[United States Statutes at Large, Volume 126, 112th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


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. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
SECTION 1. SHORT TITLE; ORGANIZATION OF ACT INTO DIVISIONS; TABLE
OF CONTENTS.

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

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

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

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

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

TITLE I--FEDERAL-AID HIGHWAYS

Subtitle A--Authorizations and Programs

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

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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.

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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.

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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.

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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.

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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.

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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.

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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 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. <> DEFINITIONS.

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

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

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

[[Page 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) <> Disadvantaged Business Enterprises.--
(1) Findings.--Congress finds that--
(A) while significant progress has occurred due to
the establishment of the disadvantaged business
enterprise

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

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

[[Page 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) <> shall determine the proportion
that--

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

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

[[Page 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) <> remain available for a
period of 4 fiscal years; and
(B) be in addition to the amount of any limitation
imposed on obligations for Federal-aid highway and
highway safety construction programs for future fiscal
years.

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

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

[[Page 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 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 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 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 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 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 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) <> 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 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 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 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 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) <> Reimbursement.--Not later
than 15 business days after the date of receipt by a
State of a request for reimbursement of expenditures
made by a metropolitan planning organization for
carrying out section 134, the State shall reimburse,
from amounts distributed under this paragraph to the
metropolitan planning organization by the State, the
metropolitan planning organization for those
expenditures.
``(3) Determination of population figures.--For the purpose
of determining population figures under this subsection, the
Secretary shall use the latest available data from the decennial
census conducted under section 141(a) of title 13, United States
Code.

``(e) <> Certification of Apportionments.--
``(1) In general.--The Secretary shall--
``(A) on October 1 of each fiscal year, certify to
each of the State transportation departments the amount
that has been apportioned to the State under this
section for the fiscal year; and
``(B) to permit the States to develop adequate plans
for the use of amounts apportioned under this section,
advise each State of the amount that will be apportioned
to the State under this section for a fiscal year not
later than 90 days before the beginning of the fiscal
year for which the sums to be apportioned are
authorized.
``(2) Notice to states.--If the Secretary has not made an
apportionment under this section 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 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) <> Non-federal share.--
The provisions of this title relating to the non-Federal
share shall apply to the amounts transferred under
subparagraph (A).
``(2) Transfer of transit funds for highway projects.--
``(A) In general.--Subject to subparagraph (B),
amounts made available for highway projects or
transportation planning under chapter 53 of title 49 may
be transferred to and administered by the Secretary in
accordance with this title.
``(B) <> Non-federal share.--
The provisions of chapter 53 of title 49 relating to the
non-Federal share shall apply to amounts transferred
under subparagraph (A).
``(3) Transfer of funds among states or to federal highway
administration.--
``(A) In general.--Subject to subparagraph (B), the
Secretary may, at the request of a State, transfer
amounts apportioned or allocated under this title to the
State to another State, or to the Federal Highway
Administration, for the purpose of funding 1 or more
projects that are eligible for assistance with amounts
so apportioned or allocated.
``(B) Apportionment.--The transfer shall have no
effect on any apportionment of amounts to a State under
this section.
``(C) Funds suballocated to urbanized areas.--
Amounts that are apportioned or allocated to a State
under subsection (b)(3) (as in effect on the day before
the date of enactment of the MAP-21) or subsection
(b)(2) and attributed to an urbanized area of a State
with a population of more than 200,000 individuals under
section 133(d) may be transferred under this paragraph
only if the metropolitan planning organization
designated for the area concurs, in writing, with the
transfer request.
``(4) Transfer of obligation authority.--Obligation
authority for amounts transferred under this subsection shall be
transferred in the same manner and amount as the amounts for the
projects that are transferred under this section.

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

[[Page 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 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 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) <> Requirement for plan.--
Notwithstanding section 120, with respect to the second fiscal
year beginning after the date of establishment of the process
established in paragraph (8) or any subsequent fiscal year, if
the Secretary determines that a State has not developed and
implemented a State asset management plan consistent with this
section, the Federal share payable on account of any project or
activity carried out by the State in that fiscal year under this
section shall be 65 percent.
``(6) <> Certification of plan
development process.--
``(A) In general.--Not later than 90 days after the
date on which a State submits a request for approval of
the process used by the State to develop the State asset
management plan for the National Highway System, the
Secretary shall--
``(i) review the process; and
``(ii)(I) certify that the process meets the
requirements established by the Secretary; or
``(II) deny certification and specify actions
necessary for the State to take to correct
deficiencies in the State process.
``(B) Recertification.--Not less frequently than
once every 4 years, the Secretary shall review and
recertify that the process used by a State to develop
and maintain the State asset management plan for the
National Highway

[[Page 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) <> a written
statement of the specific actions the Secretary
determines to be necessary for the State to cure
the plan.
``(7) <> Performance achievement.--A State
that does not achieve or make significant progress toward
achieving the targets of the State for performance measures
described in section 150(d) for the National Highway System for
2 consecutive reports submitted under this paragraph shall
include in the next report submitted a description of the
actions the State will undertake to achieve the targets.
``(8) <> Process.--Not later
than 18 months after the date of enactment of the MAP-21, the
Secretary shall, by regulation and in consultation with State
departments of transportation, establish the process to develop
the State asset management plan described in paragraph (1).

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

[[Page 436]]

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

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

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

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

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

SEC. 1107. EMERGENCY RELIEF.

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

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

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

[[Page 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) <> 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 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 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 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 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 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) <> certifies that the
State will meet all the requirements of this section;
and
``(B) <> notifies the Secretary
of the amount of obligations needed to carry out the
program under this section.
``(2) Request for adjustments of amounts.--Each State shall
request from the Secretary such adjustments to the amount of
obligations referred to in paragraph (1)(B) as the State
determines to be necessary.
``(3) Effect of approval by the secretary.--Approval by the
Secretary of a project agreement under paragraph (1) shall be
deemed a contractual obligation of the United States to pay
surface transportation program funds made available under this
title.''.

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

[[Page 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 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 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) <> 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 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 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) <> written reports on
the results of highway bridge and tunnel
inspections and notations of any action taken
pursuant to the findings of the inspections; and
``(ii) <> current
inventory data for all highway bridges and tunnels
reflecting the findings of the most recent highway
bridge and tunnel inspections conducted; and
``(E) <> establish
a procedure for national certification of highway bridge
inspectors and tunnel inspectors.
``(3) State compliance with inspection standards.--The
Secretary shall, at a minimum--

[[Page 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) <> 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) <> Reviews of state compliance.--
``(A) In general.--The Secretary shall annually
review State compliance with the standards established
under this section.
``(B) Noncompliance.--If an annual review in
accordance with subparagraph (A) identifies
noncompliance by a State, the Secretary shall--
``(i) <> issue a report
detailing the issues of the noncompliance by
December 31 of the calendar year in which the
review was made; and
``(ii) provide the State an opportunity to
address the noncompliance by--
``(I) <> developing a corrective action
plan to remedy the noncompliance; or
``(II) resolving the issues of
noncompliance not later than 45 days
after the date of notification.
``(5) Penalty for noncompliance.--
``(A) <> In general.--If a State
fails to satisfy the requirements of paragraph (4)(B) by
August 1 of the calendar year following the year of a
finding of noncompliance, the Secretary shall, on
October 1 of that year, and each year thereafter as may
be necessary, require the State to dedicate funds
apportioned to the State under sections 119 and 133
after the date of enactment of the MAP-21 to correct the
noncompliance with the minimum inspection standards
established under this subsection.
``(B) Amount.--The amount of the funds to be
directed to correcting noncompliance in accordance with
subparagraph (A) shall--
``(i) <> be determined
by the State based on an analysis of the actions
needed to address the noncompliance; and
``(ii) require approval by the Secretary.
``(6) <> Update of standards.--Not later
than 3 years after the date of enactment of the MAP-21, the
Secretary shall update inspection standards to cover--
``(A) the methodology, training, and qualifications
for inspectors; and
``(B) the frequency of inspection.

[[Page 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 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 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 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) <> 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 454]]

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

[[Page 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) <> establish an
evaluation process to analyze and assess results
achieved by highway safety improvement projects carried
out in accordance with procedures and criteria
established by this section; and
``(ii) use the information obtained under clause (i)
in setting priorities for highway safety improvement
projects.

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

[[Page 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.-- <> 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 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 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) <> Transparency.--The Secretary shall make strategic
highway safety plans submitted under subsection (d) and reports
submitted under this subsection available to the public
through--
``(A) the website of the Department; and
``(B) such other means as the Secretary determines
to be appropriate.
``(4) Discovery and admission into evidence of certain
reports, surveys, and information.--Notwithstanding any other
provision of law, reports, surveys, schedules, lists, or data
compiled or collected for any purpose relating to this section,
shall not be subject to discovery or admitted into evidence in a
Federal or State court proceeding or considered for other
purposes in any action for damages arising from any occurrence
at a location identified or addressed in the reports, surveys,
schedules, lists, or other data.

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

[[Page 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) <> 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 460]]

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

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

(b) Special Rules.--Section 149 of title 23, United States Code, is
amended--
(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 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 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) <> Availability.--The database shall be
published or otherwise made readily available by the
Secretary in electronically accessible format and means,
such as the Internet, for public review.
``(2) Cost effectiveness.--
``(A) <> In general.--The
Secretary, in consultation with the Administrator of the
Environmental Protection Agency, shall evaluate projects
on a periodic basis and develop a table or other similar
medium that illustrates the cost-effectiveness of a
range of project types eligible for funding under this
section as to how the projects mitigate congestion and
improve air quality.
``(B) Contents.--The table described in subparagraph
(A) shall show measures of cost-effectiveness, such as
dollars per ton of emissions reduced, and assess those
measures over a variety of timeframes to capture impacts
on the planning timeframes outlined in section 134.
``(C) Use of table.--States and metropolitan
planning organizations shall consider the information in
the table when selecting projects or developing
performance plans under subsection (l).

``(j) Optional Programmatic Eligibility.--

[[Page 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) <> 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 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) <> 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 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 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 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) <> 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 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 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) <> 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 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) <> Redesignation of
primary freight network.--Effective beginning 10 years after the
designation of the primary freight network and every 10 years
thereafter, using the designation factors described in paragraph
(1), the Secretary shall redesignate the primary freight network
(including additional mileage described in paragraph (2)).

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

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

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

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

[[Page 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. <> PRIORITIZATION OF PROJECTS
TO IMPROVE FREIGHT MOVEMENT.

(a) <> 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. <> 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 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. <> STATE FREIGHT PLANS.

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

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

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

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

[[Page 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 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 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 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 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 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 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 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--
<>
``(AA) which such Indian
tribes would be entitled
under subparagraph (A) to

[[Page 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) <> 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 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 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 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 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 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 488]]

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

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

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

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

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

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

[[Page 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. <> 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 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) <> 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 499]]

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

(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 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 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 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) <> 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) <> Included area.--Each
metropolitan planning area--

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

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

[[Page 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) <> 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 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 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) <> 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 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) <> 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 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) <> 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 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 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 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 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 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) <> 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 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 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 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) <> Transportation improvement
program approval.--Every 4 years, a transportation improvement
program developed under this subsection shall be reviewed and
approved by the Secretary if based on a current planning
finding.
``(8) Planning finding.--A finding shall be made by the
Secretary at least every 4 years that the transportation
planning process through which statewide transportation plans
and programs are developed is consistent with this section and
section 134.
``(9) Modifications to project priority.--Notwithstanding
any other provision of law, action by the Secretary shall not be
required to advance a project included in the approved
transportation improvement program in place of another project
in the program.

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

[[Page 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) <> Schedule for Implementation.--The
Secretary shall issue guidance on a schedule for implementation of the
changes made by this section, taking into consideration the established
planning update cycle for States. The Secretary shall not require a
State to deviate from its established planning update cycle to implement
changes made by this section. <> States shall reflect
changes made to their transportation plan or transportation improvement
program updates not later than 2 years after the date of issuance of
guidance by the Secretary under this subsection.

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

[[Page 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 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) <> 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) <> 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 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) <> 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 527]]

Subtitle C--Acceleration of Project Delivery

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

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

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

[[Page 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 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 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 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 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) <> Regulations.--The Secretary shall
promulgate such regulations as are necessary to carry out the amendment
made by subsection (a).

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

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

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

[[Page 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 534]]

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

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

[[Page 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) <> Submission of
documents.--The project sponsor may satisfy the requirement
under paragraph (1) by submitting to the Secretary any relevant
documents containing the information described in that
paragraph, including a draft notice for publication in the
Federal Register announcing the preparation of an environmental
review for the project.''.

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

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

[[Page 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) <> Date.--A meeting
requested under this subparagraph shall be held by
not later than 21 days after the date of receipt
of the request for the meeting, unless the lead
agency determines that there is good cause to
extend the time for the meeting.
``(iv) Notification.--On receipt of a request
for a meeting under this subparagraph, the lead
agency shall notify all relevant participating
agencies of the request, including the issue to be
resolved, and the date for the meeting.
``(v) Disputes.--If a relevant participating
agency with jurisdiction over an approval required
for a project under applicable law determines that
the relevant information necessary to resolve the
issue has not been obtained and could not have
been obtained within a reasonable time, but the
lead agency disagrees, the resolution of the
dispute shall be forwarded to the heads of the
relevant agencies for resolution.
``(vi) Convention by lead agency.--A lead
agency may convene an issue resolution meeting
under this subsection at any time without the
request of the Federal agency of jurisdiction,
project sponsor, or the Governor of a State.
``(B) Elevation of issue resolution.--
``(i) <> In
general.--If issue resolution is not achieved by
not later than 30 days after the date of a
relevant meeting under subparagraph (A), the

[[Page 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) <> 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 538]]

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

[[Page 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) <> 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 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) <> 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 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 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 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 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) <> 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 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) <> 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 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 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) <> notification of
the determination of noncompliance; and
``(ii) <> a period of at
least 30 days during which to take such corrective
action as the Secretary determines is necessary to
comply with the applicable agreement; and
``(C) the State, after the notification and period
provided under subparagraph (B), fails to take
satisfactory corrective action, as determined by the
Secretary.
``(2) <> Termination by the
state.--The State may terminate the participation of the State
in the program at any time by providing to the Secretary a
notice by not later than the date that is 90 days before the
date of termination, and subject to such terms and conditions as
the Secretary may provide.''.

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

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

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

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

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

[[Page 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 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. <> CATEGORICAL EXCLUSIONS IN
EMERGENCIES.

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

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

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

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

[[Page 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. <> CATEGORICAL
EXCLUSION FOR PROJECTS OF LIMITED
FEDERAL ASSISTANCE.

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

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

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

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

[[Page 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. <> ACCELERATED DECISIONMAKING
IN ENVIRONMENTAL REVIEWS.

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

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

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

[[Page 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. <> 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 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) <> determine the frequency and
cost of environmental reviews carried out at the Federal level
that are duplicative of State reviews that provide equivalent
environmental protections and opportunities for public
involvement; and
(3) <> not later than 2 years after the
date of enactment of this Act, submit to the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public
Works of the Senate a report that describes the results of the
review and determination made under this section.
SEC. 1323. REVIEW OF FEDERAL PROJECT AND PROGRAM DELIVERY.

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

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

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

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

[[Page 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 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 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 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 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. <> 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 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 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) <> 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 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) <> 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 564]]

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

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

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

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

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

[[Page 565]]

(2) by adding at the end the following:

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

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

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

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

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

[[Page 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) <> the Federal share payable for
eligible emergency repairs to minimize damage, protect
facilities, or restore essential traffic accomplished within 180
days after the actual occurrence of the natural disaster or
catastrophic failure may amount to 100 percent of the cost of
the repairs;
``(2) the Federal share payable for any repair or
reconstruction of Federal land transportation facilities,
Federal land access transportation facilities, and tribal
transportation facilities may amount to 100 percent of the cost
of the repair or reconstruction;
``(3) <> the Secretary shall extend the
time period in paragraph (1) taking into consideration any delay
in the ability of the State to access damaged facilities to
evaluate damage and the cost of repair; and
``(4) the Federal share payable for eligible permanent
repairs to restore damaged facilities to predisaster condition
may amount to 90 percent of the cost of the repairs if the
eligible expenses incurred by the State due to natural disasters
or catastrophic failures in a Federal fiscal year exceeds the
annual apportionment of the State under section 104 for the
fiscal year in which the disasters or failures occurred.'';
(3) by striking subsection (g) and redesignating subsections
(h) through (l) as subsections (g) through (k), respectively;
(4) in subsection (i)(1)(A) (as redesignated by paragraph
(3)) by striking ``and the Appalachian development highway
system program under section 14501 of title 40''; and
(5) by striking subsections (j) and (k) (as redesignated by
paragraph (3)) and inserting the following:

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

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

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

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

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

[[Page 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 <> (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 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 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 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. <> 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) <> 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 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) <> 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 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. <> USE OF YOUTH SERVICE AND
CONSERVATION CORPS.

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

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

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

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

[[Page 581]]

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

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

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

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

[[Page 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. <> 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) <> 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 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. <> ENGINEERING JUDGMENT.

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

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

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

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

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

[[Page 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. <> PUBLIC-PRIVATE PARTNERSHIPS.

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

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

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

[[Page 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. <> 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 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 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 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. <> The Secretary shall establish
criteria for the installation of such signs on the main traveled way,
including criteria pertaining to the placement of rest area sponsorship
acknowledgment signs in relation to the placement of advance guide signs
for rest areas.''.

Subtitle F-- <> Gulf Coast Restoration
SEC. 1601. <> SHORT TITLE.

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

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

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

[[Page 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. <> GULF COAST NATURAL
RESOURCES RESTORATION AND ECONOMIC
RECOVERY.

Section 311 of the Federal Water Pollution Control Act (33 U.S.C.
1321) is amended--
(1) in subsection (a)--
(A) in paragraph (25)(B), by striking ``and'' at the
end;
(B) in paragraph (26)(D), by striking the period at
the end and inserting a semicolon; and
(C) <> by adding at the end the
following:
``(27) the term `best available science' means science
that--
``(A) maximizes the quality, objectivity, and
integrity of information, including statistical
information;
``(B) uses peer-reviewed and publicly available
data; and
``(C) clearly documents and communicates risks and
uncertainties in the scientific basis for such projects;
``(28) the term `Chairperson' means the Chairperson of the
Council;
``(29) the term `coastal political subdivision' means any
local political jurisdiction that is immediately below the State
level of government, including a county, parish, or borough,
with a coastline that is contiguous with any portion of the
United States Gulf of Mexico;
``(30) the term `Comprehensive Plan' means the comprehensive
plan developed by the Council pursuant to subsection (t);
``(31) the term `Council' means the Gulf Coast Ecosystem
Restoration Council established pursuant to subsection (t);
``(32) the term `Deepwater Horizon oil spill' means the
blowout and explosion of the mobile offshore drilling unit
Deepwater Horizon that occurred on April 20, 2010, and resulting
hydrocarbon releases into the environment;
``(33) the term `Gulf Coast region' means--
``(A) in the Gulf Coast States, the coastal zones
(as that term is defined in section 304 of the Coastal
Zone Management Act of 1972 (16 U.S.C. 1453)), except
that, in this section, the 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 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 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 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) <> certify in
such form and in such manner as the Secretary of
the Treasury determines necessary that the project
or program for which the Gulf Coast State or
coastal political subdivision is requesting
amounts--
``(I) is designed to restore and
protect the natural resources,
ecosystems, fisheries, marine and
wildlife habitats, beaches, coastal
wetlands, or economy of the Gulf Coast;
``(II) carries out 1 or more of the
activities described in clauses (i) and
(ii) of subparagraph (B);
``(III) was selected based on
meaningful input from the public,
including broad-based participation from
individuals, businesses, and nonprofit
organizations; and
``(IV) in the case of a natural
resource protection or restoration
project, is based on the best available
science;
``(iii) <> certify that
the project or program and the awarding of a
contract for the expenditure of amounts received
under this paragraph are consistent with the
standard procurement rules and regulations
governing a comparable project or program in that
State, including all applicable competitive
bidding and audit requirements; and
``(iv) <> develop
and submit a multiyear implementation plan for the
use of such amounts, which may include milestones,
projected completion of each activity, and a
mechanism to evaluate the success of each activity
in helping to restore and protect the Gulf Coast
region impacted by the Deepwater Horizon oil
spill.
``(F) Approval by state entity, task force, or
agency.--The following Gulf Coast State entities, task
forces, or agencies shall carry out the duties of a Gulf
Coast State pursuant to this paragraph:
``(i) Alabama.--
``(I) In general.--In the State of
Alabama, the Alabama Gulf Coast Recovery
Council, which shall be comprised of
only the following:
``(aa) The Governor of
Alabama, who shall also serve as
Chairperson and preside over the
meetings of the Alabama Gulf
Coast Recovery Council.
``(bb) The Director of the
Alabama State Port Authority,
who shall also serve as Vice
Chairperson and preside over the
meetings

[[Page 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 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) <> Local preference.--In
awarding contracts to carry out a project or program
under this paragraph, a Gulf Coast State or coastal
political subdivision may give a preference to
individuals and companies that reside in, are
headquartered in, or are principally engaged in business
in the State of project execution.
``(L) <> Unused funds.--Funds allocated
to a State or coastal political subdivision under this
paragraph shall remain in the Trust Fund until such time
as the State or coastal political subdivision develops
and submits a plan identifying uses for those funds in
accordance with subparagraph (E)(iv).
``(M) Judicial review.--If the Secretary of the
Treasury determines that a Gulf Coast State or coastal
political subdivision does not meet the requirements of
this paragraph, including the conditions of subparagraph
(E), the Gulf Coast State or coastal political
subdivision may obtain expedited judicial review within
90 days after that decision in a district court of the
United States, of appropriate jurisdiction and venue,
that is located within the State seeking the review.
``(N) Cost-sharing.--
``(i) In general.--A Gulf Coast State or
coastal political subdivision may use, in whole or
in part, amounts made available under this
paragraph to that Gulf Coast State or coastal
political subdivision to satisfy the non-Federal
share of the cost of any project or program
authorized by Federal law that is an eligible
activity described in clauses (i) and (ii) of
subparagraph (B).
``(ii) Effect on other funds.--The use of
funds made available from the Trust Fund to
satisfy the

[[Page 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) <> 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) <> Chairperso
n.--From among the Federal agency members of the
Council, the representatives of States on the
Council shall select, and the President

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

[[Page 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) <> 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 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) <> Limitation on
transfers.--
``(aa) Grants to
nongovernmental entities.--In
the case of funds transferred to
a Federal or State agency under
subclause (II), the agency shall
not make 1 or more grants or
cooperative agreements to a
nongovernmental entity if the
total amount provided to the
entity would equal or exceed 10
percent of the total amount
provided to the agency for that
particular project or program,
unless the 1 or more grants have
been reported in accordance with
item (bb).
``(bb) <> Reporting of
grantees.--At least 30 days
prior to making a grant or
entering into a cooperative
agreement described in item
(aa), the name of each grantee,
including the

[[Page 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) <> Formula.--
Subject to subparagraph (B), for each Gulf Coast
State, the amount disbursed under this paragraph
shall be based on a formula established by the
Council by regulation that is based on a weighted
average of the following criteria:
``(I) 40 percent based on the
proportionate number of miles of
shoreline in each Gulf Coast State that
experienced oiling on or before April
10, 2011, compared to the total number
of miles of shoreline that experienced
oiling as a result of the Deepwater
Horizon oil spill.
``(II) 40 percent based on the
inverse proportion of the average
distance from the mobile offshore
drilling unit Deepwater Horizon at the
time of the explosion to the nearest and
farthest point of the shoreline that
experienced oiling of each Gulf Coast
State.
``(III) 20 percent based on the
average population in the 2010 decennial
census of coastal counties bordering the
Gulf of Mexico within each Gulf Coast
State.
``(iii) Minimum allocation.--The amount
disbursed to a Gulf Coast State for each fiscal
year under clause (ii) shall be at least 5 percent
of the total amounts made available under this
paragraph.
``(B) Disbursement of funds.--
``(i) <> In
general.--The Council shall disburse amounts to
the respective Gulf Coast States in accordance
with the formula developed under subparagraph (A)
for projects, programs, and activities that will

[[Page 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) <> Development.--The plan described in
clause (i) shall be developed by--
``(I) in the State of Alabama, the
Alabama Gulf Coast Recovery Council
established under paragraph (1)(F)(i);
``(II) in the State of Florida, a
consortia of local political
subdivisions that includes at a minimum
1 representative of each affected
county;
``(III) in the State of Louisiana,
the Coastal Protection and Restoration
Authority of Louisiana;
``(IV) in the State of Mississippi,
the Office of the Governor or an
appointee of the Office of the Governor;
and
``(V) in the State of Texas, the
Office of the Governor or an appointee
of the Office of the Governor.
``(iv) <> Approval.--Not
later than 60 days after the date on which a plan
is submitted under clause (i), the Council shall
approve or disapprove the plan based on the
conditions of clause (i).
``(C) Disapproval.--If the Council disapproves a
plan pursuant to subparagraph (B)(iv), the Council
shall--
``(i) provide the reasons for disapproval in
writing; and

[[Page 603]]

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

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

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

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

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

(g) Limitation on Expenditures.--

[[Page 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. <> 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 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. <> 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 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. <> RESTORATION AND PROTECTION
ACTIVITY LIMITATIONS.

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

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

TITLE II-- <> AMERICA FAST FORWARD FINANCING INNOVATION
SEC. 2001. <> SHORT TITLE.

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

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

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

[[Page 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 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 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 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 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.-- <> The
Secretary shall determine that financial assistance for the
project under this chapter will--
``(A) foster, if appropriate, partnerships that
attract public and private investment for the project;
``(B) enable the project to proceed at an earlier
date than the project would otherwise be able to proceed
or reduce the lifecycle costs (including debt service
costs) of the project; and
``(C) reduce the contribution of Federal grant
assistance for the project.
``(10) Project readiness.-- <> To be
eligible for assistance under this chapter, the applicant shall
demonstrate a reasonable expectation that the contracting
process for construction of the project can commence by not
later than 90 days after the date on which a Federal credit
instrument is obligated for the project under this chapter.

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

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

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

[[Page 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.-- <> A loan under paragraph (1)
shall not refinance interim construction financing under
paragraph (1)(B) later than 1 year after the date of substantial
completion of the project.
``(3) Risk assessment.-- <> Before
entering into an agreement under this subsection, the Secretary,
in consultation with the Director of the Office of Management
and Budget, shall determine an appropriate capital reserve
subsidy amount for each secured loan, taking into account each
rating letter provided by an agency under section 602(b)(3)(B).

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

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

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

[[Page 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-- <> PUBLIC
TRANSPORTATION
SEC. 20001. <> SHORT TITLE.

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

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

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

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

[[Page 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 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 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 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 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 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 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.-- <> 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 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) <> 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 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 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 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 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) <> 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 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 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) <> 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 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) <> 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 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 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) <> 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 640]]

``(B) <> Schedule.--The
Secretary shall establish an appropriate phase-in
schedule for compliance with the requirements of this
section but no sooner than 1 year after the
identification of a transportation management area.
``(4) Selection of projects.--
``(A) In general.--All Federally funded projects
carried out within the boundaries of a metropolitan
planning area serving a transportation management area
under title 23 (excluding projects carried out on the
National Highway System) or under this chapter shall be
selected for implementation from the approved TIP by the
metropolitan planning organization designated for the
area in consultation with the State and any affected
public transportation operator.
``(B) National highway system projects.--Projects
carried out within the boundaries of a metropolitan
planning area serving a transportation management area
on the National Highway System shall be selected for
implementation from the approved TIP by the State in
cooperation with the metropolitan planning organization
designated for the area.
``(5) Certification.--
``(A) In general.--The Secretary shall--
``(i) ensure that the metropolitan planning
process of a metropolitan planning organization
serving a transportation management area is being
carried out in accordance with applicable
provisions of Federal law; and
``(ii) <> subject to
subparagraph (B), certify, not less often than
once every 4 years, that the requirements of this
paragraph are met with respect to the metropolitan
planning process.
``(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 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 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) <> 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 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 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 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) <> 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 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) <> 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 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) <> 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 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) <> 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 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 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) <> Planning finding.--A finding
shall be made by the Secretary at least every 4 years that the
transportation planning process through which statewide
transportation plans and programs are developed is consistent
with this section and section 5303.
``(9) Modifications to project priority.--Notwithstanding
any other provision of law, action by the Secretary shall not be
required to advance a project included in the approved
transportation improvement program in place of another project
in the program.

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

[[Page 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) <> Schedule for Implementation.--The
Secretary shall issue guidance on a schedule for implementation of the
changes made by this section, taking into consideration the established
planning update cycle for States. The Secretary shall not require a
State to deviate from its established planning update cycle to implement
changes made by this section. <> States shall reflect
changes made to their transportation plan or transportation improvement
program updates not later than 2 years after the date of issuance of
guidance by the Secretary under this subsection.

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

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

[[Page 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) <> has a locally
developed process to solicit and consider public comment
before raising a fare or carrying out a major reduction
of transportation;
``(J)(i) will expend for each fiscal year for public
transportation security projects, including increased
lighting in or adjacent to a public transportation
system (including bus stops, subway stations, parking
lots, and garages), increased camera surveillance of an
area in or adjacent to that system, providing an
emergency telephone line to contact law enforcement or
security personnel in an area in or adjacent to that
system, and any other project intended to increase the
security and safety of an existing or planned public
transportation system, at least 1 percent of the amount
the recipient receives for each fiscal year under
section 5336 of this title; or
``(ii) has decided that the expenditure for security
projects is not necessary;
``(K) in the case of a recipient for an urbanized
area with a population of not fewer than 200,000
individuals, as determined by the Bureau of the Census--
``(i) will expend not less than 1 percent of
the amount the recipient receives each fiscal year
under this section for associated transit
improvements, as defined in section 5302; and
``(ii) <> will submit an
annual report listing projects carried out in the
preceding fiscal year with those funds; and
``(L) will comply with section 5329(d); and
``(2) the Secretary accepts the certification.

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

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

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

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

[[Page 661]]

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

[[Page 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) <> 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 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) <> 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) <> 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 664]]

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

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

[[Page 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) <> Selection criteria.--The
Secretary may provide Federal assistance for a small start
project under this subsection only if the Secretary determines
that the project--
``(A) has been adopted as the locally preferred
alternative as part of the metropolitan transportation
plan required under section 5303;
``(B) is based on the results of an analysis of the
benefits of the project as set forth in paragraph (4);
and
``(C) is supported by an acceptable degree of local
financial commitment.
``(4) Evaluation of benefits and federal investment.--In
making a determination for a small start project under paragraph
(3)(B), the Secretary shall analyze, evaluate, and consider the
following evaluation criteria for the project (as compared to a
no-action alternative): mobility improvements, environmental
benefits, congestion relief, economic development effects
associated with the project, policies and land use patterns that
support public transportation and cost-effectiveness as measured
by cost per rider.
``(5) Evaluation of local financial commitment.--For
purposes of paragraph (3)(C), the Secretary shall require that
each proposed local source of capital and operating financing is
stable, reliable, and available within the proposed project
timetable.
``(6) <> Ratings.--In carrying out
paragraphs (4) and (5) for a small start project, the Secretary
shall evaluate and rate the project on a 5-point scale (high,
medium-high, medium, medium-low, or low) based on an evaluation
of the benefits of the project as compared to the Federal
assistance to be provided and the degree of local financial
commitment, as required under this subsection. In rating the
projects, the Secretary shall provide, in addition to the
overall project rating, individual ratings for each of the
criteria established by this subsection and shall give
comparable, but not necessarily equal, numerical weight to the
benefits that the project will bring to the community in
calculating the overall project rating.
``(7) Grants and expedited grant agreements.--
``(A) In general.--The Secretary, to the maximum
extent practicable, shall provide Federal assistance
under this subsection in a single grant. If the
Secretary cannot provide such a single grant, the
Secretary may execute

[[Page 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.-- <> At least 10 days
before making a grant award or entering into a grant
agreement for a project under this subsection, the
Secretary shall notify, in writing, the Committee on
Transportation and Infrastructure and the Committee on
Appropriations of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs and the
Committee on Appropriations of the Senate of the
proposed grant or expedited grant agreement, as well as
the evaluations and ratings for the project.

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

[[Page 667]]

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

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

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

[[Page 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 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 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) <> 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 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 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 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 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 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) <> 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 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 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 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 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 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 685]]

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

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

[[Page 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 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 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) <> 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 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.-- <> 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 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 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 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) <> Public-private Partnership
Procedures and Approaches.--
(1) Identify impediments.--The Secretary shall--
(A) except as provided in paragraph (6), identify
any provisions of chapter 53 of title 49, United States
Code, and any regulations or practices thereunder, that
impede greater use of public-private partnerships and
private investment in public transportation capital
projects; and
(B) develop and implement on a project basis
procedures and approaches that--
(i) address such impediments in a manner
similar to the Special Experimental Project Number
15 of the Federal Highway Administration (commonly
referred to as ``SEP-15''); and
(ii) protect the public interest and any
public investment in public transportation capital
projects that involve public-private partnerships
or private investment in public transportation
capital projects.
(2) <> Transparency.--The Secretary shall
develop guidance to promote greater transparency and public
access to public-private partnership agreements involving
recipients of Federal

[[Page 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) <> 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) <> 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 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) <> Guidance on Documenting Compliance.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall publish in the
Federal Register policy guidance regarding how to best document
compliance by recipients of Federal assistance under chapter 53 of title
49, United States Code, with the requirements regarding private
enterprise participation in public transportation planning and
transportation improvement programs under sections 5303(i)(6), 5306(a),
and 5307(c) of such title 49.
SEC. 20014. BUS TESTING FACILITIES.

Section 5318 of title 49, United States Code, is amended by striking
subsection (e) and inserting the following:
``(e) Acquiring New Bus Models.--
``(1) In general.--Amounts appropriated or otherwise made
available under this chapter may be obligated or expended to
acquire a new bus model only if--
``(A) a bus of that model has been tested at a
facility authorized under subsection (a); and
``(B) the bus tested under subparagraph (A) met--
``(i) performance standards for
maintainability, reliability, performance
(including braking performance), structural
integrity, fuel economy, emissions, and noise, as
established by the Secretary by rule; and
``(ii) the minimum safety performance
standards established by the Secretary pursuant to
section 5329(b).
``(2) <> Bus test `pass/fail'
standard.--Not later than 2 years after the date of enactment of
the Federal Public Transportation Act of 2012, the Secretary
shall issue a final rule under subparagraph (B)(i). The final
rule issued under paragraph (B)(i) shall include a bus model
scoring system that results

[[Page 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) <> 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 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 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) <> 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) <> 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 698]]

each project that may have a substantial impact on the
environment.
``(2) <> Compliance with nepa.--The
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.) shall apply to financial assistance for capital projects
under this chapter.

``(d) Condition on Charter Bus Transportation Service.--
``(1) Agreements.--Financial assistance under this chapter
may be used to buy or operate a bus only if the applicant,
governmental authority, or publicly owned operator that receives
the assistance agrees that, except as provided in the agreement,
the governmental authority or an operator of public
transportation for the governmental authority will not provide
charter bus transportation service outside the urban area in
which it provides regularly scheduled public transportation
service. An agreement shall provide for a fair arrangement the
Secretary of Transportation considers appropriate to ensure that
the assistance will not enable a governmental authority or an
operator for a governmental authority to foreclose a private
operator from providing intercity charter bus service if the
private operator can provide the service.
``(2) Violations.--
``(A) Investigations.--On receiving a complaint
about a violation of the agreement required under
paragraph (1), the Secretary shall investigate and
decide whether a violation has occurred.
``(B) Enforcement of agreements.--If the Secretary
decides that a violation has occurred, the Secretary
shall correct the violation under terms of the
agreement.
``(C) Additional remedies.--In addition to any
remedy specified in the agreement, the Secretary shall
bar a recipient or an operator from receiving Federal
transit assistance in an amount the Secretary considers
appropriate if the Secretary finds a pattern of
violations of the agreement.

``(e) Bond Proceeds Eligible for Local Share.--
``(1) Use as local matching funds.--Notwithstanding any
other provision of law, a recipient of assistance under section
5307, 5309, or 5337 may use the proceeds from the issuance of
revenue bonds as part of the local matching funds for a capital
project.
``(2) Maintenance of effort.--The Secretary shall approve of
the use of the proceeds from the issuance of revenue bonds for
the remainder of the net project cost only if the Secretary
finds that the aggregate amount of financial support for public
transportation in the urbanized area provided by the State and
affected local governmental authorities during the next 3 fiscal
years, as programmed in the State transportation improvement
program under section 5304, is not less than the aggregate
amount provided by the State and affected local governmental
authorities in the urbanized area during the preceding 3 fiscal
years.
``(3) Debt service reserve.--The Secretary may reimburse an
eligible recipient for deposits of bond proceeds in a debt
service reserve that the recipient establishes pursuant to
section 5302(3)(J) from amounts made available to the recipient
under section 5309.

``(f) Schoolbus Transportation.--

[[Page 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) <> 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 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 701]]

``(i) <> publish in the Federal Register and
make publicly available in an easily identifiable
location on the website of the Department of
Transportation a detailed written explanation of
the waiver determination; and
``(ii) <> provide
the public with a reasonable period of time for
notice and comment.
``(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 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) <> Fraud and false statements.--
Section 1001 of title 18 applies to a certificate, submission,
or statement provided under this chapter. The Secretary may
terminate financial assistance under this chapter and seek
reimbursement directly, or by offsetting amounts, available
under this chapter if the Secretary determines that a recipient
of such financial assistance has made a false or fraudulent
statement or related act in connection with a Federal public
transportation program.
``(2) Political activities of nonsupervisory employees.--The
provision of assistance under this chapter shall not be
construed to require the application of chapter 15 of title 5 to
any nonsupervisory employee of a public transportation system
(or any other agency or entity performing related functions) to
whom such chapter does not otherwise apply.

``(m) Preaward and Postdelivery Review of Rolling Stock Purchases.--
<> The Secretary shall prescribe regulations
requiring a preaward and postdelivery review of a grant under this
chapter to buy rolling stock to ensure compliance with Government motor
vehicle safety requirements, subsection (j) of this section, and bid
specifications requirements of grant recipients under this chapter.
Under this subsection, independent inspections and review are required,
and a manufacturer certification is not sufficient. Rolling stock
procurements of 20 vehicles or fewer made for the purpose of serving
rural areas and urbanized areas with populations of 200,000 or fewer
shall be subject to the same requirements as established for
procurements of 10 or fewer buses under the post-delivery purchaser's
requirements certification process under section 663.37(c) of title 49,
Code of Federal Regulations.

``(n) Submission of Certifications.--A certification required under
this chapter and any additional certification or assurance required by
law or regulation to be submitted to the Secretary may be consolidated
into a single document to be submitted annually as part of a grant
application under this chapter. The Secretary shall publish annually a
list of all certifications required under this chapter with the
publication required under section 5336(d)(2).
``(o) <> Grant Requirements.--The grant
requirements under sections 5307, 5309, and 5337 apply to any project
under this chapter

[[Page 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 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) <> 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 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) <> Memorandum of Agreement.--
(1) Purposes.--The purposes of this subsection are--
(A) to improve coordination between the Department
of Transportation and the Department of Homeland
Security; and
(B) to expedite the provision of Federal assistance
for public transportation systems for activities
relating to a major disaster or emergency declared by
the President under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.) (referred to in this subsection as a ``major
disaster or emergency'').
(2) <> Agreement.--Not later than 180 days
after the date of enactment of this Act, the Secretary of
Transportation and the Secretary of Homeland Security shall
enter into a memorandum of agreement to coordinate the roles and
responsibilities of the Department of Transportation and the
Department of Homeland Security in providing assistance for
public transportation, including the provision of public
transportation services and the repair and restoration of public
transportation systems in areas for which the President has
declared a major disaster or emergency.
(3) Contents of agreement.--The memorandum of agreement
required under paragraph (2) shall--
(A) provide for improved coordination and
expeditious use of public transportation, as
appropriate, in response to and recovery from a major
disaster or emergency;
(B) establish procedures to address--
(i) issues that have contributed to delays in
the reimbursement of eligible transportation-
related expenses relating to a major disaster or
emergency;
(ii) any challenges identified in the review
under paragraph (4); and
(iii) the coordination of assistance for
public transportation provided under the Robert T.
Stafford Disaster Relief and Emergency Assistance
Act and section 5324 of title 49, United States
Code, as amended by this Act, as appropriate; and
(C) provide for the development and distribution of
clear guidelines for State, local, and tribal
governments, including public transportation systems,
relating to--
(i) assistance available for public
transportation systems for activities relating to
a major disaster or emergency--
(I) under the Robert T. Stafford
Disaster Relief and Emergency Assistance
Act;
(II) under section 5324 of title 49,
United States Code, as amended by this
Act; and
(III) from other sources, including
other Federal agencies; and
(ii) reimbursement procedures that speed the
process of--

[[Page 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.-- <> 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 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 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) <> 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) <> 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 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 710]]

systems and employees of public transportation agencies directly
responsible for safety oversight.
``(2) <> Interim provisions.--Not later
than 90 days after the date of enactment of the Federal Public
Transportation Act of 2012, the Secretary shall establish
interim provisions for the certification and training of the
personnel described in paragraph (1), which shall be in effect
until the effective date of the final rule issued by the
Secretary to implement this subsection.

``(d) Public Transportation Agency Safety Plan.--
``(1) <> In general.--
Effective 1 year after the effective date of a final rule issued
by the Secretary to carry out this subsection, each recipient or
State, as described in paragraph (3), shall certify that the
recipient or State has established a comprehensive agency safety
plan that includes, at a minimum--
``(A) a requirement that the board of directors (or
equivalent entity) of the recipient approve the agency
safety plan and any updates to the agency safety plan;
``(B) methods for identifying and evaluating safety
risks throughout all elements of the public
transportation system of the recipient;
``(C) strategies to minimize the exposure of the
public, personnel, and property to hazards and unsafe
conditions;
``(D) a process and timeline for conducting an
annual review and update of the safety plan of the
recipient;
``(E) performance targets based on the safety
performance criteria and state of good repair standards
established under subparagraphs (A) and (B),
respectively, of subsection (b)(2);
``(F) assignment of an adequately trained safety
officer who reports directly to the general manager,
president, or equivalent officer of the recipient; and
``(G) a comprehensive staff training program for the
operations personnel and personnel directly responsible
for safety of the recipient that includes--
``(i) the completion of a safety training
program; and
``(ii) continuing safety education and
training.
``(2) Interim agency safety plan.--A system safety plan
developed pursuant to part 659 of title 49, Code of Federal
Regulations, as in effect on the date of enactment of the
Federal Public Transportation Act of 2012, shall remain in
effect until such time as this subsection takes effect.
``(3) Public transportation agency safety plan drafting and
certification.--
``(A) Section 5311.--For a recipient receiving
assistance under section 5311, a State safety plan may
be drafted and certified by the recipient or a State.
``(B) Section 5307.--
<> Not later than 120 days
after the date of enactment of the Federal Public
Transportation Act of 2012, the Secretary shall issue a
rule designating recipients of assistance under section
5307 that are small public transportation providers or
systems that may have their State safety plans drafted
or certified by a State.

``(e) State Safety Oversight Program.--

[[Page 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) <> In general.--In order to
obligate funds apportioned under section 5338 to carry out this
chapter, effective 3 years after the date on which a final rule
under this subsection becomes effective, an eligible State shall
have in effect a State safety oversight program approved by the
Secretary under which the State--
``(A) assumes responsibility for overseeing rail
fixed guideway public transportation safety;
``(B) adopts and enforces Federal and relevant State
laws on rail fixed guideway public transportation
safety;
``(C) establishes a State safety oversight agency;
``(D) <> determines, in
consultation with the Secretary, an appropriate staffing
level for the State safety oversight agency that is
commensurate with the number, size, and complexity of
the rail fixed guideway public transportation systems in
the eligible State;
``(E) requires that employees and other designated
personnel of the eligible State safety oversight agency
who are responsible for rail fixed guideway public
transportation safety oversight are qualified to perform
such functions through appropriate training, including
successful completion of the public transportation
safety certification training program established under
subsection (c); and
``(F) prohibits any public transportation agency
from providing funds to the State safety oversight
agency or an entity designated by the eligible State as
the State safety oversight agency under paragraph (4).
``(4) State safety oversight agency.--
``(A) In general.--Each State safety oversight
program shall establish a State safety oversight agency
that--
``(i) is financially and legally independent
from any public transportation entity that the
State safety oversight agency oversees;
``(ii) does not directly provide public
transportation services in an area with a rail
fixed guideway public transportation system
subject to the requirements of this section;
``(iii) does not employ any individual who is
also responsible for the administration of rail
fixed guideway public transportation programs
subject to the requirements of this section;
``(iv) has the authority to review, approve,
oversee, and enforce the implementation by the
rail fixed guideway public transportation agency
of the public transportation agency safety plan
required under subsection (d);

[[Page 712]]

``(v) has investigative and enforcement
authority with respect to the safety of rail fixed
guideway public transportation systems of the
eligible State;
``(vi) <> audits, at least once
triennially, the compliance of the rail fixed
guideway public transportation systems in the
eligible State subject to this subsection with the
public transportation agency safety plan required
under subsection (d); and
``(vii) <> provides,
at least once annually, a status report on the
safety of the rail fixed guideway public
transportation systems the State safety oversight
agency oversees to--
``(I) the Federal Transit
Administration;
``(II) the Governor of the eligible
State; and
``(III) the board of directors, or
equivalent entity, of any rail fixed
guideway public transportation system
that the State safety oversight agency
oversees.
``(B) Waiver.--At the request of an eligible State,
the Secretary may waive clauses (i) and (iii) of
subparagraph (A) for eligible States with 1 or more rail
fixed guideway systems in revenue operations, design, or
construction, that--
``(i) have fewer than 1,000,000 combined
actual and projected rail fixed guideway revenue
miles per year; or
``(ii) provide fewer than 10,000,000 combined
actual and projected unlinked passenger trips per
year.
``(5) Programs for multi-state rail fixed guideway public
transportation systems.--An eligible State that has within the
jurisdiction of the eligible State a rail fixed guideway public
transportation system that operates in more than 1 eligible
State shall--
``(A) jointly with all other eligible States in
which the rail fixed guideway public transportation
system operates, ensure uniform safety standards and
enforcement procedures that shall be in compliance with
this section, and establish and implement a State safety
oversight program approved by the Secretary; or
``(B) jointly with all other eligible States in
which the rail fixed guideway public transportation
system operates, designate an entity having
characteristics consistent with the characteristics
described in paragraph (3) to carry out the State safety
oversight program approved by the Secretary.
``(6) Grants.--
``(A) In general.--The Secretary shall make grants
to eligible States to develop or carry out State safety
oversight programs under this subsection. Grant funds
may be used for program operational and administrative
expenses, including employee training activities.
``(B) Apportionment.--
``(i) Formula.--The amount made available for
State safety oversight under section 5336(h) shall
be apportioned among eligible States under a
formula to be established by the Secretary. Such
formula shall take into account fixed guideway
vehicle revenue miles,

[[Page 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) <> 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 714]]

``(C) <> Disapproval.--If the
Secretary determines that a State safety oversight
program does not meet the requirements of this
subsection and denies certification, the Secretary shall
transmit to the eligible State a written explanation and
allow the eligible State to modify and resubmit the
State safety oversight program for approval.
``(D) Failure to correct.--If the Secretary
determines that a modification by an eligible State of
the State safety oversight program is not sufficient to
certify the program, the Secretary--
``(i) <> shall notify the
Governor of the eligible State of such denial of
certification and failure to adequately modify the
program, and shall request that the Governor take
all possible actions to correct deficiencies in
the program to ensure the certification of the
program; and
``(ii) may--
``(I) withhold funds available under
paragraph (6) in an amount determined by
the Secretary;
``(II) withhold not more than 5
percent of the amount required to be
appropriated for use in a State or
urbanized area in the State under
section 5307 of this title, until the
State safety oversight program has been
certified; or
``(III) require fixed guideway
public transportation systems under such
State safety oversight program to
provide up to 100 percent of Federal
assistance made available under this
chapter only for safety-related
improvements on such systems, until the
State safety oversight program has been
certified.
``(8) Evaluation of program and annual report.--The
Secretary shall continually evaluate the implementation of a
State safety oversight program by a State safety oversight
agency, and shall submit on or before July 1 of each year to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Transportation and Infrastructure of the
House of Representatives a report on--
``(A) the amount of funds apportioned to each
eligible State; and
``(B) the certification status of each State safety
oversight program, including what steps a State program
that has been denied certification must take in order to
be certified.
``(9) Federal oversight.--The Secretary shall--
``(A) oversee the implementation of each State
safety oversight program under this subsection;
``(B) <> audit the operations of each
State safety oversight agency at least once triennially;
and
``(C) <> issue rules to carry
out this subsection.

``(f) Authority of Secretary.--In carrying out this section, the
Secretary may--
``(1) conduct inspections, investigations, audits,
examinations, and testing of the equipment, facilities, rolling
stock, and operations of the public transportation system of a
recipient;

[[Page 715]]

``(2) make reports and issue directives with respect to the
safety of the public transportation system of a recipient;
``(3) <> in conjunction with an
accident investigation or an investigation into a pattern or
practice of conduct that negatively affects public safety, issue
a subpoena to, and take the deposition of, any employee of a
recipient or a State safety oversight agency, if--
``(A) before the issuance of the subpoena, the
Secretary requests a determination by the Attorney
General of the United States as to whether the subpoena
will interfere with an ongoing criminal investigation;
and
``(B) the Attorney General--
``(i) determines that the subpoena will not
interfere with an ongoing criminal investigation;
or
``(ii) <> fails to make a
determination under clause (i) before the date
that is 30 days after the date on which the
Secretary makes a request under subparagraph (A);
``(4) require the production of documents by, and prescribe
recordkeeping and reporting requirements for, a recipient or a
State safety oversight agency;
``(5) investigate public transportation accidents and
incidents and provide guidance to recipients regarding
prevention of accidents and incidents;
``(6) at reasonable times and in a reasonable manner, enter
and inspect equipment, facilities, rolling stock, operations,
and relevant records of the public transportation system of a
recipient; and
``(7) issue rules to carry out this section.

``(g) Enforcement Actions.--
``(1) Types of enforcement actions.--The Secretary may take
enforcement action against an eligible State, as defined in
subsection (e), that does not comply with Federal law with
respect to the safety of the public transportation system,
including--
``(A) issuing directives;
``(B) requiring more frequent oversight of the
recipient by a State safety oversight agency or the
Secretary;
``(C) imposing more frequent reporting requirements;
and
``(D) requiring that any Federal financial
assistance provided under this chapter be spent on
correcting safety deficiencies identified by the
Secretary or the State safety oversight agency before
such funds are spent on other projects.
``(2) Use or withholding of funds.--
``(A) In general.--The Secretary may require the use
of funds in accordance with paragraph (1)(D) only if the
Secretary finds that a recipient is engaged in a pattern
or practice of serious safety violations or has
otherwise refused to comply with Federal law relating to
the safety of the public transportation system.
``(B) Notice.--Before withholding funds from a
recipient, the Secretary shall provide to the
recipient--
``(i) written notice of a violation and the
amount proposed to be withheld; and

[[Page 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) <> Effective date.--This
subsection shall apply to any cause of action under State law
arising from an event or activity occurring on or after the date
of enactment of the Federal Public Transportation Act of 2012.
``(3) Jurisdiction.--Nothing in this section shall be
construed to create a cause of action under Federal law on
behalf of an injured party or confer Federal question
jurisdiction for a State law cause of action.

``(k) National Public Transportation Safety Report.--Not later than
3 years after the date of enactment of the Federal Public Transportation
Act of 2012, the Secretary shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House of Representatives a
report that--
``(1) analyzes public transportation safety trends among the
States and documents the most effective safety programs
implemented using grants under this section; and
``(2) describes the effect on public transportation safety
of activities carried out using grants under this section.''.

(b) Bus Safety Study.--
(1) Definition.--In this subsection, the term ``highway
route'' means a route where 50 percent or more of the route is
on roads having a speed limit of more than 45 miles per hour.
(2) <> Study.--Not later than 180
days after the date of enactment of this Act, the Secretary of
Transportation shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives a report that--

[[Page 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) <> 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 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) <> Data Accuracy and Reliability.--The
Secretary shall--
(1) develop and implement appropriate internal control
activities to ensure that public transportation safety incident
data is reported accurately and reliably by public
transportation systems and State safety oversight agencies to
the State Safety Oversight Rail Accident Database; and
(2) <> report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Transportation and Infrastructure of the House of
Representatives within 1 year of enactment of the Federal Public
Transportation Act of 2012 on the steps taken to improve the
accuracy and reliability of public transportation safety
incident data reported to the State Safety Oversight Rail
Accident Database.

[[Page 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 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 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) <> Date of Apportionment.--The Secretary
shall--
``(1) apportion amounts appropriated under section
5338(a)(2)(C) of this title to carry out section 5307 of this
title not later than the 10th day after the date the amounts are
appropriated or October 1 of the fiscal year for which the
amounts are appropriated, whichever is later; and
``(2) <> publish apportionments of the
amounts, including amounts attributable to each urbanized area
with a population of more than 50,000 and amounts attributable
to each State of a multistate urbanized area, on the
apportionment date.

``(e) Amounts Not Apportioned to Designated Recipients.--The
Governor of a State may expend in an urbanized area with a population of
less than 200,000 an amount apportioned under this section that is not
apportioned to a designated recipient, as defined in section 5302(4).
``(f) Transfers of Apportionments.--(1) The Governor of a State may
transfer any part of the State's apportionment under subsection (a)(1)
of this section to supplement amounts apportioned to the State under
section 5311(c)(3). <> The Governor may make a
transfer only after consulting with responsible local officials and

[[Page 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) <> The Governor of a State may use
throughout the State amounts of a State's apportionment remaining
available for obligation at the beginning of the 90-day period before
the period of the availability of the amounts expires.

``(4) A designated recipient for an urbanized area with a population
of at least 200,000 may transfer a part of its apportionment under this
section to the Governor of a State. The Governor shall distribute the
transferred amounts to urbanized areas under this section.
``(5) <> Capital and operating assistance
limitations applicable to the original apportionment apply to amounts
transferred under this subsection.

``(g) Period of Availability to Recipients.--An amount apportioned
under this section may be obligated by the recipient for 5 years after
the fiscal year in which the amount is apportioned. Not later than
30 <> days after the end of the 5-year period, an
amount that is not obligated at the end of that period shall be added to
the amount that may be apportioned under this section in the next fiscal
year.

``(h) Apportionments.--Of the amounts made available for each fiscal
year under section 5338(a)(2)(C)--
``(1) $30,000,000 shall be set aside to carry out section
5307(h);
``(2) 3.07 percent shall be apportioned to urbanized areas
in accordance with subsection (j);
``(3) of amounts not apportioned under paragraphs (1) and
(2), 1.5 percent shall be apportioned to urbanized areas with
populations of less than 200,000 in accordance with subsection
(i);
``(4) 0.5 percent shall be apportioned to eligible States
for State safety oversight program grants in accordance with
section 5329(e)(6); and
``(5) any amount not apportioned under paragraphs (1), (2),
(3), and (4) shall be apportioned to urbanized areas in
accordance with subsections (a) through (c).

``(i) Small Transit Intensive Cities Formula.--
``(1) Definitions.--In this subsection, the following
definitions apply:
``(A) Eligible area.--The term `eligible area' means
an urbanized area with a population of less than 200,000
that meets or exceeds in one or more performance
categories the industry average for all urbanized areas
with a population of at least 200,000 but not more than
999,999, as determined by the Secretary in accordance
with subsection (c)(2).
``(B) Performance category.--The term `performance
category' means each of the following:
``(i) Passenger miles traveled per vehicle
revenue mile.
``(ii) Passenger miles traveled per vehicle
revenue hour.

[[Page 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 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) <>  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 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) <> 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 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) <> 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 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 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) <> 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 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 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) <> Period of Availability to Recipients.--
Amounts made available under this section may be obligated by a
recipient for 3 years after the fiscal year in which the amount is
apportioned. Not later than 30 <> days after the end of
the 3-year period described in the preceding sentence, any amount that
is not obligated on the last day of that period shall be added to the
amount that may be apportioned under this section in the next fiscal
year.

``(h) Definitions.--For purposes of this section:
``(1) The term `State' means a State of the United States.
``(2) The term `territory' means the District of Columbia,
Puerto Rico, the Northern Mariana Islands, Guam, American Samoa,
and the United States Virgin Islands.''.
SEC. 20030. TECHNICAL AND CONFORMING AMENDMENTS.

(a) Section 5305.--Section 5305 of title 49, United States Code, is
amended--
(1) in subsection (e)(1)(A), by striking ``sections 5304,
5306, 5315, and 5322'' and inserting ``section 5304 and 5306'';
(2) in subsection (f)--
(A) in the heading, by striking ``Government's'' and
inserting ``Government''; and
(B) by striking ``Government's'' and inserting
``Government''; and
(3) in subsection (g), by striking ``section 5338(c) for
fiscal years 2005 through 2012'' and inserting ``section
5338(a)(2)(A) for a fiscal year''.

(b) Section 5313.--Section 5313(a) of title 49, United States Code,
is amended--
(1) in the first sentence, by striking ``subsections
(a)(5)(C)(iii) and (d)(1) of section 5338'' and inserting
section ``5338(c)''; and
(2) in the second sentence, by striking ``of
Transportation''.

(c) Section 5319.--Section 5319 of title 49, United States Code, is
amended, in the second sentence--
(1) by striking ``sections 5307(e), 5309(h), and 5311(g) of
this title'' and inserting ``sections 5307(d), 5309(l), and
5311(g)''; and
(2) by striking ``of the United States'' and inserting
``made by the''.

(d) Section 5325.--Section 5325(b)(2)(A) of title 49, United States
Code, is amended by striking ``title 48, Code of Federal Regulations
(commonly known as the Federal Acquisition Regulation)'' and inserting
``the Federal Acquisition Regulation, or any successor thereto''.

[[Page 731]]

(e) <> Section 5330.--Effective 3
years after the effective date of the final rules issued by the
Secretary of Transportation under section 5329(e) of title 49, United
States Code, as amended by this division, section 5330 of title 49,
United States Code, is repealed.

(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 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 <> --MOTOR VEHICLE AND HIGHWAY SAFETY IMPROVEMENT ACT OF 2012
SEC. 31001. <> SHORT TITLE.

This title may be cited as the ``Motor Vehicle and Highway Safety
Improvement Act of 2012'' or ``Mariah's Act''.
SEC. 31002. <> DEFINITION.

In this title, the term ``Secretary'' means the Secretary of
Transportation.

Subtitle A--Highway Safety

SEC. 31101. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--The following sums are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass Transit
Account):

[[Page 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) <> Prohibition on Other Uses.--Except as
otherwise provided in chapter 4 of title 23, United States Code, in this
subtitle, and in the amendments made by this subtitle, the amounts made
available from the Highway Trust Fund (other than the Mass Transit
Account) for a program under such chapter--
(1) shall only be used to carry out such program; and
(2) may not be used by States or local governments for
construction purposes.

(c) Applicability of Title 23.--Except as otherwise provided in
chapter 4 of title 23, United States Code, and in this subtitle, amounts
made available under subsection (a) for fiscal years 2013 and 2014 shall
be available for obligation in the same manner as if such funds were
apportioned under chapter 1 of title 23, United States Code.
(d) <> Regulatory Authority.--Grants
awarded under this subtitle shall be in accordance with regulations
issued by the Secretary.

(e) State Matching Requirements.--If a grant awarded under this
subtitle requires a State to share in the cost, the aggregate of all
expenditures for highway safety activities made during any fiscal year
by the State and its political subdivisions (exclusive of Federal funds)
for carrying out the grant (other than planning and administration)
shall be available for the purpose of crediting the State during such
fiscal year for the non-Federal share of the cost of any project under
this subtitle (other than planning or administration) without regard to
whether such expenditures were actually made in connection with such
project.
(f) Grant Application and Deadline.--To receive a grant under this
subtitle, a State shall submit an application, and the Secretary shall
establish a single deadline for such applications to enable the award of
grants early in the next fiscal year.

[[Page 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) <> 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 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) <> 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 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 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) <> Performance measures.--For the
first highway safety plan submitted under this subsection, the
performance measures required by the Secretary under paragraph
(2)(A) shall be limited to those developed by the National
Highway Traffic Safety Administration and the Governor's Highway
Safety Association and described in the report, `Traffic Safety
Performance Measures for States and Federal Agencies' (DOT HS
811 025). For subsequent highway safety plans, the Secretary
shall coordinate with the Governor's Highway Safety Association
in making revisions to the set of required performance measures.
``(5) Review of highway safety plans.--
``(A) <> In general.--Not later
than 60 days after the date on which a State's highway
safety plan is received by the Secretary, the Secretary
shall review and approve or disapprove the plan.
``(B) <> Approvals and
disapprovals.--
``(i) Approvals.--The Secretary shall approve
a State's highway safety plan if the Secretary
determines that--
``(I) the plan and the performance
targets contained in the plan are
evidence-based and supported by data;
and
``(II) the plan, once implemented,
will allow the State to meet the State's
performance targets.
``(ii) Disapprovals.--The Secretary shall
disapprove a State's highway safety plan if the
Secretary determines that--
``(I) the plan and the performance
targets contained in the plan are not
evidence-based or supported by data; or
``(II) the plan does not provide for
programming of funding in a manner
sufficient to allow the State to meet
the State's performance targets.
``(C) Actions upon disapproval.--If the Secretary
disapproves a State's highway safety plan, the Secretary
shall--
``(i) <> inform the State
of the reasons for such disapproval; and

[[Page 738]]

``(ii) require the State to resubmit the plan
with any modifications that the Secretary
determines to be necessary.
``(D) <> Review of resubmitted
plans.--If the Secretary requires a State to resubmit a
highway safety plan, with modifications, the Secretary
shall review and approve or disapprove the modified plan
not later than 30 days after the date on which the
Secretary receives such plan.
``(E) Public notice.--A State shall make the State's
highway safety plan, and decisions of the Secretary
concerning approval or disapproval of a revised plan,
available to the public.''.

(g) Teen Traffic Safety Program.--Section 402 of title 23, United
States Code, as amended by this section, is further amended by adding at
the end the following:
``(m) Teen Traffic Safety.--
``(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 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 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 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 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 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) <> 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 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 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 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) <> has certified to the
Secretary that an assessment of the State's highway
safety data and traffic records system was conducted or
updated during the preceding 5 years.
``(4) Use of grant amounts.--Grant funds received by a State
under this subsection shall be used for making data program
improvements to core highway safety databases related to
quantifiable, measurable progress in any of the 6 significant
data program attributes set forth in paragraph (3)(D).
``(5) Grant amount.--The allocation of grant funds to a
State under this subsection for a fiscal year shall be in
proportion to the State's apportionment under section 402 for
fiscal year 2009.

``(d) Impaired Driving Countermeasures.--
``(1) <> In general.--Subject to the
requirements under this subsection, the Secretary of
Transportation shall award grants to States that adopt and
implement--
``(A) effective programs to reduce driving under the
influence of alcohol, drugs, or the combination of
alcohol and drugs; or
``(B) alcohol-ignition interlock laws.
``(2) Federal share.--The Federal share of the costs of
activities funded using amounts from grants under this
subsection may not exceed 80 percent in any fiscal year in which
the State receives a grant.
``(3) <> Eligibility.--
``(A) Low-range states.--Low-range States shall be
eligible for a grant under this subsection.
``(B) Mid-range states.--A mid-range State shall be
eligible for a grant under this subsection if--
``(i) a statewide impaired driving task force
in the State developed a statewide plan during the
most recent 3 calendar years to address the
problem of impaired driving; or
``(ii) the State will convene a statewide
impaired driving task force to develop such a plan
during the first year of the grant.
``(C) High-range states.--A high-range State shall
be eligible for a grant under this subsection if the
State--
``(i)(I) conducted an assessment of the
State's impaired driving program during the most
recent 3 calendar years; or

[[Page 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 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 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 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 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 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 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 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) <> 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 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) <> 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 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) <> Purposes.--The purposes of the
Advisory Council are to advise and consult with--
``(A) the Federal Interagency Committee on Emergency
Medical Services on matters relating to emergency
medical services issues; and
``(B) the Secretary of Transportation on matters
relating to emergency medical services issues affecting
the Department of Transportation.
``(4) Administration.--The Administrator of the National
Highway Traffic Safety Administration shall provide
administrative support to the Advisory Council, including
scheduling meetings, setting agendas, keeping minutes and
records, and producing reports.
``(5) <> Leadership.--The members of the
Advisory Council shall annually select a chairperson of the
Advisory Council.
``(6) Meetings.--The Advisory Council shall meet as
frequently as is determined necessary by the chairperson of the
Advisory Council.
``(7) Annual reports.--The Advisory Council shall prepare an
annual report to the Secretary of Transportation regarding the
Advisory Council's actions and recommendations.''.
SEC. 31109. REPEAL OF PROGRAMS.

(a) <> General Provision.--A repeal made by
this section shall not affect amounts apportioned or allocated before
the effective date of such repeal, provided that such apportioned or
allocated funds continue to be subject to the requirements to which such
funds were subject under the repealed section as in effect on the day
before the date of the repeal.

(b) Safety Belt Performance Grants.--Section 406 of title 23, United
States Code, and the item relating to section 406 in the analysis for
chapter 4 of title 23, United States Code, are repealed.
(c) Innovative Project Grants.--Section 407 of title 23, United
States Code, and the item relating to section 407 in the analysis for
chapter 4, are repealed.
(d) State Traffic Safety Information System Improvements.--Section
408 of title 23, United States Code, and the item relating to section
408 in the analysis for chapter 4, are repealed.

[[Page 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) <> , 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 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) <> Civil
Penalty Criteria.--Not later than 1 year after the date of enactment of
this Act, the Secretary shall issue a final rule, in accordance with the
procedures of section 553 of title 5, United States Code, which provides
an interpretation of the penalty factors described in section 30165(c)
of title 49, United States Code.

(c) <> Effective Date.--The amendments
made by subsection (a) shall take effect on the date that is the earlier
of the date on which final regulations are issued under subsection (b)
or 1 year after the date of enactment of this Act.
SEC. 31204. MOTOR VEHICLE SAFETY RESEARCH AND DEVELOPMENT.

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

[[Page 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. <> An expenditure of
more than $1,500,000 for planning, design, or construction may be made
only if 60 days

[[Page 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.--
<> 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 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) <> 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 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) <> 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 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) <> shall enter into a memorandum of
understanding with the Secretary of Homeland Security for
inspections and sampling of motor vehicle equipment being
offered for import to determine compliance with this chapter or
a regulation or order issued under this chapter.''.

Subtitle C--Transparency and Accountability

SEC. 31301. <> PUBLIC AVAILABILITY OF
RECALL INFORMATION.

(a) Vehicle Recall Information.-- <> Not later than
1 year after the date of enactment of this Act, the Secretary shall
require that motor vehicle safety recall information--
(1) <> be available to the public on the
Internet;
(2) be searchable by vehicle make and model and vehicle
identification number;
(3) be in a format that preserves consumer privacy; and
(4) includes information about each recall that has not been
completed for each vehicle.

(b) Rulemaking.--The Secretary may initiate a rulemaking proceeding
to require each manufacturer to provide the information described in
subsection (a), with respect to that manufacturer's motor vehicles, on a
publicly accessible Internet website. Any rules promulgated under this
subsection--
(1) shall limit the information that must be made available
under this section to include only those recalls issued not more
than 15 years prior to the date of enactment of this Act;
(2) may require information under paragraph (1) to be
provided to a dealer or an owner of a vehicle at no charge; and
(3) shall permit a manufacturer a reasonable period of time
after receiving information from a dealer with respect to a
vehicle to update the information about the vehicle on the
publicly accessible Internet website.

(c) Promotion of Public Awareness.--The Secretary, in consultation
with the heads of other relevant agencies, shall promote consumer
awareness of the information made available to the public pursuant to
this section.
SEC. 31302. <> NATIONAL HIGHWAY TRAFFIC
SAFETY ADMINISTRATION OUTREACH TO
MANUFACTURER, DEALER, AND MECHANIC
PERSONNEL.

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

[[Page 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) <> 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 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) <> 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 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) <> Complaint Procedure.--
``(1) Filing and notification.--A person who believes that
he or she has been discharged or otherwise discriminated against
by any person in violation of subsection (a) may file (or have
any person file on his or her behalf), not later than 180 days
after the date on which such violation occurs, a complaint with
the Secretary of Labor (hereinafter in this section referred to
as the `Secretary') alleging such discharge or discrimination.
Upon receipt of such a complaint, the Secretary shall notify, in
writing, the person named in the complaint of the filing of the
complaint, of the allegations contained in the complaint, of the
substance of evidence supporting the complaint, and of the
opportunities that will be afforded to such person under
paragraph (2).
``(2) Investigation; preliminary order.--
``(A) In general.--Not later than 60
days <>  after the date of receipt
of a complaint filed under paragraph (1) and after
affording the person named in the complaint an
opportunity to submit to the Secretary a written
response to the complaint and an opportunity to meet
with a representative of the Secretary to present
statements from witnesses, the Secretary shall conduct
an investigation and determine whether there is
reasonable cause to believe that the complaint has merit
and notify, in writing, the complainant and the person
alleged to have committed a violation of subsection (a)
of the Secretary's findings. If the Secretary concludes
that there is a reasonable cause to believe that a
violation of subsection (a) has occurred, the Secretary
shall accompany the Secretary's findings with a
preliminary order providing the relief prescribed by
paragraph (3)(B). Not later than 30 days after the date
of notification of findings under this paragraph, either
the person alleged to have committed the violation or
the complainant may file objections to the findings or
preliminary order, or both, and request a hearing on the
record. The filing of such objections shall not operate
to

[[Page 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 <>  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 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) <> De novo review.--With
respect to a complaint under paragraph (1), if the
Secretary has not issued a final decision within 210
days after the filing of the complaint and if the delay
is not due to the bad faith of the employee, the
employee may bring an original action at law or equity
for de novo review in the appropriate district court of
the United States, which shall have jurisdiction over
such an action without regard to the amount in
controversy, and which action shall, at the request of
either party to the action, be tried by the court with a
jury. The action shall be governed by the same legal
burdens of proof specified in paragraph (2)(B) for
review by the Secretary.
``(4) Review.--
``(A) Appeal to court of appeals.--Any person
adversely affected or aggrieved by an order issued under
paragraph (3) may obtain review of the order in the
United States Court of Appeals for the circuit in which
the violation, with respect to which the order was
issued, allegedly occurred or the circuit in which the
complainant resided on the date of such
violation. <> The petition for review
shall be filed not later than 60 days after the date of
the issuance of the final order of the Secretary. Review
shall conform to chapter 7 of title 5. The commencement
of proceedings under this subparagraph shall not, unless
ordered by the court, operate as a stay of the order.
``(B) Limitation on collateral attack.--An order of
the Secretary with respect to which review could have
been obtained under subparagraph (A) shall not be
subject to judicial review in any criminal or other
civil proceeding.
``(5) Enforcement of order by secretary.--Whenever any
person fails to comply with an order issued under paragraph (3),
the Secretary may file a civil action in the United States
district court for the district in which the violation was found
to occur to enforce such order. In actions brought under this
paragraph, the district courts shall have jurisdiction to grant
all appropriate relief, including injunctive relief and
compensatory damages.
``(6) Enforcement of order by parties.--
``(A) Commencement of action.--A person on whose
behalf an order was issued under paragraph (3) may
commence a civil action against the person to whom such
order was issued to require compliance with such order.

[[Page 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) <> conduct a study of the whistleblower
protections established by law with respect to this program, and
update its study of other such programs administered by the
Secretary of Transportation; and
(2) submit to Congress a report of the results of the study
under paragraph (1), including--
(A) an identification of the differences between the
provisions applicable to different programs, the number
of claims brought pursuant to each provision, and the
outcome of each claim; and
(B) any recommendations for program changes that the
Comptroller General considers appropriate based on the
study under paragraph (1).

(c) Conforming Amendment.--The table of sections for chapter 301 of
title 49, United States Code, is amended by inserting after the item
relating to section 30170 the following:

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

SEC. 31308. ANTI-REVOLVING DOOR.

(a) Study of Department of Transportation Policies on Official
Communication With Former Motor Vehicle Safety Issue Employees.--
<> Not later than 1 year after the date of enactment of
this Act, the Inspector General of the Department of Transportation
shall--
(1) <> review the Department of
Transportation's policies and procedures applicable to official
communication with former employees concerning motor vehicle
safety compliance matters for which they had responsibility
during the last 12 months of their tenure at the Department,
including any limitations on the ability of such employees to
submit comments, or otherwise communicate directly with the
Department, on motor vehicle safety issues; and
(2) <> submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and the
Committee on Energy and Commerce of the House of Representatives
that contains

[[Page 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) <> Post-Employment Policy Study.--
(1) In general.--The Inspector General of the Department of
Transportation shall conduct a study of the Department's
policies relating to post-employment restrictions on employees
who perform functions related to transportation safety.
(2) Report.--Not later than 1 year after the date of
enactment of this Act, the Inspector General shall submit a
report containing the results of the study conducted under
paragraph (1) to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate;
(B) the Committee on Energy and Commerce of the
House of Representatives; and
(C) the Secretary of Transportation.
(3) <> Use of results.--The Secretary of
Transportation shall review the results of the study conducted
under paragraph (1) and take whatever action the Secretary
determines to be appropriate.
SEC. 31309. STUDY OF CRASH DATA COLLECTION.

(a) <> In General.--Not later than 1 year
after the date of enactment of this Act, the Secretary shall submit a
report to the Committee on Commerce, Science, and Transportation of the
Senate and the Committee on Energy and Commerce of the House of
Representatives regarding the quality of data collected through the
National Automotive Sampling System, including the Special Crash
Investigations Program.

(b) Review.--The Administrator of the National Highway Traffic
Safety Administration (referred to in this section as the
``Administration'') shall conduct a comprehensive review of the data
elements collected from each crash to determine if additional data
should be collected. The review under this subsection shall include
input from interested parties, including suppliers, automakers, safety
advocates, the medical community, and research organizations.
(c) Contents.--The report issued under this section shall include--
(1) the analysis and conclusions the Administration can
reach from the amount of motor vehicle crash data collected in a
given year;
(2) the additional analysis and conclusions the
Administration could reach if more crash investigations were
conducted each year;
(3) the number of investigations per year that would allow
for optimal data analysis and crash information;
(4) the results of the comprehensive review conducted
pursuant to subsection (b);
(5) the incremental costs of collecting and analyzing
additional data, as well as data from additional crashes;
(6) the potential for obtaining private funding for all or a
portion of the costs under paragraph (5);

[[Page 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 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. <> 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. <> NATIONAL HIGHWAY TRAFFIC
SAFETY ADMINISTRATION ELECTRONICS,
SOFTWARE, AND ENGINEERING EXPERTISE.

(a) <> Council for Vehicle Electronics,
Vehicle Software, and Emerging Technologies.--

[[Page 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) <> In General.--Not later than 2 years after
the date of enactment of this Act, the Secretary shall complete an
examination of the need for safety standards with regard to electronic
systems in passenger motor vehicles. In conducting this examination, the
Secretary shall--
(1) consider the electronic components, the interaction of
electronic components, the security needs for those electronic
systems to prevent unauthorized access, and the effect of
surrounding environments on the electronic systems; and
(2) allow for public comment.

(b) Report.--Upon completion of the examination under subsection
(a), the Secretary shall submit a report on the highest priority areas
for safety with regard to the electronic systems to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee on
Energy and Commerce of the House of Representatives.

Subtitle E--Child Safety Standards

SEC. <> 31501. CHILD SAFETY SEATS.

(a) <> Side Impact Crashes.--Not later
than 2 years after the date of enactment of this Act, the Secretary
shall issue a final

[[Page 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) <> Frontal Impact Test Parameters.--
(1) Commencement.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall commence a rulemaking
proceeding to amend the standard seat assembly specifications
under Federal Motor Vehicle Safety Standard Number 213 to better
simulate a single representative motor vehicle rear seat.
(2) Final rule.--Not later than 4 years after the date of
enactment of this Act, the Secretary shall issue a final rule
pursuant to paragraph (1).
SEC. 31502. <> CHILD
RESTRAINT ANCHORAGE SYSTEMS.

(a) Initiation of Rulemaking Proceeding.--Not later than 1 year
after the date of enactment of this Act, the Secretary shall initiate a
rulemaking proceeding to amend Federal Motor Vehicle Safety Standard
Number 225 (relating to child restraint anchorage systems) to improve
the ease of use for lower anchorages and tethers in all rear seat
seating positions if such anchorages and tethers are feasible.
(b) Final Rule.--
(1) In general.--Except as provided under paragraph (2) and
section 31505, the Secretary shall issue a final rule under
subsection (a) not later than 3 years after the date of
enactment of this Act.
(2) Report.--If the Secretary determines that an amendment
to the standard referred to in subsection (a) does not meet the
requirements and considerations set forth in subsections (a) and
(b) of section 30111 of title 49, United States Code, the
Secretary shall submit a report describing the reasons for not
prescribing such a standard to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Energy and Commerce of the
House of Representatives.
SEC. 31503. <> REAR SEAT BELT
REMINDERS.

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

[[Page 775]]

(B) the Committee on Energy and Commerce of the
House of Representatives.
SEC. 31504. <> UNATTENDED PASSENGER
REMINDERS.

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

(c) Coordination With Other Agencies.--The Secretary may collaborate
with other Federal agencies in conducting the research under this
section.
SEC. 31505. <> NEW DEADLINE.

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

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

SEC. 31601. <> RULEMAKING ON VISIBILITY
OF AGRICULTURAL EQUIPMENT.

(a) Definitions.--In this section:
(1) Agricultural equipment.--The term ``agricultural
equipment'' has the meaning given the term ``agricultural field
equipment'' in ASABE Standard 390.4, entitled ``Definitions and
Classifications of Agricultural Field Equipment'', which was
published in January 2005 by the American Society of Agriculture
and Biological Engineers, or any successor standard.
(2) Public road.--The term ``public road'' has the meaning
given the term in section 101(a)(27) of title 23, United States
Code.

(b) Rulemaking.--
(1) <> In general.--Not later than 2 years
after the date of enactment of this Act, the Secretary of
Transportation, after consultation with representatives of the
American Society of Agricultural and Biological Engineers and
appropriate Federal agencies, and with other appropriate
persons, shall promulgate a rule to improve the daytime and
nighttime visibility of agricultural equipment that may be
operated on a public road.
(2) Minimum standards.--The rule promulgated pursuant to
this subsection shall--

[[Page 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) <> 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-- <> COMMERCIAL MOTOR VEHICLE SAFETY ENHANCEMENT ACT OF 2012
SEC. 32001. <> SHORT TITLE.

This title may be cited as the ``Commercial Motor Vehicle Safety
Enhancement Act of 2012''.
SEC. 32002. REFERENCES TO TITLE 49, UNITED STATES CODE.

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

[[Page 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) <> Written Proficiency Examination.--
Not <> later than 18 months after the date
of enactment of this Act, the Secretary shall establish through
a rulemaking a written proficiency examination for applicant
motor carriers pursuant to section 13902(a)(1)(D) of title 49,
United States Code. The written proficiency examination shall
test a person's knowledge of applicable safety regulations,
standards, and orders of the Federal government.

(c) Conforming Amendment.--Section 210(b) of the Motor Carrier
Safety Improvement Act of 1999 (49 U.S.C. 31144 note) is amended--
(1) by inserting ``, commercial regulations, and provisions
of subpart H of part 37 of title 49, Code of Federal
Regulations,

[[Page 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) <> Safety review.--
``(A) In general.--Except as provided under
subparagraph (B), the Secretary shall require, by
regulation, each owner and each operator granted new
registration under section 13902 or 31134 to undergo a
safety review not later than 12 months after the owner
or operator, as the case may be, begins operations under
such registration.
``(B) Providers of motorcoach services.--The
Secretary shall require, by regulation, each owner and
each operator granted new registration to transport
passengers under section 13902 or 31134 to undergo a
safety review not later than 120 days after the owner or
operator, as the case may be, begins operations under
such registration.''.

(b) <> Effective Date.--The amendments
made by subsection (a) shall take effect 1 year after the date of
enactment of this Act.
SEC. 32103. REINCARNATED CARRIERS.

(a) Effective Periods of Registration.--
(1) Suspensions, amendments, and revocations.--Section
13905(d) is amended--
(A) by redesignating paragraph (2) as paragraph (4);
(B) by striking paragraph (1) and inserting the
following:
``(1) Applications.--On application of the registrant, the
Secretary may amend or revoke a registration.

[[Page 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 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. <> FINANCIAL RESPONSIBILITY
REQUIREMENTS.

Not <> later than 6 months after the date
of enactment of this Act, and every 4 years thereafter, the Secretary
shall--
(1) issue a report on the appropriateness of--
(A) the current minimum financial responsibility
requirements under sections 31138 and 31139 of title 49,
United States Code; and
(B) the current bond and insurance requirements
under sections 13904(f), 13903, and 13906 of title 49,
United States Code; and
(2) submit the report issued under paragraph (1) to the
Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Transportation and Infrastructure of the
House of Representatives.
SEC. 32105. USDOT NUMBER REGISTRATION REQUIREMENT.

(a) In General.--Chapter 311 is amended by inserting after section
31133 the following:
``Sec. 31134. Requirement for registration and USDOT number

``(a) In General.--Upon application, and subject to subsections (b)
and (c), the Secretary shall register an employer or person subject to
the safety jurisdiction of this subchapter. An employer or person may
operate a commercial motor vehicle in interstate commerce only if the
employer or person is registered by the Secretary under this section and
receives a USDOT number. Nothing in this section shall preclude
registration by the Secretary of an employer or person not engaged in
interstate commerce. An employer or person subject to jurisdiction under
subchapter I of chapter 135 of this title shall apply for commercial
registration under section 13902 of this title.
``(b) Withholding Registration.--The Secretary shall register an
employer or person under subsection (a) only if the Secretary determines
that--
``(1) the employer or person seeking registration is willing
and able to comply with the requirements of this subchapter and
the regulations prescribed thereunder and chapter 51 and the
regulations prescribed thereunder;
``(2)(A) <> during the 3-year period
before the date of the filing of the application, the employer
or person is not or was not related through common ownership,
common management, common control, or common familial
relationship to any other person or applicant for registration
subject to this subchapter who, during such 3-year period, is or
was unfit,

[[Page 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.--
<> The Secretary shall revoke the registration of
an employer or person issued under subsection (a) after notice and an
opportunity for a proceeding, or suspend the registration after giving
notice of the suspension to the employer or person, if the Secretary
determines that--
``(1) the employer's or person's authority to operate
pursuant to chapter 139 of this title is subject to revocation
or suspension under sections 13905(d)(1) or 13905(f) of this
title;
``(2) the employer or person has knowingly failed to comply
with the requirements listed in subsection (b)(1);
``(3) the employer or person has not disclosed any
relationship through common ownership, common management, common
control, or common familial relationship to any other person or
applicant for registration subject to this subchapter that the
Secretary determines is or was unfit, unwilling, or unable to
comply with the requirements listed in subsection (b)(1);
``(4) the employer or person refused to submit to the safety
review required by section 31144(g) of this title.

``(d) <> Periodic Registration Update.--The
Secretary may require an employer to update a registration under this
section not later than 30 days after a change in the employer's address,
other contact information, officers, process agent, or other essential
information, as determined by the Secretary.

``(e) State Authority.--Nothing in this section shall be construed
as affecting the authority of a State to issue a Department of
Transportation number under State law to a person operating in
intrastate commerce.''.
(b) Conforming Amendment.--The analysis of chapter 311 is amended by
inserting after the item relating to section 31133 the following:

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

SEC. 32106. REGISTRATION FEE SYSTEM.

Section 13908(d)(1) is amended by striking ``but shall not exceed
$300''.
SEC. 32107. REGISTRATION UPDATE.

(a) Motor Carrier Update.--Section 13902 is amended by adding at the
end the following:
``(h) <> Update of Registration.--
``(1) In general.--The Secretary shall require a registrant
to update its registration under this section not later than 30
days after a change in the registrant's address, other contact
information, officers, process agent, or other essential
information, as determined by the Secretary.
``(2) Motor carriers of passengers.--In addition to the
requirements of paragraph (1), the Secretary shall require a

[[Page 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) <> Update of Registration.--The Secretary
shall require a freight forwarder to update its registration under this
section not later than 30 days after a change in the freight forwarder's
address, other contact information, officers, process agent, or other
essential information, as determined by the Secretary.''.

(c) Broker Update.--Section 13904 is amended by adding at the end
the following:
``(e) <> Update of Registration.--The Secretary
shall require a broker to update its registration under this section not
later than 30 days after a change in the broker's address, other contact
information, officers, process agent, or other essential information, as
determined by the Secretary.''.
SEC. 32108. INCREASED PENALTIES FOR OPERATING WITHOUT
REGISTRATION.

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

(b) Transportation of Hazardous Wastes.--Section 14901(b) is amended
by striking ``not to exceed $20,000'' and inserting ``not less than
$20,000, but not to exceed $40,000''.
SEC. 32109. REVOCATION OF REGISTRATION FOR IMMINENT HAZARD.

Section 13905(f)(2) is amended to read as follows:
``(2) Imminent hazard to public health.--Notwithstanding
subchapter II of chapter 5 of title 5, the Secretary shall
revoke the registration of a motor carrier if the Secretary
finds that the carrier is or was conducting unsafe operations
that are or were an imminent hazard to public health or
property.''.
SEC. 32110. REVOCATION OF REGISTRATION AND OTHER PENALTIES FOR
FAILURE TO RESPOND TO SUBPOENA.

Section 525 is amended--
(1) by striking ``subpenas'' in the section heading and
inserting ``subpoenas'';
(2) by striking ``subpena'' and inserting ``subpoena'';
(3) by striking ``$100'' and inserting ``$1,000'';
(4) by striking ``$5,000'' and inserting ``$10,000''; and
(5) by adding at the end the following:

``The Secretary may withhold, suspend, amend, or revoke any part of
the registration of a person required to register under chapter 139 for
failing to obey a subpoena or requirement of the

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

(b) General Authority.--Section 31137 is amended--
(1) by amending the section heading to read as follows:
``Sec. 31137. Electronic logging devices and brake maintenance
regulations'';
(2) by redesignating subsection (b) as subsection (g); and
(3) by amending (a) to read as follows:

``(a) Use of Electronic Logging Devices.-- <> Not
later than 1 year after the date of enactment of the Commercial Motor
Vehicle Safety Enhancement Act of 2012, the Secretary of Transportation
shall prescribe regulations--

[[Page 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) <> 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 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) <> Deadline for Establishment of
National Registry of Medical Examiners.--Not later than 1 year after the
date of

[[Page 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) <> not later than 1 year
after enactment of the Commercial Motor Vehicle Safety
Enhancement Act of 2012, develop requirements for a
medical examiner to be listed in the national registry
under this section, including--
``(i) the completion of specific courses and
materials;
``(ii) <> certification,
including, at a minimum, self-certification, if
the Secretary determines that self-certification
is necessary for sufficient participation in the
national registry, to verify that a medical
examiner completed specific training, including
refresher courses, that the Secretary determines
necessary to be listed in the national registry;
``(iii) an examination that requires a passing
grade; and
``(iv) demonstration of a medical examiner's
willingness to meet the reporting requirements
established by the Secretary;''.

(c) Additional Oversight of Licensing Authorities.--
(1) In general.--Section 31149(c)(1) is amended--
(A) by amending subparagraph (E) to read as follows:
``(E) require medical examiners to transmit
electronically, on a monthly basis, the name of the
applicant, a numerical identifier, and additional
information contained on the medical examiner's
certificate for any completed medical examination report
required under section 391.43 of title 49, Code of
Federal Regulations, to the chief medical examiner;'';
(B) in subparagraph (F), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(G) <> annually review
the implementation of commercial driver's license
requirements by not fewer than 10 States to assess the
accuracy, validity, and timeliness of--
``(i) the submission of physical examination
reports and medical certificates to State
licensing agencies; and
``(ii) the processing of the submissions by
State licensing agencies.''.
(2) Internal oversight policy.--
(A) <> In
general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall establish an
oversight policy and procedure to carry out section
31149(c)(1)(G) of title 49, United States Code, as added
by section 32302(c)(1) of this Act.
(B) <> Effective date.--
The amendments made by section 32303(c)(1) of this Act
shall take effect on the date the oversight policies and
procedures are established pursuant to subparagraph (A).

[[Page 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) <> Not later than 5 years
after the date of enactment of the Commercial Motor Vehicle
Safety Enhancement Act of 2012, the State shall establish and
maintain, as part of its driver information system, the
capability to receive an electronic copy of a medical examiner's
certificate, from a certified medical examiner, for each holder
of a commercial driver's license issued by the State who
operates or intends to operate in interstate commerce.''.

(e) Funding.--The Secretary is authorized to utilize funds provided
under section 4101(c)(1) of SAFETEA-LU (119 Stat. 1715) to support
development of costs of the information technology needed to carry out
section 31311(a)(25) of title 49, United States Code.
SEC. 32303. COMMERCIAL DRIVER'S LICENSE NOTIFICATION SYSTEM.

(a) In General.--Section 31304 is amended--
(1) by striking ``An employer'' and inserting the following:

``(a) In General.--An employer''; and
(2) by adding at the end the following:

``(b) Driver Violation Records.--
``(1) Periodic review.--Except as provided in paragraph (3),
an employer shall ascertain the driving record of each driver it
employs--
``(A) by making an inquiry at least once every 12
months to the appropriate State agency in which the
driver held or holds a commercial driver's license or
permit during such time period;
``(B) by receiving occurrence-based reports of
changes in the status of a driver's record from 1 or
more driver record notification systems that meet
minimum standards issued by the Secretary; or
``(C) by a combination of inquiries to States and
reports from driver record notification systems.
``(2) Record keeping.--A copy of the reports received under
paragraph (1) shall be maintained in the driver's qualification
file.
``(3) <> Exceptions to record review
requirement.--Paragraph (1) shall not apply to a driver employed
by an employer who, in any 7-day period, is employed or used as
a driver by more than 1 employer--
``(A) if the employer obtains the driver's
identification number, type, and issuing State of the
driver's commercial motor vehicle license; or
``(B) if the information described in subparagraph
(A) is furnished by another employer and the employer
that regularly employs the driver meets the other
requirements under this section.
``(4) Driver record notification system defined.--In this
section, the term `driver record notification system' means a
system that automatically furnishes an employer with a report,
generated by the appropriate agency of a State, on the change in
the status of an employee's driver's license due to a conviction
for a moving violation, a failure to appear,

[[Page 791]]

an accident, driver's license suspension, driver's license
revocation, or any other action taken against the driving
privilege.''.

(b) <> Standards for Driver
Record Notification Systems.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall issue minimum standards for
driver notification systems, including standards for the accuracy,
consistency, and completeness of the information provided.

(c) <> Plan for National Notification System.--
(1) <> Development.--Not later
than 2 years after the date of enactment of this Act, the
Secretary shall develop recommendations and a plan for the
development and implementation of a national driver record
notification system, including--
(A) an assessment of the merits of achieving a
national system by expanding the Commercial Driver's
License Information System; and
(B) an estimate of the fees that an employer will be
charged to offset the operating costs of the national
system.
(2) <> Submission to congress.--Not later
than 90 days after the recommendations and plan are developed
under paragraph (1), the Secretary shall submit a report on the
recommendations and plan to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives.
SEC. 32304. COMMERCIAL MOTOR VEHICLE OPERATOR TRAINING.

(a) In General.--Section 31305 is amended by adding at the end the
following:
``(c) <> Standards for Training.--Not
later than 1 year after the date of enactment of the Commercial Motor
Vehicle Safety Enhancement Act of 2012, the Secretary shall issue final
regulations establishing minimum entry-level training requirements for
an individual operating a commercial motor vehicle--
``(1) addressing the knowledge and skills that--
``(A) are necessary for an individual operating a
commercial motor vehicle to safely operate a commercial
motor vehicle; and
``(B) must be acquired before obtaining a commercial
driver's license for the first time or upgrading from
one class of commercial driver's license to another
class;
``(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 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) <> In general.--The plan shall
specify--
``(i) a date by which all States shall be
operating commercial driver's license information
systems that are compatible with the modernized
information system under this section; and
``(ii) that States must use the systems to
receive and submit conviction and disqualification
data.''; and
(2) in subsection (f), by striking ``use'' and inserting
``use, subject to section 31313(a),''.

(b) Requirements for State Participation.--Section 31311 is
amended--
(1) in subsection (a), as amended by section 32203(b) of
this Act--
(A) <> in paragraph
(5), by striking ``At least'' and all that follows
through ``regulation),'' and inserting: ``Not later than
the time period prescribed by the Secretary by
regulation,''; and
(B) by adding at the end the following:
``(23) <> Not later than 1 year
after the date of enactment of the Commercial Motor Vehicle
Safety Enhancement Act of 2012, the State shall implement a
system and practices for the exclusive electronic exchange of
driver history record information on the system the Secretary
maintains under section 31309, including the posting of
convictions, withdrawals, and disqualifications.
``(24) <> Before renewing or issuing a
commercial driver's license to an individual, the State shall
request information pertaining to the individual from the drug
and alcohol clearinghouse maintained under section 31306a.'';
and
(2) by adding at the end the following:

``(d) State Commercial Driver's License Program Plan.--
``(1) <> In general.--A State shall
submit a plan to the Secretary for complying with the
requirements under this section during the period beginning on
the date the plan is submitted and ending on September 30, 2016.

[[Page 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) <> review each plan submitted
under paragraph (1);
``(B)(i) <> approve a plan if
the Secretary determines that the plan meets the
requirements under this subsection and promotes the
goals of this chapter; and
``(ii) disapprove a plan that the Secretary
determines does not meet the requirements or does not
promote the goals.
``(5) Modification of disapproved plans.--If the Secretary
disapproves a plan under paragraph (4), the Secretary shall--
``(A) <> provide a written
explanation of the disapproval to the State; and
``(B) allow the State to modify the plan and
resubmit it for approval.
``(6) Plan updates.--The Secretary may require a State to
review and update a plan, as appropriate.

``(e) Annual Comparison of State Levels of Compliance.--The
Secretary shall annually--
``(1) compare the relative levels of compliance by States
with the requirements under subsection (a); and
``(2) <> make the results of the
comparison available to the public.''.
SEC. 32306. COMMERCIAL MOTOR VEHICLE DRIVER INFORMATION SYSTEMS.

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

[[Page 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. <> PROGRAM TO ASSIST
VETERANS TO ACQUIRE COMMERCIAL
DRIVER'S LICENSES.

(a) Study.--
(1) <> In general.--Not later than 90 days
after the date of enactment of this Act, the Secretary, in
coordination with the Secretary of Defense, and in consultation
with the States and other relevant stakeholders, shall commence
a study to assess Federal and State regulatory, economic, and
administrative challenges faced by members and former members of
the Armed Forces, who received safety training and operated
qualifying motor vehicles during their service, in obtaining
commercial driver's licenses (as defined in section 31301(3) of
title 49, United States Code).
(2) Requirements.--The study under this subsection shall--
(A) identify written and behind-the-wheel safety
training, qualification standards, knowledge and skills
tests, or other operating experience members of the
Armed Forces must meet that satisfy the minimum
standards prescribed by the Secretary of Transportation
for the operation of commercial motor vehicles under
section 31305 of title 49, United States Code;
(B) compare the alcohol and controlled substances
testing requirements for members of the Armed Forces
with those required for holders of a commercial driver's
license;
(C) evaluate the cause of delays in reviewing
applications for commercial driver's licenses of members
and former members of the Armed Forces;
(D) identify duplicative application costs;
(E) identify residency, domicile, training and
testing requirements, and other safety or health
assessments that affect or delay the issuance of
commercial driver's licenses to members and former
members of the Armed Forces; and
(F) include other factors that the Secretary
determines to be appropriate to meet the requirements of
the study.

(b) Report.--
(1) In general.--Not later than 180 days after the
commencement of the study under subsection (a), the Secretary
shall submit a report to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Financial
Services of the House of Representatives that contains the
findings and recommendations from the study.
(2) Elements.--The report under paragraph (1) shall
include--
(A) findings related to the study requirements under
subsection (a)(2);

[[Page 795]]

(B) <> recommendations for
the Federal and State legislative, regulatory, and
administrative actions necessary to address challenges
identified in subparagraph (A); and
(C) <> a plan to implement the
recommendations for which the Secretary has authority.

(c) <> Implementation.--Not later than
1 year after the date of enactment of this Act, the Secretary, in
consultation with the Secretary of Defense and in cooperation with the
States, shall implement the recommendations identified in subsection (b)
and establish accelerated licensing procedures to assist veterans to
acquire commercial driver's licenses.

(d) Accelerated Licensing Procedures.-- <> The
procedures established under subsection (a) shall be designed to be
applicable to any veteran who--
(1) is attempting to acquire a commercial driver's license;
and
(2) obtained, during military service, documented driving
experience that, in the determination of the Secretary, makes
the use of accelerated licensing procedures appropriate.

(e) Definitions.--In this section:
(1) Commercial driver's license.--The term ``commercial
driver's license'' has the meaning given that term in section
31301 of title 49, United States Code.
(2) State.--The term ``State'' has the meaning given that
term in section 31301 of title 49, United States Code.
(3) Veteran.--The term ``veteran'' has the meaning given
that term in section 101 of title 38, United States Code.

Subtitle D-- <> Safe Roads Act of 2012
SEC. 32401. <> SHORT TITLE.

This subtitle may be cited as the ``Safe Roads Act of 2012''.
SEC. 32402. NATIONAL CLEARINGHOUSE FOR CONTROLLED SUBSTANCE AND
ALCOHOL TEST RESULTS OF COMMERCIAL
MOTOR VEHICLE OPERATORS.

(a) In General.--Chapter 313 is amended--
(1) in section 31306(a), by inserting ``and section 31306a''
after ``this section''; and
(2) by inserting after section 31306 the following:
``Sec. 31306a. <> National clearinghouse for
controlled substance and alcohol test
results of commercial motor vehicle
operators

``(a) Establishment.--
``(1) <> In general.--Not later than 2
years after the date of enactment of the Safe Roads Act of 2012,
the Secretary of Transportation shall establish, operate, and
maintain a national clearinghouse for records relating to
alcohol and controlled substances testing of commercial motor
vehicle operators.
``(2) Purposes.--The purposes of the clearinghouse shall
be--
``(A) to improve compliance with the Department of
Transportation's alcohol and controlled substances
testing program applicable to commercial motor vehicle
operators; and

[[Page 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.--
<> In establishing the clearinghouse, the
Secretary shall develop a secure

[[Page 797]]

method for electronically notifying an employer of each
additional positive test result or other noncompliance--
``(A) <> for an employee, that
is entered into the clearinghouse during the 7-day
period immediately following an employer's inquiry about
the employee; and
``(B) for an employee who is listed as having
multiple employers.
``(4) Archive capability.--In establishing the
clearinghouse, the Secretary shall develop a process for
archiving all clearinghouse records for the purposes of auditing
and evaluating the timeliness, accuracy, and completeness of
data in the clearinghouse.
``(5) Future needs.--
``(A) Interoperability with other data systems.--In
establishing the clearinghouse, the Secretary shall
consider--
``(i) the existing data systems containing
regulatory and safety data for commercial motor
vehicle operators;
``(ii) the efficacy of using or combining
clearinghouse data with 1 or more of such systems;
and
``(iii) the potential interoperability of the
clearinghouse with such systems.
``(B) <> Specific
considerations.--In carrying out subparagraph (A), the
Secretary shall determine--
``(i) the clearinghouse's capability for
interoperability with--
``(I) the National Driver Register
established under section 30302;
``(II) the Commercial Driver's
License Information System established
under section 31309;
``(III) the Motor Carrier Management
Information System for preemployment
screening services under section 31150;
and
``(IV) other data systems, as
appropriate; and
``(ii) any change to the administration of the
current testing program, such as forms, that is
necessary to collect data for the clearinghouse.

``(c) Standard Formats.--The Secretary shall develop standard
formats to be used--
``(1) by an authorized user of the clearinghouse to--
``(A) request a record from the clearinghouse; and
``(B) obtain the consent of an individual who is the
subject of a request from the clearinghouse, if
applicable; and
``(2) <> to notify an individual that a
positive alcohol or controlled substances test result, refusing
to test, and a violation of any of the prohibitions under
subpart B of part 382 of title 49, Code of Federal Regulations
(or any subsequent corresponding regulations), will be reported
to the clearinghouse.

``(d) Privacy.--A release of information from the clearinghouse
shall--
``(1) comply with applicable Federal privacy laws, including
the fair information practices under the Privacy Act of 1974 (5
U.S.C. 552a);
``(2) comply with applicable sections of the Fair Credit
Reporting Act (15 U.S.C. 1681 et seq.); and

[[Page 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.--
<> Each employer and service agent shall
continue to comply with the alcohol and controlled substances
testing requirements under title 49, Code of Federal
Regulations.
``(3) Employment prohibitions.--After the clearinghouse is
established under subsection (a), at a date determined to be
appropriate by the Secretary and published in the Federal
Register, an employer shall utilize the clearinghouse to
determine whether any employment prohibitions exist and shall
not hire an individual to operate a commercial motor vehicle
unless the employer determines that the individual, during the
preceding 3-year period--
``(A) if tested for the use of alcohol and
controlled substances, as required under title 49, Code
of Federal Regulations--
``(i) did not test positive for the use of
alcohol or controlled substances in violation of
the regulations; or
``(ii) tested positive for the use of alcohol
or controlled substances and completed the
required return-to-duty process under title 49,
Code of Federal Regulations;
``(B)(i) did not refuse to take an alcohol or
controlled substance test under title 49, Code of
Federal Regulations; or
``(ii) refused to take an alcohol or controlled
substance test and completed the required return-to-duty
process under title 49, Code of Federal Regulations; and
``(C) did not violate any other provision of subpart
B of part 382 of title 49, Code of Federal Regulations
(or any subsequent corresponding regulations).
``(4) <> Annual
review.--After the clearinghouse is established under subsection
(a), at a date determined to be appropriate by the Secretary and
published in the Federal Register, an employer shall request and
review a commercial motor vehicle operator's record from the
clearinghouse annually for

[[Page 799]]

as long as the commercial motor vehicle operator is under the
employ of the employer.

``(g) Reporting of Records.--
``(1) <> In general.--Beginning 30
days after the date that the clearinghouse is established under
subsection (a), a medical review officer, employer, service
agent, and other appropriate person, as determined by the
Secretary, shall promptly submit to the Secretary any record
generated after the clearinghouse is initiated of an individual
who--
``(A) refuses to take an alcohol or controlled
substances test required under title 49, Code of Federal
Regulations;
``(B) tests positive for alcohol or a controlled
substance in violation of the regulations; or
``(C) violates any other provision of subpart B of
part 382 of title 49, Code of Federal Regulations (or
any subsequent corresponding regulations).
``(2) Inclusion of records in clearinghouse.--The Secretary
shall include in the clearinghouse the records of positive test
results and test refusals received under paragraph (1).
``(3) Modifications and deletions.--If the Secretary
determines that a record contained in the clearinghouse is not
accurate, the Secretary shall modify or delete the record, as
appropriate.
``(4) Notification.--The Secretary shall expeditiously
notify an individual, unless such notification would be
duplicative, when--
``(A) a record relating to the individual is
received by the clearinghouse;
``(B) a record in the clearinghouse relating to the
individual is modified or deleted, and include in the
notification the reason for the modification or
deletion; or
``(C) a record in the clearinghouse relating to the
individual is released to an employer and specify the
reason for the release.
``(5) Data quality and security standards for reporting and
releasing.--The Secretary may establish additional requirements,
as appropriate, to ensure that--
``(A) the submission of records to the clearinghouse
is timely and accurate;
``(B) the release of data from the clearinghouse is
timely, accurate, and released to the appropriate
authorized user under this section; and
``(C) an individual with a record in the
clearinghouse has a cause of action for any
inappropriate use of information included in the
clearinghouse.
``(6) <> Retention of records.--The
Secretary shall--
``(A) retain a record submitted to the clearinghouse
for a 5-year period beginning on the date the record is
submitted;
``(B) remove the record from the clearinghouse at
the end of the 5-year period, unless the individual
fails to meet a return-to-duty or follow-up requirement
under title 49, Code of Federal Regulations; and
``(C) retain a record after the end of the 5-year
period in a separate location for archiving and auditing
purposes.

``(h) Authorized Users.--

[[Page 800]]

``(1) Employers.-- <> The Secretary shall
establish a process for an employer, or an employer's designated
agent, to request and receive an individual's record from the
clearinghouse.
``(A) Consent.--An employer may not access an
individual's record from the clearinghouse unless the
employer--
``(i) obtains the prior written or electronic
consent of the individual for access to the
record; and
``(ii) submits proof of the individual's
consent to the Secretary.
``(B) Access to records.--After receiving a request
from an employer for an individual's record under
subparagraph (A), the Secretary shall grant access to
the individual's record to the employer as expeditiously
as practicable.
``(C) <> Retention of record
requests.--The Secretary shall require an employer to
retain for a 3-year period--
``(i) a record of each request made by the
employer for records from the clearinghouse; and
``(ii) the information received pursuant to
the request.
``(D) Use of records.--An employer may use an
individual's record received from the clearinghouse only
to assess and evaluate whether a prohibition applies
with respect to the individual to operate a commercial
motor vehicle for the employer.
``(E) Protection of privacy of individuals.--An
employer that receives an individual's record from the
clearinghouse under subparagraph (B) shall--
``(i) protect the privacy of the individual
and the confidentiality of the record; and
``(ii) ensure that information contained in
the record is not divulged to a person or entity
that is not directly involved in assessing and
evaluating whether a prohibition applies with
respect to the individual to operate a commercial
motor vehicle for the employer.
``(2) <> State licensing authorities.--
The Secretary shall establish a process for the chief commercial
driver's licensing official of a State to request and receive an
individual's record from the clearinghouse if the individual is
applying for a commercial driver's license from the State.
``(A) Consent.--The Secretary may grant access to an
individual's record in the clearinghouse under this
paragraph without the prior written or electronic
consent of the individual. An individual who holds a
commercial driver's license shall be deemed to consent
to such access by obtaining a commercial driver's
license.
``(B) Protection of privacy of individuals.--A chief
commercial driver's licensing official of a State that
receives an individual's record from the clearinghouse
under this paragraph shall--
``(i) protect the privacy of the individual
and the confidentiality of the record; and
``(ii) ensure that the information in the
record is not divulged to any person that is not
directly involved in assessing and evaluating the
qualifications of the individual to operate a
commercial motor vehicle.

[[Page 801]]

``(i) National Transportation Safety Board.--
<> The Secretary shall establish a process for the
National Transportation Safety Board to request and receive an
individual's record from the clearinghouse if the individual is involved
in an accident that is under investigation by the National
Transportation Safety Board.

``(j) Access to Clearinghouse by Individuals.--
``(1) <> In general.--The Secretary shall
establish a process for an individual to request and receive
information from the clearinghouse--
``(A) to determine whether the clearinghouse
contains a record pertaining to the individual;
``(B) to verify the accuracy of a record;
``(C) to update an individual's record, including
completing the return-to-duty process described in title
49, Code of Federal Regulations; and
``(D) to determine whether the clearinghouse
received requests for the individual's information.
``(2) <> Dispute procedure.--The
Secretary shall establish a procedure, including an appeal
process, for an individual to dispute and remedy an
administrative error in the individual's record.

``(k) Penalties.--
``(1) In general.--An employer, employee, medical review
officer, or service agent who violates any provision of this
section shall be subject to civil penalties under section
521(b)(2)(C) and criminal penalties under section 521(b)(6)(B),
and any other applicable civil and criminal penalties, as
determined by the Secretary.
``(2) Violation of privacy.--The Secretary shall establish
civil and criminal penalties, consistent with paragraph (1), for
an authorized user who violates paragraph (1) or (2) of
subsection (h).

``(l) Compatibility of State and Local Laws.--
``(1) Preemption.--Except as provided under paragraph (2),
any law, regulation, order, or other requirement of a State,
political subdivision of a State, or Indian tribe related to a
commercial driver's license holder subject to alcohol or
controlled substance testing under title 49, Code of Federal
Regulations, that is inconsistent with this section or a
regulation issued pursuant to this section is preempted.
``(2) Applicability.--The preemption under paragraph (1)
shall include--
``(A) the reporting of valid positive results from
alcohol screening tests and drug tests;
``(B) the refusal to provide a specimen for an
alcohol screening test or drug test; and
``(C) other violations of subpart B of part 382 of
title 49, Code of Federal Regulations (or any subsequent
corresponding regulations).
``(3) Exception.--A law, regulation, order, or other
requirement of a State, political subdivision of a State, or
Indian tribe shall not be preempted under this subsection to the
extent it relates to an action taken with respect to a
commercial motor vehicle operator's commercial driver's license
or driving record as a result of the driver's--
``(A) verified positive alcohol or drug test result;
``(B) refusal to provide a specimen for the test; or

[[Page 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 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 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) <> The
Secretary's designee or an authorized State
official carrying out motor carrier safety
enforcement activities under section 31102, shall
immediately notify the owner of a commercial motor
vehicle of the impoundment and the opportunity for
review of the impoundment. <> A
review shall be provided in accordance with
section 554 of title 5, except that the review
shall occur not later than 10 days after the
impoundment.
``(B) Issuance of regulations.--The Secretary shall
promulgate regulations on the use of impoundment or
immobilization of commercial motor vehicles as a means
of enforcing additional out-of-service orders issued
under chapters 5, 51, 131 through 149, 311, 313, or 315
of this title, or a regulation promulgated thereunder.
Regulations promulgated under this subparagraph shall
include consideration of public safety, the protection
of passengers and cargo, inconvenience to passengers,
and the security of the commercial motor vehicle.
``(C) Definition.--In this paragraph, the term
`impoundment' or 'impounding' means the seizing and
taking into custody of a commercial motor vehicle or the
immobilizing of a commercial motor vehicle through the
attachment of a locking device or other mechanical or
electronic means.''.
SEC. 32505. INCREASED PENALTIES FOR EVASION OF REGULATIONS.

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

(b) Evasion of Regulation.--Section 14906 is amended--
(1) by striking ``$200'' and inserting ``at least $2,000'';
(2) by striking ``$250'' and inserting ``$5,000''; and
(3) by inserting after ``a subsequent violation'' the
following:

``, and may be subject to criminal penalties''.
SEC. 32506. VIOLATIONS RELATING TO COMMERCIAL MOTOR VEHICLE SAFETY
REGULATION AND OPERATORS.

Section 521(b)(2)(D) is amended by striking ``ability to pay,''.
SEC. 32507. EMERGENCY DISQUALIFICATION FOR IMMINENT HAZARD.

Section 31310(f) is amended--

[[Page 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 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) <> 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) <> 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 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 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) <> is amended to read as follows:

``(e) Funding.--From amounts made available under section 31104(i)
of title 49, United States Code, the Secretary shall make available
$4,000,000 to the Federal Motor Carrier Safety Administration for each
of fiscal years 2013 and 2014 to carry out this section (other than
subsection (f)).''.
(g) Grant Program for Commercial Motor Vehicle Operators.--
<> Section 4134(c) of SAFETEA-LU (49 U.S.C. 31301
note) is amended by striking ``2011 and $750,000 for the period
beginning on October 1, 2011, and ending on June 30, 2012,'' and
inserting ``2014''.

(h) Border Enforcement Grants.--Section 31107 is amended--
(1) by striking subsection (b); and
(2) redesignating subsections (c) and (d) as subsections (b)
and (c), respectively.

(i) <> Administration of Grant Programs.--
The Secretary is authorized to identify and implement processes to
reduce the administrative burden on the States and the Department of
Transportation concerning the application and management of the grant
programs authorized under chapter 311 and chapter 313 of title 49,
United States Code.
SEC. 32604. GRANTS FOR COMMERCIAL DRIVER'S LICENSE PROGRAM
IMPLEMENTATION.

(a) Grants for Commercial Driver's License Program Implementation.--
Section 31313(a) is amended to read as follows:
``(a) Commercial Driver's License Program Improvement Grants.--
``(1) Program goal.--The Secretary of Transportation may
make a grant to a State in a fiscal year--
``(A) to comply with the requirements of section
31311;
``(B) in the case of a State that is making a good
faith effort toward substantial compliance with the
requirements of this section and section 31311, to
improve its implementation of its commercial driver's
license program, including expenses--
``(i) for computer hardware and software;
``(ii) for publications, testing, personnel,
training, and quality control;
``(iii) for commercial driver's license
program coordinators;

[[Page 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 <> 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 <> otorcoach Enhanced Safety Act of 2012
SEC. 32701. <> SHORT TITLE.

This subtitle may be cited as the ``Motorcoach Enhanced Safety Act
of 2012''.
SEC. 32702. <> DEFINITIONS.

In this subtitle:
(1) Advanced glazing.--The term ``advanced glazing'' means
glazing installed in a portal on the side or the roof of a
motorcoach that is designed to be highly resistant to partial or
complete occupant ejection in all types of motor vehicle
crashes.
(2) Bus.--The term ``bus'' has the meaning given the term in
section 571.3(b) of title 49, Code of Federal Regulations (as in
effect on the day before the date of enactment of this Act).
(3) Commercial motor vehicle.--Except as otherwise
specified, the term ``commercial motor vehicle'' has the meaning
given the term in section 31132(1) of title 49, United States
Code.
(4) Direct tire pressure monitoring system.--The term
``direct tire pressure monitoring system'' means a tire pressure
monitoring system that is capable of directly detecting when the
air pressure level in any tire is significantly under-inflated

[[Page 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. <> 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 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) <> Anti-ejection safety
countermeasures.--The Secretary shall consider requiring
advanced glazing standards for each motorcoach portal and shall
consider other portal improvements to prevent partial and
complete ejection of motorcoach passengers, including children.
In prescribing such standards, the Secretary shall consider the
impact of such standards on the use of motorcoach portals as a
means of emergency egress.
(3) Rollover crash avoidance.--The Secretary shall consider
requiring motorcoaches to be equipped with stability enhancing
technology, such as electronic stability control and torque
vectoring, to reduce the number and frequency of rollover
crashes among motorcoaches.

(c) Commercial Motor Vehicle Tire Pressure Monitoring Systems.--
<> Not later than 3 years after the date of enactment
of this Act, the Secretary shall prescribe the following commercial
vehicle regulation:
(1) In general.--The Secretary shall consider requiring
motorcoaches to be equipped with direct tire pressure monitoring
systems that warn the operator of a commercial motor vehicle
when any tire exhibits a level of air pressure that is below a
specified level of air pressure established by the Secretary, if
the Secretary determines that such standards meet the
requirements and considerations set forth in subsections (a) and
(b) of section 30111 of title 49, United States Code.
(2) Performance requirements.--In any standard adopted under
paragraph (1), the Secretary shall include performance
requirements to meet the objectives identified in paragraph (1)
of this subsection.

(d) <> Tire Performance Standard.--Not later than 3
years after the date of enactment of this Act, the Secretary shall
consider--
(1) issuing a rule to upgrade performance standards for
tires used on motorcoaches, including an enhanced endurance test
and a new high-speed performance test; or
(2) <> if the Secretary determines that a
standard does not meet the requirements and considerations set
forth in subsections (a) and (b) of section 30111 of title 49,
United States Code, submit a report that describes the reasons
for not prescribing such a standard to--
(A) the Committee on Commerce, Science, and
Transportation of the Senate;
(B) the Committee on Transportation and
Infrastructure of the House of Representatives; and
(C) the Committee on Energy and Commerce of the
House of Representatives.

(e) Application of Regulations.--
(1) New motorcoaches.--Any regulation prescribed in
accordance with subsection (a), (b), (c), or (d) shall--
(A) apply to all motorcoaches manufactured more than
3 years after the date on which the regulation is
published as a final rule;

[[Page 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. <> FIRE PREVENTION AND
MITIGATION.

(a) Research and Testing.--The Secretary shall conduct research and
testing to determine the most prevalent causes of motorcoach fires and
the best methods to prevent such fires and to mitigate the effect of
such fires, both inside and outside the motorcoach. Such research and
testing shall consider flammability of exterior components, smoke
suppression, prevention of and resistance to wheel well fires, automatic
fire suppression, passenger evacuation, causation and prevention of
motorcoach fires, and improved fire extinguishers.
(b) <> Standards.--Not later than 3 years after the
date of enactment of this Act, the Secretary may issue fire prevention
and mitigation standards for motorcoaches, based on the results of the
Secretary's research and testing, taking into account highway size and
weight restrictions applicable to motorcoaches, if the Secretary
determines that such standards meet the requirements and considerations
set forth in subsections (a) and (b) of section 30111 of title 49,
United States Code.
SEC. 32705. <> OCCUPANT PROTECTION,
COLLISION AVOIDANCE, FIRE CAUSATION,
AND FIRE EXTINGUISHER RESEARCH AND
TESTING.

(a) <> Safety Research Initiatives.--Not later
than 3 years after the date of enactment of this Act, the Secretary
shall complete the following research and testing:
(1) Interior impact protection.--The Secretary shall
research and test enhanced occupant impact protection
technologies for motorcoach interiors to reduce serious injuries
for all passengers of motorcoaches.
(2) Compartmentalization safety countermeasures.--The
Secretary shall research and test enhanced compartmentalization
safety countermeasures for motorcoaches, including enhanced
seating designs.
(3) Collision avoidance systems.--The Secretary shall
research and test forward and lateral crash warning systems
applications for motorcoaches.

(b) <> Rulemaking.--Not later than 2 years after
the completion of each research and testing initiative required under
subsection

[[Page 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. <> 32706. CONCURRENCE OF RESEARCH
AND RULEMAKING.

(a) Requirements.--To the extent feasible, the Secretary shall
ensure that research programs are carried out concurrently, and in a
manner that concurrently assesses results, potential countermeasures,
costs, and benefits.
(b) Authority to Combine Rulemakings.--When considering each of the
rulemaking provisions, the Secretary may initiate a single rulemaking
proceeding encompassing all aspects or may combine the rulemakings as
the Secretary deems appropriate.
(c) Considerations.--If the Secretary undertakes separate rulemaking
proceedings, the Secretary shall--
(1) consider whether each added aspect of rulemaking may
contribute to addressing the safety need determined to require
rulemaking;
(2) consider the benefits obtained through the safety belts
rulemaking in section 32703(a); and
(3) avoid duplicative benefits, costs, and countermeasures.
SEC. <> 32707. IMPROVED OVERSIGHT OF
MOTORCOACH SERVICE PROVIDERS.

(a) Safety Reviews.--Section 31144, as amended by section 32202 of
this Act, is amended by adding at the end the following:
``(i) Periodic Safety Reviews of Owners and Operators of Interstate
For-hire Commercial Motor Vehicles Designed or Used to Transport
Passengers.--
``(1) Safety review.--
``(A) In general.--The Secretary shall--
``(i) <> determine the
safety fitness of each motor carrier of passengers
who the Secretary registers under section 13902 or
31134 through a simple and understandable rating
system that allows passengers to compare the
safety performance of each such motor carrier; and
``(ii) assign a safety fitness rating to each
such motor carrier.
``(B) <> Applicability.--
Subparagraph (A) shall apply--
``(i) to any provider of motorcoach services
registered with the Administration after the date
of enactment of the Motorcoach Enhanced Safety Act
of 2012 beginning not later than 2 years after the
date of such registration; and
``(ii) to any provider of motorcoach services
registered with the Administration on or before
the date of enactment of that Act beginning not
later than 3 years after the date of enactment of
that Act.
``(2) <> Periodic review.--The Secretary
shall establish, by regulation, a process for monitoring the
safety performance of each motor carrier of passengers on a
regular basis following the assignment of a safety fitness
rating, including progressive intervention to correct unsafe
practices.
``(3) Enforcement strike forces.--In addition to the
enhanced monitoring and enforcement actions required under

[[Page 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) <> 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 815]]

SEC. 32708. <> REPORT ON FEASIBILITY,
BENEFITS, AND COSTS OF ESTABLISHING A
SYSTEM OF CERTIFICATION OF TRAINING
PROGRAMS.

Not later than 2 years after the date of enactment of this Act, the
Secretary of Transportation shall submit a report to the Committee on
Commerce, Science, and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of Representatives that
describes the feasibility, benefits, and costs of establishing a system
of certification of public and private schools and of motor carriers and
motorcoach operators that provide motorcoach driver training.
SEC. 32709. <> COMMERCIAL DRIVER'S
LICENSE PASSENGER ENDORSEMENT
REQUIREMENTS.

(a) <> In General.--Not later
than 2 years after the date of enactment of this Act, the Secretary of
Transportation shall review and assess the current knowledge and skill
testing requirements for a commercial driver's license passenger
endorsement to determine what improvements to the knowledge test, the
examination of driving skills, and the application of such requirements
are necessary to ensure the safe operation of commercial motor vehicles
designed or used to transport passengers.

(b) Report.--Not later than 120 days after completion of the review
and assessment under subsection (a), the Secretary of Transportation
shall submit to the Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate--
(1) a report on the review and assessment conducted under
subsection (a);
(2) a plan to implement any changes to the knowledge and
skills tests; and
(3) a timeframe by which the Secretary will implement the
changes.
SEC. 32710. <> SAFETY INSPECTION PROGRAM
FOR COMMERCIAL MOTOR VEHICLES OF
PASSENGERS.

Not later than <>  3 years after the
date of enactment of this Act, the Secretary of Transportation shall
complete a rulemaking proceeding to consider requiring States to
establish a program for annual inspections of commercial motor vehicles
designed or used to transport passengers, including an assessment of--
(1) the risks associated with improperly maintained or
inspected commercial motor vehicles designed or used to
transport passengers;
(2) the effectiveness of existing Federal standards for the
inspection of such vehicles in--
(A) mitigating the risks described in paragraph (1);
and
(B) ensuring the safe and proper operation condition
of such vehicles; and
(3) the costs and benefits of a mandatory inspection
program.
SEC. 32711. <> REGULATIONS.

Any standard or regulation prescribed or modified pursuant to the
Motorcoach Enhanced Safety Act of 2012 shall be prescribed or modified
in accordance with section 553 of title 5, United States Code.

[[Page 816]]

Subtitle H--Safe Highways and Infrastructure Preservation

SEC. 32801. COMPREHENSIVE TRUCK SIZE AND WEIGHT LIMITS STUDY.

(a) <> Truck Size and Weight Limits Study.--Not
later than 45 days after the date of enactment of this Act, the
Secretary, in consultation with each relevant State and other applicable
Federal agencies, shall commence a comprehensive truck size and weight
limits study. The study shall--
(1) provide data on accident frequency and evaluate factors
related to accident risk of vehicles that operate with size and
weight limits that are in excess of the Federal law and
regulations in each State that allows vehicles to operate with
size and weight limits that are in excess of the Federal law and
regulations, or to operate under a Federal exemption or
grandfather right, in comparison to vehicles that do not operate
in excess of Federal law and regulations (other than vehicles
with exemptions or grandfather rights);
(2) evaluate the impacts to the infrastructure in each State
that allows a vehicle to operate with size and weight limits
that are in excess of the Federal law and regulations, or to
operate under a Federal exemption or grandfather right, in
comparison to vehicles that do not operate in excess of Federal
law and regulations (other than vehicles with exemptions or
grandfather rights), including--
(A) the cost and benefits of the impacts in dollars;
(B) the percentage of trucks operating in excess of
the Federal size and weight limits; and
(C) the ability of each State to recover the cost
for the impacts, or the benefits incurred;
(3) evaluate the frequency of violations in excess of the
Federal size and weight law and regulations, the cost of the
enforcement of the law and regulations, and the effectiveness of
the enforcement methods;
(4) assess the impacts that vehicles that operate with size
and weight limits in excess of the Federal law and regulations,
or that operate under a Federal exemption or grandfather right,
in comparison to vehicles that do not operate in excess of
Federal law and regulations (other than vehicles with exemptions
or grandfather rights), have on bridges, including the impacts
resulting from the number of bridge loadings;
(5) compare and contrast the potential safety and
infrastructure impacts of the current Federal law and
regulations regarding truck size and weight limits in relation
to--
(A) six-axle and other alternative configurations of
tractor-trailers; and
(B) where available, safety records of foreign
nations with truck size and weight limits and tractor-
trailer configurations that differ from the Federal law
and regulations; and
(6) estimate--
(A) the extent to which freight would likely be
diverted from other surface transportation modes to
principal arterial routes and National Highway System
intermodal connectors if alternative truck configuration
is allowed to

[[Page 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) <> In General.--Not later than 90 days after
the date of enactment of this Act, the Secretary, in consultation with
the States, shall begin to compile <> --
(1) a list for each State, as applicable, that describes
each route of the National Highway System that allows a vehicle
to operate in excess of the Federal truck size and weight limits
that--
(A) was authorized under State law on or before the
date of enactment of this Act; and
(B) was in actual and lawful operation on a regular
or periodic basis (including seasonal operations) on or
before the date of enactment of this Act;
(2) a list for each State, as applicable, that describes--
(A) the size and weight limitations applicable to
each segment of the National Highway System in that
State as listed under paragraph (1);
(B) each combination that exceeds the Interstate
weight limit, but that the Department of Transportation,
other Federal agency, or a State agency has determined
on or before the date of enactment of this Act, could be
or could have been lawfully operated in the State; and
(C) each combination that exceeds the Interstate
weight limit, but that the Secretary determines could
have been lawfully operated on a non-Interstate segment
of the National Highway System in the State on or before
the date of enactment of this Act; and
(3) a list of each State law that designates or allows
designation of size and weight limitations in excess of Federal
law and regulations on routes of the National Highway System,
including nondivisible loads.

(b) Specifications.--The Secretary, in consultation with the States,
shall specify whether the determinations under paragraphs

[[Page 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) <> Exemption Standards.--Section 31315(b)(4)
is amended--
(1) in subparagraph (A), by inserting ``(or, in the case of
a request for an exemption from the physical qualification
standards for commercial motor vehicle drivers, post on a web
site established by the Secretary to implement the requirements
of section 31149)'' after ``Federal Register'';
(2) by amending subparagraph (B) to read as follows:
``(B) Upon granting a request.-- <> Upon granting a request and
before the effective date of the exemption, the
Secretary shall publish in the Federal Register (or, in
the case of an exemption from the physical qualification
standards for commercial motor vehicle drivers, post on
a web site established by the Secretary to implement the
requirements of section 31149) the name of the person
granted the exemption, the provisions from which the
person is exempt, the effective period, and the terms
and conditions of the exemption.''; and
(3) in subparagraph (C), by inserting ``(or, in the case of
a request for an exemption from the physical qualification
standards for commercial motor vehicle drivers, post on a web
site established by the Secretary to implement the requirements
of section 31149)'' after ``Federal Register''.

(b) Providing Notice of Exemptions to State Personnel.--Section
31315(b)(7) is amended to read as follows:

[[Page 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. <> 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 820]]

(1) In general.--Chapter 139 is amended by adding at the end
the following:
``Sec. 13909. Availability of information

``The Secretary <> shall
make information relating to registration and financial security
required by this chapter publicly available on the Internet, including--
``(1) the names and business addresses of the principals of
each entity holding such registration;
``(2) the status of such registration; and
``(3) the electronic address of the entity's surety provider
for the submission of claims.''.
(2) Conforming amendment.--The analysis for chapter 139 is
amended by adding at the end the following:

``13909. Availability of information.''.

SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION REQUIREMENTS.

Section 13902, as amended by sections 32101 and 32107(a) of this
Act, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ``using self-
propelled vehicles the motor carrier owns, rents, or
leases'' after ``motor carrier''; and
(B) by adding at the end the following:
``(6) Separate registration required.--A motor carrier may
not broker transportation services unless the motor carrier has
registered as a broker under this chapter.''; and
(2) by inserting after subsection (h) the following:

``(i) Registration as Freight Forwarder or Broker Required.--A motor
carrier registered under this chapter--
``(1) may only provide transportation of property with--
``(A) self-propelled motor vehicles owned or leased
by the motor carrier; or
``(B) interchanges under regulations issued by the
Secretary if the originating carrier--
``(i) physically transports the cargo at some
point; and
``(ii) retains liability for the cargo and for
payment of interchanged carriers; and
``(2) may not arrange transportation described in paragraph
(1) unless the motor carrier has obtained a separate
registration as a freight forwarder or broker for transportation
under section 13903 or 13904, as applicable.''.
SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS.

(a) Registration of Freight Forwarders.--Section 13903, as amended
by section 32107(b) of this Act, is amended--
(1) in subsection (a)--
(A) by striking ``finds that the person is fit'' and
inserting the following: ``determines that the person--
``(1) has sufficient experience to qualify the person to act
as a freight forwarder; and
``(2) is fit''; and
(B) by striking ``and the Board'';
(2) by redesignating subsections (b) and (c) as subsections
(d) and (e), respectively;

[[Page 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 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) <>  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 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) <> respond to the claim
on or before the 30th day following the date on
which the notice was received; and
``(ii) in the case of a denial, set forth in
writing for the claimant the grounds for the
denial.
``(C) Costs and attorney's fees.--In any action
against a surety provider to recover on a claim
described in subparagraph (A), the prevailing party
shall be entitled to recover its reasonable costs and
attorney's fees.
``(3) Minimum financial security.--Each broker subject to
the requirements of this section shall provide financial
security of $75,000 for purposes of this subsection, regardless
of the number of branch offices or sales agents of the broker.
``(4) Cancellation notice.--If a financial security required
under this subsection is canceled--
``(A) <> the holder of the
financial security shall provide electronic notification
to the Secretary of the cancellation not later than 30
days before the effective date of the cancellation; and
``(B) <> the Secretary shall
immediately post such notification on the public
Internet Website of the Department of Transportation.
``(5) Suspension.--The Secretary shall immediately suspend
the registration of a broker issued under this chapter if the
available financial security of that person falls below the
amount required under this subsection.
``(6) Payment of claims in cases of financial failure or
insolvency.--If a broker registered under this chapter
experiences financial failure or insolvency, the surety provider
of the broker shall--
``(A) <> submit a notice to cancel the financial
security to the Administrator in accordance with
paragraph (4);
``(B) publicly advertise for claims for 60 days
beginning on the date of publication by the Secretary of
the notice to cancel the financial security; and
``(C) pay, <> not later than 30
days after the expiration of the 60-day period for
submission of claims--
``(i) all uncontested claims received during
such period; or
``(ii) a pro rata share of such claims if the
total amount of such claims exceeds the financial
security available.
``(7) Penalties.--
``(A) Civil actions.--Either the Secretary or the
Attorney General of the United States may bring a civil

[[Page 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 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) <>  Response of surety
providers to claims.--If a surety provider receives
notice of a claim described in subparagraph (A), the
surety provider shall--
``(i) <>  respond to the
claim on or before the 30th day following receipt
of the notice; and
``(ii) in the case of a denial, set forth in
writing for the claimant the grounds for the
denial.
``(C) Costs and attorney's fees.--In any action
against a surety provider to recover on a claim
described in subparagraph (A), the prevailing party
shall be entitled to recover its reasonable costs and
attorney's fees.
``(3) Freight forwarder insurance.--
``(A) In general.--The Secretary may register a
person as a freight forwarder under section 13903 only
if the person files with the Secretary a surety bond,
insurance policy, or other type of financial security
that meets standards prescribed by the Secretary.
``(B) Liability insurance.--A financial security
filed by a freight forwarder under subparagraph (A)
shall be sufficient to pay an amount, not to exceed the
amount of the financial security, for each final
judgment against the freight forwarder for bodily injury
to, or death of, an individual, or loss of, or damage
to, property (other than property referred to in
subparagraph (C)), resulting from the negligent
operation, maintenance, or use of motor vehicles by, or
under the direction and control of, the freight
forwarder while providing transfer, collection, or
delivery service under this part.
``(C) Cargo insurance.--The Secretary may require a
registered freight forwarder to file with the Secretary
a surety bond, insurance policy, or other type of
financial security approved by the Secretary, that will
pay an amount, not to exceed the amount of the financial
security, for loss of, or damage to, property for which
the freight forwarder provides service.
``(4) Minimum financial security.--Each freight forwarder
subject to the requirements of this section shall provide
financial security of $75,000, regardless of the number of
branch offices or sales agents of the freight forwarder.
``(5) Cancellation notice.--If a financial security required
under this subsection is canceled--
``(A) <>  the holder of the
financial security shall provide electronic notification
to the Secretary of the cancellation not later than 30
days before the effective date of the cancellation; and

[[Page 826]]

``(B) <>  the Secretary shall
immediately post such notification on the public
Internet web site of the Department of Transportation.
``(6) Suspension.--The Secretary shall immediately suspend
the registration of a freight forwarder issued under this
chapter if its available financial security falls below the
amount required under this subsection.
``(7) Payment of claims in cases of financial failure or
insolvency.--If a freight forwarder registered under this
chapter experiences financial failure or insolvency, the surety
provider of the freight forwarder shall--
``(A) <>  submit a notice to cancel
the financial security to the Administrator in
accordance with paragraph (5);
``(B) <>
publicly advertise for claims for 60 days beginning on
the date of publication by the Secretary of the notice
to cancel the financial security; and
``(C) <>  pay, not later than 30
days after the expiration of the 60-day period for
submission of claims--
``(i) all uncontested claims received during
such period; or
``(ii) a pro rata share of such claims if the
total amount of such claims exceeds the financial
security available.
``(8) Penalties.--
``(A) Civil actions.--Either the Secretary or the
Attorney General may bring a civil action in an
appropriate district court of the United States to
enforce the requirements of this subsection or a
regulation prescribed or order issued under this
subsection. The court may award appropriate relief,
including injunctive relief.
``(B) Civil penalties.--If the Secretary determines,
after notice and opportunity for a hearing, that a
surety provider of a freight forwarder registered under
this chapter has violated the requirements of this
subsection or a regulation prescribed under this
subsection, the surety provider shall be liable to the
United States for a civil penalty in an amount not to
exceed $10,000.
``(C) Eligibility.--If the Secretary determines,
after notice and opportunity for a hearing, that a
surety provider of a freight forwarder registered under
this chapter has violated the requirements of this
subsection or a regulation prescribed under this
subsection, the surety provider shall be ineligible to
provide freight forwarder financial security for 3 years
``(9) Deduction of costs prohibited.--The amount of the
financial security required under this subsection may not be
reduced by deducting attorney's fees or administrative costs.''.

(b) <>  Rulemaking.--Not later
than 1 year after the date of enactment of this Act, the Secretary shall
issue regulations to implement and enforce the requirements under
subsections (b) and (c) of section 13906 of title 49, United States
Code, as amended by subsection (a).

(c) <>  Effective Date.--The amendments
made by subsection (a) shall take effect on the date that is 1 year
after the date of enactment of this Act.

[[Page 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) <> 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 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.-- <> (A) In
addition to the requirements of this subsection, the Secretary
shall require, by regulation, each registered household goods
motor carrier to undergo a consumer protection standards review
not later than 18 months after the household goods motor carrier
begins operations under such authority.
``(B) Elements.--In the regulations issued pursuant
to subparagraph (A), the Secretary shall establish the
elements of the consumer protections standards review,
including basic management controls. In establishing the
elements, the Secretary shall consider the effects on
small businesses and shall consider establishing
alternate locations where such reviews may be conducted
for the convenience of small businesses.''.

(c) <> Effective Date.--The amendments
made by this section shall take effect 2 years after the date of
enactment of this Act.
SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSEHOLD GOODS.

(a) Injunctive Relief.--Section 14704(a)(1) is amended by striking
``and 14103'' and inserting ``, 14103, and 14915(c)''.
(b) Civil Penalties.--Section 14915(a)(1) is amended by adding at
the end the following:
``The United States may assign all or a portion of the civil penalty
to an aggrieved shipper. <> The Secretary of
Transportation shall establish criteria upon which such assignments
shall be made. The Secretary may order, after notice and an opportunity
for a proceeding, that a person found holding a household goods shipment
hostage return the goods to an aggrieved shipper.''.
SEC. 32923. SETTLEMENT AUTHORITY.

(a) Settlement of General Civil Penalties.--Section 14901 is amended
by adding at the end the following:
``(h) Settlement of Household Goods Civil Penalties.--Nothing in
this section shall be construed to prohibit the Secretary from accepting
partial payment of a civil penalty as part of a settlement agreement in
the public interest, or from holding imposition of any part of a civil
penalty in abeyance.''.
(b) Settlement of Household Goods Civil Penalties.--Section 14915(a)
is amended by adding at the end the following:
``(4) Settlement authority.--Nothing in this section shall
be construed as prohibiting the Secretary from accepting partial
payment of a civil penalty as part of a settlement agreement in
the public interest, or from holding imposition of any part of a
civil penalty in abeyance.''.

[[Page 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) <> 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 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. <> 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 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 832]]

(2) <> A listing of State regulations issued
and maintained in each State that are identical to the Federal
regulations that are subject to exemption in subsection (a).
(3) <> The Secretary shall report
the findings of the study to the appropriate committees of
Congress not later than 18 months after the date of enactment of
this Act.

(e) Construction.--Nothing in this section shall be construed as
authority for the Secretary of Transportation to prescribe regulations.

TITLE III-- <> HAZARDOUS MATERIALS TRANSPORTATION SAFETY
IMPROVEMENT ACT OF 2012
SEC. 33001. <> SHORT TITLE.

This title may be cited as the ``Hazardous Materials Transportation
Safety Improvement Act of 2012''.
SEC. 33002. <> DEFINITION.

In this title, the term ``Secretary'' means the Secretary of
Transportation.
SEC. 33003. REFERENCES TO TITLE 49, UNITED STATES CODE.

Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of title 49, United States Code.
SEC. 33004. TRAINING FOR EMERGENCY RESPONDERS.

(a) Training Curriculum.--Section 5115 is amended--
(1) in subsection (b)(1)(B), by striking ``basic'';
(2) in subsection (b)(2), by striking ``basic''; and
(3) in subsection (c), by striking ``basic''.

(b) Operations Level Training.--Section 5116 is amended--
(1) in subsection (b)(1), by adding at the end the
following: ``To the <> extent that a grant
is used to train emergency responders, the State or Indian tribe
shall provide written certification to the Secretary that the
emergency responders who receive training under the grant will
have the ability to protect nearby persons, property, and the
environment from the effects of accidents or incidents involving
the transportation of hazardous material in accordance with
existing regulations or National Fire Protection Association
standards for competence of responders to accidents and
incidents involving hazardous materials.'';
(2) in subsection (j)--
(A) in paragraph (1), by striking ``funds'' and all
that follows through ``fighting fires for'' and
inserting ``funds and through a competitive process,
make a grant or make grants to national nonprofit fire
service organizations for'';
(B) in paragraph (3)(A), by striking ``train'' and
inserting ``provide training, including portable
training, for'';
(C) in paragraph (4)--

[[Page 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) <> For the purposes of this
subsection, the term `portable training' means live, instructor-
led training provided by certified fire service instructors that
can be offered in any suitable setting, rather than specific
designated facilities. Under this training delivery model,
instructors travel to locations convenient to students and
utilize local facilities and resources.''; and
(3) in subsection (k)--
(A) by striking ``annually'' and inserting ``an
annual report'';
(B) by inserting ``the report'' after ``make
available'';
(C) by striking ``information'' and inserting ``.
The report submitted under this subsection shall include
information''; and
(D) by striking ``The report shall identify'' and
all that follows and inserting the following: ``The
report submitted under this subsection shall identify
the ultimate recipients of such grants and include--
``(A) a detailed accounting and description of each
grant expenditure by each grant recipient, including the
amount of, and purpose for, each expenditure;
``(B) the number of persons trained under the grant
program, by training level;
``(C) an evaluation of the efficacy of such planning
and training programs; and
``(D) any recommendations the Secretary may have for
improving such grant programs.''.
SEC. 33005. <>  PAPERLESS HAZARD
COMMUNICATIONS PILOT PROGRAM.

(a) In General.--The Secretary may conduct pilot projects to
evaluate the feasibility and effectiveness of using paperless hazard
communications systems. <> At least 1 of
the pilot projects under this section shall take place in a rural area.

(b) Requirements.--In conducting pilot projects under this section,
the Secretary--

[[Page 834]]

(1) may not waive the requirements under section 5110 of
title 49, United States Code; and
(2) <> shall consult with organizations
representing--
(A) fire services personnel;
(B) law enforcement and other appropriate
enforcement personnel;
(C) other emergency response providers;
(D) persons who offer hazardous material for
transportation;
(E) persons who transport hazardous material by air,
highway, rail, and water; and
(F) employees of persons who transport or offer for
transportation hazardous material by air, highway, rail,
and water.

(c) Report.--Not later than 2 years after the date of enactment of
this Act, the Secretary shall--
(1) prepare a report on the results of the pilot projects
carried out under this section, including--
(A) a detailed description of the pilot projects;
(B) an evaluation of each pilot project, including
an evaluation of the performance of each paperless
hazard communications system in such project;
(C) an assessment of the safety and security impact
of using paperless hazard communications systems,
including any impact on the public, emergency response,
law enforcement, and the conduct of inspections and
investigations;
(D) an analysis of the associated benefits and costs
of using the paperless hazard communications systems for
each mode of transportation; and
(E) a recommendation that incorporates the
information gathered in subparagraphs (A), (B), (C), and
(D) on whether paperless hazard communications systems
should be permanently incorporated into the Federal
hazardous material transportation safety program under
chapter 51 of title 49, United States Code; and
(2) submit a final report to the Committee on Commerce,
Science, and Transportation of the Senate and the Committee on
Transportation and Infrastructure of the House of
Representatives that contains the results of the pilot projects
carried out under this section, including the matters described
in paragraph (1).

(d) Paperless Hazard Communications System Defined.--In this
section, the term ``paperless hazard communications system'' means the
use of advanced communications methods, such as wireless communications
devices, to convey hazard information between all parties in the
transportation chain, including emergency responders and law enforcement
personnel. The format of communication may be equivalent to that used by
the carrier.
SEC. 33006. IMPROVING DATA COLLECTION, ANALYSIS, AND REPORTING.

(a) Assessment.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Secretary, in consultation with the
Commandant of the United States Coast Guard, as appropriate,
shall conduct an assessment to improve the collection,

[[Page 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 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. <> HAZARDOUS MATERIAL
ENFORCEMENT TRAINING.

(a) <> In General.--Not later than 18
months after the date of enactment of this Act, the Secretary shall
develop uniform performance standards for training hazardous material
inspectors and investigators on--
(1) how to collect, analyze, and publish findings from
inspections and investigations of accidents or incidents
involving the transportation of hazardous material; and
(2) how to identify noncompliance with regulations issued
under chapter 51 of title 49, United States Code, and take
appropriate enforcement action.

(b) Standards and Guidelines.--The Secretary may develop--
(1) guidelines for hazardous material inspector and
investigator qualifications;
(2) best practices and standards for hazardous material
inspector and investigator training programs; and
(3) standard protocols to coordinate investigation efforts
among Federal, State, and local jurisdictions on accidents or
incidents involving the transportation of hazardous material.

(c) Availability.--The standards, protocols, and guidelines
established under this section--
(1) shall be mandatory for--
(A) the Department of Transportation's multimodal
personnel conducting hazardous material enforcement
inspections or investigations; and
(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 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) <> Finalizing
regulations.--In accordance with section 5103(b)(2) of title 49,
United States Code, not later than 1 year after the date of
enactment of this Act, the Secretary shall take all actions
necessary to finalize a regulation under paragraph (1) of this
subsection.

(c) Grants and Cooperative Agreements.--Section 5121(g)(1) is
amended by inserting ``safety and'' before ``security''.
SEC. 33010. CIVIL PENALTIES.

Section 5123 is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``at least $250 but''; and
(ii) by striking ``$50,000'' and inserting
``$75,000'';
(B) in paragraph (2), by striking ``$100,000'' and
inserting ``$175,000''; and
(C) by amending paragraph (3) to read as follows:
``(3) If the violation is related to training, a person
described in paragraph (1) shall be liable for a civil penalty
of at least $450.''; and
(2) by adding at the end the following:

``(h) Penalty for Obstruction of Inspections and Investigations.--
``(1) The Secretary may impose a penalty on a person who
obstructs or prevents the Secretary from carrying out
inspections or investigations under subsection (c) or (i) of
section 5121.
``(2) <> For the purposes of this
subsection, the term `obstructs' means actions that were known,
or reasonably should have been known, to prevent, hinder, or
impede an investigation.

[[Page 838]]

``(i) Prohibition on Hazardous Material Operations After Nonpayment
of Penalties.--
``(1) <> In general.--Except as
provided under paragraph (2), a person subject to the
jurisdiction of the Secretary under this chapter who fails to
pay a civil penalty assessed under this chapter, or fails to
arrange and abide by an acceptable payment plan for such civil
penalty, may not conduct any activity regulated under this
chapter beginning on the 91st day after the date specified by
order of the Secretary for payment of such penalty unless the
person has filed a formal administrative or judicial appeal of
the penalty.
``(2) Exception.--Paragraph (1) shall not apply to any
person who is unable to pay a civil penalty because such person
is a debtor in a case under chapter 11 of title 11.
``(3) <> Rulemaking.--Not later than 2
years after the date of enactment of this subsection, the
Secretary, after providing notice and an opportunity for public
comment, shall issue regulations that--
``(A) <> set forth procedures to
require a person who is delinquent in paying civil
penalties to cease any activity regulated under this
chapter until payment has been made or an acceptable
payment plan has been arranged; and
``(B) ensures that the person described in
subparagraph (A)--
``(i) <> is notified in
writing; and
``(ii) is given an opportunity to respond
before the person is required to cease the
activity.''.
SEC. 33011. REPORTING OF FEES.

Section 5125(f)(2) is amended by striking ``, upon the Secretary's
request,'' and inserting ``biennially''.
SEC. 33012. SPECIAL PERMITS, APPROVALS, AND EXCLUSIONS.

(a) <> Rulemaking.--Not later
than 2 years after the date of enactment of this Act, the Secretary,
after providing notice and an opportunity for public comment, shall
issue regulations that establish--
(1) standard operating procedures to support administration
of the special permit and approval programs; and
(2) objective criteria to support the evaluation of special
permit and approval applications.

(b) Review of Special Permits.--
(1) <> Review.--Not later than 1 year
after the date of enactment of this Act, the Secretary shall
conduct a review and analysis of special permits that have been
in continuous effect for a 10-year period to determine which
special permits may be converted into the hazardous materials
regulations.
(2) Factors.--In conducting the review and analysis under
paragraph (1), the Secretary may consider--
(A) the safety record for hazardous materials
transported under the special permit;
(B) the application of a special permit;
(C) the suitability of provisions in the special
permit for incorporation into the hazardous materials
regulations; and
(D) rulemaking activity in related areas.
(3) <> Rulemaking.--After completing the
review and analysis under paragraph (1), but not later than 3
years after the

[[Page 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) <> In
general.--Not later than 1 year after the date on which a
special permit has been in continuous effect for a 10-year
period, the Secretary shall conduct a review and analysis of
that special permit to determine whether it may be converted
into the hazardous materials regulations.
``(2) Factors.--In conducting the review and analysis under
paragraph (1), the Secretary may consider--
``(A) the safety record for hazardous materials
transported under the special permit;
``(B) the application of a special permit;
``(C) the suitability of provisions in the special
permit for incorporation into the hazardous materials
regulations; and
``(D) rulemaking activity in related areas.
``(3) <> Rulemaking.--After completing the review and
analysis under paragraph (1) and after providing notice and
opportunity for public comment, the Secretary shall either
institute a rulemaking to incorporate the special permit into
the hazardous materials regulations or publish in the Federal
Register the Secretary's justification for why the special
permit is not appropriate for incorporation into the
regulations.''.
SEC. 33013. HIGHWAY ROUTING DISCLOSURES.

(a) List of Route Designations.--Section 5112(c) is amended--
(1) by striking ``In coordination'' and inserting the
following:
``(1) In general.--In coordination''; and
(2) by adding at the end the following:
``(2) State responsibilities.--
``(A) In general.--Each State shall submit to the
Secretary, in a form and manner to be determined by the
Secretary and in accordance with subparagraph (B)--
``(i) the name of the State agency responsible
for hazardous material highway route designations;
and
``(ii) a list of the State's currently
effective hazardous material highway route
designations.
``(B) Frequency.--Each State shall submit the
information described in subparagraph (A)(ii)--
``(i) <> at least once
every 2 years; and
``(ii) <> not later than 60
days after a hazardous material highway route
designation is established, amended, or
discontinued.''.

(b) Compliance With Section 5112.--Section 5125(c)(1) is amended by
inserting ``, and is published in the Department's hazardous materials
route registry under section 5112(c)'' before the period at the end.

[[Page 840]]

SEC. 33014. <> MOTOR CARRIER
SAFETY PERMITS.

(a) <> Review.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall conduct a study
of, and transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives a report on, the
implementation of the hazardous material safety permit program under
section 5109 of title 49, United States Code. In conducting the study,
the Secretary shall review, at a minimum--
(1) the list of hazardous materials requiring a safety
permit;
(2) the number of permits that have been issued, denied,
revoked, or suspended since inception of the program and the
number of commercial motor carriers that have never had a permit
denied, revoked, or suspended since inception of the program;
(3) the reasons for such denials, revocations, or
suspensions;
(4) the criteria used by the Federal Motor Carrier Safety
Administration to determine whether a hazardous material safety
permit issued by a State is equivalent to the Federal permit;
and
(5) actions the Secretary could implement to improve the
program, including whether to provide opportunities for an
additional level of fitness review prior to the denial,
revocation, or suspension of a safety permit.

(b) Actions Taken.--Not later than 2 years after the date of
enactment of this Act, based on the study conducted under subsection
(a), the Secretary shall either institute a rulemaking to make any
necessary improvements to the hazardous materials safety permit program
under section 5109 of title 49, United States Code or publish in the
Federal Register the Secretary's justification for why a rulemaking is
not necessary.
SEC. 33015. <> WETLINES.

(a) Evaluation.--Not later than 1 year after the date of enactment
of this Act, the United States Government Accountability Office shall
evaluate, and transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Transportation and
Infrastructure of the House of Representatives, a report on the safety
of transporting flammable liquids in the external product piping of
cargo tank motor vehicles (commonly referred to as wetlines). The
evaluation shall--
(1) review the safety of transporting flammable liquids in
the external product piping of cargo tank motor vehicles;
(2) accurately quantify the number of incidents involving
the transportation of flammable liquids in external product
piping of cargo tank motor vehicles;
(3) identify various alternatives to loading, transporting,
and unloading flammable liquids in such piping;
(4) examine the costs and benefits of each alternative; and
(5) identify any obstacles to implementing each alternative.

(b) <> Regulations.--The Secretary may not
issue a final rule regarding transporting flammable liquids in the
external product piping of cargo tank motor vehicles prior to completion
of the evaluation conducted under subsection (a), or 2 years after the
date of enactment of this Act, whichever is earlier, unless the
Secretary determines that a risk to public safety, property, or

[[Page 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-- <> SPORT FISH RESTORATION AND RECREATIONAL BOATING
SAFETY ACT OF 2012
SEC. 34001. <> SHORT TITLE.

This title may be cited as the ``Sport Fish Restoration and
Recreational Boating Safety Act of 2012''.

[[Page 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. <> 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 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) <> 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 844]]

``(4) a government entity demonstrates that granting the
waiver is necessary to prevent an undue economic burden on that
government.''.

DIVISION D-- <> FINANCE
SEC. 40001. <> SHORT TITLE.

This division may be cited as the ``Highway Investment, Job
Creation, and Economic Growth Act of 2012''.

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

SEC. 40101. EXTENSION OF TRUST FUND EXPENDITURE AUTHORITY.

(a) Highway Trust Fund.--Section 9503 of the Internal Revenue Code
of 1986 <> is amended--
(1) by striking ``July 1, 2012'' in subsections (b)(6)(B),
(c)(1), and (e)(3) and inserting ``October 1, 2014'', and
(2) by striking ``Surface Transportation Extension Act of
2012'' in subsections (c)(1) and (e)(3) and inserting ``MAP-
21''.

(b) Sport Fish Restoration and Boating Trust Fund.--Section 9504 of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``Surface Transportation Extension Act of
2012'' each place it appears in subsection (b)(2) and inserting
``MAP-21'', and
(2) by striking ``July 1, 2012'' in subsection (d)(2) and
inserting ``October 1, 2014''.

(c) Leaking Underground Storage Tank Trust Fund.--Paragraph (2) of
section 9508(e) of the Internal Revenue Code of 1986 is amended by
striking ``July 1, 2012'' and inserting ``October 1, 2014''.
(d) <> Effective Date.--The amendments made
by this section shall take effect on July 1, 2012.
SEC. 40102. EXTENSION OF HIGHWAY-RELATED TAXES.

(a) In General.--
(1) Each of the following provisions of the Internal Revenue
Code of 1986 is amended by striking ``June 30, 2012'' and
inserting ``September 30, 2016'':
(A) Section 4041(a)(1)(C)(iii)(I).
(B) Section 4041(m)(1)(B).
(C) Section 4081(d)(1).
(2) Each of the following provisions of such Code is amended
by striking ``July 1, 2012'' and inserting ``October 1, 2016'':
(A) Section 4041(m)(1)(A).
(B) Section 4051(c).
(C) Section 4071(d).
(D) Section 4081(d)(3).

(b) Extension of Tax, etc., on Use of Certain Heavy Vehicles.--
(1) In general.--Each of the following provisions of the
Internal Revenue Code of 1986 is amended by striking ``2013''
each place it appears and inserting ``2017'':

[[Page 845]]

(A) <> Section 4481(f).
(B) Section 4482(d).
(2) Extension and technical correction.--
(A) In general.--Paragraph (4) of section 4482(c) of
such Code is amended to read as follows:
``(4) <> Taxable period.--The term
`taxable period' means any year beginning before July 1, 2017,
and the period which begins on July 1, 2017, and ends at the
close of September 30, 2017.''.
(B) <> Effective date.--The
amendment made by this paragraph shall take effect as if
included in the amendments made by section 142 of the
Surface Transportation Extension Act of 2011, Part II.

(c) Floor Stocks Refunds.--Section 6412(a)(1) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``July 1, 2012'' each place it appears and
inserting ``October 1, 2016'',
(2) by striking ``December 31, 2012'' each place it appears
and inserting ``March 31, 2017'', and
(3) by striking ``October 1, 2012'' and inserting ``January
1, 2017''.

(d) Extension of Certain Exemptions.--
(1) Section 4221(a) of the Internal Revenue Code of 1986 is
amended by striking ``July 1, 2012'' and inserting ``October 1,
2016''.
(2) Section 4483(i) of such Code is amended by striking
``July 1, 2012'' and inserting ``October 1, 2017''.

(e) Extension of Transfers of Certain Taxes.--
(1) In general.--Section 9503 of the Internal Revenue Code
of 1986 is amended--
(A) in subsection (b)--
(i) by striking ``July 1, 2012'' each place it
appears in paragraphs (1) and (2) and inserting
``October 1, 2016'',
(ii) by striking ``July 1, 2012'' in the
heading of paragraph (2) and inserting ``October
1, 2016'',
(iii) by striking ``June 30, 2012'' in
paragraph (2) and inserting ``September 30,
2016'', and
(iv) by striking ``April 1, 2013'' in
paragraph (2) and inserting ``July 1, 2017'', and
(B) in subsection (c)(2), by striking ``April 1,
2013'' and inserting ``July 1, 2017''.
(2) Motorboat and small-engine fuel tax transfers.--
(A) In general.--Paragraphs (3)(A)(i) and (4)(A) of
section 9503(c) of such Code are each amended by
striking ``July 1, 2012'' and inserting ``October 1,
2016''.
(B) Conforming amendments to land and water
conservation fund.--Section 201(b) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l-11(b)) is
amended--
(i) by striking ``July 1, 2013'' each place it
appears and inserting ``October 1, 2017'', and
(ii) by striking ``July 1, 2012'' and
inserting ``October 1, 2016''.

(f) <> Effective Date.--Except as
otherwise provided in this section, the amendments made by this section
shall take effect on July 1, 2012.

[[Page 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 <> is amended--
(1) by striking ``Amounts'' and inserting:
``(1) In general.--Except as provided in paragraph (2),
amounts'', and
(2) by adding at the end the following new paragraph:
``(2) <> Transfer to
highway trust fund.--Out of amounts in the Leaking Underground
Storage Tank Trust Fund there is hereby appropriated
$2,400,000,000 to be transferred under section 9503(f)(3) to the
Highway Account (as defined in section 9503(e)(5)(B)) in the
Highway Trust Fund.''.

(b) Transfer to Highway Trust Fund.--
(1) In general.--Subsection (f) of section 9503 of the
Internal Revenue Code of 1986 is amended by inserting after
paragraph (2) the following new paragraph:
``(3) Increase in fund balance.--There is hereby transferred
to the Highway Account (as defined in subsection (e)(5)(B)) in
the Highway Trust Fund amounts appropriated from the Leaking
Underground Storage Tank Trust Fund under section 9508(c)(2).''.
(2) Conforming amendments.--Paragraph (4) of section 9503(f)
of such Code is amended--
(A) by inserting ``or transferred'' after
``appropriated'', and
(B) by striking ``appropriated'' in the heading
thereof.

Subtitle B--Pension Provisions

PART I--PENSION FUNDING STABILIZATION

SEC. 40211. PENSION FUNDING STABILIZATION.

(a) Amendments to Internal Revenue Code of 1986.--
(1) In general.--Subparagraph (C) of section 430(h)(2) of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new clause:
``(iv) Segment rate stabilization.--
``(I) <> In
general.--If a segment rate described in
clause (i), (ii), or (iii) with respect
to any applicable month (determined
without regard to this clause) is less
than the applicable minimum percentage,
or more than the applicable maximum
percentage, of the average of the
segment rates described in such clause
for years in the 25-year period ending
with September 30 of the calendar year
preceding the calendar year in which the
plan year begins, then the segment rate
described in such clause with respect to
the applicable month

[[Page 847]]

shall be equal to the applicable minimum
percentage or the applicable maximum
percentage of such average, whichever is
closest. <> The
Secretary shall determine such average
on an annual basis and may prescribe
equivalent rates for years in any such
25-year period for which the rates
described in any such clause are not
available.
``(II) Applicable minimum
percentage; applicable maximum
percentage.--For purposes of subclause
(I), the applicable minimum percentage
and the applicable maximum percentage
for a plan year beginning in a calendar
year shall be determined in accordance
with the following table:


------------------------------------------------------------------------
The          The
applicable   applicable
``If the calendar year is:              minimum      maximum
percentage   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 <> is amended by inserting
``(determined by not taking into account any adjustment
under clause (iv) of subsection (h)(2)(C) thereof)''
before the period.
(B) Subparagraph (F) of section 430(h)(2) of such
Code is amended by inserting ``and the averages
determined under subparagraph (C)(iv)'' after
``subparagraph (C)''.
(C) Subparagraphs (C) and (D) of section 417(e)(3)
of such Code are each amended by striking ``section
430(h)(2)(C)'' and inserting ``section 430(h)(2)(C)
(determined by not taking into account any adjustment
under clause (iv) thereof)''.
(D) Section 420 of such Code is amended by adding at
the end the following new subsection:

``(g) Segment Rates Determined Without Pension Stabilization.--
<> For purposes of this section, section 430 shall
be applied without regard to subsection (h)(2)(C)(iv) thereof.''.

(b) Amendments to Employee Retirement Income Security Act of 1974.--
(1) In general.--Subparagraph (C) of section 303(h)(2) of
the Employee Retirement Income Security Act of 1974 (29 U.S.C.
1083(h)(2)) is amended by adding at the end the following new
clause:
``(iv) Segment rate stabilization.--
``(I) <> In
general.--If a segment rate described in
clause (i), (ii), or (iii) with respect
to any applicable month (determined
without regard to this clause) is less
than the applicable minimum

[[Page 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 <> 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 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) <> Applicable plan
year.--For purposes of this subparagraph, the term
`applicable plan year' means any plan year
beginning after December 31, 2011, and before
January 1, 2015, for which--
``(I) the funding target (as defined
in section 303(d)(2)) is less than 95
percent of such funding target
determined without regard to section
303(h)(2)(C)(iv),
``(II) the plan has a funding
shortfall (as defined in section
303(c)(4) and determined without regard
to section 303(h)(2)(C)(iv)) greater
than $500,000, and
``(III) the plan had 50 or more
participants on any day during the
preceding plan year.
For purposes of any determination under subclause
(III), the aggregation rule under the last
sentence of section 303(g)(2)(B) shall apply.
``(iii) Special rule for plan years beginning
before 2012.--In the case of a preceding plan year
referred to in clause (i)(III) which begins before
January 1, 2012, the information described in such
clause shall be provided only without regard to
section 303(h)(2)(C)(iv).''.
(B) <> Model notice.--The
Secretary of Labor shall modify the model notice
required to be published under section 501(c) of the
Pension Protection Act of 2006 to prominently include
the information described in section 101(f)(2)(D) of the
Employee Retirement Income Security Act of 1974, as
added by this paragraph.
(3) Conforming amendments.--
(A) Subparagraph (F) of section 303(h)(2) of such
Act (29 U.S.C. 1083(h)(2)) is amended by inserting ``and
the averages determined under subparagraph (C)(iv)''
after ``subparagraph (C)''.
(B) Clauses (ii) and (iii) of section 205(g)(3)(B)
of such Act (29 U.S.C. 1055(g)(3)(B)) are each amended
by striking ``section 303(h)(2)(C)'' and inserting
``section 303(h)(2)(C) (determined by not taking into
account any adjustment under clause (iv) thereof)''.
(C) Clause (iv) of section 4006(a)(3)(E) of such Act
(29 U.S.C. 1306(a)(3)(E)) is amended by striking
``section 303(h)(2)(C)'' and inserting ``section
303(h)(2)(C) (notwithstanding any regulations issued by
the corporation, determined by not taking into account
any adjustment under clause (iv) thereof)''.
(D) Section 4010(d) of such Act (29 U.S.C. 1310(d))
is amended by adding at the end the following:
``(3) <> Pension stabilization
disregarded.--For purposes of this section, the segment rates
used in determining the

[[Page 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) <> Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to plan years beginning after December 31,
2011.
(2) Rules with respect to elections.--
(A) Adjusted funding target attainment percentage.--
A plan sponsor may elect not to have the amendments made
by this section apply to any plan year beginning before
January 1, 2013, either (as specified in the election)--
(i) for all purposes for which such amendments
apply, or
(ii) solely for purposes of determining the
adjusted funding target attainment percentage
under sections 436 of the Internal Revenue Code of
1986 and 206(g) of the Employee Retirement Income
Security Act of 1974 for such plan year.
A plan shall not be treated as failing to meet the
requirements of sections 204(g) of such Act and
411(d)(6) of such Code solely by reason of an election
under this paragraph.
(B) Opt out of existing elections.--If, on the date
of the enactment of this Act, an election is in effect
with respect to any plan under sections
303(h)((2)(D)(ii) of the Employee Retirement Income
Security Act of 1974 and 430(h)((2)(D)(ii) of the
Internal Revenue Code of 1986, then, notwithstanding the
last sentence of each such section, the plan sponsor may
revoke such election without the consent of the
Secretary of the Treasury. The plan sponsor may make
such revocation at any time before the date which is 1
year after such date of enactment and such revocation
shall be effective for the 1st plan year to which the
amendments made by this section apply and all subsequent
plan years. Nothing in this subparagraph shall preclude
a plan sponsor from making a subsequent election in
accordance with such sections.

PART II--PBGC PREMIUMS

SEC. 40221. <> SINGLE EMPLOYER PLAN ANNUAL
PREMIUM RATES.

(a) Flat-rate Premium.--
(1) In general.--Clause (i) of section 4006(a)(3)(A) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1306(a)(3)(A)) is amended to read as follows:
``(i) in the case of a single-employer plan, an amount for
each individual who is a participant in such plan during the
plan year equal to the sum of the additional premium (if any)
determined under subparagraph (E) and--
``(I) for plan years beginning after December 31,
2005, and before January 1, 2013, $30;
``(II) for plan years beginning after December 31,
2012, and before January 1, 2014, $42; and
``(III) for plan years beginning after December 31,
2013, $49.''.

[[Page 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 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. <> 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 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 <> 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 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. <> 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 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. <> The individual in such position shall coordinate the risk
management efforts of the corporation, explain risks and controls to
senior management and the board of directors of the corporation, and
make recommendations.''.

(d) Director.--Section 4002(c) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1302(c)) is amended to read as follows:
``(c) The Director shall be accountable to the board of directors.
The Director shall serve for a term of 5 years unless removed by the
President or the board of directors before the expiration of such 5-year
term.''.
(e) <> Senses of Congress.--
(1) Formation of committees.--It is the sense of Congress
that the board of directors of the Pension Benefit Guaranty
Corporation established under section 4002 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
amended by this section, should form committees, including an
audit committee and an investment committee composed of not less
than 2 members, to enhance the overall effectiveness of the
board of directors.
(2) Advisory committee.--It is the sense of Congress that
the advisory committee to the Pension Benefit Guaranty
Corporation established under section 4002 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1302), as
amended by this section, should provide to the board of
directors of such corporation policy recommendations regarding
changes to the law that would be beneficial to the corporation
or the voluntary private pension system.

(f) Study Regarding Governance Structures.--
(1) <> In general.--Not later
than 90 days after the date of enactment of this Act, the
Pension Benefit Guaranty Corporation shall enter into a contract
with the National Academy of Public Administration to conduct
the study described in paragraph (2) with respect to the Pension
Benefit Guaranty Corporation.
(2) Content of study.--The study conducted under paragraph
(1) shall include--
(A) a review of the governance structures of
governmental and nongovernmental organizations that are
analogous to the Pension Benefit Guaranty Corporation;
and

[[Page 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) <> Submission to congress.--
Not later than 1 year after the initiation of the study under
paragraph (1), the National Academy of Public Administration
shall submit the results of the study to the Committees on
Health, Education, Labor, and Pensions and Finance of the Senate
and the Committees on Education and the Workforce and Ways and
Means of the House of Representatives.
SEC. 40232. PARTICIPANT AND PLAN SPONSOR ADVOCATE.

(a) In General.--Title IV of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1301 et seq.) is amended by inserting after
section 4003 the following:
``SEC. 4004. <> PARTICIPANT AND PLAN SPONSOR
ADVOCATE.

``(a) In General.--The board of directors of the corporation shall
select a Participant and Plan Sponsor Advocate from the candidates
nominated by the advisory committee to the corporation under section
4002(h)(1) and without regard to the provisions of title 5, United
States Code, relating to appointments in the competitive service or
Senior Executive Service.
``(b) Duties.--The Participant and Plan Sponsor Advocate shall--
``(1) act as a liaison between the corporation, sponsors of
defined benefit pension plans insured by the corporation, and
participants in pension plans trusteed by the corporation;
``(2) advocate for the full attainment of the rights of
participants in plans trusteed by the corporation;
``(3) assist pension plan sponsors and participants in
resolving disputes with the corporation;
``(4) identify areas in which participants and plan sponsors
have persistent problems in dealings with the corporation;
``(5) to the extent possible, propose changes in the
administrative practices of the corporation to mitigate
problems;
``(6) identify potential legislative changes which may be
appropriate to mitigate problems; and
``(7) refer instances of fraud, waste, and abuse, and
violations of law to the Office of the Inspector General of the
corporation.

``(c) <> Removal.--If the Participant
and Plan Sponsor Advocate is removed from office or is transferred to
another position or location within the corporation or the Department of
Labor, the board of the directors of the corporation shall communicate
in writing the reasons for any such removal or transfer to Congress not
less than 30 days before the removal or transfer. Nothing in this
subsection shall prohibit a personnel action otherwise authorized by
law, other than transfer or removal.

[[Page 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) <> Concurrent submission.--The
Participant and Plan Sponsor Advocate shall submit a copy of
each report to the Secretary of Labor, the Director of the
corporation, and any other appropriate official at the same time
such report is submitted to the committees of Congress under
paragraph (1).''.

(b) Advisory Committee Nominations.--Section 4002(h)(1) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.1302(h)(1)) is
amended by adding at the end the following new sentence: ``In the event
of a vacancy or impending vacancy in the office of the Participant and
Plan Sponsor Advocate established under section 4004, the Advisory
Committee shall, in consultation with the Director of the corporation
and participant and plan sponsor advocacy groups, nominate at least two
but no more than three individuals to serve as the Participant and Plan
Sponsor Advocate.''.
(c) Clerical Amendment.--The table of contents in section 1 of the
Employee Retirement Income Security Act of 1974 is amended by inserting
after the item relating to section 4003 the following new item:

``4004. Participant and Plan Sponsor Advocate.''.

SEC. 40233. QUALITY CONTROL PROCEDURES FOR THE PENSION BENEFIT
GUARANTY CORPORATION.

(a) <> Annual Peer Review of
Insurance Modeling Systems.--The Pension Benefit Guaranty Corporation
shall contract with a capable agency or organization that is independent
from the Corporation, such as the Social Security Administration, to
conduct an annual peer review of the Corporation's Single-Employer
Pension Insurance Modeling System and the Corporation's Multiemployer

[[Page 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. <> The first of such
annual peer reviews shall be initiated no later than 3 months after the
date of enactment of this Act.

(b) <> Policies and Procedures Relating to
the Policy, Research, and Analysis Department.--The Pension Benefit
Guaranty Corporation shall--
(1) develop written quality review policies and procedures
for all modeling and actuarial work performed by the
Corporation's Policy, Research, and Analysis Department; and
(2) <> conduct a record management review of
such Department to determine what records must be retained as
Federal records.

(c) Report Relating to OIG Recommendations.--Not later than 2 months
after the date of enactment of this Act, the Pension Benefit Guaranty
Corporation shall submit to Congress a report, approved by the board of
directors of the Corporation, setting forth a timetable for addressing
the outstanding recommendations of the Office of the Inspector General
relating to the Policy, Research, and Analysis Department and the
Benefits Administration and Payment Department.
SEC. 40234. LINE OF CREDIT REPEAL.

(a) In General.--Subsection (c) of section 4005 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1305) is repealed.
(b) Conforming Amendments.--
(1) Section 4005 of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1305) is amended--
(A) in subsection (b)--
(i) paragraph (1)--
(I) by striking subparagraph (A);
and
(II) by redesignating subparagraphs
(B) through (G) as subparagraphs (A)
through (F), respectively;
(ii) in paragraph (2)--
(I) by striking subparagraph (C);
and
(II) by redesignating subparagraphs
(D) and (E) as subparagraphs (C) and
(D), respectively; and
(iii) in paragraph (3), by striking ``but,''
and all that follows through the end and inserting
a period; and
(B) in subsection (g)--
(i) by striking paragraph (2); and
(ii) by redesignating paragraph (3) as
paragraph (2).
(2) Section 4402 of such Act (29 U.S.C. 1461) is amended--
(A) in subsection (c)(4)--
(i) by striking subparagraph (C); and
(ii) by redesignating subparagraph (D) as
subparagraph (C); and
(B) in subsection (d), by striking ``or (D)''.

[[Page 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 <> is amended by striking
``December 31, 2013'' and inserting ``December 31, 2021''.

(b) Conforming ERISA Amendments.--
(1) Sections 101(e)(3), 403(c)(1), and 408(b)(13) of the
Employee Retirement Income Security Act of 1974 <> are each amended by striking ``Pension
Protection Act of 2006'' and inserting ``MAP-21''.
(2) Section 408(b)(13) of such Act (29 U.S.C. 1108(b)(13))
is amended by striking ``January 1, 2014'' and inserting
``January 1, 2022''.

(c) <> Effective Date.--The amendments made
by this Act shall take effect on the date of the enactment of this Act.
SEC. 40242. TRANSFER OF EXCESS PENSION ASSETS TO RETIREE GROUP
TERM LIFE INSURANCE ACCOUNTS.

(a) In General.--Subsection (a) of section 420 of the Internal
Revenue Code of 1986 is amended by inserting ``, or an applicable life
insurance account,'' after ``health benefits account''.
(b) Applicable Life Insurance Account Defined.--
(1) In general.--Subsection (e) of section 420 of the
Internal Revenue Code of 1986 is amended by redesignating
paragraphs (4) and (5) as paragraphs (5) and (6), respectively,
and by inserting after paragraph (3) the following new
paragraph:
``(4) Applicable life insurance account.--The term
`applicable life insurance account' means a separate account
established and maintained for amounts transferred under this
section for qualified current retiree liabilities based on
premiums for applicable life insurance benefits.''.
(2) Applicable life insurance benefits defined.--Paragraph
(1) of section 420(e) of such Code is amended by redesignating
subparagraph (D) as subparagraph (E) and by inserting after
subparagraph (C) the following new subparagraph:
``(D) Applicable life insurance benefits.--The term
`applicable life insurance benefits' means group-term
life insurance coverage provided to retired employees
who, immediately before the qualified transfer, are
entitled to receive such coverage by reason of
retirement and who 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 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 <> 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 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 <> 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 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 <> 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 863]]

(11) Subparagraph (A) of section 420(f)(6) <> of such Code is amended--
(A) in clauses (i) and (ii), by inserting ``, in the
case of a transfer to a health benefits account,''
before ``his covered spouse and dependents'', and
(B) in clause (ii), by striking ``health plan'' and
inserting ``plan''.
(12) Subparagraph (B) of section 420(f)(6) of such Code is
amended--
(A) in clause (i), by inserting ``, and collectively
bargained life insurance benefits,'' after
``collectively bargained health benefits'',
(B) in clause (ii)--
(i) <> by adding at the
end the following: ``The preceding sentence shall
be applied separately for collectively bargained
health benefits and collectively bargained life
insurance benefits.'', and
(ii) by inserting ``, applicable life
insurance accounts,'' after ``health benefit
accounts'', and
(C) by striking ``health'' in the heading thereof.
(13) Subparagraph (E) of section 420(f)(6) of such Code, as
redesignated by subsection (b), is amended--
(A) by striking ``bargained health'' and inserting
``bargained'',
(B) by inserting ``, or a group-term life insurance
plan or arrangement for retired employees,'' after
``dependents'', and
(C) by striking ``health'' in the heading thereof.
(14) Section 101(e) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1021(e)) is amended--
(A) in paragraphs (1) and (2), by inserting ``or
applicable life insurance account'' after ``health
benefits account'' each place it appears, and
(B) in paragraph (1), by inserting ``or applicable
life insurance benefit liabilities'' after ``health
benefits liabilities''.

(f) Technical Correction.--Clause (iii) of section 420(f)(6)(B) of
the Internal Revenue Code of 1986 is amended by striking ``416(I)(1)''
and inserting ``416(i)(1)''.
(g) Repeal of Deadwood.--
(1) Subparagraph (A) of section 420(b)(1) of the Internal
Revenue Code of 1986 is amended 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 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 <> is amended by striking ``after December 31, 1990''.

(h) <> Effective Date.--
(1) <> In general.--The amendments
made by this section shall apply to transfers made after the
date of the enactment of this Act.
(2) Conforming amendments relating to pension protection
act.--The amendments made by subsections (b)(3)(B) and (f) shall
take effect as if included in the amendments made by section
841(a) of the Pension Protection Act of 2006.

Subtitle C--Additional Transfers to Highway Trust Fund

SEC. 40251. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.

Subsection (f) of section 9503 of the Internal Revenue Code of 1986,
as amended by this Act, is amended by redesignating paragraph (4) as
paragraph (5) and by inserting after paragraph (3) the following new
paragraph:
``(4) Additional appropriations to trust fund.--Out of money
in the Treasury not otherwise appropriated, there is hereby
appropriated to--
``(A) the Highway Account (as defined in subsection
(e)(5)(B)) in the Highway Trust Fund--
``(i) for fiscal year 2013, $6,200,000,000,
and
``(ii) for fiscal year 2014, $10,400,000,000,
and
``(B) the Mass Transit Account in the Highway Trust
Fund, for fiscal year 2014, $2,200,000,000.''.

DIVISION E-- <> RESEARCH AND EDUCATION
SEC. 50001. <> SHORT TITLE.

This division may be cited as the ``Transportation Research and
Innovative Technology Act of 2012''.

TITLE I--FUNDING

SEC. 51001. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--The following amounts are authorized to be
appropriated out of the Highway Trust Fund (other than the Mass Transit
Account):
(1) Highway research and development program.--To carry out
sections 503(b), 503(d), and 509 of title 23, United States
Code, $115,000,000 for each of fiscal years 2013 and 2014.

[[Page 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. <> 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 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 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 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) <> consult with a
wide variety of governmental and nongovernmental
representatives; and
``(ii) give consideration to prize goals that
demonstrate innovative approaches and strategies
to improve the safety, efficiency, and
sustainability of the national transportation
system.
``(C) Advertising.--The Secretary shall encourage
participation in the prize competitions through
advertising efforts.
``(D) <> Requirements
and registration.--For each prize competition, the
Secretary shall publish a notice on a public website
that describes--
``(i) the subject of the competition;
``(ii) the eligibility rules for participation
in the competition;
``(iii) the amount of the prize; and
``(iv) the basis on which a winner will be
selected.

[[Page 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 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 <> 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 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) <> 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 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 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 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 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) <> 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 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 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) <> 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 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 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 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 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) <> In general.--The Secretary shall
make grants under this section to establish and maintain centers
for surface transportation excellence.
``(2) Goals.--The goals of a center referred to in paragraph
(1) shall be to promote and support strategic national surface
transportation programs and activities relating to the work of
State departments of transportation in the areas of environment,
surface transportation safety, rural safety, and project
finance.
``(3) Role of the centers.--To achieve the goals set forth
in paragraph (2), any centers established under paragraph (1)
shall provide technical assistance, information sharing of best
practices, and training in the use of tools and decisionmaking
processes that can assist States in effectively implementing
surface transportation programs, projects, and policies.
``(4) Program administration.--
``(A) <> Competition.--A
party entering into a contract, cooperative agreement,
or other transaction with the Secretary under this
subsection, or receiving a grant to perform research or
provide technical assistance under this subsection,
shall be selected on a competitive basis.
``(B) Strategic plan.--The Secretary shall require
each center to develop a multiyear strategic plan,
that--
``(i) is submitted to the Secretary at such
time as the Secretary requires; and
``(ii) describes--
``(I) the activities to be
undertaken by the center; and
``(II) how the work of the center
will be coordinated with the activities
of the Federal Highway Administration
and the various other research,

[[Page 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) <> In General.--Section 506 of title 23, United
States Code, is repealed.

(b) Conforming Amendment.--The analysis for chapter 5 of title 23,
United States Code, is amended by striking the item relating to section
506.
SEC. 52007. SURFACE TRANSPORTATION ENVIRONMENTAL COOPERATIVE
RESEARCH PROGRAM.

(a) <> In General.--Section 507 of title 23, United
States Code, is repealed.

(b) Conforming Amendment.--The analysis for chapter 5 of title 23,
United States Code, is amended by striking the item relating to section
507.
SEC. 52008. NATIONAL COOPERATIVE FREIGHT RESEARCH.

(a) <>  In General.--Section 509 of title 23, United
States Code, is repealed.

(b) Conforming Amendment.--The analysis for chapter 5 of title 23,
United States Code, is amended by striking the item relating to section
509.
SEC. 52009. UNIVERSITY TRANSPORTATION CENTERS PROGRAM.

(a) In General.--Section 5505 of title 49, United States Code, is
amended to read as follows:
``Sec. 5505. <> University transportation centers
program

``(a) University Transportation Centers Program.--

[[Page 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) <> 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 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) <> Outside
stakeholders.--The Secretary shall, to the maximum extent
practicable, consult external stakeholders such as the
Transportation Research Board of the National Academy of
Sciences to evaluate and competitively review all proposals.

``(c) Grants.--
``(1) <> In general.--Not later than 1 year
after the date of enactment of the Transportation Research and
Innovative Technology Act of 2012, the Secretary, in
consultation as appropriate with the Administrators of the
Federal Highway Administration and the Federal Transit
Administration, shall select grant recipients under subsection
(b) and make grant amounts available to the selected recipients.
``(2) National transportation centers.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall provide grants to 5 recipients that the

[[Page 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) <> 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 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) <>  submit to the Committees
on Transportation and Infrastructure and Science, Space,
and Technology of the House of Representatives and the
Committee on Environment and Public Works of the Senate
a report describing that review and evaluation.
``(3) Program evaluation and oversight.--For each of fiscal
years 2013 and 2014, the Secretary shall expend not more than
1\1/2\ percent of the amounts made available to the Secretary to
carry out this section for any coordination, evaluation, and
oversight activities of the Secretary under this section.

``(e) <>  Limitation on Availability of
Amounts.--Amounts made available to the Secretary to carry out this
section shall remain available for obligation by the Secretary for a
period of 3 years after the last day of the fiscal year for which the
amounts are appropriated.

``(f) Information Collection.--Any survey, questionnaire, or
interview that the Secretary determines to be necessary to carry

[[Page 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) <>  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 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 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) <>  build and
disseminate the transportation layer of the
National Spatial Data Infrastructure developed
under Executive Order 12906 (59 Fed. Reg. 17671)
(or a successor Executive Order), including by
coordinating the development of transportation
geospatial data standards, compiling intermodal
geospatial data, and collecting geospatial data
that is not being collected by other entities;
``(viii) <>  issue
guidelines for the collection of information by
the Department that the Director determines
necessary to develop transportation statistics and
carry out modeling, economic assessment, and
program assessment activities to ensure that such
information is accurate, reliable, relevant,
uniform, and in a form that permits systematic
analysis by the Department;
``(ix) <>  review and
report to the Secretary on the sources and
reliability of--
``(I) the statistics proposed by the
heads of the operating administrations
of the Department to measure outputs and
outcomes as required by the Government
Performance and Results Act of 1993
(Public Law 103-62;107 Stat. 285); and
``(II) at the request of the
Secretary, any other data collected or
statistical information published by the
heads of the operating administrations
of the Department; and
``(x) ensure that the statistics published
under this section are readily accessible to the
public, consistent with applicable security
constraints and confidentiality interests.

``(c) Access to Federal Data.--In carrying out subsection
(b)(3)(B)(ii), the Director shall be given access to all safety data
that the Director determines necessary to carry out that subsection that
is held by the Department or any other Federal agency upon written
request and subject to any statutory or regulatory restrictions.

[[Page 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 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) <> 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 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 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 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 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) <> 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 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 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 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 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 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) <> 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 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 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 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 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) <> In General.--Not later than 3 years after
the date of enactment of this section, the Secretary shall submit to the
Committees on Commerce, Science, and Transportation and Environment and
Public Works of the Senate and the Committees on Transportation and
Infrastructure, Energy and Commerce, and Science, Space, and Technology
of the House of Representatives that--
``(1) assesses the status of dedicated short-range
communications technology and applications developed through
research and development;
``(2) analyzes the known and potential gaps in short-range
communications technology and applications;
``(3) defines a recommended implementation path for
dedicated short-range communications technology and applications
that--
``(A) is based on the assessment described in
paragraph (1); and
``(B) takes into account the analysis described in
paragraph (2);
``(4) includes guidance on the relationship of the proposed
deployment of dedicated short-range communications to the
National ITS Architecture and ITS Standards; and
``(5) ensures competition by not preferencing the use of any
particular frequency for vehicle to infrastructure operations.

``(b) <>  Report Review.--The Secretary shall
enter into agreements with the National Research Council and an
independent third party with subject matter expertise for the review of
the report described in subsection (a).''.

[[Page 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) <>  in section 3(11)--
(A) in subparagraph (A), by striking ``and'' after
the semicolon at the end;
(B) in subparagraph (B)--
(i) by striking ``fiscal year 2009 and each
fiscal year thereafter'' and inserting ``each of
fiscal years 2009 through 2011''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(C) for fiscal year 2012 and each fiscal year
thereafter, the amount that is equal to 95 percent of
the full funding amount for the preceding fiscal
year.'';
(2) <>  in sections 101, 102,
203, 207, 208, 304, and 402, by striking ``2011'' each place it
appears and inserting ``2012'';
(3) <>  in section 102--
(A) by striking ``2008'' each place it appears and
inserting ``2012'';
(B) in subsection (b)(2)(B), by inserting ``in
2012'' before ``, the election''; and
(C) in subsection (d)--
(i) in paragraph (1)(A), by striking
``paragraph (3)(B)'' and inserting ``subparagraph
(D)''; and
(ii) in paragraph (3)--
(I) by striking subparagraph (A) and
inserting the following:
``(A) <>  Notification.--The
Governor of each eligible State shall notify the
Secretary concerned of an election by an eligible county
under this subsection not later than September 30, 2012,
and each September 30 thereafter for each succeeding
fiscal year.'';
(II) by redesignating subparagraph
(B) as subparagraph (D) and moving the
subparagraph so as to appear at the end
of paragraph (1) of subsection (d); and

[[Page 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) <>  in section 103(d)(2), by
striking ``fiscal year 2011'' and inserting ``each of fiscal
years 2011 and 2012'';
(5) <>  in section 202, by adding at the
end the following:

``(c) Administrative Expenses.--A resource advisory committee may,
in accordance with section 203, propose to use not more than 10 percent
of the project funds of an eligible county for any fiscal year for
administrative expenses associated with operating the resource advisory
committee under this title.'';
(6) <>  in section 204(e)(3)(B)(iii), by
striking ``and 2011'' and inserting ``through 2012'';
(7) <>  in section 205(a)(4), by
striking ``2006'' each place it appears and inserting ``2011'';
(8) <>  in section 208(b), by striking
``2012'' and inserting ``2013'';
(9) <>  in section 302(a)(2)(A), by
inserting ``and'' after the semicolon; and
(10) <>  in section 304(b), by striking
``2012'' and inserting ``2013''.

(b) Failure To Make Election.--For each county that failed to make
an election for fiscal year 2011 in accordance with section 102(d)(3)(A)
of the Secure Rural Schools and Community Self-Determination Act of 2000
(16 U.S.C. 7112(d)(3)(A)), there shall be available to the Secretary of
Agriculture to carry out projects to further the purpose described in
section 202(b) of that Act (16 U.S.C. 7122(b)), from amounts in the
Treasury not otherwise appropriated, the amount that is equal to 15
percent of the total share of the State payment that otherwise would
have been made to the county under that Act for fiscal year 2011.

Subtitle B--Payment in Lieu of Taxes Program

SEC. 100111. PAYMENTS IN LIEU OF TAXES.

Section 6906 of title 31, United States Code, is amended by striking
``2012'' and inserting ``2013''.

Subtitle C--Offsets

SEC. 100121. PHASED RETIREMENT AUTHORITY.

(a) CSRS.--Chapter 83 of title 5, United States Code, is amended--
(1) <>  in section 8331--

[[Page 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) <>  For the purposes of this section--
``(1) the term `composite retirement annuity' means the
annuity computed when a phased retiree attains full retirement
status;
``(2) the term `full retirement status' means that a phased
retiree has ceased employment and is entitled, upon application,
to a composite retirement annuity;
``(3) the term `phased employment' means the less-than-full-
time employment of a phased retiree;
``(4) the term `phased retiree' means a retirement-eligible
employee who--
``(A) makes an election under subsection (b); and
``(B) has not entered full retirement status;
``(5) the term `phased retirement annuity' means the annuity
payable under this section before full retirement;
``(6) the term `phased retirement percentage' means the
percentage which, when added to the working percentage for a
phased retiree, produces a sum of 100 percent;
``(7) the term `phased retirement period' means the period
beginning on the date on which an individual becomes entitled to
receive a phased retirement annuity and ending on the date on
which the individual dies or separates from phased employment;
``(8) the term `phased retirement status' means that a
phased retiree is concurrently employed in phased employment and
eligible to receive a phased retirement annuity;
``(9) the term `retirement-eligible employee'--
``(A) means an individual who, if the individual
separated from the service, would meet the requirements
for retirement under subsection (a) or (b) of section
8336; but
``(B) does not include an employee described in
section 8335 after the date on which the employee is
required to be separated from the service by reason of
such section; and
``(10) the term `working percentage' means the percentage of
full-time employment equal to the quotient obtained by
dividing--
``(A) the number of hours per pay period to be
worked by a phased retiree, as scheduled in accordance
with subsection (b)(2); by
``(B) the number of hours per pay period to be
worked by an employee serving in a comparable position
on a full-time basis.

``(b)(1) <>  With the concurrence
of the head of the employing agency, and under regulations promulgated
by the Director, a retirement-eligible employee who has been employed on
a full-time basis for not less than the 3-year period ending on the date
on which

[[Page 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 909]]

``(5) <>  Any reduction of a phased retirement
annuity based on an election under section 8334(d)(2) shall be applied
to the phased retirement annuity after computation under paragraph (1).

``(6)(A) Any deposit, or election of an actuarial annuity reduction
in lieu of a deposit, for military service or for creditable civilian
service for which retirement deductions were not made or refunded shall
be made by a retirement-eligible employee at or before the time the
retirement-eligible employee enters phased retirement status. No such
deposit may be made, or actuarial adjustment in lieu thereof elected, at
the time a phased retiree enters full retirement status.
``(B) Notwithstanding subparagraph (A), if a phased retiree does not
make such a deposit and dies in service as a phased retiree, a survivor
of the phased retiree shall have the same right to make such deposit as
would have been available had the employee not entered phased retirement
status and died in service.
``(C) If a phased retiree makes an election for an actuarial annuity
reduction under section 8334(d)(2) and dies in service as a phased
retiree, the amount of any deposit upon which such actuarial reduction
shall have been based shall be deemed to have been fully paid.
``(7) <>  A phased retirement annuity shall
commence on the date on which a phased retiree enters phased employment.

``(8) No unused sick leave credit may be used in the computation of
the phased retirement annuity.
``(d) All basic pay not in excess of the full-time rate of pay for
the position to which a phased retiree is appointed shall be deemed to
be basic pay for purposes of section 8334.
``(e) Under such procedures as the Director may prescribe, a phased
retiree may elect to enter full retirement status at any time. Upon
making such an election, a phased retiree shall be entitled to a
composite retirement annuity.
``(f)(1) <>  Except as provided otherwise under
this subsection, a composite retirement annuity is a single annuity
computed under regulations prescribed by the Director, equal to the sum
of--
``(A) the amount of the phased retirement annuity as of the
date of full retirement, before any reduction based on an
election under section 8334(d)(2), and including any adjustments
made under section 8340; and
``(B) the product obtained by multiplying--
``(i) the amount of an annuity computed under
section 8339 that would have been payable at the time of
full retirement if the individual had not elected a
phased retirement and as if the individual was employed
on a full-time basis in the position occupied during the
phased retirement period and before any reduction for
survivor annuity or reduction based on an election under
section 8334(d)(2); by
``(ii) the working percentage.

``(2) After computing a composite retirement annuity under paragraph
(1), the Director shall adjust the amount of the annuity for any
applicable reductions for a survivor annuity and any previously elected
actuarial reduction under section 8334(d)(2).
``(3) A composite retirement annuity shall be adjusted in accordance
with section 8340, except that subsection (c)(1) of that section shall
not apply.

[[Page 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) <>  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 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) <>  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 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 913]]

``(6) <>  A phased retirement annuity shall
commence on the date on which a phased retiree enters phased employment.

``(7) No unused sick leave credit may be used in the computation of
the phased retirement annuity.
``(d) All basic pay not in excess of the full-time rate of pay for
the position to which a phased retiree is appointed shall be deemed to
be basic pay for purposes of sections 8422 and 8423.
``(e) Under such procedures as the Director may prescribe, a phased
retiree may elect to enter full retirement status at any time. Upon
making such an election, a phased retiree shall be entitled to a
composite retirement annuity.
``(f)(1) <>  Except as provided otherwise under
this subsection, a composite retirement annuity is a single annuity
computed under regulations prescribed by the Director, equal to the sum
of--
``(A) the amount of the phased retirement annuity as of the
date of full retirement, including any adjustments made under
section 8462; and
``(B) the product obtained by multiplying--
``(i) the amount of an annuity computed under
section 8412 that would have been payable at the time of
full retirement if the individual had not elected a
phased retirement and as if the individual was employed
on a full-time basis in the position occupied during the
phased retirement period and before any adjustment to
provide for a survivor annuity; by
``(ii) the working percentage.

``(2) After computing a composite retirement annuity under paragraph
(1), the Director shall adjust the amount of the annuity for any
applicable reductions for a survivor annuity.
``(3) A composite retirement annuity shall be adjusted in accordance
with section 8462, except that subsection (c)(1) of that section shall
not apply.
``(4) In computing a composite retirement annuity under paragraph
(1)(B)(i), the unused sick leave to the credit of a phased retiree at
the time of entry into full retirement status shall be adjusted by
dividing the number of hours of unused sick leave by the working
percentage.
``(g)(1) Under such procedures and conditions as the Director may
provide, and with the concurrence of the head of employing agency, a
phased retiree may elect to terminate phased retirement status and
return to a full-time work schedule.
``(2) Upon entering a full-time work schedule based on an election
under paragraph (1), the phased retirement annuity of a phased retiree
shall terminate.
``(3) After termination of the phased retirement annuity under this
subsection, the individual's rights under this chapter shall be
determined based on the law in effect at the time of any subsequent
separation from service. For purposes of this chapter, at the time of
the subsequent separation from service, the phased retirement period
shall be treated as if it had been a period of part-time employment with
the work schedule described in subsection (b)(2).
``(h) For purposes of subchapter IV--
``(1) the death of a phased retiree shall be deemed to be
the death in service of an employee;
``(2) except for purposes of section 8442(b)(1)(A)(i), the
phased retirement period shall be deemed to have been a period

[[Page 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 <> is amended by striking ``or'' at the end of
clause (vi), by striking the period at the end of clause (vii) and
inserting ``, or'', and by adding at the end the following:
``(viii) payments under a phased retirement
annuity under section 8366a(a)(5) or 8412a(a)(5)
of title 5, United States Code, or a composite
retirement annuity under section 8366a(a)(1) or
8412a(a)(1) of such title.''.

(d) <>  Effective Date.--The amendments made
by subsections (a) and (b) shall take effect on the effective date of
the implementing regulations issued by the Director of the Office of
Personnel Management.
SEC. 100122. ROLL-YOUR-OWN CIGARETTE MACHINES.

(a) In General.--Subsection (d) of section 5702 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
flush sentence:
``Such <> term shall include any person who for
commercial purposes makes available for consumer use (including such
consumer's personal consumption or use under paragraph (1)) a machine
capable of making cigarettes, cigars, or other tobacco products. A
person making such a machine available for consumer use shall be deemed
the person making the removal as defined by subsection (j) with respect
to any tobacco products manufactured by such machine. A person who sells
a machine directly to a consumer at retail for a consumer's personal
home use is not making a machine available for commercial purposes if
such machine is not used at a retail premises and is designed to produce
tobacco products only in personal use quantities.''.

[[Page 915]]

(b) <>  Effective Date.--The amendment made
by this section shall apply to articles removed after the date of the
enactment of this Act.
SEC. 100123. CHANGE IN FMAP INCREASE FOR DISASTER RECOVERY STATES.

(a) Accelerated Date for Prior Amendments.--Section 3204(b) of the
Middle Class Tax Relief and Job Creation Act of 2012 (Public Law 112-
96) <> is amended by striking ``October 1,
2013'' and inserting ``October 1, 2012''.

(b) Application of 50 Percent in Fiscal Year 2013.--Subparagraph (B)
of section 1905(aa)(1) of the Social Security Act (42 U.S.C.
1396d(aa)(1)), as amended by section 3204(a) of Public Law 112-96, is
amended by striking ``25 percent'' and inserting ``25 percent (or 50
percent in the case of fiscal year 2013)''.
(c) <>  Effective Date.--The amendments
made by this section shall be effective as if included in the enactment
of section 3204 of Public Law 112-96.
SEC. 100124. REPEALS.

(a) Transportation Requirements for Certain Exports Sponsored by the
Secretary of Agriculture.--
(1) Repeal.--Subsections (a) and (c) of section 55314 of
title 46, United States Code, are repealed.
(2) Activities described.--Subsection (b) of section 55314
of title 46, United States Code, is amended by striking ``This
section applies to export activity'' and inserting ``The
activities specified in this subsection are export activities''.

(b) Financing the Transportation of Agricultural Commodities.--
Subsection (a) of section 55316 of title 46, United States Code, is
repealed.
(c) Conforming Amendments.--
(1) Minimum tonnage.--Section 55315(b) of title 46, United
States Code, is amended by striking ``subject to section 55314''
and inserting ``specified in section 55314(b)''.
(2) Issuance and purchase of obligations and notification to
congress of insufficiency.--Section 55316 of title 46, United
States Code, is amended--
(A) in subsection (c)(1) by striking ``under
subsections (a) and (b)'' and inserting ``under
subsection (b)''; and
(B) in subsection (f) by striking ``subsections (a)
and (b) and section 55314(a) of this title'' and
inserting ``subsection (b)''.
(3) Termination of subchapter.--Section 55317 of title 46,
United States Code, is amended by striking ``sections 55314(a)
and 55316(a) and (b)'' and inserting ``section 55316(b)''.
SEC. 100125. LIMITATION ON PAYMENTS FROM THE ABANDONED MINE
RECLAMATION FUND.

Section 411(h) of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1240a(h)) is amended by adding at the end the following:
``(5) Limitation on annual payments.--Notwithstanding any
other provision of this subsection, the total annual payment to
a certified State or Indian tribe under this subsection shall be
not more than $15,000,000.''.

[[Page 916]]

TITLE <> II--
FLOOD INSURANCE

Subtitle A--Flood Insurance Reform and Modernization

SEC. 100201. <> SHORT TITLE.

This subtitle may be cited as the ``Biggert-Waters Flood Insurance
Reform Act of 2012''.
SEC. 100202. <> DEFINITIONS.

(a) In General.--In this subtitle, the following definitions shall
apply:
(1) 100-year floodplain.--The term ``100-year floodplain''
means that area which is subject to inundation from a flood
having a 1-percent chance of being equaled or exceeded in any
given year.
(2) 500-year floodplain.--The term ``500-year floodplain''
means that area which is subject to inundation from a flood
having a 0.2-percent chance of being equaled or exceeded in any
given year.
(3) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(4) National flood insurance program.--The term ``National
Flood Insurance Program'' means the program established under
the National Flood Insurance Act of 1968 (42 U.S.C. 4011 et
seq.).
(5) Write your own.--The term ``Write Your Own'' means the
cooperative undertaking between the insurance industry and the
Federal Insurance Administration which allows participating
property and casualty insurance companies to write and service
standard flood insurance policies.

(b) Common Terminology.--Except as otherwise provided in this
subtitle, any terms used in this subtitle shall have the meaning given
to such terms under section 1370 of the National Flood Insurance Act of
1968 (42 U.S.C. 4121).
SEC. 100203. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

(a) Financing.--Section 1309(a) of the National Flood Insurance Act
of 1968 (42 U.S.C. 4016(a)) is amended by striking ``July 31, 2012'' and
inserting ``September 30, 2017''.
(b) Program Expiration.--Section 1319 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking ``July 31,
2012'' and inserting ``September 30, 2017''.
SEC. 100204. AVAILABILITY OF INSURANCE FOR MULTIFAMILY PROPERTIES.

Section 1305 of the National Flood Insurance Act of 1968 (42 U.S.C.
4012) is amended--
(1) in subsection (b)(2)(A), by inserting ``not described in
subsection (a) or (d)'' after ``properties''; and
(2) by adding at the end the following:

``(d) Availability of Insurance for Multifamily Properties.--
``(1) In general.--The Administrator shall make flood
insurance available to cover residential properties of 5 or more
residences. Notwithstanding any other provision of law, the

[[Page 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 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) <>  Multifamily properties.--In
the case of a property consisting of 5 or more residences, such
term shall have such meaning as the Director shall by regulation
provide.''.
(2) <>  Effective date.--The
amendments made by paragraph (1) shall become effective 90 days
after the date of enactment of this Act.

(b) Estimates of Premium Rates.--Section 1307(a)(1)(B) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4014(a)(1)(B)) is
amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by adding ``and'' at the end; and
(3) by inserting after clause (iii) the following:
``(iv) all costs, as prescribed by principles
and standards of practice in ratemaking adopted by
the American Academy of Actuaries and the Casualty
Actuarial Society, including--
``(I) an estimate of the expected
value of future costs,
``(II) all costs associated with the
transfer of risk, and
``(III) the costs associated with an
individual risk transfer with respect to
risk classes, as defined by the
Administrator,''.

(c) Increase in Annual Limitation on Premium Increases.--Section
1308(e) of the National Flood Insurance Act of 1968 (42 U.S.C. 4015(e))
is amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``or (3)''; and
(B) by inserting ``any properties'' after ``under
this title for'';
(2) in paragraph (1)--
(A) by striking ``any properties within any single''
and inserting ``within any single''; and
(B) by striking ``10 percent'' and inserting ``20
percent''; and
(3) by striking paragraph (2) and inserting the following:
``(2) described in subparagraphs (A) through (E) of section
1307(a)(2) shall be increased by 25 percent each year, until the
average risk premium rate for such properties is equal

[[Page 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) <>  Rule of
Construction.--Nothing in this section or the amendments made by this
section may be construed to affect the requirement under section 2(c) of
the Act entitled ``An Act to extend the National Flood Insurance
Program, and for other purposes'', approved May 31, 2012 (Public Law
112-123), that the first increase in chargeable risk premium rates for
residential properties which are not the primary residence of an
individual take effect on July 1, 2012.
SEC. 100207. PREMIUM ADJUSTMENT.

Section 1308 of the National Flood Insurance Act of 1968 (42 U.S.C.
4015), as amended by section 100205, is further amended by adding at the
end the following:
``(h) Premium Adjustment To Reflect Current Risk of Flood.--
Notwithstanding <> subsection (f), upon the
effective date of any revised or updated flood insurance rate map under
this Act, the Flood Disaster Protection Act of 1973, or the Biggert-
Waters Flood Insurance Reform Act of 2012, any property located in an
area that is participating in the national flood insurance program shall
have the risk premium rate charged for flood insurance on such property
adjusted to accurately reflect the current risk of flood to such
property, subject to any other provision of this Act. Any increase in
the risk premium rate charged for flood insurance on any property that
is covered by a flood insurance policy on the effective date of such an
update that is a result of such updating shall be phased in over a 5-
year period, at the rate of 20 percent for each year following such
effective date. In the case of any area that was not previously
designated as an area having special flood hazards and that, pursuant to
any issuance, revision, updating, or other change in a flood insurance
map, becomes designated as such an area, the chargeable risk premium
rate for flood insurance under this title that is purchased on or after
the date of enactment of this subsection with respect to any property
that is located within such area shall be phased in over a 5-year
period, at the rate of 20 percent for each year following the effective
date of such issuance, revision, updating, or change.''.
SEC. 100208. ENFORCEMENT.

Section 102(f)(5) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4012a(f)(5)) is amended--
(1) in the first sentence, by striking ``$350'' and
inserting ``$2,000''; and
(2) by striking the second sentence.

[[Page 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) <>  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 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 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. <> 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 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) <>  In general.--Beginning in
fiscal year 2013 and not ending until the fiscal year in which
the ratio required under subsection (b) is achieved, in each
such fiscal year the Administrator shall place in the Reserve
Fund an amount equal to not less than 7.5 percent of the reserve
ratio required under subsection (b).
``(2) Amount satisfied.--As soon as the ratio required under
subsection (b) is achieved, and except as provided in paragraph
(3), the Administrator shall not be required to set aside any
amounts for the Reserve Fund.
``(3) Exception.--If at any time after the ratio required
under subsection (b) is achieved, the Reserve Fund falls below
the required ratio under subsection (b), the Administrator shall
place in the Reserve Fund for that fiscal year an amount equal
to not less than 7.5 percent of the reserve ratio required under
subsection (b).

``(e) <>  Limitation on Reserve
Ratio.--In any given fiscal year, if the Administrator determines that
the reserve ratio required under subsection (b) cannot be achieved, the
Administrator shall submit a report to Congress that--
``(1) describes and details the specific concerns of the
Administrator regarding the consequences of the reserve ratio
not being achieved;
``(2) demonstrates how such consequences would harm the
long-term financial soundness of the flood insurance program;
and
``(3) indicates the maximum attainable reserve ratio for
that particular fiscal year.

``(f) Investment.--The Secretary of the Treasury shall invest such
amounts of the Reserve Fund as the Secretary determines advisable in
obligations issued or guaranteed by the United States.''.
SEC. 100213. REPAYMENT PLAN FOR BORROWING AUTHORITY.

(a) Repayment Plan Required.--Section 1309 of the National Flood
Insurance Act of 1968 (42 U.S.C. 4016) is amended by adding at the end
the following:
``(c) Upon the exercise of the authority established under
subsection (a), the Administrator shall transmit a schedule for
repayment of such amounts to--
``(1) the Secretary of the Treasury;
``(2) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
``(3) the Committee on Financial Services of the House of
Representatives.

``(d) <>  In connection with any funds
borrowed by the Administrator under the authority established in
subsection (a), the

[[Page 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. <> 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 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) <>  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 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) <> submit an annual report to
the Administrator that contains--
(A) a description of the activities of the Council;
(B) an evaluation of the status and performance of
flood insurance rate maps and mapping activities to
revise and update flood insurance rate maps, as required
under section 100216; and
(C) a summary of recommendations made by the Council
to the Administrator.

(d) Future Conditions Risk Assessment and Modeling Report.--
(1) <>  In general.--The Council shall
consult with scientists and technical experts, other Federal
agencies, States, and local communities to--
(A) develop recommendations on how to--
(i) ensure that flood insurance rate maps
incorporate the best available climate science to
assess flood risks; and
(ii) ensure that the Federal Emergency
Management Agency uses the best available
methodology to consider the impact of--
(I) the rise in the sea level; and
(II) future development on flood
risk; and
(B) not later than 1 year after the date of
enactment of this Act, prepare written recommendations
in a future conditions risk assessment and modeling
report and to submit such recommendations to the
Administrator.
(2) Responsibility of the administrator.--The Administrator,
as part of the ongoing program to review and update National
Flood Insurance Program rate maps under section 100216, shall
incorporate any future risk assessment submitted under paragraph
(1)(B) in any such revision or update.

(e) Chairperson.--The members of the Council shall elect 1 member to
serve as the chairperson of the Council (in this section referred to as
the ``Chairperson'').
(f) Coordination.--To ensure that the Council's recommendations are
consistent, to the maximum extent practicable, with national digital
spatial data collection and management standards, the Chairperson shall
consult with the Chairperson of the Federal Geographic Data Committee
(established pursuant to Office of Management and Budget Circular A-16).
(g) Compensation.--Members of the Council shall receive no
additional compensation by reason of their service on the Council.
(h) Meetings and Actions.--
(1) In general.--The Council shall meet not less frequently
than twice each year at the request of the Chairperson or a
majority of its members, and may take action by a vote of the
majority of the members.
(2) Initial meeting.--The Administrator, or a person
designated by the Administrator, shall request and coordinate
the initial meeting of the Council.

[[Page 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. <> 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 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 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) <>  upon the issuance of
any proposed map and any notice of an opportunity to
make an appeal relating to the proposed map, notify the
Senators for each State affected and each Member of the
House of Representatives for each congressional district
affected by the proposed map of any action taken by the
Administrator with respect to the proposed map or an
appeal relating to the proposed map.
(2) Required activities.--The communication and outreach
activities required under paragraph (1) shall include--
(A) <>  notifying property
owners when their properties become included in, or when
they are excluded from, an area covered by the mandatory
flood insurance purchase requirement under section 102
of the Flood Disaster Protection Act of 1973 (42 U.S.C.
4012a);
(B) educating property owners regarding the flood
risk and reduction of this risk in their community,
including the continued flood risks to areas that are no
longer subject to the flood insurance mandatory purchase
requirement;
(C) educating property owners regarding the benefits
and costs of maintaining or acquiring flood insurance,
including, where applicable, lower-cost preferred risk
policies under the National Flood Insurance Act of 1968
(42 U.S.C. 4011 et seq.) for such properties and the
contents of such properties;
(D) educating property owners about flood map
revisions and the process available to such owners to
appeal proposed changes in flood elevations through
their community, including by notifying local radio and
television stations; and
(E) encouraging property owners to maintain or
acquire flood insurance coverage.

(e) Community Remapping Request.--Upon the adoption by the
Administrator of any recommendation by the Technical Mapping Advisory
Council for reviewing, updating, or maintaining National Flood Insurance
Program rate maps in accordance with this section,

[[Page 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 <> shall establish a protocol
for the evaluation of such community map update requests.

(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator to carry out this section $400,000,000
for each of fiscal years 2013 through 2017.
SEC. 100217. SCOPE OF APPEALS.

Section 1363 of the National Flood Insurance Act of 1968 (42 U.S.C.
4104) is amended--
(1) in subsection (a)--
(A) by inserting ``and designating areas having
special flood hazards'' after ``flood elevations''; and
(B) by striking ``such determinations'' and
inserting ``such determinations and designations''; and
(2) in subsection (b)--
(A) in the first sentence, by inserting ``and
designations of areas having special flood hazards''
after ``flood elevation determinations''; and
(B) by amending the third sentence to read as
follows: ``The sole grounds for appeal shall be the
possession of knowledge or information indicating that
(1) the elevations being proposed by the Administrator
with respect to an identified area having special flood
hazards are scientifically or technically incorrect, or
(2) the designation of an identified special flood
hazard area is scientifically or technically
incorrect.''.
SEC. 100218. SCIENTIFIC RESOLUTION PANEL.

(a) Establishment.--Chapter III of the National Flood Insurance Act
of 1968 (42 U.S.C. 4101 et seq.) is amended by inserting after section
1363 (42 U.S.C. 4104) the following:
``SEC. 1363A. <> SCIENTIFIC RESOLUTION
PANEL.

``(a) Availability.--
``(1) In general.--Pursuant to the authority provided under
section 1363(e), the Administrator shall make available an
independent review panel, to be known as the Scientific
Resolution Panel, to any community--
``(A) that has--
``(i) filed a timely map appeal in accordance
with section 1363;
``(ii) completed 60 days of consultation with
the Federal Emergency Management Agency on the
appeal; and
``(iii) not allowed more than 120 days, or
such longer period as may be provided by the
Administrator by waiver, to pass since the end of
the appeal period; or
``(B) that has received an unsatisfactory ruling
under the map revision process established pursuant to
section 1360(f).
``(2) Appeals by owners and lessees.--If a community and an
owner or lessee of real property within the community

[[Page 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) <>  the Scientific
Resolution Panel shall make a determination with respect
to the appeals in accordance with subsection (c).
``(3) Definition.--For purposes of paragraph (1)(B), an
`unsatisfactory ruling' means that a community--
``(A) received a revised Flood Insurance Rate Map
from the Federal Emergency Management Agency, via a
Letter of Final Determination, after September 30, 2008,
and prior to the date of enactment of this section;
``(B) has subsequently applied for a Letter of Map
Revision or Physical Map Revision with the Federal
Emergency Management Agency; and
``(C) has received an unfavorable ruling on their
request for a map revision.

``(b) Membership.--The Scientific Resolution Panel made available
under subsection (a) shall consist of 5 members with expertise that
relates to the creation and study of flood hazard maps and flood
insurance. The Scientific Resolution Panel may include representatives
from Federal agencies not involved in the mapping study in question and
from other impartial experts. Employees of the Federal Emergency
Management Agency may not serve on the Scientific Resolution Panel.
``(c) Determination.--
``(1) <>  In general.--Following
deliberations, and not later than 90 days after its formation,
the Scientific Resolution Panel shall issue a determination of
resolution of the dispute. Such determination shall set forth
recommendations for the base flood elevation determination or
the designation of an area having special flood hazards that
shall be reflected in the Flood Insurance Rate Maps.
``(2) Basis.--The determination of the Scientific Resolution
Panel shall be based on--
``(A) data previously provided to the Administrator
by the community, and, in the case of a dispute
submitted under subsection (a)(2), an owner or lessee of
real property in the community; and
``(B) data provided by the Administrator.
``(3) No alternative determinations permissible.--The
Scientific Resolution Panel--
``(A) shall provide a determination of resolution of
a dispute that--
``(i) is either in favor of the Administrator
or in favor of the community on each distinct
element of the dispute; or
``(ii) in the case of a dispute submitted
under subsection (a)(2), is in favor of the
Administrator, in favor of the community, or in
favor of the owner or lessee of real property in
the community on each distinct element of the
dispute; and
``(B) may not offer as a resolution any other
alternative determination.
``(4) Effect of determination.--

[[Page 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) <>  Written justification not
to enforce.--If the Administrator elects not to
implement the determination of the Scientific Resolution
Panel pursuant to subparagraph (A), then not later than
60 days after the issuance of the determination, the
Administrator shall issue a written justification
explaining such election.
``(C) Appeal of determination not to enforce.--If
the Administrator elects not to implement the
determination of the Scientific Resolution Panel
pursuant to subparagraph (A), the community may appeal
the determination of the Administrator as provided for
under section 1363(g).

``(d) Maps Used for Insurance and Mandatory Purchase Requirements.--
With respect to any community that has a dispute that is being
considered by the Scientific Resolution Panel formed pursuant to this
subsection, the Federal Emergency Management Agency shall ensure that
for each such community that--
``(1) the Flood Insurance Rate Map described in the most
recently issued Letter of Final Determination shall be in force
and effect with respect to such community; and
``(2) flood insurance shall continue to be made available to
the property owners and residents of the participating
community.''.

(b) <>  Conforming Amendments.--
(1) Administrative review.--Section 1363(e) of the National
Flood Insurance Act of 1968 (42 U.S.C. 4104(e)) is amended, in
the second sentence, by striking ``an independent scientific
body or appropriate Federal agency for advice'' and inserting
``the Scientific Resolution Panel provided for in section
1363A''.
(2) Judicial review.--The first sentence of section 1363(g)
of the National Flood Insurance Act of 1968 (42 U.S.C. 4104(g))
is amended by striking ``Any appellant'' and inserting ``Except
as provided in section 1363A, any appellant''.
SEC. 100219. REMOVAL OF LIMITATION ON STATE CONTRIBUTIONS FOR
UPDATING FLOOD MAPS.

Section 1360(f)(2) of the National Flood Insurance Act of 1968 (42
U.S.C. 4101(f)(2)) is amended by striking ``, but which may not exceed
50 percent of the cost of carrying out the requested revision or
update''.
SEC. <> 100220. COORDINATION.

(a) Interagency Budget Crosscut and Coordination Report.--
(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 933]]

order to coordinate the efforts of the Nation to reduce its
vulnerability to flooding hazards.
(2) <>  Report.--Not later than 30
days after the submission of the budget of the United States
Government by the President to Congress, the Director of the
Office of Management and Budget, in coordination with the
Federal Emergency Management Agency, the United States
Geological Survey, the National Oceanic and Atmospheric
Administration, the Corps of Engineers, and other Federal
agencies, as appropriate, shall submit to the appropriate
authorizing and appropriating committees of the Senate and the
House of Representatives an interagency budget crosscut and
coordination report, certified by the Secretary or head of each
such agency, that--
(A) contains an interagency budget crosscut report
that displays relevant sections of the budget proposed
for each of the Federal agencies working on flood risk
determination data and digital elevation models,
including any planned interagency or intra-agency
transfers; and
(B) describes how the efforts aligned with such
sections complement one another.

(b) Duties of the Administrator.--In carrying out sections 100215
and 100216, the Administrator shall--
(1) participate, pursuant to section 216 of the E-Government
Act of 2002 (44 U.S.C. 3501 note), in the establishment of such
standards and common protocols as are necessary to assure the
interoperability of geospatial data for all users of such
information;
(2) coordinate with, seek assistance and cooperation of, and
provide a liaison to the Federal Geographic Data Committee
pursuant to the Office of Management and Budget Circular A-16
and Executive Order 12906 (43 U.S.C. 1457 note; relating to the
National Spatial Data Infrastructure) for the implementation of
and compliance with such standards;
(3) integrate with, leverage, and coordinate funding of, to
the maximum extent practicable, the current flood mapping
activities of each unit of State and local government;
(4) integrate with, leverage, and coordinate, to the maximum
extent practicable, the current geospatial activities of other
Federal agencies and units of State and local government; and
(5) develop a funding strategy to leverage and coordinate
budgets and expenditures, and to maintain or establish joint
funding and other agreement mechanisms with other Federal
agencies and units of State and local government to share in the
collection and utilization of geospatial data among all
governmental users.
SEC. 100221. INTERAGENCY COORDINATION STUDY.

(a) <>  In General.--The Administrator shall enter
into a contract with the National Academy of Public Administration to
conduct a study on how the Federal Emergency Management Agency--
(1) should improve interagency and intergovernmental
coordination on flood mapping, including a funding strategy to
leverage and coordinate budgets and expenditures; and
(2) can establish joint funding mechanisms with other
Federal agencies and units of State and local government to
share

[[Page 934]]

the collection and utilization of data among all governmental
users.

(b) <>  Timing.--A contract entered into under
subsection (a) shall require that, not later than 180 days after the
date of enactment of this subtitle, the National Academy of Public
Administration shall report the findings of the study required under
subsection (a) to--
(1) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(2) the Committee on Financial Services of the House of
Representatives;
(3) the Committee on Appropriations of the Senate; and
(4) the Committee on Appropriations of the House of
Representatives.
SEC. 100222. NOTICE OF FLOOD INSURANCE AVAILABILITY UNDER RESPA.

Section 5(b) of the Real Estate Settlement Procedures Act of 1974
(12 U.S.C. 2604(b)), as amended by section 1450 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (Public Law 111-203; 124 Stat.
2174), is amended by adding at the end the following:
``(14) An explanation of flood insurance and the
availability of flood insurance under the National Flood
Insurance Program or from a private insurance company, whether
or not the real estate is located in an area having special
flood hazards.''.
SEC. 100223. PARTICIPATION IN STATE DISASTER CLAIMS MEDIATION
PROGRAMS.

Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended by inserting after section 1313 (42 U.S.C.
4020) the following:
``SEC. 1314. <> PARTICIPATION IN STATE
DISASTER CLAIMS MEDIATION PROGRAMS.

``(a) Requirement To Participate.--In the case of the occurrence of
a major disaster, as defined in section 102 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122), that may
have resulted in flood damage covered under the national flood insurance
program established under this title and other personal lines
residential property insurance coverage offered by a State regulated
insurer, upon a request made by the insurance commissioner of a State
(or such other official responsible for regulating the business of
insurance in the State) for the participation of representatives of the
Administrator in a program sponsored by such State for nonbinding
mediation of insurance claims resulting from a major disaster, the
Administrator shall cause representatives of the national flood
insurance program to participate in such a State program where claims
under the national flood insurance program are involved to expedite
settlement of flood damage claims resulting from such disaster.
``(b) Extent of Participation.--In satisfying the requirements of
subsection (a), the Administrator shall require that each representative
of the Administrator--
``(1) <>  be certified for purposes of
the national flood insurance program to settle claims against
such program resulting from such disaster in amounts up to the
limits of policies under such program;

[[Page 935]]

``(2) <>  attend State-sponsored mediation
meetings regarding flood insurance claims resulting from such
disaster at such times and places as may be arranged by the
State;
``(3) participate in good-faith negotiations toward the
settlement of such claims with policyholders of coverage made
available under the national flood insurance program; and
``(4) finalize the settlement of such claims on behalf of
the national flood insurance program with such policyholders.

``(c) Coordination.--Representatives of the Administrator shall at
all times coordinate their activities with insurance officials of the
State and representatives of insurers for the purposes of consolidating
and expediting settlement of claims under the national flood insurance
program resulting from such disaster.
``(d) Qualifications of Mediators.--Each State mediator
participating in State-sponsored mediation under this section shall be--
``(1)(A) a member in good standing of the State bar in the
State in which the mediation is to occur with at least 2 years
of practical experience; and
``(B) an active member of such bar for at least 1 year prior
to the year in which such mediator's participation is sought; or
``(2) a retired trial judge from any United States
jurisdiction who was a member in good standing of the bar in the
State in which the judge presided for at least 5 years prior to
the year in which such mediator's participation is sought.

``(e) Mediation Proceedings and Documents Privileged.--As a
condition of participation, all statements made and documents produced
pursuant to State-sponsored mediation involving representatives of the
Administrator shall be deemed privileged and confidential settlement
negotiations made in anticipation of litigation.
``(f) Liability, Rights, or Obligations Not Affected.--Participation
in State-sponsored mediation, as described in this section does not--
``(1) affect or expand the liability of any party in
contract or in tort; or
``(2) affect the rights or obligations of the parties, as
established--
``(A) in any regulation issued by the Administrator,
including any regulation relating to a standard flood
insurance policy;
``(B) under this title; and
``(C) under any other provision of Federal law.

``(g) Exclusive Federal Jurisdiction.--Participation in State-
sponsored mediation shall not alter, change, or modify the original
exclusive jurisdiction of United States courts, as set forth in this
title.
``(h) Cost Limitation.--Nothing in this section shall be construed
to require the Administrator or a representative of the Administrator to
pay additional mediation fees relating to flood insurance claims
associated with a State-sponsored mediation program in which such
representative of the Administrator participates.
``(i) Exception.--In the case of the occurrence of a major disaster
that results in flood damage claims under the national flood

[[Page 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) <>  Representatives of the Administrator.--
For purposes of this section, the term `representatives of the
Administrator' means representatives of the national flood insurance
program who participate in the appeals process established under section
205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of
2004 (42 U.S.C. 4011 note).''.
SEC. 100224. <> OVERSIGHT AND EXPENSE
REIMBURSEMENTS OF INSURANCE
COMPANIES.

(a) Submission of Biennial Reports.--
(1) To the administrator.--Not later than 20 days after the
date of enactment of this Act, each property and casualty
insurance company participating in the Write Your Own program
shall submit to the Administrator any biennial report required
by the Federal Emergency Management Agency to be prepared in the
prior 5 years by such company.
(2) To gao.--Not later than 10 days after the submission of
the biennial reports under paragraph (1), the Administrator
shall submit all such reports to the Comptroller General of the
United States.
(3) Notice to congress of failure to comply.--The
Administrator shall notify and report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
on any property and casualty insurance company participating in
the Write Your Own program that failed to submit its biennial
reports as required under paragraph (1).
(4) Failure to comply.--A property and casualty insurance
company participating in the Write Your Own program which fails
to comply with the reporting requirement under this subsection
or the requirement under section 62.23(j)(1) of title 44, Code
of Federal Regulations (relating to biennial audit of the flood
insurance financial statements) shall be subject to a civil
penalty in an amount of not more than $1,000 per day for each
day that the company remains in noncompliance with either such
requirement.

(b) Methodology To Determine Reimbursed Expenses.--Not later
than <> 180 days after the date of enactment of this
Act, the Administrator shall develop a methodology for determining the
appropriate amounts that property and casualty insurance companies
participating in the Write Your Own program should be reimbursed for
selling, writing, and servicing flood insurance policies and adjusting
flood insurance claims on behalf of the National Flood Insurance
Program. The methodology shall be developed using actual expense data
for the flood insurance line and can be derived from--
(1) flood insurance expense data produced by the property
and casualty insurance companies;

[[Page 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 <> 12 months after
the date of enactment of this Act, the Administrator shall issue a rule
to formulate revised expense reimbursements to property and casualty
insurance companies participating in the Write Your Own program for
their expenses (including their operating and administrative expenses
for adjustment of claims) in selling, writing, and servicing standard
flood insurance policies, including how such companies shall be
reimbursed in both catastrophic and noncatastrophic years. Such
reimbursements shall be structured to ensure reimbursements track the
actual expenses, including standard business costs and operating
expenses, of such companies as closely as practicably possible.

(e) Report of the Administrator.--Not later than 60 days after the
effective date of the final rule issued pursuant to subsection (d), the
Administrator shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives a report containing--
(1) the specific rationale and purposes of such rule;
(2) the reasons for the adoption of the policies contained
in such rule; and
(3) the degree to which such rule accurately represents the
true operating costs and expenses of property and casualty
insurance companies participating in the Write Your Own program.

(f) GAO Study and Report on Expenses of Write Your Own Program.--
(1) Study.--Not later than 180 days after the effective date
of the final rule issued pursuant to subsection (d), the
Comptroller General of the United States shall--
(A) conduct a study on the efficacy, adequacy, and
sufficiency of the final rules issued pursuant to
subsection (d); and
(B) report to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives on
the findings of the study conducted under subparagraph
(A).
(2) GAO authority.--In conducting the study and report
required under paragraph (1), the Comptroller General--
(A) may use any previous findings, studies, or
reports that the Comptroller General previously
completed on the Write Your Own program;
(B) <>  shall determine if--

[[Page 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 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 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 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 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. <> 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 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) <>  Implementation.--The Administrator and the
Secretary of the Army, acting through the Chief of Engineers, shall
implement the process developed by the task force under subsection (b)
not later than 1 year after the date of enactment of this Act and shall
complete the process under subsection (b) not later than 2 years after
the date of enactment of this Act.

(d) Reports.--The Administrator and the Secretary of the Army,
acting through the Chief of Engineers, in cooperation with the National
Committee on Levee Safety, shall jointly submit to the Committee on
Banking, Housing, and Urban Affairs and the Committee on Environment and
Public Works of the Senate and the Committee on Financial Services, the
Committee on Transportation and Infrastructure, and the Committee on
Natural Resources of the House of Representatives reports concerning the
activities of the task force and the implementation of the process
developed by the task force under subsection (b), including--
(1) an interim report, not later than 180 days after the
date of enactment of this Act; and
(2) a final report, not later than 1 year after the date of
enactment of this Act.

(e) Termination.--The task force shall terminate on the date of
submission of the report under subsection (d)(2).
SEC. 100227. <> FLOOD IN PROGRESS
DETERMINATIONS.

(a) Report.--
(1) Review.--The Administrator shall review--
(A) the processes and procedures for determining
that a flood event has commenced or is in progress for
purposes of flood insurance coverage made available
under the National Flood Insurance Program;
(B) the processes and procedures for providing
public notification that such a flood event has
commenced or is in progress;
(C) the processes and procedures regarding the
timing of public notification of flood insurance
requirements and availability; and
(D) the effects and implications that weather
conditions, including rainfall, snowfall, projected
snowmelt, existing water levels, and other 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 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) <>  Eligible coverage.--
For purposes of this subsection, the term ``eligible coverage''
means coverage under a new contract for flood insurance coverage
under the National Flood Insurance Program, or a modification to
coverage under an existing flood insurance contract, for
property damaged by the flooding of the Missouri River that
commenced on June 1, 2011, that was purchased or made during the
period beginning May 1, 2011, and ending June 6, 2011.
(2) Effective dates.--Notwithstanding section 1306(c) of the
National Flood Insurance Act of 1968 (42 U.S.C. 4013(c)), or any
other provision of law, any eligible coverage shall--
(A) be deemed to take effect on the date that is 30
days after the date on which all obligations for the
eligible coverage (including completion of the
application and payment of any initial premiums owed)
are satisfactorily completed; and
(B) cover damage to property occurring after the
effective date described in subparagraph (A) that
resulted from the flooding of the Missouri River that
commenced on June 1, 2011, if the property did not
suffer damage or loss as a result of such flooding
before the effective date described in subparagraph (A).

(c) <>  Timely Notification.--Not later than 90
days after the date on which the Administrator submits the report
required under subsection (a)(2), the Administrator shall, taking into
consideration the results of the review under subsection (a)(1)(B),
develop procedures for providing timely notification, to the extent
practicable, to policyholders who have purchased flood insurance
coverage under the National Flood Insurance Program within 30 days of a
determination of a flood in progress and who may be affected by the
flood of the determination and how the determination may affect their
coverage.
SEC. 100228. CLARIFICATION OF RESIDENTIAL AND COMMERCIAL COVERAGE
LIMITS.

Section 1306(b) of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(b)) is amended--
(1) in paragraph (2)--
(A) by striking ``in the case of any residential
property'' and inserting ``in the case of any
residential building designed for the occupancy of from
1 to 4 families''; and
(B) by striking ``shall be made available to every
insured upon renewal and every applicant for insurance
so as to enable such insured or applicant to receive
coverage up to a total amount (including such limits
specified in paragraph (1)(A)(i)) of $250,000'' and
inserting ``shall be made available, with respect to any
single such building, up to an aggregate liability
(including such limits specified in paragraph (1)(A)(i))
of $250,000''; and
(2) in paragraph (4)--

[[Page 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) <>  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 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. <> 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 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) <>  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) <>  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 948]]

(i) <>  consult with the
owner of the flood protection system--
(I) 6 months after the date of a
determination under subsection (a);
(II) 18 months after the date of a
determination under subsection (a); and
(III) 36 months after the date of a
determination under subsection (a); and
(ii) after each consultation under clause (i),
determine whether the reconstruction or
improvement is reasonably likely to be completed
in accordance with the project schedule described
in subsection (a)(2)(A)(iv); and
(B) a requirement that, if the Administrator makes a
determination under subparagraph (A)(ii) that
reconstruction or improvement is not reasonably likely
to be completed in accordance with the project schedule,
the Administrator shall--
(i) <>  not
later than 30 days after the date of the
determination, notify the owner of the flood
protection system of the determination and provide
the rationale and evidence for the determination;
and
(ii) provide the owner of the flood protection
system the opportunity to appeal the
determination.
(2) Termination.--The Administrator shall terminate the
eligibility for flood insurance coverage under subsection (a)
for persons residing in a community with respect to which the
Administrator made a determination under subsection (a) if--
(A) the Administrator determines that the community
has not made adequate continuing progress; or
(B) on the date that is 5 years after the date on
which the reconstruction or construction of the
improvement commences, the project has not been
completed.
(3) Waiver.--A person whose eligibility would otherwise be
terminated under paragraph (2)(B) shall continue to be eligible
to purchase flood insurance coverage described in subsection (a)
if the Administrator determines--
(A) the community has made adequate continuing
progress on the reconstruction or improvement of a flood
protection system; and
(B) <>  there is a reasonable
expectation that the reconstruction or improvement of
the flood protection system will be completed not later
than 1 year after the date of the determination under
this paragraph.
(4) Risk premium rate.--If the Administrator terminates the
eligibility of persons residing in a community to purchase flood
insurance coverage described in subsection (a), the
Administrator shall establish an appropriate risk premium rate
for flood insurance coverage under the National Flood Insurance
Program for persons residing in the community that purchased
flood insurance coverage before the date on which the
termination of eligibility takes effect, taking into
consideration the then-current state of the flood protection
system.

(c) Additional Authority.--
(1) Additional authority.--Notwithstanding subsection (a),
in exceptional and exigent circumstances, the Administrator

[[Page 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) <>  the Administrator
submits a written report setting forth findings of the
exceptional and exigent circumstances on which the
Administrator based an affirmative determination to the
Committee on Banking, Housing, and Urban Affairs of the
Senate, and the Committee on Financial Services of the
House of Representatives not later than 15 days before
making the determination; and
(C) <>  the eligibility for flood
insurance coverage at a risk premium rate determined
under this subsection terminates no later than 1 year
after the date on which the Administrator makes the
determination.
(2) Limitation.--Upon termination of eligibility under
paragraph (1)(C), a community may submit another request
pursuant to paragraph (1)(A). The Administrator may make no more
than two determinations under paragraph (1) with respect to
persons residing within any single requesting community.
(3) Termination.--The authority provided under paragraphs
(1) and (2) shall terminate two years after the enactment of
this Act.
SEC. 100231. STUDIES AND REPORTS.

(a) Report on Improving the National Flood Insurance Program.--Not
later than 1 year after the date of enactment of this Act, the
Comptroller General of the United States shall conduct a study and
submit a report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the House of
Representatives, on--
(1) the number of flood insurance policy holders currently
insuring--
(A) a residential structure up to the maximum
available coverage amount, as established in section
61.6 of title 44, Code of Federal Regulations, of--
(i) $250,000 for the structure; and
(ii) $100,000 for the contents of such
structure; or
(B) a commercial structure up to the maximum
available coverage amount, as established in section
61.6 of title 44, Code of Federal Regulations, of
$500,000;
(2) the increased losses the National Flood Insurance
Program would have sustained during the 2004 and 2005 hurricane

[[Page 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) <>  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 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) <>  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 952]]

(1) conduct a review of the 3 largest contractors the
Administrator uses in administering the National Flood Insurance
Program; and
(2) <>  not later than 18 months
after the date of enactment of this Act, submit a report on the
findings of such review to the Administrator, the Committee on
Banking, Housing, and Urban Affairs of the Senate, and the
Committee on Financial Services of the House of Representatives.

(e) Study and Report on Graduated Risk.--
(1) Study.--
(A) <>  Study required.--The
Administrator shall enter into a contract under which
the National Academy of Sciences shall conduct a study
exploring methods for understanding graduated risk
behind levees and the associated land development,
insurance, and risk communication dimensions.
(B) Contents of study.--The study under this
paragraph shall--
(i) research, review, and recommend current
best practices for estimating direct annualized
flood losses behind levees for residential and
commercial structures;
(ii) rank each best practice recommended under
clause (i) based on the best value, balancing
cost, scientific integrity, and the inherent
uncertainties associated with all aspects of the
loss estimate, including geotechnical engineering,
flood frequency estimates, economic value, and
direct damages;
(iii) research, review, and identify current
best floodplain management and land use practices
behind levees that effectively balance social,
economic, and environmental considerations as part
of an overall flood risk management strategy;
(iv) identify areas in which the best
floodplain management and land use practices
described in clause (iii) have proven effective
and recommend methods and processes by which such
practices could be applied more broadly across the
United States, given the variety of different
flood risks, State and local legal frameworks, and
evolving judicial opinions;
(v) research, review, and identify a variety
of flood insurance pricing options for flood
hazards behind levees that are actuarially sound
and based on the flood risk data developed using
the 3 best practices recommended under clause (i)
that have the best value as determined under
clause (ii);
(vi) evaluate and recommend methods to reduce
insurance costs through creative arrangements
between insureds and insurers while keeping a
clear accounting of how much financial risk is
being borne by various parties such that the
entire risk is accounted for, including
establishment of explicit limits on disaster aid
or other assistance in the event of a flood; and
(vii) taking into consideration the
recommendations under clauses (i) through (iii),
recommend approaches to communicate the associated
risks to

[[Page 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) <>  conduct a separate study to assess a
broad range of options, methods, and strategies for privatizing
the National Flood Insurance Program; and
(2) submit a report to the Committee on Financial Services
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate with recommendations
for the best manner to accomplish the privatization described in
paragraph (1).

(b) Private Risk-management Initiatives.--The Administrator may
carry out such private risk-management initiatives as are otherwise
authorized under applicable law, as the Administrator considers
appropriate to determine the capacity of private insurers, reinsurers,
and financial markets to assist communities, on a voluntary basis only,
in managing the full range of financial risks associated with flooding.
(c) Reinsurance Assessment.--
(1) <>  Private market pricing
assessment.--Not later than 12 months after the date of
enactment of this Act, the Administrator shall submit to
Congress a report that--
(A) assesses the capacity of the private
reinsurance, capital, and financial markets to assist
communities, on a voluntary basis, in managing the full
range of financial risks associated with flooding by
requesting proposals to assume a portion of the
insurance risk of the National Flood Insurance Program;
(B) describes any responses to the request for
proposals under subparagraph (A);
(C) assesses whether the rates and terms contained
in any proposals received by the Administrator are--
(i) reasonable and appropriate; and
(ii) in an amount sufficient to maintain the
ability of the National Flood Insurance Program to
pay claims;
(D) describes the extent to which carrying out the
proposals received by the Administrator would minimize
the likelihood that the Administrator would use the
borrowing authority under section 1309 of the National
Flood Insurance Act of 1968 (42 U.S.C. 4016);
(E) describes fluctuations in historical reinsurance
rates; and

[[Page 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 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) <>  Assessment of Claims-paying
Ability.--
(1) Assessment.--
(A) Assessment required.--
(i) In general.--Not later than September 30
of each year, the Administrator shall conduct an
assessment of the ability of the National Flood
Insurance Program to pay claims.
(ii) Private market reinsurance.--The
assessment under this paragraph for any year in
which the Administrator exercises the authority
under section 1335(a)(2) of the National Flood
Insurance Act of 1968 (42 U.S.C. 4055(a)(2)), as
added by this section, to secure reinsurance of
coverage provided by the National Flood Insurance
Program from the private market shall include
information relating the use of private sector
reinsurance and reinsurance equivalents by the
Administrator, whether or not the Administrator
used the borrowing authority under section 1309 of
the National Flood Insurance Act of 1968 (42
U.S.C. 4016).
(iii) First assessment.--The Administrator
shall conduct the first assessment required under
this paragraph not later than September 30, 2012.
(B) Considerations.--In conducting an assessment
under subparagraph (A), the Administrator shall take
into consideration regional concentrations of coverage
written by the National Flood Insurance Program, peak
flood zones, and relevant mitigation measures.
(2) Annual report of the administrator of activities under
the national flood insurance program.--The Administrator shall--
(A) include the results of each assessment in the
report required under section 100231(b); and
(B) <>  not later than 30
days after the date on which the Administrator completes
an assessment required under paragraph (1), make the
results of the assessment available to the public.
SEC. 100233. GAO STUDY ON BUSINESS INTERRUPTION AND ADDITIONAL
LIVING EXPENSES COVERAGES.

(a) Study.--The Comptroller General of the United States shall
conduct a study concerning--
(1) the availability of additional living expenses and
business interruption coverage in the private marketplace for
flood insurance;
(2) the feasibility of allowing the National Flood Insurance
Program to offer such coverage at the option of the consumer;
(3) the estimated cost to consumers if the National Flood
Insurance Program priced such optional coverage at true
actuarial rates;

[[Page 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. <> 100234. POLICY DISCLOSURES.

(a) In General.--Notwithstanding any other provision of law, in
addition to any other disclosures that may be required, each policy
under the National Flood Insurance Program shall state all conditions,
exclusions, and other limitations pertaining to coverage under the
subject policy, regardless of the underlying insurance product, in plain
English, in boldface type, and in a font size that is twice the size of
the text of the body of the policy.
(b) Violations.--The Administrator may impose a civil penalty of not
more than $50,000 on any person that fails to comply with subsection
(a).
SEC. 100235. REPORT ON INCLUSION OF BUILDING CODES IN FLOODPLAIN
MANAGEMENT CRITERIA.

Not later than <> 6 months after the date of
enactment of this Act, the Administrator of the Federal Emergency
Management Agency shall conduct a study and submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
regarding the impact, effectiveness, and feasibility of amending section
1361 of the National Flood Insurance Act of 1968 (42 U.S.C. 4102) to
include widely used and nationally recognized building codes as part of
the floodplain management criteria developed under such section, and
shall determine--
(1) the regulatory, financial, and economic impacts of such
a building code requirement on homeowners, States and local
communities, local land use policies, and the Federal Emergency
Management Agency;
(2) the resources required of State and local communities to
administer and enforce such a building code requirement;
(3) the effectiveness of such a building code requirement in
reducing flood-related damage to buildings and contents;
(4) the impact of such a building code requirement on the
actuarial soundness of the National Flood Insurance Program;
(5) the effectiveness of nationally recognized codes in
allowing innovative materials and systems for flood-resistant
construction;
(6) the feasibility and effectiveness of providing an
incentive in lower premium rates for flood insurance coverage
under such Act for structures meeting whichever of such widely
used and nationally recognized building codes or any applicable
local building codes provides greater protection from flood
damage;

[[Page 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) <>  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 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) <>  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) <>  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 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 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) <>  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 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) <>  certifies to the
Administrator and the Chief of Engineers that the
community will continue to participate in the National
Flood Insurance Program.

(b) Authority.--Notwithstanding any other prohibition on
construction on property acquired with funding from the Federal
Emergency Management Agency for conversion to open space purposes, the
Administrator shall allow the construction of a permanent flood risk
reduction levee by a State, local, or tribal government on covered
hazard mitigation land if--
(1) <>  the Administrator and the
Chief of Engineers make a determination that--
(A) construction of the proposed permanent flood
risk reduction levee would more effectively mitigate
against flooding risk than an open floodplain or other
flood risk reduction measures;
(B) the proposed permanent flood risk reduction
levee complies with Federal, State, and local
requirements, including mitigation of adverse impacts
and implementation of floodplain management
requirements, which shall include an evaluation of
whether the construction, operation, and maintenance of
the proposed levee--
(i) would continue to meet best available
industry standards and practices;
(ii) would be the most cost-effective measure
to protect against the assessed flood risk; and
(iii) minimizes future costs to the Federal
Government;
(C) the State, local, or tribal government seeking
to construct the proposed permanent flood risk reduction
levee has provided an adequate maintenance plan that
documents the procedures the State, local, or tribal
government will use to ensure that the stability,
height, and overall integrity of the proposed levee and
the structure and systems of the proposed levee are
maintained, including--
(i) specifying the maintenance activities to
be performed;
(ii) specifying the frequency with which
maintenance activities will be performed;

[[Page 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) <>  Review.--The Chief of
Engineers shall review each certification submitted under
paragraph (1) and determine whether the State, local, or tribal
government has complied with the maintenance plan.
SEC. 100241. INSURANCE COVERAGE FOR PRIVATE PROPERTIES AFFECTED BY
FLOODING FROM FEDERAL LANDS.

Section 1306(c)(2) of the National Flood Insurance Act of 1968 (42
U.S.C. 4013(c)(2)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) the initial purchase of flood insurance
coverage for private property if--
``(i) <>  the
Administrator determines that the property is
affected by flooding on Federal land that is a
result of, or is exacerbated by, post-wildfire
conditions, after consultation with an authorized
employee of the Federal agency that has
jurisdiction of the land on which the wildfire
that caused the post-wildfire conditions occurred;
and
``(ii) <>  the flood
insurance coverage was purchased not later than 60
days after the fire containment date, as
determined by the appropriate Federal employee,
relating to the wildfire that caused the post-
wildfire conditions described in clause (i).''.
SEC. 100242. PERMISSIBLE LAND USE UNDER FEDERAL FLOOD INSURANCE
PLAN.

Chapter I of the National Flood Insurance Act of 1968 (42 U.S.C.
4011 et seq.) is amended by adding at the end the following:

[[Page 963]]

``SEC. <> 1325. TREATMENT OF SWIMMING POOL
ENCLOSURES OUTSIDE OF HURRICANE SEASON.

``(a) <>  In General.--Notwithstanding any other
provision of law, including the adequate land use and control measures
developed pursuant to section 1361 and applicable to non-one- and two-
family structures located within coastal areas, as identified by the
Administrator, the following may be permitted:
``(1) Nonsupporting breakaway walls in the space below the
lowest elevated floor of a building, if the space is used solely
for a swimming pool between November 30 and June 1 of any year,
in an area designated as Zone V on a flood insurance rate map.
``(2) Openings in walls in the space below the lowest
elevated floor of a building, if the space is used solely for a
swimming pool between November 30 and June 1 of any year, in an
area designated as Zone A on a flood insurance rate map.

``(b) Rule of Construction.--Nothing in subsection (a) shall be
construed to alter the terms and conditions of eligibility and
insurability of coverage for a building under the standard flood
insurance policy under the national flood insurance program.''.
SEC. 100243. CDBG ELIGIBILITY FOR FLOOD INSURANCE OUTREACH
ACTIVITIES AND COMMUNITY BUILDING
CODE ADMINISTRATION GRANTS.

(a) Amendments.--Section 105(a) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)) is amended--
(1) by redesignating paragraph (25) as paragraph (26);
(2) by redesignating the second paragraph designated as
paragraph (24) (relating to tornado-safe shelters) as paragraph
(25);
(3) in paragraph (24) (relating to homeownership among
persons with low and moderate income), by striking ``and'' at
the end;
(4) in paragraph (25), as so redesignated, by striking
``and'' at the end;
(5) in paragraph (26), as so redesignated, by striking the
period at the end and inserting a semicolon; and
(6) by adding at the end the following new paragraphs:
``(27) supplementing existing State or local funding for
administration of building code enforcement by local building
code enforcement departments, including for increasing staffing,
providing staff training, increasing staff competence and
professional qualifications, and supporting individual
certification or departmental accreditation, and for capital
expenditures specifically dedicated to the administration of the
building code enforcement department, except that, to be
eligible to use amounts as provided in this paragraph--
``(A) <>  a building code
enforcement department shall provide matching, non-
Federal funds to be used in conjunction with amounts
used under this paragraph in an amount--
``(i) in the case of a building code
enforcement department serving an area with a
population of more than 50,000, equal to not less
than 50 percent of the total amount of any funds
made available under this title that are used
under this paragraph;

[[Page 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) <>  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 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) <>  notify such
owners of where to obtain information regarding
how to obtain such coverage, including a telephone
number, mailing address, and Internet site of the
Administrator of the Federal Emergency Management
Agency (in this paragraph referred to as the
`Administrator') where such information is
available; and
``(vii) educate local real estate agents in
communities participating in the national flood
insurance program regarding the program and the
availability of coverage under the program for
owners and renters of properties in such
communities, and establish coordination and
liaisons with such real estate agents to
facilitate purchase of coverage under the National
Flood Insurance Act of 1968 and increase awareness
of flood risk reduction;
``(B) in any fiscal year, a local governmental
agency may not use an amount under this paragraph that
exceeds 3 times the amount that the agency certifies, as
the Secretary, in consultation with the Administrator,
shall require, that the agency will contribute from non-
Federal funds to be used with such amounts used under
this paragraph only for carrying out activities
described in subparagraph (A); and for purposes of this
subparagraph, the term `non-Federal funds' includes
State or local government agency amounts, in-kind
contributions, any salary paid to staff to carry out the
eligible activities of the local governmental agency
involved, the value of the time and services contributed
by volunteers to carry out such services (at a rate
determined by the Secretary), and the value of any
donated material or building and the value of any lease
on a building;
``(C) a local governmental agency that uses amounts
as provided under this paragraph may coordinate or
contract with other agencies and entities having
particular capacities, specialties, or experience with
respect to certain populations or constituencies,
including elderly or disabled families or persons, to
carry out activities described in subparagraph (A) with
respect to such populations or constituencies; and
``(D) <>  each local
government agency that uses amounts as provided under
this paragraph shall submit a report to the Secretary
and the Administrator, not later than 12 months after
such amounts are first received, which shall include
such information as the Secretary and the Administrator
jointly consider appropriate to describe the activities
conducted using such amounts and the effect of such
activities on the retention or acquisition of flood
insurance coverage.''.

[[Page 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 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. <> The Administrator shall
promulgate regulations to carry out this subsection.''.
SEC. 100247. FIO STUDY ON RISKS, HAZARDS, AND INSURANCE.

(a) <>  In General.--Not later than 1 year
after the date of enactment of this Act, the Director of the Federal
Insurance Office shall conduct a study and submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report providing an
assessment of the current state of the market for natural catastrophe
insurance in the United States.

(b) Factors.--The study and report required under subsection (a)
shall assess--
(1) the current condition of, as well as the outlook for,
the availability and affordability of insurance for natural
catastrophe perils in all regions of the United States;
(2) the current ability of States, communities, and
individuals to mitigate their natural catastrophe risks,
including the affordability and feasibility of such mitigation
activities;
(3) the current state of catastrophic insurance and
reinsurance markets and the current approaches in providing
insurance protection to different sectors of the population of
the United States;
(4) the current financial condition of State residual
markets and catastrophe funds in high-risk regions, including
the likelihood of insolvency following a natural catastrophe,
the concentration of risks within such funds, the reliance on
post-event assessments and State funding, and the adequacy of
rates; and
(5) the current role of the Federal Government and State and
local governments in providing incentives for feasible risk
mitigation efforts and the cost of providing post-natural
catastrophe aid in the absence of insurance.

(c) Additional Factors.--The study and report required under
subsection (a) shall also contain an assessment of current approaches to
insuring natural catastrophe risks in the United States and such other
information as the Director of the Federal Insurance Office determines
necessary or appropriate.

[[Page 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) <>  certifies to the
Administrator and the Chief of Engineers that the
community will continue to participate in the National
Flood Insurance Program.

(b) Authority.--Notwithstanding any other prohibition on
construction on property acquired with funding from the Federal
Emergency Management Agency for conversion to open space purposes, the
Administrator shall allow the construction of a flood protection
improvement by a State, local, or tribal government on covered hazard
mitigation land if--
(1) <>  the Administrator and the
Chief of Engineers make a determination that--
(A) construction of the proposed flood protection
improvement would more effectively mitigate against
flooding risk than an open floodplain or other flood
risk reduction measures;
(B) the proposed flood protection improvement
complies with Federal, State, and local requirements,
including mitigation of adverse impacts and
implementation of floodplain management requirements,
which shall include an evaluation of whether the
construction, operation, and maintenance of the proposed
flood protection improvement--
(i) would continue to meet best available
industry standards and practices;
(ii) would be the most cost-effective measure
to protect against the assessed flood risk; and
(iii) minimizes future costs to the Federal
Government;
(C) the State, local, or tribal government seeking
to construct the flood protection improvement has
provided

[[Page 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) <>  Review.--The Chief of
Engineers shall review each certification submitted under
paragraph (1) and determine whether the State, local, or tribal
government has complied with the maintenance plan.
SEC. 100249. <> NO CAUSE OF ACTION.

No cause of action shall exist and no claim may be brought against
the United States for violation of any notification requirement imposed
upon the United States by this subtitle or any amendment made by this
subtitle.

Subtitle <> B--Alternative Loss Allocation
SEC. 100251. SHORT TITLE.

This subtitle may be cited as the ``Consumer Option for an
Alternative System to Allocate Losses Act of 2012'' or the ``COASTAL Act
of 2012''.
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 970]]

``SEC. 12312. <> ASSESSING AND MODELING NAMED
STORMS OVER COASTAL STATES.

``(a) Definitions.--In this section:
``(1) COASTAL formula.--The term `COASTAL Formula' has the
meaning given the term in section 1337(a) of the National Flood
Insurance Act of 1968.
``(2) Coastal state.--The term `coastal State' has the
meaning given the term `coastal state' in section 304 of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
``(3) Coastal waters.--The term `coastal waters' has the
meaning given the term in such section.
``(4) Covered data.--The term `covered data' means, with
respect to a named storm identified by the Administrator under
subsection (b)(2)(A), empirical data that are--
``(A) collected before, during, or after such storm;
and
``(B) necessary to determine magnitude and timing of
wind speeds, rainfall, the barometric pressure, river
flows, the extent, height, and timing of storm surge,
topographic and bathymetric data, and other measures
required to accurately model and assess damage from such
storm.
``(5) Indeterminate loss.--The term `indeterminate loss' has
the meaning given the term in section 1337(a) of the National
Flood Insurance Act of 1968.
``(6) Named storm.--The term `named storm' means any
organized weather system with a defined surface circulation and
maximum winds of at least 39 miles per hour which the National
Hurricane Center of the United States National Weather Service
names as a tropical storm or a hurricane.
``(7) Named storm event model.--The term `Named Storm Event
Model' means the official meteorological and oceanographic
computerized model, developed by the Administrator under
subsection (b)(1)(A), which utilizes covered data to replicate
the magnitude, timing, and spatial variations of winds,
rainfall, and storm surges associated with named storms that
threaten any portion of a coastal State.
``(8) Participant.--The term `participant' means a Federal,
State, or private entity that chooses to cooperate with the
Administrator in carrying out the provisions of this section by
collecting, contributing, and maintaining covered data.
``(9) Post-storm assessment.--The term `post-storm
assessment' means a scientific assessment produced and certified
by the Administrator to determine the magnitude, timing, and
spatial variations of winds, rainfall, and storm surges
associated with a specific named storm to be used in the COASTAL
Formula.
``(10) State.--The term `State' means a State of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, and any other territory or possession of the United
States.

``(b) Named Storm Event Model and Post-storm Assessment.--
``(1) Establishment of named storm event model.--
``(A) <>  In
general.--Not later than 540 days after the date of the
enactment of the Consumer Option for an Alternative
System to Allocate Losses Act of 2012, the Administrator
shall develop by regulation the Named Storm Event Model.

[[Page 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) <>  Submittal of post-storm
assessment.--Not later than 90 days after an
identification of a named storm is made under
subparagraph (A), the Administrator shall submit to the
Secretary of Homeland Security the post-storm assessment
developed for such storm under subparagraph (B).
``(3) Accuracy.--The Administrator shall ensure, to the
greatest extent practicable, that each post-storm assessment
developed under paragraph (2) has a degree of accuracy of not
less than 90 percent.
``(4) Certification.--For each post-storm assessment carried
out under paragraph (2), the Administrator shall--
``(A) certify the degree of accuracy for such
assessment, including specific reference to any segments
or geographic areas for which the assessment is less
than 90 percent accurate; and
``(B) <>  report such certification
to the Secretary of Homeland Security for the purposes
of use with indeterminate loss claims under section 1337
of the National Flood Insurance Act of 1968.
``(5) Finality of determinations.--A certification of the
degree of accuracy of a post-storm assessment under this
subsection by the Administrator shall be final and shall not be
subject to judicial review.
``(6) <>  Availability.--The
Administrator shall make available to the public the Named Storm
Event Model and any post-storm assessment developed under this
subsection.

``(c) Establishment of a Protocol for Post-storm Assessment.--
``(1) <>  In general.--Not later than 540
days after the date of the enactment of the Consumer Option for
an Alternative System to Allocate Losses Act of 2012, the
Administrator shall establish a protocol, based on the plan
submitted under subsection (d)(3), to collect and assemble all
covered data required by the Administrator to produce post-storm
assessments required by subsection (b), including assembling
data collected by participants and stored in the database
established under subsection (f) and from such other sources as
the Administrator considers appropriate.

[[Page 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 <> 180 days after
the date of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Administrator shall, in consultation with the Office of the
Federal Coordinator for Meteorology--
``(A) <>  carry out a survey to
identify all Federal and State efforts and systems that
are capable of collecting covered data; and

[[Page 973]]

``(B) <>  consult with private
and academic sector entities to identify domestic
private and academic systems that are capable of
collecting covered data.
``(2) Identification of gaps.--The Administrator shall, in
consultation with the Office of the Federal Coordinator for
Meteorology and individuals and entities consulted under
subsection (e)(3), assess the systems identified under paragraph
(1) and identify which systems meet the needs of the National
Oceanic and Atmospheric Administration for the collection of
covered data, including with respect to the accuracy requirement
for post-storm assessment under subsection (b)(3).
``(3) <>  Plan.--Not later than 270 days
after the date of the enactment of the Consumer Option for an
Alternative System to Allocate Losses Act of 2012, the
Administrator shall, in consultation with the Office of the
Federal Coordinator for Meteorology, submit to Congress a plan
for the collection of covered data necessary to develop the
Named Storm Event Model and post-storm assessment required by
subsection (b) that addresses any gaps identified in paragraph
(2).

``(e) Coordination of Covered Data Collection and Maintenance by
Participants.--
``(1) In general.--The Administrator shall, in consultation
with the Office of the Federal Coordinator for Meteorology,
coordinate the collection and maintenance of covered data by
participants under this section--
``(A) to streamline the process of collecting
covered data in accordance with the protocol established
under subsection (c)(1); and
``(B) to maintain transparency of such process and
the database established under subsection (f).
``(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 974]]

``(1) <>  In general.--Not later than 1
year after the date of the enactment of the Consumer Option for
an Alternative System to Allocate Losses Act of 2012, the
Administrator shall establish a database for the collection and
compilation of covered data--
``(A) to support the protocol established under
subsection (c)(1); and
``(B) for the purposes listed in subsection (e)(2).
``(2) Designation.--The database established under paragraph
(1) shall be known as the `Coastal Wind and Water Event
Database'.

``(g) <>  Comptroller General Study.--Not later
than 1 year after the date of the enactment of the Consumer Option for
an Alternative System to Allocate Losses Act of 2012, the Comptroller
General of the United States shall--
``(1) <>  complete an audit of Federal efforts
to collect covered data for purposes of the Consumer Option for
an Alternative System to Allocate Losses Act of 2012, which
audit shall--
``(A) examine duplicated Federal efforts to collect
covered data; and
``(B) determine the cost effectiveness of such
efforts; and
``(2) <>  submit to the Committee on
Banking, Housing, and Urban Affairs and the Commerce, Science,
and Transportation of the Senate and the Committee on Financial
Services and the Committee on Science, Space, and Technology of
the House of Representatives a report on the findings of the
Comptroller General with respect to the audit completed under
paragraph (1).''.
SEC. 100253. ALTERNATIVE LOSS ALLOCATION SYSTEM FOR INDETERMINATE
CLAIMS.

Part A of chapter II of the National Flood Insurance Act of 1968 (42
U.S.C. 4051 et seq.) is amended by adding at the end the following:
``SEC. 1337. <> ALTERNATIVE LOSS ALLOCATION
SYSTEM FOR INDETERMINATE CLAIMS.

``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Emergency Management Agency.
``(2) COASTAL formula.--The term `COASTAL Formula' means the
formula established under subsection (b).
``(3) Coastal state.--The term `coastal State' has the
meaning given the term `coastal state' in section 304 of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
``(4) Indeterminate loss.--
``(A) In general.--The term `indeterminate loss'
means, as determined by an insurance claims adjuster
certified under the national flood insurance program and
in consultation with an engineer as appropriate, a loss
resulting from physical damage to, or loss of, property
located in any coastal State arising from the combined
perils of flood and wind associated with a named storm.
``(B) Requirements.--An insurance claims adjuster
certified under the national flood insurance program
shall only determine that a loss is an indeterminate
loss if the claims adjuster determines that--

[[Page 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) <>  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 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) <>  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 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) <>  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 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. <> HEARTH ACT TECHNICAL
CORRECTIONS.

For purposes of title IV of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11360 et seq.)--
(1) <>  the term ``local government''
includes an instrumentality of a unit of general purpose local
government other than a public housing agency that is
established pursuant to legislation and designated by the chief
executive to act on behalf of the local government with regard
to activities funded under such title IV and includes a
combination of general purpose local governments, such as an
association of governments, that is recognized by the Secretary
of Housing and Urban Development;

[[Page 979]]

(2) <>  the term ``State'' includes any
instrumentality of any of the several States designated by the
Governor to act on behalf of the State and does not include the
District of Columbia;
(3) for purposes of environmental review, the Secretary of
Housing and Urban Development shall continue to permit
assistance and projects to be treated as assistance for special
projects that are subject to section 305(c) of the Multifamily
Housing Property Disposition Reform Act of 1994 (42 U.S.C.
3547), and subject to the regulations issued by the Secretary of
Housing and Urban Development to implement such section; and
(4) a metropolitan city and an urban county that each
receive an allocation under such title IV and are located within
a geographic area that is covered by a single continuum of care
may jointly request the Secretary of Housing and Urban
Development to permit the urban county or the metropolitan city,
as agreed to by such county and city, to receive and administer
their combined allocations under a single grant.

TITLE III--STUDENT LOAN INTEREST RATE EXTENSION

SEC. 100301. FEDERAL DIRECT STAFFORD LOAN INTEREST RATE EXTENSION.

Section 455(b)(7)(D) of the Higher Education Act of 1965 (20 U.S.C.
1087e(b)(7)(D)) is amended--
(1) in the matter preceding clause (i), by striking ``and
before July 1, 2012,'' and inserting ``and before July 1,
2013,''; and
(2) in clause (v), by striking ``and before July 1, 2012,''
and inserting ``and before July 1, 2013,''.
SEC. 100302. ELIGIBILITY FOR, AND INTEREST CHARGES ON, FEDERAL
DIRECT STAFFORD LOANS FOR NEW
BORROWERS ON OR AFTER JULY 1, 2013.

(a) In General.--Section 455 of the Higher Education Act of 1965 (20
U.S.C. 1087e) is amended by adding at the end the following:
``(q) Eligibility for, and Interest Charges on, Federal Direct
Stafford Loans for New Borrowers on or After July 1, 2013.--
``(1) In general.--Notwithstanding subsection (a) or any
other provision of this title, any borrower who was a new
borrower on or after July 1, 2013, shall not be eligible for a
Federal Direct Stafford Loan if the period of time for which the
borrower has received Federal Direct Stafford Loans, in the
aggregate, exceeds the period of enrollment described in
paragraph (3). Such borrower may still receive any Federal
Direct Unsubsidized Stafford Loan for which such borrower is
otherwise eligible.
``(2) Accrual of interest on federal direct stafford
loans.--Notwithstanding subsection (f)(1)(A) or any other
provision of this title and beginning on the date upon which a
borrower who is enrolled in a program of education or training
(including a course of study or program described in paragraph

[[Page 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) <>  Inapplicability of Title IV
Negotiated Rulemaking Requirement and Master Calendar Exception.--
Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C.
1089(c), 1098a) shall not apply to the amendment made by subsection (a),
or to any regulations promulgated under such amendment.

DIVISION <> G--SURFACE TRANSPORTATION EXTENSION
SEC. 110001. <> SHORT TITLE.

This division may be cited as the ``Surface Transportation Extension
Act of 2012, Part II''.

TITLE I--FEDERAL-AID HIGHWAYS

SEC. 111001. EXTENSION OF FEDERAL-AID HIGHWAY PROGRAMS.

(a) In General.--Section 111 of the Surface Transportation Extension
Act of 2011, Part II (Public Law 112-30; 125 Stat. 343; 126 Stat. 272)
is amended--

[[Page 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 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 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) <> 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 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 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. <> 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 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 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 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. <> 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):
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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.