirements to meet the objectives identified in paragraph (1)
            of this subsection.

        (d) <<NOTE: Deadline.>> Tire Performance Standard.--Not later than 3
    years after the date of enactment of this Act, the Secretary shall
    consider--
                (1) issuing a rule to upgrade performance standards for
            tires used on motorcoaches, including an enhanced endurance test
            and a new high-speed performance test; or
                (2) <<NOTE: Reports.>> if the Secretary determines that a
            standard does not meet the requirements and considerations set
            forth in subsections (a) and (b) of section 30111 of title 49,
            United States Code, submit a report that describes the reasons
            for not prescribing such a standard to--
                        (A) the Committee on Commerce, Science, and
                    Transportation of the Senate;
                        (B) the Committee on Transportation and
                    Infrastructure of the House of Representatives; and
                        (C) the Committee on Energy and Commerce of the
                    House of Representatives.

        (e) Application of Regulations.--
                (1) New motorcoaches.--Any regulation prescribed in
            accordance with subsection (a), (b), (c), or (d) shall--
                        (A) apply to all motorcoaches manufactured more than
                    3 years after the date on which the regulation is
                    published as a final rule;

    [[Page 126 STAT. 812]]

                        (B) take into account the impact to seating capacity
                    of changes to size and weight of motorcoaches and the
                    ability to comply with State and Federal size and weight
                    requirements; and
                        (C) be based on the best available science.
                (2) Retrofit assessment for existing motorcoaches.--
                        (A) In general.--The Secretary may assess the
                    feasibility, benefits, and costs with respect to the
                    application of any requirement established under
                    subsection (a) or (b)(2) to motorcoaches manufactured
                    before the date on which the requirement applies to new
                    motorcoaches under paragraph (1).
                        (B) Report.--The Secretary shall submit a report on
                    the assessment to the Committee on Commerce, Science,
                    and Transportation of the Senate and the Committee on
                    Transportation and Infrastructure and the Committee on
                    Energy and Commerce of the House of Representatives not
                    later than 2 years after the date of enactment of this
                    Act.
    SEC. 32704. <<NOTE: 49 USC 31136 note.>> FIRE PREVENTION AND
                                MITIGATION.

        (a) Research and Testing.--The Secretary shall conduct research and
    testing to determine the most prevalent causes of motorcoach fires and
    the best methods to prevent such fires and to mitigate the effect of
    such fires, both inside and outside the motorcoach. Such research and
    testing shall consider flammability of exterior components, smoke
    suppression, prevention of and resistance to wheel well fires, automatic
    fire suppression, passenger evacuation, causation and prevention of
    motorcoach fires, and improved fire extinguishers.
        (b) <<NOTE: Deadline.>> Standards.--Not later than 3 years after the
    date of enactment of this Act, the Secretary may issue fire prevention
    and mitigation standards for motorcoaches, based on the results of the
    Secretary's research and testing, taking into account highway size and
    weight restrictions applicable to motorcoaches, if the Secretary
    determines that such standards meet the requirements and considerations
    set forth in subsections (a) and (b) of section 30111 of title 49,
    United States Code.
    SEC. 32705. <<NOTE: 49 USC 31136 note.>> OCCUPANT PROTECTION,
                                COLLISION AVOIDANCE, FIRE CAUSATION,
                                AND FIRE EXTINGUISHER RESEARCH AND
                                TESTING.

        (a) <<NOTE: Deadlines.>> Safety Research Initiatives.--Not later
    than 3 years after the date of enactment of this Act, the Secretary
    shall complete the following research and testing:
                (1) Interior impact protection.--The Secretary shall
            research and test enhanced occupant impact protection
            technologies for motorcoach interiors to reduce serious injuries
            for all passengers of motorcoaches.
                (2) Compartmentalization safety countermeasures.--The
            Secretary shall research and test enhanced compartmentalization
            safety countermeasures for motorcoaches, including enhanced
            seating designs.
                (3) Collision avoidance systems.--The Secretary shall
            research and test forward and lateral crash warning systems
            applications for motorcoaches.

        (b) <<NOTE: Deadline.>> Rulemaking.--Not later than 2 years after
    the completion of each research and testing initiative required under
    subsection

    [[Page 126 STAT. 813]]

    (a), the Secretary shall issue final motor vehicle safety standards if
    the Secretary determines that such standards meet the requirements and
    considerations set forth in subsections (a) and (b) of section 30111 of
    title 49, United States Code.
    SEC. <<NOTE: 49 USC 31136 note.>> 32706. CONCURRENCE OF RESEARCH
                                AND RULEMAKING.

        (a) Requirements.--To the extent feasible, the Secretary shall
    ensure that research programs are carried out concurrently, and in a
    manner that concurrently assesses results, potential countermeasures,
    costs, and benefits.
        (b) Authority to Combine Rulemakings.--When considering each of the
    rulemaking provisions, the Secretary may initiate a single rulemaking
    proceeding encompassing all aspects or may combine the rulemakings as
    the Secretary deems appropriate.
        (c) Considerations.--If the Secretary undertakes separate rulemaking
    proceedings, the Secretary shall--
                (1) consider whether each added aspect of rulemaking may
            contribute to addressing the safety need determined to require
            rulemaking;
                (2) consider the benefits obtained through the safety belts
            rulemaking in section 32703(a); and
                (3) avoid duplicative benefits, costs, and countermeasures.
    SEC. <<NOTE: 49 USC 31136 note.>> 32707. IMPROVED OVERSIGHT OF
                                MOTORCOACH SERVICE PROVIDERS.

        (a) Safety Reviews.--Section 31144, as amended by section 32202 of
    this Act, is amended by adding at the end the following:
        ``(i) Periodic Safety Reviews of Owners and Operators of Interstate
    For-hire Commercial Motor Vehicles Designed or Used to Transport
    Passengers.--
                ``(1) Safety review.--
                        ``(A) In general.--The Secretary shall--
                              ``(i) <<NOTE: Determination.>> determine the
                          safety fitness of each motor carrier of passengers
                          who the Secretary registers under section 13902 or
                          31134 through a simple and understandable rating
                          system that allows passengers to compare the
                          safety performance of each such motor carrier; and
                              ``(ii) assign a safety fitness rating to each
                          such motor carrier.
                        ``(B) <<NOTE: Time periods.>> Applicability.--
                    Subparagraph (A) shall apply--
                              ``(i) to any provider of motorcoach services
                          registered with the Administration after the date
                          of enactment of the Motorcoach Enhanced Safety Act
                          of 2012 beginning not later than 2 years after the
                          date of such registration; and
                              ``(ii) to any provider of motorcoach services
                          registered with the Administration on or before
                          the date of enactment of that Act beginning not
                          later than 3 years after the date of enactment of
                          that Act.
                ``(2) <<NOTE: Regulations.>> Periodic review.--The Secretary
            shall establish, by regulation, a process for monitoring the
            safety performance of each motor carrier of passengers on a
            regular basis following the assignment of a safety fitness
            rating, including progressive intervention to correct unsafe
            practices.
                ``(3) Enforcement strike forces.--In addition to the
            enhanced monitoring and enforcement actions required under

    [[Page 126 STAT. 814]]

            paragraph (2), the Secretary may organize special enforcement
            strike forces targeting motor carriers of passengers.
                ``(4) Periodic update of safety fitness rating.--In
            conducting the safety reviews required under this subsection,
            the Secretary shall--
                        ``(A) reassess the safety fitness rating of each
                    motor carrier of passengers not less frequently than
                    once every 3 years; and
                        ``(B) annually assess the safety fitness of certain
                    motor carriers of passengers that serve primarily urban
                    areas with high passenger loads.''.

        (b) Disclosure of Safety Performance Ratings of Motorcoach Services
    and Operations.--
                (1) Definitions.--In this subsection:
                        (A) Motorcoach.--
                              (i) In general.--Except as provided in clause
                          (ii), the term ``motorcoach'' has the meaning
                          given the term ``over-the-road bus'' in section
                          3038(a)(3) of the Transportation Equity Act for
                          the 21st Century (49 U.S.C. 5310 note).
                              (ii) Exclusions.--The term ``motorcoach'' does
                          not include--
                                        (I) a bus used in public
                                    transportation that is provided by a
                                    State or local government; or
                                        (II) a school bus (as defined in
                                    section 30125(a)(1) of title 49, United
                                    States Code), including a multifunction
                                    school activity bus.
                        (B) Motorcoach services and operations.--The term
                    ``motorcoach services and operations'' means passenger
                    transportation by a motorcoach for compensation.
                (2) Requirements for the disclosure of safety performance
            ratings of motorcoach services and operations.--
                        (A) <<NOTE: Deadline. Notice. Public comments.>> In
                    general.--Not later than 1 year after the date of
                    enactment of this Act, the Secretary shall establish,
                    through notice and opportunity for public to comment,
                    requirements to improve the accessibility to the public
                    of safety rating information of motorcoach services and
                    operations.
                        (B) Display.--In establishing the requirements under
                    subparagraph (A), the Secretary shall consider
                    requirements for each motor carrier that owns or leases
                    1 or more motorcoaches that transport passengers subject
                    to the Secretary's jurisdiction under section 13501 of
                    title 49, United States Code, to prominently display
                    safety fitness information pursuant to section 31144 of
                    title 49, United States Code--
                              (i) in each terminal of departure;
                              (ii) in the motorcoach and visible from a
                          position exterior to the vehicle at the point of
                          departure, if the motorcoach does not depart from
                          a terminal; and
                              (iii) at all points of sale for such
                          motorcoach services and operations.

    [[Page 126 STAT. 815]]

    SEC. 32708. <<NOTE: 49 USC 31136 note.>> REPORT ON FEASIBILITY,
                                BENEFITS, AND COSTS OF ESTABLISHING A
                                SYSTEM OF CERTIFICATION OF TRAINING
                                PROGRAMS.

        Not later than 2 years after the date of enactment of this Act, the
    Secretary of Transportation shall submit a report to the Committee on
    Commerce, Science, and Transportation of the Senate and the Committee on
    Transportation and Infrastructure of the House of Representatives that
    describes the feasibility, benefits, and costs of establishing a system
    of certification of public and private schools and of motor carriers and
    motorcoach operators that provide motorcoach driver training.
    SEC. 32709. <<NOTE: 49 USC 31136 note.>> COMMERCIAL DRIVER'S
                                LICENSE PASSENGER ENDORSEMENT
                                REQUIREMENTS.

        (a) <<NOTE: Deadline. Review. Assessment.>> In General.--Not later
    than 2 years after the date of enactment of this Act, the Secretary of
    Transportation shall review and assess the current knowledge and skill
    testing requirements for a commercial driver's license passenger
    endorsement to determine what improvements to the knowledge test, the
    examination of driving skills, and the application of such requirements
    are necessary to ensure the safe operation of commercial motor vehicles
    designed or used to transport passengers.

        (b) Report.--Not later than 120 days after completion of the review
    and assessment under subsection (a), the Secretary of Transportation
    shall submit to the Committee on Transportation and Infrastructure of
    the House of Representatives and the Committee on Commerce, Science, and
    Transportation of the Senate--
                (1) a report on the review and assessment conducted under
            subsection (a);
                (2) a plan to implement any changes to the knowledge and
            skills tests; and
                (3) a timeframe by which the Secretary will implement the
            changes.
    SEC. 32710. <<NOTE: 49 USC 31136 note.>> SAFETY INSPECTION PROGRAM
                                FOR COMMERCIAL MOTOR VEHICLES OF
                                PASSENGERS.

        Not later than <<NOTE: Deadline. Regulations.>>  3 years after the
    date of enactment of this Act, the Secretary of Transportation shall
    complete a rulemaking proceeding to consider requiring States to
    establish a program for annual inspections of commercial motor vehicles
    designed or used to transport passengers, including an assessment of--
                (1) the risks associated with improperly maintained or
            inspected commercial motor vehicles designed or used to
            transport passengers;
                (2) the effectiveness of existing Federal standards for the
            inspection of such vehicles in--
                        (A) mitigating the risks described in paragraph (1);
                    and
                        (B) ensuring the safe and proper operation condition
                    of such vehicles; and
                (3) the costs and benefits of a mandatory inspection
            program.
    SEC. 32711. <<NOTE: 49 USC 31136 note.>> REGULATIONS.

        Any standard or regulation prescribed or modified pursuant to the
    Motorcoach Enhanced Safety Act of 2012 shall be prescribed or modified
    in accordance with section 553 of title 5, United States Code.

    [[Page 126 STAT. 816]]

            Subtitle H--Safe Highways and Infrastructure Preservation

    SEC. 32801. COMPREHENSIVE TRUCK SIZE AND WEIGHT LIMITS STUDY.

        (a) <<NOTE: Deadline.>> Truck Size and Weight Limits Study.--Not
    later than 45 days after the date of enactment of this Act, the
    Secretary, in consultation with each relevant State and other applicable
    Federal agencies, shall commence a comprehensive truck size and weight
    limits study. The study shall--
                (1) provide data on accident frequency and evaluate factors
            related to accident risk of vehicles that operate with size and
            weight limits that are in excess of the Federal law and
            regulations in each State that allows vehicles to operate with
            size and weight limits that are in excess of the Federal law and
            regulations, or to operate under a Federal exemption or
            grandfather right, in comparison to vehicles that do not operate
            in excess of Federal law and regulations (other than vehicles
            with exemptions or grandfather rights);
                (2) evaluate the impacts to the infrastructure in each State
            that allows a vehicle to operate with size and weight limits
            that are in excess of the Federal law and regulations, or to
            operate under a Federal exemption or grandfather right, in
            comparison to vehicles that do not operate in excess of Federal
            law and regulations (other than vehicles with exemptions or
            grandfather rights), including--
                        (A) the cost and benefits of the impacts in dollars;
                        (B) the percentage of trucks operating in excess of
                    the Federal size and weight limits; and
                        (C) the ability of each State to recover the cost
                    for the impacts, or the benefits incurred;
                (3) evaluate the frequency of violations in excess of the
            Federal size and weight law and regulations, the cost of the
            enforcement of the law and regulations, and the effectiveness of
            the enforcement methods;
                (4) assess the impacts that vehicles that operate with size
            and weight limits in excess of the Federal law and regulations,
            or that operate under a Federal exemption or grandfather right,
            in comparison to vehicles that do not operate in excess of
            Federal law and regulations (other than vehicles with exemptions
            or grandfather rights), have on bridges, including the impacts
            resulting from the number of bridge loadings;
                (5) compare and contrast the potential safety and
            infrastructure impacts of the current Federal law and
            regulations regarding truck size and weight limits in relation
            to--
                        (A) six-axle and other alternative configurations of
                    tractor-trailers; and
                        (B) where available, safety records of foreign
                    nations with truck size and weight limits and tractor-
                    trailer configurations that differ from the Federal law
                    and regulations; and
                (6) estimate--
                        (A) the extent to which freight would likely be
                    diverted from other surface transportation modes to
                    principal arterial routes and National Highway System
                    intermodal connectors if alternative truck configuration
                    is allowed to

    [[Page 126 STAT. 817]]

                    operate and the effect that any such diversion would
                    have on other modes of transportation;
                        (B) the effect that any such diversion would have on
                    public safety, infrastructure, cost responsibilities,
                    fuel efficiency, freight transportation costs, and the
                    environment;
                        (C) the effect on the transportation network of the
                    United States that allowing alternative truck
                    configuration to operate would have; and
                        (D) whether allowing alternative truck configuration
                    to operate would result in an increase or decrease in
                    the total number of trucks operating on principal
                    arterial routes and National Highway System intermodal
                    connectors; and
                (7) identify all Federal rules and regulations impacted by
            changes in truck size and weight limits.

        (b) Report.--Not later than 2 years after the date that the study is
    commenced under subsection (a), the Secretary shall submit a final
    report on the study, including all findings and recommendations, to the
    Committee on Commerce, Science, and Transportation and the Committee on
    Environment and Public Works of the Senate and the Committee on
    Transportation and Infrastructure of the House of Representatives.
    SEC. 32802. COMPILATION OF EXISTING STATE TRUCK SIZE AND WEIGHT
                                LIMIT LAWS.

        (a) <<NOTE: Deadline.>> In General.--Not later than 90 days after
    the date of enactment of this Act, the Secretary, in consultation with
    the States, shall begin to compile <<NOTE: Lists.>> --
                (1) a list for each State, as applicable, that describes
            each route of the National Highway System that allows a vehicle
            to operate in excess of the Federal truck size and weight limits
            that--
                        (A) was authorized under State law on or before the
                    date of enactment of this Act; and
                        (B) was in actual and lawful operation on a regular
                    or periodic basis (including seasonal operations) on or
                    before the date of enactment of this Act;
                (2) a list for each State, as applicable, that describes--
                        (A) the size and weight limitations applicable to
                    each segment of the National Highway System in that
                    State as listed under paragraph (1);
                        (B) each combination that exceeds the Interstate
                    weight limit, but that the Department of Transportation,
                    other Federal agency, or a State agency has determined
                    on or before the date of enactment of this Act, could be
                    or could have been lawfully operated in the State; and
                        (C) each combination that exceeds the Interstate
                    weight limit, but that the Secretary determines could
                    have been lawfully operated on a non-Interstate segment
                    of the National Highway System in the State on or before
                    the date of enactment of this Act; and
                (3) a list of each State law that designates or allows
            designation of size and weight limitations in excess of Federal
            law and regulations on routes of the National Highway System,
            including nondivisible loads.

        (b) Specifications.--The Secretary, in consultation with the States,
    shall specify whether the determinations under paragraphs

    [[Page 126 STAT. 818]]

    (1) and (2) of subsection (a) were made by the Department of
    Transportation, other Federal agency, or a State agency.
        (c) Report.--Not later than 2 years after the date of enactment of
    this Act, the Secretary shall submit a final report of the compilation
    under subsection (a) to the Committee on Commerce, Science, and
    Transportation and the Committee on Environment and Public Works of the
    Senate and the Committee on Transportation and Infrastructure of the
    House of Representatives.

                            Subtitle I--Miscellaneous

                              PART I--MISCELLANEOUS

    SEC. 32911. PROHIBITION OF COERCION.

        Section 31136(a) is amended by--
                (1) striking ``and'' at the end of paragraph (3);
                (2) striking the period at the end of paragraph (4) and
            inserting ``; and''; and
                (3) adding after subsection (4) the following:
                ``(5) an operator of a commercial motor vehicle is not
            coerced by a motor carrier, shipper, receiver, or transportation
            intermediary to operate a commercial motor vehicle in violation
            of a regulation promulgated under this section, or chapter 51 or
            chapter 313 of this title.''.
    SEC. 32912. MOTOR CARRIER SAFETY ADVISORY COMMITTEE.

        Section 4144(d) of the Safe, Accountable, Flexible, Efficient
    Transportation Equity Act: A Legacy for Users (49 U.S.C. 31100 note), is
    amended by striking ``June 30, 2012'' and inserting ``September 30,
    2013''.
    SEC. 32913. WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS.

        (a) <<NOTE: Web posting.>> Exemption Standards.--Section 31315(b)(4)
    is amended--
                (1) in subparagraph (A), by inserting ``(or, in the case of
            a request for an exemption from the physical qualification
            standards for commercial motor vehicle drivers, post on a web
            site established by the Secretary to implement the requirements
            of section 31149)'' after ``Federal Register'';
                (2) by amending subparagraph (B) to read as follows:
                        ``(B) Upon granting a request.-- <<NOTE: Federal
                    Register, publication.>> Upon granting a request and
                    before the effective date of the exemption, the
                    Secretary shall publish in the Federal Register (or, in
                    the case of an exemption from the physical qualification
                    standards for commercial motor vehicle drivers, post on
                    a web site established by the Secretary to implement the
                    requirements of section 31149) the name of the person
                    granted the exemption, the provisions from which the
                    person is exempt, the effective period, and the terms
                    and conditions of the exemption.''; and
                (3) in subparagraph (C), by inserting ``(or, in the case of
            a request for an exemption from the physical qualification
            standards for commercial motor vehicle drivers, post on a web
            site established by the Secretary to implement the requirements
            of section 31149)'' after ``Federal Register''.

        (b) Providing Notice of Exemptions to State Personnel.--Section
    31315(b)(7) is amended to read as follows:

    [[Page 126 STAT. 819]]

                ``(7) Notification of state compliance and enforcement
            personnel.--Before the effective date of an exemption, the
            Secretary shall notify a State safety compliance and enforcement
            agency, and require the agency to notify the State's roadside
            inspectors, that a person will be operating pursuant to an
            exemption and the terms and conditions that apply to the
            exemption.''.

        (c) Pilot Programs.--Section 31315(c)(1) is amended by striking ``in
    the Federal Register''.
        (d) Report to Congress.--Section 31315 is amended by adding after
    subsection (d) the following:
        ``(e) Report to Congress.--The Secretary shall submit an annual
    report to the Committee on Commerce, Science, and Transportation of the
    Senate and the Committee on Transportation and Infrastructure of the
    House of Representatives listing the waivers, exemptions, and pilot
    programs granted under this section, and any impacts on safety.
        ``(f) Web Site.--The Secretary shall ensure that the Federal Motor
    Carrier Safety Administration web site includes a link to the web site
    established by the Secretary to implement the requirements under
    sections 31149 and 31315. <<NOTE: Public information.>> The link shall
    be in a clear and conspicuous location on the home page of the Federal
    Motor Carrier Safety Administration web site and be easily accessible to
    the public.''.
    SEC. 32914. REGISTRATION REQUIREMENTS.

        (a) Requirements for Registration.--Section 13901 is amended to read
    as follows:
    ``Sec. 13901. Requirements for registration

        ``(a) In General.--A person may provide transportation as a motor
    carrier subject to jurisdiction under subchapter I of chapter 135 or
    service as a freight forwarder subject to jurisdiction under subchapter
    III of such chapter, or service as a broker for transportation subject
    to jurisdiction under subchapter I of such chapter only if the person is
    registered under this chapter to provide such transportation or service.
        ``(b) Registration Numbers.--
                ``(1) In general.--If the Secretary registers a person under
            this chapter to provide transportation or service, including as
            a motor carrier, freight forwarder, or broker, the Secretary
            shall issue a distinctive registration number to the person for
            each such authority to provide transportation or service for
            which the person is registered.
                ``(2) Transportation or service type indicator.--A number
            issued under paragraph (1) shall include an indicator of the
            type of transportation or service for which the registration
            number is issued, including whether the registration number is
            issued for registration of a motor carrier, freight forwarder,
            or broker.

        ``(c) Specification of Authority.--For each agreement to provide
    transportation or service for which registration is required under this
    chapter, the registrant shall specify, in writing, the authority under
    which the person is providing such transportation or service.''.
        (b) Availability of Information.--

    [[Page 126 STAT. 820]]

                (1) In general.--Chapter 139 is amended by adding at the end
            the following:
    ``Sec. 13909. Availability of information

        ``The Secretary <<NOTE: Public information. Web posting.>> shall
    make information relating to registration and financial security
    required by this chapter publicly available on the Internet, including--
                ``(1) the names and business addresses of the principals of
            each entity holding such registration;
                ``(2) the status of such registration; and
                ``(3) the electronic address of the entity's surety provider
            for the submission of claims.''.
                (2) Conforming amendment.--The analysis for chapter 139 is
            amended by adding at the end the following:

    ``13909. Availability of information.''.

    SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION REQUIREMENTS.

        Section 13902, as amended by sections 32101 and 32107(a) of this
    Act, is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by inserting ``using self-
                    propelled vehicles the motor carrier owns, rents, or
                    leases'' after ``motor carrier''; and
                        (B) by adding at the end the following:
                ``(6) Separate registration required.--A motor carrier may
            not broker transportation services unless the motor carrier has
            registered as a broker under this chapter.''; and
                (2) by inserting after subsection (h) the following:

        ``(i) Registration as Freight Forwarder or Broker Required.--A motor
    carrier registered under this chapter--
                ``(1) may only provide transportation of property with--
                        ``(A) self-propelled motor vehicles owned or leased
                    by the motor carrier; or
                        ``(B) interchanges under regulations issued by the
                    Secretary if the originating carrier--
                              ``(i) physically transports the cargo at some
                          point; and
                              ``(ii) retains liability for the cargo and for
                          payment of interchanged carriers; and
                ``(2) may not arrange transportation described in paragraph
            (1) unless the motor carrier has obtained a separate
            registration as a freight forwarder or broker for transportation
            under section 13903 or 13904, as applicable.''.
    SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS.

        (a) Registration of Freight Forwarders.--Section 13903, as amended
    by section 32107(b) of this Act, is amended--
                (1) in subsection (a)--
                        (A) by striking ``finds that the person is fit'' and
                    inserting the following: ``determines that the person--
                ``(1) has sufficient experience to qualify the person to act
            as a freight forwarder; and
                ``(2) is fit''; and
                        (B) by striking ``and the Board'';
                (2) by redesignating subsections (b) and (c) as subsections
            (d) and (e), respectively;

    [[Page 126 STAT. 821]]

                (3) by inserting after subsection (a) the following:

        ``(b) Duration.--A registration issued under subsection (a) shall
    only remain in effect while the freight forwarder is in compliance with
    section 13906(c).
        ``(c) Experience or Training Requirement.--Each freight forwarder
    shall employ, as an officer, an individual who--
                ``(1) has at least 3 years of relevant experience; or
                ``(2) provides the Secretary with satisfactory evidence of
            the individual's knowledge of related rules, regulations, and
            industry practices.''; and
                (4) by amending subsection (d), as redesignated, to read as
            follows:

        ``(d) Registration as Motor Carrier Required.--
                ``(1) In general.--A freight forwarder may not provide
            transportation as a motor carrier unless the freight forwarder
            has registered separately under this chapter to provide
            transportation as a motor carrier.''.

        (b) Registration of Brokers.--Section 13904, as amended by section
    32107(c) of this Act, is amended--
                (1) in subsection (a), by striking ``finds that the person
            is fit'' and inserting the following: ``determines that the
            person--
                ``(1) has sufficient experience to qualify the person to act
            as a broker for transportation; and
                ``(2) is fit'';
                (2) by redesignating subsections (b), (c), (d), and (e) as
            subsections (d), (e), (f), and (g) respectively;
                (3) by inserting after subsection (a) the following:

        ``(b) Duration.--A registration issued under subsection (a) shall
    only remain in effect while the broker for transportation is in
    compliance with section 13906(b).
        ``(c) Experience or Training Requirements.--Each broker shall
    employ, as an officer, an individual who--
                ``(1) has at least 3 years of relevant experience; or
                ``(2) provides the Secretary with satisfactory evidence of
            the individual's knowledge of related rules, regulations, and
            industry practices.'';
                (4) by amending subsection (d), as redesignated, to read as
            follows:

        ``(d) Registration as Motor Carrier Required.--
                ``(1) In general.--A broker for transportation may not
            provide transportation as a motor carrier unless the broker has
            registered separately under this chapter to provide
            transportation as a motor carrier.
                ``(2) Limitation.--This subsection does not apply to a motor
            carrier registered under this chapter or to an employee or agent
            of the motor carrier to the extent the transportation is to be
            provided entirely by the motor carrier, with other registered
            motor carriers, or with rail or water carriers.''; and
                (5) by amending subsection (e), as redesignated, to read as
            follows:

        ``(e) Regulation to Protect Motor Carriers and Shippers.--
    Regulations of the Secretary applicable to brokers registered under this
    section shall provide for the protection of motor carriers and shippers
    by motor vehicle.''.
    SEC. 32917. EFFECTIVE PERIODS OF REGISTRATION.

        Section 13905(c) is amended to read as follows:

    [[Page 126 STAT. 822]]

        ``(c) Effective Period.--
                ``(1) In general.--Except as otherwise provided in this
            part, each registration issued under section 13902, 13903, or
            13904--
                        ``(A) shall be effective beginning on the date
                    specified by the Secretary; and
                        ``(B) shall remain in effect for such period as the
                    Secretary determines appropriate by regulation.
                ``(2) Reissuance of registration.--
                        ``(A) <<NOTE: Deadline.>>  Requirement.--Not later
                    than 4 years after the date of enactment of the
                    Commercial Motor Vehicle Safety Enhancement Act of 2012,
                    the Secretary shall require a freight forwarder or
                    broker to renew its registration issued under this
                    chapter.
                        ``(B) Effective period.--Each registration renewal
                    under subparagraph (A)--
                              ``(i) shall expire not later than 5 years
                          after the date of such renewal; and
                              ``(ii) may be further renewed as provided
                          under this chapter.''.
    SEC. 32918. FINANCIAL SECURITY OF BROKERS AND FREIGHT FORWARDERS.

        (a) In General.--Section 13906 is amended by striking subsections
    (b) and (c) and inserting the following:
        ``(b) Broker Financial Security Requirements.--
                ``(1) Requirements.--
                        ``(A) In general.--The Secretary may register a
                    person as a broker under section 13904 only if the
                    person files with the Secretary a surety bond, proof of
                    trust fund, or other financial security, or a
                    combination thereof, in a form and amount, and from a
                    provider, determined by the Secretary to be adequate to
                    ensure financial responsibility.
                        ``(B) Use of a group surety bond, trust fund, or
                    other surety.--In implementing the standards established
                    by subparagraph (A), the Secretary may authorize the use
                    of a group surety bond, trust fund, or other financial
                    security, or a combination thereof, that meets the
                    requirements of this subsection.
                        ``(C) Proof of trust or other financial security.--
                    For purposes of subparagraph (A), a trust fund or other
                    financial security may be acceptable to the Secretary
                    only if the trust fund or other financial security
                    consists of assets readily available to pay claims
                    without resort to personal guarantees or collection of
                    pledged accounts receivable.
                ``(2) Scope of financial responsibility.--
                        ``(A) Payment of claims.--A surety bond, trust fund,
                    or other financial security obtained under paragraph (1)
                    shall be available to pay any claim against a broker
                    arising from its failure to pay freight charges under
                    its contracts, agreements, or arrangements for
                    transportation subject to jurisdiction under chapter 135
                    if--
                              ``(i) subject to the review by the surety
                          provider, the broker consents to the payment;

    [[Page 126 STAT. 823]]

                              ``(ii) in any case in which the broker does
                          not respond to adequate notice to address the
                          validity of the claim, the surety provider
                          determines that the claim is valid; or
                              ``(iii) the claim is not resolved within a
                          reasonable period of time following a reasonable
                          attempt by the claimant to resolve the claim under
                          clauses (i) and (ii), and the claim is reduced to
                          a judgment against the broker.
                        ``(B) Response of surety providers to claims.--If a
                    surety provider receives notice of a claim described in
                    subparagraph (A), the surety provider shall--
                              ``(i) <<NOTE: Deadline.>> respond to the claim
                          on or before the 30th day following the date on
                          which the notice was received; and
                              ``(ii) in the case of a denial, set forth in
                          writing for the claimant the grounds for the
                          denial.
                        ``(C) Costs and attorney's fees.--In any action
                    against a surety provider to recover on a claim
                    described in subparagraph (A), the prevailing party
                    shall be entitled to recover its reasonable costs and
                    attorney's fees.
                ``(3) Minimum financial security.--Each broker subject to
            the requirements of this section shall provide financial
            security of $75,000 for purposes of this subsection, regardless
            of the number of branch offices or sales agents of the broker.
                ``(4) Cancellation notice.--If a financial security required
            under this subsection is canceled--
                        ``(A) <<NOTE: Deadline.>> the holder of the
                    financial security shall provide electronic notification
                    to the Secretary of the cancellation not later than 30
                    days before the effective date of the cancellation; and
                        ``(B) <<NOTE: Web posting.>> the Secretary shall
                    immediately post such notification on the public
                    Internet Website of the Department of Transportation.
                ``(5) Suspension.--The Secretary shall immediately suspend
            the registration of a broker issued under this chapter if the
            available financial security of that person falls below the
            amount required under this subsection.
                ``(6) Payment of claims in cases of financial failure or
            insolvency.--If a broker registered under this chapter
            experiences financial failure or insolvency, the surety provider
            of the broker shall--
                        ``(A) <<NOTE: Notification. Public information. Time
                    period.>> submit a notice to cancel the financial
                    security to the Administrator in accordance with
                    paragraph (4);
                        ``(B) publicly advertise for claims for 60 days
                    beginning on the date of publication by the Secretary of
                    the notice to cancel the financial security; and
                        ``(C) pay, <<NOTE: Deadline.>> not later than 30
                    days after the expiration of the 60-day period for
                    submission of claims--
                              ``(i) all uncontested claims received during
                          such period; or
                              ``(ii) a pro rata share of such claims if the
                          total amount of such claims exceeds the financial
                          security available.
                ``(7) Penalties.--
                        ``(A) Civil actions.--Either the Secretary or the
                    Attorney General of the United States may bring a civil

    [[Page 126 STAT. 824]]

                    action in an appropriate district court of the United
                    States to enforce the requirements of this subsection or
                    a regulation prescribed or order issued under this
                    subsection. The court may award appropriate relief,
                    including injunctive relief.
                        ``(B) Civil penalties.--If the Secretary determines,
                    after notice and opportunity for a hearing, that a
                    surety provider of a broker registered under this
                    chapter has violated the requirements of this subsection
                    or a regulation prescribed under this subsection, the
                    surety provider shall be liable to the United States for
                    a civil penalty in an amount not to exceed $10,000.
                        ``(C) Eligibility.--If the Secretary determines,
                    after notice and opportunity for a hearing, that a
                    surety provider of a broker registered under this
                    chapter has violated the requirements of this subsection
                    or a regulation prescribed under this subsection, the
                    surety provider shall be ineligible to provider broker
                    financial security for 3 years.
                ``(8) Deduction of costs prohibited.--The amount of the
            financial security required under this subsection may not be
            reduced by deducting attorney's fees or administrative costs.

        ``(c) Freight Forwarder Financial Security Requirements.--
                ``(1) Requirements.--
                        ``(A) In general.--The Secretary may register a
                    person as a freight forwarder under section 13903 only
                    if the person files with the Secretary a surety bond,
                    proof of trust fund, other financial security, or a
                    combination of such instruments, in a form and amount,
                    and from a provider, determined by the Secretary to be
                    adequate to ensure financial responsibility.
                        ``(B) Use of a group surety bond, trust fund, or
                    other financial security.--In implementing the standards
                    established under subparagraph (A), the Secretary may
                    authorize the use of a group surety bond, trust fund,
                    other financial security, or a combination of such
                    instruments, that meets the requirements of this
                    subsection.
                        ``(C) Surety bonds.--A surety bond obtained under
                    this section may only be obtained from a bonding company
                    that has been approved by the Secretary of the Treasury.
                        ``(D) Proof of trust or other financial security.--
                    For purposes of subparagraph (A), a trust fund or other
                    financial security may not be accepted by the Secretary
                    unless the trust fund or other financial security
                    consists of assets readily available to pay claims
                    without resort to personal guarantees or collection of
                    pledged accounts receivable.
                ``(2) Scope of financial responsibility.--
                        ``(A) Payment of claims.--A surety bond, trust fund,
                    or other financial security obtained under paragraph (1)
                    shall be available to pay any claim against a freight
                    forwarder arising from its failure to pay freight
                    charges under its contracts, agreements, or arrangements
                    for transportation subject to jurisdiction under chapter
                    135 if--
                              ``(i) subject to the review by the surety
                          provider, the freight forwarder consents to the
                          payment;

    [[Page 126 STAT. 825]]

                              ``(ii) in the case the freight forwarder does
                          not respond to adequate notice to address the
                          validity of the claim, the surety provider
                          determines the claim is valid; or
                              ``(iii) the claim--
                                        ``(I) is not resolved within a
                                    reasonable period of time following a
                                    reasonable attempt by the claimant to
                                    resolve the claim under clauses (i) and
                                    (ii); and
                                        ``(II) is reduced to a judgment
                                    against the freight forwarder.
                        ``(B) <<NOTE: Notice.>>  Response of surety
                    providers to claims.--If a surety provider receives
                    notice of a claim described in subparagraph (A), the
                    surety provider shall--
                              ``(i) <<NOTE: Deadline.>>  respond to the
                          claim on or before the 30th day following receipt
                          of the notice; and
                              ``(ii) in the case of a denial, set forth in
                          writing for the claimant the grounds for the
                          denial.
                        ``(C) Costs and attorney's fees.--In any action
                    against a surety provider to recover on a claim
                    described in subparagraph (A), the prevailing party
                    shall be entitled to recover its reasonable costs and
                    attorney's fees.
                ``(3) Freight forwarder insurance.--
                        ``(A) In general.--The Secretary may register a
                    person as a freight forwarder under section 13903 only
                    if the person files with the Secretary a surety bond,
                    insurance policy, or other type of financial security
                    that meets standards prescribed by the Secretary.
                        ``(B) Liability insurance.--A financial security
                    filed by a freight forwarder under subparagraph (A)
                    shall be sufficient to pay an amount, not to exceed the
                    amount of the financial security, for each final
                    judgment against the freight forwarder for bodily injury
                    to, or death of, an individual, or loss of, or damage
                    to, property (other than property referred to in
                    subparagraph (C)), resulting from the negligent
                    operation, maintenance, or use of motor vehicles by, or
                    under the direction and control of, the freight
                    forwarder while providing transfer, collection, or
                    delivery service under this part.
                        ``(C) Cargo insurance.--The Secretary may require a
                    registered freight forwarder to file with the Secretary
                    a surety bond, insurance policy, or other type of
                    financial security approved by the Secretary, that will
                    pay an amount, not to exceed the amount of the financial
                    security, for loss of, or damage to, property for which
                    the freight forwarder provides service.
                ``(4) Minimum financial security.--Each freight forwarder
            subject to the requirements of this section shall provide
            financial security of $75,000, regardless of the number of
            branch offices or sales agents of the freight forwarder.
                ``(5) Cancellation notice.--If a financial security required
            under this subsection is canceled--
                        ``(A) <<NOTE: Deadline.>>  the holder of the
                    financial security shall provide electronic notification
                    to the Secretary of the cancellation not later than 30
                    days before the effective date of the cancellation; and

    [[Page 126 STAT. 826]]

                        ``(B) <<NOTE: Web posting.>>  the Secretary shall
                    immediately post such notification on the public
                    Internet web site of the Department of Transportation.
                ``(6) Suspension.--The Secretary shall immediately suspend
            the registration of a freight forwarder issued under this
            chapter if its available financial security falls below the
            amount required under this subsection.
                ``(7) Payment of claims in cases of financial failure or
            insolvency.--If a freight forwarder registered under this
            chapter experiences financial failure or insolvency, the surety
            provider of the freight forwarder shall--
                        ``(A) <<NOTE: Notice.>>  submit a notice to cancel
                    the financial security to the Administrator in
                    accordance with paragraph (5);
                        ``(B) <<NOTE: Public information. Time period.>>
                    publicly advertise for claims for 60 days beginning on
                    the date of publication by the Secretary of the notice
                    to cancel the financial security; and
                        ``(C) <<NOTE: Deadline.>>  pay, not later than 30
                    days after the expiration of the 60-day period for
                    submission of claims--
                              ``(i) all uncontested claims received during
                          such period; or
                              ``(ii) a pro rata share of such claims if the
                          total amount of such claims exceeds the financial
                          security available.
                ``(8) Penalties.--
                        ``(A) Civil actions.--Either the Secretary or the
                    Attorney General may bring a civil action in an
                    appropriate district court of the United States to
                    enforce the requirements of this subsection or a
                    regulation prescribed or order issued under this
                    subsection. The court may award appropriate relief,
                    including injunctive relief.
                        ``(B) Civil penalties.--If the Secretary determines,
                    after notice and opportunity for a hearing, that a
                    surety provider of a freight forwarder registered under
                    this chapter has violated the requirements of this
                    subsection or a regulation prescribed under this
                    subsection, the surety provider shall be liable to the
                    United States for a civil penalty in an amount not to
                    exceed $10,000.
                        ``(C) Eligibility.--If the Secretary determines,
                    after notice and opportunity for a hearing, that a
                    surety provider of a freight forwarder registered under
                    this chapter has violated the requirements of this
                    subsection or a regulation prescribed under this
                    subsection, the surety provider shall be ineligible to
                    provide freight forwarder financial security for 3 years
                ``(9) Deduction of costs prohibited.--The amount of the
            financial security required under this subsection may not be
            reduced by deducting attorney's fees or administrative costs.''.

        (b) <<NOTE: Deadline. 49 USC 13906 note.>>  Rulemaking.--Not later
    than 1 year after the date of enactment of this Act, the Secretary shall
    issue regulations to implement and enforce the requirements under
    subsections (b) and (c) of section 13906 of title 49, United States
    Code, as amended by subsection (a).

        (c) <<NOTE: 49 USC 13906 note.>>  Effective Date.--The amendments
    made by subsection (a) shall take effect on the date that is 1 year
    after the date of enactment of this Act.

    [[Page 126 STAT. 827]]

    SEC. 32919. UNLAWFUL BROKERAGE ACTIVITIES.

        (a) In General.--Chapter 149 is amended by adding at the end the
    following:
    ``SEC. 14916. UNLAWFUL BROKERAGE ACTIVITIES.

        ``(a) Prohibited Activities.--A person may provide interstate
    brokerage services as a broker only if that person--
                ``(1) is registered under, and in compliance with, section
            13904; and
                ``(2) has satisfied the financial security requirements
            under section 13906.

        ``(b) Exceptions.--Subsection (a) shall not apply to--
                ``(1) a non-vessel-operating common carrier (as defined in
            section 40102 of title 46) or an ocean freight forwarder (as
            defined in section 40102 of title 46) when arranging for inland
            transportation as part of an international through movement
            involving ocean transportation between the United States and a
            foreign port;
                ``(2) a customs broker licensed in accordance with section
            111.2 of title 19, Code of Federal Regulations, only to the
            extent that the customs broker is engaging in a movement under a
            customs bond or in a transaction involving customs business, as
            defined by section 111.1 of title 19, Code of Federal
            Regulations; or
                ``(3) an indirect air carrier holding a Standard Security
            Program approved by the Transportation Security Administration,
            only to the extent that the indirect air carrier is engaging in
            the activities as an air carrier as defined in section 40102(2)
            or in the activities defined in section 40102(3).

        ``(c) Civil Penalties and Private Cause of Action.--Any person who
    knowingly authorizes, consents to, or permits, directly or indirectly,
    either alone or in conjunction with any other person, a violation of
    subsection (a) is liable--
                ``(1) to the United States Government for a civil penalty in
            an amount not to exceed $10,000 for each violation; and
                ``(2) to the injured party for all valid claims incurred
            without regard to amount.

        ``(d) <<NOTE: Applicability.>> Liable Parties.--The liability for
    civil penalties and for claims under this section for unauthorized
    brokering shall apply, jointly and severally--
                ``(1) to any corporate entity or partnership involved; and
                ``(2) to the individual officers, directors, and principals
            of such entities.''.

        (b) Clerical Amendment.--The analysis for chapter 149 is amended by
    adding at the end the following:

    ``14916. Unlawful brokerage activities.''.

                     PART II--HOUSEHOLD GOODS TRANSPORTATION

    SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS FOR HOUSEHOLD
                                GOODS MOTOR CARRIERS.

        (a) Section 13902(a)(2) is amended--
                (1) in subparagraph (B), by striking ``section 13702(c);''
            and inserting ``section 13702(c); and'';
                (2) by amending subparagraph (C) to read as follows:

    [[Page 126 STAT. 828]]

                        ``(C) demonstrates, before being registered, through
                    successful completion of a proficiency examination
                    established by the Secretary, knowledge and intent to
                    comply with applicable Federal laws relating to consumer
                    protection, estimating, consumers' rights and
                    responsibilities, and options for limitations of
                    liability for loss and damage.''; and
                (3) by striking subparagraph (D).

        (b) Compliance Reviews of New Household Goods Motor Carriers.--
    Section 31144(g), as amended by section 32102 of this Act, is amended by
    adding at the end the following:
                ``(6) Additional requirements for household goods motor
            carriers.-- <<NOTE: Regulations. Review. Deadline.>> (A) In
            addition to the requirements of this subsection, the Secretary
            shall require, by regulation, each registered household goods
            motor carrier to undergo a consumer protection standards review
            not later than 18 months after the household goods motor carrier
            begins operations under such authority.
                        ``(B) Elements.--In the regulations issued pursuant
                    to subparagraph (A), the Secretary shall establish the
                    elements of the consumer protections standards review,
                    including basic management controls. In establishing the
                    elements, the Secretary shall consider the effects on
                    small businesses and shall consider establishing
                    alternate locations where such reviews may be conducted
                    for the convenience of small businesses.''.

        (c) <<NOTE: 49 USC 13902 note.>> Effective Date.--The amendments
    made by this section shall take effect 2 years after the date of
    enactment of this Act.
    SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSEHOLD GOODS.

        (a) Injunctive Relief.--Section 14704(a)(1) is amended by striking
    ``and 14103'' and inserting ``, 14103, and 14915(c)''.
        (b) Civil Penalties.--Section 14915(a)(1) is amended by adding at
    the end the following:
        ``The United States may assign all or a portion of the civil penalty
    to an aggrieved shipper. <<NOTE: Criteria.>> The Secretary of
    Transportation shall establish criteria upon which such assignments
    shall be made. The Secretary may order, after notice and an opportunity
    for a proceeding, that a person found holding a household goods shipment
    hostage return the goods to an aggrieved shipper.''.
    SEC. 32923. SETTLEMENT AUTHORITY.

        (a) Settlement of General Civil Penalties.--Section 14901 is amended
    by adding at the end the following:
        ``(h) Settlement of Household Goods Civil Penalties.--Nothing in
    this section shall be construed to prohibit the Secretary from accepting
    partial payment of a civil penalty as part of a settlement agreement in
    the public interest, or from holding imposition of any part of a civil
    penalty in abeyance.''.
        (b) Settlement of Household Goods Civil Penalties.--Section 14915(a)
    is amended by adding at the end the following:
                ``(4) Settlement authority.--Nothing in this section shall
            be construed as prohibiting the Secretary from accepting partial
            payment of a civil penalty as part of a settlement agreement in
            the public interest, or from holding imposition of any part of a
            civil penalty in abeyance.''.

    [[Page 126 STAT. 829]]

                         PART III--TECHNICAL AMENDMENTS

    SEC. 32931. UPDATE OF OBSOLETE TEXT.

        (a) Section 31137(g), as redesignated by section 32301 of this Act,
    is amended by striking ``Not later than December 1, 1990, the Secretary
    shall prescribe'' and inserting ``The Secretary shall maintain''.
        (b) Section 31151(a) is amended--
                (1) by amending paragraph (1) to read as follows:
                ``(1) In general.--The Secretary of Transportation shall
            maintain a program to ensure that intermodal equipment used to
            transport intermodal containers is safe and systematically
            maintained.''; and
                (2) by striking paragraph (4).

        (c) Section 31307(b) is amended by striking ``Not later than
    December 18, 1994, the Secretary shall prescribe'' and inserting ``The
    Secretary shall maintain''.
        (d) Section 31310(g)(1) is amended by striking ``Not later than 1
    year after the date of enactment of this Act, the'' and inserting
    ``The''.
    SEC. 32932. CORRECTION OF INTERSTATE COMMERCE COMMISSION
                                REFERENCES.

        (a) Safety Information and Intervention in Interstate Commerce
    Commission Proceedings.--Chapter 3 is amended--
                (1) <<NOTE: Repeal.>> by repealing section 307;
                (2) in the analysis, by striking the item relating to
            section 307;
                (3) in section 333(d)(1)(C), by striking ``Interstate
            Commerce Commission'' and inserting ``Surface Transportation
            Board''; and
                (4) in section 333(e)--
                        (A) by striking ``Interstate Commerce Commission''
                    and inserting ``Surface Transportation Board''; and
                        (B) by striking ``Commission'' and inserting
                    ``Board''.

        (b) Filing and Procedure for Application to Abandon or
    Discontinue.--Section 10903(b)(2) is amended by striking ``24706(c) of
    this title'' and inserting ``24706(c) of this title before May 31,
    1998''.
        (c) Technical Amendments to Part C of Subtitle V.--
                (1) Section 24307(b)(3) is amended by striking ``Interstate
            Commerce Commission'' and inserting ``Surface Transportation
            Board''.
                (2) Section 24311 is amended--
                        (A) by striking ``Interstate Commerce Commission''
                    and inserting ``Surface Transportation Board'';
                        (B) by striking ``Commission'' each place it appears
                    and inserting ``Board''; and
                        (C) by striking ``Commission's'' and inserting
                    ``Board's''.
                (3) Section 24902 is amended--
                        (A) by striking ``Interstate Commerce Commission''
                    each place it appears and inserting ``Surface
                    Transportation Board''; and
                        (B) by striking ``Commission'' each place it appears
                    and inserting ``Board''.
                (4) Section 24904 is amended--

    [[Page 126 STAT. 830]]

                        (A) by striking ``Interstate Commerce Commission''
                    and inserting ``Surface Transportation Board''; and
                        (B) by striking ``Commission'' each place it appears
                    and inserting ``Board''.
    SEC. 32933. TECHNICAL AND CONFORMING AMENDMENTS.

        (a) Section 13905(f)(1)(A) is amended by striking ``section
    13904(c)'' and inserting ``section 13904(e)'';
        (b) Section 14504a(c)(1) is amended--
                (1) in subparagraph (C), by striking ``sections'' and
            inserting ``section''; and
                (2) in subparagraph (D)(ii)(II) by striking the period at
            the end and inserting ``; and''.

        (c) Section 31103(a) is amended by striking ``section
    31102(b)(1)(E)'' and inserting ``section 31102(b)(2)(E)''.
        (d) Section 31103(b) is amended by striking ``authorized by section
    31104(f)(2)''.
        (e) Section 31309(b)(2) is amended by striking ``31308(2)'' and
    inserting ``31308(3)''.
    SEC. 32934. <<NOTE: 49 USC 31136 note.>> EXEMPTIONS FROM
                                REQUIREMENTS FOR COVERED FARM
                                VEHICLES.

        (a) Federal Requirements.--A covered farm vehicle, including the
    individual operating that vehicle, shall be exempt from the following:
                (1) Any requirement relating to commercial driver's licenses
            established under chapter 313 of title 49, United States Code.
                (2) Any requirement relating to drug-testing established
            under chapter 313 of title 49, United States Code.
                (3) Any requirement relating to medical certificates
            established under--
                        (A) subchapter III of chapter 311 of title 49,
                    United States Code; or
                        (B) chapter 313 of title 49, United States Code.
                (4) Any requirement relating to hours of service established
            under--
                        (A) subchapter III of chapter 311 of title 49,
                    United States Code; or
                        (B) chapter 315 of title 49, United States Code.
                (5) Any requirement relating to vehicle inspection, repair,
            and maintenance established under--
                        (A) subchapter III of chapter 311 of title 49,
                    United States Code; or
                        (B) chapter 315 of title 49, United States Code.

        (b) State Requirements.--
                (1) In general.--Federal transportation funding to a State
            may not be terminated, limited, or otherwise interfered with as
            a result of the State exempting a covered farm vehicle,
            including the individual operating that vehicle, from any State
            requirement relating to the operation of that vehicle.
                (2) Exception.--Paragraph (1) does not apply with respect to
            a covered farm vehicle transporting hazardous materials that
            require a placard.

        (c) Covered Farm Vehicle Defined.--
                (1) In general.--In this section, the term ``covered farm
            vehicle'' means a motor vehicle (including an articulated motor
            vehicle)--
                        (A) that--

    [[Page 126 STAT. 831]]

                              (i) is traveling in the State in which the
                          vehicle is registered or another State;
                              (ii) is operated by--
                                        (I) a farm owner or operator;
                                        (II) a ranch owner or operator; or
                                        (III) an employee or family member
                                    of an individual specified in subclause
                                    (I) or (II);
                              (iii) is transporting to or from a farm or
                          ranch--
                                        (I) agricultural commodities;
                                        (II) livestock; or
                                        (III) machinery or supplies;
                              (iv) except as provided in paragraph (2), is
                          not used in the operations of a for-hire motor
                          carrier; and
                              (v) is equipped with a special license plate
                          or other designation by the State in which the
                          vehicle is registered to allow for identification
                          of the vehicle as a farm vehicle by law
                          enforcement personnel; and
                        (B) that has a gross vehicle weight rating or gross
                    vehicle weight, whichever is greater, that is--
                              (i) 26,001 pounds or less; or
                              (ii) greater than 26,001 pounds and traveling
                          within the State or within 150 air miles of the
                          farm or ranch with respect to which the vehicle is
                          being operated.
                (2) Inclusion.--In this section, the term ``covered farm
            vehicle'' includes a motor vehicle that meets the requirements
            of paragraph (1) (other than paragraph (1)(A)(iv)) and--
                        (A) is operated pursuant to a crop share farm lease
                    agreement;
                        (B) is owned by a tenant with respect to that
                    agreement; and
                        (C) is transporting the landlord's portion of the
                    crops under that agreement.

        (d) Safety Study.--The Secretary of Transportation shall conduct a
    study of the exemption required by subsection (a) as follows:
                (1) Data and analysis of covered farm vehicles shall
            include--
                        (A) the number of vehicles that are operated subject
                    to each of the regulatory exemptions permitted under
                    subsection (a);
                        (B) the number of drivers that operate covered farm
                    vehicles subject to each of the regulatory exemptions
                    permitted under subsection (a);
                        (C) the number of crashes involving covered farm
                    vehicles;
                        (D) the number of occupants and non-occupants
                    injured in crashes involving covered farm vehicles;
                        (E) the number of fatalities of occupants and non-
                    occupants killed in crashes involving farm vehicles;
                        (F) crash investigations and accident reconstruction
                    investigations of all fatalities in crashes involving
                    covered farm vehicles;
                        (G) overall operating mileage of covered farm
                    vehicles;
                        (H) numbers of covered farm vehicles that operate in
                    neighboring States; and
                        (I) any other data the Secretary deems necessary to
                    analyze and include.

    [[Page 126 STAT. 832]]

                (2) <<NOTE: Lists.>> A listing of State regulations issued
            and maintained in each State that are identical to the Federal
            regulations that are subject to exemption in subsection (a).
                (3) <<NOTE: Reports. Deadline.>> The Secretary shall report
            the findings of the study to the appropriate committees of
            Congress not later than 18 months after the date of enactment of
            this Act.

        (e) Construction.--Nothing in this section shall be construed as
    authority for the Secretary of Transportation to prescribe regulations.

         TITLE III-- <<NOTE: Hazardous Materials Transportation Safety
      Improvement Act of 2012.>> HAZARDOUS MATERIALS TRANSPORTATION SAFETY
    IMPROVEMENT ACT OF 2012
    SEC. 33001. <<NOTE: 49 USC 5101 note.>> SHORT TITLE.

        This title may be cited as the ``Hazardous Materials Transportation
    Safety Improvement Act of 2012''.
    SEC. 33002. <<NOTE: 49 USC 5101 note.>> DEFINITION.

        In this title, the term ``Secretary'' means the Secretary of
    Transportation.
    SEC. 33003. REFERENCES TO TITLE 49, UNITED STATES CODE.

        Except as otherwise expressly provided, whenever in this title an
    amendment or repeal is expressed in terms of an amendment to, or repeal
    of, a section or other provision, the reference shall be considered to
    be made to a section or other provision of title 49, United States Code.
    SEC. 33004. TRAINING FOR EMERGENCY RESPONDERS.

        (a) Training Curriculum.--Section 5115 is amended--
                (1) in subsection (b)(1)(B), by striking ``basic'';
                (2) in subsection (b)(2), by striking ``basic''; and
                (3) in subsection (c), by striking ``basic''.

        (b) Operations Level Training.--Section 5116 is amended--
                (1) in subsection (b)(1), by adding at the end the
            following: ``To the <<NOTE: Certification.>> extent that a grant
            is used to train emergency responders, the State or Indian tribe
            shall provide written certification to the Secretary that the
            emergency responders who receive training under the grant will
            have the ability to protect nearby persons, property, and the
            environment from the effects of accidents or incidents involving
            the transportation of hazardous material in accordance with
            existing regulations or National Fire Protection Association
            standards for competence of responders to accidents and
            incidents involving hazardous materials.'';
                (2) in subsection (j)--
                        (A) in paragraph (1), by striking ``funds'' and all
                    that follows through ``fighting fires for'' and
                    inserting ``funds and through a competitive process,
                    make a grant or make grants to national nonprofit fire
                    service organizations for'';
                        (B) in paragraph (3)(A), by striking ``train'' and
                    inserting ``provide training, including portable
                    training, for'';
                        (C) in paragraph (4)--

    [[Page 126 STAT. 833]]

                              (i) by striking ``train'' and inserting
                          ``provide training, including portable training,
                          for''; and
                              (ii) by inserting ``comply with Federal
                          regulations and national consensus standards for
                          hazardous materials response and'' after
                          ``training course shall'';
                        (D) by redesignating paragraph (5) as paragraph (8);
                    and
                        (E) by inserting after paragraph (4) the following:
                ``(5) The Secretary may not award a grant to an organization
            under this subsection unless the organization ensures that
            emergency responders who receive training under the grant will
            have the ability to protect nearby persons, property, and the
            environment from the effects of accidents or incidents involving
            the transportation of hazardous material in accordance with
            existing regulations or National Fire Protection Association
            standards for competence of responders to accidents and
            incidents involving hazardous materials.
                ``(6) Notwithstanding paragraphs (1) and (3), to the extent
            determined appropriate by the Secretary, a grant awarded by the
            Secretary to an organization under this subsection to conduct
            hazardous material response training programs may be used to
            train individuals with responsibility to respond to accidents
            and incidents involving hazardous material.
                ``(7) <<NOTE: Definition.>> For the purposes of this
            subsection, the term `portable training' means live, instructor-
            led training provided by certified fire service instructors that
            can be offered in any suitable setting, rather than specific
            designated facilities. Under this training delivery model,
            instructors travel to locations convenient to students and
            utilize local facilities and resources.''; and
                (3) in subsection (k)--
                        (A) by striking ``annually'' and inserting ``an
                    annual report'';
                        (B) by inserting ``the report'' after ``make
                    available'';
                        (C) by striking ``information'' and inserting ``.
                    The report submitted under this subsection shall include
                    information''; and
                        (D) by striking ``The report shall identify'' and
                    all that follows and inserting the following: ``The
                    report submitted under this subsection shall identify
                    the ultimate recipients of such grants and include--
                        ``(A) a detailed accounting and description of each
                    grant expenditure by each grant recipient, including the
                    amount of, and purpose for, each expenditure;
                        ``(B) the number of persons trained under the grant
                    program, by training level;
                        ``(C) an evaluation of the efficacy of such planning
                    and training programs; and
                        ``(D) any recommendations the Secretary may have for
                    improving such grant programs.''.
    SEC. 33005. <<NOTE: 49 USC 5121 note.>>  PAPERLESS HAZARD
                                COMMUNICATIONS PILOT PROGRAM.

        (a) In General.--The Secretary may conduct pilot projects to
    evaluate the feasibility and effectiveness of using paperless hazard
    communications systems. <<NOTE: Urban and rural areas.>> At least 1 of
    the pilot projects under this section shall take place in a rural area.

        (b) Requirements.--In conducting pilot projects under this section,
    the Secretary--

    [[Page 126 STAT. 834]]

                (1) may not waive the requirements under section 5110 of
            title 49, United States Code; and
                (2) <<NOTE: Consultation.>> shall consult with organizations
            representing--
                        (A) fire services personnel;
                        (B) law enforcement and other appropriate
                    enforcement personnel;
                        (C) other emergency response providers;
                        (D) persons who offer hazardous material for
                    transportation;
                        (E) persons who transport hazardous material by air,
                    highway, rail, and water; and
                        (F) employees of persons who transport or offer for
                    transportation hazardous material by air, highway, rail,
                    and water.

        (c) Report.--Not later than 2 years after the date of enactment of
    this Act, the Secretary shall--
                (1) prepare a report on the results of the pilot projects
            carried out under this section, including--
                        (A) a detailed description of the pilot projects;
                        (B) an evaluation of each pilot project, including
                    an evaluation of the performance of each paperless
                    hazard communications system in such project;
                        (C) an assessment of the safety and security impact
                    of using paperless hazard communications systems,
                    including any impact on the public, emergency response,
                    law enforcement, and the conduct of inspections and
                    investigations;
                        (D) an analysis of the associated benefits and costs
                    of using the paperless hazard communications systems for
                    each mode of transportation; and
                        (E) a recommendation that incorporates the
                    information gathered in subparagraphs (A), (B), (C), and
                    (D) on whether paperless hazard communications systems
                    should be permanently incorporated into the Federal
                    hazardous material transportation safety program under
                    chapter 51 of title 49, United States Code; and
                (2) submit a final report to the Committee on Commerce,
            Science, and Transportation of the Senate and the Committee on
            Transportation and Infrastructure of the House of
            Representatives that contains the results of the pilot projects
            carried out under this section, including the matters described
            in paragraph (1).

        (d) Paperless Hazard Communications System Defined.--In this
    section, the term ``paperless hazard communications system'' means the
    use of advanced communications methods, such as wireless communications
    devices, to convey hazard information between all parties in the
    transportation chain, including emergency responders and law enforcement
    personnel. The format of communication may be equivalent to that used by
    the carrier.
    SEC. 33006. IMPROVING DATA COLLECTION, ANALYSIS, AND REPORTING.

        (a) Assessment.--
                (1) In general.--Not later than 6 months after the date of
            enactment of this Act, the Secretary, in consultation with the
            Commandant of the United States Coast Guard, as appropriate,
            shall conduct an assessment to improve the collection,

    [[Page 126 STAT. 835]]

            analysis, reporting, and use of data related to accidents and
            incidents involving the transportation of hazardous material.
                (2) Review.--The assessment conducted under this subsection
            shall review the methods used by the Pipeline and Hazardous
            Materials Safety Administration (referred to in this section as
            the ``Administration'') for collecting, analyzing, and reporting
            accidents and incidents involving the transportation of
            hazardous material, including the adequacy of--
                        (A) information requested on the accident and
                    incident reporting forms required to be submitted to the
                    Administration;
                        (B) methods used by the Administration to verify
                    that the information provided on such forms is accurate
                    and complete;
                        (C) accident and incident reporting requirements,
                    including whether such requirements should be expanded
                    to include shippers and consignees of hazardous
                    materials;
                        (D) resources of the Administration related to data
                    collection, analysis, and reporting, including staff and
                    information technology; and
                        (E) the database used by the Administration for
                    recording and reporting such accidents and incidents,
                    including the ability of users to adequately search the
                    database and find information.

        (b) Development of Action Plan.--Not later than 9 months after the
    date of enactment of this Act, the Secretary shall develop an action
    plan and timeline for improving the collection, analysis, reporting, and
    use of data by the Administration, including revising the database of
    the Administration, as appropriate.
        (c) Submission to Congress.--Not later than 15 days after the
    completion of the action plan and timeline under subsection (c), the
    Secretary shall submit the action plan and timeline to the Committee on
    Commerce, Science, and Transportation of the Senate and the Committee on
    Transportation and Infrastructure of the House of Representatives.
        (d) Reporting Requirements.--Section 5125(b)(1)(D) is amended by
    inserting ``and other written hazardous materials transportation
    incident reporting involving State or local emergency responders in the
    initial response to the incident'' before the period at the end.
    SEC. 33007. HAZARDOUS MATERIAL TECHNICAL ASSESSMENT, RESEARCH AND
                                DEVELOPMENT, AND ANALYSIS PROGRAM.

        (a) In General.--Chapter 51 is amended by inserting after section
    5117 the following:
    ``Sec. 5118. Hazardous material technical assessment, research and
                      development, and analysis program

        ``(a) Risk Reduction.--
                ``(1) Program authorized.--The Secretary of Transportation
            may develop and implement a hazardous material technical
            assessment, research and development, and analysis program for
            the purpose of--
                        ``(A) reducing the risks associated with the
                    transportation of hazardous material; and

    [[Page 126 STAT. 836]]

                        ``(B) identifying and evaluating new technologies to
                    facilitate the safe, secure, and efficient
                    transportation of hazardous material.
                ``(2) Coordination.--In developing the program under
            paragraph (1), the Secretary shall--
                        ``(A) utilize information gathered from other modal
                    administrations with similar programs; and
                        ``(B) coordinate with other modal administrations,
                    as appropriate.

        ``(b) Cooperation.--In carrying out subsection (a), the Secretary
    shall work cooperatively with regulated and other entities, including
    shippers, carriers, emergency responders, State and local officials, and
    academic institutions.''.
        (b) Conforming Amendment.--The chapter analysis for chapter 51 is
    amended by inserting after the item relating to section 5117 the
    following:

    ``5118. Hazardous material technical assessment, research and
               development, and analysis program.''.

    SEC. 33008. <<NOTE: 49 USC 5121 note.>> HAZARDOUS MATERIAL
                                ENFORCEMENT TRAINING.

        (a) <<NOTE: Deadline. Standards.>> In General.--Not later than 18
    months after the date of enactment of this Act, the Secretary shall
    develop uniform performance standards for training hazardous material
    inspectors and investigators on--
                (1) how to collect, analyze, and publish findings from
            inspections and investigations of accidents or incidents
            involving the transportation of hazardous material; and
                (2) how to identify noncompliance with regulations issued
            under chapter 51 of title 49, United States Code, and take
            appropriate enforcement action.

        (b) Standards and Guidelines.--The Secretary may develop--
                (1) guidelines for hazardous material inspector and
            investigator qualifications;
                (2) best practices and standards for hazardous material
            inspector and investigator training programs; and
                (3) standard protocols to coordinate investigation efforts
            among Federal, State, and local jurisdictions on accidents or
            incidents involving the transportation of hazardous material.

        (c) Availability.--The standards, protocols, and guidelines
    established under this section--
                (1) shall be mandatory for--
                        (A) the Department of Transportation's multimodal
                    personnel conducting hazardous material enforcement
                    inspections or investigations; and
                        (B) State employees who conduct federally funded
                    compliance reviews, inspections, or investigations; and
                (2) shall be made available to Federal, State, and local
            hazardous material safety enforcement personnel.
    SEC. 33009. INSPECTIONS.

        (a) Notice of Enforcement Measures.--Section 5121(c)(1) is amended--
                (1) in subparagraph (E), by striking ``and'' at the end;
                (2) in subparagraph (F), by striking the period at the end
            and inserting ``; and''; and
                (3) by adding at the end the following:

    [[Page 126 STAT. 837]]

                        ``(G) shall provide to the affected offeror,
                    carrier, packaging manufacturer or tester, or other
                    person responsible for the package reasonable notice
                    of--
                              ``(i) his or her decision to exercise his or
                          her authority under paragraph (1);
                              ``(ii) any findings made; and
                              ``(iii) any actions being taken as a result of
                          a finding of noncompliance.''.

        (b) Regulations.--
                (1) Matters to be addressed.--Section 5121(e) is amended by
            adding at the end the following:
                ``(3) Matters to be addressed.--The regulations issued under
            this subsection shall address--
                        ``(A) the safe and expeditious resumption of
                    transportation of perishable hazardous material,
                    including radiopharmaceuticals and other medical
                    products, that may require timely delivery due to life-
                    threatening situations;
                        ``(B) the means by which--
                              ``(i) noncompliant packages that present an
                          imminent hazard are placed out-of-service until
                          the condition is corrected; and
                              ``(ii) noncompliant packages that do not
                          present a hazard are moved to their final
                          destination;
                        ``(C) appropriate training and equipment for
                    inspectors; and
                        ``(D) the proper closure of packaging in accordance
                    with the hazardous material regulations.''.
                (2) <<NOTE: Deadline. 49 USC 5121 note.>> Finalizing
            regulations.--In accordance with section 5103(b)(2) of title 49,
            United States Code, not later than 1 year after the date of
            enactment of this Act, the Secretary shall take all actions
            necessary to finalize a regulation under paragraph (1) of this
            subsection.

        (c) Grants and Cooperative Agreements.--Section 5121(g)(1) is
    amended by inserting ``safety and'' before ``security''.
    SEC. 33010. CIVIL PENALTIES.

        Section 5123 is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1)--
                              (i) by striking ``at least $250 but''; and
                              (ii) by striking ``$50,000'' and inserting
                          ``$75,000'';
                        (B) in paragraph (2), by striking ``$100,000'' and
                    inserting ``$175,000''; and
                        (C) by amending paragraph (3) to read as follows:
                ``(3) If the violation is related to training, a person
            described in paragraph (1) shall be liable for a civil penalty
            of at least $450.''; and
                (2) by adding at the end the following:

        ``(h) Penalty for Obstruction of Inspections and Investigations.--
                ``(1) The Secretary may impose a penalty on a person who
            obstructs or prevents the Secretary from carrying out
            inspections or investigations under subsection (c) or (i) of
            section 5121.
                ``(2) <<NOTE: Definition.>> For the purposes of this
            subsection, the term `obstructs' means actions that were known,
            or reasonably should have been known, to prevent, hinder, or
            impede an investigation.

    [[Page 126 STAT. 838]]

        ``(i) Prohibition on Hazardous Material Operations After Nonpayment
    of Penalties.--
                ``(1) <<NOTE: Effective date.>> In general.--Except as
            provided under paragraph (2), a person subject to the
            jurisdiction of the Secretary under this chapter who fails to
            pay a civil penalty assessed under this chapter, or fails to
            arrange and abide by an acceptable payment plan for such civil
            penalty, may not conduct any activity regulated under this
            chapter beginning on the 91st day after the date specified by
            order of the Secretary for payment of such penalty unless the
            person has filed a formal administrative or judicial appeal of
            the penalty.
                ``(2) Exception.--Paragraph (1) shall not apply to any
            person who is unable to pay a civil penalty because such person
            is a debtor in a case under chapter 11 of title 11.
                ``(3) <<NOTE: Deadline.>> Rulemaking.--Not later than 2
            years after the date of enactment of this subsection, the
            Secretary, after providing notice and an opportunity for public
            comment, shall issue regulations that--
                        ``(A) <<NOTE: Procedures.>> set forth procedures to
                    require a person who is delinquent in paying civil
                    penalties to cease any activity regulated under this
                    chapter until payment has been made or an acceptable
                    payment plan has been arranged; and
                        ``(B) ensures that the person described in
                    subparagraph (A)--
                              ``(i) <<NOTE: Notification.>> is notified in
                          writing; and
                              ``(ii) is given an opportunity to respond
                          before the person is required to cease the
                          activity.''.
    SEC. 33011. REPORTING OF FEES.

        Section 5125(f)(2) is amended by striking ``, upon the Secretary's
    request,'' and inserting ``biennially''.
    SEC. 33012. SPECIAL PERMITS, APPROVALS, AND EXCLUSIONS.

        (a) <<NOTE: Deadlines. 49 USC 5117 note.>> Rulemaking.--Not later
    than 2 years after the date of enactment of this Act, the Secretary,
    after providing notice and an opportunity for public comment, shall
    issue regulations that establish--
                (1) standard operating procedures to support administration
            of the special permit and approval programs; and
                (2) objective criteria to support the evaluation of special
            permit and approval applications.

        (b) Review of Special Permits.--
                (1) <<NOTE: Time period.>> Review.--Not later than 1 year
            after the date of enactment of this Act, the Secretary shall
            conduct a review and analysis of special permits that have been
            in continuous effect for a 10-year period to determine which
            special permits may be converted into the hazardous materials
            regulations.
                (2) Factors.--In conducting the review and analysis under
            paragraph (1), the Secretary may consider--
                        (A) the safety record for hazardous materials
                    transported under the special permit;
                        (B) the application of a special permit;
                        (C) the suitability of provisions in the special
                    permit for incorporation into the hazardous materials
                    regulations; and
                        (D) rulemaking activity in related areas.
                (3) <<NOTE: Notice. Public
            comments. Determination.>> Rulemaking.--After completing the
            review and analysis under paragraph (1), but not later than 3
            years after the

    [[Page 126 STAT. 839]]

            date of enactment of this Act, and after providing notice and
            opportunity for public comment, the Secretary shall issue
            regulations to incorporate into the hazardous materials
            regulations any special permits identified in the review under
            paragraph (1) that the Secretary determines are appropriate for
            incorporation, based on the factors identified in paragraph (2).

        (c) Incorporation Into Regulation.--Section 5117 is amended by
    adding at the end the following:
        ``(f) Incorporation Into Regulations.--
                ``(1) <<NOTE: Deadline. Time period. Review. Analysis.>> In
            general.--Not later than 1 year after the date on which a
            special permit has been in continuous effect for a 10-year
            period, the Secretary shall conduct a review and analysis of
            that special permit to determine whether it may be converted
            into the hazardous materials regulations.
                ``(2) Factors.--In conducting the review and analysis under
            paragraph (1), the Secretary may consider--
                        ``(A) the safety record for hazardous materials
                    transported under the special permit;
                        ``(B) the application of a special permit;
                        ``(C) the suitability of provisions in the special
                    permit for incorporation into the hazardous materials
                    regulations; and
                        ``(D) rulemaking activity in related areas.
                ``(3) <<NOTE: Notice. Public comments. Federal Register,
            publication.>> Rulemaking.--After completing the review and
            analysis under paragraph (1) and after providing notice and
            opportunity for public comment, the Secretary shall either
            institute a rulemaking to incorporate the special permit into
            the hazardous materials regulations or publish in the Federal
            Register the Secretary's justification for why the special
            permit is not appropriate for incorporation into the
            regulations.''.
    SEC. 33013. HIGHWAY ROUTING DISCLOSURES.

        (a) List of Route Designations.--Section 5112(c) is amended--
                (1) by striking ``In coordination'' and inserting the
            following:
                ``(1) In general.--In coordination''; and
                (2) by adding at the end the following:
                ``(2) State responsibilities.--
                        ``(A) In general.--Each State shall submit to the
                    Secretary, in a form and manner to be determined by the
                    Secretary and in accordance with subparagraph (B)--
                              ``(i) the name of the State agency responsible
                          for hazardous material highway route designations;
                          and
                              ``(ii) a list of the State's currently
                          effective hazardous material highway route
                          designations.
                        ``(B) Frequency.--Each State shall submit the
                    information described in subparagraph (A)(ii)--
                              ``(i) <<NOTE: Time period.>> at least once
                          every 2 years; and
                              ``(ii) <<NOTE: Deadline.>> not later than 60
                          days after a hazardous material highway route
                          designation is established, amended, or
                          discontinued.''.

        (b) Compliance With Section 5112.--Section 5125(c)(1) is amended by
    inserting ``, and is published in the Department's hazardous materials
    route registry under section 5112(c)'' before the period at the end.

    [[Page 126 STAT. 840]]

    SEC. 33014. <<NOTE: Deadlines. 49 USC 5109 note.>> MOTOR CARRIER
                                SAFETY PERMITS.

        (a) <<NOTE: Study. Reports.>> Review.--Not later than 1 year after
    the date of enactment of this Act, the Secretary shall conduct a study
    of, and transmit to the Committee on Commerce, Science, and
    Transportation of the Senate and the Committee on Transportation and
    Infrastructure of the House of Representatives a report on, the
    implementation of the hazardous material safety permit program under
    section 5109 of title 49, United States Code. In conducting the study,
    the Secretary shall review, at a minimum--
                (1) the list of hazardous materials requiring a safety
            permit;
                (2) the number of permits that have been issued, denied,
            revoked, or suspended since inception of the program and the
            number of commercial motor carriers that have never had a permit
            denied, revoked, or suspended since inception of the program;
                (3) the reasons for such denials, revocations, or
            suspensions;
                (4) the criteria used by the Federal Motor Carrier Safety
            Administration to determine whether a hazardous material safety
            permit issued by a State is equivalent to the Federal permit;
            and
                (5) actions the Secretary could implement to improve the
            program, including whether to provide opportunities for an
            additional level of fitness review prior to the denial,
            revocation, or suspension of a safety permit.

        (b) Actions Taken.--Not later than 2 years after the date of
    enactment of this Act, based on the study conducted under subsection
    (a), the Secretary shall either institute a rulemaking to make any
    necessary improvements to the hazardous materials safety permit program
    under section 5109 of title 49, United States Code or publish in the
    Federal Register the Secretary's justification for why a rulemaking is
    not necessary.
    SEC. 33015. <<NOTE: Deadlines.>> WETLINES.

        (a) Evaluation.--Not later than 1 year after the date of enactment
    of this Act, the United States Government Accountability Office shall
    evaluate, and transmit to the Committee on Commerce, Science, and
    Transportation of the Senate and the Committee on Transportation and
    Infrastructure of the House of Representatives, a report on the safety
    of transporting flammable liquids in the external product piping of
    cargo tank motor vehicles (commonly referred to as wetlines). The
    evaluation shall--
                (1) review the safety of transporting flammable liquids in
            the external product piping of cargo tank motor vehicles;
                (2) accurately quantify the number of incidents involving
            the transportation of flammable liquids in external product
            piping of cargo tank motor vehicles;
                (3) identify various alternatives to loading, transporting,
            and unloading flammable liquids in such piping;
                (4) examine the costs and benefits of each alternative; and
                (5) identify any obstacles to implementing each alternative.

        (b) <<NOTE: Determination.>> Regulations.--The Secretary may not
    issue a final rule regarding transporting flammable liquids in the
    external product piping of cargo tank motor vehicles prior to completion
    of the evaluation conducted under subsection (a), or 2 years after the
    date of enactment of this Act, whichever is earlier, unless the
    Secretary determines that a risk to public safety, property, or

    [[Page 126 STAT. 841]]

    the environment is present or an imminent hazard (as defined in section
    5102 of title 49, United States Code) exists and that the regulations
    will address the risk or hazard.
    SEC. 33016. HAZMAT EMPLOYEE TRAINING REQUIREMENTS AND GRANTS.

        Section 5107(e)(2) is amended--
                (1) by inserting ``through a competitive process'' between
            ``made'' and ``to''; and
                (2) by striking ``hazmat employee''.
    SEC. 33017. AUTHORIZATION OF APPROPRIATIONS.

        Section 5128 is amended to read as follows:
    ``Sec. 5128. Authorization of appropriations

        ``(a) In General.--There are authorized to be appropriated to the
    Secretary to carry out this chapter (except sections 5107(e),
    5108(g)(2), 5113, 5115, 5116, and 5119)--
                ``(1) $42,338,000 for fiscal year 2013; and
                ``(2) $42,762,000 for fiscal year 2014.

        ``(b) Hazardous Materials Emergency Preparedness Fund.--From the
    Hazardous Materials Emergency Preparedness Fund established under
    section 5116(i), the Secretary may expend, during each of fiscal years
    2013 and 2014--
                ``(1) $188,000 to carry out section 5115;
                ``(2) $21,800,000 to carry out subsections (a) and (b) of
            section 5116, of which not less than $13,650,000 shall be
            available to carry out section 5116(b);
                ``(3) $150,000 to carry out section 5116(f);
                ``(4) $625,000 to publish and distribute the Emergency
            Response Guidebook under section 5116(i)(3); and
                ``(5) $1,000,000 to carry out section 5116(j).

        ``(c) Hazardous Materials Training Grants.--From the Hazardous
    Materials Emergency Preparedness Fund established pursuant to section
    5116(i), the Secretary may expend $4,000,000 for each of the fiscal
    years 2013 and 2014 to carry out section 5107(e).
        ``(d) Credits to Appropriations.--
                ``(1) Expenses.--In addition to amounts otherwise made
            available to carry out this chapter, the Secretary may credit
            amounts received from a State, Indian tribe, or other public
            authority or private entity for expenses the Secretary incurs in
            providing training to the State, authority, or entity.
                ``(2) Availability of amounts.--Amounts made available under
            this section shall remain available until expended.''.

       TITLE IV-- <<NOTE: Sport Fish Restoration and Recreational Boating
     Safety Act of 2012.>> SPORT FISH RESTORATION AND RECREATIONAL BOATING
    SAFETY ACT OF 2012
    SEC. 34001. <<NOTE: 16 USC 777 note.>> SHORT TITLE.

        This title may be cited as the ``Sport Fish Restoration and
    Recreational Boating Safety Act of 2012''.

    [[Page 126 STAT. 842]]

    SEC. 34002. AMENDMENT OF FEDERAL AID IN SPORT FISH RESTORATION
                                ACT.

        Section 4 of the Federal Aid in Fish Restoration Act (16 U.S.C.
    777c) is amended--
                (1) in subsection (a), by striking ``of fiscal years 2006
            through 2011 and for the period beginning on October 1, 2011,
            and ending on June 30, 2012,'' and inserting ``fiscal year
            through 2014,''; and
                (2) in subsection (b)(1)(A), by striking ``of fiscal years
            2006 through 2011 and for the period beginning on October 1,
            2011, and ending on March 31, 2012,'' and inserting ``fiscal
            year through 2014,''.

                             TITLE V--MISCELLANEOUS

    SEC. 35001. <<NOTE: 49 USC 40128 note.>> OVERFLIGHTS IN GRAND
                                CANYON NATIONAL PARK.

        (a) Determinations With Respect to Substantial Restoration of
    Natural Quiet and Experience.--
                (1) In general.--Notwithstanding any other provision of law,
            for purposes of section 3(b)(1) of Public Law 100-91 (16 U.S.C.
            1a-1 note), the substantial restoration of the natural quiet and
            experience of the Grand Canyon National Park (in this section
            referred to as the ``Park'') shall be considered to be achieved
            in the Park if, for at least 75 percent of each day, 50 percent
            of the Park is free of sound produced by commercial air tour
            operations that have an allocation to conduct commercial air
            tours in the Park as of the date of enactment of this Act.
                (2) Considerations.--
                        (A) In general.--For purposes of determining whether
                    substantial restoration of the natural quiet and
                    experience of the Park has been achieved in accordance
                    with paragraph (1), the Secretary of the Interior (in
                    this section referred to as the ``Secretary'') shall
                    use--
                              (i) the 2-zone system for the Park in effect
                          on the date of enactment of this Act to assess
                          impacts relating to substantial restoration of
                          natural quiet at the Park, including--
                                        (I) the thresholds for noticeability
                                    and audibility; and
                                        (II) the distribution of land
                                    between the 2 zones; and
                              (ii) noise modeling science that is--
                                        (I) developed for use at the Park,
                                    specifically Integrated Noise Model
                                    Version 6.2;
                                        (II) validated by reasonable
                                    standards for conducting field
                                    observations of model results; and
                                        (III) accepted and validated by the
                                    Federal Interagency Committee on
                                    Aviation Noise.
                        (B) Sound from other sources.--The Secretary shall
                    not consider sound produced by sources other than
                    commercial air tour operations, including sound emitted
                    by other types of aircraft operations or other noise
                    sources, for purposes of--

    [[Page 126 STAT. 843]]

                              (i) making recommendations, developing a final
                          plan, or issuing regulations relating to
                          commercial air tour operations in the Park; or
                              (ii) determining under paragraph (1) whether
                          substantial restoration of the natural quiet and
                          experience of the Park has been achieved.
                (3) Continued monitoring.--The Secretary shall continue
            monitoring noise from aircraft operating over the Park below
            17,999 feet MSL to ensure continued compliance with the
            substantial restoration of natural quiet and experience of the
            Park.
                (4) Day defined.--For purposes of this section, the term
            ``day'' means the hours between 7:00 a.m. and 7:00 p.m.

        (b) <<NOTE: Deadlines.>> Conversion to Quiet Technology Aircraft.--
                (1) In general.--Not later than 15 years after the date of
            enactment of this Act, all commercial air tour aircraft
            operating in the Grand Canyon National Park Special Flight Rules
            Area shall be required to fully convert to quiet aircraft
            technology (as determined in accordance with regulations in
            effect on the day before the date of enactment of this Act).
                (2) Conversion incentives.--Not later than 60 days after the
            date of enactment of this Act, the Secretary and the
            Administrator of the Federal Aviation Administration shall
            provide incentives for commercial air tour operators that
            convert to quiet aircraft technology (as determined in
            accordance with the regulations in effect on the day before the
            date of enactment of this Act) before the date specified in
            paragraph (1), such as increasing the flight allocations for
            such operators on a net basis consistent with section 804(c) of
            the National Park Air Tours Management Act of 2000 (title VIII
            of Public Law 106-181), provided that the cumulative impact of
            such operations does not increase noise at Grand Canyon National
            Park.
    SEC. 35002. COMMERCIAL AIR TOUR OPERATIONS.

        Section 40128(b)(1)(C) of title 49, United States Code, is amended
    to read as follows:
                        ``(C) Exception.--An application to begin or expand
                    commercial air tour operations at Crater Lake National
                    Park or Great Smoky Mountains National Park may be
                    denied without the establishment of an air tour
                    management plan by the Director of the National Park
                    Service if the Director determines that such operations
                    would adversely affect park resources or visitor
                    experiences.''.
    SEC. 35003. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS.

        Section 40125 of title 49, United States Code, is amended by adding
    at the end the following:
        ``(d) Search and Rescue Purposes.--An aircraft described in section
    40102(a)(41)(D) that is not exclusively leased for at least 90
    continuous days by the government of a State, the District of Columbia,
    or a territory or possession of the United States or a political
    subdivision of 1 of those governments, qualifies as a public aircraft if
    the Administrator determines that--
                ``(1) there are extraordinary circumstances;
                ``(2) the aircraft will be used for the performance of
            search and rescue missions;
                ``(3) a community would not otherwise have access to search
            and rescue services; and

    [[Page 126 STAT. 844]]

                ``(4) a government entity demonstrates that granting the
            waiver is necessary to prevent an undue economic burden on that
            government.''.

      DIVISION D-- <<NOTE: Highway Investment, Job Creation, and Economic
    Growth Act of 2012.>> FINANCE
    SEC. 40001. <<NOTE: 26 USC 1 note.>> SHORT TITLE.

        This division may be cited as the ``Highway Investment, Job
    Creation, and Economic Growth Act of 2012''.

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

    SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.

        (a) Highway Trust Fund.--Section 9503 of the Internal Revenue Code
    of 1986 <<NOTE: 26 USC 9503.>> is amended--
                (1) by striking ``July 1, 2012'' in subsections (b)(6)(B),
            (c)(1), and (e)(3) and inserting ``October 1, 2014'', and
                (2) by striking ``Surface Transportation Extension Act of
            2012'' in subsections (c)(1) and (e)(3) and inserting ``MAP-
            21''.

        (b) Sport Fish Restoration and Boating Trust Fund.--Section 9504 of
    the Internal Revenue Code of 1986 is amended--
                (1) by striking ``Surface Transportation Extension Act of
            2012'' each place it appears in subsection (b)(2) and inserting
            ``MAP-21'', and
                (2) by striking ``July 1, 2012'' in subsection (d)(2) and
            inserting ``October 1, 2014''.

        (c) Leaking Underground Storage Tank Trust Fund.--Paragraph (2) of
    section 9508(e) of the Internal Revenue Code of 1986 is amended by
    striking ``July 1, 2012'' and inserting ``October 1, 2014''.
        (d) <<NOTE: 26 USC 9503 note.>> Effective Date.--The amendments made
    by this section shall take effect on July 1, 2012.
    SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES.

        (a) In General.--
                (1) Each of the following provisions of the Internal Revenue
            Code of 1986 is amended by striking ``June 30, 2012'' and
            inserting ``September 30, 2016'':
                        (A) Section 4041(a)(1)(C)(iii)(I).
                        (B) Section 4041(m)(1)(B).
                        (C) Section 4081(d)(1).
                (2) Each of the following provisions of such Code is amended
            by striking ``July 1, 2012'' and inserting ``October 1, 2016'':
                        (A) Section 4041(m)(1)(A).
                        (B) Section 4051(c).
                        (C) Section 4071(d).
                        (D) Section 4081(d)(3).

        (b) Extension of Tax, etc., on Use of Certain Heavy Vehicles.--
                (1) In general.--Each of the following provisions of the
            Internal Revenue Code of 1986 is amended by striking ``2013''
            each place it appears and inserting ``2017'':

    [[Page 126 STAT. 845]]

                        (A) <<NOTE: 26 USC 4481.>> Section 4481(f).
                        (B) Section 4482(d).
                (2) Extension and technical correction.--
                        (A) In general.--Paragraph (4) of section 4482(c) of
                    such Code is amended to read as follows:
                ``(4) <<NOTE: Definition.>> Taxable period.--The term
            `taxable period' means any year beginning before July 1, 2017,
            and the period which begins on July 1, 2017, and ends at the
            close of September 30, 2017.''.
                        (B) <<NOTE: 26 USC 4482 note.>> Effective date.--The
                    amendment made by this paragraph shall take effect as if
                    included in the amendments made by section 142 of the
                    Surface Transportation Extension Act of 2011, Part II.

        (c) Floor Stocks Refunds.--Section 6412(a)(1) of the Internal
    Revenue Code of 1986 is amended--
                (1) by striking ``July 1, 2012'' each place it appears and
            inserting ``October 1, 2016'',
                (2) by striking ``December 31, 2012'' each place it appears
            and inserting ``March 31, 2017'', and
                (3) by striking ``October 1, 2012'' and inserting ``January
            1, 2017''.

        (d) Extension of Certain Exemptions.--
                (1) Section 4221(a) of the Internal Revenue Code of 1986 is
            amended by striking ``July 1, 2012'' and inserting ``October 1,
            2016''.
                (2) Section 4483(i) of such Code is amended by striking
            ``July 1, 2012'' and inserting ``October 1, 2017''.

        (e) Extension of Transfers of Certain Taxes.--
                (1) In general.--Section 9503 of the Internal Revenue Code
            of 1986 is amended--
                        (A) in subsection (b)--
                              (i) by striking ``July 1, 2012'' each place it
                          appears in paragraphs (1) and (2) and inserting
                          ``October 1, 2016'',
                              (ii) by striking ``July 1, 2012'' in the
                          heading of paragraph (2) and inserting ``October
                          1, 2016'',
                              (iii) by striking ``June 30, 2012'' in
                          paragraph (2) and inserting ``September 30,
                          2016'', and
                              (iv) by striking ``April 1, 2013'' in
                          paragraph (2) and inserting ``July 1, 2017'', and
                        (B) in subsection (c)(2), by striking ``April 1,
                    2013'' and inserting ``July 1, 2017''.
                (2) Motorboat and small-engine fuel tax transfers.--
                        (A) In general.--Paragraphs (3)(A)(i) and (4)(A) of
                    section 9503(c) of such Code are each amended by
                    striking ``July 1, 2012'' and inserting ``October 1,
                    2016''.
                        (B) Conforming amendments to land and water
                    conservation fund.--Section 201(b) of the Land and Water
                    Conservation Fund Act of 1965 (16 U.S.C. 460l-11(b)) is
                    amended--
                              (i) by striking ``July 1, 2013'' each place it
                          appears and inserting ``October 1, 2017'', and
                              (ii) by striking ``July 1, 2012'' and
                          inserting ``October 1, 2016''.

        (f) <<NOTE: 16 USC 460l-11 note.>> Effective Date.--Except as
    otherwise provided in this section, the amendments made by this section
    shall take effect on July 1, 2012.

    [[Page 126 STAT. 846]]

                          TITLE II--REVENUE PROVISIONS

             Subtitle A--Leaking Underground Storage Tank Trust Fund

    SEC. 40201. TRANSFER FROM LEAKING UNDERGROUND STORAGE TANK TRUST
                                FUND TO HIGHWAY TRUST FUND.

        (a) In General.--Subsection (c) of section 9508 of the Internal
    Revenue Code of 1986 <<NOTE: 26 USC 9508.>> is amended--
                (1) by striking ``Amounts'' and inserting:
                ``(1) In general.--Except as provided in paragraph (2),
            amounts'', and
                (2) by adding at the end the following new paragraph:
                ``(2) <<NOTE: Appropriation authorization.>> Transfer to
            highway trust fund.--Out of amounts in the Leaking Underground
            Storage Tank Trust Fund there is hereby appropriated
            $2,400,000,000 to be transferred under section 9503(f)(3) to the
            Highway Account (as defined in section 9503(e)(5)(B)) in the
            Highway Trust Fund.''.

        (b) Transfer to Highway Trust Fund.--
                (1) In general.--Subsection (f) of section 9503 of the
            Internal Revenue Code of 1986 is amended by inserting after
            paragraph (2) the following new paragraph:
                ``(3) Increase in fund balance.--There is hereby transferred
            to the Highway Account (as defined in subsection (e)(5)(B)) in
            the Highway Trust Fund amounts appropriated from the Leaking
            Underground Storage Tank Trust Fund under section 9508(c)(2).''.
                (2) Conforming amendments.--Paragraph (4) of section 9503(f)
            of such Code is amended--
                        (A) by inserting ``or transferred'' after
                    ``appropriated'', and
                        (B) by striking ``appropriated'' in the heading
                    thereof.

                         Subtitle B--Pension Provisions

                      PART I--PENSION FUNDING STABILIZATION

    SEC. 40211. PENSION FUNDING STABILIZATION.

        (a) Amendments to Internal Revenue Code of 1986.--
                (1) In general.--Subparagraph (C) of section 430(h)(2) of
            the Internal Revenue Code of 1986 is amended by adding at the
            end the following new clause:
                              ``(iv) Segment rate stabilization.--
                                        ``(I) <<NOTE: Time period.>> In
                                    general.--If a segment rate described in
                                    clause (i), (ii), or (iii) with respect
                                    to any applicable month (determined
                                    without regard to this clause) is less
                                    than the applicable minimum percentage,
                                    or more than the applicable maximum
                                    percentage, of the average of the
                                    segment rates described in such clause
                                    for years in the 25-year period ending
                                    with September 30 of the calendar year
                                    preceding the calendar year in which the
                                    plan year begins, then the segment rate
                                    described in such clause with respect to
                                    the applicable month

    [[Page 126 STAT. 847]]

                                    shall be equal to the applicable minimum
                                    percentage or the applicable maximum
                                    percentage of such average, whichever is
                                    closest. <<NOTE: Determination.>> The
                                    Secretary shall determine such average
                                    on an annual basis and may prescribe
                                    equivalent rates for years in any such
                                    25-year period for which the rates
                                    described in any such clause are not
                                    available.
                                        ``(II) Applicable minimum
                                    percentage; applicable maximum
                                    percentage.--For purposes of subclause
                                    (I), the applicable minimum percentage
                                    and the applicable maximum percentage
                                    for a plan year beginning in a calendar
                                    year shall be determined in accordance
                                    with the following table:

    ------------------------------------------------------------------------
                                                        The          The
                                                     applicable   applicable
              ``If the calendar year is:              minimum      maximum
                                                     percentage   percentage
                                                        is:          is:
    ------------------------------------------------------------------------
    2012..........................................          90%         110%
    2013..........................................          85%         115%
    2014..........................................          80%         120%
    2015..........................................          75%         125%
    After 2015....................................          70%     130%.''.
    ------------------------------------------------------------------------

                (2) Conforming amendments.--
                        (A) Paragraph (6) of section 404(o) of such
                    Code <<NOTE: 26 USC 404.>> is amended by inserting
                    ``(determined by not taking into account any adjustment
                    under clause (iv) of subsection (h)(2)(C) thereof)''
                    before the period.
                        (B) Subparagraph (F) of section 430(h)(2) of such
                    Code is amended by inserting ``and the averages
                    determined under subparagraph (C)(iv)'' after
                    ``subparagraph (C)''.
                        (C) Subparagraphs (C) and (D) of section 417(e)(3)
                    of such Code are each amended by striking ``section
                    430(h)(2)(C)'' and inserting ``section 430(h)(2)(C)
                    (determined by not taking into account any adjustment
                    under clause (iv) thereof)''.
                        (D) Section 420 of such Code is amended by adding at
                    the end the following new subsection:

        ``(g) Segment Rates Determined Without Pension Stabilization.--
    <<NOTE: Applicability.>> For purposes of this section, section 430 shall
    be applied without regard to subsection (h)(2)(C)(iv) thereof.''.

        (b) Amendments to Employee Retirement Income Security Act of 1974.--
                (1) In general.--Subparagraph (C) of section 303(h)(2) of
            the Employee Retirement Income Security Act of 1974 (29 U.S.C.
            1083(h)(2)) is amended by adding at the end the following new
            clause:
                              ``(iv) Segment rate stabilization.--
                                        ``(I) <<NOTE: Time period.>> In
                                    general.--If a segment rate described in
                                    clause (i), (ii), or (iii) with respect
                                    to any applicable month (determined
                                    without regard to this clause) is less
                                    than the applicable minimum

    [[Page 126 STAT. 848]]

                                    percentage, or more than the applicable
                                    maximum percentage, of the average of
                                    the segment rates described in such
                                    clause for years in the 25-year period
                                    ending with September 30 of the calendar
                                    year preceding the calendar year in
                                    which the plan year begins, then the
                                    segment rate described in such clause
                                    with respect to the applicable month
                                    shall be equal to the applicable minimum
                                    percentage or the applicable maximum
                                    percentage of such average, whichever is
                                    closest.
                                    The <<NOTE: Determination.>> Secretary
                                    of the Treasury shall determine such
                                    average on an annual basis and may
                                    prescribe equivalent rates for years in
                                    any such 25-year period for which the
                                    rates described in any such clause are
                                    not available.
                                        ``(II) Applicable minimum
                                    percentage; applicable maximum
                                    percentage.--For purposes of subclause
                                    (I), the applicable minimum percentage
                                    and the applicable maximum percentage
                                    for a plan year beginning in a calendar
                                    year shall be determined in accordance
                                    with the following table:

    ------------------------------------------------------------------------
                                                        The          The
                                                     applicable   applicable
              ``If the calendar year is:              minimum      maximum
                                                     percentage   percentage
                                                        is:          is:
    ------------------------------------------------------------------------
    2012..........................................          90%         110%
    2013..........................................          85%         115%
    2014..........................................          80%         120%
    2015..........................................          75%         125%
    After 2015....................................          70%     130%.''.
    ------------------------------------------------------------------------

                (2) Disclosure of effect of segment rate stabilization on
            plan funding.--
                        (A) In general.--Paragraph (2) of section 101(f) of
                    such Act (29 U.S.C. 1021(f)) is amended by adding at the
                    end the following new subparagraph:
                        ``(D) Effect of segment rate stabilization on plan
                    funding.--
                              ``(i) In general.--In the case of a single-
                          employer plan for an applicable plan year, each
                          notice under paragraph (1) shall include--
                                        ``(I) a statement that the MAP-21
                                    modified the method for determining the
                                    interest rates used to determine the
                                    actuarial value of benefits earned under
                                    the plan, providing for a 25-year
                                    average of interest rates to be taken
                                    into account in addition to a 2-year
                                    average,
                                        ``(II) a statement that, as a result
                                    of the MAP-21, the plan sponsor may
                                    contribute less money to the plan when
                                    interest rates are at historical lows,
                                    and

    [[Page 126 STAT. 849]]

                                        ``(III) a table which shows
                                    (determined both with and without regard
                                    to section 303(h)(2)(C)(iv)) the funding
                                    target attainment percentage (as defined
                                    in section 303(d)(2)), the funding
                                    shortfall (as defined in section
                                    303(c)(4)), and the minimum required
                                    contribution (as determined under
                                    section 303), for the applicable plan
                                    year and each of the 2 preceding plan
                                    years.
                              ``(ii) <<NOTE: Definition.>> Applicable plan
                          year.--For purposes of this subparagraph, the term
                          `applicable plan year' means any plan year
                          beginning after December 31, 2011, and before
                          January 1, 2015, for which--
                                        ``(I) the funding target (as defined
                                    in section 303(d)(2)) is less than 95
                                    percent of such funding target
                                    determined without regard to section
                                    303(h)(2)(C)(iv),
                                        ``(II) the plan has a funding
                                    shortfall (as defined in section
                                    303(c)(4) and determined without regard
                                    to section 303(h)(2)(C)(iv)) greater
                                    than $500,000, and
                                        ``(III) the plan had 50 or more
                                    participants on any day during the
                                    preceding plan year.
                          For purposes of any determination under subclause
                          (III), the aggregation rule under the last
                          sentence of section 303(g)(2)(B) shall apply.
                              ``(iii) Special rule for plan years beginning
                          before 2012.--In the case of a preceding plan year
                          referred to in clause (i)(III) which begins before
                          January 1, 2012, the information described in such
                          clause shall be provided only without regard to
                          section 303(h)(2)(C)(iv).''.
                        (B) <<NOTE: 29 USC 1021 note.>> Model notice.--The
                    Secretary of Labor shall modify the model notice
                    required to be published under section 501(c) of the
                    Pension Protection Act of 2006 to prominently include
                    the information described in section 101(f)(2)(D) of the
                    Employee Retirement Income Security Act of 1974, as
                    added by this paragraph.
                (3) Conforming amendments.--
                        (A) Subparagraph (F) of section 303(h)(2) of such
                    Act (29 U.S.C. 1083(h)(2)) is amended by inserting ``and
                    the averages determined under subparagraph (C)(iv)''
                    after ``subparagraph (C)''.
                        (B) Clauses (ii) and (iii) of section 205(g)(3)(B)
                    of such Act (29 U.S.C. 1055(g)(3)(B)) are each amended
                    by striking ``section 303(h)(2)(C)'' and inserting
                    ``section 303(h)(2)(C) (determined by not taking into
                    account any adjustment under clause (iv) thereof)''.
                        (C) Clause (iv) of section 4006(a)(3)(E) of such Act
                    (29 U.S.C. 1306(a)(3)(E)) is amended by striking
                    ``section 303(h)(2)(C)'' and inserting ``section
                    303(h)(2)(C) (notwithstanding any regulations issued by
                    the corporation, determined by not taking into account
                    any adjustment under clause (iv) thereof)''.
                        (D) Section 4010(d) of such Act (29 U.S.C. 1310(d))
                    is amended by adding at the end the following:
                ``(3) <<NOTE: Determination.>> Pension stabilization
            disregarded.--For purposes of this section, the segment rates
            used in determining the

    [[Page 126 STAT. 850]]

            funding target and funding target attainment percentage shall be
            determined by not taking into account any adjustment under
            section 302(h)((2)(C)(iv).''.

        (c) <<NOTE: Applicability. 26 USC 1404 note.>> Effective Date.--
                (1) In general.--The amendments made by this section shall
            apply with respect to plan years beginning after December 31,
            2011.
                (2) Rules with respect to elections.--
                        (A) Adjusted funding target attainment percentage.--
                    A plan sponsor may elect not to have the amendments made
                    by this section apply to any plan year beginning before
                    January 1, 2013, either (as specified in the election)--
                              (i) for all purposes for which such amendments
                          apply, or
                              (ii) solely for purposes of determining the
                          adjusted funding target attainment percentage
                          under sections 436 of the Internal Revenue Code of
                          1986 and 206(g) of the Employee Retirement Income
                          Security Act of 1974 for such plan year.
                    A plan shall not be treated as failing to meet the
                    requirements of sections 204(g) of such Act and
                    411(d)(6) of such Code solely by reason of an election
                    under this paragraph.
                        (B) Opt out of existing elections.--If, on the date
                    of the enactment of this Act, an election is in effect
                    with respect to any plan under sections
                    303(h)((2)(D)(ii) of the Employee Retirement Income
                    Security Act of 1974 and 430(h)((2)(D)(ii) of the
                    Internal Revenue Code of 1986, then, notwithstanding the
                    last sentence of each such section, the plan sponsor may
                    revoke such election without the consent of the
                    Secretary of the Treasury. The plan sponsor may make
                    such revocation at any time before the date which is 1
                    year after such date of enactment and such revocation
                    shall be effective for the 1st plan year to which the
                    amendments made by this section apply and all subsequent
                    plan years. Nothing in this subparagraph shall preclude
                    a plan sponsor from making a subsequent election in
                    accordance with such sections.

                             PART II--PBGC PREMIUMS

    SEC. 40221. <<NOTE: Time periods.>> SINGLE EMPLOYER PLAN ANNUAL
                                PREMIUM RATES.

        (a) Flat-rate Premium.--
                (1) In general.--Clause (i) of section 4006(a)(3)(A) of the
            Employee Retirement Income Security Act of 1974 (29 U.S.C.
            1306(a)(3)(A)) is amended to read as follows:
                ``(i) in the case of a single-employer plan, an amount for
            each individual who is a participant in such plan during the
            plan year equal to the sum of the additional premium (if any)
            determined under subparagraph (E) and--
                        ``(I) for plan years beginning after December 31,
                    2005, and before January 1, 2013, $30;
                        ``(II) for plan years beginning after December 31,
                    2012, and before January 1, 2014, $42; and
                        ``(III) for plan years beginning after December 31,
                    2013, $49.''.

    [[Page 126 STAT. 851]]

                (2) Adjustment for inflation.--Subparagraph (F) of section
            4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended--
                        (A) in clause (i)(II), by inserting ``(2012 in the
                    case of plan years beginning after calendar year 2014)''
                    after ``2004''; and
                        (B) by adding at the end the following new sentence:
                    ``This subparagraph shall not apply to plan years
                    beginning in 2013 or 2014.''.

        (b) Variable-rate Premium.--
                (1) In general.--Subparagraph (E)(ii) of section 4006(a)(3)
            of the Employee Retirement Income Security Act of 1974 (29
            U.S.C. 1306(a)(3)) is amended by striking ``$9.00'' and
            inserting ``the applicable dollar amount under paragraph (8)''.
                (2) Applicable dollar amount.--Section 4006(a) of such Act
            (29 U.S.C. 1306(a)) is amended by adding at the end the
            following:
                ``(8) Applicable dollar amount for variable rate premium.--
            For purposes of paragraph (3)(E)(ii)--
                        ``(A) In general.--Except as provided in
                    subparagraphs (B) and (C), the applicable dollar amount
                    shall be--
                              ``(i) $9 for plan years beginning in a
                          calendar year before 2015;
                              ``(ii) for plan years beginning in calendar
                          year 2015, the amount in effect for plan years
                          beginning in 2014 (determined after application of
                          subparagraph (C)); and
                              ``(iii) for plan years beginning after
                          calendar year 2015, the amount in effect for plan
                          years beginning in 2015 (determined after
                          application of subparagraph (C)).
                        ``(B) Adjustment for inflation.--For each plan year
                    beginning in a calendar year after 2012, there shall be
                    substituted for the applicable dollar amount specified
                    under subparagraph (A) an amount equal to the greater
                    of--
                              ``(i) the product derived by multiplying such
                          applicable dollar amount for plan years beginning
                          in that calendar year by the ratio of--
                                        ``(I) the national average wage
                                    index (as defined in section 209(k)(1)
                                    of the Social Security Act) for the
                                    first of the 2 calendar years preceding
                                    the calendar year in which such plan
                                    year begins, to
                                        ``(II) the national average wage
                                    index (as so defined) for the base year;
                                    and
                              ``(ii) such applicable dollar amount in effect
                          for plan years beginning in the preceding calendar
                          year.
                    If the amount determined under this subparagraph is not
                    a multiple of $1, such product shall be rounded to the
                    nearest multiple of $1.
                        ``(C) Additional increase in 2014 and 2015.--The
                    applicable dollar amount determined under subparagraph
                    (A) (after the application of subparagraph (B)) shall be
                    increased--
                              ``(i) in the case of plan years beginning in
                          calendar year 2014, by $4; and
                              ``(ii) in the case of plan years beginning in
                          calendar year 2015, by $5.

    [[Page 126 STAT. 852]]

                        ``(D) Base year.--For purposes of subparagraph (B),
                    the base year is--
                              ``(i) 2010, in the case of plan years
                          beginning in calendar year 2013 or 2014;
                              ``(ii) 2012, in the case of plan years
                          beginning in calendar year 2015; and
                              ``(iii) 2013, in the case of plan years
                          beginning after calendar year 2015.''.
                (3) Cap.--
                        (A) In general.--Subparagraph (E)(i) of section
                    4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)) is amended
                    by striking ``for any plan year shall be'' and all that
                    follows through the end and inserting the following
                    ``for any plan year--
                ``(I) shall be an amount equal to the amount determined
            under clause (ii) divided by the number of participants in such
            plan as of the close of the preceding plan year; and
                ``(II) in the case of plan years beginning in a calendar
            year after 2012, shall not exceed $400.''.
                        (B) Adjustment for inflation.--Paragraph (3) of
                    section 4006(a) of such Act (29 U.S.C. 1306(a)(3)), as
                    amended by this Act, is amended by adding at the end the
                    following:

        ``(J) For each plan year beginning in a calendar year after 2013,
    there shall be substituted for the dollar amount specified in subclause
    (II) of subparagraph (E)(i) an amount equal to the greater of--
                ``(i) the product derived by multiplying such dollar amount
            by the ratio of--
                        ``(I) the national average wage index (as defined in
                    section 209(k)(1) of the Social Security Act) for the
                    first of the 2 calendar years preceding the calendar
                    year in which such plan year begins, to
                        ``(II) the national average wage index (as so
                    defined) for 2011; and
                ``(ii) such dollar amount for plan years beginning in the
            preceding calendar year.

    If the amount determined under this subparagraph is not a multiple of
    $1, such product shall be rounded to the nearest multiple of $1.''.
    SEC. 40222. <<NOTE: Time periods.>> MULTIEMPLOYER ANNUAL PREMIUM
                                RATES.

        (a) In General.--Subparagraph (A) of section 4006(a)(3) of the
    Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3))
    is amended--
                (1) by inserting ``and before January 1, 2013,'' after
            ``December 31, 2005,'' in clause (iv),
                (2) by striking ``or'' at the end of clause (iii),
                (3) by striking the period at the end of clause (iv) and
            inserting ``, or'', and
                (4) by adding at the end the following new clause:
                ``(v) in the case of a multiemployer plan, for plan years
            beginning after December 31, 2012, $12.00 for each individual
            who is a participant in such plan during the applicable plan
            year.''.

        (b) Inflation Adjustment.--Paragraph (3) of section 4006(a) of the
    Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)(3))
    is amended by adding at the end the following:

    [[Page 126 STAT. 853]]

        ``(I) For each plan year beginning in a calendar year after 2013,
    there shall be substituted for the premium rate specified in clause (v)
    of subparagraph (A) an amount equal to the greater of--
                ``(i) the product derived by multiplying the premium rate
            specified in clause (v) of subparagraph (A) by the ratio of--
                        ``(I) the national average wage index (as defined in
                    section 209(k)(1) of the Social Security Act) for the
                    first of the 2 calendar years preceding the calendar
                    year in which such plan year begins, to
                        ``(II) the national average wage index (as so
                    defined) for 2011; and
                ``(ii) the premium rate in effect under clause (v) of
            subparagraph (A) for plan years beginning in the preceding
            calendar year.

    If the amount determined under this subparagraph is not a multiple of
    $1, such product shall be rounded to the nearest multiple of $1.''.

                         PART III--IMPROVEMENTS OF PBGC

    SEC. 40231. PENSION BENEFIT GUARANTY CORPORATION GOVERNANCE
                                IMPROVEMENT.

        (a) Board of Directors of the Pension Benefit Guaranty
    Corporation.--
                (1) In general.--Section 4002(d) of the Employee Retirement
            Income Security Act of 1974 (29 U.S.C. 1302(d)) is amended--
                        (A) by striking ``(d) The board of directors'' and
                    inserting ``(d)(1) The board of directors''; and
                        (B) by adding at the end the following:

        ``(2) A majority of the members of the board of directors in office
    shall constitute a quorum for the transaction of business. The vote of
    the majority of the members present and voting at a meeting at which a
    quorum is present shall be the act of the board of directors.
        ``(3) Each member of the board of directors shall designate in
    writing an official, not below the level of Assistant Secretary, to
    serve as the voting representative of such member on the board. Such
    designation shall be effective until revoked or until a date or event
    specified therein. Any such representative may refer for board action
    any matter under consideration by the designating board member, but such
    representative shall not count toward establishment of a quorum as
    described under paragraph (2).
        ``(4) T <<NOTE: Reports.>> he Inspector General of the corporation
    shall report to the board of directors, and not less than twice a year,
    shall attend a meeting of the board of directors to provide a report on
    the activities and findings of the Inspector General, including with
    respect to monitoring and review of the operations of the corporation.

        ``(5) The General Counsel of the corporation shall--
                ``(A) serve as the secretary to the board of directors, and
            advise such board as needed; and
                ``(B) have overall responsibility for all legal matters
            affecting the corporation and provide the corporation with legal
            advice and opinions on all matters of law affecting the
            corporation, except that the authority of the General Counsel
            shall

    [[Page 126 STAT. 854]]

            not extend to the Office of Inspector General and the
            independent legal counsel of such Office.

        ``(6) Notwithstanding any other provision of this Act, the Office of
    Inspector General and the legal counsel of such Office are independent
    of the management of the corporation and the General Counsel of the
    corporation.
        ``(7) The board of directors may appoint and fix the compensation of
    employees as may be required to enable the board of directors to perform
    its duties. <<NOTE: Determination.>> The board of directors shall
    determine the qualifications and duties of such employees and may
    appoint and fix the compensation of experts and consultants in
    accordance with the provisions of section 3109 of title 5, United States
    Code.''.
                (2) Number of meetings; public availability.--Section
            4002(e) of such Act (29 U.S.C. 1302(e)) is amended--
                        (A) by striking ``The board'' and inserting ``(1)
                    The board'';
                        (B) by striking ``the corporation.'' and inserting
                    ``the corporation, but in no case less than 4 times a
                    year with not fewer than 2 members present. Not less
                    than 1 meeting of the board of directors during each
                    year shall be a joint meeting with the advisory
                    committee under subsection (h).''; and
                        (C) by adding at the end the following:

        ``(2)(A) Except as provided in subparagraph (B), the chairman of the
    board of directors shall make available to the public the minutes from
    each meeting of the board of directors.
        ``(B) The minutes of a meeting of the board of directors, or a
    portion thereof, shall not be subject to disclosure under subparagraph
    (A) if the chairman reasonably determines that such minutes, or portion
    thereof, contain confidential employer information including information
    obtained under section 4010, information about the investment activities
    of the corporation, or information regarding personnel decisions of the
    corporation.
        ``(C) The minutes of a meeting, or portion of thereof, exempt from
    disclosure pursuant to subparagraph (B) shall be exempt from disclosure
    under section 552(b) of title 5, United States Code. For purposes of
    such section 552, this subparagraph shall be considered a statute
    described in subsection (b)(3) of such section 552.''.
                (3) Advisory committee.--
                        (A) Issues considered by the committee.--Section
                    4002(h)(1) of such Act (29 U.S.C. 1302(h)(1)) is
                    amended--
                              (i) by striking ``, and (D)'' and inserting
                          ``, (D)''; and
                              (ii) by striking ``time to time.'' and
                          inserting ``time to time, and (E) other issues as
                          determined appropriate by the advisory
                          committee.''.
                        (B) Joint meeting.--Section 4002(h)(3) of such Act
                    (29 U.S.C. 1302(h)(3)) is amended by adding at the end
                    the following: ``Not less than 1 meeting of the advisory
                    committee during each year shall be a joint meeting with
                    the board of directors under subsection (e).''.

        (b) Avoiding Conflicts of Interest.--Section 4002 of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1302) is amended by
    adding at the end the following:
        ``(j) Conflicts of Interest.--
                ``(1) In general.--The Director of the corporation and each
            member of the board of directors shall not participate in a

    [[Page 126 STAT. 855]]

            decision of the corporation in which the Director or such member
            has a direct financial interest. The Director of the corporation
            shall not participate in any activities that would present a
            potential conflict of interest or appearance of a conflict of
            interest without approval of the board of directors.
                ``(2) Establishment of policy.--The board of directors shall
            establish a policy that will inform the identification of
            potential conflicts of interests of the members of the board of
            directors and mitigate perceived conflicts of interest of such
            members and the Director of the corporation.''.

        (c) Risk Mitigation.--Section 4002 of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1302), as amended by subsection (b), is
    further amended by adding at the end the following:
        ``(k) Risk Management Officer.--The corporation shall have a risk
    management officer whose duties include evaluating and mitigating the
    risk that the corporation might experience. <<NOTE: Recommenda-
    tions.>> The individual in such position shall coordinate the risk
    management efforts of the corporation, explain risks and controls to
    senior management and the board of directors of the corporation, and
    make recommendations.''.

        (d) Director.--Section 4002(c) of the Employee Retirement Income
    Security Act of 1974 (29 U.S.C. 1302(c)) is amended to read as follows:
        ``(c) The Director shall be accountable to the board of directors.
    The Director shall serve for a term of 5 years unless removed by the
    President or the board of directors before the expiration of such 5-year
    term.''.
        (e) <<NOTE: 29 USC 1302 note.>> Senses of Congress.--
                (1) Formation of committees.--It is the sense of Congress
            that the board of directors of the Pension Benefit Guaranty
            Corporation established under section 4002 of the Employee
            Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
            amended by this section, should form committees, including an
            audit committee and an investment committee composed of not less
            than 2 members, to enhance the overall effectiveness of the
            board of directors.
                (2) Advisory committee.--It is the sense of Congress that
            the advisory committee to the Pension Benefit Guaranty
            Corporation established under section 4002 of the Employee
            Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
            amended by this section, should provide to the board of
            directors of such corporation policy recommendations regarding
            changes to the law that would be beneficial to the corporation
            or the voluntary private pension system.

        (f) Study Regarding Governance Structures.--
                (1) <<NOTE: Deadline. Contracts.>> In general.--Not later
            than 90 days after the date of enactment of this Act, the
            Pension Benefit Guaranty Corporation shall enter into a contract
            with the National Academy of Public Administration to conduct
            the study described in paragraph (2) with respect to the Pension
            Benefit Guaranty Corporation.
                (2) Content of study.--The study conducted under paragraph
            (1) shall include--
                        (A) a review of the governance structures of
                    governmental and nongovernmental organizations that are
                    analogous to the Pension Benefit Guaranty Corporation;
                    and

    [[Page 126 STAT. 856]]

                        (B) recommendations regarding--
                              (i) the ideal size and composition of the
                          board of directors of the Pension Benefit Guaranty
                          Corporation;
                              (ii) procedures to select and remove members
                          of such board;
                              (iii) qualifications and term lengths of
                          members of such board; and
                              (iv) policies necessary to enhance
                          Congressional oversight and transparency of such
                          board and to mitigate potential conflicts of
                          interest of the members of such board.
                (3) <<NOTE: Deadline. Results.>> Submission to congress.--
            Not later than 1 year after the initiation of the study under
            paragraph (1), the National Academy of Public Administration
            shall submit the results of the study to the Committees on
            Health, Education, Labor, and Pensions and Finance of the Senate
            and the Committees on Education and the Workforce and Ways and
            Means of the House of Representatives.
    SEC. 40232. PARTICIPANT AND PLAN SPONSOR ADVOCATE.

        (a) In General.--Title IV of the Employee Retirement Income Security
    Act of 1974 (29 U.S.C. 1301 et seq.) is amended by inserting after
    section 4003 the following:
    ``SEC. 4004. <<NOTE: 29 USC 1304.>> PARTICIPANT AND PLAN SPONSOR
                              ADVOCATE.

        ``(a) In General.--The board of directors of the corporation shall
    select a Participant and Plan Sponsor Advocate from the candidates
    nominated by the advisory committee to the corporation under section
    4002(h)(1) and without regard to the provisions of title 5, United
    States Code, relating to appointments in the competitive service or
    Senior Executive Service.
        ``(b) Duties.--The Participant and Plan Sponsor Advocate shall--
                ``(1) act as a liaison between the corporation, sponsors of
            defined benefit pension plans insured by the corporation, and
            participants in pension plans trusteed by the corporation;
                ``(2) advocate for the full attainment of the rights of
            participants in plans trusteed by the corporation;
                ``(3) assist pension plan sponsors and participants in
            resolving disputes with the corporation;
                ``(4) identify areas in which participants and plan sponsors
            have persistent problems in dealings with the corporation;
                ``(5) to the extent possible, propose changes in the
            administrative practices of the corporation to mitigate
            problems;
                ``(6) identify potential legislative changes which may be
            appropriate to mitigate problems; and
                ``(7) refer instances of fraud, waste, and abuse, and
            violations of law to the Office of the Inspector General of the
            corporation.

        ``(c) <<NOTE: Notification. Deadline.>> Removal.--If the Participant
    and Plan Sponsor Advocate is removed from office or is transferred to
    another position or location within the corporation or the Department of
    Labor, the board of the directors of the corporation shall communicate
    in writing the reasons for any such removal or transfer to Congress not
    less than 30 days before the removal or transfer. Nothing in this
    subsection shall prohibit a personnel action otherwise authorized by
    law, other than transfer or removal.

    [[Page 126 STAT. 857]]

        ``(d) Compensation.--The annual rate of basic pay for the
    Participant and Plan Sponsor Advocate shall be the same rate as the
    highest rate of basic pay established for the Senior Executive Service
    under section 5382 of title 5, United States Code, or, if the board of
    directors of the corporation so determines, at a rate fixed under
    section 9503 of such title.
        ``(e) Annual Report.--
                ``(1) In general.--Not later than December 31 of each
            calendar year, the Participant and Plan Sponsor Advocate shall
            report to the Health, Education, Labor, and Pensions Committee
            of the Senate, the Committee on Finance of the Senate, the
            Committee on Education and the Workforce of the House of
            Representatives, and the Committee on Ways and Means of the
            House of Representatives on the activities of the Office of the
            Participant and Plan Sponsor Advocate during the fiscal year
            ending during such calendar year.
                ``(2) Content.--Each report submitted under paragraph (1)
            shall--
                        ``(A) summarize the assistance requests received
                    from participants and plan sponsors and describe the
                    activities, and evaluate the effectiveness, of the
                    Participant and Plan Sponsor Advocate during the
                    preceding year;
                        ``(B) identify significant problems the Participant
                    and Plan Sponsor Advocate has identified;
                        ``(C) include specific legislative and regulatory
                    changes to address the problems; and
                        ``(D) identify any actions taken to correct problems
                    identified in any previous report.
                ``(3) <<NOTE: Records.>> Concurrent submission.--The
            Participant and Plan Sponsor Advocate shall submit a copy of
            each report to the Secretary of Labor, the Director of the
            corporation, and any other appropriate official at the same time
            such report is submitted to the committees of Congress under
            paragraph (1).''.

        (b) Advisory Committee Nominations.--Section 4002(h)(1) of the
    Employee Retirement Income Security Act of 1974 (29 U.S.C.1302(h)(1)) is
    amended by adding at the end the following new sentence: ``In the event
    of a vacancy or impending vacancy in the office of the Participant and
    Plan Sponsor Advocate established under section 4004, the Advisory
    Committee shall, in consultation with the Director of the corporation
    and participant and plan sponsor advocacy groups, nominate at least two
    but no more than three individuals to serve as the Participant and Plan
    Sponsor Advocate.''.
        (c) Clerical Amendment.--The table of contents in section 1 of the
    Employee Retirement Income Security Act of 1974 is amended by inserting
    after the item relating to section 4003 the following new item:

    ``4004. Participant and Plan Sponsor Advocate.''.

    SEC. 40233. QUALITY CONTROL PROCEDURES FOR THE PENSION BENEFIT
                                GUARANTY CORPORATION.

        (a) <<NOTE: Contracts. 29 USC 1302 note.>> Annual Peer Review of
    Insurance Modeling Systems.--The Pension Benefit Guaranty Corporation
    shall contract with a capable agency or organization that is independent
    from the Corporation, such as the Social Security Administration, to
    conduct an annual peer review of the Corporation's Single-Employer
    Pension Insurance Modeling System and the Corporation's Multiemployer

    [[Page 126 STAT. 858]]

    Pension Insurance Modeling System. The board of directors of the
    Corporation shall designate the agency or organization with which any
    such contract is entered into. <<NOTE: Deadline.>> The first of such
    annual peer reviews shall be initiated no later than 3 months after the
    date of enactment of this Act.

        (b) <<NOTE: 29 USC 1302 note.>> Policies and Procedures Relating to
    the Policy, Research, and Analysis Department.--The Pension Benefit
    Guaranty Corporation shall--
                (1) develop written quality review policies and procedures
            for all modeling and actuarial work performed by the
            Corporation's Policy, Research, and Analysis Department; and
                (2) <<NOTE: Records.>> conduct a record management review of
            such Department to determine what records must be retained as
            Federal records.

        (c) Report Relating to OIG Recommendations.--Not later than 2 months
    after the date of enactment of this Act, the Pension Benefit Guaranty
    Corporation shall submit to Congress a report, approved by the board of
    directors of the Corporation, setting forth a timetable for addressing
    the outstanding recommendations of the Office of the Inspector General
    relating to the Policy, Research, and Analysis Department and the
    Benefits Administration and Payment Department.
    SEC. 40234. LINE OF CREDIT REPEAL.

        (a) In General.--Subsection (c) of section 4005 of the Employee
    Retirement Income Security Act of 1974 (29 U.S.C. 1305) is repealed.
        (b) Conforming Amendments.--
                (1) Section 4005 of the Employee Retirement Income Security
            Act of 1974 (29 U.S.C. 1305) is amended--
                        (A) in subsection (b)--
                              (i) paragraph (1)--
                                        (I) by striking subparagraph (A);
                                    and
                                        (II) by redesignating subparagraphs
                                    (B) through (G) as subparagraphs (A)
                                    through (F), respectively;
                              (ii) in paragraph (2)--
                                        (I) by striking subparagraph (C);
                                    and
                                        (II) by redesignating subparagraphs
                                    (D) and (E) as subparagraphs (C) and
                                    (D), respectively; and
                              (iii) in paragraph (3), by striking ``but,''
                          and all that follows through the end and inserting
                          a period; and
                        (B) in subsection (g)--
                              (i) by striking paragraph (2); and
                              (ii) by redesignating paragraph (3) as
                          paragraph (2).
                (2) Section 4402 of such Act (29 U.S.C. 1461) is amended--
                        (A) in subsection (c)(4)--
                              (i) by striking subparagraph (C); and
                              (ii) by redesignating subparagraph (D) as
                          subparagraph (C); and
                        (B) in subsection (d), by striking ``or (D)''.

    [[Page 126 STAT. 859]]

                   PART IV--TRANSFERS OF EXCESS PENSION ASSETS

    SEC. 40241. EXTENSION FOR TRANSFERS OF EXCESS PENSION ASSETS TO
                                RETIREE HEALTH ACCOUNTS.

        (a) In General.--Paragraph (5) of section 420(b) of the Internal
    Revenue Code of 1986 <<NOTE: 26 USC 420.>> is amended by striking
    ``December 31, 2013'' and inserting ``December 31, 2021''.

        (b) Conforming ERISA Amendments.--
                (1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the
            Employee Retirement Income Security Act of 1974 <<NOTE: 29 USC
            1021, 1103, 1108.>> are each amended by striking ``Pension
            Protection Act of 2006'' and inserting ``MAP-21''.
                (2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13))
            is amended by striking ``January 1, 2014'' and inserting
            ``January 1, 2022''.

        (c) <<NOTE: 26 USC 420 note.>> Effective Date.--The amendments made
    by this Act shall take effect on the date of the enactment of this Act.
    SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE GROUP
                                TERM LIFE INSURANCE ACCOUNTS.

        (a) In General.--Subsection (a) of section 420 of the Internal
    Revenue Code of 1986 is amended by inserting ``, or an applicable life
    insurance account,'' after ``health benefits account''.
        (b) Applicable Life Insurance Account Defined.--
                (1) In general.--Subsection (e) of section 420 of the
            Internal Revenue Code of 1986 is amended by redesignating
            paragraphs (4) and (5) as paragraphs (5) and (6), respectively,
            and by inserting after paragraph (3) the following new
            paragraph:
                ``(4) Applicable life insurance account.--The term
            `applicable life insurance account' means a separate account
            established and maintained for amounts transferred under this
            section for qualified current retiree liabilities based on
            premiums for applicable life insurance benefits.''.
                (2) Applicable life insurance benefits defined.--Paragraph
            (1) of section 420(e) of such Code is amended by redesignating
            subparagraph (D) as subparagraph (E) and by inserting after
            subparagraph (C) the following new subparagraph:
                        ``(D) Applicable life insurance benefits.--The term
                    `applicable life insurance benefits' means group-term
                    life insurance coverage provided to retired employees
                    who, immediately before the qualified transfer, are
                    entitled to receive such coverage by reason of
                    retirement and who are entitled to pension benefits
                    under the plan, but only to the extent that such
                    coverage is provided under a policy for retired
                    employees and the cost of such coverage is excludable
                    from the retired employee's gross income under section
                    79.''.
                (3) Collectively bargained life insurance benefits
            defined.--
                        (A) In general.--Paragraph (6) of section 420(f) of
                    such Code is amended by redesignating subparagraph (D)
                    as subparagraph (E) and by inserting after subparagraph
                    (C) the following new subparagraph:

    [[Page 126 STAT. 860]]

                        ``(D) Collectively bargained life insurance
                    benefits.--The term `collectively bargained life
                    insurance benefits' means, with respect to any
                    collectively bargained transfer--
                              ``(i) applicable life insurance benefits which
                          are provided to retired employees who, immediately
                          before the transfer, are entitled to receive such
                          benefits by reason of retirement, and
                              ``(ii) if specified by the provisions of the
                          collective bargaining agreement governing the
                          transfer, applicable life insurance benefits which
                          will be provided at retirement to employees who
                          are not retired employees at the time of the
                          transfer.''.
                        (B) Conforming amendments.--
                              (i) Clause (i) of section 420(e)(1)(C) of
                          such <<NOTE: 26 USC 420.>> Code is amended by
                          striking ``upon retirement'' and inserting ``by
                          reason of retirement''.
                              (ii) Subparagraph (C) of section 420(f)(6) of
                          such Code is amended--
                                        (I) by striking ``which are provided
                                    to'' in the matter preceding clause (i),
                                        (II) by inserting ``which are
                                    provided to'' before ``retired
                                    employees'' in clause (i),
                                        (III) by striking ``upon
                                    retirement'' in clause (i) and inserting
                                    ``by reason of retirement'', and
                                        (IV) by striking ``active employees
                                    who, following their retirement,'' and
                                    inserting ``which will be provided at
                                    retirement to employees who are not
                                    retired employees at the time of the
                                    transfer and who''.

        (c) Maintenance of Effort.--
                (1) In general.--Subparagraph (A) of section 420(c)(3) of
            the Internal Revenue Code of 1986 is amended by inserting ``,
            and each group-term life insurance plan under which applicable
            life insurance benefits are provided,'' after ``health benefits
            are provided''.
                (2) Conforming amendments.--
                        (A) Subparagraph (B) of section 420(c)(3) of such
                    Code is amended--
                              (i) by redesignating subclauses (I) and (II)
                          of clause (i) as subclauses (II) and (III) of such
                          clause, respectively, and by inserting before
                          subclause (II) of such clause, as so redesignated,
                          the following new subclause:
                                        ``(I) separately with respect to
                                    applicable health benefits and
                                    applicable life insurance benefits,'',
                                    and
                              (ii) by striking ``for applicable health
                          benefits'' and all that follows in clause (ii) and
                          inserting ``was provided during such taxable year
                          for the benefits with respect to which the
                          determination under clause (i) is made.''.
                        (B) Subparagraph (C) of section 420(c)(3) of such
                    Code is amended--
                              (i) by inserting ``for applicable health
                          benefits'' after ``applied separately'', and
                              (ii) by inserting ``, and separately for
                          applicable life insurance benefits with respect to
                          individuals age

    [[Page 126 STAT. 861]]

                          65 or older at any time during the taxable year
                          and with respect to individuals under age 65
                          during the taxable year'' before the period.
                        (C) Subparagraph (E) of section 420(c)(3) of
                    such <<NOTE: 26 USC 420.>> Code is amended--
                              (i) in clause (i), by inserting ``or retiree
                          life insurance coverage, as the case may be,''
                          after ``retiree health coverage'',
                              (ii) in clause (ii), by inserting ``for
                          retiree health coverage'' after ``cost
                          reductions'' in the heading thereof, and
                              (iii) in clause (ii)(II), by inserting ``with
                          respect to applicable health benefits'' after
                          ``liabilities of the employer''.
                        (D) Paragraph (2) of section 420(f) of such Code is
                    amended by striking ``collectively bargained retiree
                    health liabilities'' each place it occurs and inserting
                    ``collectively bargained retiree liabilities''.
                        (E) Clause (i) of section 420(f)(2)(D) of such Code
                    is amended--
                              (i) by inserting ``, and each group-term life
                          insurance plan or arrangement under which
                          applicable life insurance benefits are provided,''
                          in subclause (I) after ``applicable health
                          benefits are provided'',
                              (ii) by inserting ``or applicable life
                          insurance benefits, as the case may be,'' in
                          subclause (I) after ``provides applicable health
                          benefits'',
                              (iii) by striking ``group health'' in
                          subclause (II), and
                              (iv) by inserting ``or collectively bargained
                          life insurance benefits'' in subclause (II) after
                          ``collectively bargained health benefits''.
                        (F) Clause (ii) of section 420(f)(2)(D) of such Code
                    is amended--
                              (i) by inserting ``with respect to applicable
                          health benefits or applicable life insurance
                          benefits'' after ``requirements of subsection
                          (c)(3)'', and
                              (ii) by adding at the end the following:
                          ``Such election may be made separately with
                          respect to applicable health benefits and
                          applicable life insurance benefits. In the case of
                          an election with respect to applicable life
                          insurance benefits, the first sentence of this
                          clause shall be applied as if subsection (c)(3) as
                          in effect before the amendments made by such Act
                          applied to such benefits.''.
                        (G) Clause (iii) of section 420(f)(2)(D) of such
                    Code is amended--
                              (i) by striking ``retiree'' each place it
                          occurs, and
                              (ii) by inserting ``, collectively bargained
                          life insurance benefits, or both, as the case may
                          be,'' after ``health benefits'' each place it
                          occurs.

        (d) Coordination With Section 79.--Section 79 of the Internal
    Revenue Code of 1986 is amended by adding at the end the following new
    subsection:
        ``(f) Exception for Life Insurance Purchased in Connection With
    Qualified Transfer of Excess Pension Assets.--Subsection (b)(3) and
    section 72(m)(3) shall not apply in the case

    [[Page 126 STAT. 862]]

    of any cost paid (whether directly or indirectly) with assets held in an
    applicable life insurance account (as defined in section 420(e)(4))
    under a defined benefit plan.''.
        (e) Conforming Amendments.--
                (1) Section 420 of the Internal Revenue Code of
            1986 <<NOTE: 26 USC 420.>> is amended by striking ``qualified
            current retiree health liabilities'' each place it appears and
            inserting ``qualified current retiree liabilities''.
                (2) Section 420 of such Code is amended by inserting ``, or
            an applicable life insurance account,'' after ``a health
            benefits account'' each place it appears in subsection
            (b)(1)(A), subparagraphs (A), (B)(i), and (C) of subsection
            (c)(1), subsection (d)(1)(A), and subsection (f)(2)(E)(ii).
                (3) Section 420(b) of such Code is amended--
                        (A) by adding the following at the end of paragraph
                    (2)(A): ``If there is a transfer from a defined benefit
                    plan to both a health benefits account and an applicable
                    life insurance account during any taxable year, such
                    transfers shall be treated as 1 transfer for purposes of
                    this paragraph.'', and
                        (B) by inserting ``to an account'' after ``may be
                    transferred'' in paragraph (3).
                (4) The heading for section 420(c)(1)(B) of such Code is
            amended by inserting ``or life insurance'' after ``health
            benefits''.
                (5) Paragraph (1) of section 420(e) of such Code is
            amended--
                        (A) by inserting ``and applicable life insurance
                    benefits'' in subparagraph (A) after ``applicable health
                    benefits'', and
                        (B) by striking ``health'' in the heading thereof.
                (6) Subparagraph (B) of section 420(e)(1) of such Code is
            amended--
                        (A) in the matter preceding clause (i), by inserting
                    ``(determined separately for applicable health benefits
                    and applicable life insurance benefits)'' after ``shall
                    be reduced by the amount'',
                        (B) in clause (i), by inserting ``or applicable life
                    insurance accounts'' after ``health benefit accounts'',
                    and
                        (C) in clause (i), by striking ``qualified current
                    retiree health liability'' and inserting ``qualified
                    current retiree liability''.
                (7) The heading for subsection (f) of section 420 of such
            Code is amended by striking ``health'' each place it occurs.
                (8) Subclause (II) of section 420(f)(2)(B)(ii) of such Code
            is amended by inserting ``or applicable life insurance account,
            as the case may be,'' after ``health benefits account''.
                (9) Subclause (III) of section 420(f)(2)(E)(i) of such Code
            is amended--
                        (A) by inserting ``defined benefit'' before ``plan
                    maintained by an employer'', and
                        (B) by inserting ``health'' before ``benefit plans
                    maintained by the employer''.
                (10) Paragraphs (4) and (6) of section 420(f) of such Code
            are each amended by striking ``collectively bargained retiree
            health liabilities'' each place it occurs and inserting
            ``collectively bargained retiree liabilities''.

    [[Page 126 STAT. 863]]

                (11) Subparagraph (A) of section 420(f)(6) <<NOTE: 26 USC
            420.>> of such Code is amended--
                        (A) in clauses (i) and (ii), by inserting ``, in the
                    case of a transfer to a health benefits account,''
                    before ``his covered spouse and dependents'', and
                        (B) in clause (ii), by striking ``health plan'' and
                    inserting ``plan''.
                (12) Subparagraph (B) of section 420(f)(6) of such Code is
            amended--
                        (A) in clause (i), by inserting ``, and collectively
                    bargained life insurance benefits,'' after
                    ``collectively bargained health benefits'',
                        (B) in clause (ii)--
                              (i) <<NOTE: Applicability.>> by adding at the
                          end the following: ``The preceding sentence shall
                          be applied separately for collectively bargained
                          health benefits and collectively bargained life
                          insurance benefits.'', and
                              (ii) by inserting ``, applicable life
                          insurance accounts,'' after ``health benefit
                          accounts'', and
                        (C) by striking ``health'' in the heading thereof.
                (13) Subparagraph (E) of section 420(f)(6) of such Code, as
            redesignated by subsection (b), is amended--
                        (A) by striking ``bargained health'' and inserting
                    ``bargained'',
                        (B) by inserting ``, or a group-term life insurance
                    plan or arrangement for retired employees,'' after
                    ``dependents'', and
                        (C) by striking ``health'' in the heading thereof.
                (14) Section 101(e) of the Employee Retirement Income
            Security Act of 1974 (29 U.S.C. 1021(e)) is amended--
                        (A) in paragraphs (1) and (2), by inserting ``or
                    applicable life insurance account'' after ``health
                    benefits account'' each place it appears, and
                        (B) in paragraph (1), by inserting ``or applicable
                    life insurance benefit liabilities'' after ``health
                    benefits liabilities''.

        (f) Technical Correction.--Clause (iii) of section 420(f)(6)(B) of
    the Internal Revenue Code of 1986 is amended by striking ``416(I)(1)''
    and inserting ``416(i)(1)''.
        (g) Repeal of Deadwood.--
                (1) Subparagraph (A) of section 420(b)(1) of the Internal
            Revenue Code of 1986 is amended by striking ``in a taxable year
            beginning after December 31, 1990''.
                (2) Subsection (b) of section 420 of such Code is amended by
            striking paragraph (4) and by redesignating paragraph (5), as
            amended by this Act, as paragraph (4).
                (3) Paragraph (2) of section 420(b) of such Code, as amended
            by this section, is amended--
                        (A) by striking subparagraph (B), and
                        (B) by striking ``per year.--'' and all that follows
                    through ``No more than'' and inserting ``per year.--No
                    more than''.
                (4) Paragraph (2) of section 420(c) of such Code is
            amended--
                        (A) by striking subparagraph (B),
                        (B) by moving subparagraph (A) two ems to the left,
                    and

    [[Page 126 STAT. 864]]

                        (C) by striking ``before transfer.--'' and all that
                    follows through ``The requirements of this paragraph''
                    and inserting the following: ``before transfer.--The
                    requirements of this paragraph''.
                (5) Paragraph (2) of section 420(d) of such Code <<NOTE: 26
            USC 420.>> is amended by striking ``after December 31, 1990''.

        (h) <<NOTE: 26 USC 420 note.>> Effective Date.--
                (1) <<NOTE: Applicability.>> In general.--The amendments
            made by this section shall apply to transfers made after the
            date of the enactment of this Act.
                (2) Conforming amendments relating to pension protection
            act.--The amendments made by subsections (b)(3)(B) and (f) shall
            take effect as if included in the amendments made by section
            841(a) of the Pension Protection Act of 2006.

             Subtitle C--Additional Transfers to Highway Trust Fund

    SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.

        Subsection (f) of section 9503 of the Internal Revenue Code of 1986,
    as amended by this Act, is amended by redesignating paragraph (4) as
    paragraph (5) and by inserting after paragraph (3) the following new
    paragraph:
                ``(4) Additional appropriations to trust fund.--Out of money
            in the Treasury not otherwise appropriated, there is hereby
            appropriated to--
                        ``(A) the Highway Account (as defined in subsection
                    (e)(5)(B)) in the Highway Trust Fund--
                              ``(i) for fiscal year 2013, $6,200,000,000,
                          and
                              ``(ii) for fiscal year 2014, $10,400,000,000,
                          and
                        ``(B) the Mass Transit Account in the Highway Trust
                    Fund, for fiscal year 2014, $2,200,000,000.''.

     DIVISION E-- <<NOTE: Transportation Research and Innovative Technology
    Act of 2012.>> RESEARCH AND EDUCATION
    SEC. 50001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

        This division may be cited as the ``Transportation Research and
    Innovative Technology Act of 2012''.

                                TITLE I--FUNDING

    SEC. 51001. AUTHORIZATION OF APPROPRIATIONS.

        (a) In General.--The following amounts are authorized to be
    appropriated out of the Highway Trust Fund (other than the Mass Transit
    Account):
                (1) Highway research and development program.--To carry out
            sections 503(b), 503(d), and 509 of title 23, United States
            Code, $115,000,000 for each of fiscal years 2013 and 2014.

    [[Page 126 STAT. 865]]

                (2) Technology and innovation deployment program.--To carry
            out section 503(c) of title 23, United States Code, $62,500,000
            for each of fiscal years 2013 and 2014.
                (3) Training and education.--To carry out section 504 of
            title 23, United States Code, $24,000,000 for each of fiscal
            years 2013 and 2014.
                (4) Intelligent transportation systems program.--To carry
            out sections 512 through 518 of title 23, United States Code,
            $100,000,000 for each of fiscal years 2013 and 2014.
                (5) University transportation centers program.--To carry out
            section 5505 of title 49, United States Code, $72,500,000 for
            each of fiscal years 2013 and 2014.
                (6) Bureau of transportation statistics.--To carry out
            chapter 63 of title 49, United States Code, $26,000,000 for each
            of fiscal years 2013 and 2014.

        (b) Applicability of Title 23, United States Code.--Funds authorized
    to be appropriated by subsection (a) shall--
                (1) be available for obligation in the same manner as if
            those funds were apportioned under chapter 1 of title 23, United
            States Code, except that the Federal share of the cost of a
            project or activity carried out using those funds shall be 80
            percent, unless otherwise expressly provided by this Act
            (including the amendments by this Act) or otherwise determined
            by the Secretary; and
                (2) remain available until expended and not be transferable.

                  TITLE II--RESEARCH, TECHNOLOGY, AND EDUCATION

    SEC. 52001. <<NOTE: Definitions.>> RESEARCH, TECHNOLOGY, AND
                                EDUCATION.

        Section 501 of title 23, United States Code, is amended--
                (1) by redesignating paragraph (2) as paragraph (8);
                (2) by inserting after paragraph (1) the following:
                ``(2) Incident.--The term `incident' means a crash, natural
            disaster, workzone activity, special event, or other emergency
            road user occurrence that adversely affects or impedes the
            normal flow of traffic.
                ``(3) Innovation lifecycle.--The term `innovation lifecycle'
            means the process of innovating through--
                        ``(A) the identification of a need;
                        ``(B) the establishment of the scope of research to
                    address that need;
                        ``(C) setting an agenda;
                        ``(D) carrying out research, development,
                    deployment, and testing of the resulting technology or
                    innovation; and
                        ``(E) carrying out an evaluation of the costs and
                    benefits of the resulting technology or innovation.
                ``(4) Intelligent transportation infrastructure.--The term
            `intelligent transportation infrastructure' means fully
            integrated public sector intelligent transportation system
            components, as defined by the Secretary.
                ``(5) Intelligent transportation system.--The terms
            `intelligent transportation system' and `ITS' mean electronics,
            photonics, communications, or information processing used singly
            or in combination to improve the efficiency or safety of a
            surface transportation system.

    [[Page 126 STAT. 866]]

                ``(6) National architecture.--For purposes of this chapter,
            the term `national architecture' means the common framework for
            interoperability that defines--
                        ``(A) the functions associated with intelligent
                    transportation system user services;
                        ``(B) the physical entities or subsystems within
                    which the functions reside;
                        ``(C) the data interfaces and information flows
                    between physical subsystems; and
                        ``(D) the communications requirements associated
                    with the information flows.
                ``(7) Project.--The term `project' means an undertaking to
            research, develop, or operationally test intelligent
            transportation systems or any other undertaking eligible for
            assistance under this chapter.''; and
                (3) by inserting after paragraph (8) (as so redesignated)
            the following:
                ``(9) Standard.--The term `standard' means a document that--
                        ``(A) contains technical specifications or other
                    precise criteria for intelligent transportation systems
                    that are to be used consistently as rules, guidelines,
                    or definitions of characteristics so as to ensure that
                    materials, products, processes, and services are fit for
                    the intended purposes of the materials, products,
                    processes, and services; and
                        ``(B) may support the national architecture and
                    promote--
                              ``(i) the widespread use and adoption of
                          intelligent transportation system technology as a
                          component of the surface transportation systems of
                          the United States; and
                              ``(ii) interoperability among intelligent
                          transportation system technologies implemented
                          throughout the States.''.
    SEC. 52002. SURFACE TRANSPORTATION RESEARCH, DEVELOPMENT, AND
                                TECHNOLOGY.

        (a) Surface Transportation Research, Development, and Technology.--
    Section 502 of title 23, United States Code, is amended--
                (1) in the section heading by inserting ``, development, and
            technology'' after ``surface transportation research'';
                (2) in subsection (a)--
                        (A) by redesignating paragraphs (1) through (8) as
                    paragraphs (2) through (9), respectively;
                        (B) by inserting before paragraph (2) (as
                    redesignated by subparagraph (A)) the following:
                ``(1) Applicability.--The research, development, and
            technology provisions of this section shall apply throughout
            this chapter.'';
                        (C) in paragraph (2) (as redesignated by
                    subparagraph (A))--
                              (i) by inserting ``within the innovation
                          lifecycle'' after ``activities''; and
                              (ii) by inserting ``communications, impact
                          analysis,'' after ``training,'';

    [[Page 126 STAT. 867]]

                        (D) in paragraph (3) (as redesignated by
                    subparagraph (A))--
                              (i) in subparagraph (B) by striking ``supports
                          research in which there is a clear public benefit
                          and'' and inserting ``delivers a clear public
                          benefit and occurs where'';
                              (ii) in subparagraph (C) by striking ``or''
                          after the semicolon;
                              (iii) by redesignating subparagraph (D) as
                          subparagraph (I); and
                              (iv) by inserting after subparagraph (C) the
                          following:
                        ``(D) meets and addresses current or emerging needs;
                        ``(E) addresses current gaps in research;
                        ``(F) presents the best means to align resources
                    with multiyear plans and priorities;
                        ``(G) ensures the coordination of highway research
                    and technology transfer activities, including through
                    activities performed by university transportation
                    centers;
                        ``(H) educates transportation professionals; or'';
                        (E) in paragraph (4) (as redesignated by
                    subparagraph (A)) by striking subparagraphs (B) through
                    (D) and inserting the following:
                        ``(B) partner with State highway agencies and other
                    stakeholders as appropriate to facilitate research and
                    technology transfer activities;
                        ``(C) communicate the results of ongoing and
                    completed research;
                        ``(D) lead efforts to coordinate national emphasis
                    areas of highway research, technology, and innovation
                    deployment;
                        ``(E) leverage partnerships with industry, academia,
                    international entities, and State departments of
                    transportation;
                        ``(F) lead efforts to reduce unnecessary duplication
                    of effort; and
                        ``(G) lead efforts to accelerate innovation
                    delivery.'';
                        (F) in paragraph (5)(C) (as redesignated by
                    subparagraph (A)) by striking ``policy and planning''
                    and inserting ``all highway objectives seeking to
                    improve the performance of the transportation system'';
                        (G) in paragraph (6) (as redesignated by
                    subparagraph (A)) in the second sentence, by inserting
                    ``tribal governments,'' after ``local governments,'';
                        (H) in paragraph (8) (as redesignated by
                    subparagraph (A))--
                              (i) in the first sentence, by striking ``To
                          the maximum'' and inserting the following:
                        ``(A) In general.--To the maximum'';
                              (ii) in the second sentence, by striking
                          ``Performance measures'' and inserting the
                          following:
                        ``(B) Performance measures.--Performance measures'';
                              (iii) in the third sentence, by striking ``All
                          evaluations'' and inserting the following:
                        ``(D) Availability of evaluations.--All evaluations
                    under this paragraph''; and

    [[Page 126 STAT. 868]]

                              (iv) by inserting after subparagraph (B) the
                          following:
                        ``(C) Program plan.--To the maximum extent
                    practicable, each program pursued under this chapter
                    shall be part of a data-driven, outcome-oriented program
                    plan.''; and
                        (I) in paragraph (9) (as redesignated by
                    subparagraph (A)), by striking ``surface'';
                (3) in subsection (b)--
                        (A) in paragraph (4) by striking ``surface
                    transportation research and technology development
                    strategic plan developed under section 508'' and
                    inserting ``transportation research and development
                    strategic plan of the Secretary developed under section
                    508'';
                        (B) in paragraph (5) by striking ``section'' each
                    place it appears and inserting ``chapter'';
                        (C) in paragraph (6) by adding at the end the
                    following:
                        ``(C) Transfer of amounts among states or to federal
                    highway administration.--The Secretary may, at the
                    request of a State, transfer amounts apportioned or
                    allocated to that State under this chapter to another
                    State or the Federal Highway Administration to fund
                    research, development, and technology transfer
                    activities of mutual interest on a pooled funds basis.
                        ``(D) Transfer of obligation authority.--Obligation
                    authority for amounts transferred under this subsection
                    shall be disbursed in the same manner and for the same
                    amount as provided for the project being transferred.'';
                    and
                        (D) by adding at the end the following:
                ``(7) Prize competitions.--
                        ``(A) In general.--The Secretary may use up to 1
                    percent of the funds made available under section 51001
                    of the Transportation Research and Innovative Technology
                    Act of 2012 to carry out a program to competitively
                    award cash prizes to stimulate innovation in basic and
                    applied research and technology development that has the
                    potential for application to the national transportation
                    system.
                        ``(B) Topics.--In selecting topics for prize
                    competitions under this paragraph, the Secretary shall--
                              ``(i) <<NOTE: Consultation.>> consult with a
                          wide variety of governmental and nongovernmental
                          representatives; and
                              ``(ii) give consideration to prize goals that
                          demonstrate innovative approaches and strategies
                          to improve the safety, efficiency, and
                          sustainability of the national transportation
                          system.
                        ``(C) Advertising.--The Secretary shall encourage
                    participation in the prize competitions through
                    advertising efforts.
                        ``(D) <<NOTE: Notice. Web posting.>> Requirements
                    and registration.--For each prize competition, the
                    Secretary shall publish a notice on a public website
                    that describes--
                              ``(i) the subject of the competition;
                              ``(ii) the eligibility rules for participation
                          in the competition;
                              ``(iii) the amount of the prize; and
                              ``(iv) the basis on which a winner will be
                          selected.

    [[Page 126 STAT. 869]]

                        ``(E) Eligibility.--An individual or entity may not
                    receive a prize under this paragraph unless the
                    individual or entity--
                              ``(i) has registered to participate in the
                          competition pursuant to any rules promulgated by
                          the Secretary under this section;
                              ``(ii) has complied with all requirements
                          under this paragraph;
                              ``(iii)(I) in the case of a private entity, is
                          incorporated in, and maintains a primary place of
                          business in, the United States; or
                              ``(II) in the case of an individual, whether
                          participating singly or in a group, is a citizen
                          or permanent resident of the United States;
                              ``(iv) is not a Federal entity or Federal
                          employee acting within the scope of his or her
                          employment; and
                              ``(v) has not received a grant to perform
                          research on the same issue for which the prize is
                          awarded.
                        ``(F) Liability.--
                              ``(i) Assumption of risk.--
                                        ``(I) In general.--A registered
                                    participant shall agree to assume any
                                    and all risks and waive claims against
                                    the Federal Government and its related
                                    entities, except in the case of willful
                                    misconduct, for any injury, death,
                                    damage, or loss of property, revenue, or
                                    profits, whether direct, indirect, or
                                    consequential, arising from
                                    participation in a competition, whether
                                    such injury, death, damage, or loss
                                    arises through negligence or otherwise.
                                        ``(II) Related entity.--In this
                                    subparagraph, the term `related entity'
                                    means a contractor, subcontractor (at
                                    any tier), supplier, user, customer,
                                    cooperating party, grantee,
                                    investigator, or detailee.
                              ``(ii) Financial responsibility.--A
                          participant shall obtain liability insurance or
                          demonstrate financial responsibility, in amounts
                          determined by the Secretary, for claims by--
                                        ``(I) a third party for death,
                                    bodily injury, or property damage, or
                                    loss resulting from an activity carried
                                    out in connection with participation in
                                    a competition, with the Federal
                                    Government named as an additional
                                    insured under the registered
                                    participant's insurance policy and
                                    registered participants agreeing to
                                    indemnify the Federal Government against
                                    third party claims for damages arising
                                    from or related to competition
                                    activities; and
                                        ``(II) the Federal Government for
                                    damage or loss to Government property
                                    resulting from such an activity.
                        ``(G) Judges.--
                              ``(i) Selection.--Subject to clause (iii), for
                          each prize competition, the Secretary, either
                          directly or through an agreement under
                          subparagraph (H), may

    [[Page 126 STAT. 870]]

                          appoint 1 or more qualified judges to select the
                          winner or winners of the prize competition on the
                          basis of the criteria described in subparagraph
                          (D).
                              ``(ii) Selection.--Judges for each competition
                          shall include individuals from outside the Federal
                          Government, including the private sector.
                              ``(iii) Limitations.--A judge selected under
                          this subparagraph may not--
                                        ``(I) have personal or financial
                                    interests in, or be an employee,
                                    officer, director, or agent of, any
                                    entity that is a registered participant
                                    in a prize competition under this
                                    paragraph; or
                                        ``(II) have a familial or financial
                                    relationship with an individual who is a
                                    registered participant.
                        ``(H) Administering the competition.--The Secretary
                    may enter into an agreement with a private, nonprofit
                    entity to administer the prize competition, subject to
                    the provisions of this paragraph.
                        ``(I) Funding.--
                              ``(i) In general.--
                                        ``(I) Private sector funding.--A
                                    cash prize under this paragraph may
                                    consist of funds appropriated by the
                                    Federal Government and funds provided by
                                    the private sector.
                                        ``(II) Government funding.--The
                                    Secretary may accept funds from other
                                    Federal agencies, State and local
                                    governments, and metropolitan planning
                                    organizations for a cash prize under
                                    this paragraph.
                                        ``(III) No special consideration.--
                                    The Secretary may not give any special
                                    consideration to any private sector
                                    entity in return for a donation under
                                    this subparagraph.
                              ``(ii) Availability of funds.--Notwithstanding
                          any other provision of law, amounts appropriated
                          for prize awards under this paragraph--
                                        ``(I) shall remain available until
                                    expended; and
                                        ``(II) m <<NOTE: Time period.>> ay
                                    not be transferred, reprogrammed, or
                                    expended for other purposes until after
                                    the expiration of the 10-year period
                                    beginning on the last day of the fiscal
                                    year for which the funds were originally
                                    appropriated.
                              ``(iii) Savings provision.--Nothing in this
                          subparagraph may be construed to permit the
                          obligation or payment of funds in violation of the
                          Anti-Deficiency Act (31 U.S.C. 1341).
                              ``(iv) Prize announcement.--A prize may not be
                          announced under this paragraph until all the funds
                          needed to pay out the announced amount of the
                          prize have been appropriated by a governmental
                          source or committed to in writing by a private
                          source.
                              ``(v) Prize increases.--The Secretary may
                          increase the amount of a prize after the initial
                          announcement of the prize under this paragraph
                          if--
                                        ``(I) notice of the increase is
                                    provided in the same manner as the
                                    initial notice of the prize; and

    [[Page 126 STAT. 871]]

                                        ``(II) the funds needed to pay out
                                    the announced amount of the increase
                                    have been appropriated by a governmental
                                    source or committed to in writing by a
                                    private source.
                              ``(vi) <<NOTE: Time period.>> Congressional
                          notification.--A prize competition under this
                          paragraph may offer a prize in an amount greater
                          than $1,000,000 only after 30 days have elapsed
                          after written notice has been transmitted to the
                          Committee on Commerce, Science, and Transportation
                          of the Senate and the Committees on Transportation
                          and Infrastructure and Science, Space, and
                          Technology of the House of Representatives.
                              ``(vii) Award limit.--A prize competition
                          under this section may not result in the award of
                          more than $25,000 in cash prizes without the
                          approval of the Secretary.
                        ``(J) Compliance with existing law.--The Federal
                    Government shall not, by virtue of offering or providing
                    a prize under this paragraph, be responsible for
                    compliance by registered participants in a prize
                    competition with Federal law, including licensing,
                    export control, and non-proliferation laws, and related
                    regulations.
                        ``(K) Notice and annual report.--
                              ``(i) In general.--Not later than 30 days
                          prior to carrying out an activity under
                          subparagraph (A), the Secretary shall notify the
                          Committees on Transportation and Infrastructure
                          and Science, Space, and Technology of the House of
                          Representatives and the Committees on Environment
                          and Public Works and Commerce, Science, and
                          Transportation of the Senate of the intent to use
                          such authority.
                              ``(ii) Reports.--
                                        ``(I) In general.--The Secretary
                                    shall submit to the committees described
                                    in clause (i) on an annual basis a
                                    report on the activities carried out
                                    under subparagraph (A) in the preceding
                                    fiscal year if the Secretary exercised
                                    the authority under subparagraph (A) in
                                    that fiscal year.
                                        ``(II) Information included.--A
                                    report under this subparagraph shall
                                    include, for each prize competition
                                    under subparagraph (A)--
                                                ``(aa) a description of the
                                            proposed goals of the prize
                                            competition;
                                                ``(bb) an analysis of why
                                            the use of the authority under
                                            subparagraph (A) was the
                                            preferable method of achieving
                                            the goals described in item (aa)
                                            as opposed to other authorities
                                            available to the Secretary, such
                                            as contracts, grants, and
                                            cooperative agreements;
                                                ``(cc) the total amount of
                                            cash prizes awarded for each
                                            prize competition, including a
                                            description of the amount of
                                            private funds contributed to the
                                            program, the source of such
                                            funds, and the manner in which
                                            the amounts

    [[Page 126 STAT. 872]]

                                            of cash prizes awarded and
                                            claimed were allocated among the
                                            accounts of the Department for
                                            recording as obligations and
                                            expenditures;
                                                ``(dd) the methods used for
                                            the solicitation and evaluation
                                            of submissions under each prize
                                            competition, together with an
                                            assessment of the effectiveness
                                            of such methods and lessons
                                            learned for future prize
                                            competitions;
                                                ``(ee) a description of the
                                            resources, including personnel
                                            and funding, used in the
                                            execution of each prize
                                            competition together with a
                                            detailed description of the
                                            activities for which such
                                            resources were used and an
                                            accounting of how funding for
                                            execution was allocated among
                                            the accounts of the agency for
                                            recording as obligations and
                                            expenditures; and
                                                ``(ff) a description of how
                                            each prize competition advanced
                                            the mission of the
                                            Department.'';
                (4) in subsection (c)--
                        (A) in paragraph (3)(A)--
                              (i) by striking ``subsection'' and inserting
                          ``chapter''; and
                              (ii) by striking ``50'' and inserting ``80'';
                          and
                        (B) in paragraph (4) by striking ``subsection'' and
                    inserting ``chapter''; and
                (5) by striking subsections (d) through (j).

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by striking the item relating to section
    502 and inserting the following:

    ``502. Surface transportation research, development, and technology.''

    SEC. 52003. RESEARCH AND TECHNOLOGY DEVELOPMENT AND DEPLOYMENT.

        (a) In General.--Section 503 of title 23, United States Code, is
    amended to read as follows:
    ``Sec. 503. Research and technology development and deployment

        ``(a) In General.--The Secretary shall--
                ``(1) carry out research, development, and deployment
            activities that encompass the entire innovation lifecycle; and
                ``(2) ensure that all research carried out under this
            section aligns with the transportation research and development
            strategic plan of the Secretary under section 508.

        ``(b) Highway Research and Development Program.--
                ``(1) Objectives.--In carrying out the highway research and
            development program, the Secretary, to address current and
            emerging highway transportation needs, shall--
                        ``(A) identify research topics;
                        ``(B) coordinate research and development
                    activities;
                        ``(C) carry out research, testing, and evaluation
                    activities; and
                        ``(D) provide technology transfer and technical
                    assistance.
                ``(2) Improving highway safety.--

    [[Page 126 STAT. 873]]

                        ``(A) In general.--The Secretary shall carry out
                    research and development activities from an integrated
                    perspective to establish and implement systematic
                    measures to improve highway safety.
                        ``(B) Objectives.--In carrying out this paragraph,
                    the Secretary shall carry out research and development
                    activities--
                              ``(i) to achieve greater long-term safety
                          gains;
                              ``(ii) to reduce the number of fatalities and
                          serious injuries on public roads;
                              ``(iii) to fill knowledge gaps that limit the
                          effectiveness of research;
                              ``(iv) to support the development and
                          implementation of State strategic highway safety
                          plans;
                              ``(v) to advance improvements in, and use of,
                          performance prediction analysis for
                          decisionmaking; and
                              ``(vi) to expand technology transfer to
                          partners and stakeholders.
                        ``(C) Contents.--Research and technology activities
                    carried out under this paragraph may include--
                              ``(i) safety assessments and decisionmaking
                          tools;
                              ``(ii) data collection and analysis;
                              ``(iii) crash reduction projections;
                              ``(iv) low-cost safety countermeasures;
                              ``(v) innovative operational improvements and
                          designs of roadway and roadside features;
                              ``(vi) evaluation of countermeasure costs and
                          benefits;
                              ``(vii) development of tools for projecting
                          impacts of safety countermeasures;
                              ``(viii) rural road safety measures;
                              ``(ix) safety measures for vulnerable road
                          users, including bicyclists and pedestrians;
                              ``(x) safety policy studies;
                              ``(xi) human factors studies and measures;
                              ``(xii) safety technology deployment;
                              ``(xiii) safety workforce professional
                          capacity building initiatives;
                              ``(xiv) safety program and process
                          improvements; and
                              ``(xv) tools and methods to enhance safety
                          performance, including achievement of statewide
                          safety performance targets.
                ``(3) Improving infrastructure integrity.--
                        ``(A) In general.--The Secretary shall carry out and
                    facilitate highway and bridge infrastructure research
                    and development activities--
                              ``(i) to maintain infrastructure integrity;
                              ``(ii) to meet user needs; and
                              ``(iii) to link Federal transportation
                          investments to improvements in system performance.
                        ``(B) Objectives.--In carrying out this paragraph,
                    the Secretary shall carry out research and development
                    activities--
                              ``(i) to reduce the number of fatalities
                          attributable to infrastructure design
                          characteristics and work zones;

    [[Page 126 STAT. 874]]

                              ``(ii) to improve the safety and security of
                          highway infrastructure;
                              ``(iii) to increase the reliability of
                          lifecycle performance predictions used in
                          infrastructure design, construction, and
                          management;
                              ``(iv) to improve the ability of
                          transportation agencies to deliver projects that
                          meet expectations for timeliness, quality, and
                          cost;
                              ``(v) to reduce user delay attributable to
                          infrastructure system performance, maintenance,
                          rehabilitation, and construction;
                              ``(vi) to improve highway condition and
                          performance through increased use of design,
                          materials, construction, and maintenance
                          innovations;
                              ``(vii) to reduce the environmental impacts of
                          highway infrastructure through innovations in
                          design, construction, operation, preservation, and
                          maintenance; and
                              ``(viii) to study vulnerabilities of the
                          transportation system to seismic activities and
                          extreme events and methods to reduce those
                          vulnerabilities.
                        ``(C) Contents.--Research and technology activities
                    carried out under this paragraph may include--
                              ``(i) long-term infrastructure performance
                          programs addressing pavements, bridges, tunnels,
                          and other structures;
                              ``(ii) short-term and accelerated studies of
                          infrastructure performance;
                              ``(iii) research to develop more durable
                          infrastructure materials and systems;
                              ``(iv) advanced infrastructure design methods;
                              ``(v) accelerated highway and bridge
                          construction;
                              ``(vi) performance-based specifications;
                              ``(vii) construction and materials quality
                          assurance;
                              ``(viii) comprehensive and integrated
                          infrastructure asset management;
                              ``(ix) infrastructure safety assurance;
                              ``(x) sustainable infrastructure design and
                          construction;
                              ``(xi) infrastructure rehabilitation and
                          preservation techniques, including techniques to
                          rehabilitate and preserve historic infrastructure;
                              ``(xii) hydraulic, geotechnical, and
                          aerodynamic aspects of infrastructure;
                              ``(xiii) improved highway construction
                          technologies and practices;
                              ``(xiv) improved tools, technologies, and
                          models for infrastructure management, including
                          assessment and monitoring of infrastructure
                          condition;
                              ``(xv) studies to improve flexibility and
                          resiliency of infrastructure systems to withstand
                          climate variability;
                              ``(xvi) studies on the effectiveness of fiber-
                          based additives to improve the durability of
                          surface transportation materials in various
                          geographic regions;
                              ``(xvii) studies of infrastructure resilience
                          and other adaptation measures;

    [[Page 126 STAT. 875]]

                              ``(xviii) maintenance of seismic research
                          activities, including research carried out in
                          conjunction with other Federal agencies to study
                          the vulnerability of the transportation system to
                          seismic activity and methods to reduce that
                          vulnerability; and
                              ``(xix) technology transfer and adoption of
                          permeable, pervious, or porous paving materials,
                          practices, and systems that are designed to
                          minimize environmental impacts, stormwater runoff,
                          and flooding and to treat or remove pollutants by
                          allowing stormwater to infiltrate through the
                          pavement in a manner similar to predevelopment
                          hydrologic conditions.
                        ``(D) Lifecycle costs analysis study.--
                              ``(i) <<NOTE: Definition.>> In general.--In
                          this subparagraph, the term `lifecycle costs
                          analysis' means a process for evaluating the total
                          economic worth of a usable project segment by
                          analyzing initial costs and discounted future
                          costs, such as maintenance, user, reconstruction,
                          rehabilitation, restoring, and resurfacing costs,
                          over the life of the project segment.
                              ``(ii) Study.--The Comptroller General shall
                          conduct a study of the best practices for
                          calculating lifecycle costs and benefits for
                          federally funded highway projects, which shall
                          include, at a minimum, a thorough literature
                          review and a survey of current lifecycle cost
                          practices of State departments of transportation.
                              ``(iii) Consultation.--In carrying out the
                          study, the Comptroller shall consult with, at a
                          minimum--
                                        ``(I) the American Association of
                                    State Highway and Transportation
                                    Officials;
                                        ``(II) appropriate experts in the
                                    field of lifecycle cost analysis; and
                                        ``(III) appropriate industry experts
                                    and research centers.
                        ``(E) Report.--Not later than 1 year after the date
                    of enactment of the Transportation Research and
                    Innovative Technology Act of 2012, the Comptroller
                    General shall submit to the Committee on Environment and
                    Public Works of the Senate and the Committees on
                    Transportation and Infrastructure and Science, Space,
                    and Technology of the House of Representatives a report
                    on the results of the study which shall include--
                              ``(i) a summary of the latest research on
                          lifecycle cost analysis; and
                              ``(ii) recommendations on the appropriate--
                                        ``(I) period of analysis;
                                        ``(II) design period;
                                        ``(III) discount rates; and
                                        ``(IV) use of actual material life
                                    and maintenance cost data.
                ``(4) Strengthening transportation planning and
            environmental decisionmaking.--
                        ``(A) In general.--The Secretary may carry out
                    research--
                              ``(i) to minimize the cost of transportation
                          planning and environmental decisionmaking
                          processes;

    [[Page 126 STAT. 876]]

                              ``(ii) to improve transportation planning and
                          environmental decisionmaking processes; and
                              ``(iii) to minimize the potential impact of
                          surface transportation on the environment.
                        ``(B) Objectives.--In carrying out this paragraph
                    the Secretary may carry out research and development
                    activities--
                              ``(i) to minimize the cost of highway
                          infrastructure and operations;
                              ``(ii) to reduce the potential impact of
                          highway infrastructure and operations on the
                          environment;
                              ``(iii) to advance improvements in
                          environmental analyses and processes and context
                          sensitive solutions for transportation
                          decisionmaking;
                              ``(iv) to improve construction techniques;
                              ``(v) to accelerate construction to reduce
                          congestion and related emissions;
                              ``(vi) to reduce the impact of highway runoff
                          on the environment;
                              ``(vii) to improve understanding and modeling
                          of the factors that contribute to the demand for
                          transportation; and
                              ``(viii) to improve transportation planning
                          decisionmaking and coordination.
                        ``(C) Contents.--Research and technology activities
                    carried out under this paragraph may include--
                              ``(i) creation of models and tools for
                          evaluating transportation measures and
                          transportation system designs, including the costs
                          and benefits;
                              ``(ii) congestion reduction efforts;
                              ``(iii) transportation and economic
                          development planning in rural areas and small
                          communities;
                              ``(iv) improvement of State, local, and tribal
                          government capabilities relating to surface
                          transportation planning and the environment; and
                              ``(v) streamlining of project delivery
                          processes.
                ``(5) Reducing congestion, improving highway operations, and
            enhancing freight productivity.--
                        ``(A) In general.--The Secretary shall carry out
                    research under this paragraph with the goals of--
                              ``(i) addressing congestion problems;
                              ``(ii) reducing the costs of congestion;
                              ``(iii) improving freight movement;
                              ``(iv) increasing productivity; and
                              ``(v) improving the economic competitiveness
                          of the United States.
                        ``(B) Objectives.--In carrying out this paragraph,
                    the Secretary shall carry out research and development
                    activities to identify, develop, and assess innovations
                    that have the potential--
                              ``(i) to reduce traffic congestion;
                              ``(ii) to improve freight movement; and
                              ``(iii) to reduce freight-related congestion
                          throughout the transportation network.
                        ``(C) Contents.--Research and technology activities
                    carried out under this paragraph may include--
                              ``(i) active traffic and demand management;

    [[Page 126 STAT. 877]]

                              ``(ii) acceleration of the implementation of
                          Intelligent Transportation Systems technology;
                              ``(iii) advanced transportation concepts and
                          analysis;
                              ``(iv) arterial management and traffic signal
                          operation;
                              ``(v) congestion pricing;
                              ``(vi) corridor management;
                              ``(vii) emergency operations;
                              ``(viii) research relating to enabling
                          technologies and applications;
                              ``(ix) freeway management;
                              ``(x) evaluation of enabling technologies;
                              ``(xi) impacts of vehicle size and weight on
                          congestion;
                              ``(xii) freight operations and technology;
                              ``(xiii) operations and freight performance
                          measurement and management;
                              ``(xiv) organization and planning for
                          operations;
                              ``(xv) planned special events management;
                              ``(xvi) real-time transportation information;
                              ``(xvii) road weather management;
                              ``(xviii) traffic and freight data and
                          analysis tools;
                              ``(xix) traffic control devices;
                              ``(xx) traffic incident management;
                              ``(xxi) work zone management;
                              ``(xxii) communication of travel, roadway, and
                          emergency information to persons with
                          disabilities;
                              ``(xxiii) research on enhanced mode choice and
                          intermodal connectivity;
                              ``(xxiv) techniques for estimating and
                          quantifying public benefits derived from freight
                          transportation projects; and
                              ``(xxv) other research areas to identify and
                          address emerging needs related to freight
                          transportation by all modes.
                ``(6) Exploratory advanced research.--The Secretary shall
            carry out research and development activities relating to
            exploratory advanced research--
                        ``(A) to leverage the targeted capabilities of the
                    Turner-Fairbank Highway Research Center to develop
                    technologies and innovations of national importance; and
                        ``(B) to develop potentially transformational
                    solutions to improve the durability, efficiency,
                    environmental impact, productivity, and safety aspects
                    of highway and intermodal transportation systems.
                ``(7) Turner-fairbank highway research center.--
                        ``(A) <<NOTE: Operation.>> In general.--The
                    Secretary shall continue to operate in the Federal
                    Highway Administration a Turner-Fairbank Highway
                    Research Center.
                        ``(B) Uses of the center.--The Turner-Fairbank
                    Highway Research Center shall support--
                              ``(i) the conduct of highway research and
                          development relating to emerging highway
                          technology;
                              ``(ii) the development of understandings,
                          tools, and techniques that provide solutions to
                          complex technical problems through the development
                          of economical and

    [[Page 126 STAT. 878]]

                          environmentally sensitive designs, efficient and
                          quality-controlled construction practices, and
                          durable materials;
                              ``(iii) the development of innovative highway
                          products and practices; and
                              ``(iv) the conduct of long-term, high-risk
                          research to improve the materials used in highway
                          infrastructure.
                ``(8) Infrastructure investment needs report.--
                        ``(A) In general.--Not later than July 31, 2013, and
                    July 31 of every second year thereafter, the Secretary
                    shall submit to the Committee on Transportation and
                    Infrastructure of the House of Representatives and the
                    Committee on Environment and Public Works of the Senate
                    a report that describes estimates of the future highway
                    and bridge needs of the United States and the backlog of
                    current highway and bridge needs.
                        ``(B) Comparisons.--Each report under subparagraph
                    (A) shall include all information necessary to relate
                    and compare the conditions and service measures used in
                    the previous biennial reports to conditions and service
                    measures used in the current report.
                        ``(C) Inclusions.--Each report under subparagraph
                    (A) shall provide recommendations to Congress on changes
                    to the highway performance monitoring system that
                    address--
                              ``(i) improvements to the quality and
                          standardization of data collection on all
                          functional classifications of Federal-aid highways
                          for accurate system length, lane length, and
                          vehicle-mile of travel; and
                              ``(ii) changes to the reporting requirements
                          authorized under section 315, to reflect
                          recommendations under this paragraph for
                          collection, storage, analysis, reporting, and
                          display of data for Federal-aid highways and, to
                          the maximum extent practical, all public roads.

        ``(c) Technology and Innovation Deployment Program.--
                ``(1) In general.--The Secretary shall carry out a
            technology and innovation deployment program relating to all
            aspects of highway transportation, including planning,
            financing, operation, structures, materials, pavements,
            environment, construction, and the duration of time between
            project planning and project delivery, with the goals of--
                        ``(A) significantly accelerating the adoption of
                    innovative technologies by the surface transportation
                    community;
                        ``(B) providing leadership and incentives to
                    demonstrate and promote state-of-the-art technologies,
                    elevated performance standards, and new business
                    practices in highway construction processes that result
                    in improved safety, faster construction, reduced
                    congestion from construction, and improved quality and
                    user satisfaction;
                        ``(C) constructing longer-lasting highways through
                    the use of innovative technologies and practices that
                    lead to faster construction of efficient and safe
                    highways and bridges;
                        ``(D) improving highway efficiency, safety,
                    mobility, reliability, service life, environmental
                    protection, and sustainability; and

    [[Page 126 STAT. 879]]

                        ``(E) developing and deploying new tools,
                    techniques, and practices to accelerate the adoption of
                    innovation in all aspects of highway transportation.
                ``(2) Implementation.--
                        ``(A) In general.--The Secretary shall promote,
                    facilitate, and carry out the program established under
                    paragraph (1) to distribute the products, technologies,
                    tools, methods, or other findings that result from
                    highway research and development activities, including
                    research and development activities carried out under
                    this chapter.
                        ``(B) Accelerated innovation deployment.--In
                    carrying out the program established under paragraph
                    (1), the Secretary shall--
                              ``(i) establish and carry out demonstration
                          programs;
                              ``(ii) provide technical assistance, and
                          training to researchers and developers; and
                              ``(iii) develop improved tools and methods to
                          accelerate the adoption of proven innovative
                          practices and technologies as standard practices.
                        ``(C) Implementation of future strategic highway
                    research program findings and results.--
                              ``(i) In general.--The Secretary, in
                          consultation with the American Association of
                          State Highway and Transportation Officials and the
                          Transportation Research Board of the National
                          Academy of Sciences, shall promote research
                          results and products developed under the future
                          strategic highway research program administered by
                          the Transportation Research Board of the National
                          Academy of Sciences.
                              ``(ii) Basis for findings.--The activities
                          carried out under this subparagraph shall be based
                          on the report submitted to Congress by the
                          Transportation Research Board of the National
                          Academy of Sciences under section 510(e).
                              ``(iii) Personnel.--The Secretary may use
                          funds made available to carry out this subsection
                          for administrative costs under this subparagraph.
                ``(3) Accelerated implementation and deployment of pavement
            technologies.--
                        ``(A) In general.--The Secretary shall establish and
                    implement a program under the technology and innovation
                    deployment program to promote, implement, deploy,
                    demonstrate, showcase, support, and document the
                    application of innovative pavement technologies,
                    practices, performance, and benefits.
                        ``(B) Goals.--The goals of the accelerated
                    implementation and deployment of pavement technologies
                    program shall include--
                              ``(i) the deployment of new, cost-effective
                          designs, materials, recycled materials, and
                          practices to extend the pavement life and
                          performance and to improve user satisfaction;
                              ``(ii) the reduction of initial costs and
                          lifecycle costs of pavements, including the costs
                          of new construction, replacement, maintenance, and
                          rehabilitation;

    [[Page 126 STAT. 880]]

                              ``(iii) the deployment of accelerated
                          construction techniques to increase safety and
                          reduce construction time and traffic disruption
                          and congestion;
                              ``(iv) the deployment of engineering design
                          criteria and specifications for new and efficient
                          practices, products, and materials for use in
                          highway pavements;
                              ``(v) the deployment of new nondestructive and
                          real-time pavement evaluation technologies and
                          construction techniques; and
                              ``(vi) effective technology transfer and
                          information dissemination to accelerate
                          implementation of new technologies and to improve
                          life, performance, cost effectiveness, safety, and
                          user satisfaction.
                        ``(C) Funding.--The Secretary shall obligate for
                    each of fiscal years 2013 through 2014 from funds made
                    available to carry out this subsection $12,000,000 to
                    accelerate the deployment and implementation of pavement
                    technology.''.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by striking the item relating to section
    503 and inserting the following:

    ``503. Research and technology development and deployment.''.

    SEC. 52004. TRAINING AND EDUCATION.

        Section 504 of title 23, United States Code, is amended--
                (1) in subsection (a)--
                        (A) in paragraph (2)(A) by inserting ``and the
                    employees of any other applicable Federal agency''
                    before the semicolon at the end; and
                        (B) in paragraph (3)(A)(ii)(V) by striking
                    ``expediting'' and inserting ``reducing the amount of
                    time required for'';
                (2) in subsection (b) by striking paragraph (3) and
            inserting the following:
                ``(3) Federal share.--
                        ``(A) Local technical assistance centers.--
                              ``(i) In general.--Subject to subparagraph
                          (B), the Federal share of the cost of an activity
                          carried out by a local technical assistance center
                          under paragraphs (1) and (2) shall be 50 percent.
                              ``(ii) Non-federal share.--The non-Federal
                          share of the cost of an activity described in
                          clause (i) may consist of amounts provided to a
                          recipient under subsection (e) or section 505, up
                          to 100 percent of the non-Federal share.
                        ``(B) Tribal technical assistance centers.--The
                    Federal share of the cost of an activity carried out by
                    a tribal technical assistance center under paragraph
                    (2)(D)(ii) shall be 100 percent.'';
                (3) in subsection (c)(2)--
                        (A) by striking ``The Secretary'' and inserting the
                    following:
                        ``(A) In general.--The Secretary'';
                        (B) in subparagraph (A) (as designated by
                    subparagraph (A)) by striking ``. The program'' and
                    inserting ``, which program''; and
                        (C) by adding at the end the following:

    [[Page 126 STAT. 881]]

                        ``(B) Use of amounts.--Amounts provided to
                    institutions of higher education to carry out this
                    paragraph shall be used to provide direct support of
                    student expenses.'';
                (4) in subsection (e)--
                        (A) in paragraph (1)--
                              (i) in the matter preceding subparagraph (A)
                          by striking ``sections 104(b)(1), 104(b)(2),
                          104(b)(3), 104(b)(4), and 144(e)'' and inserting
                          ``paragraphs (1) through (4) of section 104(b)'';
                              (ii) in subparagraph (D) by striking ``and''
                          at the end;
                              (iii) in subparagraph (E) by striking the
                          period and inserting a semicolon; and
                              (iv) by adding at the end the following:
                        ``(F) activities carried out by the National Highway
                    Institute under subsection (a); and
                        ``(G) local technical assistance programs under
                    subsection (b).''; and
                        (B) in paragraph (2) by inserting ``, except for
                    activities carried out under paragraph (1)(G), for which
                    the Federal share shall be 50 percent'' before the
                    period at the end;
                (5) in subsection (f) in the heading, by striking ``Pilot'';
                (6) in subsection (g)(4)(F) by striking ``excellence'' and
            inserting ``stewardship''; and
                (7) by adding at the end the following:

        ``(h) Centers for Surface Transportation Excellence.--
                ``(1) <<NOTE: Grants.>> In general.--The Secretary shall
            make grants under this section to establish and maintain centers
            for surface transportation excellence.
                ``(2) Goals.--The goals of a center referred to in paragraph
            (1) shall be to promote and support strategic national surface
            transportation programs and activities relating to the work of
            State departments of transportation in the areas of environment,
            surface transportation safety, rural safety, and project
            finance.
                ``(3) Role of the centers.--To achieve the goals set forth
            in paragraph (2), any centers established under paragraph (1)
            shall provide technical assistance, information sharing of best
            practices, and training in the use of tools and decisionmaking
            processes that can assist States in effectively implementing
            surface transportation programs, projects, and policies.
                ``(4) Program administration.--
                        ``(A) <<NOTE: Contracts. Grants.>> Competition.--A
                    party entering into a contract, cooperative agreement,
                    or other transaction with the Secretary under this
                    subsection, or receiving a grant to perform research or
                    provide technical assistance under this subsection,
                    shall be selected on a competitive basis.
                        ``(B) Strategic plan.--The Secretary shall require
                    each center to develop a multiyear strategic plan,
                    that--
                              ``(i) is submitted to the Secretary at such
                          time as the Secretary requires; and
                              ``(ii) describes--
                                        ``(I) the activities to be
                                    undertaken by the center; and
                                        ``(II) how the work of the center
                                    will be coordinated with the activities
                                    of the Federal Highway Administration
                                    and the various other research,

    [[Page 126 STAT. 882]]

                                    development, and technology transfer
                                    activities authorized under this
                                    chapter.''.
    SEC. 52005. STATE PLANNING AND RESEARCH.

        Section 505 of title 23, United States Code, is amended--
                (1) in subsection (a)--
                        (A) in the matter preceding paragraph (1) by
                    striking ``section 104 (other than sections 104(f) and
                    104(h)) and under section 144'' and inserting
                    ``paragraphs (1) through (4) of section 104(b)''; and
                        (B) in paragraph (3) by striking ``under section
                    303'' and inserting ``, plans, and processes under
                    sections 119, 148, 149, and 167'';
                (2) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively;
                (3) by inserting after subsection (b) the following:

        ``(c) Implementation of Future Strategic Highway Research Program
    Findings and Results.--
                ``(1) Funds.--A State shall make available to the Secretary
            to carry out section 503(c)(2)(C) a percentage of funds subject
            to subsection (a) that are apportioned to that State, that is
            agreed to by \3/4\ of States for each of fiscal years 2013 and
            2014.
                ``(2) Treatment of funds.--Funds expended under paragraph
            (1) shall not be considered to be part of the extramural budget
            of the agency for the purpose of section 9 of the Small Business
            Act (15 U.S.C. 638).''; and
                (4) in subsection (e) (as so redesignated) by striking
            ``section 118(b)(2)'' and inserting ``section 118(b)''.
    SEC. 52006. INTERNATIONAL HIGHWAY TRANSPORTATION PROGRAM.

        (a) <<NOTE: Repeal.>> In General.--Section 506 of title 23, United
    States Code, is repealed.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by striking the item relating to section
    506.
    SEC. 52007. SURFACE TRANSPORTATION ENVIRONMENTAL COOPERATIVE
                                RESEARCH PROGRAM.

        (a) <<NOTE: Repeal.>> In General.--Section 507 of title 23, United
    States Code, is repealed.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by striking the item relating to section
    507.
    SEC. 52008. NATIONAL COOPERATIVE FREIGHT RESEARCH.

        (a) <<NOTE: Repeal.>>  In General.--Section 509 of title 23, United
    States Code, is repealed.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by striking the item relating to section
    509.
    SEC. 52009. UNIVERSITY TRANSPORTATION CENTERS PROGRAM.

        (a) In General.--Section 5505 of title 49, United States Code, is
    amended to read as follows:
    ``Sec. 5505. <<NOTE: Grants.>> University transportation centers
                      program

        ``(a) University Transportation Centers Program.--

    [[Page 126 STAT. 883]]

                ``(1) Establishment and operation.--The Secretary shall make
            grants under this section to eligible nonprofit institutions of
            higher education to establish and operate university
            transportation centers.
                ``(2) Role of centers.--The role of each university
            transportation center referred to in paragraph (1) shall be--
                        ``(A) to advance transportation expertise and
                    technology in the varied disciplines that comprise the
                    field of transportation through education, research, and
                    technology transfer activities;
                        ``(B) to provide for a critical transportation
                    knowledge base outside of the Department of
                    Transportation; and
                        ``(C) to address critical workforce needs and
                    educate the next generation of transportation leaders.

        ``(b) Competitive Selection Process.--
                ``(1) Applications.--To receive a grant under this section,
            a nonprofit institution of higher education shall submit to the
            Secretary an application that is in such form and contains such
            information as the Secretary may require.
                ``(2) Restriction.--A nonprofit institution of higher
            education or the lead institution of a consortium of nonprofit
            institutions of higher education, as applicable, that receives a
            grant for a national transportation center or a regional
            transportation center in a fiscal year shall not be eligible to
            receive as a lead institution or member of a consortium an
            additional grant in that fiscal year for a national
            transportation center or a regional transportation center.
                ``(3) Coordination.--The Secretary shall solicit grant
            applications for national transportation centers, regional
            transportation centers, and Tier 1 university transportation
            centers with identical advertisement schedules and deadlines.
                ``(4) General selection criteria.--
                        ``(A) In general.--Except as otherwise provided by
                    this section, the Secretary shall award grants under
                    this section in nonexclusive candidate topic areas
                    established by the Secretary that address the research
                    priorities identified in section 503 of title 23.
                        ``(B) <<NOTE: Assessment.>> Criteria.--The
                    Secretary, in consultation as appropriate with the
                    Administrators of the Federal Highway Administration and
                    the Federal Transit Administration, shall select each
                    recipient of a grant under this section through a
                    competitive process based on the assessment of the
                    Secretary relating to--
                              ``(i) the demonstrated ability of the
                          recipient to address each specific topic area
                          described in the research and strategic plans of
                          the recipient;
                              ``(ii) the demonstrated research, technology
                          transfer, and education resources available to the
                          recipient to carry out this section;
                              ``(iii) the ability of the recipient to
                          provide leadership in solving immediate and long-
                          range national and regional transportation
                          problems;
                              ``(iv) the ability of the recipient to carry
                          out research, education, and technology transfer
                          activities that are multimodal and
                          multidisciplinary in scope;

    [[Page 126 STAT. 884]]

                              ``(v) the demonstrated commitment of the
                          recipient to carry out transportation workforce
                          development programs through--
                                        ``(I) degree-granting programs; and
                                        ``(II) outreach activities to
                                    attract new entrants into the
                                    transportation field;
                              ``(vi) the demonstrated ability of the
                          recipient to disseminate results and spur the
                          implementation of transportation research and
                          education programs through national or statewide
                          continuing education programs;
                              ``(vii) the demonstrated commitment of the
                          recipient to the use of peer review principles and
                          other research best practices in the selection,
                          management, and dissemination of research
                          projects;
                              ``(viii) the strategic plan submitted by the
                          recipient describing the proposed research to be
                          carried out by the recipient and the performance
                          metrics to be used in assessing the performance of
                          the recipient in meeting the stated research,
                          technology transfer, education, and outreach
                          goals; and
                              ``(ix) the ability of the recipient to
                          implement the proposed program in a cost-efficient
                          manner, such as through cost sharing and overall
                          reduced overhead, facilities, and administrative
                          costs.
                ``(5) Transparency.--
                        ``(A) In general.--The Secretary shall provide to
                    each applicant, upon request, any materials, including
                    copies of reviews (with any information that would
                    identify a reviewer redacted), used in the evaluation
                    process of the proposal of the applicant.
                        ``(B) Reports.--The Secretary shall submit to the
                    Committees on Transportation and Infrastructure and
                    Science, Space, and Technology of the House of
                    Representatives and the Committee on Environment and
                    Public Works of the Senate a report describing the
                    overall review process under paragraph (3) that
                    includes--
                              ``(i) specific criteria of evaluation used in
                          the review;
                              ``(ii) descriptions of the review process; and
                              ``(iii) explanations of the selected awards.
                ``(6) <<NOTE: Consultation. Evaluation. Review.>> Outside
            stakeholders.--The Secretary shall, to the maximum extent
            practicable, consult external stakeholders such as the
            Transportation Research Board of the National Academy of
            Sciences to evaluate and competitively review all proposals.

        ``(c) Grants.--
                ``(1) <<NOTE: Deadline.>> In general.--Not later than 1 year
            after the date of enactment of the Transportation Research and
            Innovative Technology Act of 2012, the Secretary, in
            consultation as appropriate with the Administrators of the
            Federal Highway Administration and the Federal Transit
            Administration, shall select grant recipients under subsection
            (b) and make grant amounts available to the selected recipients.
                ``(2) National transportation centers.--
                        ``(A) In general.--Subject to subparagraph (B), the
                    Secretary shall provide grants to 5 recipients that the

    [[Page 126 STAT. 885]]

                    Secretary determines best meet the criteria described in
                    subsection (b)(3).
                        ``(B) Restrictions.--
                              ``(i) In general.--For each fiscal year, a
                          grant made available under this paragraph shall be
                          $3,000,000 per recipient.
                              ``(ii) <<NOTE: Determination.>> Focused
                          research.--The grant recipients under this
                          paragraph shall focus research on national
                          transportation issues, as determined by the
                          Secretary.
                        ``(C) Matching requirement.--
                              ``(i) In general.--As a condition of receiving
                          a grant under this paragraph, a grant recipient
                          shall match 100 percent of the amounts made
                          available under the grant.
                              ``(ii) Sources.--The matching amounts referred
                          to in clause (i) may include amounts made
                          available to the recipient under section 504(b) or
                          505 of title 23.
                ``(3) Regional university transportation centers.--
                        ``(A) Location of regional centers.--One regional
                    university transportation center shall be located in
                    each of the 10 Federal regions that comprise the
                    Standard Federal Regions established by the Office of
                    Management and Budget in the document entitled `Standard
                    Federal Regions' and dated April, 1974 (circular A-105).
                        ``(B) Selection criteria.--In conducting a
                    competition under subsection (b), the Secretary shall
                    provide grants to 10 recipients on the basis of--
                              ``(i) the criteria described in subsection
                          (b)(3);
                              ``(ii) the location of the center within the
                          Federal region to be served; and
                              ``(iii) whether the institution (or, in the
                          case of consortium of institutions, the lead
                          institution) demonstrates that the institution has
                          a well-established, nationally recognized program
                          in transportation research and education, as
                          evidenced by--
                                        ``(I) recent expenditures by the
                                    institution in highway or public
                                    transportation research;
                                        ``(II) a historical track record of
                                    awarding graduate degrees in
                                    professional fields closely related to
                                    highways and public transportation; and
                                        ``(III) an experienced faculty who
                                    specialize in professional fields
                                    closely related to highways and public
                                    transportation.
                        ``(C) Restrictions.--For each fiscal year, a grant
                    made available under this paragraph shall be $2,750,000
                    for each recipient.
                        ``(D) Matching requirements.--
                              ``(i) In general.--As a condition of receiving
                          a grant under this paragraph, a grant recipient
                          shall match 100 percent of the amounts made
                          available under the grant.
                              ``(ii) Sources.--The matching amounts referred
                          to in the clause (i) may include amounts made
                          available to the recipient under section 504(b) or
                          505 of title 23.
                        ``(E) Focused research.--The Secretary shall make a
                    grant to 1 of the 10 regional university transportation

    [[Page 126 STAT. 886]]

                    centers established under this paragraph for the purpose
                    of furthering the objectives described in subsection
                    (a)(2) in the field of comprehensive transportation
                    safety.
                ``(4) Tier 1 university transportation centers.--
                        ``(A) In general.--The Secretary shall provide
                    grants of $1,500,000 each to not more than 20 recipients
                    to carry out this paragraph.
                        ``(B) Restriction.--A lead institution of a
                    consortium that receives a grant under paragraph (2) or
                    (3) shall not be eligible to receive a grant under this
                    paragraph.
                        ``(C) Matching requirement.--
                              ``(i) In general.--Subject to clause (iii), as
                          a condition of receiving a grant under this
                          paragraph, a grant recipient shall match 50
                          percent of the amounts made available under the
                          grant.
                              ``(ii) Sources.--The matching amounts referred
                          to in clause (i) may include amounts made
                          available to the recipient under section 504(b) or
                          505 of title 23.
                              ``(iii) Exemption.--This subparagraph shall
                          not apply on a demonstration of financial hardship
                          by the applicant institution.
                        ``(D) Focused research.--In awarding grants under
                    this paragraph, consideration shall be given to minority
                    institutions, as defined by section 365 of the Higher
                    Education Act of 1965 (20 U.S.C. 1067k), or consortia
                    that include such institutions that have demonstrated an
                    ability in transportation-related research.

        ``(d) Program Coordination.--
                ``(1) In general.--The Secretary shall--
                        ``(A) coordinate the research, education, and
                    technology transfer activities carried out by grant
                    recipients under this section; and
                        ``(B) disseminate the results of that research
                    through the establishment and operation of an
                    information clearinghouse.
                ``(2) Annual review and evaluation.--Not less frequently
            than annually, and consistent with the plan developed under
            section 508 of title 23, the Secretary shall--
                        ``(A) review and evaluate the programs carried out
                    under this section by grant recipients; and
                        ``(B) <<NOTE: Reports.>>  submit to the Committees
                    on Transportation and Infrastructure and Science, Space,
                    and Technology of the House of Representatives and the
                    Committee on Environment and Public Works of the Senate
                    a report describing that review and evaluation.
                ``(3) Program evaluation and oversight.--For each of fiscal
            years 2013 and 2014, the Secretary shall expend not more than
            1\1/2\ percent of the amounts made available to the Secretary to
            carry out this section for any coordination, evaluation, and
            oversight activities of the Secretary under this section.

        ``(e) <<NOTE: Time period.>>  Limitation on Availability of
    Amounts.--Amounts made available to the Secretary to carry out this
    section shall remain available for obligation by the Secretary for a
    period of 3 years after the last day of the fiscal year for which the
    amounts are appropriated.

        ``(f) Information Collection.--Any survey, questionnaire, or
    interview that the Secretary determines to be necessary to carry

    [[Page 126 STAT. 887]]

    out reporting requirements relating to any program assessment or
    evaluation activity under this section, including customer satisfaction
    assessments, shall not be subject to chapter 35 of title 44.''.
        (b) Conforming Amendment.--The analysis for chapter 55 of title 49,
    United States Code, is amended by striking the item relating to section
    5505 and inserting the following:

    ``5505. University transportation centers program.''.

    SEC. 52010. UNIVERSITY TRANSPORTATION RESEARCH.

        (a) <<NOTE: Repeal.>>  In General.--Section 5506 of title 49, United
    States Code, is repealed.

        (b) Conforming Amendment.--The analysis for chapter 55 of title 49,
    United States Code, is amended by striking the item relating to section
    5506.
    SEC. 52011. BUREAU OF TRANSPORTATION STATISTICS.

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

                ``CHAPTER 63--BUREAU OF TRANSPORTATION STATISTICS

    ``Sec.
    ``6301. Definitions.
    ``6302. Bureau of Transportation Statistics.
    ``6303. Intermodal transportation database.
    ``6304. National Transportation Library.
    ``6305. Advisory council on transportation statistics.
    ``6306. Transportation statistical collection, analysis, and
               dissemination.
    ``6307. Furnishing of information, data, or reports by Federal agencies.
    ``6308. Proceeds of data product sales.
    ``6309. National transportation atlas database.
    ``6310. Limitations on statutory construction.
    ``6311. Research and development grants.
    ``6312. Transportation statistics annual report.
    ``6313. Mandatory response authority for freight data collection.

    ``Sec. 6301. Definitions

        ``In this chapter, the following definitions apply:
                ``(1) Bureau.--The term `Bureau' means the Bureau of
            Transportation Statistics established by section 6302(a).
                ``(2) Department.--The term `Department' means the
            Department of Transportation.
                ``(3) Director.--The term `Director' means the Director of
            the Bureau.
                ``(4) Library.--The term `Library' means the National
            Transportation Library established by section 6304(a).
                ``(5) Secretary.--The term `Secretary' means the Secretary
            of Transportation.
    ``Sec. 6302. Bureau of Transportation Statistics

        ``(a) Establishment.--There is established in the Research and
    Innovative Technology Administration the Bureau of Transportation
    Statistics.
        ``(b) Director.--
                ``(1) Appointment.--The Bureau shall be headed by a
            Director, who shall be appointed in the competitive service by
            the Secretary.
                ``(2) Qualifications.--The Director shall be appointed from
            among individuals who are qualified to serve as the Director

    [[Page 126 STAT. 888]]

            by virtue of their training and experience in the collection,
            analysis, and use of transportation statistics.
                ``(3) Duties.--
                        ``(A) In general.--The Director shall--
                              ``(i) serve as the senior advisor to the
                          Secretary on data and statistics; and
                              ``(ii) be responsible for carrying out the
                          duties described in subparagraph (B).
                        ``(B) Duties.--The Director shall--
                              ``(i) ensure that the statistics compiled
                          under clause (vi) are designed to support
                          transportation decisionmaking by--
                                        ``(I) the Federal Government;
                                        ``(II) State and local governments;
                                        ``(III) metropolitan planning
                                    organizations;
                                        ``(IV) transportation-related
                                    associations;
                                        ``(V) the private sector, including
                                    the freight community; and
                                        ``(VI) the public;
                              ``(ii) establish on behalf of the Secretary a
                          program--
                                        ``(I) to effectively integrate
                                    safety data across modes; and
                                        ``(II) to address gaps in existing
                                    safety data programs of the Department;
                              ``(iii) work with the operating
                          administrations of the Department--
                                        ``(I) to establish and implement the
                                    data programs of the Bureau; and
                                        ``(II) to improve the coordination
                                    of information collection efforts with
                                    other Federal agencies;
                              ``(iv) continually improve surveys and data
                          collection methods of the Department to improve
                          the accuracy and utility of transportation
                          statistics;
                              ``(v) encourage the standardization of data,
                          data collection methods, and data management and
                          storage technologies for data collected by--
                                        ``(I) the Bureau;
                                        ``(II) the operating administrations
                                    of the Department;
                                        ``(III) State and local governments;
                                        ``(IV) metropolitan planning
                                    organizations; and
                                        ``(V) private sector entities;
                              ``(vi) collect, compile, analyze, and publish
                          a comprehensive set of transportation statistics
                          on the performance and impacts of the national
                          transportation system, including statistics on--
                                        ``(I) transportation safety across
                                    all modes and intermodally;
                                        ``(II) the state of good repair of
                                    United States transportation
                                    infrastructure;
                                        ``(III) the extent, connectivity,
                                    and condition of the transportation
                                    system, building on the national
                                    transportation atlas database developed
                                    under section 6310;
                                        ``(IV) economic efficiency across
                                    the entire transportation sector;

    [[Page 126 STAT. 889]]

                                        ``(V) the effects of the
                                    transportation system on global and
                                    domestic economic competitiveness;
                                        ``(VI) demographic, economic, and
                                    other variables influencing travel
                                    behavior, including choice of
                                    transportation mode and goods movement;
                                        ``(VII) transportation-related
                                    variables that influence the domestic
                                    economy and global competitiveness;
                                        ``(VIII) economic costs and impacts
                                    for passenger travel and freight
                                    movement;
                                        ``(IX) intermodal and multimodal
                                    passenger movement;
                                        ``(X) intermodal and multimodal
                                    freight movement; and
                                        ``(XI) consequences of
                                    transportation for the human and natural
                                    environment;
                              ``(vii) <<NOTE: Dissemination.>>  build and
                          disseminate the transportation layer of the
                          National Spatial Data Infrastructure developed
                          under Executive Order 12906 (59 Fed. Reg. 17671)
                          (or a successor Executive Order), including by
                          coordinating the development of transportation
                          geospatial data standards, compiling intermodal
                          geospatial data, and collecting geospatial data
                          that is not being collected by other entities;
                              ``(viii) <<NOTE: Guidelines.>>  issue
                          guidelines for the collection of information by
                          the Department that the Director determines
                          necessary to develop transportation statistics and
                          carry out modeling, economic assessment, and
                          program assessment activities to ensure that such
                          information is accurate, reliable, relevant,
                          uniform, and in a form that permits systematic
                          analysis by the Department;
                              ``(ix) <<NOTE: Review. Reports.>>  review and
                          report to the Secretary on the sources and
                          reliability of--
                                        ``(I) the statistics proposed by the
                                    heads of the operating administrations
                                    of the Department to measure outputs and
                                    outcomes as required by the Government
                                    Performance and Results Act of 1993
                                    (Public Law 103-62;107 Stat. 285); and
                                        ``(II) at the request of the
                                    Secretary, any other data collected or
                                    statistical information published by the
                                    heads of the operating administrations
                                    of the Department; and
                              ``(x) ensure that the statistics published
                          under this section are readily accessible to the
                          public, consistent with applicable security
                          constraints and confidentiality interests.

        ``(c) Access to Federal Data.--In carrying out subsection
    (b)(3)(B)(ii), the Director shall be given access to all safety data
    that the Director determines necessary to carry out that subsection that
    is held by the Department or any other Federal agency upon written
    request and subject to any statutory or regulatory restrictions.

    [[Page 126 STAT. 890]]

    ``Sec. 6303. Intermodal transportation database

        ``(a) In General.--In consultation with the Under Secretary
    Transportation for Policy, the Assistant Secretaries of the Department,
    and the heads of the operating administrations of the Department, the
    Director shall establish and maintain a transportation database for all
    modes of transportation.
        ``(b) Use.--The database established under this section shall be
    suitable for analyses carried out by the Federal Government, the States,
    and metropolitan planning organizations.
        ``(c) Contents.--The database established under this section shall
    include--
                ``(1) information on the volumes and patterns of movement of
            goods, including local, interregional, and international
            movement, by all modes of transportation, intermodal
            combinations, and relevant classification;
                ``(2) information on the volumes and patterns of movement of
            people, including local, interregional, and international
            movements, by all modes of transportation (including bicycle and
            pedestrian modes), intermodal combinations, and relevant
            classification;
                ``(3) information on the location and connectivity of
            transportation facilities and services; and
                ``(4) a national accounting of expenditures and capital
            stocks on each mode of transportation and intermodal
            combination.
    ``Sec. 6304. National Transportation Library

        ``(a) Purpose and Establishment.--To support the information
    management and decisionmaking needs of transportation officials at the
    Federal, State, and local levels, there is established in the Bureau a
    National Transportation Library which shall--
                ``(1) be headed by an individual who is highly qualified in
            library and information science;
                ``(2) acquire, preserve, and manage transportation
            information and information products and services for use by the
            Department, other Federal agencies, and the general public;
                ``(3) provide reference and research assistance;
                ``(4) serve as a central depository for research results and
            technical publications of the Department;
                ``(5) provide a central clearinghouse for transportation
            data and information of the Federal Government;
                ``(6) serve as coordinator and policy lead for
            transportation information access;
                ``(7) provide transportation information and information
            products and services to--
                        ``(A) the Department;
                        ``(B) other Federal agencies;
                        ``(C) public and private organizations; and
                        ``(D) individuals, within the United States and
                    internationally;
                ``(8) coordinate efforts among, and cooperate with,
            transportation libraries, information providers, and technical
            assistance centers, in conjunction with private industry and
            other transportation library and information centers, with the
            goal of developing a comprehensive transportation information
            and knowledge network that supports the activities described in
            section 6302(b)(3)(B)(vi); and

    [[Page 126 STAT. 891]]

                ``(9) engage in such other activities as the Director
            determines to be necessary and as the resources of the Library
            permit.

        ``(b) Access.--The Director shall publicize, facilitate, and promote
    access to the information products and services described in subsection
    (a), to improve the ability of the transportation community to share
    information and the ability of the Director to make statistics and other
    information readily accessible as required under section
    6302(b)(3)(B)(x).
        ``(c) Agreements.--
                ``(1) In general.--To carry out this section, the Director
            may enter into agreements with, award grants to, and receive
            amounts from, any--
                        ``(A) State or local government;
                        ``(B) organization;
                        ``(C) business; or
                        ``(D) individual.
                ``(2) Contracts, grants, and agreements.--The Library may
            initiate and support specific information and data management,
            access, and exchange activities in connection with matters
            relating to the Department's strategic goals, knowledge
            networking, and national and international cooperation, by
            entering into contracts or other agreements or awarding grants
            for the conduct of such activities.
                ``(3) Amounts.--Any amounts received by the Library as
            payment for library products and services or other activities
            shall be made available to the Director to carry out this
            section, deposited in the Research and Innovative Technology
            Administration's general fund account, and remain available
            until expended.
    ``Sec. 6305. Advisory council on transportation statistics

        ``(a) <<NOTE: Establishment. Consultation.>> In General.--The
    Director shall establish and consult with an advisory council on
    transportation statistics.

        ``(b) Function.--The advisory council established under this section
    shall advise the Director on--
                ``(1) the quality, reliability, consistency, objectivity,
            and relevance of transportation statistics and analyses
            collected, supported, or disseminated by the Bureau and the
            Department; and
                ``(2) methods to encourage cooperation and interoperability
            of transportation data collected by the Bureau, the operating
            administrations of the Department, States, local governments,
            metropolitan planning organizations, and private sector
            entities.

        ``(c) Membership.--
                ``(1) In general.--The advisory council shall be composed of
            not fewer than 9 and not more than 11 members appointed by the
            Director.
                ``(2) Selection.--In selecting members for the advisory
            council, the Director shall appoint individuals who--
                        ``(A) are not officers or employees of the United
                    States;
                        ``(B) possess expertise in--
                              ``(i) transportation data collection,
                          analysis, or application;
                              ``(ii) economics; or
                              ``(iii) transportation safety; and

    [[Page 126 STAT. 892]]

                        ``(C) represent a cross section of transportation
                    stakeholders, to the greatest extent possible.

        ``(d) Terms of Appointment.--
                ``(1) In general.--Except as provided in paragraph (2),
            members of the advisory council shall be appointed to staggered
            terms not to exceed 3 years.
                ``(2) Additional terms.--A member may be renominated for 1
            additional 3-year term.
                ``(3) Current members.--A member serving on an advisory
            council on transportation statistics on the day before the date
            of enactment of the Transportation Research and Innovative
            Technology Act of 2012 shall serve until the end of the
            appointed term of the member.

        ``(e) Applicability of Federal Advisory Committee Act.--The Federal
    Advisory Committee Act (5 U.S.C. App.) shall apply to the advisory
    council established under this section, except that section 14 of that
    Act shall not apply.
    ``Sec. 6306. Transportation statistical collection, analysis, and
                      dissemination

        ``To ensure that all transportation statistical collection,
    analysis, and dissemination is carried out in a coordinated manner, the
    Director may--
                ``(1) use the services, equipment, records, personnel,
            information, and facilities of other Federal agencies, or State,
            local, and private agencies and instrumentalities, subject to
            the conditions that the applicable agency or instrumentality
            consents to that use and with or without reimbursement for such
            use;
                ``(2) enter into agreements with the agencies and
            instrumentalities described in paragraph (1) for purposes of
            data collection and analysis;
                ``(3) confer and cooperate with foreign governments,
            international organizations, and State, municipal, and other
            local agencies;
                ``(4) request such information, data, and reports from any
            Federal agency as the Director determines necessary to carry out
            this chapter;
                ``(5) encourage replication, coordination, and sharing of
            information among transportation agencies regarding information
            systems, information policy, and data; and
                ``(6) confer and cooperate with Federal statistical agencies
            as the Director determines necessary to carry out this chapter,
            including by entering into cooperative data sharing agreements
            in conformity with all laws and regulations applicable to the
            disclosure and use of data.
    ``Sec. 6307. Furnishing of information, data, or reports by
                      Federal agencies

        ``(a) In General.--Except as provided in subsection (b), a Federal
    agency requested to furnish information, data, or reports by the
    Director under section 6302(b)(3)(B) shall provide the information to
    the Director.
        ``(b) Prohibition on Certain Disclosures.--
                ``(1) In general.--An officer, employee, or contractor of
            the Bureau may not--

    [[Page 126 STAT. 893]]

                        ``(A) make any disclosure in which the data provided
                    by an individual or organization under section
                    6302(b)(3)(B) can be identified;
                        ``(B) use the information provided under section
                    6302(b)(3)(B) for a nonstatistical purpose; or
                        ``(C) permit anyone other than an individual
                    authorized by the Director to examine any individual
                    report provided under section 6302(b)(3)(B).
                ``(2) Copies of reports.--
                        ``(A) In general.--No department, bureau, agency,
                    officer, or employee of the United States (except the
                    Director in carrying out this chapter) may require, for
                    any reason, a copy of any report that has been filed
                    under section 6302(b)(3)(B) with the Bureau or retained
                    by an individual respondent.
                        ``(B) Limitation on judicial proceedings.--A copy of
                    a report described in subparagraph (A) that has been
                    retained by an individual respondent or filed with the
                    Bureau or any of the employees, contractors, or agents
                    of the Bureau--
                              ``(i) shall be immune from legal process; and
                              ``(ii) shall not, without the consent of the
                          individual concerned, be admitted as evidence or
                          used for any purpose in any action, suit, or other
                          judicial or administrative proceedings.
                        ``(C) Applicability.--This paragraph shall apply
                    only to reports that permit information concerning an
                    individual or organization to be reasonably determined
                    by direct or indirect means.
                ``(3) Informing respondent of use of data.--If the Bureau is
            authorized by statute to collect data or information for a
            nonstatistical purpose, the Director shall clearly distinguish
            the collection of the data or information, by rule and on the
            collection instrument, in a manner that informs the respondent
            who is requested or required to supply the data or information
            of the nonstatistical purpose.

        ``(c) Transportation and Transportation-related Data Access.--The
    Director shall be provided access to any transportation and
    transportation-related information in the possession of any Federal
    agency, except--
                ``(1) information that is expressly prohibited by law from
            being disclosed to another Federal agency; or
                ``(2) information that the agency possessing the information
            determines could not be disclosed without significantly
            impairing the discharge of authorities and responsibilities
            which have been delegated to, or vested by law, in such agency.
    ``Sec. 6308. Proceeds of data product sales

        ``Notwithstanding section 3302 of title 31, amounts received by the
    Bureau from the sale of data products for necessary expenses incurred
    may be credited to the Highway Trust Fund (other than the Mass Transit
    Account) for the purpose of reimbursing the Bureau for those expenses.

    [[Page 126 STAT. 894]]

    ``Sec. 6309. National transportation atlas database

        ``(a) In General.--The Director shall develop and maintain a
    national transportation atlas database that is comprised of geospatial
    databases that depict--
                ``(1) transportation networks;
                ``(2) flows of people, goods, vehicles, and craft over the
            transportation networks; and
                ``(3) social, economic, and environmental conditions that
            affect or are affected by the transportation networks.

        ``(b) Intermodal Network Analysis.--The databases referred to in
    subsection (a) shall be capable of supporting intermodal network
    analysis.
    ``Sec. 6310. Limitations on statutory construction

        ``Nothing in this chapter--
                ``(1) authorizes the Bureau to require any other Federal
            agency to collect data; or
                ``(2) alters or diminishes the authority of any other
            officer of the Department to collect and disseminate data
            independently.
    ``Sec. 6311. Research and development grants

        ``The Secretary may make grants to, or enter into cooperative
    agreements or contracts with, public and nonprofit private entities
    (including State transportation departments, metropolitan planning
    organizations, and institutions of higher education) for--
                ``(1) investigation of the subjects described in section
            6302(b)(3)(B)(vi);
                ``(2) research and development of new methods of data
            collection, standardization, management, integration,
            dissemination, interpretation, and analysis;
                ``(3) demonstration programs by States, local governments,
            and metropolitan planning organizations to coordinate data
            collection, reporting, management, storage, and archiving to
            simplify data comparisons across jurisdictions;
                ``(4) development of electronic clearinghouses of
            transportation data and related information, as part of the
            Library; and
                ``(5) development and improvement of methods for sharing
            geographic data, in support of the database under section 6310
            and the National Spatial Data Infrastructure developed under
            Executive Order 12906 (59 Fed. Reg. 17671) (or a successor
            Executive Order).
    ``Sec. 6312. Transportation statistics annual report

        ``The Director shall submit to the President and Congress a
    transportation statistics annual report, which shall include--
                ``(1) information on the progress of the Director in
            carrying out the duties described in section 6302(b)(3)(B);
                ``(2) documentation of the methods used to obtain and ensure
            the quality of the statistics presented in the report; and
                ``(3) any recommendations of the Director for improving
            transportation statistical information.

    [[Page 126 STAT. 895]]

    ``Sec. 6313. Mandatory response authority for freight data
                      collection

        ``(a) Freight Data Collection.--
                ``(1) In general.--An owner, official, agent, person in
            charge, or assistant to the person in charge of a freight
            corporation, company, business, institution, establishment, or
            organization described in paragraph (2) shall be fined in
            accordance with subsection (b) if that individual neglects or
            refuses, when requested by the Director or other authorized
            officer, employee, or contractor of the Bureau to submit data
            under section 6302(b)(3)(B)--
                        ``(A) to answer completely and correctly to the best
                    knowledge of that individual all questions relating to
                    the corporation, company, business, institution,
                    establishment, or other organization; or
                        ``(B) to make available records or statistics in the
                    official custody of the individual.
                ``(2) Description of entities.--A freight corporation,
            company, business, institution, establishment, or organization
            referred to in paragraph (1) is a corporation, company,
            business, institution, establishment, or organization that--
                        ``(A) receives Federal funds relating to the freight
                    program; and
                        ``(B) has consented to be subject to a fine under
                    this subsection on--
                              ``(i) refusal to supply any data requested; or
                              ``(ii) failure to respond to a written
                          request.

        ``(b) Fines.--
                ``(1) In general.--Subject to paragraph (2), an individual
            described in subsection (a) shall be fined not more than $500.
                ``(2) Willful actions.--If an individual willfully gives a
            false answer to a question described in subsection (a)(1), the
            individual shall be fined not more than $10,000.''.

        (b) <<NOTE: Applicability. 49 USC 6301 note.>> Rules of
    Construction.--If the provisions of section 111 of title 49, United
    States Code, are transferred to chapter 63 of that title, the following
    rules of construction apply:
                (1) For purposes of determining whether 1 provision of law
            supersedes another based on enactment later in time, a chapter
            63 provision is deemed to have been enacted on the date of
            enactment of the corresponding section 111 provision.
                (2) A reference to a section 111 provision, including a
            reference in a regulation, order, or other law, is deemed to
            refer to the corresponding chapter 63 provision.
                (3) A regulation, order, or other administrative action in
            effect under a section 111 provision continues in effect under
            the corresponding chapter 63 provision.
                (4) An action taken or an offense committed under a section
            111 provision is deemed to have been taken or committed under
            the corresponding chapter 63 provision.

        (c) Conforming Amendments.--
                (1) Repeal.--Section 111 of title 49, United States Code, is
            repealed, and the item relating to section 111 in the analysis
            for chapter 1 of that title is deleted.
                (2) Analysis for subtitle iii.--The analysis for subtitle
            III of title 49, United States Code, is amended by inserting
            after the items for chapter 61 the following:

    [[Page 126 STAT. 896]]

              ``Chapter 63--Bureau of Transportation Statistics.''.

    SEC. 52012. ADMINISTRATIVE AUTHORITY.

        Section 112 of title 49, United States Code, is amended by adding at
    the end the following:
        ``(f) Program Evaluation and Oversight.--For each of fiscal years
    2013 and 2014, the Administrator is authorized to expend not more than
    1\1/2\ percent of the amounts authorized to be appropriated for
    necessary expenses for administration and operations of the Research and
    Innovative Technology Administration for the coordination, evaluation,
    and oversight of the programs administered by the Administration.
        ``(g) Collaborative Research and Development.--
                ``(1) In general.--To encourage innovative solutions to
            multimodal transportation problems and stimulate the deployment
            of new technology, the Administrator may carry out, on a cost-
            shared basis, collaborative research and development with--
                        ``(A) non-Federal entities, including State and
                    local governments, foreign governments, institutions of
                    higher education, corporations, institutions,
                    partnerships, sole proprietorships, and trade
                    associations that are incorporated or established under
                    the laws of any State;
                        ``(B) Federal laboratories; and
                        ``(C) other Federal agencies.
                ``(2) Cooperation, grants, contracts, and agreements.--
            Notwithstanding any other provision of law, the Administrator
            may directly initiate contracts, grants, cooperative research
            and development agreements (as defined in section 12 of the
            Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
            3710a)), and other agreements to fund, and accept funds from,
            the Transportation Research Board of the National Research
            Council of the National Academy of Sciences, State departments
            of transportation, cities, counties, institutions of higher
            education, associations, and the agents of those entities to
            carry out joint transportation research and technology efforts.
                ``(3) Federal share.--
                        ``(A) In general.--Subject to subparagraph (B), the
                    Federal share of the cost of an activity carried out
                    under paragraph (2) shall not exceed 50 percent.
                        ``(B) Exception.--If the Secretary determines that
                    the activity is of substantial public interest or
                    benefit, the Secretary may approve a greater Federal
                    share.
                        ``(C) Non-federal share.--All costs directly
                    incurred by the non-Federal partners, including
                    personnel, travel, facility, and hardware development
                    costs, shall be credited toward the non-Federal share of
                    the cost of an activity described in subparagraph (A).
                ``(4) Use of technology.--The research, development, or use
            of a technology under a contract, grant, cooperative research
            and development agreement, or other agreement entered into under
            this subsection, including the terms under which the technology
            may be licensed and the resulting royalties may be distributed,
            shall be subject to the Stevenson-Wydler Technology Innovation
            Act of 1980 (15 U.S.C. 3701 et seq.).

    [[Page 126 STAT. 897]]

                ``(5) Waiver of advertising requirements.--Section 6101 of
            title 41 shall not apply to a contract, grant, or other
            agreement entered into under this section.''.
    SEC. 52013. TRANSPORTATION RESEARCH AND DEVELOPMENT STRATEGIC
                                PLANNING.

        Section 508(a) of title 23, United States Code, is amended--
                (1) in paragraph (1), by striking ``SAFETEA-LU'' and
            inserting ``Transportation Research and Innovative Technology
            Act of 2012''; and
                (2) in paragraph (2), by striking subparagraph (A) and
            inserting the following:
                        ``(A) describe the primary purposes of the
                    transportation research and development program, which
                    shall include, at a minimum--
                              ``(i) promoting safety;
                              ``(ii) reducing congestion and improving
                          mobility;
                              ``(iii) preserving the environment;
                              ``(iv) preserving the existing transportation
                          system;
                              ``(v) improving the durability and extending
                          the life of transportation infrastructure; and
                              ``(vi) improving goods movement.''.

             TITLE III--INTELLIGENT TRANSPORTATION SYSTEMS RESEARCH

    SEC. 53001. USE OF FUNDS FOR ITS ACTIVITIES.

        Section 513 of title 23, United States Code, is amended to read as
    follows:
    ``Sec. 513. Use of funds for ITS activities

        ``(a) Definitions.--In this section, the following definitions
    apply:
                ``(1) Eligible entity.--The term `eligible entity' means a
            State or local government, tribal government, transit agency,
            public toll authority, metropolitan planning organization, other
            political subdivision of a State or local government, or a
            multistate or multijurisdictional group applying through a
            single lead applicant.
                ``(2) Multijurisdictional group.--The term
            `multijurisdictional group' means a combination of State
            governments, local governments, metropolitan planning agencies,
            transit agencies, or other political subdivisions of a State
            that--
                        ``(A) have signed a written agreement to implement
                    an activity that meets the grant criteria under this
                    section; and
                        ``(B) is comprised of at least 2 members, each of
                    whom is an eligible entity.

        ``(b) Purpose.--The purpose of this section is to develop,
    administer, communicate, and promote the use of products of research,
    technology, and technology transfer programs.
        ``(c) ITS Adoption.--
                ``(1) Innovative technologies and strategies.--The Secretary
            shall encourage the deployment of ITS technologies that will
            improve the performance of the National Highway System in such
            areas as traffic operations, emergency response, incident

    [[Page 126 STAT. 898]]

            management, surface transportation network management, freight
            management, traffic flow information, and congestion management
            by accelerating the adoption of innovative technologies through
            the use of--
                        ``(A) demonstration programs;
                        ``(B) grant funding;
                        ``(C) incentives to eligible entities; and
                        ``(D) other tools, strategies, or methods that will
                    result in the deployment of innovative ITS technologies.
                ``(2) Comprehensive plan.--To carry out this section, the
            Secretary shall develop a detailed and comprehensive plan that
            addresses the manner in which incentives may be adopted, as
            appropriate, through the existing deployment activities carried
            out by surface transportation modal administrations.''.
    SEC. 53002. GOALS AND PURPOSES.

        (a) In General.--Chapter 5 of title 23, United States Code, is
    amended by adding after section 513 the following:
    ``Sec. 514. Goals and purposes

        ``(a) Goals.--The goals of the intelligent transportation system
    program include--
                ``(1) enhancement of surface transportation efficiency and
            facilitation of intermodalism and international trade to enable
            existing facilities to meet a significant portion of future
            transportation needs, including public access to employment,
            goods, and services and to reduce regulatory, financial, and
            other transaction costs to public agencies and system users;
                ``(2) achievement of national transportation safety goals,
            including enhancement of safe operation of motor vehicles and
            nonmotorized vehicles and improved emergency response to
            collisions, with particular emphasis on decreasing the number
            and severity of collisions;
                ``(3) protection and enhancement of the natural environment
            and communities affected by surface transportation, with
            particular emphasis on assisting State and local governments to
            achieve national environmental goals;
                ``(4) accommodation of the needs of all users of surface
            transportation systems, including operators of commercial motor
            vehicles, passenger motor vehicles, motorcycles, bicycles, and
            pedestrians (including individuals with disabilities); and
                ``(5) enhancement of national defense mobility and
            improvement of the ability of the United States to respond to
            security-related or other manmade emergencies and natural
            disasters.

        ``(b) Purposes.--The Secretary shall implement activities under the
    intelligent transportation system program, at a minimum--
                ``(1) to expedite, in both metropolitan and rural areas,
            deployment and integration of intelligent transportation systems
            for consumers of passenger and freight transportation;
                ``(2) to ensure that Federal, State, and local
            transportation officials have adequate knowledge of intelligent
            transportation systems for consideration in the transportation
            planning process;
                ``(3) to improve regional cooperation and operations
            planning for effective intelligent transportation system
            deployment;
                ``(4) to promote the innovative use of private resources in
            support of intelligent transportation system development;

    [[Page 126 STAT. 899]]

                ``(5) to facilitate, in cooperation with the motor vehicle
            industry, the introduction of vehicle-based safety enhancing
            systems;
                ``(6) to support the application of intelligent
            transportation systems that increase the safety and efficiency
            of commercial motor vehicle operations;
                ``(7) to develop a workforce capable of developing,
            operating, and maintaining intelligent transportation systems;
                ``(8) to provide continuing support for operations and
            maintenance of intelligent transportation systems; and
                ``(9) to ensure a systems approach that includes cooperation
            among vehicles, infrastructure, and users.''.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by adding after the item relating to
    section 513 the following:

    ``514. Goals and purposes.''.

    SEC. 53003. GENERAL AUTHORITIES AND REQUIREMENTS.

        (a) In General.--Chapter 5 of title 23, United States Code, is
    amended by adding after section 514 (as added by section 53002) the
    following:
    ``Sec. 515. General authorities and requirements

        ``(a) Scope.--Subject to the provisions of this chapter, the
    Secretary shall conduct an ongoing intelligent transportation system
    program--
                ``(1) to research, develop, and operationally test
            intelligent transportation systems; and
                ``(2) to provide technical assistance in the nationwide
            application of those systems as a component of the surface
            transportation systems of the United States.

        ``(b) Policy.--Intelligent transportation system research projects
    and operational tests funded pursuant to this chapter shall encourage
    and not displace public-private partnerships or private sector
    investment in those tests and projects.
        ``(c) Cooperation With Governmental, Private, and Educational
    Entities.--The Secretary shall carry out the intelligent transportation
    system program in cooperation with State and local governments and other
    public entities, the private sector firms of the United States, the
    Federal laboratories, and institutions of higher education, including
    historically Black colleges and universities and other minority
    institutions of higher education.
        ``(d) Consultation With Federal Officials.--In carrying out the
    intelligent transportation system program, the Secretary shall consult
    with the heads of other Federal agencies, as appropriate.
        ``(e) Technical Assistance, Training, and Information.--The
    Secretary may provide technical assistance, training, and information to
    State and local governments seeking to implement, operate, maintain, or
    evaluate intelligent transportation system technologies and services.
        ``(f) Transportation Planning.--The Secretary may provide funding to
    support adequate consideration of transportation systems management and
    operations, including intelligent transportation systems, within
    metropolitan and statewide transportation planning processes.
        ``(g) Information Clearinghouse.--
                ``(1) In general.--The Secretary shall--

    [[Page 126 STAT. 900]]

                        ``(A) maintain a repository for technical and safety
                    data collected as a result of federally sponsored
                    projects carried out under this chapter; and
                        ``(B) make, on request, that information (except for
                    proprietary information and data) readily available to
                    all users of the repository at an appropriate cost.
                ``(2) Agreement.--
                        ``(A) In general.--The Secretary may enter into an
                    agreement with a third party for the maintenance of the
                    repository for technical and safety data under paragraph
                    (1)(A).
                        ``(B) Federal financial assistance.--If the
                    Secretary enters into an agreement with an entity for
                    the maintenance of the repository, the entity shall be
                    eligible for Federal financial assistance under this
                    section.
                ``(3) Availability of information.--Information in the
            repository shall not be subject to sections 552 and 555 of title
            5, United States Code.

        ``(h) Advisory Committee.--
                ``(1) <<NOTE: Establishment.>> In general.--The Secretary
            shall establish an Advisory Committee to advise the Secretary on
            carrying out this chapter.
                ``(2) Membership.--The Advisory Committee shall have no more
            than 20 members, be balanced between metropolitan and rural
            interests, and include, at a minimum--
                        ``(A) a representative from a State highway
                    department;
                        ``(B) a representative from a local highway
                    department who is not from a metropolitan planning
                    organization;
                        ``(C) a representative from a State, local, or
                    regional transit agency;
                        ``(D) a representative from a metropolitan planning
                    organization;
                        ``(E) a private sector user of intelligent
                    transportation system technologies;
                        ``(F) an academic researcher with expertise in
                    computer science or another information science field
                    related to intelligent transportation systems, and who
                    is not an expert on transportation issues;
                        ``(G) an academic researcher who is a civil
                    engineer;
                        ``(H) an academic researcher who is a social
                    scientist with expertise in transportation issues;
                        ``(I) a representative from a nonprofit group
                    representing the intelligent transportation system
                    industry;
                        ``(J) a representative from a public interest group
                    concerned with safety;
                        ``(K) a representative from a public interest group
                    concerned with the impact of the transportation system
                    on land use and residential patterns; and
                        ``(L) members with expertise in planning, safety,
                    telecommunications, utilities, and operations.
                ``(3) Duties.--The Advisory Committee shall, at a minimum,
            perform the following duties:
                        ``(A) Provide input into the development of the
                    intelligent transportation system aspects of the
                    strategic plan under section 508.

    [[Page 126 STAT. 901]]

                        ``(B) Review, at least annually, areas of
                    intelligent transportation systems research being
                    considered for funding by the Department, to determine--
                              ``(i) whether these activities are likely to
                          advance either the state-of-the-practice or state-
                          of-the-art in intelligent transportation systems;
                              ``(ii) whether the intelligent transportation
                          system technologies are likely to be deployed by
                          users, and if not, to determine the barriers to
                          deployment; and
                              ``(iii) the appropriate roles for government
                          and the private sector in investing in the
                          research and technologies being considered.
                ``(4) Report.--Not later than February 1 of each year after
            the date of enactment of the Transportation Research and
            Innovative Technology Act of 2012, the Secretary shall submit to
            Congress a report that includes--
                        ``(A) all recommendations made by the Advisory
                    Committee during the preceding calendar year;
                        ``(B) an explanation of the manner in which the
                    Secretary has implemented those recommendations; and
                        ``(C) for recommendations not implemented, the
                    reasons for rejecting the recommendations.
                ``(5) Applicability of federal advisory committee act.--The
            Advisory Committee shall be subject to the Federal Advisory
            Committee Act (5 U.S.C. App.).

        ``(i) Reporting.--
                ``(1) Guidelines and requirements.--
                        ``(A) In general.--The Secretary shall issue
                    guidelines and requirements for the reporting and
                    evaluation of operational tests and deployment projects
                    carried out under this chapter.
                        ``(B) Objectivity and independence.--The guidelines
                    and requirements issued under subparagraph (A) shall
                    include provisions to ensure the objectivity and
                    independence of the reporting entity so as to avoid any
                    real or apparent conflict of interest or potential
                    influence on the outcome by parties to any such test or
                    deployment project or by any other formal evaluation
                    carried out under this chapter.
                        ``(C) Funding.--The guidelines and requirements
                    issued under subparagraph (A) shall establish reporting
                    funding levels based on the size and scope of each test
                    or project that ensure adequate reporting of the results
                    of the test or project.
                ``(2) Special rule.--Any survey, questionnaire, or interview
            that the Secretary considers necessary to carry out the
            reporting of any test, deployment project, or program assessment
            activity under this chapter shall not be subject to chapter 35
            of title 44, United States Code.''.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by adding after the item relating to
    section 514 (as added by section 53002) the following:

    ``515. General authorities and requirements.''.

    [[Page 126 STAT. 902]]

    SEC. 53004. RESEARCH AND DEVELOPMENT.

        (a) In General.--Chapter 5 of title 23, United States Code, is
    amended by adding after section 515 (as added by section 53003) the
    following:
    ``Sec. 516. Research and development

        ``(a) In General.--The Secretary shall carry out a comprehensive
    program of intelligent transportation system research and development,
    and operational tests of intelligent vehicles, intelligent
    infrastructure systems, and other similar activities that are necessary
    to carry out this chapter.
        ``(b) Priority Areas.--Under the program, the Secretary shall give
    higher priority to funding projects that--
                ``(1) enhance mobility and productivity through improved
            traffic management, incident management, transit management,
            freight management, road weather management, toll collection,
            traveler information, or highway operations systems and remote
            sensing products;
                ``(2) use interdisciplinary approaches to develop traffic
            management strategies and tools to address multiple impacts of
            congestion concurrently;
                ``(3) address traffic management, incident management,
            transit management, toll collection traveler information, or
            highway operations systems;
                ``(4) incorporate research on the potential impact of
            environmental, weather, and natural conditions on intelligent
            transportation systems, including the effects of cold climates;
                ``(5) enhance intermodal use of intelligent transportation
            systems for diverse groups, including for emergency and health-
            related services;
                ``(6) enhance safety through improved crash avoidance and
            protection, crash and other notification, commercial motor
            vehicle operations, and infrastructure-based or cooperative
            safety systems; or
                ``(7) facilitate the integration of intelligent
            infrastructure, vehicle, and control technologies.

        ``(c) Federal Share.--The Federal share payable on account of any
    project or activity carried out under subsection (a) shall not exceed 80
    percent.''.
        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by adding after the item relating to
    section 515 (as added by section 53003) the following:

    ``516. Research and development.''.

    SEC. 53005. NATIONAL ARCHITECTURE AND STANDARDS.

        (a) In General.--Chapter 5 of title 23, United States Code, is
    amended by adding after section 516 (as added by section 53004) the
    following:
    ``Sec. 517. National architecture and standards

        ``(a) In General.--
                ``(1) Development, implementation, and maintenance.--In
            accordance with section 12(d) of the National Technology
            Transfer and Advancement Act of 1995 (15 U.S.C. 272 note; 110
            Stat. 783; 115 Stat. 1241), the Secretary shall develop and
            maintain a national ITS architecture and supporting ITS
            standards and protocols to promote the use of systems

    [[Page 126 STAT. 903]]

            engineering methods in the widespread deployment and evaluation
            of intelligent transportation systems as a component of the
            surface transportation systems of the United States.
                ``(2) Interoperability and efficiency.--To the maximum
            extent practicable, the national ITS architecture and supporting
            ITS standards and protocols shall promote interoperability
            among, and efficiency of, intelligent transportation systems and
            technologies implemented throughout the United States.
                ``(3) Use of standards development organizations.--In
            carrying out this section, the Secretary shall support the
            development and maintenance of standards and protocols using the
            services of such standards development organizations as the
            Secretary determines to be necessary and whose memberships are
            comprised of, and represent, the surface transportation and
            intelligent transportation systems industries.

        ``(b) Standards for National Policy Implementation.--If the
    Secretary finds that a standard is necessary for implementation of a
    nationwide policy relating to user fee collection or other capability
    requiring nationwide uniformity, the Secretary, after consultation with
    stakeholders, may establish and require the use of that standard.
        ``(c) Provisional Standards.--
                ``(1) In general.--If the Secretary finds that the
            development or balloting of an intelligent transportation system
            standard jeopardizes the timely achievement of the objectives
            described in subsection (a), the Secretary may establish a
            provisional standard, after consultation with affected parties,
            using, to the maximum extent practicable, the work product of
            appropriate standards development organizations.
                ``(2) Period of effectiveness.--A provisional standard
            established under paragraph (1) shall be published in the
            Federal Register and remain in effect until the appropriate
            standards development organization adopts and publishes a
            standard.

        ``(d) Conformity With National Architecture.--
                ``(1) In general.--Except as provided in paragraph (2), the
            Secretary shall ensure that intelligent transportation system
            projects carried out using amounts made available from the
            Highway Trust Fund, including amounts made available to deploy
            intelligent transportation systems, conform to the appropriate
            regional ITS architecture, applicable standards, and protocols
            developed under subsection (a) or (c).
                ``(2) Discretion of the secretary.--The Secretary, at the
            discretion of the Secretary, may offer an exemption from
            paragraph (1) for projects designed to achieve specific research
            objectives outlined in the national intelligent transportation
            system program plan or the surface transportation research and
            development strategic plan developed under section 508.''.

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by adding after the item relating to
    section 516 (as added by section 53004) the following:

    ``517. National architecture and standards.''.

    [[Page 126 STAT. 904]]

    SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRASTRUCTURE
                                COMMUNICATIONS SYSTEMS DEPLOYMENT.

        (a) In General.--Chapter 5 of title 23, United States Code, is
    amended by adding after section 517 (as added by section 53005) the
    following:
    ``Sec. 518. Vehicle-to-vehicle and vehicle-to-infrastructure
                    communications systems deployment

        ``(a) <<NOTE: Deadline.>> In General.--Not later than 3 years after
    the date of enactment of this section, the Secretary shall submit to the
    Committees on Commerce, Science, and Transportation and Environment and
    Public Works of the Senate and the Committees on Transportation and
    Infrastructure, Energy and Commerce, and Science, Space, and Technology
    of the House of Representatives that--
                ``(1) assesses the status of dedicated short-range
            communications technology and applications developed through
            research and development;
                ``(2) analyzes the known and potential gaps in short-range
            communications technology and applications;
                ``(3) defines a recommended implementation path for
            dedicated short-range communications technology and applications
            that--
                        ``(A) is based on the assessment described in
                    paragraph (1); and
                        ``(B) takes into account the analysis described in
                    paragraph (2);
                ``(4) includes guidance on the relationship of the proposed
            deployment of dedicated short-range communications to the
            National ITS Architecture and ITS Standards; and
                ``(5) ensures competition by not preferencing the use of any
            particular frequency for vehicle to infrastructure operations.

        ``(b) <<NOTE: Contracts.>>  Report Review.--The Secretary shall
    enter into agreements with the National Research Council and an
    independent third party with subject matter expertise for the review of
    the report described in subsection (a).''.

    [[Page 126 STAT. 905]]

        (b) Conforming Amendment.--The analysis for chapter 5 of title 23,
    United States Code, is amended by adding after section 517 (as added by
    section 53005) the following:

    ``518. Vehicle-to-vehicle and vehicle-to-infrastructure communications
               systems deployment.''.

                            DIVISION F--MISCELLANEOUS

                  TITLE I--REAUTHORIZATION OF CERTAIN PROGRAMS

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

    SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION
                                  PROGRAM.

        (a) Amendments.--The Secure Rural Schools and Community Self-
    Determination Act of 2000 (16 U.S.C. 7101 et seq.) is amended--
                (1) <<NOTE: 16 USC 7102.>>  in section 3(11)--
                        (A) in subparagraph (A), by striking ``and'' after
                    the semicolon at the end;
                        (B) in subparagraph (B)--
                              (i) by striking ``fiscal year 2009 and each
                          fiscal year thereafter'' and inserting ``each of
                          fiscal years 2009 through 2011''; and
                              (ii) by striking the period at the end and
                          inserting ``; and''; and
                        (C) by adding at the end the following:
                        ``(C) for fiscal year 2012 and each fiscal year
                    thereafter, the amount that is equal to 95 percent of
                    the full funding amount for the preceding fiscal
                    year.'';
                (2) <<NOTE: 16 USC 71113et seq.>>  in sections 101, 102,
            203, 207, 208, 304, and 402, by striking ``2011'' each place it
            appears and inserting ``2012'';
                (3) <<NOTE: 16 USC 7112.>>  in section 102--
                        (A) by striking ``2008'' each place it appears and
                    inserting ``2012'';
                        (B) in subsection (b)(2)(B), by inserting ``in
                    2012'' before ``, the election''; and
                        (C) in subsection (d)--
                              (i) in paragraph (1)(A), by striking
                          ``paragraph (3)(B)'' and inserting ``subparagraph
                          (D)''; and
                              (ii) in paragraph (3)--
                                        (I) by striking subparagraph (A) and
                                    inserting the following:
                        ``(A) <<NOTE: Deadlines.>>  Notification.--The
                    Governor of each eligible State shall notify the
                    Secretary concerned of an election by an eligible county
                    under this subsection not later than September 30, 2012,
                    and each September 30 thereafter for each succeeding
                    fiscal year.'';
                                        (II) by redesignating subparagraph
                                    (B) as subparagraph (D) and moving the
                                    subparagraph so as to appear at the end
                                    of paragraph (1) of subsection (d); and

    [[Page 126 STAT. 906]]

                                        (III) by inserting after
                                    subparagraph (A) the following:
                        ``(B) Failure to elect.--If the Governor of an
                    eligible State fails to notify the Secretary concerned
                    of the election for an eligible county by the date
                    specified in subparagraph (A)--
                              ``(i) the eligible county shall be considered
                          to have elected to expend 80 percent of the funds
                          in accordance with paragraph (1)(A); and
                              ``(ii) the remainder shall be available to the
                          Secretary concerned to carry out projects in the
                          eligible county to further the purpose described
                          in section 202(b).'';
                (4) <<NOTE: 16 USC 7113.>>  in section 103(d)(2), by
            striking ``fiscal year 2011'' and inserting ``each of fiscal
            years 2011 and 2012'';
                (5) <<NOTE: 16 USC 7122.>>  in section 202, by adding at the
            end the following:

        ``(c) Administrative Expenses.--A resource advisory committee may,
    in accordance with section 203, propose to use not more than 10 percent
    of the project funds of an eligible county for any fiscal year for
    administrative expenses associated with operating the resource advisory
    committee under this title.'';
                (6) <<NOTE: 16 USC 7124.>>  in section 204(e)(3)(B)(iii), by
            striking ``and 2011'' and inserting ``through 2012'';
                (7) <<NOTE: 16 USC 7125.>>  in section 205(a)(4), by
            striking ``2006'' each place it appears and inserting ``2011'';
                (8) <<NOTE: 16 USC 7128.>>  in section 208(b), by striking
            ``2012'' and inserting ``2013'';
                (9) <<NOTE: 16 USC 7142.>>  in section 302(a)(2)(A), by
            inserting ``and'' after the semicolon; and
                (10) <<NOTE: 16 USC 7144.>>  in section 304(b), by striking
            ``2012'' and inserting ``2013''.

        (b) Failure To Make Election.--For each county that failed to make
    an election for fiscal year 2011 in accordance with section 102(d)(3)(A)
    of the Secure Rural Schools and Community Self-Determination Act of 2000
    (16 U.S.C. 7112(d)(3)(A)), there shall be available to the Secretary of
    Agriculture to carry out projects to further the purpose described in
    section 202(b) of that Act (16 U.S.C. 7122(b)), from amounts in the
    Treasury not otherwise appropriated, the amount that is equal to 15
    percent of the total share of the State payment that otherwise would
    have been made to the county under that Act for fiscal year 2011.

                  Subtitle B--Payment in Lieu of Taxes Program

    SEC. 100111. PAYMENTS IN LIEU OF TAXES.

        Section 6906 of title 31, United States Code, is amended by striking
    ``2012'' and inserting ``2013''.

                               Subtitle C--Offsets

    SEC. 100121. PHASED RETIREMENT AUTHORITY.

        (a) CSRS.--Chapter 83 of title 5, United States Code, is amended--
                (1) <<NOTE: 5 USC 8331.>>  in section 8331--

    [[Page 126 STAT. 907]]

                        (A) in paragraph (30) by striking ``and'' at the
                    end;
                        (B) in paragraph (31) by striking the period at the
                    end and inserting ``; and''; and
                        (C) by adding at the end the following:
                ``(32) `Director' means the Director of the Office of
            Personnel Management.'';
                (2) by inserting after section 8336 the following:
    ``Sec. 8336a. Phased retirement

        ``(a) <<NOTE: Definitions.>>  For the purposes of this section--
                ``(1) the term `composite retirement annuity' means the
            annuity computed when a phased retiree attains full retirement
            status;
                ``(2) the term `full retirement status' means that a phased
            retiree has ceased employment and is entitled, upon application,
            to a composite retirement annuity;
                ``(3) the term `phased employment' means the less-than-full-
            time employment of a phased retiree;
                ``(4) the term `phased retiree' means a retirement-eligible
            employee who--
                        ``(A) makes an election under subsection (b); and
                        ``(B) has not entered full retirement status;
                ``(5) the term `phased retirement annuity' means the annuity
            payable under this section before full retirement;
                ``(6) the term `phased retirement percentage' means the
            percentage which, when added to the working percentage for a
            phased retiree, produces a sum of 100 percent;
                ``(7) the term `phased retirement period' means the period
            beginning on the date on which an individual becomes entitled to
            receive a phased retirement annuity and ending on the date on
            which the individual dies or separates from phased employment;
                ``(8) the term `phased retirement status' means that a
            phased retiree is concurrently employed in phased employment and
            eligible to receive a phased retirement annuity;
                ``(9) the term `retirement-eligible employee'--
                        ``(A) means an individual who, if the individual
                    separated from the service, would meet the requirements
                    for retirement under subsection (a) or (b) of section
                    8336; but
                        ``(B) does not include an employee described in
                    section 8335 after the date on which the employee is
                    required to be separated from the service by reason of
                    such section; and
                ``(10) the term `working percentage' means the percentage of
            full-time employment equal to the quotient obtained by
            dividing--
                        ``(A) the number of hours per pay period to be
                    worked by a phased retiree, as scheduled in accordance
                    with subsection (b)(2); by
                        ``(B) the number of hours per pay period to be
                    worked by an employee serving in a comparable position
                    on a full-time basis.

        ``(b)(1) <<NOTE: Regulations. Time period.>>  With the concurrence
    of the head of the employing agency, and under regulations promulgated
    by the Director, a retirement-eligible employee who has been employed on
    a full-time basis for not less than the 3-year period ending on the date
    on which

    [[Page 126 STAT. 908]]

    the retirement-eligible employee makes an election under this subsection
    may elect to enter phased retirement status.

        ``(2)(A) Subject to subparagraph (B), at the time of entering phased
    retirement status, a phased retiree shall be appointed to a position for
    which the working percentage is 50 percent.
        ``(B) The Director may, by regulation, provide for working
    percentages different from the percentage specified under subparagraph
    (A), which shall be not less than 20 percent and not more than 80
    percent.
        ``(C) The working percentage for a phased retiree may not be changed
    during the phased retiree's phased retirement period.
        ``(D)(i) Not less than 20 percent of the hours to be worked by a
    phased retiree shall consist of mentoring.
        ``(ii) The Director may, by regulation, provide for exceptions to
    the requirement under clause (i).
        ``(iii) Clause (i) shall not apply to a phased retiree serving in
    the United States Postal Service. Nothing in this clause shall prevent
    the application of clause (i) or (ii) with respect to a phased retiree
    serving in the Postal Regulatory Commission.
        ``(3) A phased retiree--
                ``(A) may not be employed in more than one position at any
            time; and
                ``(B) may transfer to another position in the same or a
            different agency, only if the transfer does not result in a
            change in the working percentage.

        ``(4) A retirement-eligible employee may make not more than one
    election under this subsection during the retirement-eligible employee's
    lifetime.
        ``(5) A retirement-eligible employee who makes an election under
    this subsection may not make an election under section 8343a.
        ``(c)(1) Except as otherwise provided under this subsection, the
    phased retirement annuity for a phased retiree is the product obtained
    by multiplying--
                ``(A) the amount of an annuity computed under section 8339
            that would have been payable to the phased retiree if, on the
            date on which the phased retiree enters phased retirement
            status, the phased retiree had separated from service and
            retired under section 8336(a) or (b); by
                ``(B) the phased retirement percentage for the phased
            retiree.

        ``(2) A phased retirement annuity shall be paid in addition to the
    basic pay for the position to which a phased retiree is appointed during
    phased employment.
        ``(3) A phased retirement annuity shall be adjusted in accordance
    with section 8340.
        ``(4)(A) A phased retirement annuity shall not be subject to
    reduction for any form of survivor annuity, shall not serve as the basis
    of the computation of any survivor annuity, and shall not be subject to
    any court order requiring a survivor annuity to be provided to any
    individual.
        ``(B) A phased retirement annuity shall be subject to a court order
    providing for division, allotment, assignment, execution, levy,
    attachment, garnishment, or other legal process on the same basis as
    other annuities.

    [[Page 126 STAT. 909]]

        ``(5) <<NOTE: Applicability.>>  Any reduction of a phased retirement
    annuity based on an election under section 8334(d)(2) shall be applied
    to the phased retirement annuity after computation under paragraph (1).

        ``(6)(A) Any deposit, or election of an actuarial annuity reduction
    in lieu of a deposit, for military service or for creditable civilian
    service for which retirement deductions were not made or refunded shall
    be made by a retirement-eligible employee at or before the time the
    retirement-eligible employee enters phased retirement status. No such
    deposit may be made, or actuarial adjustment in lieu thereof elected, at
    the time a phased retiree enters full retirement status.
        ``(B) Notwithstanding subparagraph (A), if a phased retiree does not
    make such a deposit and dies in service as a phased retiree, a survivor
    of the phased retiree shall have the same right to make such deposit as
    would have been available had the employee not entered phased retirement
    status and died in service.
        ``(C) If a phased retiree makes an election for an actuarial annuity
    reduction under section 8334(d)(2) and dies in service as a phased
    retiree, the amount of any deposit upon which such actuarial reduction
    shall have been based shall be deemed to have been fully paid.
        ``(7) <<NOTE: Effective date.>>  A phased retirement annuity shall
    commence on the date on which a phased retiree enters phased employment.

        ``(8) No unused sick leave credit may be used in the computation of
    the phased retirement annuity.
        ``(d) All basic pay not in excess of the full-time rate of pay for
    the position to which a phased retiree is appointed shall be deemed to
    be basic pay for purposes of section 8334.
        ``(e) Under such procedures as the Director may prescribe, a phased
    retiree may elect to enter full retirement status at any time. Upon
    making such an election, a phased retiree shall be entitled to a
    composite retirement annuity.
        ``(f)(1) <<NOTE: Regulations.>>  Except as provided otherwise under
    this subsection, a composite retirement annuity is a single annuity
    computed under regulations prescribed by the Director, equal to the sum
    of--
                ``(A) the amount of the phased retirement annuity as of the
            date of full retirement, before any reduction based on an
            election under section 8334(d)(2), and including any adjustments
            made under section 8340; and
                ``(B) the product obtained by multiplying--
                        ``(i) the amount of an annuity computed under
                    section 8339 that would have been payable at the time of
                    full retirement if the individual had not elected a
                    phased retirement and as if the individual was employed
                    on a full-time basis in the position occupied during the
                    phased retirement period and before any reduction for
                    survivor annuity or reduction based on an election under
                    section 8334(d)(2); by
                        ``(ii) the working percentage.

        ``(2) After computing a composite retirement annuity under paragraph
    (1), the Director shall adjust the amount of the annuity for any
    applicable reductions for a survivor annuity and any previously elected
    actuarial reduction under section 8334(d)(2).
        ``(3) A composite retirement annuity shall be adjusted in accordance
    with section 8340, except that subsection (c)(1) of that section shall
    not apply.

    [[Page 126 STAT. 910]]

        ``(4) In computing a composite retirement annuity under paragraph
    (1)(B)(i), the unused sick leave to the credit of a phased retiree at
    the time of entry into full retirement status shall be adjusted by
    dividing the number of hours of unused sick leave by the working
    percentage.
        ``(g)(1) Under such procedures and conditions as the Director may
    provide, and with the concurrence of the head of the employing agency, a
    phased retiree may elect to terminate phased retirement status and
    return to a full-time work schedule.
        ``(2) Upon entering a full-time work schedule based upon an election
    under paragraph (1), the phased retirement annuity of a phased retiree
    shall terminate.
        ``(3) After the termination of a phased retirement annuity under
    this subsection, the individual's rights under this subchapter shall be
    determined based on the law in effect at the time of any subsequent
    separation from service. For purposes of this subchapter or chapter 84,
    at time of the subsequent separation from service, the phased retirement
    period shall be treated as if it had been a period of part-time
    employment with the work schedule described in subsection (b)(2).
        ``(h) For purposes of section 8341--
                ``(1) the death of a phased retiree shall be deemed to be
            the death in service of an employee; and
                ``(2) the phased retirement period shall be deemed to have
            been a period of part-time employment with the work schedule
            described in subsection (b)(2).

        ``(i) Employment of a phased retiree shall not be deemed to be part-
    time career employment, as defined in section 3401(2).
        ``(j) A phased retiree is not eligible to apply for an annuity under
    section 8337.
        ``(k) For purposes of section 8341(h)(4), retirement shall be deemed
    to occur on the date on which a phased retiree enters into full
    retirement status.
        ``(l) For purposes of sections 8343 and 8351, and subchapter III of
    chapter 84, a phased retiree shall be deemed to be an employee.
        ``(m) A phased retiree is not subject to section 8344.
        ``(n) For purposes of chapter 87, a phased retiree shall be deemed
    to be receiving basic pay at the rate of a full-time employee in the
    position to which the phased retiree is appointed.''; and
                (3) in the table of sections by inserting after the item
            relating to section 8336 the following:

    ``8336a. Phased retirement.''.

        (b) FERS.--Chapter 84 of title 5, United States Code, is amended--
                (1) by inserting after section 8412 the following new
            section:
    ``Sec. 8412a. Phased retirement

        ``(a) <<NOTE: Definitions.>>  For the purposes of this section--
                ``(1) the term `composite retirement annuity' means the
            annuity computed when a phased retiree attains full retirement
            status;
                ``(2) the term `full retirement status' means that a phased
            retiree has ceased employment and is entitled, upon application,
            to a composite retirement annuity;

    [[Page 126 STAT. 911]]

                ``(3) the term `phased employment' means the less-than-full-
            time employment of a phased retiree;
                ``(4) the term `phased retiree' means a retirement-eligible
            employee who--
                        ``(A) makes an election under subsection (b); and
                        ``(B) has not entered full retirement status;
                ``(5) the term `phased retirement annuity' means the annuity
            payable under this section before full retirement;
                ``(6) the term `phased retirement percentage' means the
            percentage which, when added to the working percentage for a
            phased retiree, produces a sum of 100 percent;
                ``(7) the term `phased retirement period' means the period
            beginning on the date on which an individual becomes entitled to
            receive a phased retirement annuity and ending on the date on
            which the individual dies or separates from phased employment;
                ``(8) the term `phased retirement status' means that a
            phased retiree is concurrently employed in phased employment and
            eligible to receive a phased retirement annuity;
                ``(9) the term `retirement-eligible employee'--
                        ``(A) means an individual who, if the individual
                    separated from the service, would meet the requirements
                    for retirement under subsection (a) or (b) of section
                    8412; and
                        ``(B) does not include--
                              ``(i) an individual who, if the individual
                          separated from the service, would meet the
                          requirements for retirement under subsection (d)
                          or (e) of section 8412; but
                              ``(ii) does not include an employee described
                          in section 8425 after the date on which the
                          employee is required to be separated from the
                          service by reason of such section; and
                ``(10) the term `working percentage' means the percentage of
            full-time employment equal to the quotient obtained by
            dividing--
                        ``(A) the number of hours per pay period to be
                    worked by a phased retiree, as scheduled in accordance
                    with subsection (b)(2); by
                        ``(B) the number of hours per pay period to be
                    worked by an employee serving in a comparable position
                    on a full-time basis.

        ``(b)(1) <<NOTE: Regulations. Time period.>>  With the concurrence
    of the head of the employing agency, and under regulations promulgated
    by the Director, a retirement-eligible employee who has been employed on
    a full-time basis for not less than the 3-year period ending on the date
    on which the retirement-eligible employee makes an election under this
    subsection may elect to enter phased retirement status.

        ``(2)(A) Subject to subparagraph (B), at the time of entering phased
    retirement status, a phased retiree shall be appointed to a position for
    which the working percentage is 50 percent.
        ``(B) The Director may, by regulation, provide for working
    percentages different from the percentage specified under subparagraph
    (A), which shall be not less than 20 percent and not more than 80
    percent.
        ``(C) The working percentage for a phased retiree may not be changed
    during the phased retiree's phased retirement period.

    [[Page 126 STAT. 912]]

        ``(D)(i) Not less than 20 percent of the hours to be worked by a
    phased retiree shall consist of mentoring.
        ``(ii) The Director may, by regulation, provide for exceptions to
    the requirement under clause (i).
        ``(iii) Clause (i) shall not apply to a phased retiree serving in
    the United States Postal Service. Nothing in this clause shall prevent
    the application of clause (i) or (ii) with respect to a phased retiree
    serving in the Postal Regulatory Commission.
        ``(3) A phased retiree--
                ``(A) may not be employed in more than one position at any
            time; and
                ``(B) may transfer to another position in the same or a
            different agency, only if the transfer does not result in a
            change in the working percentage.

        ``(4) A retirement-eligible employee may make not more than one
    election under this subsection during the retirement-eligible employee's
    lifetime.
        ``(5) A retirement-eligible employee who makes an election under
    this subsection may not make an election under section 8420a.
        ``(c)(1) Except as otherwise provided under this subsection, the
    phased retirement annuity for a phased retiree is the product obtained
    by multiplying--
                ``(A) the amount of an annuity computed under section 8415
            that would have been payable to the phased retiree if, on the
            date on which the phased retiree enters phased retirement
            status, the phased retiree had separated from service and
            retired under section 8412 (a) or (b); by
                ``(B) the phased retirement percentage for the phased
            retiree.

        ``(2) A phased retirement annuity shall be paid in addition to the
    basic pay for the position to which a phased retiree is appointed during
    the phased employment.
        ``(3) A phased retirement annuity shall be adjusted in accordance
    with section 8462.
        ``(4)(A) A phased retirement annuity shall not be subject to
    reduction for any form of survivor annuity, shall not serve as the basis
    of the computation of any survivor annuity, and shall not be subject to
    any court order requiring a survivor annuity to be provided to any
    individual.
        ``(B) A phased retirement annuity shall be subject to a court order
    providing for division, allotment, assignment, execution, levy,
    attachment, garnishment, or other legal process on the same basis as
    other annuities.
        ``(5)(A) Any deposit, or election of an actuarial annuity reduction
    in lieu of a deposit, for military service or for creditable civilian
    service for which retirement deductions were not made or refunded, shall
    be made by a retirement-eligible employee at or before the time the
    retirement-eligible employee enters phased retirement status. No such
    deposit may be made, or actuarial adjustment in lieu thereof elected, at
    the time a phased retiree enters full retirement status.
        ``(B) Notwithstanding subparagraph (A), if a phased retiree does not
    make such a deposit and dies in service as a phased retiree, a survivor
    of the phased retiree shall have the same right to make such deposit as
    would have been available had the employee not entered phased retirement
    status and died in service.

    [[Page 126 STAT. 913]]

        ``(6) <<NOTE: Effective date.>>  A phased retirement annuity shall
    commence on the date on which a phased retiree enters phased employment.

        ``(7) No unused sick leave credit may be used in the computation of
    the phased retirement annuity.
        ``(d) All basic pay not in excess of the full-time rate of pay for
    the position to which a phased retiree is appointed shall be deemed to
    be basic pay for purposes of sections 8422 and 8423.
        ``(e) Under such procedures as the Director may prescribe, a phased
    retiree may elect to enter full retirement status at any time. Upon
    making such an election, a phased retiree shall be entitled to a
    composite retirement annuity.
        ``(f)(1) <<NOTE: Regulations.>>  Except as provided otherwise under
    this subsection, a composite retirement annuity is a single annuity
    computed under regulations prescribed by the Director, equal to the sum
    of--
                ``(A) the amount of the phased retirement annuity as of the
            date of full retirement, including any adjustments made under
            section 8462; and
                ``(B) the product obtained by multiplying--
                        ``(i) the amount of an annuity computed under
                    section 8412 that would have been payable at the time of
                    full retirement if the individual had not elected a
                    phased retirement and as if the individual was employed
                    on a full-time basis in the position occupied during the
                    phased retirement period and before any adjustment to
                    provide for a survivor annuity; by
                        ``(ii) the working percentage.

        ``(2) After computing a composite retirement annuity under paragraph
    (1), the Director shall adjust the amount of the annuity for any
    applicable reductions for a survivor annuity.
        ``(3) A composite retirement annuity shall be adjusted in accordance
    with section 8462, except that subsection (c)(1) of that section shall
    not apply.
        ``(4) In computing a composite retirement annuity under paragraph
    (1)(B)(i), the unused sick leave to the credit of a phased retiree at
    the time of entry into full retirement status shall be adjusted by
    dividing the number of hours of unused sick leave by the working
    percentage.
        ``(g)(1) Under such procedures and conditions as the Director may
    provide, and with the concurrence of the head of employing agency, a
    phased retiree may elect to terminate phased retirement status and
    return to a full-time work schedule.
        ``(2) Upon entering a full-time work schedule based on an election
    under paragraph (1), the phased retirement annuity of a phased retiree
    shall terminate.
        ``(3) After termination of the phased retirement annuity under this
    subsection, the individual's rights under this chapter shall be
    determined based on the law in effect at the time of any subsequent
    separation from service. For purposes of this chapter, at the time of
    the subsequent separation from service, the phased retirement period
    shall be treated as if it had been a period of part-time employment with
    the work schedule described in subsection (b)(2).
        ``(h) For purposes of subchapter IV--
                ``(1) the death of a phased retiree shall be deemed to be
            the death in service of an employee;
                ``(2) except for purposes of section 8442(b)(1)(A)(i), the
            phased retirement period shall be deemed to have been a period

    [[Page 126 STAT. 914]]

            of part-time employment with the work schedule described in
            subsection (b)(2) of this section; and
                ``(3) for purposes of section 8442(b)(1)(A)(i), the phased
            retiree shall be deemed to have been at the full-time rate of
            pay for the position occupied.

        ``(i) Employment of a phased retiree shall not be deemed to be part-
    time career employment, as defined in section 3401(2).
        ``(j) A phased retiree is not eligible to receive an annuity
    supplement under section 8421.
        ``(k) For purposes of subchapter III, a phased retiree shall be
    deemed to be an employee.
        ``(l) For purposes of section 8445(d), retirement shall be deemed to
    occur on the date on which a phased retiree enters into full retirement
    status.
        ``(m) A phased retiree is not eligible to apply for an annuity under
    subchapter V.
        ``(n) A phased retiree is not subject to section 8468.
        ``(o) For purposes of chapter 87, a phased retiree shall be deemed
    to be receiving basic pay at the rate of a full-time employee in the
    position to which the phased retiree is appointed.''; and
                (2) in the table of sections by inserting after the item
            relating to section 8412 the following:

    ``8412a. Phased retirement.''.

        (c) Exemption From 10-percent Additional Tax on Early
    Distributions.--Section 72(t)(2)(A) of the Internal Revenue Code of
    1986 <<NOTE: 26 USC 72.>> is amended by striking ``or'' at the end of
    clause (vi), by striking the period at the end of clause (vii) and
    inserting ``, or'', and by adding at the end the following:
                              ``(viii) payments under a phased retirement
                          annuity under section 8366a(a)(5) or 8412a(a)(5)
                          of title 5, United States Code, or a composite
                          retirement annuity under section 8366a(a)(1) or
                          8412a(a)(1) of such title.''.

        (d) <<NOTE: 5 USC 8331 note.>>  Effective Date.--The amendments made
    by subsections (a) and (b) shall take effect on the effective date of
    the implementing regulations issued by the Director of the Office of
    Personnel Management.
    SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.

        (a) In General.--Subsection (d) of section 5702 of the Internal
    Revenue Code of 1986 is amended by adding at the end the following new
    flush sentence:
    ``Such <<NOTE: Definition.>> term shall include any person who for
    commercial purposes makes available for consumer use (including such
    consumer's personal consumption or use under paragraph (1)) a machine
    capable of making cigarettes, cigars, or other tobacco products. A
    person making such a machine available for consumer use shall be deemed
    the person making the removal as defined by subsection (j) with respect
    to any tobacco products manufactured by such machine. A person who sells
    a machine directly to a consumer at retail for a consumer's personal
    home use is not making a machine available for commercial purposes if
    such machine is not used at a retail premises and is designed to produce
    tobacco products only in personal use quantities.''.

    [[Page 126 STAT. 915]]

        (b) <<NOTE: 26 USC 5702 note.>>  Effective Date.--The amendment made
    by this section shall apply to articles removed after the date of the
    enactment of this Act.
    SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY STATES.

        (a) Accelerated Date for Prior Amendments.--Section 3204(b) of the
    Middle Class Tax Relief and Job Creation Act of 2012 (Public Law 112-
    96) <<NOTE: 42 USC 1396d note.>> is amended by striking ``October 1,
    2013'' and inserting ``October 1, 2012''.

        (b) Application of 50 Percent in Fiscal Year 2013.--Subparagraph (B)
    of section 1905(aa)(1) of the Social Security Act (42 U.S.C.
    1396d(aa)(1)), as amended by section 3204(a) of Public Law 112-96, is
    amended by striking ``25 percent'' and inserting ``25 percent (or 50
    percent in the case of fiscal year 2013)''.
        (c) <<NOTE: 42 USC 1396d note.>>  Effective Date.--The amendments
    made by this section shall be effective as if included in the enactment
    of section 3204 of Public Law 112-96.
    SEC. 100124. REPEALS.

        (a) Transportation Requirements for Certain Exports Sponsored by the
    Secretary of Agriculture.--
                (1) Repeal.--Subsections (a) and (c) of section 55314 of
            title 46, United States Code, are repealed.
                (2) Activities described.--Subsection (b) of section 55314
            of title 46, United States Code, is amended by striking ``This
            section applies to export activity'' and inserting ``The
            activities specified in this subsection are export activities''.

        (b) Financing the Transportation of Agricultural Commodities.--
    Subsection (a) of section 55316 of title 46, United States Code, is
    repealed.
        (c) Conforming Amendments.--
                (1) Minimum tonnage.--Section 55315(b) of title 46, United
            States Code, is amended by striking ``subject to section 55314''
            and inserting ``specified in section 55314(b)''.
                (2) Issuance and purchase of obligations and notification to
            congress of insufficiency.--Section 55316 of title 46, United
            States Code, is amended--
                        (A) in subsection (c)(1) by striking ``under
                    subsections (a) and (b)'' and inserting ``under
                    subsection (b)''; and
                        (B) in subsection (f) by striking ``subsections (a)
                    and (b) and section 55314(a) of this title'' and
                    inserting ``subsection (b)''.
                (3) Termination of subchapter.--Section 55317 of title 46,
            United States Code, is amended by striking ``sections 55314(a)
            and 55316(a) and (b)'' and inserting ``section 55316(b)''.
    SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE
                                  RECLAMATION FUND.

        Section 411(h) of the Surface Mining Control and Reclamation Act of
    1977 (30 U.S.C. 1240a(h)) is amended by adding at the end the following:
                ``(5) Limitation on annual payments.--Notwithstanding any
            other provision of this subsection, the total annual payment to
            a certified State or Indian tribe under this subsection shall be
            not more than $15,000,000.''.

    [[Page 126 STAT. 916]]

     TITLE <<NOTE: Biggert-Waters Flood Insurance Reform Act of 2012.>> II--
    FLOOD INSURANCE

              Subtitle A--Flood Insurance Reform and Modernization

    SEC. 100201. <<NOTE: 42 USC 4001 note.>> SHORT TITLE.

        This subtitle may be cited as the ``Biggert-Waters Flood Insurance
    Reform Act of 2012''.
    SEC. 100202. <<NOTE: 42 USC 4004.>> DEFINITIONS.

        (a) In General.--In this subtitle, the following definitions shall
    apply:
                (1) 100-year floodplain.--The term ``100-year floodplain''
            means that area which is subject to inundation from a flood
            having a 1-percent chance of being equaled or exceeded in any
            given year.
                (2) 500-year floodplain.--The term ``500-year floodplain''
            means that area which is subject to inundation from a flood
            having a 0.2-percent chance of being equaled or exceeded in any
            given year.
                (3) Administrator.--The term ``Administrator'' means the
            Administrator of the Federal Emergency Management Agency.
                (4) National flood insurance program.--The term ``National
            Flood Insurance Program'' means the program established under
            the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et
            seq.).
                (5) Write your own.--The term ``Write Your Own'' means the
            cooperative undertaking between the insurance industry and the
            Federal Insurance Administration which allows participating
            property and casualty insurance companies to write and service
            standard flood insurance policies.

        (b) Common Terminology.--Except as otherwise provided in this
    subtitle, any terms used in this subtitle shall have the meaning given
    to such terms under section 1370 of the National Flood Insurance Act of
    1968 (42 U.S.C. 4121).
    SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

        (a) Financing.--Section 1309(a) of the National Flood Insurance Act
    of 1968 (42 U.S.C. 4016(a)) is amended by striking ``July 31, 2012'' and
    inserting ``September 30, 2017''.
        (b) Program Expiration.--Section 1319 of the National Flood
    Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking ``July 31,
    2012'' and inserting ``September 30, 2017''.
    SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

        Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4012) is amended--
                (1) in subsection (b)(2)(A), by inserting ``not described in
            subsection (a) or (d)'' after ``properties''; and
                (2) by adding at the end the following:

        ``(d) Availability of Insurance for Multifamily Properties.--
                ``(1) In general.--The Administrator shall make flood
            insurance available to cover residential properties of 5 or more
            residences. Notwithstanding any other provision of law, the

    [[Page 126 STAT. 917]]

            maximum coverage amount that the Administrator may make
            available under this subsection to such residential properties
            shall be equal to the coverage amount made available to
            commercial properties.
                ``(2) Rule of construction.--Nothing in this subsection
            shall be construed to limit the ability of individuals residing
            in residential properties of 5 or more residences to obtain
            insurance for the contents and personal articles located in such
            residences.''.
    SEC. 100205. REFORM OF PREMIUM RATE STRUCTURE.

        (a) To Exclude Certain Properties From Receiving Subsidized Premium
    Rates.--
                (1) In general.--Section 1307 of the National Flood
            Insurance Act of 1968 (42 U.S.C. 4014) is amended--
                        (A) in subsection (a)(2), by striking ``for any
                    residential property which is not the primary residence
                    of an individual; and'' and inserting the following:
                    ``for--
                        ``(A) any residential property which is not the
                    primary residence of an individual;
                        ``(B) any severe repetitive loss property;
                        ``(C) any property that has incurred flood-related
                    damage in which the cumulative amounts of payments under
                    this title equaled or exceeded the fair market value of
                    such property;
                        ``(D) any business property; or
                        ``(E) any property which on or after the date of
                    enactment of the Biggert-Waters Flood Insurance Reform
                    Act of 2012 has experienced or sustained--
                              ``(i) substantial damage exceeding 50 percent
                          of the fair market value of such property; or
                              ``(ii) substantial improvement exceeding 30
                          percent of the fair market value of such property;
                          and''; and
                        (B) by adding at the end the following:

        ``(g) No Extension of Subsidy to New Policies or Lapsed Policies.--
    The Administrator shall not provide flood insurance to prospective
    insureds at rates less than those estimated under subsection (a)(1), as
    required by paragraph (2) of that subsection, for--
                ``(1) any property not insured by the flood insurance
            program as of the date of enactment of the Biggert-Waters Flood
            Insurance Reform Act of 2012;
                ``(2) any property purchased after the date of enactment of
            the Biggert-Waters Flood Insurance Reform Act of 2012;
                ``(3) any policy under the flood insurance program that has
            lapsed in coverage, as a result of the deliberate choice of the
            holder of such policy; or
                ``(4) any prospective insured who refuses to accept any
            offer for mitigation assistance by the Administrator (including
            an offer to relocate), including an offer of mitigation
            assistance--
                        ``(A) following a major disaster, as defined in
                    section 102 of the Robert T. Stafford Disaster Relief
                    and Emergency Assistance Act (42 U.S.C. 5122); or
                        ``(B) in connection with--
                              ``(i) a repetitive loss property; or
                              ``(ii) a severe repetitive loss property.

    [[Page 126 STAT. 918]]

        ``(h) Definition.--In this section, the term `severe repetitive loss
    property' has the following meaning:
                ``(1) Single-family properties.--In the case of a property
            consisting of 1 to 4 residences, such term means a property
            that--
                        ``(A) is covered under a contract for flood
                    insurance made available under this title; and
                        ``(B) has incurred flood-related damage--
                              ``(i) for which 4 or more separate claims
                          payments have been made under flood insurance
                          coverage under this chapter, with the amount of
                          each such claim exceeding $5,000, and with the
                          cumulative amount of such claims payments
                          exceeding $20,000; or
                              ``(ii) for which at least 2 separate claims
                          payments have been made under such coverage, with
                          the cumulative amount of such claims exceeding the
                          value of the property.
                ``(2) <<NOTE: Regulations.>>  Multifamily properties.--In
            the case of a property consisting of 5 or more residences, such
            term shall have such meaning as the Director shall by regulation
            provide.''.
                (2) <<NOTE: 42 USC 4014 note.>>  Effective date.--The
            amendments made by paragraph (1) shall become effective 90 days
            after the date of enactment of this Act.

        (b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of the
    National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) is
    amended--
                (1) in clause (ii), by striking ``and'' at the end;
                (2) in clause (iii), by adding ``and'' at the end; and
                (3) by inserting after clause (iii) the following:
                              ``(iv) all costs, as prescribed by principles
                          and standards of practice in ratemaking adopted by
                          the American Academy of Actuaries and the Casualty
                          Actuarial Society, including--
                                        ``(I) an estimate of the expected
                                    value of future costs,
                                        ``(II) all costs associated with the
                                    transfer of risk, and
                                        ``(III) the costs associated with an
                                    individual risk transfer with respect to
                                    risk classes, as defined by the
                                    Administrator,''.

        (c) Increase in Annual Limitation on Premium Increases.--Section
    1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e))
    is amended--
                (1) in the matter preceding paragraph (1)--
                        (A) by striking ``or (3)''; and
                        (B) by inserting ``any properties'' after ``under
                    this title for'';
                (2) in paragraph (1)--
                        (A) by striking ``any properties within any single''
                    and inserting ``within any single''; and
                        (B) by striking ``10 percent'' and inserting ``20
                    percent''; and
                (3) by striking paragraph (2) and inserting the following:
                ``(2) described in subparagraphs (A) through (E) of section
            1307(a)(2) shall be increased by 25 percent each year, until the
            average risk premium rate for such properties is equal

    [[Page 126 STAT. 919]]

            to the average of the risk premium rates for properties
            described under paragraph (1).''.

        (d) Premium Payment Flexibility for New and Existing
    Policyholders.--Section 1308 of the National Flood Insurance Act of 1968
    (42 U.S.C. 4015) is amended by adding at the end the following:
        ``(g) Frequency of Premium Collection.--With respect to any
    chargeable premium rate prescribed under this section, the Administrator
    shall provide policyholders that are not required to escrow their
    premiums and fees for flood insurance as set forth under section 102 of
    the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) with the
    option of paying their premiums either annually or in more frequent
    installments.''.
        (e) <<NOTE: Effective date. 42 USC 4015 note.>>  Rule of
    Construction.--Nothing in this section or the amendments made by this
    section may be construed to affect the requirement under section 2(c) of
    the Act entitled ``An Act to extend the National Flood Insurance
    Program, and for other purposes'', approved May 31, 2012 (Public Law
    112-123), that the first increase in chargeable risk premium rates for
    residential properties which are not the primary residence of an
    individual take effect on July 1, 2012.
    SEC. 100207. PREMIUM ADJUSTMENT.

        Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4015), as amended by section 100205, is further amended by adding at the
    end the following:
        ``(h) Premium Adjustment To Reflect Current Risk of Flood.--
    Notwithstanding <<NOTE: Time period.>> subsection (f), upon the
    effective date of any revised or updated flood insurance rate map under
    this Act, the Flood Disaster Protection Act of 1973, or the Biggert-
    Waters Flood Insurance Reform Act of 2012, any property located in an
    area that is participating in the national flood insurance program shall
    have the risk premium rate charged for flood insurance on such property
    adjusted to accurately reflect the current risk of flood to such
    property, subject to any other provision of this Act. Any increase in
    the risk premium rate charged for flood insurance on any property that
    is covered by a flood insurance policy on the effective date of such an
    update that is a result of such updating shall be phased in over a 5-
    year period, at the rate of 20 percent for each year following such
    effective date. In the case of any area that was not previously
    designated as an area having special flood hazards and that, pursuant to
    any issuance, revision, updating, or other change in a flood insurance
    map, becomes designated as such an area, the chargeable risk premium
    rate for flood insurance under this title that is purchased on or after
    the date of enactment of this subsection with respect to any property
    that is located within such area shall be phased in over a 5-year
    period, at the rate of 20 percent for each year following the effective
    date of such issuance, revision, updating, or change.''.
    SEC. 100208. ENFORCEMENT.

        Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42
    U.S.C. 4012a(f)(5)) is amended--
                (1) in the first sentence, by striking ``$350'' and
            inserting ``$2,000''; and
                (2) by striking the second sentence.

    [[Page 126 STAT. 920]]

    SEC. 100209. ESCROW OF FLOOD INSURANCE PAYMENTS.

        (a) In General.--Paragraph (1) of section 102(d) of the Flood
    Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)) is amended to read
    as follows:
                ``(1) Regulated lending institutions.--
                        ``(A) Federal entities responsible for lending
                    regulations.--Each Federal entity for lending regulation
                    (after consultation and coordination with the Federal
                    Financial Institutions Examination Council) shall, by
                    regulation, direct that all premiums and fees for flood
                    insurance under the National Flood Insurance Act of
                    1968, for improved real estate or a mobile home, shall
                    be paid to the regulated lending institution or servicer
                    for any loan secured by the improved real estate or
                    mobile home, with the same frequency as payments on the
                    loan are made, for the duration of the loan. Except as
                    provided in subparagraph (C), upon receipt of any
                    premiums or fees, the regulated lending institution or
                    servicer shall deposit such premiums and fees in an
                    escrow account on behalf of the borrower. Upon receipt
                    of a notice from the Administrator or the provider of
                    the flood insurance that insurance premiums are due, the
                    premiums deposited in the escrow account shall be paid
                    to the provider of the flood insurance.
                        ``(B) Limitation.--Except as may be required under
                    applicable State law, a Federal entity for lending
                    regulation may not direct or require a regulated lending
                    institution to deposit premiums or fees for flood
                    insurance under the National Flood Insurance Act of 1968
                    in an escrow account on behalf of a borrower under
                    subparagraph (A) or (B), if--
                              ``(i) the regulated lending institution has
                          total assets of less than $1,000,000,000; and
                              ``(ii) on or before the date of enactment of
                          the Biggert-Waters Flood Insurance Reform Act of
                          2012, the regulated lending institution--
                                        ``(I) in the case of a loan secured
                                    by residential improved real estate or a
                                    mobile home, was not required under
                                    Federal or State law to deposit taxes,
                                    insurance premiums, fees, or any other
                                    charges in an escrow account for the
                                    entire term of the loan; and
                                        ``(II) did not have a policy of
                                    consistently and uniformly requiring the
                                    deposit of taxes, insurance premiums,
                                    fees, or any other charges in an escrow
                                    account for loans secured by residential
                                    improved real estate or a mobile
                                    home.''.

        (b) <<NOTE: Time period. 42 USC 4012a note.>>  Applicability.--The
    amendment made by subsection (a) shall apply to any mortgage outstanding
    or entered into on or after the expiration of the 2-year period
    beginning on the date of enactment of this Act.
    SEC. 100210. MINIMUM DEDUCTIBLES FOR CLAIMS UNDER THE NATIONAL
                                  FLOOD INSURANCE PROGRAM.

        Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4019) is amended--
                (1) by striking ``The Director is'' and inserting the
            following:

        ``(a) In General.--The Administrator is''; and

    [[Page 126 STAT. 921]]

                (2) by adding at the end the following:

        ``(b) Minimum Annual Deductible.--
                ``(1) Pre-firm properties.--For any structure which is
            covered by flood insurance under this title, and on which
            construction or substantial improvement occurred on or before
            December 31, 1974, or before the effective date of an initial
            flood insurance rate map published by the Administrator under
            section 1360 for the area in which such structure is located,
            the minimum annual deductible for damage to such structure shall
            be--
                        ``(A) $1,500, if the flood insurance coverage for
                    such structure covers loss of, or physical damage to,
                    such structure in an amount equal to or less than
                    $100,000; and
                        ``(B) $2,000, if the flood insurance coverage for
                    such structure covers loss of, or physical damage to,
                    such structure in an amount greater than $100,000.
                ``(2) Post-firm properties.--For any structure which is
            covered by flood insurance under this title, and on which
            construction or substantial improvement occurred after December
            31, 1974, or after the effective date of an initial flood
            insurance rate map published by the Administrator under section
            1360 for the area in which such structure is located, the
            minimum annual deductible for damage to such structure shall
            be--
                        ``(A) $1,000, if the flood insurance coverage for
                    such structure covers loss of, or physical damage to,
                    such structure in an amount equal to or less than
                    $100,000; and
                        ``(B) $1,250, if the flood insurance coverage for
                    such structure covers loss of, or physical damage to,
                    such structure in an amount greater than $100,000.''.
    SEC. 100211. CONSIDERATIONS IN DETERMINING CHARGEABLE PREMIUM
                                  RATES.

        Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4015), as amended by this Act, is amended--
                (1) in subsection (a), by striking ``, after consultation
            with'' and all that follows through ``by regulation'' and
            inserting ``prescribe, after providing notice'';
                (2) in subsection (b)--
                        (A) in paragraph (1), by striking the period at the
                    end and inserting a semicolon;
                        (B) in paragraph (2), by striking the comma at the
                    end and inserting a semicolon;
                        (C) in paragraph (3), by striking ``, and'' and
                    inserting a semicolon;
                        (D) in paragraph (4), by striking the period at the
                    end and inserting ``; and''; and
                        (E) by adding at the end the following:
                ``(5) adequate, on the basis of accepted actuarial
            principles, to cover the average historical loss year
            obligations incurred by the National Flood Insurance Fund.'';
            and
                (3) by adding at the end the following:

        ``(i) Rule of Construction.--For purposes of this section, the
    calculation of an `average historical loss year'--
                ``(1) includes catastrophic loss years; and
                ``(2) shall be computed in accordance with generally
            accepted actuarial principles.''.

    [[Page 126 STAT. 922]]

    SEC. 100212. RESERVE FUND.

        Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
    4011 et seq.) is amended by inserting after section 1310 (42 U.S.C.
    4017) the following:
    ``SEC. <<NOTE: 42 USC 4017a.>> 1310A. RESERVE FUND.

        ``(a) Establishment of Reserve Fund.--In carrying out the flood
    insurance program authorized by this chapter, the Administrator shall
    establish in the Treasury of the United States a National Flood
    Insurance Reserve Fund (in this section referred to as the `Reserve
    Fund') which shall--
                ``(1) be an account separate from any other accounts or
            funds available to the Administrator; and
                ``(2) be available for meeting the expected future
            obligations of the flood insurance program, including--
                        ``(A) the payment of claims;
                        ``(B) claims adjustment expenses; and
                        ``(C) the repayment of amounts outstanding under any
                    note or other obligation issued by the Administrator
                    under section 1309(a).

        ``(b) Reserve Ratio.--Subject to the phase-in requirements under
    subsection (d), the Reserve Fund shall maintain a balance equal to--
                ``(1) 1 percent of the sum of the total potential loss
            exposure of all outstanding flood insurance policies in force in
            the prior fiscal year; or
                ``(2) such higher percentage as the Administrator determines
            to be appropriate, taking into consideration any circumstance
            that may raise a significant risk of substantial future losses
            to the Reserve Fund.

        ``(c) Maintenance of Reserve Ratio.--
                ``(1) In general.--The Administrator shall have the
            authority to establish, increase, or decrease the amount of
            aggregate annual insurance premiums to be collected for any
            fiscal year necessary--
                        ``(A) to maintain the reserve ratio required under
                    subsection (b); and
                        ``(B) to achieve such reserve ratio, if the actual
                    balance of such reserve is below the amount required
                    under subsection (b).
                ``(2) Considerations.--In exercising the authority granted
            under paragraph (1), the Administrator shall consider--
                        ``(A) the expected operating expenses of the Reserve
                    Fund;
                        ``(B) the insurance loss expenditures under the
                    flood insurance program;
                        ``(C) any investment income generated under the
                    flood insurance program; and
                        ``(D) any other factor that the Administrator
                    determines appropriate.
                ``(3) Limitations.--
                        ``(A) Rates.--In exercising the authority granted
                    under paragraph (1), the Administrator shall be subject
                    to all other provisions of this Act, including any
                    provisions relating to chargeable premium rates or
                    annual increases of such rates.

    [[Page 126 STAT. 923]]

                        ``(B) Use of additional annual insurance premiums.--
                    Notwithstanding any other provision of law or any
                    agreement entered into by the Administrator, the
                    Administrator shall ensure that all amounts attributable
                    to the establishment or increase of annual insurance
                    premiums under paragraph (1) are transferred to the
                    Administrator for deposit into the Reserve Fund, to be
                    available for meeting the expected future obligations of
                    the flood insurance program as described in subsection
                    (a)(2).

        ``(d) Phase-in Requirements.--The phase-in requirements under this
    subsection are as follows:
                ``(1) <<NOTE: Effective date.>>  In general.--Beginning in
            fiscal year 2013 and not ending until the fiscal year in which
            the ratio required under subsection (b) is achieved, in each
            such fiscal year the Administrator shall place in the Reserve
            Fund an amount equal to not less than 7.5 percent of the reserve
            ratio required under subsection (b).
                ``(2) Amount satisfied.--As soon as the ratio required under
            subsection (b) is achieved, and except as provided in paragraph
            (3), the Administrator shall not be required to set aside any
            amounts for the Reserve Fund.
                ``(3) Exception.--If at any time after the ratio required
            under subsection (b) is achieved, the Reserve Fund falls below
            the required ratio under subsection (b), the Administrator shall
            place in the Reserve Fund for that fiscal year an amount equal
            to not less than 7.5 percent of the reserve ratio required under
            subsection (b).

        ``(e) <<NOTE: Determination. Reports.>>  Limitation on Reserve
    Ratio.--In any given fiscal year, if the Administrator determines that
    the reserve ratio required under subsection (b) cannot be achieved, the
    Administrator shall submit a report to Congress that--
                ``(1) describes and details the specific concerns of the
            Administrator regarding the consequences of the reserve ratio
            not being achieved;
                ``(2) demonstrates how such consequences would harm the
            long-term financial soundness of the flood insurance program;
            and
                ``(3) indicates the maximum attainable reserve ratio for
            that particular fiscal year.

        ``(f) Investment.--The Secretary of the Treasury shall invest such
    amounts of the Reserve Fund as the Secretary determines advisable in
    obligations issued or guaranteed by the United States.''.
    SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY.

        (a) Repayment Plan Required.--Section 1309 of the National Flood
    Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding at the end
    the following:
        ``(c) Upon the exercise of the authority established under
    subsection (a), the Administrator shall transmit a schedule for
    repayment of such amounts to--
                ``(1) the Secretary of the Treasury;
                ``(2) the Committee on Banking, Housing, and Urban Affairs
            of the Senate; and
                ``(3) the Committee on Financial Services of the House of
            Representatives.

        ``(d) <<NOTE: Deadline. Reports.>>  In connection with any funds
    borrowed by the Administrator under the authority established in
    subsection (a), the

    [[Page 126 STAT. 924]]

    Administrator, beginning 6 months after the date on which such funds are
    borrowed, and continuing every 6 months thereafter until such borrowed
    funds are fully repaid, shall submit a report on the progress of such
    repayment to--
                ``(1) the Secretary of the Treasury;
                ``(2) the Committee on Banking, Housing, and Urban Affairs
            of the Senate; and
                ``(3) the Committee on Financial Services of the House of
            Representatives.''.

        (b) Report.--Not later than the expiration of the 6-month period
    beginning on the date of enactment of this Act, the Administrator shall
    submit a report to the Congress setting forth options for repaying
    within 10 years all amounts, including any amounts previously borrowed
    but not yet repaid, owed pursuant to clause (2) of subsection (a) of
    section 1309 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4016(a)(2)).
    SEC. 100214. PAYMENT OF CONDOMINIUM CLAIMS.

        Section 1312 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4019), as amended by section 100210, is amended by adding at the end the
    following:
        ``(c) Payment of Claims to Condominium Owners.--The Administrator
    may not deny payment for any damage to or loss of property which is
    covered by flood insurance to condominium owners who purchased such
    flood insurance separate and apart from the flood insurance purchased by
    the condominium association in which such owner is a member, based
    solely, or in any part, on the flood insurance coverage of the
    condominium association or others on the overall property owned by the
    condominium association.''.
    SEC. 100215. <<NOTE: 42 USC 4101a.>> TECHNICAL MAPPING ADVISORY
                                  COUNCIL.

        (a) Establishment.--There is established a council to be known as
    the Technical Mapping Advisory Council (in this section referred to as
    the ``Council'').
        (b) Membership.--
                (1) In general.--The Council shall consist of--
                        (A) the Administrator (or the designee thereof);
                        (B) the Secretary of the Interior (or the designee
                    thereof);
                        (C) the Secretary of Agriculture (or the designee
                    thereof);
                        (D) the Under Secretary of Commerce for Oceans and
                    Atmosphere (or the designee thereof); and
                        (E) 16 additional members appointed by the
                    Administrator or the designee of the Administrator, who
                    shall be--
                              (i) a member of a recognized professional
                          surveying association or organization;
                              (ii) a member of a recognized professional
                          mapping association or organization;
                              (iii) a member of a recognized professional
                          engineering association or organization;
                              (iv) a member of a recognized professional
                          association or organization representing flood
                          hazard determination firms;
                              (v) a representative of the United States
                          Geological Survey;

    [[Page 126 STAT. 925]]

                              (vi) a representative of a recognized
                          professional association or organization
                          representing State geographic information;
                              (vii) a representative of State national flood
                          insurance coordination offices;
                              (viii) a representative of the Corps of
                          Engineers;
                              (ix) a member of a recognized regional flood
                          and storm water management organization;
                              (x) 2 representatives of different State
                          government agencies that have entered into
                          cooperating technical partnerships with the
                          Administrator and have demonstrated the capability
                          to produce flood insurance rate maps;
                              (xi) 2 representatives of different local
                          government agencies that have entered into
                          cooperating technical partnerships with the
                          Administrator and have demonstrated the capability
                          to produce flood insurance maps;
                              (xii) a member of a recognized floodplain
                          management association or organization;
                              (xiii) a member of a recognized risk
                          management association or organization; and
                              (xiv) a State mitigation officer.
                (2) Qualifications.--Members of the Council shall be
            appointed based on their demonstrated knowledge and competence
            regarding surveying, cartography, remote sensing, geographic
            information systems, or the technical aspects of preparing and
            using flood insurance rate maps. In appointing members under
            paragraph (1)(E), the Administrator shall, to the maximum extent
            practicable, ensure that the membership of the Council has a
            balance of Federal, State, local, tribal, and private members,
            and includes geographic diversity, including representation from
            areas with coastline on the Gulf of Mexico and other States
            containing areas identified by the Administrator as at high risk
            for flooding or as areas having special flood hazards.

        (c) <<NOTE: Recommenda- tions.>>  Duties.--The Council shall--
                (1) recommend to the Administrator how to improve in a cost-
            effective manner the--
                        (A) accuracy, general quality, ease of use, and
                    distribution and dissemination of flood insurance rate
                    maps and risk data; and
                        (B) performance metrics and milestones required to
                    effectively and efficiently map flood risk areas in the
                    United States;
                (2) recommend to the Administrator mapping standards and
            guidelines for--
                        (A) flood insurance rate maps; and
                        (B) data accuracy, data quality, data currency, and
                    data eligibility;
                (3) recommend to the Administrator how to maintain, on an
            ongoing basis, flood insurance rate maps and flood risk
            identification;
                (4) recommend procedures for delegating mapping activities
            to State and local mapping partners;
                (5) recommend to the Administrator and other Federal
            agencies participating in the Council--

    [[Page 126 STAT. 926]]

                        (A) methods for improving interagency and
                    intergovernmental coordination on flood mapping and
                    flood risk determination; and
                        (B) a funding strategy to leverage and coordinate
                    budgets and expenditures across Federal agencies; and
                (6) <<NOTE: Deadline. Reports.>> submit an annual report to
            the Administrator that contains--
                        (A) a description of the activities of the Council;
                        (B) an evaluation of the status and performance of
                    flood insurance rate maps and mapping activities to
                    revise and update flood insurance rate maps, as required
                    under section 100216; and
                        (C) a summary of recommendations made by the Council
                    to the Administrator.

        (d) Future Conditions Risk Assessment and Modeling Report.--
                (1) <<NOTE: Consultation.>>  In general.--The Council shall
            consult with scientists and technical experts, other Federal
            agencies, States, and local communities to--
                        (A) develop recommendations on how to--
                              (i) ensure that flood insurance rate maps
                          incorporate the best available climate science to
                          assess flood risks; and
                              (ii) ensure that the Federal Emergency
                          Management Agency uses the best available
                          methodology to consider the impact of--
                                        (I) the rise in the sea level; and
                                        (II) future development on flood
                                    risk; and
                        (B) not later than 1 year after the date of
                    enactment of this Act, prepare written recommendations
                    in a future conditions risk assessment and modeling
                    report and to submit such recommendations to the
                    Administrator.
                (2) Responsibility of the administrator.--The Administrator,
            as part of the ongoing program to review and update National
            Flood Insurance Program rate maps under section 100216, shall
            incorporate any future risk assessment submitted under paragraph
            (1)(B) in any such revision or update.

        (e) Chairperson.--The members of the Council shall elect 1 member to
    serve as the chairperson of the Council (in this section referred to as
    the ``Chairperson'').
        (f) Coordination.--To ensure that the Council's recommendations are
    consistent, to the maximum extent practicable, with national digital
    spatial data collection and management standards, the Chairperson shall
    consult with the Chairperson of the Federal Geographic Data Committee
    (established pursuant to Office of Management and Budget Circular A-16).
        (g) Compensation.--Members of the Council shall receive no
    additional compensation by reason of their service on the Council.
        (h) Meetings and Actions.--
                (1) In general.--The Council shall meet not less frequently
            than twice each year at the request of the Chairperson or a
            majority of its members, and may take action by a vote of the
            majority of the members.
                (2) Initial meeting.--The Administrator, or a person
            designated by the Administrator, shall request and coordinate
            the initial meeting of the Council.

    [[Page 126 STAT. 927]]

        (i) Officers.--The Chairperson may appoint officers to assist in
    carrying out the duties of the Council under subsection (c).
        (j) Staff.--
                (1) Staff of fema.--Upon the request of the Chairperson, the
            Administrator may detail, on a nonreimbursable basis, personnel
            of the Federal Emergency Management Agency to assist the Council
            in carrying out its duties.
                (2) Staff of other federal agencies.--Upon request of the
            Chairperson, any other Federal agency that is a member of the
            Council may detail, on a nonreimbursable basis, personnel to
            assist the Council in carrying out its duties.

        (k) Powers.--In carrying out this section, the Council may hold
    hearings, receive evidence and assistance, provide information, and
    conduct research, as it considers appropriate.
        (l) Report to Congress.--The Administrator, on an annual basis,
    shall report to the Committee on Banking, Housing, and Urban Affairs of
    the Senate, the Committee on Financial Services of the House of
    Representatives, and the Office of Management and Budget on the--
                (1) recommendations made by the Council;
                (2) actions taken by the Federal Emergency Management Agency
            to address such recommendations to improve flood insurance rate
            maps and flood risk data; and
                (3) any recommendations made by the Council that have been
            deferred or not acted upon, together with an explanatory
            statement.
    SEC. <<NOTE: 42 USC 4101b.>> 100216. NATIONAL FLOOD MAPPING
                                  PROGRAM.

        (a) Reviewing, Updating, and Maintaining Maps.--The Administrator,
    in coordination with the Technical Mapping Advisory Council established
    under section 100215, shall establish an ongoing program under which the
    Administrator shall review, update, and maintain National Flood
    Insurance Program rate maps in accordance with this section.
        (b) Mapping.--
                (1) In general.--In carrying out the program established
            under subsection (a), the Administrator shall--
                        (A) identify, review, update, maintain, and publish
                    National Flood Insurance Program rate maps with respect
                    to--
                              (i) all populated areas and areas of possible
                          population growth located within the 100-year
                          floodplain;
                              (ii) all populated areas and areas of possible
                          population growth located within the 500-year
                          floodplain;
                              (iii) areas of residual risk, including areas
                          that are protected by levees, dams, and other
                          flood control structures;
                              (iv) areas that could be inundated as a result
                          of the failure of a levee, dam, or other flood
                          control structure; and
                              (v) the level of protection provided by flood
                          control structures;
                        (B) establish or update flood-risk zone data in all
                    such areas, and make estimates with respect to the rates
                    of probable flood caused loss for the various flood risk
                    zones for each such area; and

    [[Page 126 STAT. 928]]

                        (C) use, in identifying, reviewing, updating,
                    maintaining, or publishing any National Flood Insurance
                    Program rate map required under this section or under
                    the National Flood Insurance Act of 1968 (42 U.S.C. 4011
                    et seq.), the most accurate topography and elevation
                    data available.
                (2) Mapping elements.--Each map updated under this section
            shall--
                        (A) assess the accuracy of current ground elevation
                    data used for hydrologic and hydraulic modeling of
                    flooding sources and mapping of the flood hazard and
                    wherever necessary acquire new ground elevation data
                    utilizing the most up-to-date geospatial technologies in
                    accordance with guidelines and specifications of the
                    Federal Emergency Management Agency; and
                        (B) develop National Flood Insurance Program flood
                    data on a watershed basis--
                              (i) to provide the most technically effective
                          and efficient studies and hydrologic and hydraulic
                          modeling; and
                              (ii) to eliminate, to the maximum extent
                          possible, discrepancies in base flood elevations
                          between adjacent political subdivisions.
                (3) Other inclusions.--In updating maps under this section,
            the Administrator shall include--
                        (A) any relevant information on coastal inundation
                    from--
                              (i) an applicable inundation map of the Corps
                          of Engineers; and
                              (ii) data of the National Oceanic and
                          Atmospheric Administration relating to storm surge
                          modeling;
                        (B) any relevant information of the United States
                    Geological Survey on stream flows, watershed
                    characteristics, and topography that is useful in the
                    identification of flood hazard areas, as determined by
                    the Administrator;
                        (C) any relevant information on land subsidence,
                    coastal erosion areas, changing lake levels, and other
                    flood-related hazards;
                        (D) any relevant information or data of the National
                    Oceanic and Atmospheric Administration and the United
                    States Geological Survey relating to the best available
                    science regarding future changes in sea levels,
                    precipitation, and intensity of hurricanes; and
                        (E) any other relevant information as may be
                    recommended by the Technical Mapping Advisory Committee.

        (c) Standards.--In updating and maintaining maps under this section,
    the Administrator shall--
                (1) establish standards to--
                        (A) ensure that maps are adequate for--
                              (i) flood risk determinations; and
                              (ii) use by State and local governments in
                          managing development to reduce the risk of
                          flooding; and
                        (B) facilitate identification and use of consistent
                    methods of data collection and analysis by the
                    Administrator, in conjunction with State and local
                    governments, in developing maps for communities with
                    similar flood risks, as determined by the Administrator;
                    and

    [[Page 126 STAT. 929]]

                (2) publish maps in a format that is--
                        (A) digital geospatial data compliant;
                        (B) compliant with the open publishing and data
                    exchange standards established by the Open Geospatial
                    Consortium; and
                        (C) aligned with official data defined by the
                    National Geodetic Survey.

        (d) Communication and Outreach.--
                (1) In general.--The Administrator shall--
                        (A) work to enhance communication and outreach to
                    States, local communities, and property owners about the
                    effects--
                              (i) of any potential changes to National Flood
                          Insurance Program rate maps that may result from
                          the mapping program required under this section;
                          and
                              (ii) that any such changes may have on flood
                          insurance purchase requirements;
                        (B) engage with local communities to enhance
                    communication and outreach to the residents of such
                    communities, including tenants (with regard to contents
                    insurance), on the matters described under subparagraph
                    (A); and
                        (C) <<NOTE: Notification.>>  upon the issuance of
                    any proposed map and any notice of an opportunity to
                    make an appeal relating to the proposed map, notify the
                    Senators for each State affected and each Member of the
                    House of Representatives for each congressional district
                    affected by the proposed map of any action taken by the
                    Administrator with respect to the proposed map or an
                    appeal relating to the proposed map.
                (2) Required activities.--The communication and outreach
            activities required under paragraph (1) shall include--
                        (A) <<NOTE: Notification.>>  notifying property
                    owners when their properties become included in, or when
                    they are excluded from, an area covered by the mandatory
                    flood insurance purchase requirement under section 102
                    of the Flood Disaster Protection Act of 1973 (42 U.S.C.
                    4012a);
                        (B) educating property owners regarding the flood
                    risk and reduction of this risk in their community,
                    including the continued flood risks to areas that are no
                    longer subject to the flood insurance mandatory purchase
                    requirement;
                        (C) educating property owners regarding the benefits
                    and costs of maintaining or acquiring flood insurance,
                    including, where applicable, lower-cost preferred risk
                    policies under the National Flood Insurance Act of 1968
                    (42 U.S.C. 4011 et seq.) for such properties and the
                    contents of such properties;
                        (D) educating property owners about flood map
                    revisions and the process available to such owners to
                    appeal proposed changes in flood elevations through
                    their community, including by notifying local radio and
                    television stations; and
                        (E) encouraging property owners to maintain or
                    acquire flood insurance coverage.

        (e) Community Remapping Request.--Upon the adoption by the
    Administrator of any recommendation by the Technical Mapping Advisory
    Council for reviewing, updating, or maintaining National Flood Insurance
    Program rate maps in accordance with this section,

    [[Page 126 STAT. 930]]

    a community that believes that its flood insurance rates in effect prior
    to adoption would be affected by the adoption of such recommendation may
    submit a request for an update of its rate maps, which may be considered
    at the Administrator's sole discretion. The
    Administrator <<NOTE: Protocol. Evaluation.>> shall establish a protocol
    for the evaluation of such community map update requests.

        (f) Authorization of Appropriations.--There is authorized to be
    appropriated to the Administrator to carry out this section $400,000,000
    for each of fiscal years 2013 through 2017.
    SEC. 100217. SCOPE OF APPEALS.

        Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4104) is amended--
                (1) in subsection (a)--
                        (A) by inserting ``and designating areas having
                    special flood hazards'' after ``flood elevations''; and
                        (B) by striking ``such determinations'' and
                    inserting ``such determinations and designations''; and
                (2) in subsection (b)--
                        (A) in the first sentence, by inserting ``and
                    designations of areas having special flood hazards''
                    after ``flood elevation determinations''; and
                        (B) by amending the third sentence to read as
                    follows: ``The sole grounds for appeal shall be the
                    possession of knowledge or information indicating that
                    (1) the elevations being proposed by the Administrator
                    with respect to an identified area having special flood
                    hazards are scientifically or technically incorrect, or
                    (2) the designation of an identified special flood
                    hazard area is scientifically or technically
                    incorrect.''.
    SEC. 100218. SCIENTIFIC RESOLUTION PANEL.

        (a) Establishment.--Chapter III of the National Flood Insurance Act
    of 1968 (42 U.S.C. 4101 et seq.) is amended by inserting after section
    1363 (42 U.S.C. 4104) the following:
    ``SEC. 1363A. <<NOTE: 42 USC 4104-1.>> SCIENTIFIC RESOLUTION
                                PANEL.

        ``(a) Availability.--
                ``(1) In general.--Pursuant to the authority provided under
            section 1363(e), the Administrator shall make available an
            independent review panel, to be known as the Scientific
            Resolution Panel, to any community--
                        ``(A) that has--
                              ``(i) filed a timely map appeal in accordance
                          with section 1363;
                              ``(ii) completed 60 days of consultation with
                          the Federal Emergency Management Agency on the
                          appeal; and
                              ``(iii) not allowed more than 120 days, or
                          such longer period as may be provided by the
                          Administrator by waiver, to pass since the end of
                          the appeal period; or
                        ``(B) that has received an unsatisfactory ruling
                    under the map revision process established pursuant to
                    section 1360(f).
                ``(2) Appeals by owners and lessees.--If a community and an
            owner or lessee of real property within the community

    [[Page 126 STAT. 931]]

            appeal a proposed determination of a flood elevation under
            section 1363(b), upon the request of the community--
                        ``(A) the owner or lessee shall submit scientific
                    and technical data relating to the appeals to the
                    Scientific Resolution Panel; and
                        ``(B) <<NOTE: Determination.>>  the Scientific
                    Resolution Panel shall make a determination with respect
                    to the appeals in accordance with subsection (c).
                ``(3) Definition.--For purposes of paragraph (1)(B), an
            `unsatisfactory ruling' means that a community--
                        ``(A) received a revised Flood Insurance Rate Map
                    from the Federal Emergency Management Agency, via a
                    Letter of Final Determination, after September 30, 2008,
                    and prior to the date of enactment of this section;
                        ``(B) has subsequently applied for a Letter of Map
                    Revision or Physical Map Revision with the Federal
                    Emergency Management Agency; and
                        ``(C) has received an unfavorable ruling on their
                    request for a map revision.

        ``(b) Membership.--The Scientific Resolution Panel made available
    under subsection (a) shall consist of 5 members with expertise that
    relates to the creation and study of flood hazard maps and flood
    insurance. The Scientific Resolution Panel may include representatives
    from Federal agencies not involved in the mapping study in question and
    from other impartial experts. Employees of the Federal Emergency
    Management Agency may not serve on the Scientific Resolution Panel.
        ``(c) Determination.--
                ``(1) <<NOTE: Deadline.>>  In general.--Following
            deliberations, and not later than 90 days after its formation,
            the Scientific Resolution Panel shall issue a determination of
            resolution of the dispute. Such determination shall set forth
            recommendations for the base flood elevation determination or
            the designation of an area having special flood hazards that
            shall be reflected in the Flood Insurance Rate Maps.
                ``(2) Basis.--The determination of the Scientific Resolution
            Panel shall be based on--
                        ``(A) data previously provided to the Administrator
                    by the community, and, in the case of a dispute
                    submitted under subsection (a)(2), an owner or lessee of
                    real property in the community; and
                        ``(B) data provided by the Administrator.
                ``(3) No alternative determinations permissible.--The
            Scientific Resolution Panel--
                        ``(A) shall provide a determination of resolution of
                    a dispute that--
                              ``(i) is either in favor of the Administrator
                          or in favor of the community on each distinct
                          element of the dispute; or
                              ``(ii) in the case of a dispute submitted
                          under subsection (a)(2), is in favor of the
                          Administrator, in favor of the community, or in
                          favor of the owner or lessee of real property in
                          the community on each distinct element of the
                          dispute; and
                        ``(B) may not offer as a resolution any other
                    alternative determination.
                ``(4) Effect of determination.--

    [[Page 126 STAT. 932]]

                        ``(A) Binding.--The recommendations of the
                    Scientific Resolution Panel shall be binding on all
                    appellants and not subject to further judicial review
                    unless the Administrator determines that implementing
                    the determination of the panel would--
                              ``(i) pose a significant threat due to failure
                          to identify a substantial risk of special flood
                          hazards; or
                              ``(ii) violate applicable law.
                        ``(B) <<NOTE: Deadline.>>  Written justification not
                    to enforce.--If the Administrator elects not to
                    implement the determination of the Scientific Resolution
                    Panel pursuant to subparagraph (A), then not later than
                    60 days after the issuance of the determination, the
                    Administrator shall issue a written justification
                    explaining such election.
                        ``(C) Appeal of determination not to enforce.--If
                    the Administrator elects not to implement the
                    determination of the Scientific Resolution Panel
                    pursuant to subparagraph (A), the community may appeal
                    the determination of the Administrator as provided for
                    under section 1363(g).

        ``(d) Maps Used for Insurance and Mandatory Purchase Requirements.--
    With respect to any community that has a dispute that is being
    considered by the Scientific Resolution Panel formed pursuant to this
    subsection, the Federal Emergency Management Agency shall ensure that
    for each such community that--
                ``(1) the Flood Insurance Rate Map described in the most
            recently issued Letter of Final Determination shall be in force
            and effect with respect to such community; and
                ``(2) flood insurance shall continue to be made available to
            the property owners and residents of the participating
            community.''.

        (b) <<NOTE: 42 USC 4104.>>  Conforming Amendments.--
                (1) Administrative review.--Section 1363(e) of the National
            Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended, in
            the second sentence, by striking ``an independent scientific
            body or appropriate Federal agency for advice'' and inserting
            ``the Scientific Resolution Panel provided for in section
            1363A''.
                (2) Judicial review.--The first sentence of section 1363(g)
            of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g))
            is amended by striking ``Any appellant'' and inserting ``Except
            as provided in section 1363A, any appellant''.
    SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR
                                  UPDATING FLOOD MAPS.

        Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42
    U.S.C. 4101(f)(2)) is amended by striking ``, but which may not exceed
    50 percent of the cost of carrying out the requested revision or
    update''.
    SEC. <<NOTE: 42 USC 4101c.>> 100220. COORDINATION.

        (a) Interagency Budget Crosscut and Coordination Report.--
                (1) In general.--The Secretary of Homeland Security, the
            Administrator, the Director of the Office of Management and
            Budget, and the heads of each Federal department or agency
            carrying out activities under sections 100215 and 100216 shall
            work together to ensure that flood risk determination data and
            geospatial data are shared among Federal agencies in

    [[Page 126 STAT. 933]]

            order to coordinate the efforts of the Nation to reduce its
            vulnerability to flooding hazards.
                (2) <<NOTE: Certification.>>  Report.--Not later than 30
            days after the submission of the budget of the United States
            Government by the President to Congress, the Director of the
            Office of Management and Budget, in coordination with the
            Federal Emergency Management Agency, the United States
            Geological Survey, the National Oceanic and Atmospheric
            Administration, the Corps of Engineers, and other Federal
            agencies, as appropriate, shall submit to the appropriate
            authorizing and appropriating committees of the Senate and the
            House of Representatives an interagency budget crosscut and
            coordination report, certified by the Secretary or head of each
            such agency, that--
                        (A) contains an interagency budget crosscut report
                    that displays relevant sections of the budget proposed
                    for each of the Federal agencies working on flood risk
                    determination data and digital elevation models,
                    including any planned interagency or intra-agency
                    transfers; and
                        (B) describes how the efforts aligned with such
                    sections complement one another.

        (b) Duties of the Administrator.--In carrying out sections 100215
    and 100216, the Administrator shall--
                (1) participate, pursuant to section 216 of the E-Government
            Act of 2002 (44 U.S.C. 3501 note), in the establishment of such
            standards and common protocols as are necessary to assure the
            interoperability of geospatial data for all users of such
            information;
                (2) coordinate with, seek assistance and cooperation of, and
            provide a liaison to the Federal Geographic Data Committee
            pursuant to the Office of Management and Budget Circular A-16
            and Executive Order 12906 (43 U.S.C. 1457 note; relating to the
            National Spatial Data Infrastructure) for the implementation of
            and compliance with such standards;
                (3) integrate with, leverage, and coordinate funding of, to
            the maximum extent practicable, the current flood mapping
            activities of each unit of State and local government;
                (4) integrate with, leverage, and coordinate, to the maximum
            extent practicable, the current geospatial activities of other
            Federal agencies and units of State and local government; and
                (5) develop a funding strategy to leverage and coordinate
            budgets and expenditures, and to maintain or establish joint
            funding and other agreement mechanisms with other Federal
            agencies and units of State and local government to share in the
            collection and utilization of geospatial data among all
            governmental users.
    SEC. 100221. INTERAGENCY COORDINATION STUDY.

        (a) <<NOTE: Contracts.>>  In General.--The Administrator shall enter
    into a contract with the National Academy of Public Administration to
    conduct a study on how the Federal Emergency Management Agency--
                (1) should improve interagency and intergovernmental
            coordination on flood mapping, including a funding strategy to
            leverage and coordinate budgets and expenditures; and
                (2) can establish joint funding mechanisms with other
            Federal agencies and units of State and local government to
            share

    [[Page 126 STAT. 934]]

            the collection and utilization of data among all governmental
            users.

        (b) <<NOTE: Reports.>>  Timing.--A contract entered into under
    subsection (a) shall require that, not later than 180 days after the
    date of enactment of this subtitle, the National Academy of Public
    Administration shall report the findings of the study required under
    subsection (a) to--
                (1) the Committee on Banking, Housing, and Urban Affairs of
            the Senate;
                (2) the Committee on Financial Services of the House of
            Representatives;
                (3) the Committee on Appropriations of the Senate; and
                (4) the Committee on Appropriations of the House of
            Representatives.
    SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

        Section 5(b) of the Real Estate Settlement Procedures Act of 1974
    (12 U.S.C. 2604(b)), as amended by section 1450 of the Dodd-Frank Wall
    Street Reform and Consumer Protection Act (Public Law 111-203; 124 Stat.
    2174), is amended by adding at the end the following:
                ``(14) An explanation of flood insurance and the
            availability of flood insurance under the National Flood
            Insurance Program or from a private insurance company, whether
            or not the real estate is located in an area having special
            flood hazards.''.
    SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION
                                  PROGRAMS.

        Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
    4011 et seq.) is amended by inserting after section 1313 (42 U.S.C.
    4020) the following:
    ``SEC. 1314. <<NOTE: 42 USC 4021.>> PARTICIPATION IN STATE
                              DISASTER CLAIMS MEDIATION PROGRAMS.

        ``(a) Requirement To Participate.--In the case of the occurrence of
    a major disaster, as defined in section 102 of the Robert T. Stafford
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122), that may
    have resulted in flood damage covered under the national flood insurance
    program established under this title and other personal lines
    residential property insurance coverage offered by a State regulated
    insurer, upon a request made by the insurance commissioner of a State
    (or such other official responsible for regulating the business of
    insurance in the State) for the participation of representatives of the
    Administrator in a program sponsored by such State for nonbinding
    mediation of insurance claims resulting from a major disaster, the
    Administrator shall cause representatives of the national flood
    insurance program to participate in such a State program where claims
    under the national flood insurance program are involved to expedite
    settlement of flood damage claims resulting from such disaster.
        ``(b) Extent of Participation.--In satisfying the requirements of
    subsection (a), the Administrator shall require that each representative
    of the Administrator--
                ``(1) <<NOTE: Certification.>>  be certified for purposes of
            the national flood insurance program to settle claims against
            such program resulting from such disaster in amounts up to the
            limits of policies under such program;

    [[Page 126 STAT. 935]]

                ``(2) <<NOTE: Mediation.>>  attend State-sponsored mediation
            meetings regarding flood insurance claims resulting from such
            disaster at such times and places as may be arranged by the
            State;
                ``(3) participate in good-faith negotiations toward the
            settlement of such claims with policyholders of coverage made
            available under the national flood insurance program; and
                ``(4) finalize the settlement of such claims on behalf of
            the national flood insurance program with such policyholders.

        ``(c) Coordination.--Representatives of the Administrator shall at
    all times coordinate their activities with insurance officials of the
    State and representatives of insurers for the purposes of consolidating
    and expediting settlement of claims under the national flood insurance
    program resulting from such disaster.
        ``(d) Qualifications of Mediators.--Each State mediator
    participating in State-sponsored mediation under this section shall be--
                ``(1)(A) a member in good standing of the State bar in the
            State in which the mediation is to occur with at least 2 years
            of practical experience; and
                ``(B) an active member of such bar for at least 1 year prior
            to the year in which such mediator's participation is sought; or
                ``(2) a retired trial judge from any United States
            jurisdiction who was a member in good standing of the bar in the
            State in which the judge presided for at least 5 years prior to
            the year in which such mediator's participation is sought.

        ``(e) Mediation Proceedings and Documents Privileged.--As a
    condition of participation, all statements made and documents produced
    pursuant to State-sponsored mediation involving representatives of the
    Administrator shall be deemed privileged and confidential settlement
    negotiations made in anticipation of litigation.
        ``(f) Liability, Rights, or Obligations Not Affected.--Participation
    in State-sponsored mediation, as described in this section does not--
                ``(1) affect or expand the liability of any party in
            contract or in tort; or
                ``(2) affect the rights or obligations of the parties, as
            established--
                        ``(A) in any regulation issued by the Administrator,
                    including any regulation relating to a standard flood
                    insurance policy;
                        ``(B) under this title; and
                        ``(C) under any other provision of Federal law.

        ``(g) Exclusive Federal Jurisdiction.--Participation in State-
    sponsored mediation shall not alter, change, or modify the original
    exclusive jurisdiction of United States courts, as set forth in this
    title.
        ``(h) Cost Limitation.--Nothing in this section shall be construed
    to require the Administrator or a representative of the Administrator to
    pay additional mediation fees relating to flood insurance claims
    associated with a State-sponsored mediation program in which such
    representative of the Administrator participates.
        ``(i) Exception.--In the case of the occurrence of a major disaster
    that results in flood damage claims under the national flood

    [[Page 126 STAT. 936]]

    insurance program and that does not result in any loss covered by a
    personal lines residential property insurance policy--
                ``(1) this section shall not apply; and
                ``(2) the provisions of the standard flood insurance policy
            under the national flood insurance program and the appeals
            process established under section 205 of the Bunning-Bereuter-
            Blumenauer Flood Insurance Reform Act of 2004 (42 U.S.C. 4011
            note) and the regulations issued pursuant to such section shall
            apply exclusively.

        ``(j) <<NOTE: Definition.>>  Representatives of the Administrator.--
    For purposes of this section, the term `representatives of the
    Administrator' means representatives of the national flood insurance
    program who participate in the appeals process established under section
    205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of
    2004 (42 U.S.C. 4011 note).''.
    SEC. 100224. <<NOTE: 42 USC 4081 note.>> OVERSIGHT AND EXPENSE
                                  REIMBURSEMENTS OF INSURANCE
                                  COMPANIES.

        (a) Submission of Biennial Reports.--
                (1) To the administrator.--Not later than 20 days after the
            date of enactment of this Act, each property and casualty
            insurance company participating in the Write Your Own program
            shall submit to the Administrator any biennial report required
            by the Federal Emergency Management Agency to be prepared in the
            prior 5 years by such company.
                (2) To gao.--Not later than 10 days after the submission of
            the biennial reports under paragraph (1), the Administrator
            shall submit all such reports to the Comptroller General of the
            United States.
                (3) Notice to congress of failure to comply.--The
            Administrator shall notify and report to the Committee on
            Banking, Housing, and Urban Affairs of the Senate and the
            Committee on Financial Services of the House of Representatives
            on any property and casualty insurance company participating in
            the Write Your Own program that failed to submit its biennial
            reports as required under paragraph (1).
                (4) Failure to comply.--A property and casualty insurance
            company participating in the Write Your Own program which fails
            to comply with the reporting requirement under this subsection
            or the requirement under section 62.23(j)(1) of title 44, Code
            of Federal Regulations (relating to biennial audit of the flood
            insurance financial statements) shall be subject to a civil
            penalty in an amount of not more than $1,000 per day for each
            day that the company remains in noncompliance with either such
            requirement.

        (b) Methodology To Determine Reimbursed Expenses.--Not later
    than <<NOTE: Deadline.>> 180 days after the date of enactment of this
    Act, the Administrator shall develop a methodology for determining the
    appropriate amounts that property and casualty insurance companies
    participating in the Write Your Own program should be reimbursed for
    selling, writing, and servicing flood insurance policies and adjusting
    flood insurance claims on behalf of the National Flood Insurance
    Program. The methodology shall be developed using actual expense data
    for the flood insurance line and can be derived from--
                (1) flood insurance expense data produced by the property
            and casualty insurance companies;

    [[Page 126 STAT. 937]]

                (2) flood insurance expense data collected by the National
            Association of Insurance Commissioners; or
                (3) a combination of the methodologies described in
            paragraphs (1) and (2).

        (c) Submission of Expense Reports.--To develop the methodology
    established under subsection (b), the Administrator may require each
    property and casualty insurance company participating in the Write Your
    Own program to submit a report to the Administrator, in a format
    determined by the Administrator and within 60 days of the request, that
    details the expense levels of each such company for selling, writing,
    and servicing standard flood insurance policies and adjusting and
    servicing claims.
        (d) FEMA Rulemaking on Reimbursement of Expenses Under the Write
    Your Own Program.--Not later than <<NOTE: Deadline.>> 12 months after
    the date of enactment of this Act, the Administrator shall issue a rule
    to formulate revised expense reimbursements to property and casualty
    insurance companies participating in the Write Your Own program for
    their expenses (including their operating and administrative expenses
    for adjustment of claims) in selling, writing, and servicing standard
    flood insurance policies, including how such companies shall be
    reimbursed in both catastrophic and noncatastrophic years. Such
    reimbursements shall be structured to ensure reimbursements track the
    actual expenses, including standard business costs and operating
    expenses, of such companies as closely as practicably possible.

        (e) Report of the Administrator.--Not later than 60 days after the
    effective date of the final rule issued pursuant to subsection (d), the
    Administrator shall submit to the Committee on Banking, Housing, and
    Urban Affairs of the Senate and the Committee on Financial Services of
    the House of Representatives a report containing--
                (1) the specific rationale and purposes of such rule;
                (2) the reasons for the adoption of the policies contained
            in such rule; and
                (3) the degree to which such rule accurately represents the
            true operating costs and expenses of property and casualty
            insurance companies participating in the Write Your Own program.

        (f) GAO Study and Report on Expenses of Write Your Own Program.--
                (1) Study.--Not later than 180 days after the effective date
            of the final rule issued pursuant to subsection (d), the
            Comptroller General of the United States shall--
                        (A) conduct a study on the efficacy, adequacy, and
                    sufficiency of the final rules issued pursuant to
                    subsection (d); and
                        (B) report to the Committee on Banking, Housing, and
                    Urban Affairs of the Senate and the Committee on
                    Financial Services of the House of Representatives on
                    the findings of the study conducted under subparagraph
                    (A).
                (2) GAO authority.--In conducting the study and report
            required under paragraph (1), the Comptroller General--
                        (A) may use any previous findings, studies, or
                    reports that the Comptroller General previously
                    completed on the Write Your Own program;
                        (B) <<NOTE: Determination.>>  shall determine if--

    [[Page 126 STAT. 938]]

                              (i) the final rule issued pursuant to
                          subsection (d) allows the Federal Emergency
                          Management Agency to access adequate information
                          regarding the actual expenses of property and
                          casualty insurance companies participating in the
                          Write Your Own program; and
                              (ii) the actual reimbursements paid out under
                          the final rule issued pursuant to subsection (d)
                          accurately reflect the expenses reported by
                          property and casualty insurance companies
                          participating in the Write Your Own program,
                          including the standard business costs and
                          operating expenses of such companies; and
                        (C) shall analyze the effect of the final rule
                    issued pursuant to subsection (d) on the level of
                    participation of property and casualty insurers in the
                    Write Your Own program.
    SEC. 100225. MITIGATION.

        (a) Mitigation Assistance Grants.--Section 1366 of the National
    Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended--
                (1) by striking subsections (b), (d), (f), (g), (h), (k),
            and (m);
                (2) by redesignating subsections (c), (e), (i), and (j) as
            subsections (b), (c), (e), and (f), respectively;
                (3) in subsection (a), by striking the last sentence and
            inserting the following: ``Such financial assistance shall be
            made available--
                ``(1) to States and communities in the form of grants under
            this section for carrying out mitigation activities;
                ``(2) to States and communities in the form of grants under
            this section for carrying out mitigation activities that reduce
            flood damage to severe repetitive loss structures; and
                ``(3) to property owners in the form of direct grants under
            this section for carrying out mitigation activities that reduce
            flood damage to individual structures for which 2 or more claim
            payments for losses have been made under flood insurance
            coverage under this title if the Administrator, after
            consultation with the State and community, determines that
            neither the State nor community in which such a structure is
            located has the capacity to manage such grants.'';
                (4) in subsection (b), as so redesignated, in the first
            sentence--
                        (A) by striking ``and provides protection against''
                    and inserting ``provides for reduction of''; and
                        (B) by inserting before the period at the end the
                    following: ``, and may be included in a multihazard
                    mitigation plan'';
                (5) in subsection (c), as so redesignated--
                        (A) in paragraph (1), by striking ``(1) Use of
                    amounts.--'' and all that follows through the end of the
                    first sentence and inserting the following:
                ``(1) Requirement of consistency with approved mitigation
            plan.--Amounts provided under this section may be used only for
            mitigation activities that are consistent with mitigation plans
            that are approved by the Administrator and identified under
            paragraph (4).'';

    [[Page 126 STAT. 939]]

                        (B) by striking paragraphs (2), (3), and (4) and
                    inserting the following new paragraphs:
                ``(2) Requirements of technical feasibility, cost
            effectiveness, and interest of national flood insurance fund.--
                        ``(A) In general.--The Administrator may approve
                    only mitigation activities that the Administrator
                    determines--
                              ``(i) are technically feasible and cost-
                          effective; or
                              ``(ii) will eliminate future payments from the
                          National Flood Insurance Fund for severe
                          repetitive loss structures through an acquisition
                          or relocation activity.
                        ``(B) Considerations.--In making a determination
                    under subparagraph (A), the Administrator shall take
                    into consideration recognized ancillary benefits.'';
                        (C) by redesignating paragraph (5) as paragraph (3);
                        (D) in paragraph (3), as so redesignated--
                              (i) in the matter preceding subparagraph (A),
                          by striking ``The Director'' and all that follows
                          through ``Such activities may'' and inserting
                          ``Eligible activities under a mitigation plan
                          may'';
                              (ii) by striking subparagraphs (E) and (H);
                              (iii) by redesignating subparagraphs (D), (F),
                          and (G) as subparagraphs (E), (G), and (H),
                          respectively;
                              (iv) by inserting after subparagraph (C) the
                          following new subparagraph:
                        ``(D) elevation, relocation, or floodproofing of
                    utilities (including equipment that serves
                    structures);'';
                              (v) by inserting after subparagraph (E), as so
                          redesignated, the following new subparagraph:
                        ``(F) the development or update of mitigation plans
                    by a State or community which meet the planning criteria
                    established by the Administrator, except that the amount
                    from grants under this section that may be used under
                    this subparagraph may not exceed $50,000 for any
                    mitigation plan of a State or $25,000 for any mitigation
                    plan of a community;'';
                              (vi) in subparagraph (H); as so redesignated,
                          by striking ``and'' at the end; and
                              (vii) by adding at the end the following new
                          subparagraphs:
                        ``(I) other mitigation activities not described in
                    subparagraphs (A) through (G) or the regulations issued
                    under subparagraph (H), that are described in the
                    mitigation plan of a State or community; and
                        ``(J) without regard to the requirements under
                    paragraphs (1) and (2) of subsection (d), and if the
                    State applied for and was awarded at least $1,000,000 in
                    grants available under this section in the prior fiscal
                    year, technical assistance to communities to identify
                    eligible activities, to develop grant applications, and
                    to implement grants awarded under this section, not to
                    exceed $50,000 to any 1 State in any fiscal year.''; and
                        (E) by striking paragraph (6) and inserting the
                    following:

    [[Page 126 STAT. 940]]

                ``(4) Eligibility of demolition and rebuilding of
            properties.--The Administrator shall consider as an eligible
            activity the demolition and rebuilding of properties to at least
            base flood elevation or greater, if required by the
            Administrator or if required by any State regulation or local
            ordinance, and in accordance with criteria established by the
            Administrator.'';
                (6) by inserting after subsection (c), as so redesignated,
            the following new subsection:

        ``(d) Matching Requirement.--The Administrator may provide grants
    for eligible mitigation activities as follows:
                ``(1) Severe repetitive loss structures.--In the case of
            mitigation activities to severe repetitive loss structures, in
            an amount up to--
                        ``(A) 100 percent of all eligible costs, if the
                    activities are approved under subsection (c)(2)(A)(i);
                    or
                        ``(A) the expected savings to the National Flood
                    Insurance Fund from expected avoided damages through
                    acquisition or relocation activities, if the activities
                    are approved under subsection (c)(2)(A)(ii).
                ``(2) Repetitive loss structures.--In the case of mitigation
            activities to repetitive loss structures, in an amount up to 90
            percent of all eligible costs.
                ``(3) Other mitigation activities.--In the case of all other
            mitigation activities, in an amount up to 75 percent of all
            eligible costs.''.
                (7) in subsection (e)(2), as so redesignated--
                        (A) by striking ``certified under subsection (g)''
                    and inserting ``required under subsection (d)''; and
                        (B) by striking ``3 times the amount'' and inserting
                    ``the amount'';
                (8) in subsection (f), as so redesignated, by striking
            ``Riegle Community Development and Regulatory Improvement Act of
            1994'' and inserting ``Biggert-Waters Flood Insurance Reform Act
            of 2012''; and
                (9) by adding at the end the following new subsections:

        ``(g) Failure To Make Grant Award Within 5 Years.--For any
    application for a grant under this section for which the Administrator
    fails to make a grant award within 5 years of the date of the
    application, the grant application shall be considered to be denied and
    any funding amounts allocated for such grant applications shall remain
    in the National Flood Mitigation Fund under section 1367 of this title
    and shall be made available for grants under this section.
        ``(h) Definitions.--For purposes of this section, the following
    definitions shall apply:
                ``(1) Community.--The term `community' means--
                        ``(A) a political subdivision that--
                              ``(i) has zoning and building code
                          jurisdiction over a particular area having special
                          flood hazards; and
                              ``(ii) is participating in the national flood
                          insurance program; or
                        ``(B) a political subdivision of a State, or other
                    authority, that is designated by political subdivisions,
                    all of which meet the requirements of subparagraph (A),
                    to administer grants for mitigation activities for such
                    political subdivisions.

    [[Page 126 STAT. 941]]

                ``(2) Repetitive loss structure.--The term `repetitive loss
            structure' has the meaning given such term in section 1370.
                ``(3) Severe repetitive loss structure.--The term `severe
            repetitive loss structure' means a structure that--
                        ``(A) is covered under a contract for flood
                    insurance made available under this title; and
                        ``(B) has incurred flood-related damage--
                              ``(i) for which 4 or more separate claims
                          payments have been made under flood insurance
                          coverage under this title, with the amount of each
                          such claim exceeding $5,000, and with the
                          cumulative amount of such claims payments
                          exceeding $20,000; or
                              ``(ii) for which at least 2 separate claims
                          payments have been made under such coverage, with
                          the cumulative amount of such claims exceeding the
                          value of the insured structure.''.

        (b) Elimination of Grants Program for Repetitive Insurance Claims
    Properties.--Chapter I of the National Flood Insurance Act of 1968 is
    amended by striking section 1323 (42 U.S.C. 4030).
        (c) Elimination of Pilot Program for Mitigation of Severe Repetitive
    Loss Properties.--Chapter III of the National Flood Insurance Act of
    1968 is amended by striking section 1361A (42 U.S.C. 4102a).
        (d) National Flood Insurance Fund.--Section 1310(a) of the National
    Flood Insurance Act of 1968 (42 U.S.C. 4017(a)) is amended--
                (1) in paragraph (6), by inserting ``and'' after the
            semicolon;
                (2) in paragraph (7), by striking the semicolon and
            inserting a period; and
                (3) by striking paragraphs (8) and (9).

        (e) National Flood Mitigation Fund.--Section 1367 of the National
    Flood Insurance Act of 1968 (42 U.S.C. 4104d) is amended--
                (1) in subsection (b)--
                        (A) by striking paragraph (1) and inserting the
                    following new paragraph:
                ``(1) in each fiscal year, amounts from the National Flood
            Insurance Fund not to exceed $90,000,000 and to remain available
            until expended, of which--
                        ``(A) not more than $40,000,000 shall be available
                    pursuant to subsection (a) of this section for
                    assistance described in section 1366(a)(1);
                        ``(B) not more than $40,000,000 shall be available
                    pursuant to subsection (a) of this section for
                    assistance described in section 1366(a)(2); and
                        ``(C) not more than $10,000,000 shall be available
                    pursuant to subsection (a) of this section for
                    assistance described in section 1366(a)(3);''; and
                        (B) in paragraph (3), by striking ``section
                    1366(i)'' and inserting ``section 1366(e)'';
                (2) in subsection (c), by striking ``sections 1366 and
            1323'' and inserting ``section 1366'';
                (3) by redesignating subsections (d) and (e) as subsections
            (f) and (g), respectively; and
                (4) by inserting after subsection (c) the following new
            subsections:

    [[Page 126 STAT. 942]]

        ``(d) Prohibition on Offsetting Collections.--Notwithstanding any
    other provision of this title, amounts made available pursuant to this
    section shall not be subject to offsetting collections through premium
    rates for flood insurance coverage under this title.
        ``(e) Continued Availability and Reallocation.--Any amounts made
    available pursuant to subparagraph (A), (B), or (C) of subsection (b)(1)
    that are not used in any fiscal year shall continue to be available for
    the purposes specified in the subparagraph of subsection (b)(1) pursuant
    to which such amounts were made available, unless the Administrator
    determines that reallocation of such unused amounts to meet demonstrated
    need for other mitigation activities under section 1366 is in the best
    interest of the National Flood Insurance Fund.''.
        (f) Increased Cost of Compliance Coverage.--Section 1304(b)(4) of
    the National Flood Insurance Act of 1968 (42 U.S.C. 4011(b)(4)) is
    amended--
                (1) by striking subparagraph (B); and
                (2) by redesignating subparagraphs (C), (D), and (E) as
            subparagraphs (B), (C), and (D), respectively.
    SEC. 100226. <<NOTE: 42 USC 4101 note.>> FLOOD PROTECTION
                                  STRUCTURE ACCREDITATION TASK FORCE.

        (a) Definitions.--In this section--
                (1) the term ``flood protection structure accreditation
            requirements'' means the requirements established under section
            65.10 of title 44, Code of Federal Regulations, for levee
            systems to be recognized on maps created for purposes of the
            National Flood Insurance Program;
                (2) the term ``National Committee on Levee Safety'' means
            the Committee on Levee Safety established under section 9003 of
            the National Levee Safety Act of 2007 (33 U.S.C. 3302); and
                (3) the term ``task force'' means the Flood Protection
            Structure Accreditation Task Force established under subsection
            (b).

        (b) Establishment.--
                (1) In general.--The Administrator and the Secretary of the
            Army, acting through the Chief of Engineers, in cooperation with
            the National Committee on Levee Safety, shall jointly establish
            a Flood Protection Structure Accreditation Task Force.
                (2) Duties.--
                        (A) Developing process.--The task force shall
                    develop a process to better align the information and
                    data collected by or for the Corps of Engineers under
                    the Inspection of Completed Works Program with the flood
                    protection structure accreditation requirements so
                    that--
                              (i) information and data collected for either
                          purpose can be used interchangeably; and
                              (ii) information and data collected by or for
                          the Corps of Engineers under the Inspection of
                          Completed Works Program is sufficient to satisfy
                          the flood protection structure accreditation
                          requirements.
                        (B) Gathering recommendations.--The task force shall
                    gather, and consider in the process developed under
                    subparagraph (A), recommendations from interested
                    persons in each region relating to the information,
                    data, and accreditation requirements described in
                    subparagraph (A).

    [[Page 126 STAT. 943]]

                (3) Considerations.--In developing the process under
            paragraph (2), the task force shall consider changes to--
                        (A) the information and data collected by or for the
                    Corps of Engineers under the Inspection of Completed
                    Works Program; and
                        (B) the flood protection structure accreditation
                    requirements.
                (4) Rule of construction.--Nothing in this section shall be
            construed to require a reduction in the level of public safety
            and flood control provided by accredited levees, as determined
            by the Administrator for purposes of this section.

        (c) <<NOTE: Deadlines.>>  Implementation.--The Administrator and the
    Secretary of the Army, acting through the Chief of Engineers, shall
    implement the process developed by the task force under subsection (b)
    not later than 1 year after the date of enactment of this Act and shall
    complete the process under subsection (b) not later than 2 years after
    the date of enactment of this Act.

        (d) Reports.--The Administrator and the Secretary of the Army,
    acting through the Chief of Engineers, in cooperation with the National
    Committee on Levee Safety, shall jointly submit to the Committee on
    Banking, Housing, and Urban Affairs and the Committee on Environment and
    Public Works of the Senate and the Committee on Financial Services, the
    Committee on Transportation and Infrastructure, and the Committee on
    Natural Resources of the House of Representatives reports concerning the
    activities of the task force and the implementation of the process
    developed by the task force under subsection (b), including--
                (1) an interim report, not later than 180 days after the
            date of enactment of this Act; and
                (2) a final report, not later than 1 year after the date of
            enactment of this Act.

        (e) Termination.--The task force shall terminate on the date of
    submission of the report under subsection (d)(2).
    SEC. 100227. <<NOTE: 42 USC 4011 note.>> FLOOD IN PROGRESS
                                  DETERMINATIONS.

        (a) Report.--
                (1) Review.--The Administrator shall review--
                        (A) the processes and procedures for determining
                    that a flood event has commenced or is in progress for
                    purposes of flood insurance coverage made available
                    under the National Flood Insurance Program;
                        (B) the processes and procedures for providing
                    public notification that such a flood event has
                    commenced or is in progress;
                        (C) the processes and procedures regarding the
                    timing of public notification of flood insurance
                    requirements and availability; and
                        (D) the effects and implications that weather
                    conditions, including rainfall, snowfall, projected
                    snowmelt, existing water levels, and other conditions,
                    have on the determination that a flood event has
                    commenced or is in progress.
                (2) Report.--Not later than 6 months after the date of
            enactment of this Act, the Administrator shall submit a report
            to Congress that describes--
                        (A) the results and conclusions of the review under
                    paragraph (1); and

    [[Page 126 STAT. 944]]

                        (B) any actions taken, or proposed actions to be
                    taken, by the Administrator to provide for more precise
                    and technical processes and procedures for determining
                    that a flood event has commenced or is in progress.

        (b) Effective Date of Policies Covering Properties Affected by
    Flooding of the Missouri River in 2011.--
                (1) <<NOTE: Definition. Time period.>>  Eligible coverage.--
            For purposes of this subsection, the term ``eligible coverage''
            means coverage under a new contract for flood insurance coverage
            under the National Flood Insurance Program, or a modification to
            coverage under an existing flood insurance contract, for
            property damaged by the flooding of the Missouri River that
            commenced on June 1, 2011, that was purchased or made during the
            period beginning May 1, 2011, and ending June 6, 2011.
                (2) Effective dates.--Notwithstanding section 1306(c) of the
            National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), or any
            other provision of law, any eligible coverage shall--
                        (A) be deemed to take effect on the date that is 30
                    days after the date on which all obligations for the
                    eligible coverage (including completion of the
                    application and payment of any initial premiums owed)
                    are satisfactorily completed; and
                        (B) cover damage to property occurring after the
                    effective date described in subparagraph (A) that
                    resulted from the flooding of the Missouri River that
                    commenced on June 1, 2011, if the property did not
                    suffer damage or loss as a result of such flooding
                    before the effective date described in subparagraph (A).

        (c) <<NOTE: Procedures.>>  Timely Notification.--Not later than 90
    days after the date on which the Administrator submits the report
    required under subsection (a)(2), the Administrator shall, taking into
    consideration the results of the review under subsection (a)(1)(B),
    develop procedures for providing timely notification, to the extent
    practicable, to policyholders who have purchased flood insurance
    coverage under the National Flood Insurance Program within 30 days of a
    determination of a flood in progress and who may be affected by the
    flood of the determination and how the determination may affect their
    coverage.
    SEC. 100228. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE
                                  LIMITS.

        Section 1306(b) of the National Flood Insurance Act of 1968 (42
    U.S.C. 4013(b)) is amended--
                (1) in paragraph (2)--
                        (A) by striking ``in the case of any residential
                    property'' and inserting ``in the case of any
                    residential building designed for the occupancy of from
                    1 to 4 families''; and
                        (B) by striking ``shall be made available to every
                    insured upon renewal and every applicant for insurance
                    so as to enable such insured or applicant to receive
                    coverage up to a total amount (including such limits
                    specified in paragraph (1)(A)(i)) of $250,000'' and
                    inserting ``shall be made available, with respect to any
                    single such building, up to an aggregate liability
                    (including such limits specified in paragraph (1)(A)(i))
                    of $250,000''; and
                (2) in paragraph (4)--

    [[Page 126 STAT. 945]]

                        (A) by striking ``in the case of any nonresidential
                    property, including churches,'' and inserting ``in the
                    case of any nonresidential building, including a
                    church,''; and
                        (B) by striking ``shall be made available to every
                    insured upon renewal and every applicant for insurance,
                    in respect to any single structure, up to a total amount
                    (including such limit specified in subparagraph (B) or
                    (C) of paragraph (1), as applicable) of $500,000 for
                    each structure and $500,000 for any contents related to
                    each structure'' and inserting ``shall be made available
                    with respect to any single such building, up to an
                    aggregate liability (including such limits specified in
                    subparagraph (B) or (C) of paragraph (1), as applicable)
                    of $500,000, and coverage shall be made available up to
                    a total of $500,000 aggregate liability for contents
                    owned by the building owner and $500,000 aggregate
                    liability for each unit within the building for contents
                    owned by the tenant''.
    SEC. 100229. LOCAL DATA REQUIREMENT.

        (a) In General.--Notwithstanding any other provision of this
    subtitle, no area or community participating in the National Flood
    Insurance Program that is or includes a community that is identified by
    the Administrator as Community Identification Number 360467 and impacted
    by the Jamaica Bay flooding source or identified by the Administrator as
    Community Identification Number 360495 may be or become designated as an
    area having special flood hazards for purposes of the National Flood
    Insurance Program, unless the designation is made on the basis of--
                (1) flood hazard analyses of hydrologic, hydraulic, or
            coastal flood hazards that have been properly calibrated and
            validated, and are specific and directly relevant to the
            geographic area being studied; and
                (2) ground elevation information of sufficient accuracy and
            precision to meet the guidelines of the Administration for
            accuracy at the 95 percent confidence level.

        (b) Remapping.--
                (1) <<NOTE: Determination.>>  Remapping required.--If the
            Administrator determines that an area described in subsection
            (a) has been designated as an area of special flood hazard on
            the basis of information that does not comply with the
            requirements under subsection (a), the Administrator shall
            revise and update any National Flood Insurance Program rate map
            for the area--
                        (A) using information that complies with the
                    requirements under subsection (a); and
                        (B) in accordance with the procedures established
                    under section 1363 of the National Flood Insurance Act
                    of 1968 (42 U.S.C. 4104) for flood elevation
                    determinations.
                (2) Interim period.--A National Flood Insurance Program rate
            map in effect on the date of enactment of this Act for an area
            for which the Administrator has made a determination under
            paragraph (1) shall continue in effect with respect to the area
            during the period--
                        (A) beginning on the date of enactment of this Act;
                    and
                        (B) ending on the date on which the Administrator
                    determines that the requirements under section 1363 of
                    the National Flood Insurance Act of 1968 (42 U.S.C.
                    4104)

    [[Page 126 STAT. 946]]

                    for flood elevation determinations have been met with
                    respect to a revision and update under paragraph (1) of
                    a National Flood Insurance Program rate map for the
                    area.
                (3) Deadline.--The Administrator shall issue a preliminary
            National Flood Insurance Program rate map resulting from a
            revision and update required under paragraph (1) not later than
            1 year after the date of enactment of this Act.
                (4) Risk premium rate clarification.--
                        (A) In general.--If a revision and update required
                    under paragraph (1) results in a reduction in the risk
                    premium rate for a property in an area for which the
                    Administrator has made a determination under paragraph
                    (1), the Administrator shall--
                              (i) calculate the difference between the
                          reduced risk premium rate and the risk premium
                          rate paid by a policyholder with respect to the
                          property during the period--
                                        (I) beginning on the date on which
                                    the National Flood Insurance Program
                                    rate map in effect for the area on the
                                    date of enactment of this Act took
                                    effect; and
                                        (II) ending on the date on which the
                                    revised or updated National Flood
                                    Insurance Program rate map takes effect;
                                    and
                              (ii) reimburse the policyholder an amount
                          equal to such difference.
                        (B) Funding.--Notwithstanding section 1310 of the
                    National Flood Insurance Act of 1968 (42 U.S.C. 4017),
                    there shall be available to the Administrator from
                    premiums deposited in the National Flood Insurance Fund
                    pursuant to subsection (d) of such section 1310, of
                    amounts not otherwise obligated, the amount necessary to
                    carry out this paragraph.

        (c) Termination.--
                (1) In general.--Except as provided in paragraph (2), this
            section shall cease to have effect on the effective date of a
            National Flood Insurance Program rate map revised and updated
            under subsection (b)(1).
                (2) Reimbursements.--Subsection (b)(4) shall cease to have
            effect on the date on which the Administrator has made all
            reimbursements required under subsection (b)(4).
    SEC. <<NOTE: 42 USC 4014 note.>> 100230. ELIGIBILITY FOR FLOOD
                                  INSURANCE FOR PERSONS RESIDING IN
                                  COMMUNITIES THAT HAVE MADE ADEQUATE
                                  PROGRESS ON THE RECONSTRUCTION OR
                                  IMPROVEMENT OF A FLOOD PROTECTION
                                  SYSTEM.

        (a) Eligibility for Flood Insurance Coverage.--
                (1) In general.--Notwithstanding any other provision of law
            (including section 1307(e) of the National Flood Insurance Act
            of 1968 (42 U.S.C. 4014(e))), a person residing in a community
            that the Administrator determines has made adequate progress on
            the reconstruction or improvement of a flood protection system
            that will afford flood protection for a 100-year floodplain
            (without regard to the level of Federal funding of

    [[Page 126 STAT. 947]]

            or participation in the construction, reconstruction, or
            improvement), shall be eligible for flood insurance coverage
            under the National Flood Insurance Program--
                        (A) if the person resides in a community that is a
                    participant in the National Flood Insurance Program; and
                        (B) at a risk premium rate that does not exceed the
                    risk premium rate that would be chargeable if the flood
                    protection system had been completed.
                (2) Adequate progress.--
                        (A) <<NOTE: Determination.>>  Reconstruction or
                    improvement.--For purposes of paragraph (1), the
                    Administrator shall determine that a community has made
                    adequate progress on the reconstruction or improvement
                    of a flood protection system if--
                              (i) 100 percent of the project cost has been
                          authorized;
                              (ii) not less than 60 percent of the project
                          cost has been secured or appropriated;
                              (iii) not less than 50 percent of the flood
                          protection system has been assessed as being
                          without deficiencies; and
                              (iv) the reconstruction or improvement has a
                          project schedule that does not exceed 5 years,
                          beginning on the date on which the reconstruction
                          or construction of the improvement commences.
                        (B) Considerations.--In determining whether a flood
                    protection system has been assessed as being without
                    deficiencies, the Administrator shall consider the
                    requirements under section 65.10 of chapter 44, Code of
                    Federal Regulations, or any successor thereto.
                        (C) Date of commencement.--For purposes of
                    subparagraph (A)(iv) of this paragraph and subsection
                    (b)(2)(B), the date of commencement of the
                    reconstruction or improvement of a flood protection
                    system that is undergoing reconstruction or improvement
                    on the date of enactment of this Act shall be deemed to
                    be the date on which the owner of the flood protection
                    system submits a request under paragraph (3).
                (3) Request for determination.--The owner of a flood
            protection system that is undergoing reconstruction or
            improvement on the date of enactment of this Act may submit to
            the Administrator a request for a determination under paragraph
            (2) that the community in which the flood protection system is
            located has made adequate progress on the reconstruction or
            improvement of the flood protection system.
                (4) Rule of construction.--Nothing in this subsection shall
            be construed to prohibit the Administrator from making a
            determination under paragraph (2) for any community in which a
            flood protection system is not undergoing reconstruction or
            improvement on the date of enactment of this Act.

        (b) Termination of Eligibility.--
                (1) <<NOTE: Regulations.>>  Adequate continuing progress.--
            The Administrator shall issue rules to establish a method of
            determining whether a community has made adequate continuing
            progress on the reconstruction or improvement of a flood
            protection system that includes--
                        (A) a requirement that the Administrator shall--

    [[Page 126 STAT. 948]]

                              (i) <<NOTE: Consultation.>>  consult with the
                          owner of the flood protection system--
                                        (I) 6 months after the date of a
                                    determination under subsection (a);
                                        (II) 18 months after the date of a
                                    determination under subsection (a); and
                                        (III) 36 months after the date of a
                                    determination under subsection (a); and
                              (ii) after each consultation under clause (i),
                          determine whether the reconstruction or
                          improvement is reasonably likely to be completed
                          in accordance with the project schedule described
                          in subsection (a)(2)(A)(iv); and
                        (B) a requirement that, if the Administrator makes a
                    determination under subparagraph (A)(ii) that
                    reconstruction or improvement is not reasonably likely
                    to be completed in accordance with the project schedule,
                    the Administrator shall--
                              (i) <<NOTE: Deadline. Notification.>>  not
                          later than 30 days after the date of the
                          determination, notify the owner of the flood
                          protection system of the determination and provide
                          the rationale and evidence for the determination;
                          and
                              (ii) provide the owner of the flood protection
                          system the opportunity to appeal the
                          determination.
                (2) Termination.--The Administrator shall terminate the
            eligibility for flood insurance coverage under subsection (a)
            for persons residing in a community with respect to which the
            Administrator made a determination under subsection (a) if--
                        (A) the Administrator determines that the community
                    has not made adequate continuing progress; or
                        (B) on the date that is 5 years after the date on
                    which the reconstruction or construction of the
                    improvement commences, the project has not been
                    completed.
                (3) Waiver.--A person whose eligibility would otherwise be
            terminated under paragraph (2)(B) shall continue to be eligible
            to purchase flood insurance coverage described in subsection (a)
            if the Administrator determines--
                        (A) the community has made adequate continuing
                    progress on the reconstruction or improvement of a flood
                    protection system; and
                        (B) <<NOTE: Deadline.>>  there is a reasonable
                    expectation that the reconstruction or improvement of
                    the flood protection system will be completed not later
                    than 1 year after the date of the determination under
                    this paragraph.
                (4) Risk premium rate.--If the Administrator terminates the
            eligibility of persons residing in a community to purchase flood
            insurance coverage described in subsection (a), the
            Administrator shall establish an appropriate risk premium rate
            for flood insurance coverage under the National Flood Insurance
            Program for persons residing in the community that purchased
            flood insurance coverage before the date on which the
            termination of eligibility takes effect, taking into
            consideration the then-current state of the flood protection
            system.

        (c) Additional Authority.--
                (1) Additional authority.--Notwithstanding subsection (a),
            in exceptional and exigent circumstances, the Administrator

    [[Page 126 STAT. 949]]

            may, in the Administrator's sole discretion, determine that a
            person residing in a community, which is a participant in the
            National Flood Insurance Program, that has begun reconstruction
            or improvement of a flood protection system that will afford
            flood protection for a 100-year floodplain (without regard to
            the level of Federal funding of or participation in the
            reconstruction or improvement) shall be eligible for flood
            insurance coverage under the National Flood Insurance Program at
            a risk premium rate that does not exceed the risk premium rate
            that would be chargeable if the flood protection system had been
            completed, provided--
                        (A) the community makes a written request for the
                    determination setting forth the exceptional and exigent
                    circumstances, including why the community cannot meet
                    the criteria for adequate progress set forth in under
                    subsection (a)(2)(A) and why immediate relief is
                    necessary;
                        (B) <<NOTE: Reports. Deadline.>>  the Administrator
                    submits a written report setting forth findings of the
                    exceptional and exigent circumstances on which the
                    Administrator based an affirmative determination to the
                    Committee on Banking, Housing, and Urban Affairs of the
                    Senate, and the Committee on Financial Services of the
                    House of Representatives not later than 15 days before
                    making the determination; and
                        (C) <<NOTE: Deadline.>>  the eligibility for flood
                    insurance coverage at a risk premium rate determined
                    under this subsection terminates no later than 1 year
                    after the date on which the Administrator makes the
                    determination.
                (2) Limitation.--Upon termination of eligibility under
            paragraph (1)(C), a community may submit another request
            pursuant to paragraph (1)(A). The Administrator may make no more
            than two determinations under paragraph (1) with respect to
            persons residing within any single requesting community.
                (3) Termination.--The authority provided under paragraphs
            (1) and (2) shall terminate two years after the enactment of
            this Act.
    SEC. 100231. STUDIES AND REPORTS.

        (a) Report on Improving the National Flood Insurance Program.--Not
    later than 1 year after the date of enactment of this Act, the
    Comptroller General of the United States shall conduct a study and
    submit a report to the Committee on Banking, Housing, and Urban Affairs
    of the Senate and the Committee on Financial Services of the House of
    Representatives, on--
                (1) the number of flood insurance policy holders currently
            insuring--
                        (A) a residential structure up to the maximum
                    available coverage amount, as established in section
                    61.6 of title 44, Code of Federal Regulations, of--
                              (i) $250,000 for the structure; and
                              (ii) $100,000 for the contents of such
                          structure; or
                        (B) a commercial structure up to the maximum
                    available coverage amount, as established in section
                    61.6 of title 44, Code of Federal Regulations, of
                    $500,000;
                (2) the increased losses the National Flood Insurance
            Program would have sustained during the 2004 and 2005 hurricane

    [[Page 126 STAT. 950]]

            season if the National Flood Insurance Program had insured all
            policyholders up to the maximum conforming loan limit for fiscal
            year 2006 of $417,000, as established under section 302(b)(2) of
            the Federal National Mortgage Association Charter Act (12 U.S.C.
            1717(b)(2));
                (3) the availability in the private marketplace of flood
            insurance coverage in amounts that exceed the current limits of
            coverage amounts established in section 61.6 of title 44, Code
            of Federal Regulations; and
                (4) what effect, if any--
                        (A) raising the current limits of coverage amounts
                    established in section 61.6 of title 44, Code of Federal
                    Regulations, would have on the ability of private
                    insurers to continue providing flood insurance coverage;
                    and
                        (B) reducing the current limits of coverage amounts
                    established in section 61.6 of title 44, Code of Federal
                    Regulations, would have on the ability of private
                    insurers to provide sufficient flood insurance coverage
                    to effectively replace the current level of flood
                    insurance coverage being provided under the National
                    Flood Insurance Program.

        (b) <<NOTE: 42 USC 4027a.>>  Report of the Administrator on
    Activities Under the National Flood Insurance Program.--
                (1) In general.--The Administrator shall, on an annual
            basis, submit a full report on the operations, activities,
            budget, receipts, and expenditures of the National Flood
            Insurance Program for the preceding 12-month period to the
            Committee on Banking, Housing, and Urban Affairs of the Senate
            and the Committee on Financial Services of the House of
            Representatives.
                (2) Timing.--Each report required under paragraph (1) shall
            be submitted to the committees described in paragraph (1) not
            later than 3 months following the end of each fiscal year.
                (3) Contents.--Each report required under paragraph (1)
            shall include--
                        (A) the current financial condition and income
                    statement of the National Flood Insurance Fund
                    established under section 1310 of the National Flood
                    Insurance Act of 1968 (42 U.S.C. 4017), including--
                              (i) premiums paid into such Fund;
                              (ii) policy claims against such Fund; and
                              (iii) expenses in administering such Fund;
                        (B) the number and face value of all policies issued
                    under the National Flood Insurance Program that are in
                    force;
                        (C) a description and summary of the losses
                    attributable to repetitive loss structures;
                        (D) a description and summary of all losses incurred
                    by the National Flood Insurance Program due to--
                              (i) hurricane related damage; and
                              (ii) nonhurricane related damage;
                        (E) the amounts made available by the Administrator
                    for mitigation assistance under section 1366(c)(4) of
                    the National Flood Insurance Act of 1968 (42 U.S.C.
                    4104c(c)(4)), as so redesignated by this Act, for the
                    purchase of properties substantially damaged by flood
                    for that fiscal year, and the actual number of flood
                    damaged properties

    [[Page 126 STAT. 951]]

                    purchased and the total cost expended to purchase such
                    properties;
                        (F) the estimate of the Administrator as to the
                    average historical loss year, and the basis for that
                    estimate;
                        (G) the estimate of the Administrator as to the
                    maximum amount of claims that the National Flood
                    Insurance Program would have to expend in the event of a
                    catastrophic year;
                        (H) the average--
                              (i) amount of insurance carried per flood
                          insurance policy;
                              (ii) premium per flood insurance policy; and
                              (iii) loss per flood insurance policy; and
                        (I) the number of claims involving damages in excess
                    of the maximum amount of flood insurance available under
                    the National Flood Insurance Program and the sum of the
                    amount of all damages in excess of such amount.

        (c) <<NOTE: Deadline.>>  GAO Study on Pre-FIRM Structures.--Not
    later than 1 year after the date of enactment of this Act, the
    Comptroller General of the United States shall conduct a study and
    submit a report to the Committee on Banking, Housing, and Urban Affairs
    of the Senate and the Committee on Financial Services of the House of
    Representatives, on the--
                (1) composition of the remaining pre-FIRM structures that
            are explicitly receiving discounted premium rates under section
            1307 of the National Flood Insurance Act of 1968 (42 U.S.C.
            4014), including the historical basis for the receipt of such
            subsidy and the extent to which pre-FIRM structures are
            currently owned by the same owners of the property at the time
            of the original National Flood Insurance Program rate map;
                (2) number and fair market value of such structures;
                (3) respective income level of the owners of such
            structures;
                (4) number of times each such structure has been sold since
            1968, including specific dates, sales price, and any other
            information the Secretary determines appropriate;
                (5) total losses incurred by such structures since the
            establishment of the National Flood Insurance Program compared
            to the total losses incurred by all structures that are charged
            a nondiscounted premium rate;
                (6) total cost of foregone premiums since the establishment
            of the National Flood Insurance Program, as a result of the
            subsidies provided to such structures;
                (7) annual cost as a result of the subsidies provided to
            such structures;
                (8) the premium income collected and the losses incurred by
            the National Flood Insurance Program as a result of such
            explicitly subsidized structures compared to the premium income
            collected and the losses incurred by such Program as a result of
            structures that are charged a nondiscounted premium rate, on a
            State-by-State basis; and
                (9) the options for eliminating the subsidy to such
            structures.

        (d) GAO Review of FEMA Contractors.--The Comptroller General of the
    United States, in conjunction with the Office of the Inspector General
    of the Department of Homeland Security, shall--

    [[Page 126 STAT. 952]]

                (1) conduct a review of the 3 largest contractors the
            Administrator uses in administering the National Flood Insurance
            Program; and
                (2) <<NOTE: Deadline. Reports.>>  not later than 18 months
            after the date of enactment of this Act, submit a report on the
            findings of such review to the Administrator, the Committee on
            Banking, Housing, and Urban Affairs of the Senate, and the
            Committee on Financial Services of the House of Representatives.

        (e) Study and Report on Graduated Risk.--
                (1) Study.--
                        (A) <<NOTE: Contracts.>>  Study required.--The
                    Administrator shall enter into a contract under which
                    the National Academy of Sciences shall conduct a study
                    exploring methods for understanding graduated risk
                    behind levees and the associated land development,
                    insurance, and risk communication dimensions.
                        (B) Contents of study.--The study under this
                    paragraph shall--
                              (i) research, review, and recommend current
                          best practices for estimating direct annualized
                          flood losses behind levees for residential and
                          commercial structures;
                              (ii) rank each best practice recommended under
                          clause (i) based on the best value, balancing
                          cost, scientific integrity, and the inherent
                          uncertainties associated with all aspects of the
                          loss estimate, including geotechnical engineering,
                          flood frequency estimates, economic value, and
                          direct damages;
                              (iii) research, review, and identify current
                          best floodplain management and land use practices
                          behind levees that effectively balance social,
                          economic, and environmental considerations as part
                          of an overall flood risk management strategy;
                              (iv) identify areas in which the best
                          floodplain management and land use practices
                          described in clause (iii) have proven effective
                          and recommend methods and processes by which such
                          practices could be applied more broadly across the
                          United States, given the variety of different
                          flood risks, State and local legal frameworks, and
                          evolving judicial opinions;
                              (v) research, review, and identify a variety
                          of flood insurance pricing options for flood
                          hazards behind levees that are actuarially sound
                          and based on the flood risk data developed using
                          the 3 best practices recommended under clause (i)
                          that have the best value as determined under
                          clause (ii);
                              (vi) evaluate and recommend methods to reduce
                          insurance costs through creative arrangements
                          between insureds and insurers while keeping a
                          clear accounting of how much financial risk is
                          being borne by various parties such that the
                          entire risk is accounted for, including
                          establishment of explicit limits on disaster aid
                          or other assistance in the event of a flood; and
                              (vii) taking into consideration the
                          recommendations under clauses (i) through (iii),
                          recommend approaches to communicate the associated
                          risks to

    [[Page 126 STAT. 953]]

                          community officials, homeowners, and other
                          residents of communities.
                (2) Report.--The contract under paragraph (1)(A) shall
            provide that not later than 12 months after the date of
            enactment of this Act, the National Academy of Sciences shall
            submit to the Committee on Banking, Housing, and Urban Affairs
            of the Senate and the Committee on Financial Services and the
            Committee on Science, Space, and Technology of the House of
            Representatives a report on the study under paragraph (1) that
            includes the information and recommendations required under
            paragraph (1).
    SEC. 100232. REINSURANCE.

        (a) FEMA and GAO Reports on Privatization.--Not later than 18 months
    after the date of enactment of this Act, the Administrator and the
    Comptroller General of the United States shall each--
                (1) <<NOTE: Study.>>  conduct a separate study to assess a
            broad range of options, methods, and strategies for privatizing
            the National Flood Insurance Program; and
                (2) submit a report to the Committee on Financial Services
            of the House of Representatives and the Committee on Banking,
            Housing, and Urban Affairs of the Senate with recommendations
            for the best manner to accomplish the privatization described in
            paragraph (1).

        (b) Private Risk-management Initiatives.--The Administrator may
    carry out such private risk-management initiatives as are otherwise
    authorized under applicable law, as the Administrator considers
    appropriate to determine the capacity of private insurers, reinsurers,
    and financial markets to assist communities, on a voluntary basis only,
    in managing the full range of financial risks associated with flooding.
        (c) Reinsurance Assessment.--
                (1) <<NOTE: Deadline. Reports.>>  Private market pricing
            assessment.--Not later than 12 months after the date of
            enactment of this Act, the Administrator shall submit to
            Congress a report that--
                        (A) assesses the capacity of the private
                    reinsurance, capital, and financial markets to assist
                    communities, on a voluntary basis, in managing the full
                    range of financial risks associated with flooding by
                    requesting proposals to assume a portion of the
                    insurance risk of the National Flood Insurance Program;
                        (B) describes any responses to the request for
                    proposals under subparagraph (A);
                        (C) assesses whether the rates and terms contained
                    in any proposals received by the Administrator are--
                              (i) reasonable and appropriate; and
                              (ii) in an amount sufficient to maintain the
                          ability of the National Flood Insurance Program to
                          pay claims;
                        (D) describes the extent to which carrying out the
                    proposals received by the Administrator would minimize
                    the likelihood that the Administrator would use the
                    borrowing authority under section 1309 of the National
                    Flood Insurance Act of 1968 (42 U.S.C. 4016);
                        (E) describes fluctuations in historical reinsurance
                    rates; and

    [[Page 126 STAT. 954]]

                        (F) includes an economic cost-benefit analysis of
                    the impact on the National Flood Insurance Program if
                    the Administrator were to exercise the authority under
                    section 1335(a)(2) of the National Flood Insurance Act
                    of 1968 (42 U.S.C. 4055(a)(2)), as added by this
                    section, to secure reinsurance of coverage provided by
                    the National Flood Insurance Program from the private
                    market.
                (2) Protocol for release of data.--The Administrator shall
            develop a protocol, including adequate privacy protections, to
            provide for the release of data sufficient to conduct the
            assessment required under paragraph (1).

        (d) Reinsurance.--The National Flood Insurance Act of 1968 (42
    U.S.C. 4001 et seq.) is amended--
                (1) in section 1331(a)(2) (42 U.S.C. 4051(a)(2)), by
            inserting ``, including as reinsurance of coverage provided by
            the flood insurance program'' before ``, on such terms'';
                (2) in section 1332(c)(2) (42 U.S.C. 4052(c)(2)), by
            inserting ``or reinsurance'' after ``flood insurance coverage'';
                (3) in section 1335(a) (42 U.S.C. 4055(a))--
                        (A) by striking ``The Director'' and inserting the
                    following:
                ``(1) In general.--The Administrator''; and
                        (B) by adding at the end the following:
                ``(2) Private reinsurance.--The Administrator is authorized
            to secure reinsurance of coverage provided by the flood
            insurance program from the private market at rates and on terms
            determined by the Administrator to be reasonable and
            appropriate, in an amount sufficient to maintain the ability of
            the program to pay claims.'';
                (4) in section 1346(a) (42 U.S.C. 4082(a))--
                        (A) in the matter preceding paragraph (1), by
                    inserting after ``for the purpose of'' the following:
                    ``securing reinsurance of insurance coverage provided by
                    the program or for the purpose of'';
                        (B) in paragraph (1)--
                              (i) by striking ``estimating'' and inserting
                          ``Estimating''; and
                              (ii) by striking the semicolon at the end and
                          inserting a period;
                        (C) in paragraph (2)--
                              (i) by striking ``receiving'' and inserting
                          ``Receiving''; and
                              (ii) by striking the semicolon at the end and
                          inserting a period;
                        (D) in paragraph (3)--
                              (i) by striking ``making'' and inserting
                          ``Making''; and
                              (ii) by striking `` `; and' '' and inserting a
                          period;
                        (E) by redesignating paragraph (4) as paragraph (5);
                        (F) in paragraph (5), as so redesignated, by
                    striking ``otherwise'' and inserting ``Otherwise''; and
                        (G) by inserting after paragraph (3) the following
                    new paragraph:
                ``(4) Placing reinsurance coverage on insurance provided by
            such program.''; and
                (5) in section 1370(a)(3) (42 U.S.C. 4121(a)(3)), by
            striking ``include any'' and all that follows and inserting the
            following:

    [[Page 126 STAT. 955]]

            ``include any organization or person that is authorized to
            engage in the business of insurance under the laws of any State,
            subject to the reporting requirements of the Securities Exchange
            Act of 1934 pursuant to section 13(a) or 15(d) of such Act (15
            U.S.C. 78m(a) and 78o(d)), or authorized by the Administrator to
            assume reinsurance on risks insured by the flood insurance
            program;''.

        (e) <<NOTE: Deadlines. 42 USC 4027b.>>  Assessment of Claims-paying
    Ability.--
                (1) Assessment.--
                        (A) Assessment required.--
                              (i) In general.--Not later than September 30
                          of each year, the Administrator shall conduct an
                          assessment of the ability of the National Flood
                          Insurance Program to pay claims.
                              (ii) Private market reinsurance.--The
                          assessment under this paragraph for any year in
                          which the Administrator exercises the authority
                          under section 1335(a)(2) of the National Flood
                          Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), as
                          added by this section, to secure reinsurance of
                          coverage provided by the National Flood Insurance
                          Program from the private market shall include
                          information relating the use of private sector
                          reinsurance and reinsurance equivalents by the
                          Administrator, whether or not the Administrator
                          used the borrowing authority under section 1309 of
                          the National Flood Insurance Act of 1968 (42
                          U.S.C. 4016).
                              (iii) First assessment.--The Administrator
                          shall conduct the first assessment required under
                          this paragraph not later than September 30, 2012.
                        (B) Considerations.--In conducting an assessment
                    under subparagraph (A), the Administrator shall take
                    into consideration regional concentrations of coverage
                    written by the National Flood Insurance Program, peak
                    flood zones, and relevant mitigation measures.
                (2) Annual report of the administrator of activities under
            the national flood insurance program.--The Administrator shall--
                        (A) include the results of each assessment in the
                    report required under section 100231(b); and
                        (B) <<NOTE: Public information.>>  not later than 30
                    days after the date on which the Administrator completes
                    an assessment required under paragraph (1), make the
                    results of the assessment available to the public.
    SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL
                                  LIVING EXPENSES COVERAGES.

        (a) Study.--The Comptroller General of the United States shall
    conduct a study concerning--
                (1) the availability of additional living expenses and
            business interruption coverage in the private marketplace for
            flood insurance;
                (2) the feasibility of allowing the National Flood Insurance
            Program to offer such coverage at the option of the consumer;
                (3) the estimated cost to consumers if the National Flood
            Insurance Program priced such optional coverage at true
            actuarial rates;

    [[Page 126 STAT. 956]]

                (4) the impact such optional coverage would have on consumer
            participation in the National Flood Insurance Program; and
                (5) the fiscal impact such optional coverage would have upon
            the National Flood Insurance Fund if such optional coverage were
            included in the National Flood Insurance Program, as described
            in paragraph (2), at the price described in paragraph (3).

        (b) Report.--Not later than 1 year after the date of enactment of
    this Act, the Comptroller General shall submit to the Committee on
    Banking, Housing, and Urban Affairs of the Senate and the Committee on
    Financial Services of the House of Representatives a report containing
    the results of the study under subsection (a).
    SEC. <<NOTE: 42 USC 4013a.>> 100234. POLICY DISCLOSURES.

        (a) In General.--Notwithstanding any other provision of law, in
    addition to any other disclosures that may be required, each policy
    under the National Flood Insurance Program shall state all conditions,
    exclusions, and other limitations pertaining to coverage under the
    subject policy, regardless of the underlying insurance product, in plain
    English, in boldface type, and in a font size that is twice the size of
    the text of the body of the policy.
        (b) Violations.--The Administrator may impose a civil penalty of not
    more than $50,000 on any person that fails to comply with subsection
    (a).
    SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN
                                  MANAGEMENT CRITERIA.

        Not later than <<NOTE: Determination.>> 6 months after the date of
    enactment of this Act, the Administrator of the Federal Emergency
    Management Agency shall conduct a study and submit a report to the
    Committee on Banking, Housing, and Urban Affairs of the Senate and the
    Committee on Financial Services of the House of Representatives
    regarding the impact, effectiveness, and feasibility of amending section
    1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) to
    include widely used and nationally recognized building codes as part of
    the floodplain management criteria developed under such section, and
    shall determine--
                (1) the regulatory, financial, and economic impacts of such
            a building code requirement on homeowners, States and local
            communities, local land use policies, and the Federal Emergency
            Management Agency;
                (2) the resources required of State and local communities to
            administer and enforce such a building code requirement;
                (3) the effectiveness of such a building code requirement in
            reducing flood-related damage to buildings and contents;
                (4) the impact of such a building code requirement on the
            actuarial soundness of the National Flood Insurance Program;
                (5) the effectiveness of nationally recognized codes in
            allowing innovative materials and systems for flood-resistant
            construction;
                (6) the feasibility and effectiveness of providing an
            incentive in lower premium rates for flood insurance coverage
            under such Act for structures meeting whichever of such widely
            used and nationally recognized building codes or any applicable
            local building codes provides greater protection from flood
            damage;

    [[Page 126 STAT. 957]]

                (7) the impact of such a building code requirement on rural
            communities with different building code challenges than urban
            communities; and
                (8) the impact of such a building code requirement on Indian
            reservations.
    SEC. 100236. STUDY OF PARTICIPATION AND AFFORDABILITY FOR CERTAIN
                                  POLICYHOLDERS.

        (a) FEMA Study.--The Administrator shall conduct a study of--
                (1) methods to encourage and maintain participation in the
            National Flood Insurance Program;
                (2) methods to educate consumers about the National Flood
            Insurance Program and the flood risk associated with their
            property;
                (3) methods for establishing an affordability framework for
            the National Flood Insurance Program, including methods to aid
            individuals to afford risk-based premiums under the National
            Flood Insurance Program through targeted assistance rather than
            generally subsidized rates, including means-tested vouchers; and
                (4) the implications for the National Flood Insurance
            Program and the Federal budget of using each such method.

        (b) <<NOTE: Contracts.>>  National Academy of Sciences Economic
    Analysis.--To inform the Administrator in the conduct of the study under
    subsection (a), the Administrator shall enter into a contract under
    which the National Academy of Sciences, in consultation with the
    Comptroller General of the United States, shall conduct and submit to
    the Administrator an economic analysis of the costs and benefits to the
    Federal Government of a flood insurance program with full risk-based
    premiums, combined with means-tested Federal assistance to aid
    individuals who cannot afford coverage, through an insurance voucher
    program. The analysis shall compare the costs of a program of risk-based
    rates and means-tested assistance to the current system of subsidized
    flood insurance rates and federally funded disaster relief for people
    without coverage.

        (c) Report.--Not later than 270 days after the date of enactment of
    this Act, the Administrator shall submit to the Committee on Banking,
    Housing, and Urban Affairs of the Senate and the Committee on Financial
    Services of the House of Representatives a report that contains the
    results of the study and analysis under this section.
        (d) Funding.--Notwithstanding section 1310 of the National Flood
    Insurance Act of 1968 (42 U.S.C. 4017), there shall be available to the
    Administrator from the National Flood Insurance Fund, of amounts not
    otherwise obligated, not more than $750,000 to carry out this section.
    SEC. 100237. STUDY AND REPORT CONCERNING THE PARTICIPATION OF
                                  INDIAN TRIBES AND MEMBERS OF INDIAN
                                  TRIBES IN THE NATIONAL FLOOD
                                  INSURANCE PROGRAM.

        (a) Definition.--In this section, the term ``Indian tribe'' has the
    meaning given that term in section 4 of the Indian Self-Determination
    and Education Assistance Act (25 U.S.C. 450b).
        (b) Findings.--Congress finds that participation by Indian tribes in
    the National Flood Insurance Program is low. Only 45 of 565 Indian
    tribes participate in the National Flood Insurance Program.

    [[Page 126 STAT. 958]]

        (c) Study.--The Comptroller General of the United States, in
    coordination and consultation with Indian tribes and members of Indian
    tribes throughout the United States, shall carry out a study that
    examines--
                (1) the factors contributing to the current rates of
            participation by Indian tribes and members of Indian tribes in
            the National Flood Insurance Program; and
                (2) methods of encouraging participation by Indian tribes
            and members of Indian tribes in the National Flood Insurance
            Program.

        (d) Report.--Not later than 6 months after the date of enactment of
    this Act, the Comptroller General shall submit to Congress a report
    that--
                (1) contains the results of the study carried out under
            subsection (c);
                (2) describes the steps that the Administrator should take
            to increase awareness and encourage participation by Indian
            tribes and members of Indian tribes in the National Flood
            Insurance Program; and
                (3) identifies any legislative changes that would encourage
            participation by Indian tribes and members of Indian tribes in
            the National Flood Insurance Program.
    SEC. 100238. TECHNICAL CORRECTIONS.

        (a) Flood Disaster Protection Act of 1973.--The Flood Disaster
    Protection Act of 1973 (42 U.S.C. 4002 et seq.) is amended--
                (1) <<NOTE: 42 USC 40033et seq.>>  by striking ``Director''
            each place that term appears, except in section 102(f)(3) (42
            U.S.C. 4012a(f)(3)), and inserting ``Administrator''; and
                (2) in section 201(b) (42 U.S.C. 4105(b)), by striking
            ``Director's'' and inserting ``Administrator's''.

        (b) National Flood Insurance Act of 1968.--The National Flood
    Insurance Act of 1968 (42 U.S.C. 4001 et seq.) is amended--
                (1) <<NOTE: 42 USC 40113et seq.>>  by striking ``Director''
            each place that term appears and inserting ``Administrator'';
                (2) in section 1363 (42 U.S.C. 4104), by striking
            ``Director's'' each place that term appears and inserting
            ``Administrator's''; and
                (3) in section 1370(a)(9) (42 U.S.C. 4121(a)(9)), by
            striking ``the Office of Thrift Supervision,''.

        (c) Federal Flood Insurance Act of 1956.--Section 15(e) of the
    Federal Flood Insurance Act of 1956 (42 U.S.C. 2414(e)) is amended by
    striking ``Director'' each place that term appears and inserting
    ``Administrator''.
    SEC. 100239. USE OF PRIVATE INSURANCE TO SATISFY MANDATORY
                                  PURCHASE REQUIREMENT.

        (a) Amendments.--Section 102(b) of the Flood Disaster Protection Act
    of 1973 (42 U.S.C. 4012a(b)) is amended--
                (1) in paragraph (1)--
                        (A) by striking the period at the end and inserting
                    ``; and'';
                        (B) by striking ``lending institutions not to make''
                    and inserting ``lending institutions--
                        ``(A) not to make''; and
                        (C) by adding at the end the following:

    [[Page 126 STAT. 959]]

                        ``(B) to accept private flood insurance as
                    satisfaction of the flood insurance coverage requirement
                    under subparagraph (A) if the coverage provided by such
                    private flood insurance meets the requirements for
                    coverage under such subparagraph.'';
                (2) in paragraph (2)--
                        (A) by striking ``paragraph (1)'' each place that
                    term appears and inserting ``paragraph (1)(A)''; and
                        (B) by inserting after the first sentence the
                    following: ``Each Federal agency lender shall accept
                    private flood insurance as satisfaction of the flood
                    insurance coverage requirement under the preceding
                    sentence if the flood insurance coverage provided by
                    such private flood insurance meets the requirements for
                    coverage under such sentence.'';
                (3) in paragraph (3), in the matter following subparagraph
            (B), by striking ``paragraph (1).'' and inserting ``paragraph
            (1)(A). The Federal National Mortgage Association and the
            Federal Home Loan Mortgage Corporation shall accept private
            flood insurance as satisfaction of the flood insurance coverage
            requirement under paragraph (1)(A) if the flood insurance
            coverage provided by such private flood insurance meets the
            requirements for coverage under such paragraph and any
            requirements established by the Federal National Mortgage
            Association or the Federal Home Loan Mortgage Corporation,
            respectively, relating to the financial solvency, strength, or
            claims-paying ability of private insurance companies from which
            the Federal National Mortgage Association or the Federal Home
            Loan Mortgage Corporation will accept private flood
            insurance.''; and
                (4) by adding at the end the following:
                ``(5) Rule of construction.--Nothing in this subsection
            shall be construed to supersede or limit the authority of a
            Federal entity for lending regulation, the Federal Housing
            Finance Agency, a Federal agency lender, the Federal National
            Mortgage Association, or the Federal Home Loan Mortgage
            Corporation to establish requirements relating to the financial
            solvency, strength, or claims-paying ability of private
            insurance companies from which the entity or agency will accept
            private flood insurance.
                ``(6) Notice.--
                        ``(A) In general.--Each lender shall disclose to a
                    borrower that is subject to this subsection that--
                              ``(i) flood insurance is available from
                          private insurance companies that issue standard
                          flood insurance policies on behalf of the national
                          flood insurance program or directly from the
                          national flood insurance program;
                              ``(ii) flood insurance that provides the same
                          level of coverage as a standard flood insurance
                          policy under the national flood insurance program
                          may be available from a private insurance company
                          that issues policies on behalf of the company; and
                              ``(iii) the borrower is encouraged to compare
                          the flood insurance coverage, deductibles,
                          exclusions, conditions and premiums associated
                          with flood insurance policies issued on behalf of
                          the national flood insurance

    [[Page 126 STAT. 960]]

                          program and policies issued on behalf of private
                          insurance companies and to direct inquiries
                          regarding the availability, cost, and comparisons
                          of flood insurance coverage to an insurance agent.
                        ``(B) Rule of construction.--Nothing in this
                    paragraph shall be construed as affecting or otherwise
                    limiting the authority of a Federal entity for lending
                    regulation to approve any disclosure made by a regulated
                    lending institution for purposes of complying with
                    subparagraph (A).
                ``(7) Private flood insurance defined.--In this subsection,
            the term `private flood insurance' means an insurance policy
            that--
                        ``(A) is issued by an insurance company that is--
                              ``(i) licensed, admitted, or otherwise
                          approved to engage in the business of insurance in
                          the State or jurisdiction in which the insured
                          building is located, by the insurance regulator of
                          that State or jurisdiction; or
                              ``(ii) in the case of a policy of difference
                          in conditions, multiple peril, all risk, or other
                          blanket coverage insuring nonresidential
                          commercial property, is recognized, or not
                          disapproved, as a surplus lines insurer by the
                          insurance regulator of the State or jurisdiction
                          where the property to be insured is located;
                        ``(B) provides flood insurance coverage which is at
                    least as broad as the coverage provided under a standard
                    flood insurance policy under the national flood
                    insurance program, including when considering
                    deductibles, exclusions, and conditions offered by the
                    insurer;
                        ``(C) includes--
                              ``(i) a requirement for the insurer to give 45
                          days' written notice of cancellation or non-
                          renewal of flood insurance coverage to--
                                        ``(I) the insured; and
                                        ``(II) the regulated lending
                                    institution or Federal agency lender;
                              ``(ii) information about the availability of
                          flood insurance coverage under the national flood
                          insurance program;
                              ``(iii) a mortgage interest clause similar to
                          the clause contained in a standard flood insurance
                          policy under the national flood insurance program;
                          and
                              ``(iv) <<NOTE: Deadline.>>  a provision
                          requiring an insured to file suit not later than 1
                          year after date of a written denial of all or part
                          of a claim under the policy; and
                        ``(D) contains cancellation provisions that are as
                    restrictive as the provisions contained in a standard
                    flood insurance policy under the national flood
                    insurance program.''.

        (b) Technical and Conforming Amendment.--Section 1364(a)(3)(C) of
    the National Flood Insurance Act of 1968 (42 U.S.C. 4104a(a)(3)(C)) is
    amended by inserting after ``private insurers'' the following: ``, as
    required under section 102(b)(6) of the Flood Disaster Protection Act of
    1973 (42 U.S.C. 4012a(b)(6))''.

    [[Page 126 STAT. 961]]

    SEC. 100240. LEVEES CONSTRUCTED ON CERTAIN PROPERTIES.

        (a) Definition.--In this section, the term ``covered hazard
    mitigation land'' means land that--
                (1) was acquired and deed restricted under section 1366 of
            the National Flood Insurance Act of 1968 (42 U.S.C. 4104c)
            during the period beginning on January 1, 1999, and ending
            December 31, 2011;
                (2) is located at--
                        (A) 1029 Oak Street, Fargo, North Dakota;
                        (B) 27 South Terrace, Fargo, North Dakota;
                        (C) 1033 Oak Street, Fargo, North Dakota;
                        (D) 308 Schnell Drive, Oxbow, North Dakota; or
                        (E) 306 Schnell Drive, Oxbow, North Dakota; and
                (3) is located in a community that--
                        (A) is participating in the National Flood Insurance
                    Program on the date on which a State, local, or tribal
                    government submits an application requesting to
                    construct a permanent flood risk reduction levee under
                    subsection (b); and
                        (B) <<NOTE: Certification.>>  certifies to the
                    Administrator and the Chief of Engineers that the
                    community will continue to participate in the National
                    Flood Insurance Program.

        (b) Authority.--Notwithstanding any other prohibition on
    construction on property acquired with funding from the Federal
    Emergency Management Agency for conversion to open space purposes, the
    Administrator shall allow the construction of a permanent flood risk
    reduction levee by a State, local, or tribal government on covered
    hazard mitigation land if--
                (1) <<NOTE: Determination.>>  the Administrator and the
            Chief of Engineers make a determination that--
                        (A) construction of the proposed permanent flood
                    risk reduction levee would more effectively mitigate
                    against flooding risk than an open floodplain or other
                    flood risk reduction measures;
                        (B) the proposed permanent flood risk reduction
                    levee complies with Federal, State, and local
                    requirements, including mitigation of adverse impacts
                    and implementation of floodplain management
                    requirements, which shall include an evaluation of
                    whether the construction, operation, and maintenance of
                    the proposed levee--
                              (i) would continue to meet best available
                          industry standards and practices;
                              (ii) would be the most cost-effective measure
                          to protect against the assessed flood risk; and
                              (iii) minimizes future costs to the Federal
                          Government;
                        (C) the State, local, or tribal government seeking
                    to construct the proposed permanent flood risk reduction
                    levee has provided an adequate maintenance plan that
                    documents the procedures the State, local, or tribal
                    government will use to ensure that the stability,
                    height, and overall integrity of the proposed levee and
                    the structure and systems of the proposed levee are
                    maintained, including--
                              (i) specifying the maintenance activities to
                          be performed;
                              (ii) specifying the frequency with which
                          maintenance activities will be performed;

    [[Page 126 STAT. 962]]

                              (iii) specifying the person responsible for
                          performing each maintenance activity (by name or
                          title);
                              (iv) detailing the plan for financing the
                          maintenance of the levee; and
                              (v) documenting the ability of the State,
                          local, or tribal government to finance the
                          maintenance of the levee; and
                (2) before the commencement of construction, the State,
            local, or tribal government provides to the Administrator an
            amount--
                        (A) equal to the Federal share of all project costs
                    previously provided by the Administrator under the
                    applicable program for each deed restricted parcel of
                    the covered hazard mitigation land, which the
                    Administrator shall deposit in the National Flood
                    Insurance Fund; and
                        (B) that does not include any Federal funds.

        (c) Maintenance Certification.--
                (1) In general.--A State, local, or tribal government that
            constructs a permanent flood risk reduction levee under
            subsection (b) shall submit to the Administrator and the Chief
            of Engineers an annual certification indicating whether the
            State, local, or tribal government is in compliance with the
            maintenance plan provided under subsection (b)(1)(C).
                (2) <<NOTE: Determination.>>  Review.--The Chief of
            Engineers shall review each certification submitted under
            paragraph (1) and determine whether the State, local, or tribal
            government has complied with the maintenance plan.
    SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES AFFECTED BY
                                  FLOODING FROM FEDERAL LANDS.

        Section 1306(c)(2) of the National Flood Insurance Act of 1968 (42
    U.S.C. 4013(c)(2)) is amended--
                (1) in subparagraph (A), by striking ``or'' at the end;
                (2) in subparagraph (B), by striking the period at the end
            and inserting ``; or''; and
                (3) by adding at the end the following:
                        ``(C) the initial purchase of flood insurance
                    coverage for private property if--
                              ``(i) <<NOTE: Determination.>>  the
                          Administrator determines that the property is
                          affected by flooding on Federal land that is a
                          result of, or is exacerbated by, post-wildfire
                          conditions, after consultation with an authorized
                          employee of the Federal agency that has
                          jurisdiction of the land on which the wildfire
                          that caused the post-wildfire conditions occurred;
                          and
                              ``(ii) <<NOTE: Deadline.>>  the flood
                          insurance coverage was purchased not later than 60
                          days after the fire containment date, as
                          determined by the appropriate Federal employee,
                          relating to the wildfire that caused the post-
                          wildfire conditions described in clause (i).''.
    SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD INSURANCE
                                  PLAN.

        Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
    4011 et seq.) is amended by adding at the end the following:

    [[Page 126 STAT. 963]]

    ``SEC. <<NOTE: 42 USC 4032.>> 1325. TREATMENT OF SWIMMING POOL
                              ENCLOSURES OUTSIDE OF HURRICANE SEASON.

        ``(a) <<NOTE: Time period.>>  In General.--Notwithstanding any other
    provision of law, including the adequate land use and control measures
    developed pursuant to section 1361 and applicable to non-one- and two-
    family structures located within coastal areas, as identified by the
    Administrator, the following may be permitted:
                ``(1) Nonsupporting breakaway walls in the space below the
            lowest elevated floor of a building, if the space is used solely
            for a swimming pool between November 30 and June 1 of any year,
            in an area designated as Zone V on a flood insurance rate map.
                ``(2) Openings in walls in the space below the lowest
            elevated floor of a building, if the space is used solely for a
            swimming pool between November 30 and June 1 of any year, in an
            area designated as Zone A on a flood insurance rate map.

        ``(b) Rule of Construction.--Nothing in subsection (a) shall be
    construed to alter the terms and conditions of eligibility and
    insurability of coverage for a building under the standard flood
    insurance policy under the national flood insurance program.''.
    SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH
                                  ACTIVITIES AND COMMUNITY BUILDING
                                  CODE ADMINISTRATION GRANTS.

        (a) Amendments.--Section 105(a) of the Housing and Community
    Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
                (1) by redesignating paragraph (25) as paragraph (26);
                (2) by redesignating the second paragraph designated as
            paragraph (24) (relating to tornado-safe shelters) as paragraph
            (25);
                (3) in paragraph (24) (relating to homeownership among
            persons with low and moderate income), by striking ``and'' at
            the end;
                (4) in paragraph (25), as so redesignated, by striking
            ``and'' at the end;
                (5) in paragraph (26), as so redesignated, by striking the
            period at the end and inserting a semicolon; and
                (6) by adding at the end the following new paragraphs:
                ``(27) supplementing existing State or local funding for
            administration of building code enforcement by local building
            code enforcement departments, including for increasing staffing,
            providing staff training, increasing staff competence and
            professional qualifications, and supporting individual
            certification or departmental accreditation, and for capital
            expenditures specifically dedicated to the administration of the
            building code enforcement department, except that, to be
            eligible to use amounts as provided in this paragraph--
                        ``(A) <<NOTE: Waiver authority.>>  a building code
                    enforcement department shall provide matching, non-
                    Federal funds to be used in conjunction with amounts
                    used under this paragraph in an amount--
                              ``(i) in the case of a building code
                          enforcement department serving an area with a
                          population of more than 50,000, equal to not less
                          than 50 percent of the total amount of any funds
                          made available under this title that are used
                          under this paragraph;

    [[Page 126 STAT. 964]]

                              ``(ii) in the case of a building code
                          enforcement department serving an area with a
                          population of between 20,001 and 50,000, equal to
                          not less than 25 percent of the total amount of
                          any funds made available under this title that are
                          used under this paragraph; and
                              ``(iii) in the case of a building code
                          enforcement department serving an area with a
                          population of less than 20,000, equal to not less
                          than 12.5 percent of the total amount of any funds
                          made available under this title that are used
                          under this paragraph,
                    except that the Secretary may waive the matching fund
                    requirements under this subparagraph, in whole or in
                    part, based upon the level of economic distress of the
                    jurisdiction in which is located the local building code
                    enforcement department that is using amounts for
                    purposes under this paragraph, and shall waive such
                    matching fund requirements in whole for any recipient
                    jurisdiction that has dedicated all building code
                    permitting fees to the conduct of local building code
                    enforcement; and
                        ``(B) any building code enforcement department using
                    funds made available under this title for purposes under
                    this paragraph shall empanel a code administration and
                    enforcement team consisting of at least 1 full-time
                    building code enforcement officer, a city planner, and a
                    health planner or similar officer; and
                ``(28) provision of assistance to local governmental
            agencies responsible for floodplain management activities
            (including such agencies of Indians tribes, as such term is
            defined in section 4 of the Native American Housing Assistance
            and Self-Determination Act of 1996 (25 U.S.C. 4103)) in
            communities that participate in the national flood insurance
            program under the National Flood Insurance Act of 1968 (42
            U.S.C. 4001 et seq.), only for carrying out outreach activities
            to encourage and facilitate the purchase of flood insurance
            protection under such Act by owners and renters of properties in
            such communities and to promote educational activities that
            increase awareness of flood risk reduction; except that--
                        ``(A) amounts used as provided under this paragraph
                    shall be used only for activities designed to--
                              ``(i) identify owners and renters of
                          properties in communities that participate in the
                          national flood insurance program, including owners
                          of residential and commercial properties;
                              ``(ii) <<NOTE: Notification.>>  notify such
                          owners and renters when their properties become
                          included in, or when they are excluded from, an
                          area having special flood hazards and the effect
                          of such inclusion or exclusion on the
                          applicability of the mandatory flood insurance
                          purchase requirement under section 102 of the
                          Flood Disaster Protection Act of 1973 (42 U.S.C.
                          4012a) to such properties;
                              ``(iii) educate such owners and renters
                          regarding the flood risk and reduction of this
                          risk in their community, including the continued
                          flood risks to areas that are no longer subject to
                          the flood insurance mandatory purchase
                          requirement;

    [[Page 126 STAT. 965]]

                              ``(iv) educate such owners and renters
                          regarding the benefits and costs of maintaining or
                          acquiring flood insurance, including, where
                          applicable, lower-cost preferred risk policies
                          under this title for such properties and the
                          contents of such properties;
                              ``(v) encourage such owners and renters to
                          maintain or acquire such coverage;
                              ``(vi) <<NOTE: Notification.>>  notify such
                          owners of where to obtain information regarding
                          how to obtain such coverage, including a telephone
                          number, mailing address, and Internet site of the
                          Administrator of the Federal Emergency Management
                          Agency (in this paragraph referred to as the
                          `Administrator') where such information is
                          available; and
                              ``(vii) educate local real estate agents in
                          communities participating in the national flood
                          insurance program regarding the program and the
                          availability of coverage under the program for
                          owners and renters of properties in such
                          communities, and establish coordination and
                          liaisons with such real estate agents to
                          facilitate purchase of coverage under the National
                          Flood Insurance Act of 1968 and increase awareness
                          of flood risk reduction;
                        ``(B) in any fiscal year, a local governmental
                    agency may not use an amount under this paragraph that
                    exceeds 3 times the amount that the agency certifies, as
                    the Secretary, in consultation with the Administrator,
                    shall require, that the agency will contribute from non-
                    Federal funds to be used with such amounts used under
                    this paragraph only for carrying out activities
                    described in subparagraph (A); and for purposes of this
                    subparagraph, the term `non-Federal funds' includes
                    State or local government agency amounts, in-kind
                    contributions, any salary paid to staff to carry out the
                    eligible activities of the local governmental agency
                    involved, the value of the time and services contributed
                    by volunteers to carry out such services (at a rate
                    determined by the Secretary), and the value of any
                    donated material or building and the value of any lease
                    on a building;
                        ``(C) a local governmental agency that uses amounts
                    as provided under this paragraph may coordinate or
                    contract with other agencies and entities having
                    particular capacities, specialties, or experience with
                    respect to certain populations or constituencies,
                    including elderly or disabled families or persons, to
                    carry out activities described in subparagraph (A) with
                    respect to such populations or constituencies; and
                        ``(D) <<NOTE: Reports. Deadline.>>  each local
                    government agency that uses amounts as provided under
                    this paragraph shall submit a report to the Secretary
                    and the Administrator, not later than 12 months after
                    such amounts are first received, which shall include
                    such information as the Secretary and the Administrator
                    jointly consider appropriate to describe the activities
                    conducted using such amounts and the effect of such
                    activities on the retention or acquisition of flood
                    insurance coverage.''.

    [[Page 126 STAT. 966]]

        (b) Sunset.--Effective on the date that is 2 years after the date of
    enactment of this Act, section 105(a) of the Housing and Community
    Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
                (1) in paragraph (25), as so redesignated by subsection (a)
            of this subsection, by adding ``and'' at the end;
                (2) in paragraph (26), as so redesignated by subsection (a)
            of this subsection, by striking the semicolon at the end and
            inserting a period; and
                (3) by striking paragraphs (27) and (28), as added by
            subsection (a) of this subsection.
    SEC. 100244. TERMINATION OF FORCE-PLACED INSURANCE.

        (a) In General.--Section 102(e) of the Flood Disaster Protection Act
    of 1973 (42 U.S.C. 4012a(e)) is amended--
                (1) in paragraph (2), by striking ``purchasing the
            insurance'' and inserting ``purchasing the insurance, including
            premiums or fees incurred for coverage beginning on the date on
            which flood insurance coverage lapsed or did not provide a
            sufficient coverage amount'';
                (2) by redesignating paragraphs (3) and (4) as paragraphs
            (5) and (6), respectively; and
                (3) by inserting after paragraph (2) the following new
            paragraphs:
                ``(3) Termination of force-placed insurance.--Within 30 days
            of receipt by the lender or servicer of a confirmation of a
            borrower's existing flood insurance coverage, the lender or
            servicer shall--
                        ``(A) terminate any insurance purchased by the
                    lender or servicer under paragraph (2); and
                        ``(B) refund to the borrower all premiums paid by
                    the borrower for any insurance purchased by the lender
                    or servicer under paragraph (2) during any period during
                    which the borrower's flood insurance coverage and the
                    insurance coverage purchased by the lender or servicer
                    were each in effect, and any related fees charged to the
                    borrower with respect to the insurance purchased by the
                    lender or servicer during such period.
                ``(4) Sufficiency of demonstration.--For purposes of
            confirming a borrower's existing flood insurance coverage, a
            lender or servicer for a loan shall accept from the borrower an
            insurance policy declarations page that includes the existing
            flood insurance policy number and the identity of, and contact
            information for, the insurance company or agent.''.
    SEC. 100245. FEMA AUTHORITY ON TRANSFER OF POLICIES.

        Section 1345 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4081) is amended by adding at the end the following new subsection:
        ``(d) FEMA Authority on Transfer of Policies.--Notwithstanding any
    other provision of this title, the Administrator may, at the discretion
    of the Administrator, refuse to accept the transfer of the
    administration of policies for coverage under the flood insurance
    program under this title that are written and administered by any
    insurance company or other insurer, or any insurance agent or broker.''.

    [[Page 126 STAT. 967]]

    SEC. 100246. REIMBURSEMENT OF CERTAIN EXPENSES.

        Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C.
    4104) is amended by striking subsection (f) and inserting the following:
        ``(f) Reimbursement of Certain Expenses.--When, incident to any
    appeal under subsection (b) or (c) of this section, the owner or lessee
    of real property or the community, as the case may be, incurs expense in
    connection with the services of surveyors, engineers, or similar
    services, but not including legal services, in the effecting of an
    appeal based on a scientific or technical error on the part of the
    Federal Emergency Management Agency, which is successful in whole or
    part, the Administrator shall reimburse such individual or community to
    an extent measured by the ratio of the successful portion of the appeal
    as compared to the entire appeal and applying such ratio to the
    reasonable value of all such services, but no reimbursement shall be
    made by the Administrator in respect to any fee or expense payment, the
    payment of which was agreed to be contingent upon the result of the
    appeal. The amounts available for implementing this subsection shall not
    exceed $250,000. <<NOTE: Regulations.>> The Administrator shall
    promulgate regulations to carry out this subsection.''.
    SEC. 100247. FIO STUDY ON RISKS, HAZARDS, AND INSURANCE.

        (a) <<NOTE: Deadline. Reports.>>  In General.--Not later than 1 year
    after the date of enactment of this Act, the Director of the Federal
    Insurance Office shall conduct a study and submit to the Committee on
    Banking, Housing, and Urban Affairs of the Senate and the Committee on
    Financial Services of the House of Representatives a report providing an
    assessment of the current state of the market for natural catastrophe
    insurance in the United States.

        (b) Factors.--The study and report required under subsection (a)
    shall assess--
                (1) the current condition of, as well as the outlook for,
            the availability and affordability of insurance for natural
            catastrophe perils in all regions of the United States;
                (2) the current ability of States, communities, and
            individuals to mitigate their natural catastrophe risks,
            including the affordability and feasibility of such mitigation
            activities;
                (3) the current state of catastrophic insurance and
            reinsurance markets and the current approaches in providing
            insurance protection to different sectors of the population of
            the United States;
                (4) the current financial condition of State residual
            markets and catastrophe funds in high-risk regions, including
            the likelihood of insolvency following a natural catastrophe,
            the concentration of risks within such funds, the reliance on
            post-event assessments and State funding, and the adequacy of
            rates; and
                (5) the current role of the Federal Government and State and
            local governments in providing incentives for feasible risk
            mitigation efforts and the cost of providing post-natural
            catastrophe aid in the absence of insurance.

        (c) Additional Factors.--The study and report required under
    subsection (a) shall also contain an assessment of current approaches to
    insuring natural catastrophe risks in the United States and such other
    information as the Director of the Federal Insurance Office determines
    necessary or appropriate.

    [[Page 126 STAT. 968]]

        (d) Consultation.--In carrying out the study and report under
    subsection (a), the Director of the Federal Insurance Office shall
    consult with the National Academy of Sciences, State insurance
    regulators, consumer organizations, representatives of the insurance and
    reinsurance industry, policyholders, and other organizations and
    experts, as appropriate.
    SEC. 100248. FLOOD PROTECTION IMPROVEMENTS CONSTRUCTED ON CERTAIN
                                  PROPERTIES.

        (a) Definition.--In this section, the term ``covered hazard
    mitigation land'' means land that--
                (1) was acquired and deed restricted under section 1366 of
            the National Flood Insurance Act of 1968 (42 U.S.C. 4104c)
            during the period beginning on March 1, 2008, and ending on
            December 31, 2008;
                (2) is located at--
                        (A) 809 East Main Cross Street, Findlay, Ohio,
                    45840;
                        (B) 801 East Main Cross Street, Findlay, Ohio,
                    45840;
                        (C) 725 East Main Cross Street, Findlay, Ohio,
                    45840; or
                        (D) 631 East Main Cross Street, Findlay, Ohio,
                    45840; and
                (3) is located in a community that--
                        (A) is participating in the National Flood Insurance
                    Program on the date on which a State, local, or tribal
                    government submits an application requesting to
                    construct a flood protection improvement under
                    subsection (b); and
                        (B) <<NOTE: Certification.>>  certifies to the
                    Administrator and the Chief of Engineers that the
                    community will continue to participate in the National
                    Flood Insurance Program.

        (b) Authority.--Notwithstanding any other prohibition on
    construction on property acquired with funding from the Federal
    Emergency Management Agency for conversion to open space purposes, the
    Administrator shall allow the construction of a flood protection
    improvement by a State, local, or tribal government on covered hazard
    mitigation land if--
                (1) <<NOTE: Determination.>>  the Administrator and the
            Chief of Engineers make a determination that--
                        (A) construction of the proposed flood protection
                    improvement would more effectively mitigate against
                    flooding risk than an open floodplain or other flood
                    risk reduction measures;
                        (B) the proposed flood protection improvement
                    complies with Federal, State, and local requirements,
                    including mitigation of adverse impacts and
                    implementation of floodplain management requirements,
                    which shall include an evaluation of whether the
                    construction, operation, and maintenance of the proposed
                    flood protection improvement--
                              (i) would continue to meet best available
                          industry standards and practices;
                              (ii) would be the most cost-effective measure
                          to protect against the assessed flood risk; and
                              (iii) minimizes future costs to the Federal
                          Government;
                        (C) the State, local, or tribal government seeking
                    to construct the flood protection improvement has
                    provided

    [[Page 126 STAT. 969]]

                    an adequate maintenance plan that documents the
                    procedures the State, local, or tribal government will
                    use to ensure that the stability, height, and overall
                    integrity of the proposed flood protection improvement
                    and the structure and systems of the proposed flood
                    protection improvement are maintained, including--
                              (i) specifying the maintenance activities to
                          be performed;
                              (ii) specifying the frequency with which
                          maintenance activities will be performed;
                              (iii) specifying the person responsible for
                          performing each maintenance activity (by name or
                          title);
                              (iv) detailing the plan for financing the
                          maintenance of the flood protection improvement;
                          and
                              (v) documenting the ability of the State,
                          local, or tribal government to finance the
                          maintenance of the flood protection improvement;
                          and
                (2) before the commencement of construction, the State,
            local, or tribal government provides to the Administrator an
            amount--
                        (A) equal to the Federal share of all project costs
                    previously provided by the Administrator under the
                    applicable program for each deed restricted parcel of
                    the covered hazard mitigation land, which the
                    Administrator shall deposit in the National Flood
                    Insurance Fund; and
                        (B) that does not include any Federal funds.

        (c) Maintenance Certification.--
                (1) In general.--A State, local, or tribal government that
            constructs a flood protection improvement under subsection (b)
            shall submit to the Administrator and the Chief of Engineers an
            annual certification indicating whether the State, local, or
            tribal government is in compliance with the maintenance plan
            provided under subsection (b)(1)(C).
                (2) <<NOTE: Determination.>>  Review.--The Chief of
            Engineers shall review each certification submitted under
            paragraph (1) and determine whether the State, local, or tribal
            government has complied with the maintenance plan.
    SEC. 100249. <<NOTE: 42 USC 4130.>> NO CAUSE OF ACTION.

        No cause of action shall exist and no claim may be brought against
    the United States for violation of any notification requirement imposed
    upon the United States by this subtitle or any amendment made by this
    subtitle.

     Subtitle <<NOTE: Consumer Option for an Alternative System to Allocate
    Losses Act of 2012. 42 USC 4001 note.>> B--Alternative Loss Allocation
    SEC. 100251. SHORT TITLE.

        This subtitle may be cited as the ``Consumer Option for an
    Alternative System to Allocate Losses Act of 2012'' or the ``COASTAL Act
    of 2012''.
    SEC. 100252. ASSESSING AND MODELING NAMED STORMS OVER COASTAL
                                  STATES.

        Subtitle C of title XII of the Omnibus Public Land Management Act of
    2009 (33 U.S.C. 3601 et seq.) (also known as the ``Integrated Coastal
    and Ocean Observation System Act of 2009'') is amended by adding at the
    end the following:

    [[Page 126 STAT. 970]]

    ``SEC. 12312. <<NOTE: 33 USC 3611.>> ASSESSING AND MODELING NAMED
                                STORMS OVER COASTAL STATES.

        ``(a) Definitions.--In this section:
                ``(1) COASTAL formula.--The term `COASTAL Formula' has the
            meaning given the term in section 1337(a) of the National Flood
            Insurance Act of 1968.
                ``(2) Coastal state.--The term `coastal State' has the
            meaning given the term `coastal state' in section 304 of the
            Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
                ``(3) Coastal waters.--The term `coastal waters' has the
            meaning given the term in such section.
                ``(4) Covered data.--The term `covered data' means, with
            respect to a named storm identified by the Administrator under
            subsection (b)(2)(A), empirical data that are--
                        ``(A) collected before, during, or after such storm;
                    and
                        ``(B) necessary to determine magnitude and timing of
                    wind speeds, rainfall, the barometric pressure, river
                    flows, the extent, height, and timing of storm surge,
                    topographic and bathymetric data, and other measures
                    required to accurately model and assess damage from such
                    storm.
                ``(5) Indeterminate loss.--The term `indeterminate loss' has
            the meaning given the term in section 1337(a) of the National
            Flood Insurance Act of 1968.
                ``(6) Named storm.--The term `named storm' means any
            organized weather system with a defined surface circulation and
            maximum winds of at least 39 miles per hour which the National
            Hurricane Center of the United States National Weather Service
            names as a tropical storm or a hurricane.
                ``(7) Named storm event model.--The term `Named Storm Event
            Model' means the official meteorological and oceanographic
            computerized model, developed by the Administrator under
            subsection (b)(1)(A), which utilizes covered data to replicate
            the magnitude, timing, and spatial variations of winds,
            rainfall, and storm surges associated with named storms that
            threaten any portion of a coastal State.
                ``(8) Participant.--The term `participant' means a Federal,
            State, or private entity that chooses to cooperate with the
            Administrator in carrying out the provisions of this section by
            collecting, contributing, and maintaining covered data.
                ``(9) Post-storm assessment.--The term `post-storm
            assessment' means a scientific assessment produced and certified
            by the Administrator to determine the magnitude, timing, and
            spatial variations of winds, rainfall, and storm surges
            associated with a specific named storm to be used in the COASTAL
            Formula.
                ``(10) State.--The term `State' means a State of the United
            States, the District of Columbia, the Commonwealth of Puerto
            Rico, and any other territory or possession of the United
            States.

        ``(b) Named Storm Event Model and Post-storm Assessment.--
                ``(1) Establishment of named storm event model.--
                        ``(A) <<NOTE: Deadline. Regulations.>>  In
                    general.--Not later than 540 days after the date of the
                    enactment of the Consumer Option for an Alternative
                    System to Allocate Losses Act of 2012, the Administrator
                    shall develop by regulation the Named Storm Event Model.

    [[Page 126 STAT. 971]]

                        ``(B) Accuracy.--The Named Storm Event Model shall
                    be designed to generate post-storm assessments, as
                    provided in paragraph (2), that have a degree of
                    accuracy of not less than 90 percent for every
                    indeterminate loss for which a post-storm assessment is
                    utilized.
                ``(2) Post-storm assessment.--
                        ``(A) Identification of named storms threatening
                    coastal states.--After the establishment of the COASTAL
                    Formula, the Administrator shall, in consultation with
                    the Secretary of Homeland Security, identify named
                    storms that may reasonably constitute a threat to any
                    portion of a coastal State.
                        ``(B) Post-storm assessment required.--Upon
                    identification of a named storm under subparagraph (A),
                    the Administrator shall develop a post-storm assessment
                    for such named storm using the Named Storm Event Model
                    and covered data collected for such named storm pursuant
                    to the protocol established under subsection (c)(1).
                        ``(C) <<NOTE: Deadline.>>  Submittal of post-storm
                    assessment.--Not later than 90 days after an
                    identification of a named storm is made under
                    subparagraph (A), the Administrator shall submit to the
                    Secretary of Homeland Security the post-storm assessment
                    developed for such storm under subparagraph (B).
                ``(3) Accuracy.--The Administrator shall ensure, to the
            greatest extent practicable, that each post-storm assessment
            developed under paragraph (2) has a degree of accuracy of not
            less than 90 percent.
                ``(4) Certification.--For each post-storm assessment carried
            out under paragraph (2), the Administrator shall--
                        ``(A) certify the degree of accuracy for such
                    assessment, including specific reference to any segments
                    or geographic areas for which the assessment is less
                    than 90 percent accurate; and
                        ``(B) <<NOTE: Reports.>>  report such certification
                    to the Secretary of Homeland Security for the purposes
                    of use with indeterminate loss claims under section 1337
                    of the National Flood Insurance Act of 1968.
                ``(5) Finality of determinations.--A certification of the
            degree of accuracy of a post-storm assessment under this
            subsection by the Administrator shall be final and shall not be
            subject to judicial review.
                ``(6) <<NOTE: Public information.>>  Availability.--The
            Administrator shall make available to the public the Named Storm
            Event Model and any post-storm assessment developed under this
            subsection.

        ``(c) Establishment of a Protocol for Post-storm Assessment.--
                ``(1) <<NOTE: Deadline.>>  In general.--Not later than 540
            days after the date of the enactment of the Consumer Option for
            an Alternative System to Allocate Losses Act of 2012, the
            Administrator shall establish a protocol, based on the plan
            submitted under subsection (d)(3), to collect and assemble all
            covered data required by the Administrator to produce post-storm
            assessments required by subsection (b), including assembling
            data collected by participants and stored in the database
            established under subsection (f) and from such other sources as
            the Administrator considers appropriate.

    [[Page 126 STAT. 972]]

                ``(2) Acquisition of sensors and structures.--If the
            Administrator is unable to use a public or private asset to
            obtain covered data as part of the protocol established under
            paragraph (1), the Administrator may acquire such sensors and
            structures for the placement of sensors as may be necessary to
            obtain such data.
                ``(3) Use of federal assets.--If the protocol requires
            placement of a sensor to develop assessments pursuant to
            subsection (b), the Administrator shall, to the extent
            practicable, use Federal assets for the placement of such
            sensors.
                ``(4) Use of acquired structures.--
                        ``(A) In general.--If the Administrator acquires a
                    structure for the placement of a sensor for purposes of
                    such protocol, the Administrator shall to the extent
                    practical permit other public and private entities to
                    place sensors on such structure to collect--
                              ``(i) meteorological data;
                              ``(ii) national security-related data;
                              ``(iii) navigation-related data;
                              ``(iv) hydrographic data; or
                              ``(v) such other data as the Administrator
                          considers appropriate.
                        ``(B) Receipt of consideration.--The Administrator
                    may receive consideration for the placement of a sensor
                    on a structure under subparagraph (A).
                        ``(C) In-kind consideration.--Consideration received
                    under subparagraph (B) may be received in-kind.
                        ``(D) Use of consideration.--To the extent
                    practicable, consideration received under subparagraph
                    (B) shall be used for the maintenance of sensors used to
                    collect covered data.
                ``(5) Coordinated deployments and data collection
            practices.--The Administrator shall, in consultation with the
            Office of the Federal Coordinator for Meteorology, coordinate
            the deployment of sensors as part of the protocol established
            under paragraph (1) and related data collection carried out by
            Federal, State, academic, and private entities who choose to
            cooperate with the Administrator in carrying out this
            subsection.
                ``(6) Priority acquisition and deployment.--The
            Administrator shall give priority in the acquisition for and
            deployment of sensors under the protocol required by paragraph
            (1) to areas of coastal States that have the highest risk of
            being harmed by named storms.

        ``(d) Assessment of Systems and Efforts to Collect Covered Data.--
                ``(1) Identification of systems and efforts to collect
            covered data.--Not later than <<NOTE: Deadline.>> 180 days after
            the date of the enactment of the Consumer Option for an
            Alternative System to Allocate Losses Act of 2012, the
            Administrator shall, in consultation with the Office of the
            Federal Coordinator for Meteorology--
                        ``(A) <<NOTE: Survey.>>  carry out a survey to
                    identify all Federal and State efforts and systems that
                    are capable of collecting covered data; and

    [[Page 126 STAT. 973]]

                        ``(B) <<NOTE: Consultation.>>  consult with private
                    and academic sector entities to identify domestic
                    private and academic systems that are capable of
                    collecting covered data.
                ``(2) Identification of gaps.--The Administrator shall, in
            consultation with the Office of the Federal Coordinator for
            Meteorology and individuals and entities consulted under
            subsection (e)(3), assess the systems identified under paragraph
            (1) and identify which systems meet the needs of the National
            Oceanic and Atmospheric Administration for the collection of
            covered data, including with respect to the accuracy requirement
            for post-storm assessment under subsection (b)(3).
                ``(3) <<NOTE: Deadline.>>  Plan.--Not later than 270 days
            after the date of the enactment of the Consumer Option for an
            Alternative System to Allocate Losses Act of 2012, the
            Administrator shall, in consultation with the Office of the
            Federal Coordinator for Meteorology, submit to Congress a plan
            for the collection of covered data necessary to develop the
            Named Storm Event Model and post-storm assessment required by
            subsection (b) that addresses any gaps identified in paragraph
            (2).

        ``(e) Coordination of Covered Data Collection and Maintenance by
    Participants.--
                ``(1) In general.--The Administrator shall, in consultation
            with the Office of the Federal Coordinator for Meteorology,
            coordinate the collection and maintenance of covered data by
            participants under this section--
                        ``(A) to streamline the process of collecting
                    covered data in accordance with the protocol established
                    under subsection (c)(1); and
                        ``(B) to maintain transparency of such process and
                    the database established under subsection (f).
                ``(2) Sharing information.--The Administrator shall
            establish a process for sharing among participants information
            relevant to collecting and using covered data for--
                        ``(A) academic research;
                        ``(B) private sector use;
                        ``(C) public outreach; and
                        ``(D) such other purposes as the Administrator
                    considers appropriate.
                ``(3) Consultation.--In carrying out paragraphs (1) and (2),
            the Administrator shall consult with the following:
                        ``(A) The Commanding General of the Corps of
                    Engineers.
                        ``(B) The Administrator of the Federal Emergency
                    Management Agency.
                        ``(C) The Commandant of the Coast Guard.
                        ``(D) The Director of the United States Geological
                    Survey.
                        ``(E) The Office of the Federal Coordinator for
                    Meteorology.
                        ``(F) The Director of the National Science
                    Foundation.
                        ``(G) The Administrator of the National Aeronautics
                    and Space Administration.
                        ``(H) Such public, private, and academic sector
                    entities as the Administrator considers appropriate for
                    purposes of carrying out the provisions of this section.

        ``(f) Establishment of Coastal Wind and Water Event Database.--

    [[Page 126 STAT. 974]]

                ``(1) <<NOTE: Deadline.>>  In general.--Not later than 1
            year after the date of the enactment of the Consumer Option for
            an Alternative System to Allocate Losses Act of 2012, the
            Administrator shall establish a database for the collection and
            compilation of covered data--
                        ``(A) to support the protocol established under
                    subsection (c)(1); and
                        ``(B) for the purposes listed in subsection (e)(2).
                ``(2) Designation.--The database established under paragraph
            (1) shall be known as the `Coastal Wind and Water Event
            Database'.

        ``(g) <<NOTE: Deadline.>>  Comptroller General Study.--Not later
    than 1 year after the date of the enactment of the Consumer Option for
    an Alternative System to Allocate Losses Act of 2012, the Comptroller
    General of the United States shall--
                ``(1) <<NOTE: Audit.>>  complete an audit of Federal efforts
            to collect covered data for purposes of the Consumer Option for
            an Alternative System to Allocate Losses Act of 2012, which
            audit shall--
                        ``(A) examine duplicated Federal efforts to collect
                    covered data; and
                        ``(B) determine the cost effectiveness of such
                    efforts; and
                ``(2) <<NOTE: Reports.>>  submit to the Committee on
            Banking, Housing, and Urban Affairs and the Commerce, Science,
            and Transportation of the Senate and the Committee on Financial
            Services and the Committee on Science, Space, and Technology of
            the House of Representatives a report on the findings of the
            Comptroller General with respect to the audit completed under
            paragraph (1).''.
    SEC. 100253. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE
                                  CLAIMS.

        Part A of chapter II of the National Flood Insurance Act of 1968 (42
    U.S.C. 4051 et seq.) is amended by adding at the end the following:
    ``SEC. 1337. <<NOTE: 42 USC 4057.>> ALTERNATIVE LOSS ALLOCATION
                              SYSTEM FOR INDETERMINATE CLAIMS.

        ``(a) Definitions.--In this section:
                ``(1) Administrator.--The term `Administrator' means the
            Administrator of the Federal Emergency Management Agency.
                ``(2) COASTAL formula.--The term `COASTAL Formula' means the
            formula established under subsection (b).
                ``(3) Coastal state.--The term `coastal State' has the
            meaning given the term `coastal state' in section 304 of the
            Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
                ``(4) Indeterminate loss.--
                        ``(A) In general.--The term `indeterminate loss'
                    means, as determined by an insurance claims adjuster
                    certified under the national flood insurance program and
                    in consultation with an engineer as appropriate, a loss
                    resulting from physical damage to, or loss of, property
                    located in any coastal State arising from the combined
                    perils of flood and wind associated with a named storm.
                        ``(B) Requirements.--An insurance claims adjuster
                    certified under the national flood insurance program
                    shall only determine that a loss is an indeterminate
                    loss if the claims adjuster determines that--

    [[Page 126 STAT. 975]]

                              ``(i) no material remnant of physical
                          buildings or man-made structures remain except
                          building foundations for the specific property for
                          which the claim is made; and
                              ``(ii) there is insufficient or no tangible
                          evidence created, yielded, or otherwise left
                          behind of the specific property for which the
                          claim is made as a result of the named storm.
                ``(5) Named storm.--The term `named storm' means any
            organized weather system with a defined surface circulation and
            maximum winds of not less than 39 miles per hour which the
            National Hurricane Center of the United States National Weather
            Service names as a tropical storm or a hurricane.
                ``(6) Post-storm assessment.--The term `post-storm
            assessment' means the post-storm assessment developed under
            section 12312(b) of the Omnibus Public Land Management Act of
            2009.
                ``(7) State.--The term `State' means a State of the United
            States, the District of Columbia, the Commonwealth of Puerto
            Rico, and any other territory or possession of the United
            States.
                ``(8) Secretary.--The term `Secretary' means the Secretary
            of Homeland Security.
                ``(9) Standard insurance policy.--The term `standard
            insurance policy' means any insurance policy issued under the
            national flood insurance program that covers loss or damage to
            property resulting from water peril.
                ``(10) Property.--The term `property' means real or personal
            property that is insured under a standard insurance policy for
            loss or damage to structure or contents.
                ``(11) Under secretary.--The term `Under Secretary' means
            the Under Secretary of Commerce for Oceans and Atmosphere, in
            the Under Secretary's capacity as Administrator of the National
            Oceanic and Atmospheric Administration.

        ``(b) Establishment of Flood Loss Allocation Formula for
    Indeterminate Claims.--
                ``(1) <<NOTE: Deadline. Regulations.>>  In general.--Not
            later than 180 days after the date on which the protocol is
            established under section 12312(c)(1) of the Omnibus Public Land
            Management Act of 2009, the Secretary, acting through the
            Administrator and in consultation with the Under Secretary,
            shall establish by rule a standard formula to determine and
            allocate wind losses and flood losses for claims involving
            indeterminate losses.
                ``(2) Contents.--The standard formula established under
            paragraph (1) shall--
                        ``(A) incorporate data available from the Coastal
                    Wind and Water Event Database established under section
                    12312(f) of the Omnibus Public Land Management Act of
                    2009;
                        ``(B) use relevant data provided on the National
                    Flood Insurance Program Elevation Certificate for each
                    indeterminate loss for which the formula is used;
                        ``(C) consider any sufficient and credible evidence,
                    approved by the Administrator, of the pre-event
                    condition of a specific property, including the findings
                    of any policyholder or insurance claims adjuster in
                    connection with the indeterminate loss to that specific
                    property;

    [[Page 126 STAT. 976]]

                        ``(D) include other measures, as the Administrator
                    considers appropriate, required to determine and
                    allocate by mathematical formula the property damage
                    caused by flood or storm surge associated with a named
                    storm; and
                        ``(E) subject to paragraph (3), for each
                    indeterminate loss, use the post-storm assessment to
                    allocate water damage (flood or storm surge) associated
                    with a named storm.
                ``(3) <<NOTE: Certification.>>  Degree of accuracy
            required.--The standard formula established under paragraph (1)
            shall specify that the Administrator may only use the post-storm
            assessment for purposes of the formula if the Under Secretary
            certifies that the post-storm assessment has a degree of
            accuracy of not less than 90 percent in connection with the
            specific indeterminate loss for which the assessment and formula
            are used.

        ``(c) Authorized Use of Post-storm Assessment and COASTAL Formula.--
                ``(1) In general.--Subject to paragraph (3), the
            Administrator may use the post-storm assessment and the COASTAL
            Formula to--
                        ``(A) review flood loss payments for indeterminate
                    losses, including as part of the quality assurance
                    reinspection program of the Federal Emergency Management
                    Agency for claims under the national flood insurance
                    program and any other process approved by the
                    Administrator to review and validate payments under the
                    national flood insurance program for indeterminate
                    losses following a named storm; and
                        ``(B) assist the national flood insurance program
                    to--
                              ``(i) properly cover qualified flood loss for
                          claims for indeterminate losses; and
                              ``(ii) avoid paying for any loss or damage to
                          property caused by any peril (including wind),
                          other than flood or storm surge, that is not
                          covered under a standard policy under the national
                          flood insurance program.
                ``(2) Federal disaster declaration.--Subject to paragraph
            (3), in order to expedite claims and reduce costs to the
            national flood insurance program, following any major disaster
            declared by the President under section 401 of the Robert T.
            Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
            5170) relating to a named storm in a coastal State, the
            Administrator may use the COASTAL Formula to determine and pay
            for any flood loss covered under a standard insurance policy
            under the national flood insurance program, if the loss is an
            indeterminate loss.
                ``(3) National academy of sciences evaluation.--
                        ``(A) Evaluation required.--
                              ``(i) Evaluation.--Upon the issuance of the
                          rule establishing the COASTAL Formula, and each
                          time the Administrator modifies the COASTAL
                          Formula, the National Academy of Sciences shall--
                                        ``(I) evaluate the expected
                                    financial impact on the national flood
                                    insurance program of the use of the
                                    COASTAL Formula as so established or
                                    modified; and
                                        ``(II) evaluate the validity of the
                                    scientific assumptions upon which the
                                    formula is based and

    [[Page 126 STAT. 977]]

                                    determine whether the COASTAL formula
                                    can achieve a degree of accuracy of not
                                    less than 90 percent in allocating flood
                                    losses for indeterminate losses.
                              ``(ii) Report.--The National Academy of
                          Sciences shall submit a report containing the
                          results of each evaluation under clause (i) to the
                          Administrator, the Committee on Banking, Housing,
                          and Urban Affairs and the Committee on Commerce,
                          Science, and Transportation of the Senate, and the
                          Committee on Financial Services and the Committee
                          on Science, Space, and Technology of the House of
                          Representatives.
                        ``(B) Effective date and applicability.--
                              ``(i) Effective date.--Paragraphs (1) and (2)
                          of this subsection shall not take effect unless
                          the report under subparagraph (A) relating to the
                          establishment of the COASTAL Formula concludes
                          that the use of the COASTAL Formula for purposes
                          of paragraph (1) and (2) would not have an adverse
                          financial impact on the national flood insurance
                          program and that the COASTAL Formula is based on
                          valid scientific assumptions that would allow a
                          degree of accuracy of not less than 90 percent to
                          be achieved in allocating flood losses for
                          indeterminate losses.
                              ``(ii) Effect of modifications.--Unless the
                          report under subparagraph (A) relating to a
                          modification of the COASTAL Formula concludes that
                          the use of the COASTAL Formula, as so modified,
                          for purposes of paragraphs (1) and (2) would not
                          have an adverse financial impact on the national
                          flood insurance program and that the COASTAL
                          Formula is based on valid scientific assumptions
                          that would allow a degree of accuracy of not less
                          than 90 percent to be achieved in allocating flood
                          losses for indeterminate losses the Administrator
                          may not use the COASTAL Formula, as so modified,
                          for purposes of paragraphs (1) and (2).
                        ``(C) Funding.--Notwithstanding section 1310 of the
                    National Flood Insurance Act of 1968 (42 U.S.C. 4017),
                    there shall be available to the Administrator from the
                    National Flood Insurance Fund, of amounts not otherwise
                    obligated, not more than $750,000 to carry out this
                    paragraph.

        ``(d) <<NOTE: Deadline.>>  Disclosure of COASTAL Formula.--Not later
    than 30 days after the date on which a post-storm assessment is
    submitted to the Secretary under section 12312(b)(2)(C) of the Omnibus
    Public Land Management Act of 2009, for each indeterminate loss for
    which the COASTAL Formula is used pursuant to subsection (c)(2), the
    Administrator shall disclose to the policyholder that makes a claim
    relating to the indeterminate loss--
                ``(1) that the Administrator used the COASTAL Formula with
            respect to the indeterminate loss; and
                ``(2) a summary of the results of the use of the COASTAL
            Formula.

        ``(e) Consultation.--In carrying out subsections (b) and (c), the
    Secretary shall consult with--
                ``(1) the Under Secretary for Oceans and Atmosphere;

    [[Page 126 STAT. 978]]

                ``(2) the Director of the National Institute of Standards
            and Technology;
                ``(3) the Chief of Engineers of the Corps of Engineers;
                ``(4) the Director of the United States Geological Survey;
                ``(5) the Office of the Federal Coordinator for Meteorology;
                ``(6) State insurance regulators of coastal States; and
                ``(7) such public, private, and academic sector entities as
            the Secretary considers appropriate for purposes of carrying out
            such subsections.

        ``(f) Recordkeeping.--Each consideration and measure the
    Administrator determines necessary to carry out subsection (b) may be
    required, with advanced approval of the Administrator, to be provided
    for on the National Flood Insurance Program Elevation Certificate, or
    maintained otherwise on record if approved by the Administrator, for any
    property that qualifies for the COASTAL Formula under subsection (c).
        ``(g) Civil Penalty.--
                ``(1) In general.--If an insurance claims adjuster knowingly
            and willfully makes a false or inaccurate determination relating
            to an indeterminate loss, the Administrator may, after notice
            and opportunity for hearing, impose on the insurance claims
            adjuster a civil penalty of not more than $1,000.
                ``(2) Deposit.--Notwithstanding section 3302 of title 31,
            United States Code, or any other law relating to the crediting
            of money, the Administrator shall deposit in the National Flood
            Insurance Fund any amounts received under this subsection, which
            shall remain available until expended and be available to the
            Administrator for purposes authorized for the National Flood
            Insurance Fund without further appropriation.

        ``(h) Rule of Construction.--Nothing in this subsection shall be
    construed to require the Administrator to make any payment under the
    national flood insurance program, or an insurance company to make any
    payment, for an indeterminate loss based upon post-storm assessment or
    the COASTAL Formula.
        ``(i) Applicability.--Subsection (c) shall apply with respect to an
    indeterminate loss associated with a named storm that occurs after the
    date on which the Administrator issues the rule establishing the COASTAL
    Formula under subsection (b).
        ``(j) Rule of Construction.--Nothing in this subsection shall be
    construed to negate, set aside, or void any policy limit, including any
    loss limitation, set forth in a standard insurance policy.''.

                        Subtitle C--HEARTH Act Amendment

    SEC. 100261. <<NOTE: 42 USC 11360 note.>> HEARTH ACT TECHNICAL
                                  CORRECTIONS.

        For purposes of title IV of the McKinney-Vento Homeless Assistance
    Act (42 U.S.C. 11360 et seq.)--
                (1) <<NOTE: Definition.>>  the term ``local government''
            includes an instrumentality of a unit of general purpose local
            government other than a public housing agency that is
            established pursuant to legislation and designated by the chief
            executive to act on behalf of the local government with regard
            to activities funded under such title IV and includes a
            combination of general purpose local governments, such as an
            association of governments, that is recognized by the Secretary
            of Housing and Urban Development;

    [[Page 126 STAT. 979]]

                (2) <<NOTE: Definition.>>  the term ``State'' includes any
            instrumentality of any of the several States designated by the
            Governor to act on behalf of the State and does not include the
            District of Columbia;
                (3) for purposes of environmental review, the Secretary of
            Housing and Urban Development shall continue to permit
            assistance and projects to be treated as assistance for special
            projects that are subject to section 305(c) of the Multifamily
            Housing Property Disposition Reform Act of 1994 (42 U.S.C.
            3547), and subject to the regulations issued by the Secretary of
            Housing and Urban Development to implement such section; and
                (4) a metropolitan city and an urban county that each
            receive an allocation under such title IV and are located within
            a geographic area that is covered by a single continuum of care
            may jointly request the Secretary of Housing and Urban
            Development to permit the urban county or the metropolitan city,
            as agreed to by such county and city, to receive and administer
            their combined allocations under a single grant.

                 TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

    SEC. 100301. FEDERAL DIRECT STAFFORD LOAN INTEREST RATE EXTENSION.

        Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 U.S.C.
    1087e(b)(7)(D)) is amended--
                (1) in the matter preceding clause (i), by striking ``and
            before July 1, 2012,'' and inserting ``and before July 1,
            2013,''; and
                (2) in clause (v), by striking ``and before July 1, 2012,''
            and inserting ``and before July 1, 2013,''.
    SEC. 100302. ELIGIBILITY FOR, AND INTEREST CHARGES ON, FEDERAL
                                  DIRECT STAFFORD LOANS FOR NEW
                                  BORROWERS ON OR AFTER JULY 1, 2013.

        (a) In General.--Section 455 of the Higher Education Act of 1965 (20
    U.S.C. 1087e) is amended by adding at the end the following:
        ``(q) Eligibility for, and Interest Charges on, Federal Direct
    Stafford Loans for New Borrowers on or After July 1, 2013.--
                ``(1) In general.--Notwithstanding subsection (a) or any
            other provision of this title, any borrower who was a new
            borrower on or after July 1, 2013, shall not be eligible for a
            Federal Direct Stafford Loan if the period of time for which the
            borrower has received Federal Direct Stafford Loans, in the
            aggregate, exceeds the period of enrollment described in
            paragraph (3). Such borrower may still receive any Federal
            Direct Unsubsidized Stafford Loan for which such borrower is
            otherwise eligible.
                ``(2) Accrual of interest on federal direct stafford
            loans.--Notwithstanding subsection (f)(1)(A) or any other
            provision of this title and beginning on the date upon which a
            borrower who is enrolled in a program of education or training
            (including a course of study or program described in paragraph

    [[Page 126 STAT. 980]]

            (3)(B) or (4)(B) of section 484(b)) for which borrowers are
            otherwise eligible to receive Federal Direct Stafford Loans,
            becomes ineligible for such loan as a result of paragraph (1),
            interest on all Federal Direct Stafford Loans that were
            disbursed to such borrower on or after July 1, 2013, shall
            accrue. Such interest shall be paid or capitalized in the same
            manner as interest on a Federal Direct Unsubsidized Stafford
            Loan is paid or capitalized under section 428H(e)(2).
                ``(3) Period of enrollment.--
                        ``(A) In general.--The aggregate period of
                    enrollment referred to in paragraph (1) shall not exceed
                    the lesser of--
                              ``(i) a period equal to 150 percent of the
                          published length of the educational program in
                          which the student is enrolled; or
                              ``(ii) in the case of a borrower who was
                          previously enrolled in one or more other
                          educational programs that began on or after July
                          1, 2013, and subject to subparagraph (B), a period
                          of time equal to the difference between--
                                        ``(I) 150 percent of the published
                                    length of the longest educational
                                    program in which the borrower was, or
                                    is, enrolled; and
                                        ``(II) any periods of enrollment in
                                    which the borrower received a Federal
                                    Direct Stafford Loan.
                        ``(B) Regulations.--The Secretary shall specify in
                    regulation--
                              ``(i) how the aggregate period described in
                          subparagraph (A) shall be calculated with respect
                          to a borrower who was or is enrolled on less than
                          a full-time basis; and
                              ``(ii) how such aggregate period shall be
                          calculated to include a course of study or program
                          described in paragraph (3)(B) or (4)(B) of section
                          484(b), respectively.''.

        (b) <<NOTE: 20 USC 1089 note.>>  Inapplicability of Title IV
    Negotiated Rulemaking Requirement and Master Calendar Exception.--
    Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C.
    1089(c), 1098a) shall not apply to the amendment made by subsection (a),
    or to any regulations promulgated under such amendment.

      DIVISION <<NOTE: Surface Transportation Extension Act of 2012, Part
    II.>> G--SURFACE TRANSPORTATION EXTENSION
    SEC. 110001. <<NOTE: 23 USC 101 note.>> SHORT TITLE.

        This division may be cited as the ``Surface Transportation Extension
    Act of 2012, Part II''.

                          TITLE I--FEDERAL-AID HIGHWAYS

    SEC. 111001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.

        (a) In General.--Section 111 of the Surface Transportation Extension
    Act of 2011, Part II (Public Law 112-30; 125 Stat. 343; 126 Stat. 272)
    is amended--

    [[Page 126 STAT. 981]]

                (1) by striking ``the period beginning on October 1, 2011,
            and ending on June 30, 2012,'' each place it appears and
            inserting ``fiscal year 2012'';
                (2) by striking ``\3/4\ of'' each place it appears; and
                (3) in subsection (a) by striking ``June 30, 2012'' and
            inserting ``September 30, 2012''.

        (b) Use of Funds.--Section 111(c) of the Surface Transportation
    Extension Act of 2011, Part II (125 Stat. 343; 126 Stat. 272) is
    amended--
                (1) in paragraph (3)--
                        (A) in subparagraph (A) by striking ``, except that
                    during such period'' and all that follows before the
                    period at the end; and
                        (B) in subparagraph (B)(ii) by striking
                    ``$479,250,000'' and inserting ``$639,000,000''; and
                (2) by striking paragraph (4).

        (c) Extension of Authorizations Under Title V of SAFETEA-LU.--
    Section 111(e)(2) of the Surface Transportation Extension Act of 2011,
    Part II (125 Stat. 346; 126 Stat. 272) is amended by striking ``the
    period beginning on October 1, 2011, and ending on June 30, 2012.'' and
    inserting ``fiscal year 2012.''.
        (d) Administrative Expenses.--Section 112(a) of the Surface
    Transportation Extension Act of 2011, Part II (125 Stat. 346; 126 Stat.
    272) is amended by striking ``$294,641,438 for the period beginning on
    October 1, 2011, and ending on June 30, 2012.'' and inserting
    ``$392,855,250 for fiscal year 2012.''.

                 TITLE II--EXTENSION OF HIGHWAY SAFETY PROGRAMS

    SEC. 112001. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY
                                  ADMINISTRATION HIGHWAY SAFETY
                                  PROGRAMS.

        (a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) of
    SAFETEA-LU (119 Stat. 1519) is amended by striking ``$235,000,000 for
    each of fiscal years 2009 through 2011'' and all that follows through
    the period at the end and inserting ``and $235,000,000 for each of
    fiscal years 2009 through 2012.''.
        (b) Highway Safety Research and Development.--Section 2001(a)(2) of
    SAFETEA-LU (119 Stat. 1519) is amended by striking ``and $81,183,000 for
    the period beginning on October 1, 2011, and ending on June 30, 2012.''
    and inserting ``and $108,244,000 for fiscal year 2012.''.
        (c) Occupant Protection Incentive Grants.--Section 2001(a)(3) of
    SAFETEA-LU (119 Stat. 1519) is amended by striking ``$25,000,000 for
    each of fiscal years 2006 through 2011'' and all that follows through
    the period at the end and inserting ``and $25,000,000 for each of fiscal
    years 2006 through 2012.''.
        (d) Safety Belt Performance Grants.--Section 2001(a)(4) of SAFETEA-
    LU (119 Stat. 1519) is amended by striking ``and $36,375,000 for the
    period beginning on October 1, 2011, and ending on June 30, 2012.'' and
    inserting ``and $48,500,000 for fiscal year 2012.''.
        (e) State Traffic Safety Information System Improvements.--Section
    2001(a)(5) of SAFETEA-LU (119 Stat. 1519) is amended by striking ``for
    each of fiscal years 2006 through 2011''

    [[Page 126 STAT. 982]]

    and all that follows through the period at the end and inserting ``for
    each of fiscal years 2006 through 2012.''.
        (f) Alcohol-impaired Driving Countermeasures Incentive Grant
    Program.--Section 2001(a)(6) of SAFETEA-LU (119 Stat. 1519) is amended
    by striking ``$139,000,000 for each of fiscal years fiscal years 2009
    through 2011'' and all that follows through the period at the end and
    inserting ``and $139,000,000 for each of fiscal years 2009 through
    2012.''.
        (g) National Driver Register.--Section 2001(a)(7) of SAFETEA-LU (119
    Stat. 1520) is amended by striking ``and $3,087,000 for the period
    beginning on October 1, 2011, and ending on June 30, 2012.'' and
    inserting ``and $4,116,000 for fiscal year 2012.''.
        (h) High Visibility Enforcement Program.--Section 2001(a)(8) of
    SAFETEA-LU (119 Stat. 1520) is amended by striking ``for each of fiscal
    years 2006 through 2011'' and all that follows through the period at the
    end and inserting ``for each of fiscal years 2006 through 2012.''.
        (i) Motorcyclist Safety.--Section 2001(a)(9) of SAFETEA-LU (119
    Stat. 1520) is amended by striking ``$7,000,000 for each of fiscal years
    2009 through 2011'' and all that follows through the period at the end
    and inserting ``and $7,000,000 for each of fiscal years 2009 through
    2012.''.
        (j) Child Safety and Child Booster Seat Safety Incentive Grants.--
    Section 2001(a)(10) of SAFETEA-LU (119 Stat. 1520) is amended by
    striking ``$7,000,000 for each of fiscal years 2009 through 2011'' and
    all that follows through the period at the end and inserting ``and
    $7,000,000 for each of fiscal years 2009 through 2012.''.
        (k) Administrative Expenses.--Section 2001(a)(11) of SAFETEA-LU (119
    Stat. 1520) is amended by striking ``$25,328,000 for fiscal year 2011''
    and all that follows through the period at the end and inserting ``and
    $25,328,000 for each of fiscal years 2011 and 2012.''.
    SEC. 112002. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY
                                  ADMINISTRATION PROGRAMS.

        (a) Federal Motor Carrier Safety Administration Grants.--Section
    31104(a)(8) of title 49, United States Code, is amended to read as
    follows:
                ``(8) $212,000,000 for fiscal year 2012.''.

        (b) Administrative Expenses.--
                (1) In general.--Section 31104(i)(1)(H) of title 49, United
            States Code, is amended to read as follows:
                        ``(H) $244,144,000 for fiscal year 2012.''.
                (2) Technical correction.--Section 31104(i)(1)(F) of title
            49, United States Code, is amended to read as follows:
                        ``(F) $239,828,000 for fiscal year 2010;''.

        (c) Grant Programs.--Section 4101(c) of SAFETEA-LU (119 Stat. 1715)
    is amended--
                (1) in paragraph (1) by striking ``and $22,500,000 for the
            period beginning on October 1, 2011, and ending on June 30,
            2012.'' and inserting ``and $30,000,000 for fiscal year 2012.'';
                (2) in paragraph (2) by striking ``2011 and $24,000,000 for
            the period beginning on October 1, 2011, and ending on June 30,
            2012.'' and inserting ``2012.'';

    [[Page 126 STAT. 983]]

                (3) in paragraph (3) by striking ``2011 and $3,750,000 for
            the period beginning on October 1, 2011, and ending on June 30,
            2012.'' and inserting ``2012.'';
                (4) in paragraph (4) by striking ``2011 and $18,750,000 for
            the period beginning on October 1, 2011, and ending on June 30,
            2012.'' and inserting ``2012.''; and
                (5) in paragraph (5) by striking ``2011 and $2,250,000 for
            the period beginning on October 1, 2011, and ending on June 30,
            2012.'' and inserting ``2012.''.

        (d) New Entrant Audits.--Section 31144(g)(5)(B) of title 49, United
    States Code, is amended by striking ``and up to $21,750,000 for the
    period beginning on October 1, 2011, and ending on June 30, 2012,''.
        (e) Outreach and Education.--Section 4127(e) of SAFETEA-LU (119
    Stat. 1741) <<NOTE: 49 USC 31100 note.>> is amended by striking ``and
    2011 (and $750,000 to the Federal Motor Carrier Safety Administration,
    and $2,250,000 to the National Highway Traffic Safety Administration,
    for the period beginning on October 1, 2011, and ending on June 30,
    2012)'' and inserting ``2011, and 2012''.

        (f) Working Group for Development of Practices and Procedures to
    Enhance Federal-State Relations.--Section 4213(d) of SAFETEA-LU (49
    U.S.C. 14710 note; 119 Stat. 1759) is amended by striking ``June 30,
    2012'' and inserting ``September 30, 2012''.
    SEC. 112003. ADDITIONAL PROGRAMS.

        Section 7131(c) of SAFETEA-LU (119 Stat. 1910) is amended by
    striking ``and $870,000 for the period beginning on October 1, 2011, and
    ending on June 30, 2012,'' and inserting ``and $1,160,000 for fiscal
    year 2012''.

                    TITLE III--PUBLIC TRANSPORTATION PROGRAMS

    SEC. 113001. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.

        Section 5305(g) of title 49, United States Code, is amended by
    striking ``2011 and for the period beginning on October 1, 2011, and
    ending on June 30, 2012'' and inserting ``2012''.
    SEC. 113002. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.

        Section 5307(b)(2) of title 49, United States Code, is amended--
                (1) by striking the paragraph heading and inserting
            ``special rule for fiscal years 2005 through 2012.--'' ;
                (2) in subparagraph (A) by striking ``2011 and the period
            beginning on October 1, 2011, and ending on June 30, 2012,'' and
            inserting ``2012,''; and
                (3) in subparagraph (E)--
                        (A) by striking the subparagraph heading and
                    inserting ``maximum amounts in fiscal years 2008 through
                    2012 .--''; and
                        (B) in the matter preceding clause (i) by striking
                    ``2011 and during the period beginning on October 1,
                    2011, and ending on June 30, 2012'' and inserting
                    ``2012''.

    [[Page 126 STAT. 984]]

    SEC. 113003. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.

        Section 5309(m) of title 49, United States Code, is amended--
                (1) in paragraph (2)--
                        (A) by striking the paragraph heading and inserting
                    ``fiscal years 2006 through 2012.--'';
                        (B) in the matter preceding subparagraph (A) by
                    striking ``2011 and the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting
                    ``2012''; and
                        (C) in subparagraph (A)(i) by striking ``2011 and
                    $150,000,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting
                    ``2012'';
                (2) in paragraph (6)--
                        (A) in subparagraph (B) by striking ``2011 and
                    $11,250,000 shall be available for the period beginning
                    on October 1, 2011, and ending on June 30, 2012,'' and
                    inserting ``2012''; and
                        (B) in subparagraph (C) by striking ``though 2011
                    and $3,750,000 shall be available for the period
                    beginning on October 1, 2011, and ending on June 30,
                    2012,'' and inserting ``through 2012''; and
                (3) in paragraph (7)--
                        (A) in subparagraph (A)--
                              (i) in the matter preceding clause (i)--
                                        (I) in the first sentence by
                                    striking ``2011 and $7,500,000 shall be
                                    available for the period beginning on
                                    October 1, 2011, and ending on June 30,
                                    2012,'' and inserting ``2012''; and
                                        (II) in the second sentence by
                                    inserting ``each fiscal year'' before
                                    the colon;
                              (ii) in clause (i) by striking ``for each
                          fiscal year and $1,875,000 for the period
                          beginning on October 1, 2011, and ending on June
                          30, 2012,'';
                              (iii) in clause (ii) by striking ``for each
                          fiscal year and $1,875,000 for the period
                          beginning on October 1, 2011, and ending on June
                          30, 2012,'';
                              (iv) in clause (iii) by striking ``for each
                          fiscal year and $750,000 for the period beginning
                          on October 1, 2011, and ending on June 30,
                          2012,'';
                              (v) in clause (iv) by striking ``for each
                          fiscal year and $750,000 for the period beginning
                          on October 1, 2011, and ending on June 30,
                          2012,'';
                              (vi) in clause (v) by striking ``for each
                          fiscal year and $750,000 for the period beginning
                          on October 1, 2011, and ending on June 30,
                          2012,'';
                              (vii) in clause (vi) by striking ``for each
                          fiscal year and $750,000 for the period beginning
                          on October 1, 2011, and ending on June 30,
                          2012,'';
                              (viii) in clause (vii) by striking ``for each
                          fiscal year and $487,500 for the period beginning
                          on October 1, 2011, and ending on June 30,
                          2012,''; and
                              (ix) in clause (viii) by striking ``for each
                          fiscal year and $262,500 for the period beginning
                          on October 1, 2011, and ending on June 30,
                          2012,'';
                        (B) in subparagraph (B) by striking clause (vii) and
                    inserting the following:

    [[Page 126 STAT. 985]]

                              ``(vii) $13,500,000 for fiscal year 2012.'';
                        (C) in subparagraph (C) by striking ``and during the
                    period beginning on October 1, 2011, and ending on June
                    30, 2012,'';
                        (D) in subparagraph (D) by striking ``and not less
                    than $26,250,000 shall be available for the period
                    beginning on October 1, 2011, and ending on June 30,
                    2012,''; and
                        (E) in subparagraph (E) by striking ``and $2,250,000
                    shall be available for the period beginning on October
                    1, 2011, and ending on June 30, 2012,''.
    SEC. 113004. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN
                                  URBANIZED AREAS.

        Section 5311(c)(1)(G) of title 49, United States Code, is amended to
    read as follows:
                        ``(G) $15,000,000 for fiscal year 2012.''.
    SEC. 113005. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.

        Section 5337 of title 49, United States Code, is amended by striking
    subsection (g).
    SEC. 113006. <<NOTE: Time periods.>> AUTHORIZATIONS FOR PUBLIC
                                  TRANSPORTATION.

        (a) Formula and Bus Grants.--Section 5338(b) of title 49, United
    States Code, is amended--
                (1) in paragraph (1) by striking subparagraph (G) and
            inserting the following:
                        ``(G) $8,360,565,000 for fiscal year 2012.''; and
                (2) in paragraph (2)--
                        (A) in subparagraph (A) by striking ``$113,500,000
                    for each of fiscal years 2009 through 2011, and
                    $85,125,000 for the period beginning on October 1, 2011,
                    and ending on June 30, 2012,'' and inserting ``and
                    $113,500,000 for each of fiscal years 2009 through
                    2012'';
                        (B) in subparagraph (B) by striking ``$4,160,365,000
                    for each of fiscal years 2009 through 2011, and
                    $3,120,273,750 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $4,160,365,000 for each of fiscal years 2009 through
                    2012'';
                        (C) in subparagraph (C) by striking ``$51,500,000
                    for each of fiscal years 2009 through 2011, and
                    $38,625,000 for the period beginning on October 1, 2011,
                    and ending on June 30, 2012,'' and inserting ``and
                    $51,500,000 for each of fiscal years 2009 through
                    2012'';
                        (D) in subparagraph (D) by striking ``$1,666,500,000
                    for each of fiscal years 2009 through 2011, and
                    $1,249,875,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $1,666,500,000 for each of fiscal years 2009 through
                    2012'';
                        (E) in subparagraph (E) by striking ``$984,000,000
                    for each of fiscal years 2009 through 2011, and
                    $738,000,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $984,000,000 for each of fiscal years 2009 through
                    2012'';
                        (F) in subparagraph (F) by striking ``$133,500,000
                    for each of fiscal years 2009 through 2011, and
                    $100,125,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $133,500,000 for each of fiscal years 2009 through
                    2012'';

    [[Page 126 STAT. 986]]

                        (G) in subparagraph (G) by striking ``$465,000,000
                    for each of fiscal years 2009 through 2011, and
                    $348,750,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $465,000,000 for each of fiscal years 2009 through
                    2012'';
                        (H) in subparagraph (H) by striking ``$164,500,000
                    for each of fiscal years 2009 through 2011, and
                    $123,375,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $164,500,000 for each of fiscal years 2009 through
                    2012'';
                        (I) in subparagraph (I) by striking ``$92,500,000
                    for each of fiscal years 2009 through 2011, and
                    $69,375,000 for the period beginning on October 1, 2011,
                    and ending on June 30, 2012,'' and inserting ``and
                    $92,500,000 for each of fiscal years 2009 through
                    2012'';
                        (J) in subparagraph (J) by striking ``$26,900,000
                    for each of fiscal years 2009 through 2011, and
                    $20,175,000 for the period beginning on October 1, 2011,
                    and ending on June 30, 2012,'' and inserting ``and
                    $26,900,000 for each of fiscal years 2009 through
                    2012'';
                        (K) in subparagraph (K) by striking ``for each of
                    fiscal years 2006 through 2011 and $2,625,000 for the
                    period beginning on October 1, 2011, and ending on June
                    30, 2012,'' and inserting ``for each of fiscal years
                    2006 through 2012'';
                        (L) in subparagraph (L) by striking ``for each of
                    fiscal years 2006 through 2011 and $18,750,000 for the
                    period beginning on October 1, 2011, and ending on June
                    30, 2012,'' and inserting ``for each of fiscal years
                    2006 through 2012'';
                        (M) in subparagraph (M) by striking ``$465,000,000
                    for each of fiscal years 2009 through 2011, and
                    $348,750,000 for the period beginning on October 1,
                    2011, and ending on June 30, 2012,'' and inserting ``and
                    $465,000,000 for each of fiscal years 2009 through
                    2012''; and
                        (N) in subparagraph (N) by striking ``$8,800,000 for
                    each of fiscal years 2009 through 2011, and $6,600,000
                    for the period beginning on October 1, 2011, and ending
                    on June 30, 2012,'' and inserting ``and $8,800,000 for
                    each of fiscal years 2009 through 2012''.

        (b) Capital Investment Grants.--Section 5338(c)(7) of title 49,
    United States Code, is amended to read as follows:
                ``(7) $1,955,000,000 for fiscal year 2012.''.

        (c) Research and University Research Centers.--Section 5338(d) of
    title 49, United States Code, is amended--
                (1) in paragraph (1), in the matter preceding subparagraph
            (A), by striking ``through 2011, and $33,000,000 for the period
            beginning on October 1, 2011, and ending on June 30, 2012,'' and
            inserting ``through 2011, and $44,000,000 for fiscal year
            2012,''; and
                (2) by striking paragraph (3) and inserting the following:
                ``(3) Additional authorizations.--
                        ``(A) Research.--Of amounts authorized to be
                    appropriated under paragraph (1) for fiscal year 2012,
                    the Secretary shall allocate for each of the activities
                    and projects described in subparagraphs (A) through (F)
                    of paragraph

    [[Page 126 STAT. 987]]

                    (1) an amount equal to 63 percent of the amount
                    allocated for fiscal year 2009 under each such
                    subparagraph.
                        ``(B) University centers program.--
                              ``(i) Fiscal year 2012.--Of the amounts
                          allocated under paragraph (1)(C) for the
                          university centers program under section 5506 for
                          fiscal year 2012, the Secretary shall allocate for
                          each program described in clauses (i) through
                          (iii) and (v) through (viii) of paragraph (2)(A)
                          an amount equal to 63 percent of the amount
                          allocated for fiscal year 2009 under each such
                          clause.
                              ``(ii) Funding.--If the Secretary determines
                          that a project or activity described in paragraph
                          (2) received sufficient funds in fiscal year 2011,
                          or a previous fiscal year, to carry out the
                          purpose for which the project or activity was
                          authorized, the Secretary may not allocate any
                          amounts under clause (i) for the project or
                          activity for fiscal year 2012 or any subsequent
                          fiscal year.''.

        (d) Administration.--Section 5338(e)(7) of title 49, United States
    Code, is amended to read as follows:
                ``(7) $98,713,000 for fiscal year 2012.''.
    SEC. 113007. AMENDMENTS TO SAFETEA-LU.

        (a) Contracted Paratransit Pilot.--Section 3009(i)(1) of SAFETEA-LU
    (119 Stat. 1572) is amended by striking ``2011 and the period beginning
    on October 1, 2011, and ending on June 30, 2012,'' and inserting
    ``2012,''.
        (b) Public-private Partnership Pilot Program.--Section 3011 of
    SAFETEA-LU (49 U.S.C. 5309 note; 119 Stat. 1588) is amended--
                (1) in subsection (c)(5) by striking ``2011 and the period
            beginning on October 1, 2011, and ending on June 30, 2012'' and
            inserting ``2012''; and
                (2) in the second sentence of subsection (d) by striking
            ``2011 and the period beginning on October 1, 2011, and ending
            on June 30, 2012,'' and inserting ``2012''.

        (c) Elderly Individuals and Individuals With Disabilities Pilot
    Program.--Section 3012(b)(8) of SAFETEA-LU (49 U.S.C. 5310 note; 119
    Stat. 1593) is amended by striking ``June 30, 2012'' and inserting
    ``September 30, 2012''.
        (d) Obligation Ceiling.--Section 3040(8) of SAFETEA-LU (119 Stat.
    1639) is amended to read as follows:
                ``(8) $10,458,278,000 for fiscal year 2012, of which not
            more than $8,360,565,000 shall be from the Mass Transit
            Account.''.

        (e) Project Authorizations for New Fixed Guideway Capital
    Projects.--Section 3043 of SAFETEA-LU (119 Stat. 1640) is amended--
                (1) in subsection (b), in the matter preceding paragraph
            (1), by striking ``2011 and the period beginning on October 1,
            2011, and ending on June 30, 2012,'' and inserting ``2012''; and
                (2) in subsection (c), in the matter preceding paragraph
            (1), by striking ``2011 and the period beginning on October 1,
            2011, and ending on June 30, 2012,'' and inserting ``2012''.

    [[Page 126 STAT. 988]]

        (f) Allocations for National Research and Technology Programs.--
    Section 3046 of SAFETEA-LU (49 U.S.C. 5338 note; 119 Stat. 1706) is
    amended--
                (1) in subsection (b) by striking ``fiscal year or period''
            and inserting ``fiscal year''; and
                (2) by striking subsection (c)(2) and inserting the
            following:
                ``(2) for fiscal year 2012, in amounts equal to 63 percent
            of the amounts allocated for fiscal year 2009 under each of
            paragraphs (2), (3), (5), and (8) through (25) of subsection
            (a).''.

                            TITLE IV--EFFECTIVE DATE

    SEC. 114001. <<NOTE: 49 USC 5305 note.>> EFFECTIVE DATE.

        This division and the amendments made by this division shall take
    effect on July 1, 2012.

                          DIVISION H--BUDGETARY EFFECTS

    SEC. 120001. BUDGETARY EFFECTS.

        (a) PAYGO Scorecard.--The budgetary effects of this Act shall not be
    entered on either PAYGO scorecard maintained pursuant to section 4(d) of
    the Statutory Pay-As-You-Go Act of 2010.
        (b) Senate PAYGO Scorecard.--The budgetary effects of this Act shall
    not be recorded on any PAYGO scorecard maintained for purposes of
    section 201 of S. Con. Res. 21 (110th Congress).

        Approved July 6, 2012.

    LEGISLATIVE HISTORY--H.R. 4348 (S. 1813):
    ---------------------------------------------------------------------------

    HOUSE REPORTS: No. 112-557 (Comm. of Conference).
    CONGRESSIONAL RECORD, Vol. 158 (2012):
                Apr. 18, considered and passed House.
                Apr. 24, considered and passed Senate, amended, in lieu of
                    S. 1813.
                June 29, House and Senate agreed to conference report.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012):
                July 6, Presidential remarks.

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