[DOCID: f:h3ih.txt]






109th CONGRESS
  1st Session
                                 H. R. 3

 To authorize funds for Federal-aid highways, highway safety programs, 
             and transit programs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2005

Mr. Young of Alaska (for himself, Mr. Oberstar, Mr. Petri, Mr. DeFazio, 
  Mr. Boehlert, Mr. Rahall, Mr. Coble, Mr. Costello, Mr. Duncan, Ms. 
    Norton, Mr. Gilchrest, Mr. Nadler, Mr. Mica, Mr. Menendez, Mr. 
  Hoekstra, Ms. Corrine Brown of Florida, Mr. Ehlers, Mr. Filner, Mr. 
Bachus, Ms. Eddie Bernice Johnson of Texas, Mr. LaTourette, Mr. Taylor 
  of Mississippi, Mrs. Kelly, Ms. Millender-McDonald, Mr. Baker, Mr. 
  Cummings, Mr. Ney, Mr. Blumenauer, Mr. LoBiondo, Mrs. Tauscher, Mr. 
 Moran of Kansas, Mr. Pascrell, Mr. Gary G. Miller of California, Mr. 
 Boswell, Mr. Hayes, Mr. Holden, Mr. Simmons, Mr. Baird, Mr. Brown of 
South Carolina, Ms. Berkley, Mr. Johnson of Illinois, Mr. Matheson, Mr. 
Platts, Mr. Honda, Mr. Graves, Mr. Larsen of Washington, Mr. Kennedy of 
   Minnesota, Mr. Capuano, Mr. Shuster, Mr. Weiner, Mr. Boozman, Ms. 
 Carson, Mr. Pearce, Mr. Bishop of New York, Mr. Gerlach, Mr. Michaud, 
Mr. Lincoln Diaz-Balart of Florida, Mr. Davis of Tennessee, Mr. Porter, 
Mr. Chandler, Mr. Osborne, Mr. Higgins, Mr. Marchant, Mr. Carnahan, Mr. 
 Sodrel, Ms. Schwartz of Pennsylvania, Mr. Dent, Mr. Salazar, Mr. Poe, 
    Mr. Reichert, Mr. Mack, Mr. Kuhl of New York, Mr. Fortuno, Mr. 
 Westmoreland, and Mr. Boustany) introduced the following bill; which 
   was referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
 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, TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Transportation 
Equity Act: A Legacy for Users''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, table of contents.
                     TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorization of programs

Sec. 1101. Authorizations of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Minimum guarantee.
Sec. 1105. Project approval and oversight.
Sec. 1106. Temporary traffic control devices.
Sec. 1107. Revenue aligned budget authority.
Sec. 1108. Emergency relief.
Sec. 1109. Surface transportation program.
Sec. 1110. Highway use tax evasion projects.
Sec. 1111. Appalachian development highway system.
Sec. 1112. Construction of ferry boats and ferry terminal facilities.
Sec. 1113. Interstate maintenance discretionary.
Sec. 1114. Highway bridge.
Sec. 1115. Transportation and community and system preservation 
                            program.
Sec. 1116. Deployment of magnetic levitation transportation projects.
Sec. 1117. Recreational trails.
Sec. 1118. Federal lands highways.
Sec. 1119. Conservation measures.
Sec. 1120. Pedestrian and cyclist equity.
Sec. 1121. National commissions.
Sec. 1122. Adjustments for the Surface Transportation Extension Act of 
                            2004, Part V.
Sec. 1123. Roadway safety.
Sec. 1124. Equity requirement.
                     Subtitle B--Congestion Relief

Sec. 1201. Motor vehicle congestion relief.
Sec. 1202. Transportation systems management and operations.
Sec. 1203. Real-time system management information program.
Sec. 1204. Expedited national intelligent transportation systems 
                            deployment program.
Sec. 1205. Intelligent transportation systems deployment.
Sec. 1206. Environmental review of activities that support deployment 
                            of intelligent transportation systems.
Sec. 1207. State assumption of responsibilities for certain programs 
                            and projects.
Sec. 1208. HOV facilities.
Sec. 1209. Congestion pricing pilot program.
Sec. 1210. Congestion mitigation and air quality improvement program 
                            eligibility.
Sec. 1211. Special rules for State assumption of responsibilities.
                  Subtitle C--Mobility and Efficiency

Sec. 1301. National corridor infrastructure improvement program.
Sec. 1302. Coordinated border infrastructure program.
Sec. 1303. Freight intermodal connectors.
Sec. 1304. Projects of national and regional significance.
Sec. 1305. Dedicated truck lanes.
Sec. 1306. Truck parking facilities.
                       Subtitle D--Highway Safety

Sec. 1401. Highway safety improvement program.
Sec. 1402. Worker injury prevention and free flow of vehicular traffic.
Sec. 1403. High risk rural road safety improvement program.
Sec. 1404. Transfers of apportionments to safety programs.
Sec. 1405. Safety incentive grants for use of seat belts.
Sec. 1406. Safety incentives to prevent operation of motor vehicles by 
                            intoxicated persons.
Sec. 1407. Repeat offenders for driving while intoxicated.
Sec. 1408. Repair or replacement of highway features on National 
                            Highway System.
           Subtitle E--Construction and Contract Efficiencies

Sec. 1501. Design-build.
Sec. 1502. Warranty highway construction project pilot program.
Sec. 1503. Private investment study.
Sec. 1504. Highways for LIFE pilot program.
                          Subtitle F--Finance

Sec. 1601. Transportation Infrastructure Finance and Innovation Act.
Sec. 1602. State infrastructure banks.
Sec. 1603. Interstate System reconstruction and rehabilitation toll 
                            pilot program.
Sec. 1604. Interstate System construction toll pilot program.
Sec. 1605. Use of excess funds.
Sec. 1606. Special rules relating to State infrastructure bank program.
                   Subtitle G--High Priority Projects

Sec. 1701. High priority projects program.
Sec. 1702. Project authorizations.
                  Subtitle H--Miscellaneous provisions

Sec. 1801. Budget justification.
Sec. 1802. Motorist information.
Sec. 1803. Motorist information concerning full-service restaurants.
Sec. 1804. High priority corridors on the National Highway System.
Sec. 1805. Additions to Appalachian region.
Sec. 1806. Transportation assets and needs of Delta region.
Sec. 1807. Toll facilities workplace safety study.
Sec. 1808. Pavement marking systems demonstration projects.
Sec. 1809. Work zone safety grants.
Sec. 1810. Grant program to prohibit racial profiling.
Sec. 1811. America's Byways Resource Center.
Sec. 1812. Technical adjustment.
Sec. 1813. Road user charge evaluation pilot project.
Sec. 1814. Thomas P. ``Tip'' O'Neill, Jr. Tunnel.
Sec. 1815. Conforming amendment for transportation planning sections.
Sec. 1816. Distribution of metropolitan planning funds within States.
Sec. 1817. Treatment of off ramp.
Sec. 1818. Loan forgiveness.
Sec. 1819. Lead agency designation.
Sec. 1820. Use of debris from demolished bridges and overpasses.
Sec. 1821. Hubzone program.
Sec. 1822. Technical amendments to TEA 21 projects.
Sec. 1823. National Work Zone Safety Information Clearinghouse.
Sec. 1824. Transportation conformity.
Sec. 1825. Eligibility to participate in western Alaska community 
                            development quota program.
Sec. 1826. Metropolitan regional freight and passenger transportation 
                            study.
Sec. 1827. Intermodal transportation facility expansion.
Sec. 1828. Advanced truck stop electrification system.
Sec. 1829. Technology.
Sec. 1830. Extension of public transit vehicle exemption from axle 
                            weight restrictions.
Sec. 1831. Motorcyclist Advisory Council.
Sec. 1832. Sharing of monetary recoveries.
Sec. 1833. Eligibility under CMAQ.
Sec. 1834. Special rule for fiscal year 2004.
                        TITLE II--HIGHWAY SAFETY

Sec. 2001. Authorization of appropriations.
Sec. 2002. Occupant protection incentive grants.
Sec. 2003. Alcohol-impaired driving countermeasures.
Sec. 2004. State traffic safety information system improvements.
Sec. 2005. High visibility enforcement program.
Sec. 2006. Motorcycle crash causation study.
Sec. 2007. Child safety and child booster seat incentive grants.
Sec. 2008. Motorcyclist safety.
Sec. 2009. Driver fatigue.
Sec. 2010. Authorization of appropriations for highway safety research 
                            and development.
Sec. 2011. Safety data.
           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

Sec. 3001. Short title; amendments to title 49, United States Code.
Sec. 3002. Policies, findings, and purposes.
Sec. 3003. Definitions.
Sec. 3004. Metropolitan planning.
Sec. 3005. Statewide planning.
Sec. 3006. Planning programs.
Sec. 3007. Private enterprise participation.
Sec. 3008. Urbanized area formula grants.
Sec. 3009. Clean fuels formula grant program.
Sec. 3010. Capital investment grants.
Sec. 3011. Formula grants for special needs of elderly individuals and 
                            individuals with disabilities.
Sec. 3012. Formula grants for other than urbanized areas.
Sec. 3013. Research, development, demonstration, and deployment 
                            projects.
Sec. 3014. Cooperative research program.
Sec. 3015. National research and technology programs.
Sec. 3016. National Transit Institute.
Sec. 3017. Job access and reverse commute formula grants.
Sec. 3018. New Freedom program.
Sec. 3019. Bus testing facility.
Sec. 3020. Bicycle facilities.
Sec. 3021. Transit in the parks pilot program.
Sec. 3022. Human resource programs.
Sec. 3023. General provisions on assistance.
Sec. 3024. Special provisions for capital projects.
Sec. 3025. Contract requirements.
Sec. 3026. Project management oversight and review.
Sec. 3027. Investigations of safety and hazards.
Sec. 3028. State safety oversight.
Sec. 3029. Controlled substances and alcohol misuse testing.
Sec. 3030. Employee protective arrangements.
Sec. 3031. Administrative procedures.
Sec. 3032. National transit database.
Sec. 3033. Apportionments based on fixed guideway factors.
Sec. 3034. Authorizations.
Sec. 3035. Over-the-road bus accessibility program.
Sec. 3036. Updated terminology.
Sec. 3037. Project authorizations for new fixed guideway capital 
                            projects.
Sec. 3038. Projects for bus and bus-related facilities.
Sec. 3039. National fuel cell bus technology development program.
Sec. 3040. High-intensity small-urbanized area formula grant program.
Sec. 3041. Allocations for national research and technology programs.
Sec. 3042. Relationship to other laws.
Sec. 3043. Cooperative procurement.
Sec. 3044. Obligation ceiling.
Sec. 3045. Adjustments for the Surface Transportation Extension Act of 
                            2004, Part V.
Sec. 3046. Special rule for fiscal year 2004.
           TITLE IV--MOTOR CARRIER TRANSPORTATION AND SAFETY

              Subtitle A--Commercial Motor Vehicle Safety

Sec. 4101. Authorization of appropriations.
Sec. 4102. Motor carrier safety grants.
Sec. 4103. Border enforcement grants.
Sec. 4104. Commercial driver's license improvements.
Sec. 4105. Hobbs Act.
Sec. 4106. Penalty for denial of access to records.
Sec. 4107. Medical Review Board.
Sec. 4108. Increased penalties for out-of-service violations and false 
                            records.
Sec. 4109. Commercial vehicle information systems and networks 
                            deployment.
Sec. 4110. Safety fitness.
Sec. 4111. Pattern of safety violations by motor carrier or broker 
                            management.
Sec. 4112. Motor carrier research and technology program.
Sec. 4113. International cooperation.
Sec. 4114. Performance and registration information System management.
Sec. 4115. Data quality improvement.
Sec. 4116. Driveaway saddlemount vehicles.
Sec. 4117. Completion of uniform carrier registration.
Sec. 4118. Registration of motor carriers and freight forwarders.
Sec. 4119. Deposit of certain civil Penalties into Highway Trust Fund.
Sec. 4120. Outreach and education.
Sec. 4121. Insulin treated diabetes mellitus.
Sec. 4122. Grant program for commercial motor vehicle operators.
Sec. 4123. Commercial motor vehicle safety advisory committee.
Sec. 4124. Safety data improvement program.
Sec. 4125. Commercial driver's license information System 
                            modernization.
Sec. 4126. Maximum hours of service for operators of ground water well 
                            drilling rigs.
Sec. 4127. Safety performance history screening.
Sec. 4128. Intermodal chassis roadability rule-making.
Sec. 4129. Substance abuse professionals.
Sec. 4130. Interstate van operations.
Sec. 4131. Hours of service for operators of utility service vehicles.
Sec. 4132. Technical corrections.
Sec. 4133. Special rule for fiscal year 2004.
               Subtitle B--Household Goods Transportation

Sec. 4201. Federal-State relations relating to transportation of 
                            household goods.
Sec. 4202. Arbitration requirements.
Sec. 4203. Civil Penalties relating to household goods brokers and 
                            unauthorized transportation.
Sec. 4204. Civil penalty for holding household goods hostage.
Sec. 4205. Working group for development of practices and procedures to 
                            enhance Federal-State relations.
Sec. 4206. Consumer handbook on DOT web site.
Sec. 4207. Release of household goods broker information.
Sec. 4208. Consumer complaint information.
Sec. 4209. Insurance regulations.
Sec. 4210. Estimating requirements.
Sec. 4211. Application of State consumer protection laws to certain 
                            household goods carriers.
Sec. 4212. Applicability to household goods motor carriers.
Sec. 4213. Violations of Out-of-Service Orders.
Sec. 4214. Criminal penalty for holding goods hostage.
             TITLE V--TRANSPORTATION RESEARCH AND EDUCATION

                          Subtitle A--Funding

Sec. 5101. Authorization of appropriations.
Sec. 5102. Obligation ceiling.
Sec. 5103. Findings.
            Subtitle B--Research, Technology, and Education

Sec. 5201. Research, technology, and education.
Sec. 5202. Long-term bridge performance program; innovative bridge 
                            research and deployment program.
Sec. 5203. Surface transportation environment and planning cooperative 
                            research program.
Sec. 5204. Technology deployment.
Sec. 5205. Training and education.
Sec. 5206. Freight planning capacity building.
Sec. 5207. Advanced travel forecasting procedures program.
Sec. 5208. National cooperative freight transportation research 
                            program.
Sec. 5209. Future strategic highway research program.
Sec. 5210. Transportation safety information management system project.
Sec. 5211. Surface transportation congestion relief solutions research 
                            initiative.
Sec. 5212. Motor carrier efficiency study.
Sec. 5213. Transportation research and development strategic planning.
Sec. 5214. Limitation on remedies for future strategic highway research 
                            program.
      Subtitle C--University Transportation Research; Scholarship 
                             Opportunities

Sec. 5301. National university transportation centers.
Sec. 5302. University transportation research.
Sec. 5303. Transportation scholarship opportunities program.
                   Subtitle D--Advanced Technologies

Sec. 5401. Advanced heavy-duty vehicle technologies research program.
Sec. 5402. Commercial remote sensing products and spatial information 
                            technologies.
              Subtitle E--Transportation Data and Analysis

Sec. 5501. Bureau of Transportation Statistics.
Sec. 5502. Reports of Bureau of Transportation Statistics.
        Subtitle F--Intelligent Transportation Systems Research

Sec. 5601. Short title.
Sec. 5602. Goals and purposes.
Sec. 5603. General authorities and requirements.
Sec. 5604. National architecture and Standards.
Sec. 5605. Research and development.
Sec. 5606. Infrastructure development.
Sec. 5607. Road weather research and development program.
Sec. 5608. Definitions.
Sec. 5609. Rural interstate corridor communications study.
Sec. 5610. Centers for surface transportation excellence.
Sec. 5611. Repeal.
Sec. 5612. Special rule for fiscal year 2004.
         TITLE VI--TRANSPORTATION PLANNING AND PROJECT DELIVERY

Sec. 6001. Transportation planning.
Sec. 6002. Efficient environmental reviews for project decisionmaking.
Sec. 6003. Policy on historic sites.
Sec. 6004. Exemption of Interstate System.
Sec. 6005. Interstate compacts.
Sec. 6006. Development of transportation plan.
Sec. 6007. Interstate agreements.
Sec. 6008. Regulations relating to transportation planning.
Sec. 6009. Special rules relating to project development procedures.
             TITLE VII--HAZARDOUS MATERIALS TRANSPORTATION

Sec. 7001. Amendment of title 49, United States Code.
Sec. 7002. Findings and purpose.
Sec. 7003. Definitions.
Sec. 7004. General regulatory authority.
Sec. 7005. Chemical or biological materials.
Sec. 7006. Representation and tampering.
Sec. 7007. Technical amendments.
Sec. 7008. Training of certain employees.
Sec. 7009. Registration.
Sec. 7010. Providing shipping papers.
Sec. 7011. Rail tank cars.
Sec. 7012. Unsatisfactory safety rating.
Sec. 7013. Training curriculum for the public sector.
Sec. 7014. Planning and training grants, monitoring, and review.
Sec. 7015. Special permits and exclusions.
Sec. 7016. Uniform forms and Procedures.
Sec. 7017. International uniformity of standards and requirements.
Sec. 7018. Administrative.
Sec. 7019. Enforcement.
Sec. 7020. Civil penalty.
Sec. 7021. Criminal penalty.
Sec. 7022. Preemption.
Sec. 7023. Relationship to other laws.
Sec. 7024. Judicial review.
Sec. 7025. Authorization of appropriations.
Sec. 7026. Determining amount of undeclared shipments of hazardous 
                            materials entering the United States.
Sec. 7027. Conforming amendments.
      TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE

Sec. 8001. Policy.

                     TITLE I--FEDERAL-AID HIGHWAYS

                 Subtitle A--Authorization of Programs

SEC. 1101. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated from the Highway Trust Fund (other than the Mass Transit 
Account):
            (1) Interstate maintenance program.--For the Interstate 
        maintenance program under section 119 of title 23, United 
        States Code, $4,323,076,000 for fiscal year 2004, 
        $4,431,153,000 for fiscal year 2005, $4,541,932,000 for fiscal 
        year, 2006, $4,655,480,000 for fiscal year 2007, $4,771,867,000 
        for fiscal year 2008, and $4,891,164,000 for fiscal year 2009.
            (2) National highway system.--For the National Highway 
        System under section 103 of that title, $5,187,691,000 for 
        fiscal year 2004, $5,317,383,000 for fiscal year 2005, 
        $5,450,318,000 for fiscal year 2006, $5,586,576,000 for fiscal 
        year 2007, $5,726,240,000 for fiscal year 2008, and 
        $5,869,396,000 for fiscal year 2009.
            (3) Bridge program.--For the bridge program under section 
        144 of that title, $3,709,440,000 for fiscal year 2004, 
        $3,802,176,000 for fiscal year 2005, $3,897,231,000 for fiscal 
        year 2006, $3,994,661,000 for fiscal year 2007, $4,094,528,000 
        for fiscal year 2008, and $4,196,891,000 for fiscal year 2009.
            (4) Highway safety improvement program.--For the highway 
        safety improvement program under sections 130 and 152 of that 
        title, $630,000,000 for fiscal year 2005, $645,000,000 for 
        fiscal year 2006, $660,000,000 for fiscal year 2007, 
        $680,000,000 for fiscal year 2008, and $695,000,000 for fiscal 
        year 2009. Of such funds \1/3\ per fiscal year shall be 
        available to carry out section 130 and \2/3\ shall be available 
        to carry out section 152.
            (5) Surface transportation program.--For the surface 
        transportation program under section 133 of that title, 
        $6,052,306,000 for fiscal year 2004, $6,203,614,000 for fiscal 
        year 2005, $6,358,704,000 for fiscal year 2006, $6,517,672,000 
        for fiscal year 2007, $6,680,614,000 for fiscal year 2008, and 
        $6,847,629,000 for fiscal year 2009.
            (6) Congestion mitigation and air quality improvement 
        program.--For the congestion mitigation and air quality 
        improvement program under section 149 of that title, 
        $1,469,846,000 for fiscal year 2004, $1,506,592,000 for fiscal 
        year 2005, $1,544,257,000 for fiscal year 2006, $1,582,863,000 
        for fiscal year 2007, $1,622,435,000 for fiscal year 2008, and 
        $1,662,996,000 for fiscal year 2009.
            (7) Appalachian development highway system program.--For 
        the Appalachian development highway system program under 
        section 14501 of title 40, United States Code, $460,000,000 for 
        fiscal year 2004 and $470,000,000 for each of fiscal years 2005 
        through 2009.
            (8) Recreational trails program.--For the recreational 
        trails program under section 206 of title 23, United States 
        Code, $53,000,000 for fiscal year 2004, $70,000,000 for fiscal 
        year 2005, $80,000,000 for fiscal year 2006, $90,000,000 for 
        fiscal year 2007, $100,000,000 for fiscal year 2008, and 
        $110,000,000 for fiscal year 2009.
            (9) Federal lands highways program.--
                    (A) Indian reservation roads.--For Indian 
                reservation roads under section 204 of title 23, United 
                States Code, $325,000,000 for fiscal year 2004, 
                $365,000,000 for fiscal year 2005, $390,000,000 for 
                fiscal year 2006, $395,000,000 for fiscal year 2007, 
                $420,000,000 for fiscal year 2008, and $420,000,000 for 
                fiscal year 2009.
                    (B) Park roads and parkways.--For park roads and 
                parkways roads under section 204 of that title, 
                $170,000,000 for fiscal year 2004, $185,000,000 for 
                fiscal year 2005, $200,000,000 for fiscal year 2006, 
                $215,000,000 for fiscal year 2007, $225,000,000 for 
                fiscal year 2008, and $225,000,000 for fiscal year 
                2009.
                    (C) Public lands highway.--For public lands highway 
                under section 204 of that title, $250,000,000 for 
                fiscal year 2004, $260,000,000 for fiscal year 2005, 
                $280,000,000 for fiscal year 2006, $280,000,000 for 
                fiscal year 2007, $290,000,000 for fiscal year 2008, 
                and $300,000,000 for fiscal year 2009.
                    (D) Refuge roads.--For refuge roads under section 
                204 of that title, $20,000,000 for each of fiscal years 
                2004 through 2009.
            (10) National corridor infrastructure improvement 
        program.--For the national corridor infrastructure improvement 
        program under section 1301 of this title, $600,000,000 for 
        fiscal year 2005, $600,000,000 for fiscal year 2006, 
        $600,000,000 for fiscal year 2007, $600,000,000 for fiscal year 
        2008, and $600,000,000 for fiscal year 2009.
            (11) Coordinated border infrastructure program.--For the 
        coordinated border infrastructure program under section 1302 of 
        this title, $200,000,000 for fiscal year 2005, $200,000,000 for 
        fiscal year 2006, $200,000,000 for fiscal year 2007, 
        $200,000,000 for fiscal year 2008, and $225,000,000 for fiscal 
        year 2009.
            (12) Projects of national and regional significance 
        program.--For the projects of national and regional 
        significance program under section 1304 of this title, 
        $1,100,000,000 for fiscal year 2005, $1,100,000,000 for fiscal 
        year 2006, $1,200,000,000 for fiscal year 2007, $1,300,000,000 
        for fiscal year 2008, and $1,300,000,000 for fiscal year 2009.
            (13) Construction of ferry boats and ferry terminal 
        facilities.--For construction of ferry boats and ferry terminal 
        facilities under section 165 of title 23, United States Code, 
        $60,000,000 for fiscal year 2004, $70,000,000 for fiscal year 
        2005, $75,000,000 for fiscal year 2006, $75,000,000 for fiscal 
        year 2007, $75,000,000 for fiscal year 2008, and $75,000,000 
        for fiscal year 2009.
            (14) National scenic byways program.--For the national 
        scenic byways program under section 162 of title 23, United 
        States Code, $30,000,000 for fiscal year 2004, $40,000,000 for 
        fiscal year 2005, $45,000,000 for fiscal year 2006, $55,000,000 
        for fiscal year 2007, $55,000,000 for fiscal year 2008, and 
        $60,000,000 for fiscal year 2009.
            (15) Congestion pricing pilot program.--For the congestion 
        pricing pilot program under section 1209 of this title, 
        $15,000,000 for fiscal year 2004, $15,000,000 for fiscal year 
        2005, $15,000,000 for fiscal year 2006, $15,000,000 for fiscal 
        year 2007, $15,000,000 for fiscal year 2008, and $15,000,000 
        for fiscal year 2009.
            (16) Deployment of 511 traveler information program.--For 
        the 511 traveler information program under section 1204(c)(7) 
        of this title, $6,000,000 for each of fiscal years 2005 through 
        2009.
            (17) High priority projects program.--For the high priority 
        projects program under section 117 of title 23, United States 
        Code, $2,496,450,000 for fiscal year 2005, $2,244,550,000 for 
        fiscal year 2006, $2,143,250,000 for fiscal year 2007, 
        $2,192,450,000 for fiscal year 2008, and $2,050,450,000 for 
        fiscal year 2009.
            (18) Freight intermodal connector program.--For the freight 
        intermodal connector program under section 1303 of this title, 
        $250,000,000 for fiscal year 2005, $250,000,000 for fiscal year 
        2006, $250,000,000 for fiscal year 2007, $250,000,000 for 
        fiscal year 2008, and $250,000,000 for fiscal year 2009.
            (19) High risk rural road safety improvement program.--For 
        the high risk rural road safety improvement program under 
        section 1403 of this title, $105,000,000 for fiscal year 2005, 
        $110,000,000 for fiscal year 2006, $120,000,000 for fiscal year 
        2007, $125,000,000 for fiscal year 2008, and $130,000,000 for 
        fiscal year 2009.
            (20) Highway use tax evasion program.--For highway use tax 
        evasion projects under section 143 of title 23, United States 
        Code, $12,000,000 for fiscal year 2004, $30,000,000 for fiscal 
        year 2005, $30,000,000 for fiscal year 2006, $20,000,000 for 
        fiscal year 2007, $10,000,000 for fiscal year 2008, and 
        $7,000,000 for fiscal year 2009.
            (21) Pedestrian and cyclist equity.--
                    (A) Safe routes to school program.--For the safe 
                routes to school program under section 1120(a) of this 
                title, $150,000,000 for fiscal year 2005, $175,000,000 
                for fiscal year 2006, $175,000,000 for fiscal year 
                2007, $175,000,000 for fiscal year 2008, and 
                $200,000,000 for fiscal year 2009.
                    (B) Nonmotorized pilot program.--For the 
                nonmotorized pilot program under section 1120(b) of 
                this title, $25,000,000 for each of fiscal years 2005 
                through 2009.
            (22) Dedicated truck lanes.--For dedicated truck lanes 
        under section 1305 of this title, $165,000,000 for each of 
        fiscal years 2005 through 2008 and $170,000,000 for fiscal year 
        2009.
            (23) Highways for life program.--For the Highways for LIFE 
        program under section 1504 of this title, $55,000,000 for 
        fiscal year 2005 and $60,000,000 for each of fiscal years 2006 
        through 2009.
            (24) Commonwealth of puerto rico highway program.--For the 
        Commonwealth of Puerto Rico highway program under section 
        1214(r) of the Transportation Equity Act for the 21st Century 
        (112 Stat. 209), $115,000,000 for fiscal year 2004, 
        $125,000,000 for fiscal year 2005, $130,000,000 for fiscal year 
        2006, $130,000,000 for fiscal year 2007, $140,000,000 for 
        fiscal year 2008, and $140,000,000 for fiscal year 2009.
    (b) Disadvantaged Business Enterprises.--
            (1) General rule.--Except to the extent that the Secretary 
        determines otherwise, not less than 10 percent of the amounts 
        made available for any program under titles I, III, and V of 
        this Act and section 403 of title 23, United States Code, shall 
        be expended with small business concerns owned and controlled 
        by socially and economically disadvantaged individuals.
            (2) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) Small business concern.--The term ``small 
                business concern'' has the meaning such term has under 
                section 3 of the Small Business Act (15 U.S.C. 632); 
                except that such term shall not include any concern or 
                group of concerns controlled by the same socially and 
                economically disadvantaged individual or individuals 
                which has average annual gross receipts over the 
                preceding 3 fiscal years in excess of $17,420,000, as 
                adjusted by the Secretary for inflation.
                    (B) Socially and economically disadvantaged 
                individuals.--The term ``socially and economically 
                disadvantaged individuals'' has the meaning such term 
                has under section 8(d) of the Small Business Act (15 
                U.S.C. 637(d)) and relevant subcontracting regulations 
                promulgated pursuant thereto; except that women shall 
                be presumed to be socially and economically 
                disadvantaged individuals for purposes of this 
                subsection.
            (3) Annual listing of disadvantaged business enterprises.--
        Each State shall annually survey and compile a list of the 
        small business concerns referred to in paragraph (1) and the 
        location of such concerns in the State and notify the 
        Secretary, in writing, of the percentage of such concerns which 
        are controlled by women, by socially and economically 
        disadvantaged individuals (other than women), and by 
        individuals who are women and are otherwise socially and 
        economically disadvantaged individuals.
            (4) Uniform certification.--The Secretary shall establish 
        minimum uniform criteria for State governments to use in 
        certifying whether a concern qualifies for purposes of this 
        subsection. Such minimum uniform criteria shall include, but 
        not be limited to, on-site visits, personal interviews, 
        licenses, analysis of stock ownership, listing of equipment, 
        analysis of bonding capacity, listing of work completed, resume 
        of principal owners, financial capacity, and type of work 
        preferred.
            (5) Compliance with court orders.--Nothing in this 
        subsection limits the eligibility of an entity or person to 
        receive funds made available under titles I, III, and V of this 
        Act and section 403 of title 23, United States Code, if the 
        entity or person is prevented, in whole or in part, from 
        complying with paragraph (1) because a Federal court issues a 
        final order in which the court finds that the requirement of 
        paragraph (1), or the program established under paragraph (1), 
        is unconstitutional.

SEC. 1102. OBLIGATION CEILING.

    (a) General Limitation.--Notwithstanding any other provision of law 
but subject to subsections (g) and (h), the obligations for Federal-aid 
highway and highway safety construction programs shall not exceed--
            (1) $33,643,000,000 for fiscal year 2004;
            (2) $34,412,000,000 for fiscal year 2005;
            (3) $36,287,100,000 for fiscal year 2006;
            (4) $37,616,700,000 for fiscal year 2007;
            (5) $38,876,400,000 for fiscal year 2008; and
            (6) $40,231,500,000 for fiscal year 2009.
    (b) Exceptions.--The limitations under subsection (a) shall not 
apply to obligations--
            (1) under section 125 of title 23, United States Code;
            (2) under section 147 of the Surface Transportation 
        Assistance Act of 1978;
            (3) under section 9 of the Federal-Aid Highway Act of 1981;
            (4) under sections 131(b) and 131(j) of the Surface 
        Transportation Assistance Act of 1982;
            (5) under sections 149(b) and 149(c) of the Surface 
        Transportation and Uniform Relocation Assistance Act of 1987;
            (6) under sections 1103 through 1108 of the Intermodal 
        Surface Transportation Efficiency Act of 1991;
            (7) under section 157 of title 23, United States Code, as 
        in effect on June 8, 1998;
            (8) under section 105 of title 23, United States Code (but, 
        for each of fiscal years 1998 through 2013), only in an amount 
        equal to $639,000,000 per fiscal year; and
            (9) for Federal-aid highway programs for which obligation 
        authority was made available under the Transportation Equity 
        Act for the 21st Century or subsequent public laws for multiple 
        years or to remain available until used, but only to the extent 
        that such obligation authority has not lapsed or been used.
    (c) Distribution of Obligation Authority.--For each of fiscal years 
2004 through 2009, the Secretary shall--
            (1) not distribute obligation authority provided by 
        subsection (a) for such fiscal year for amounts authorized for 
        administrative expenses and amounts authorized for the highway 
        use tax evasion program and the Bureau of Transportation 
        Statistics;
            (2) not distribute an amount of obligation authority 
        provided by subsection (a) that is equal to the unobligated 
        balance of amounts made available from the Highway Trust Fund 
        (other than the Mass Transit Account) for Federal-aid highway 
        and highway safety programs for previous fiscal years the funds 
        for which are allocated by the Secretary;
            (3) determine the ratio that--
                    (A) the obligation authority provided by subsection 
                (a) for such fiscal year less the aggregate of amounts 
                not distributed under paragraphs (1) and (2), bears to
                    (B) the total of the sums authorized to be 
                appropriated for Federal-aid highway and highway safety 
                construction programs (other than sums authorized to be 
                appropriated for sections set forth in paragraphs (1) 
                through (7) of subsection (b) and sums authorized to be 
                appropriated for section 105 of title 23, United States 
                Code, equal to the amount referred to in subsection 
                (b)(8)) for such fiscal year less the aggregate of the 
                amounts not distributed under paragraph (1) of this 
                subsection;
            (4) distribute the obligation authority provided by 
        subsection (a) less the aggregate amounts not distributed under 
        paragraphs (1) and (2) for section 117 of title 23, United 
        States Code (relating to high priority projects program), 
        section 14501 of title 40, United States Code (relating to 
        Appalachian development highway system), and $2,000,000,000 for 
        such fiscal year under section 105 of title 23, United States 
        Code (relating to minimum guarantee) so that amount of 
        obligation authority available for each of such sections is 
        equal to the amount determined by multiplying the ratio 
        determined under paragraph (3) by the sums authorized to be 
        appropriated for such section (except in the case of section 
        105, $2,000,000,000) for such fiscal year;
            (5) distribute the obligation authority provided by 
        subsection (a) less the aggregate amounts not distributed under 
        paragraphs (1) and (2) and amounts distributed under paragraph 
        (4) for each of the programs that are allocated by the 
        Secretary under this Act and title 23, United States Code 
        (other than activities to which paragraph (1) applies and 
        programs to which paragraph (4) applies) by multiplying the 
        ratio determined under paragraph (3) by the sums authorized to 
        be appropriated for such program for such fiscal year; and
            (6) distribute the obligation authority provided by 
        subsection (a) less the aggregate amounts not distributed under 
        paragraphs (1) and (2) and amounts distributed under paragraphs 
        (4) and (5) for Federal-aid highway and highway safety 
        construction programs (other than the minimum guarantee 
        program, but only to the extent that amounts apportioned for 
        the minimum guarantee program for such fiscal year exceed 
        $2,639,000,000, and the Appalachian development highway system 
        program) that are apportioned by the Secretary under this Act 
        and title 23, United States Code, in the ratio that--
                    (A) sums authorized to be appropriated for such 
                programs that are apportioned to each State for such 
                fiscal year, bear to
                    (B) the total of the sums authorized to be 
                appropriated for such programs that are apportioned to 
                all States for such fiscal year.
    (d) Redistribution of Unused Obligation Authority.--Notwithstanding 
subsection (c), the Secretary shall after August 1 of each of fiscal 
years 2004 through 2009 revise a distribution of the obligation 
authority made available under subsection (c) if an amount made 
available under this section will not be obligated during the fiscal 
year and redistribute sufficient amounts to those States able to 
obligate amounts in addition to those previously distributed during 
that fiscal year. In making the redistribution, the Secretary shall 
give priority to those States having large unobligated balances of 
funds apportioned under sections 104 and 144 of title 23, United States 
Code.
    (e) Applicability of Obligation Limitations to Transportation 
Research Programs.--Obligation limitations imposed by subsection (a) 
shall apply to transportation research programs carried out under 
chapter 5 of title 23, United States Code, and under title V of this 
Act; except that obligation authority made available for such programs 
under such limitations shall remain available for a period of 3 fiscal 
years.
    (f) Redistribution of Certain Authorized Funds.--Not later than 30 
days after the date of the distribution of obligation authority under 
subsection (c) for each of fiscal years 2004 through 2009, the 
Secretary shall distribute to the States any funds (1) that are 
authorized to be appropriated for such fiscal year for Federal-aid 
highway programs, and (2) that the Secretary determines will not be 
allocated to the States, and will not be available for obligation, in 
such fiscal year due to the imposition of any obligation limitation for 
such fiscal year. Such distribution to the States shall be made in the 
same ratio as the distribution of obligation authority under subsection 
(c)(6). The funds so distributed shall be available for any purposes 
described in section 133(b) of title 23, United States Code.
    (g) Special Rule.--Obligation authority distributed for a fiscal 
year under subsection (c)(4) for a section set forth in subsection 
(c)(4) shall remain available until used for obligation of funds for 
such section and shall be in addition to the amount of any limitation 
imposed on obligations for Federal-aid highway and highway safety 
construction programs for future fiscal years.
    (h) Increase in Obligation Limit.--Limitations on obligations 
imposed by subsection (a) for a fiscal year shall be increased by an 
amount equal to the amount determined pursuant to section 
251(b)(1)(B)(ii)(I)(cc) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 901(b)(2)(B)(ii)(I)(cc)) for such fiscal 
year. Any such increase shall be distributed in accordance with this 
section.
    (i) Limitations on Obligations for Administrative Expenses.--
Notwithstanding any other provision of law, the total amount of all 
obligations under section 104(a) of title 23, United States Code, shall 
not exceed--
            (1) $390,000,000 for fiscal year 2004;
            (2) $395,000,000 for fiscal year 2005;
            (3) $395,000,000 for fiscal year 2006;
            (4) $395,000,000 for fiscal year 2007;
            (5) $395,000,000 for fiscal year 2008; and
            (6) $400,000,000 for fiscal year 2009.

SEC. 1103. APPORTIONMENTS.

    (a) Administrative Expenses.--Section 104(a) of title 23, United 
States Code, is amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) In general.--There are authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) for purposes described in paragraph (2) $390,000,000 
        for fiscal year 2004, $395,000,000 for fiscal year 2005, 
        $395,000,000 for fiscal year 2006, $395,000,000 for fiscal year 
        2007, $395,000,000 for fiscal year 2008, and $400,000,000 for 
        fiscal year 2009.
            ``(2) Use of funds.--The amounts authorized to be 
        appropriated by paragraph (1) are authorized for the following 
        purposes:
                    ``(A) To administer the provisions of law to be 
                financed 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.'';
            (2) in paragraph (3) by striking ``sum deducted under'' and 
        inserting ``amounts authorized to be appropriated by''; and
            (3) in paragraph (4)--
                    (A) by striking ``sums deducted under'' and 
                inserting ``amounts authorized to be appropriated by''; 
                and
                    (B) by striking ``and the Federal Motor Carrier 
                Safety Administration''.
    (b) National Highway System.--Section 104(b) of such title is 
amended--
            (1) by striking ``the deduction authorized by subsection 
        (a) and''; and
            (2) in paragraph (1)(A)--
                    (A) by striking ``$36,400,000 for each fiscal 
                year'' and inserting ``$40,000,000 for fiscal year 
                2004, $40,000,000 for fiscal year 2005, $40,000,000 for 
                fiscal year 2006, $50,000,000 for fiscal year 2007, 
                $50,000,000 for fiscal year 2008, and $50,000,000 for 
                fiscal year 2009''; and
                    (B) by striking ``$18,800,000 for each of fiscal 
                years 1998 through 2002'' and inserting ``$20,000,000 
                for fiscal year 2004 and $30,000,000 for each of fiscal 
                years 2005 through 2009''.
    (c) Conforming Amendments.--Section 104 of such title is amended--
            (1) in subsection (f)(1)--
                    (A) by striking ``, after making the deduction 
                authorized by subsection (a) of this section,''; and
                    (B) by striking ``remaining''; and
            (2) in subsection (i) by striking ``deducted'' and 
        inserting ``authorized to be appropriated''.
    (d) Puerto Rico Highway Program.--Section 1214(r) of the 
Transportation Equity Act for the 21st Century (112 Stat. 209; 117 
Stat. 1114; 118 Stat. 1149) is amended--
            (1) in paragraph (1) by striking ``1101(a)(15) for each of 
        fiscal years 1998 through 2005'' and inserting ``1101(a)(24) 
        for each of fiscal years 2004 through 2009 of the 
        Transportation Equity Act: A Legacy for Users''; and
            (2) in paragraph (2) by striking ``1101(a)(15) of this 
        Act'' and inserting ``1101(a)(24) of the Transportation Equity 
        Act: A Legacy for Users''.

SEC. 1104. MINIMUM GUARANTEE.

    To be supplied.

SEC. 1105. PROJECT APPROVAL AND OVERSIGHT.

    Section 106 of title 23, United States Code, is amended by striking 
subsection (h) and inserting the following:
    ``(h) Oversight Program.--
            ``(1) In general.--The Secretary shall establish an 
        oversight program to monitor the effective and efficient use of 
        funds authorized to carry out this title. At a minimum, the 
        program shall be responsive to all areas related to financial 
        integrity and project delivery.
            ``(2) Financial integrity.--
                    ``(A) Financial management systems.--The Secretary 
                shall perform annual reviews that address elements of 
                the State transportation departments' financial 
                management systems that affect projects approved under 
                subsection (a).
                    ``(B) Project costs.--The Secretary shall develop 
                minimum standards for estimating project costs and 
                shall periodically evaluate the States' practices for 
                estimating project costs, awarding contracts, and 
                reducing project costs.
                    ``(C) Responsibility of the states.--The States are 
                responsible for determining that subrecipients of 
                Federal funds under this title have sufficient 
                accounting controls to properly manage such Federal 
                funds. The Secretary shall periodically review the 
                States' monitoring of subrecipients.
            ``(3) Project delivery.--The Secretary shall perform annual 
        reviews that address elements of a State's project delivery 
        system, which includes one or more activities that are involved 
        in the life cycle of a project from its conception to its 
        completion.
            ``(4) Responsibility of the states.--The States are 
        responsible for determining that subrecipients of Federal funds 
        under this title have adequate project delivery systems for 
        projects approved under this section. The Secretary shall 
        periodically review the States' monitoring of subrecipients.
            ``(5) Specific oversight responsibilities.--Nothing in this 
        section shall affect or discharge any oversight responsibility 
        of the Secretary specifically provided for under this title or 
        other Federal law. In addition, the Secretary shall retain full 
        oversight responsibilities for the design and construction of 
        all Appalachian development highways under section 14501 of 
        title 40.
    ``(i) Major Projects.--
            ``(1) In general.--Notwithstanding any other provision in 
        this section, a recipient of Federal financial assistance for a 
        project under this title with an estimated total cost of 
        $500,000,000 or more, or any other project in the discretion of 
        the Secretary, shall submit to the Secretary a project 
        management plan and an annual financial plan.
            ``(2) Project management plan.--The project management plan 
        shall document the procedures and processes in place to provide 
        timely information to the project decision makers to manage 
        effectively the scope, costs, schedules, and quality, and the 
        Federal requirements of the project and the role of the agency 
        leadership and management team in the delivery of the project.
            ``(3) Financial plan.--The financial plan shall be based on 
        detailed estimates of the cost to complete the project. Annual 
        updates shall be submitted based on reasonable assumptions, as 
        determined by the Secretary, of future increases in the cost to 
        complete the project.
    ``(j) Other Projects.--A recipient of Federal financial assistance 
for a project under this title with an estimated total cost of 
$100,000,000 or more that is not covered by subsection (h) shall 
prepare an annual financial plan. Annual financial plans prepared under 
this subsection shall be made available to the Secretary for review 
upon the Secretary's request.''.

SEC. 1106. TEMPORARY TRAFFIC CONTROL DEVICES.

    (a) Standards.--Section 109(e) of title 23, United States Code, is 
amended--
            (1) by striking ``(e) No funds'' and inserting the 
        following:
    ``(e) Installation of Safety Devices.--
            ``(1) Highway and railroad grade crossings and 
        drawbridges.--No funds''; and
            (2) by adding at the end the following:
            ``(2) Temporary traffic control devices.--No funds shall be 
        approved for expenditure on any Federal-aid highway, or highway 
        affected under chapter 2 of this title, unless proper temporary 
        traffic control devices to improve safety in work zones will be 
        installed and maintained during construction, utility, and 
        maintenance operations on that portion of the highway with 
        respect to which such expenditures are to be made. Installation 
        and maintenance of the devices shall be in accordance with the 
        Manual on Uniform Traffic Control Devices.''.
    (b) Letting of Contracts.--Section 112 of such title is amended--
            (1) by striking subsection (f);
            (2) by redesignating subsection (g) as subsection (f); and
            (3) by adding at the end the following:
    ``(g) Temporary Traffic Control Devices.--
            ``(1) Issuance of regulations.--The Secretary, after 
        consultation with appropriate Federal and State officials, 
        shall issue regulations establishing the conditions for the 
        appropriate use of, and expenditure of funds for, uniformed law 
        enforcement officers, positive protective measures between 
        workers and motorized traffic, and installation and maintenance 
        of temporary traffic control devices during construction, 
        utility, and maintenance operations.
            ``(2) Effects of regulations.--Based on regulations issued 
        under paragraph (1), a State shall--
                    ``(A) develop separate pay items for the use of 
                uniformed law enforcement officers, positive protective 
                measures between workers and motorized traffic, and 
                installation and maintenance of temporary traffic 
                control devices during construction, utility, and 
                maintenance operations; and
                    ``(B) incorporate such pay items into contract 
                provisions to be included in each contract entered into 
                by the State with respect to a highway project to 
                ensure compliance with section 109(e)(2).
            ``(3) Limitation.--Nothing in the regulations shall be 
        construed to prohibit a State from implementing standards that 
        are more stringent than those required under the regulations.
            ``(4) Positive protective measures defined.--In this 
        subsection, the term `positive protective measures' means 
        temporary traffic barriers, crash cushions, and other 
        strategies to avoid traffic accidents in work zones, including 
        full road closures.''.

SEC. 1107. REVENUE ALIGNED BUDGET AUTHORITY.

    (a) Allocation.--Section 110(a)(1) of title 23, United States Code, 
is amended--
            (1) by striking ``2000'' and inserting ``2006'';
            (2) by inserting after ``such fiscal year'' the following: 
        ``and the succeeding fiscal year''.
    (b) Reduction.--Section 110(a)(2) of such title is amended--
            (1) by striking ``2000'' and inserting ``2006'';
            (2) by striking ``October 1 of the succeeding'' and 
        inserting ``October 15 of such''; and
            (3) by inserting after ``Account)'' the following: ``for 
        such fiscal year and the succeeding fiscal year''.
    (c) General Distribution.--Section 110(b)(1)(A) of such title is 
amended by striking ``Transportation Equity Act for the 21st Century'' 
and inserting ``Transportation Equity Act: A Legacy for Users''.
    (d) Technical Amendment.--Section 110(b)(1)(A) of title 23, United 
States Code, is amended by striking ``for'' the second place it 
appears.

SEC. 1108. EMERGENCY RELIEF.

    (a) In General.--Effective October 1, 2004, section 125(c)(1) of 
title 23, United States Code, is amended by striking ``$100,000,000'' 
and inserting ``$120,000,000''.
    (b) Authorizations of Appropriations From General Fund.--There is 
authorized to be appropriated for a fiscal year such sums as may be 
necessary for allocations by the Secretary described in subsections (a) 
and (b) of sections 125 of title 23, United States Code, if the total 
of those allocations in such fiscal year are in excess of $120,000,000.

SEC. 1109. SURFACE TRANSPORTATION PROGRAM.

    Section 133(f)(1) of title 23, United States Code, is amended--
            (1) by striking ``1998 through 2000'' and inserting ``2004 
        through 2006''; and
            (2) by striking ``2001 through 2003'' and inserting ``2007 
        through 2009''.

SEC. 1110. HIGHWAY USE TAX EVASION PROJECTS.

    (a) Eligible Activities.--
            (1) Intergovernmental enforcement efforts.--Section 
        143(b)(2) of title 23, United States Code, is amended by 
        inserting before the period the following: ``; except that of 
        funds so made available for each of fiscal years 2004 through 
        2009, $2,000,000 shall be available only to carry out 
        intergovernmental enforcement efforts, including research and 
        training''.
            (2) Conditions on funds allocated to internal revenue 
        service.--Section 143(b)(3) of such title is amended by 
        striking ``The'' and inserting ``Except as otherwise provided 
        in this section, the''.
            (3) Limitation on use of funds.--Section 143(b)(4) of such 
        title is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (F);
                    (B) by striking the period at the end of 
                subparagraph (G) and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(H) to support efforts between States and Indian 
                tribes to address issues related to State motor fuel 
                taxes; and
                    ``(I) to analyze and implement programs to reduce 
                tax evasion associated with foreign imported fuel.''.
            (4) Reports.--Section 143(b) of such title is amended by 
        adding at the end the following:
            ``(9) Reports.--The Commissioner of the Internal Revenue 
        Service and each State shall submit to the Secretary an annual 
        report that describes the projects, examinations, and criminal 
        investigations funded by and carried out under this section. 
        Such report shall specify the annual yield estimated for each 
        project funded under this section.''.
    (b) Excise Fuel Reporting System.--
            (1) In general.--Section 143(c)(1) of such title is 
        amended--
                    (A) by striking ``August 1, 1998,'' and inserting 
                ``90 days after the date of enactment of the 
                Transportation Equity Act: A Legacy for Users,'';
                    (B) by striking ``development'' and inserting 
                ``completion, operation,''; and
                    (C) by striking ``an excise fuel reporting system 
                (in this subsection referred to as `the system')'' and 
                inserting ``an excise summary terminal activity 
                reporting system''.
            (2) Elements of memorandum of understanding.--Section 
        143(c)(2) of such title is amended--
                    (A) by striking ``the system'' the first place it 
                appears and inserting ``the excise summary terminal 
                activity reporting system'';
                    (B) in subparagraph (A) by striking ``develop'' and 
                inserting ``complete'';
                    (C) by striking ``and'' at the end of subparagraph 
                (B);
                    (D) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (E) by adding at the end the following:
                    ``(D) the Commissioner of the Internal Revenue 
                Service shall submit and the Secretary shall approve a 
                budget and project plan for the completion, operation, 
                and maintenance of the system.''; and
            (3) Funding priority.--Section 143(c)(3) of such title is 
        amended to read as follows:
            ``(3) Funding.--Of the amounts made available to carry out 
        this section for each of fiscal years 2004 through 2009, the 
        Secretary shall make available to the Internal Revenue Service 
        such funds as may be necessary to complete, operate, and 
        maintain the excise summary terminal activity reporting system 
        in accordance with this subsection.''.
    (c) Registration System and Electronic Database.--Section 143 of 
such title is further amended by adding at the end the following:
    ``(d) Pipeline, Vessel, and Barge Registration System.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of this subsection, the Secretary shall enter into a 
        memorandum of understanding with the Commissioner of the 
        Internal Revenue Service for the purposes of the development, 
        operation, and maintenance of a registration system for 
        pipelines, vessels, and barges, and operators of such 
        pipelines, vessels, and barges, that make bulk transfers of 
        taxable fuel.
            ``(2) Elements of memorandum of understanding.--The 
        memorandum of understanding shall provide that--
                    ``(A) the Internal Revenue Service shall develop 
                and maintain the registration system through contracts;
                    ``(B) the Commissioner of the Internal Revenue 
                Service shall submit and the Secretary shall approve a 
                budget and project plan for development, operation, and 
                maintenance of the registration system;
                    ``(C) the registration system shall be under the 
                control of the Internal Revenue Service; and
                    ``(D) the registration system shall be made 
                available for use by appropriate State and Federal 
                revenue, tax, and law enforcement authorities, subject 
                to section 6103 of the Internal Revenue Code of 1986.
            ``(3) Funding.--Of the amounts made available to carry out 
        this section for each of fiscal years 2004 through 2009, the 
        Secretary shall make available to the Internal Revenue Service 
        such funds as may be necessary to complete, operate, and 
        maintain a registration system for pipelines, vessels, and 
        barges, and operators of such pipelines, vessels, and barges, 
        that make bulk transfers of taxable fuel in accordance with 
        this subsection.
    ``(e) Heavy Vehicle Use Tax Payment Database.--
            ``(1) In general.--Not later than 90 days after the date of 
        enactment of this subsection, the Secretary shall enter into a 
        memorandum of understanding with the Commissioner of the 
        Internal Revenue Service for the purposes of the establishment, 
        operation, and maintenance of an electronic database of heavy 
        vehicle highway use tax payments.
            ``(2) Elements of memorandum of understanding.--The 
        memorandum of understanding shall provide that--
                    ``(A) the Internal Revenue Service shall establish 
                and maintain the electronic database through contracts;
                    ``(B) the Commissioner of the Internal Revenue 
                Service shall submit and the Secretary shall approve a 
                budget and project plan for establishment, operation, 
                and maintenance of the electronic database;
                    ``(C) the electronic database shall be under the 
                control of the Internal Revenue Service; and
                    ``(D) the electronic database shall be made 
                available for use by appropriate State and Federal 
                revenue, tax, and law enforcement authorities, subject 
                to section 6103 of the Internal Revenue Code of 1986.
            ``(3) Funding.--Of the amounts made available to carry out 
        this section for each of fiscal years 2004 through 2009, the 
        Secretary shall make available to the Internal Revenue Service 
        such funds as may be necessary to establish, operate, and 
        maintain an electronic database of heavy vehicle highway use 
        tax payments in accordance with this subsection.
    ``(f) Reports.--Not later than March 31 and September 30 of each 
year, the Commissioner of the Internal Revenue Service shall provide 
reports to the Secretary on the status of the Internal Revenue Service 
projects funded under this section related to the excise summary 
terminal activity reporting system, the pipeline, vessel, and barge 
registration system, and the heavy vehicle use tax electronic 
database.''.

SEC. 1111. APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM.

    (a) Apportionment.--The Secretary shall apportion funds made 
available by section 1101(a)(7) of this Act for fiscal years 2004 
through 2009 among the States based on the latest available cost to 
complete estimate for the Appalachian development highway system under 
section 14501 title 40, United States Code.
    (b) Applicability of Title 23.--Funds made available by section 
1101(a)(7) of this Act for the Appalachian development highway system 
shall be available for obligation in the same manner as if such funds 
were apportioned under chapter 1 of title 23, United States Code; 
except that the Federal share of the cost of any project under this 
section shall be determined in accordance with such section 14501 of 
title 40, United States Code, and such funds shall be available to 
construct highways and access roads under such section and shall remain 
available until expended.
    (c) Use of Toll Credits.--Section 120(j)(1) of title 23, United 
States Code is amended by inserting ``and the Appalachian development 
highway system program under section 14501 of title 40'' after 
``section 125''.

SEC. 1112. CONSTRUCTION OF FERRY BOATS AND FERRY TERMINAL FACILITIES.

    (a) In General.--Subchapter I of chapter 1 of title 23, United 
States Code, is amended by adding at the end the following:
``Sec. 165. Construction of ferry boats and ferry terminal facilities
    ``(a) In General.--The Secretary shall carry out a program for 
construction of ferry boats and ferry terminal facilities in accordance 
with section 129(c).
    ``(b) Federal Share.--The Federal share payable for construction of 
ferry boats and ferry terminal facilities under this section shall be 
80 percent of the cost thereof.
    ``(c) Availability of Amounts.--Amounts made available to carry out 
this section shall remain available until expended.
    ``(d) Set-Aside for Projects on NHS.--
            ``(1) In general.--$20,000,000 of the amount made available 
        to carry out this section for each of fiscal years 2004 through 
        2009 shall be obligated for the construction or refurbishment 
        of ferry boats and ferry terminal facilities and approaches to 
        such facilities within marine highway systems that are part of 
        the National Highway System.
            ``(2) Alaska.--$10,000,000 of the $20,000,000 for a fiscal 
        year made available under paragraph (1) shall be made available 
        to the State of Alaska.
            ``(3) New jersey.--$5,000,000 of the $20,000,000 for a 
        fiscal year made available under paragraph (1) shall be made 
        available to the State of New Jersey.
            ``(4) Washington.--$5,000,000 of the $20,000,000 for a 
        fiscal year made available under paragraph (1) shall be made 
        available to the State of Washington.
    ``(e) Applicability.--All provisions of this chapter that are 
applicable to the National Highway System, other than provisions 
relating to apportionment formula and Federal share, shall apply to 
funds made available to carry out this section, except as determined by 
the Secretary to be inconsistent with this section.''.
    (b) Conforming Amendment.--The analysis for subchapter I of chapter 
1 of such title is amended by adding at the end the following:

``165. Construction of ferry boats and ferry terminal facilities.''.
    (c) National Ferry Database.--
            (1) Establishment.--The Secretary, acting through the 
        Bureau of Transportation Statistics, shall establish and 
        maintain a national ferry database.
            (2) Contents.--The database shall contain current 
        information regarding ferry systems, including information 
        regarding routes, vessels, passengers and vehicles carried, 
        funding sources and such other information as the Secretary 
        considers useful.
            (3) Update report.--Using information collected through the 
        database, the Secretary shall periodically modify as 
        appropriate the report submitted under section 1207(c) of the 
        Transportation Equity Act for the 21st Century (23 U.S.C. 129 
        note; 112 Stat. 185-186).
            (4) Requirements.--The Secretary shall--
                    (A) compile the database not later than 1 year 
                after the date of enactment of this Act and update the 
                database every 2 years thereafter;
                    (B) ensure that the database is easily accessible 
                to the public;
                    (C) make available, from the ferry boat and ferry 
                terminal program authorized under section 165 of title 
                23, United States Code, not more than $500,000 for each 
                of fiscal years 2005 through 2009 to establish the 
                database.

SEC. 1113. INTERSTATE MAINTENANCE DISCRETIONARY.

    (a) In General.--Section 118 of title 23, United States Code, is 
amended--
            (1) by striking subsection (c);
            (2) in subsection (e) by inserting ``Special Rules.--'' 
        before ``Funds made''; and
            (3) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.
    (b) Conforming Amendment.--Section 103(d)(1) of such title is 
amended by striking ``or 118(c)''.
    (c) Technical Amendments.--
            (1) Section 114.--Section 114(a) of such title is amended 
        by striking ``Except as provided in section 117 of this title, 
        such'' and inserting ``Such''.
            (2) Section 116.--Section 116(b) of such title is amended 
        by striking ``highway department'' and inserting 
        ``transportation department''.
            (3) Section 120.--Section 120(e) of such title is amended 
        in the first sentence by striking ``such system'' and inserting 
        ``such highway''.
            (4) Section 126.--Section 126(a) of such title is amended 
        by inserting ``under'' before ``section 104(b)(3)''.
            (5) Section 127.--Section 127 of such title is amended by 
        striking ``118(b)(1)'' and inserting ``118(b)(2)''.
            (6) Bicycle and pedestrian safety grants.--Section 1212(i) 
        of the Transportation Equity Act for the 21st Century (112 
        Stat. 196-197) is amended by redesignating subparagraphs (D) 
        and (E) as paragraphs (2) and (3), respectively, and moving 
        such paragraphs 2 ems to the left.
    (d) Limitation.--The amendments made by this section shall not 
apply to, or have any affect with respect to, funds made available 
under section 118 of title 23, United States Code, before the date of 
enactment of this section.
    (e) Effective Date.--The amendments made by subsections (a) and (b) 
of this section shall take effect on September 30, 2005.

SEC. 1114. HIGHWAY BRIDGE.

    (a) Scour Countermeasures.--Section 144(d) of title 23, United 
States Code, is amended to read as follows:
    ``(d) Applications for and Approval of Assistance.--
            ``(1) Bridge replacement or rehabilitation.--Whenever any 
        State or States make application to the Secretary for 
        assistance in replacing or rehabilitating a highway bridge 
        which the priority system established under subsections (b) and 
        (c) shows to be eligible, the Secretary may approve Federal 
        participation in replacing such bridge with a comparable 
        facility or in rehabilitating such bridge.
            ``(2) Preventive maintenance, scour measures, and 
        applications of certain compositions.--Whenever any State makes 
        application to the Secretary for assistance in painting, 
        seismic retrofit, or preventive maintenance of, or installing 
        scour countermeasures or applying calcium magnesium acetate, 
        sodium acetate/formate, or other environmentally acceptable, 
        minimally corrosive anti-icing and de-icing compositions to, 
        the structure of a highway bridge, the Secretary may approve 
        Federal participation in the painting, seismic retrofit, or 
        preventive maintenance of, or installation of scour 
        countermeasures or application of acetate or sodium acetate/
        formate or such anti-icing or de-icing composition to, such 
        structure.
            ``(3) Eligibility.--The Secretary shall determine the 
        eligibility of highway bridges for replacement or 
        rehabilitation for each State based upon the unsafe highway 
        bridges in such State; except that a State may carry out a 
        project for preventive maintenance on a bridge, seismic 
        retrofit of a bridge, or installing scour countermeasures to a 
        bridge under this section without regard to whether the bridge 
        is eligible for replacement or rehabilitation under this 
        section.''.
    (b) Bridge Discretionary Set-aside.--Section 144(g)(1) of such 
title is amended by adding at the end the following:
                    ``(D) Fiscal years 2004 through 2009.--Of the 
                amounts authorized to be appropriated to carry out the 
                bridge program under this section for each of the 
                fiscal years 2004 through 2009, all but $100,000,000 
                shall be apportioned as provided in subsection (e). 
                Such $100,000,000 shall be available at the discretion 
                of the Secretary; except that $25,000,000 shall be 
                available only for projects for the seismic retrofit of 
                bridges, and of which $10,000,000 shall be available 
                only for the seismic retrofit of a bridge described in 
                subsection (l), and except as provided in subparagraph 
                (E).
                    ``(E) Gravina access.--
                            ``(i) In general.--Of the amounts 
                        authorized to be appropriated to carry out the 
                        bridge program under this paragraph, for each 
                        of the fiscal years 2005 through 2009, 
                        $10,000,000 shall be set aside from the 
                        $100,000,000 available at the discretion of the 
                        Secretary under subparagraph (D) for the 
                        construction of a bridge joining the Island of 
                        Gravina to the community of Ketchikan in 
                        Alaska.
                            ``(ii) Scoring.--The project described in 
                        this subparagraph shall not be counted for 
                        purposes of the reduction set forth in the 
                        fourth sentence of subsection (e).''.
    (c) Off-System Bridges.--Section 144(g)(3) of such title is 
amended--
            (1) by striking ``15 percent'' and inserting ``20 
        percent'';
            (2) by striking ``1987'' and inserting ``2005'';
            (3) by striking ``2004'' the first place it apears and all 
        that follows through ``2005,'' and inserting ``2009 for the 
        bridge program,'';
            (4) by inserting ``, perform systematic preventive 
        maintenance,'' after ``paint''; and
            (5) by inserting a comma before ``to highway bridges''.
    (d) Technical Amendment.--Section 144(i) of such title is amended 
by striking ``at the same time'' and all that follows through 
``Congress''.

SEC. 1115. TRANSPORTATION AND COMMUNITY AND SYSTEM PRESERVATION 
              PROGRAM.

    (a) Extension.--Section 1221(e)(1) of Transportation Equity Act for 
the 21st Century (23 U.S.C. 101 note; 112 Stat. 223; 118 Stat. 879; 118 
Stat. 1149) is amended--
            (1) by striking ``1999 and'' and inserting ``1999,''; and
            (2) by striking ``2004'' the first place it appears and all 
        that follows through ``2005'' and inserting the following: ``, 
        and $25,000,000 for fiscal year 2004, $30,000,000 for fiscal 
        year 2005, $35,000,000 for fiscal year 2006, $35,000,000,000 
        for fiscal year 2007, and $35,000,000 for each of fiscal years 
        2008 and 2009''.
    (b) Federal Share.--Section 1221(e)(2) of such Act is amended by 
inserting before the period at the end ``; except that such funds shall 
not be transferable and the Federal share for projects and activities 
carried out with such funds shall be determined in accordance with 
section 120(b) of title 23, United States Code''.
    (c) Planning Activities Pilot Program.--Section 1221 of such Act is 
amended by adding at the end the following:
    ``(f) Planning Activities Pilot Program.--
            ``(1) In general.--The Secretary shall establish a pilot 
        program using funds set aside under paragraph (4) to support 
        planning and public participation activities related to highway 
        and public transportation projects.
            ``(2) Eligible activities.--Activities eligible to be 
        carried out under the pilot program may include the following:
                    ``(A) Improving data collection and analysis to 
                improve freight movement, intermodal connections, and 
                transportation access and efficiency for all users, 
                including children, older individuals, individuals with 
                disabilities, low-income individuals, and minority 
                communities.
                    ``(B) Supporting public participation by holding 
                public meetings using an interactive workshop format 
                facilitated by design or planning experts (or both) to 
                consider public input at the initial stages of project 
                development and during other phases of a project.
                    ``(C) Using innovative planning or design 
                visualization and simulation tools to improve the 
                evaluation of alternatives and their impacts and to 
                enhance public participation in the transportation 
                planning process, including tools having a structure 
                that enables modifications to scenarios and assumptions 
                in real time.
                    ``(D) Enhancing coordination among transportation, 
                land use, workforce development, human service, 
                economic development, and other agencies to strengthen 
                access to job training services, daycare centers, 
                health care facilities, senior centers, public schools, 
                universities, and residential areas, including the use 
                of integrated planning and service delivery, especially 
                for transit dependent and low-income individuals.
                    ``(E) Contracting with nonprofit organizations, 
                universities, and local agencies to deliver community-
                oriented transportation plans and projects, including 
                public outreach, context sensitive design, transit-
                oriented development, multimodal corridor investments, 
                commuter benefits deployment, and brownfield 
                redevelopment.
                    ``(F) Measuring and reporting on the annual 
                performance of the transportation system (or parts of) 
                relative to State or locally-established criteria 
                regarding--
                            ``(i) maintenance and operating costs of 
                        the transportation system, vehicle miles 
                        traveled, peak-period travel times, 
                        transportation choices, and mode shares;
                            ``(ii) location of housing units, jobs, 
                        medical facilities, and commercial centers to 
                        transit;
                            ``(iii) improvements directed to low-income 
                        families and older individuals;
                            ``(iv) transportation-related pollution 
                        emissions into the air and water;
                            ``(v) land consumption; and
                            ``(vi) other locally-significant factors.
                    ``(G) Improving regional travel and emission 
                modeling to examine factors not currently considered, 
                such as induced travel and land use effects of 
                transportation alternatives, types of vehicles owned 
                and used by households, time-of-day of travel and 
                linkage of trips to each other throughout the day, 
                effects of urban design and pedestrian and bicycle 
                environment on travel behavior, and impacts of 
                alternatives on the distribution of benefits and 
                burdens among various groups protected under title VI 
                of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 
                seq.).
            ``(3) Federal share.--Notwithstanding subsection (e)(2), 
        the Federal share of the cost of activities carried out under 
        the pilot program shall be 100 percent.
            ``(4) Set aside.--The Secretary shall make available 
        $1,500,000 of the amounts made available to carry out this 
        section for each of fiscal years 2005 through 2009 to carry out 
        the pilot program under this subsection.''.

SEC. 1116. DEPLOYMENT OF MAGNETIC LEVITATION TRANSPORTATION PROJECTS.

    (a) Definitions.--In this section, the following definitions apply:
            (1) Eligible project costs.--The term ``eligible project 
        costs''--
                    (A) means the capital cost of the fixed guideway 
                infrastructure of a MAGLEV project, including land, 
                piers, guideways, propulsion equipment and other 
                components attached to guideways, power distribution 
                facilities (including substations), control and 
                communications facilities, access roads, and storage, 
                repair, and maintenance facilities, but not including 
                costs incurred for a new station; and
                    (B) includes the costs of preconstruction planning 
                activities.
            (2) Full project costs.--The term ``full project costs'' 
        means the total capital costs of a MAGLEV project, including 
        eligible project costs and the costs of stations, vehicles, and 
        equipment.
            (3) MAGLEV.--The term ``MAGLEV'' means transportation 
        systems employing magnetic levitation that would be capable of 
        safe use by the public at a speed in excess of 240 miles per 
        hour.
            (4) State.--The term ``State'' has the meaning such term 
        has under section 101(a) of title 23, United States Code.
    (b) In General.--
            (1) Assistance for eligible projects.--The Secretary shall 
        make available financial assistance to pay the Federal share of 
        full project costs of eligible projects authorized by this 
        section.
            (2) Use of assistance.--Financial assistance provided under 
        paragraph (1) shall be used only to pay eligible project costs 
        of projects authorized by this section.
            (3) Applicability of other laws.--Financial assistance made 
        available under this section, and projects assisted with such 
        assistance, shall be subject to section 5333(a) of title 49, 
        United States Code.
    (c) Project Eligibility.--To be eligible to receive financial 
assistance under subsection (b), a project shall--
            (1) involve a segment or segments of a high-speed ground 
        transportation corridor;
            (2) result in an operating transportation facility that 
        provides a revenue producing service; and
            (3) be approved by the Secretary based on an application 
        submitted to the Secretary by a State or authority designated 
        by 1 or more States.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated from the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $15,000,000 for fiscal year 2005 and 
$20,000,000 for each of fiscal years 2006 through 2009.
    (e) Applicability of Title 23, United States Code.--Funds 
authorized to be appropriated by this section shall be available for 
obligation in the same manner as if such funds were apportioned under 
chapter 1 of title 23, United States Code; except that the Federal 
share of the full project costs of an eligible project shall be 80 
percent, and such funds shall remain available until expended and shall 
not be transferable.

SEC. 1117. RECREATIONAL TRAILS.

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

SEC. 1118. FEDERAL LANDS HIGHWAYS.

    (a) Contracts and Agreements With Indian Tribes.--Section 202(d)(3) 
of title 23, United States Code, is amended to read as follows:
            ``(3) 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 
                title for a highway, road, bridge, parkway, or transit 
                facility project that is located on an Indian 
                reservation or provides access to the reservation or a 
                community of the Indian tribe shall be made available, 
                on the request of the Indian tribal government, to the 
                Indian tribal government for use in carrying out, in 
                accordance with the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450 et seq.), 
                contracts and agreements for the planning, research, 
                engineering, and construction relating to such project.
                    ``(B) Exclusion of agency participation.--In 
                accordance with subparagraph (A), all funds for a 
                project to which subparagraph (A) applies shall be paid 
                to the Indian tribal government without regard to the 
                organizational level at which the Department of the 
                Interior has previously carried out, or the Department 
                of Transportation has previously carried out under the 
                Federal lands highway programs, the programs, 
                functions, services, or activities involved.
                    ``(C) Consortia.--Two or more Indian tribes that 
                are otherwise eligible to participate in a project to 
                which this title 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) Funding.--The amount an Indian tribal 
                government receives for a project under subparagraph 
                (A) shall equal the sum of the funding that the Indian 
                tribal government would otherwise receive for the 
                project in accordance with the funding formula 
                established under this subsection and such additional 
                amount 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 
                project.
                    ``(E) Eligibility.--An Indian tribal government may 
                receive funding under subparagraph (A) for a project in 
                a fiscal year if the Indian tribal government 
                demonstrates to the satisfaction of the Secretary 
                financial stability and financial management capability 
                as demonstrated in the annual auditing required under 
                the Indian Self-Determination and Education Assistance 
                Act (25 U.S.C. 450 et seq.) and, during the preceding 
                fiscal year, had no uncorrected significant and 
                material audit exceptions in the required annual audit 
                of the Indian tribe's self-determination contracts or 
                self-governance funding agreements with any Federal 
                agency.
                    ``(F) Assumption of functions and duties.--An 
                Indian tribal government receiving funding under 
                subparagraph (A) for a project shall assume all 
                functions and duties that the Secretary of the Interior 
                would have performed with respect to projects under 
                this chapter, other than those functions and duties 
                that inherently cannot be legally transferred under the 
                Indian Self-Determination and Education Assistance Act 
                (25 U.S.C. 450b et seq.).
                    ``(G) Powers.--An Indian tribal government 
                receiving funding under subparagraph (A) for a 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 project under this section if such funds had not 
                been transferred, except to the extent that such powers 
                are powers that inherently cannot be legally 
                transferred under the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b et seq.).
                    ``(H) Dispute resolution.--In the event of a 
                disagreement between the Secretary of Transportation or 
                the Secretary of the Interior and an Indian tribe over 
                whether a particular function, duty, or power may be 
                lawfully transferred under the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450b et seq.), the Indian tribe shall have the right to 
                pursue all alternative dispute resolutions and appeal 
                procedures authorized by such Act, including 
                regulations issued to carry out such Act.''.
    (b) Alaska Native Village Inventory.--Section 202(d)(2) of such 
title is amended by adding at the end the following:
                    ``(E) Alaska native road inventory.--
                            ``(i) In general.--For fiscal year 2005 and 
                        each fiscal year thereafter, any allocation of 
                        sums authorized to be appropriated for Indian 
                        reservation roads in Alaska shall be based on 
                        an inventory of roads within the exterior 
                        boundaries of village corporation land selected 
                        pursuant to the Alaska Native Claims Settlement 
                        Act (43 U.S.C. 1601 et seq.) that includes all 
                        routes previously included in such an 
                        inventory. The Secretary of Transportation and 
                        the Secretary of the Interior may include, in 
                        the inventory of roads, those proposed for 
                        inclusion by tribal village governments from 
                        among community streets within the village and 
                        those proposed primary access routes for 
                        inclusion by tribal village governments, 
                        including roads and trails between villages 
                        (including links over water), roads and trails 
                        to landfills, roads and trails to drinking 
                        water sources, roads and trails to natural 
                        resources identified for economic development, 
                        and roads and trails that provide access to 
                        intermodal termini, such as airports, harbors, 
                        or boat landings.
                            ``(ii) Limitation on primary access 
                        routes.--For purposes of this subparagraph, a 
                        proposed primary access route is the shortest 
                        practicable route connecting 2 points of the 
                        proposed route.''.
    (c) Grants for Financing Transportation Debt.--Section 202(d)(2)(A) 
of such title is amended by inserting before the period at the end the 
following: ``; except that, beginning October 1, 2004, the Secretary 
may use up to 3 percent of such funds for making grants to Indian 
tribes for the purpose of financing transportation debt for individual 
Indian reservation roads subject to all requirements governing Federal 
assistance for Indian roads under this section and section 204''.
    (d) Deputy Assistant Secretary of Transportation for Tribal 
Government Affairs.--Section 102 of title 49, United States Code, is 
amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Deputy Assistant Secretary for Tribal Government Affairs.--
The Department of Transportation shall have, within the office of the 
Secretary, a Deputy Assistant Secretary for Tribal Government Affairs 
appointed by the President to plan, coordinate, and implement the 
Department of Transportation policy and programs serving Indian tribes 
and tribal organizations and to coordinate tribal transportation 
programs and activities in all offices and administrations of the 
Department and to be a participant in any negotiated rulemaking related 
to, or has impact on, projects, programs, or funding associated with 
the tribal transportation program.''.
    (e) Alaska Native Village Transportation Program.--
            (1) Establishment.--Not later than 3 months after the date 
        of enactment of this Act, the Secretary and the Denali 
        Commission, in coordination with the Alaska Federation of 
        Natives, shall establish an Alaska Native Village 
        transportation program to pay the costs of planning, design, 
        construction, and maintenance of road and other surface 
        transportation facilities identified by Alaska Native Villages.
            (2) Alaska native village defined.--In this subsection, the 
        term ``Alaska Native Village'' has the same meaning such term 
        has as used by the Bureau of Indian Affairs in administering 
        the Indian reservation road program under section 202 of title 
        23, United States Code.

SEC. 1119. CONSERVATION MEASURES.

    (a) Refuge Roads.--Section 204(k)(1) of title 23, United States 
Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by redesigning subparagraph (C) as subparagraph (D);
            (3) by inserting after subparagraph (B) the following:
                    ``(C) construction, maintenance, and improvement of 
                wildlife observation infrastructure; and''; and
            (4) in subparagraph (D) (as so redesignated) by striking 
        ``maintenance and improvements'' and inserting ``construction, 
        maintenance, and improvements''.
    (b) Forest Highways.--Of the amounts made available for public 
lands highways under section 1101--
            (1) not to exceed $20,000,000 per fiscal year may be used 
        for the maintenance of forest highways;
            (2) not to exceed $2,500,000 per fiscal year may be used to 
        repair culverts and bridges on forest highways to facilitate 
        appropriate fish passage and ensure reasonable flows and to 
        maintain and remove such culverts and bridges as appropriate; 
        and
            (3) not to exceed $1,000,000 per fiscal year may be used 
        for signage identifying public hunting and fishing access.
    (c) Wildlife Vehicle Collision Reduction Study.--
            (1) In general.--The Secretary shall conduct a study of 
        methods to reduce collisions between motor vehicles and 
        wildlife (in this subsection referred to as ``wildlife vehicle 
        collisions'').
            (2) Contents.--
                    (A) Areas of study.--The study shall include an 
                assessment of the causes and impacts of wildlife 
                vehicle collisions and solutions and best practices for 
                reducing such collisions.
                    (B) Methods for conducting the study.--In carrying 
                out the study, the Secretary shall--
                            (i) conduct a thorough literature review; 
                        and
                            (ii) survey current practices of the 
                        Department of Transportation.
            (3) Consultation.--In carrying out the study, the Secretary 
        shall consult with appropriate experts in the field of wildlife 
        vehicle collisions.
            (4) Report.--
                    (A) In general.--Not later than 2 years after the 
                date of enactment of this Act, the Secretary shall 
                transmit to Congress a report on the results of the 
                study.
                    (B) Contents.--The report shall include a 
                description of each of the following:
                            (i) Causes of wildlife vehicle collisions.
                            (ii) Impacts of wildlife vehicle 
                        collisions.
                            (iii) Solutions to and prevention of 
                        wildlife vehicle collisions.
            (5) Manual.--
                    (A) Development.--Based upon the results of the 
                study, the Secretary shall develop a best practices 
                manual to support State efforts to reduce wildlife 
                vehicle collisions.
                    (B) Availability.--The manual shall be made 
                available to States not later than 1 year after the 
                date of transmission of the report under paragraph (4).
                    (C) Contents.--The manual shall include, at a 
                minimum, the following:
                            (i) A list of best practices addressing 
                        wildlife vehicle collisions.
                            (ii) A list of information, technical, and 
                        funding resources for addressing wildlife 
                        vehicle collisions.
                            (iii) Recommendations for addressing 
                        wildlife vehicle collisions.
                            (iv) Guidance for developing a State action 
                        plan to address wildlife vehicle collisions
            (6) Training.--Based upon the manual developed under 
        paragraph (5), the Secretary shall develop a training course on 
        addressing wildlife vehicle collisions for transportation 
        professionals.

SEC. 1120. PEDESTRIAN AND CYCLIST EQUITY.

    (a) Safe Routes to School Program.--
            (1) Establishment.--Subject to the requirements of this 
        subsection, the Secretary shall establish and carry out a safe 
        routes to school program for the benefit of children in primary 
        and middle schools.
            (2) Purposes.--The purposes of the program shall be--
                    (A) to enable and encourage children, including 
                those with disabilities, to walk and bicycle to school;
                    (B) to make bicycling and walking to school a safer 
                and more appealing transportation alternative, thereby 
                encouraging a healthy and active lifestyle from an 
                early age; and
                    (C) to facilitate the planning, development, and 
                implementation of projects and activities that will 
                improve safety and reduce traffic, fuel consumption, 
                and air pollution in the vicinity of schools.
            (3) Apportionment of funds.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), amounts made available to carry out this 
                subsection for a fiscal year shall be apportioned among 
                the States in the ratio that--
                            (i) the total student enrollment in primary 
                        and middle schools in each State; bears to
                            (ii) the total student enrollment in 
                        primary and middle schools in all the States.
                    (B) Minimum apportionment.--No State shall receive 
                an apportionment under this subsection for a fiscal 
                year of less than $2,000,000.
                     (C) Set-aside.--Before apportioning amounts made 
                available to carry out this subsection under this 
                paragraph for a fiscal year, the Secretary shall set 
                aside not more than 2 percent of such amounts for the 
                administrative expenses of the Secretary in carrying 
                out this subsection.
                    (D) Determination of student enrollments.--
                Determinations under this paragraph concerning student 
                enrollments shall be made by the Secretary.
            (4) Administration of amounts.--Amounts apportioned to a 
        State under this subsection shall be administered by the 
        State's department of transportation.
            (5) Eligible recipients.--Amounts apportioned to a State 
        under this subsection shall be used by the State to provide 
        financial assistance to State, local, and regional agencies, 
        including nonprofit organizations, that demonstrate an ability 
        to meet the requirements of this subsection.
            (6) Eligible projects and activities.--
                    (A) Infrastructure-related projects.--
                            (i) In general.--Amounts apportioned to a 
                        State under this subsection may be used for the 
                        planning, design, and construction of 
                        infrastructure-related projects that will 
                        substantially improve the ability of students 
                        to walk and bike to school, including sidewalk 
                        improvements, traffic calming and speed 
                        reduction improvements, pedestrian and bicycle 
                        crossing improvements, on-street bicycle 
                        facilities, off-street bicycle and pedestrian 
                        facilities, secure bicycle parking facilities, 
                        and traffic diversion improvements in the 
                        vicinity of schools.
                            (ii) Location of projects.--Infrastructure-
                        related projects under subparagraph (A) may be 
                        carried out on any public road or any bicycle 
                        or pedestrian pathway or trail in the vicinity 
                        of schools.
                    (B) Noninfrastructure-related activities.--
                            (i) In general.--In addition to projects 
                        described in subparagraph (A), amounts 
                        apportioned to a State under this subsection 
                        may be used for noninfrastructure-related 
                        activities to encourage walking and bicycling 
                        to school, including public awareness campaigns 
                        and outreach to press and community leaders, 
                        traffic education and enforcement in the 
                        vicinity of schools, student sessions on 
                        bicycle and pedestrian safety, health, and 
                        environment, and funding for training, 
                        volunteers, and managers of safe routes to 
                        school programs.
                            (ii) Allocation.--Not less than 10 percent 
                        and not more than 30 percent of the amount 
                        apportioned to a State under this subsection 
                        for a fiscal year shall be used for 
                        noninfrastructure-related activities under this 
                        subparagraph.
                    (C) Safe routes to school coordinator.--Each State 
                receiving an apportionment under this subsection for a 
                fiscal year shall use a sufficient amount of the 
                apportionment to fund a full-time position of 
                coordinator of the State's safe routes to school 
                program.
            (7) Clearinghouse.--
                    (A) In general.--The Secretary shall make grants to 
                a national nonprofit organization engaged in promoting 
                safe routes to schools to--
                            (i) operate a national safe routes to 
                        school clearinghouse;
                            (ii) develop information and educational 
                        programs on safe routes to school; and
                            (iii) provide technical assistance and 
                        disseminate techniques and strategies used for 
                        successful safe routes to school programs.
                    (B) Funding.--The Secretary shall carry out this 
                paragraph using amounts set aside for administrative 
                expenses under paragraph (3)(C).
            (8) Task force.--
                    (A) In general.--The Secretary shall establish a 
                national safe routes to school task force composed of 
                leaders in health, transportation, and education, 
                including representatives of appropriate Federal 
                agencies, to study and develop a strategy for advancing 
                safe routes to school programs nationwide.
                    (B) Report.--Not later than March 31, 2006, the 
                Secretary shall transmit to Congress a report 
                containing the results of the study conducted, and a 
                description of the strategy developed, under 
                subparagraph (A) and information regarding the use of 
                funds for infrastructure-related and noninfrastructure-
                related activities under subparagraphs (A) and (B) of 
                paragraph (6).
                    (C) Funding.--The Secretary shall carry out this 
                paragraph using amounts set aside for administrative 
                expenses under paragraph (3)(C).
            (9) Applicability of title 23.--Funds made available to 
        carry out this subsection shall be available for obligation in 
        the same manner as if such funds were apportioned under chapter 
        1 of title 23, United States Code; except that such funds shall 
        not be transferable and shall remain available until expended 
        and the Federal share of the cost of a project or activity 
        under this section shall be 100 percent. Notwithstanding any 
        other provision of law, projects assisted under this subsection 
        shall be treated as projects on a Federal-aid system under such 
        chapter.
            (10) Definitions.--In this subsection, the following 
        definitions apply:
                    (A) In the vicinity of schools.--The term ``in the 
                vicinity of schools'' means, with respect to a school, 
                the area within bicycling and walking distance of the 
                school (approximately 2 miles).
                    (B) Primary and middle schools.--The term ``primary 
                and middle schools'' means schools providing education 
                from kindergarten through eighth grade.
                    (C) State.--The term ``State'' has the meaning such 
                term has in section 101(a) of title 23, United States 
                Code.
    (b) Nonmotorized Transportation Pilot Program.--
            (1) Establishment.--The Secretary shall establish and carry 
        out a nonmotorized transportation pilot program to construct, 
        in 4 communities selected by the Secretary, a network of 
        nonmotorized transportation infrastructure facilities, 
        including sidewalks, bicycle lanes, and pedestrian and bicycle 
        trails, that connect directly with transit stations, schools, 
        residences, businesses, recreation areas, and other community 
        activity centers.
            (2) Purpose.--The purpose of the program shall be to 
        demonstrate the extent to which bicycling and walking can carry 
        a significant part of the transportation load, and represent a 
        major portion of the transportation solution, within selected 
        communities.
            (3) Grants.--In carrying out the program, the Secretary may 
        make grants to State, local, and regional agencies, that the 
        Secretary determines are suitably equipped and organized to 
        carry out the objectives and requirements of this subsection. 
        An agency that receives a grant under this subsection may 
        suballocate grant funds to a nonprofit organization to carry 
        out the program under this subsection.
            (4) Applicability of title 23.--Funds made available to 
        carry out this subsection shall be available for obligation in 
        the same manner as if such funds were apportioned under chapter 
        1 of title 23, United States Code; except that the Federal 
        share of the cost of a project carried out under this 
        subsection shall be 80 percent, and such funds shall not be 
        transferable and shall remain available until expended.
            (5) Statistical information.--In carrying out the program, 
        the Secretary shall develop statistical information on changes 
        in motor vehicle, nonmotorized transportation, and public 
        transportation usage in communities participating in the 
        program and assess how such changes decrease congestion and 
        energy usage, increase the frequency of biking and walking, and 
        promote better health and a cleaner environment.
            (6) Reports.--The Secretary shall transmit to Congress an 
        interim report not later than September 30, 2007, and a final 
        report not later than September 30, 2010, on the results of the 
        program.

SEC. 1121. NATIONAL COMMISSIONS.

    (a) National Commission on Future Revenue Sources to Support the 
Highway Trust Fund.--
            (1) Establishment.--There is established a National 
        Commission on Future Revenue Sources to Support the Highway 
        Trust Fund to conduct--
                    (A) a study evaluating alternative short-term 
                sources of Highway Trust Fund revenue to support the 
                requirements of section 1124; and
                    (B) a study evaluating alternative long-term 
                sources of revenue to support the Highway Trust Fund, 
                considering the findings, conclusions, and 
                recommendations of a recent study by the Transportation 
                Research Board of the National Academy of Sciences on 
                alternatives to the fuel tax to support highway program 
                financing and other relevant prior research.
            (2) Functions.--The Commission shall--
                    (A) develop recommendations to generate Highway 
                Trust Fund revenue necessary to accomplish the 
                requirements of section 1124;
                    (B) oversee a comprehensive investigation of 
                alternatives to replace the fuel tax as the principal 
                revenue source to support the Highway Trust Fund over 
                at least the next 30 years;
                    (C) consult with the Secretary of Transportation 
                and the Secretary of the Treasury to assure that their 
                views concerning essential attributes of Highway Trust 
                Fund revenue alternatives are understood;
                    (D) assure that State transportation agency views 
                on alternative revenue sources to support State 
                transportation improvement programs are appropriately 
                considered and that any recommended Federal financing 
                strategy take into account State financial 
                requirements; and
                    (E) make specific recommendations regarding actions 
                that need to be taken to develop alternative revenue 
                sources to support the Highway Trust Fund and when 
                those actions must be taken.
            (3) Specific matters to be addressed.--The study under 
        paragraph (1)(B) shall address specifically--
                    (A) advantages and disadvantages of alternative 
                revenue sources to meet anticipated Federal surface 
                transportation financial requirements;
                    (B) the time frame within which actions must be 
                taken to transition from the fuel tax to alternative 
                revenue sources to support the Highway Trust Fund;
                    (C) recommendations concerning the most promising 
                revenue sources to support long-term Federal surface 
                transportation financing requirements;
                    (D) development of a broad transition strategy to 
                move from the current tax base to new funding 
                mechanisms, including the time frame for various 
                aspects of the transition strategy;
                    (E) recommendations for additional research that 
                may be needed to implement recommended alternatives; 
                and
                    (F) the extent to which revenues should reflect the 
                relative use of the highway system.
            (4) Matters to consider and evaluate.--To the maximum 
        extent feasible, the Commission, in conducting the study under 
        paragraph (1)(B), shall consider and evaluate other related 
        work that has been done by the Department of Transportation, 
        the Department of Energy, the Transportation Research Board, 
        and others. In developing recommendations under paragraph (2), 
        the Commission shall consider--
                    (A) the ability to generate sufficient revenues to 
                meet anticipated long term surface transportation 
                financing needs;
                    (B) the roles of the various levels of government 
                and the private sector in meeting future surface 
                transportation financing needs;
                    (C) administrative costs, including enforcement, to 
                implement each option;
                    (D) potential taxpayer privacy concerns;
                    (E) likely technological advances that could ease 
                implementation of each option;
                    (F) the equity and economic efficiency of each 
                option;
                    (G) the flexibility of different options to allow 
                various pricing alternatives to be implemented; and
                    (H) potential compatibility issues with States tax 
                mechanisms under each alternative.
            (5) Membership.--
                    (A) Composition.--The Commission shall be composed 
                of nine members of whom--
                            (i) three members shall be appointed by the 
                        Secretary;
                            (ii) two members shall be appointed by the 
                        Speaker of the House of Representatives;
                            (iii) one member shall be appointed by the 
                        minority leader of the House of 
                        Representatives;
                            (iv) two members shall be appointed by the 
                        majority leader of the Senate; and
                            (v) one member shall be appointed by the 
                        minority leader of the Senate.
                    (B) Qualifications.--Members appointed under 
                subparagraph (A) shall have experience in public 
                finance, surface transportation program administration, 
                managing organizations that use surface transportation 
                facilities, academic research into related issues, or 
                other activities that provide unique perspectives on 
                current and future requirements for revenue sources to 
                support the Highway Trust Fund.
                    (C) Terms.--Members shall be appointed for the life 
                of the Commission.
                    (D) Vacancies.--A vacancy on the Commission shall 
                be filled in the manner in which the original 
                appointment was made.
                    (E) Travel expenses.--Members shall serve without 
                pay but shall receive travel expenses, including per 
                diem in lieu of subsistence, in accordance with 
                sections 5702 and 5703 of title 5, United States Code.
                    (F) Chairman.--The Chairman of the Commission shall 
                be elected by the members.
            (6) Staff.--
                    (A) In general.--The Commission may engage the 
                services of an appropriate organization, agency, or 
                firm to conduct the studies under this subsection, but 
                the Commission shall provide strategic guidance for the 
                studies.
                    (B) Detail staff.--Upon request of the Commission, 
                the Secretary may detail, on a reimbursable basis, any 
                of the personnel of the Department of Transportation to 
                the Commission to assist the Commission in carrying out 
                its duties under this subsection.
                    (C) Cooperation.--The Secretary shall cooperate 
                with the Commission in conducting the studies under 
                this subsection, including providing the Commission 
                with such nonconfidential data and information as 
                necessary for conducting and completing the study.
            (7) Administrative support services.--Upon the request of 
        the Commission, the Secretary shall provide to the Commission, 
        on a reimbursable basis, the administrative support and 
        services necessary for the Commission to carry out its 
        responsibilities under this subsection.
            (8) Reports and recommendations.--
                    (A) Revenue actions.--Not later than September 30, 
                2005, the Commission shall transmit to Congress a 
                report on revenue actions that would support the 
                requirements of section 1124.
                    (B) Alternative long-term sources of revenue.--Not 
                later than September 30, 2006, the Commission shall 
                transmit to Congress a report on the results of the 
                study conducted under paragraph (1)(B), relating to 
                alternative long-term sources of revenue to support the 
                Highway Trust Fund, including recommendations to 
                address the needs identified in the study.
            (9) Termination.--The Commission shall terminate on the 
        180th day following the date of transmittal of the report under 
        paragraph (8)(B). By such 180th day, the Commission shall 
        deliver all records and papers of the Commission to the 
        Archivist of the United States for deposit in the National 
        Archives.
            (10) Authorization of appropriations.--There is authorized 
        to be appropriated from the Highway Trust Fund (other than the 
        Mass Transit Account) $1,500,000 for each of fiscal years 2005 
        and 2006 to carry out this subsection.
            (11) Applicability of title 23.--Funds made available to 
        carry out this subsection shall be available for obligation in 
        the same manner as if such funds were apportioned under chapter 
        1 of title 23, United States Code; except that the Federal 
        share of the cost of activities carried out under this 
        subsection shall be 100 percent, and such funds shall remain 
        available until expended.
    (b) Declaration of Policy Regarding Future of the Interstate 
Highway System Study.--Section 101(b) of title 23, United States Code, 
is amended by striking the last paragraph and inserting the following:
    ``It is further declared that it is in the national interest to 
preserve and enhance the Dwight D. Eisenhower National System of 
Interstate and Defense Highways to meet the Nation's needs for the 21st 
century. The current urban and long distance personal travel and 
freight movement demands have surpassed the vision of the original 
Interstate System and travel demand patterns are expected to change. 
Continued planning for and investment in the Interstate System is 
critical to assure it adequately meets the changing travel demands of 
the future. Among the foremost needs that the Interstate System must 
provide are safe, efficient, and reliable (1) national and 
interregional personal mobility, (2) flow of interstate commerce, and 
(3) travel movements essential for national security. To the maximum 
extent, actions under this title should address congestion, safety, and 
freight transportation to provide for a strong and vigorous national 
economy. The Interstate System is hereby declared to be the Nation's 
premiere highway system, essential for the Nation's economic vitality, 
national security, and general welfare. The Secretary of Transportation 
is directed to take appropriate actions to preserve and enhance the 
Interstate System to meet the needs of the 21st century in accordance 
with this title..
    (c) National Commission on Future of Interstate Highway System.--
            (1) Establishment.--There is established a National 
        Commission on the Future of the Dwight D. Eisenhower National 
        System of Interstate and Defense Highways (in this subsection 
        referred to as the `Interstate System').
            (2) Function.--The Commission shall--
                    (A) conduct a study of the current condition and 
                future of the Interstate System and develop a 
                conceptual plan with alternative approaches for the 
                future of the Interstate System to assure that the 
                Interstate System will continue to serve the needs of 
                the Nation;
                    (B) assure that State transportation agency views 
                are considered; and
                    (C) make specific recommendations regarding those 
                design standards, Federal policies, and legislative 
                changes that must be made to assure the national 
                interests are served in meeting future Interstate 
                System needs.
            (3) Specific matters to be addressed.--The Commission shall 
        assure that the study under this subsection specifically 
        addresses the following:
                    (A) Current condition.--The current condition and 
                performance of the Interstate System, including 
                physical condition of bridges and pavements and 
                operational characteristics and performance, shall be 
                examined, relying primarily on existing data sources.
                    (B) Future assessment.--The future of the 
                Interstate System, based on a range of legislative and 
                policy approaches for 15-, 30-, and 50-year horizons.
            (4) Specific issues and details to address.--The following 
        specific issues and details shall be addressed as a part of the 
        study under this subsection:
                    (A) Demographics.--Expected demographics and 
                business uses that impact transportation.
                    (B) Usage.--Expected system use and effects of 
                changing vehicle types, fleet size and weights, and 
                traffic volumes.
                    (C) Natural disaster.--Seismic and other 
                vulnerabilities and their potential impacts.
                    (D) Design standards.--Desirable design policies 
                and standards for future improvements, including safety 
                improvement and additional access points.
                    (E) System wide needs.--Identification of both 
                urban and rural needs.
                    (F) Potential system expansion, upgrades, or other 
                changes.--Deployment of advanced materials and 
                intelligent technologies; critical multi-state rural 
                corridors needing capacity, safety, and operational 
                enhancements; urban and multi-state corridor additions; 
                bypasses of major cities that ensure efficient long-
                haul travel; improvements to inter-modal linkages; 
                strategies to enhance asset preservation; and 
                implementation strategies.
                    (G) Community values.--Consideration of alternative 
                approaches to maintaining or enhancing community values 
                in those neighborhoods adjacent to the Interstate 
                System.
                    (H) Environmental issues.--Consideration of 
                alternative approaches to addressing environmental 
                concerns relative to recommended alternatives.
                    (I) System performance.--Evaluation and assessment 
                of the current and future capabilities for conducting 
                system-wide real-time performance data collection and 
                analysis, traffic monitoring, system operations and 
                management.
            (5) Alternatives.--A range of policy recommendations shall 
        be developed as a part of the plan under this subsection to 
        address identified future needs of the Interstate System. The 
        alternatives shall include funding needs and potential 
        approaches to provide those funds.
            (6) Membership.--
                    (A) Composition.--The Commission shall be composed 
                of nine members of whom--
                            (i) three members shall be appointed by the 
                        Secretary;
                            (ii) two members shall be appointed by the 
                        Speaker of the House of Representatives;
                            (iii) one member shall be appointed by the 
                        minority leader of the House of 
                        Representatives;
                            (iv) two members shall be appointed by the 
                        majority leader of the Senate; and
                            (v) one member shall be appointed by the 
                        minority leader of the Senate.
                    (B) Qualifications.--Members appointed under 
                subparagraph (A) shall be appointed from among 
                individuals that have a concern for maintaining a 
                strong role for the Interstate System in the future of 
                the Nation and may include representatives from 
                Federal, State, and local governments, other 
                transportation authorities or agencies, and 
                organizations representing surface transportation 
                owners and operators.
                    (C) Terms.--Members shall be appointed for the life 
                of the Commission.
                    (D) Vacancies.--A vacancy in the Commission shall 
                be filled in the manner in which the original 
                appointment was made.
                    (E) Travel expenses.--Member shall serve without 
                pay but shall receive travel expenses, including per 
                diem in lieu of subsistence, in accordance with 
                sections 5702 and 5703 of title 5, United States Code.
                    (F) Chairman.--The Chairman of the Commission shall 
                be elected by the members.
            (7) Staff.--
                    (A) In general.--The Commission may engage the 
                services of an appropriate organization, agency, or 
                firm to conduct the study under this subsection, but 
                the Commission shall provide strategic guidance for the 
                study.
                    (B) Detail staff.--Upon request of the Commission, 
                the Secretary may detail, on a reimbursable basis, any 
                of the personnel of the Department of Transportation to 
                the Commission to assist the Commission in carrying out 
                its duties under this subsection.
                    (C) Cooperation.--The Secretary shall cooperate 
                with the Commission in the study, including providing 
                the Commission with such nonconfidential data and 
                information as necessary for conducting and completing 
                the study.
            (8) Administrative support services.--Upon the request of 
        the Commission, the Secretary shall provide to the Commission, 
        on a reimbursable basis, the administrative support and 
        services necessary for the Commission to carry out its 
        responsibilities under this subsection.
            (9) Report and recommendations.--Not later than September 
        30, 2006, the Commission shall transmit to Congress a final 
        report on the results of the study conducted under this 
        subsection, including recommendations to address the needs 
        identified in the study.
            (10) Termination.--The Commission shall terminate on the 
        180th day following the date of transmittal of the report under 
        paragraph (9). By such 180th day, the Commission shall deliver 
        all records and papers of the Commission to the Archivist of 
        the United States for deposit in the National Archives.
            (11) Authorization of appropriations.--There is authorized 
        to be appropriated from the Highway Trust Funds (other than the 
        Mass Transit Account) to carry out this subsection $1,000,000 
        for each of fiscal years 2005 and 2006.
            (12) Applicability of title 23, united states code.--Funds 
        authorized to be appropriated by this section shall be 
        available for obligation in the same manner as if such funds 
        were apportioned under chapter 1 of title 23, United States 
        Code; except that the Federal share of the cost of activities 
        carried out under this subsection shall be 100 percent and such 
        funds shall remain available until expended.

SEC. 1122. ADJUSTMENTS FOR THE SURFACE TRANSPORTATION EXTENSION ACT OF 
              2004, PART V.

    [Reserved]

SEC. 1123. ROADWAY SAFETY.

    (a) Road Safety.--
            (1) In general.--The Secretary shall enter into an 
        agreement to assist in the activities of a national nonprofit 
        organization that is dedicated solely to improving public road 
        safety--
                    (A) by improving the quality of data pertaining to 
                public road hazards and design features that affect or 
                increase the severity of motor vehicle crashes;
                    (B) by developing and carrying out a public 
                awareness campaign to educate State and local 
                transportation officials, public safety officials, and 
                motorists regarding the extent to which public road 
                hazards and design features are a factor in motor 
                vehicle crashes; and
                    (C) by promoting public road safety research and 
                technology transfer activities.
            (2) Funding.--There is authorized to be appropriated from 
        the Highway Trust Fund (other than the Mass Transit Account) 
        $500,000 for each of fiscal years 2005 through 2009 to carry 
        out this subsection.
            (3) Applicability of title 23.--Funds made available by 
        this subsection shall be available for obligation in the same 
        manner as if such funds were apportioned under chapter 1 of 
        title 23, United States Code, except that the funds shall 
        remain available until expended.
    (b) Bicycle and Pedestrian Safety Grants.--
            (1) In general.--The Secretary shall make grants to a 
        national, not-for-profit organization engaged in promoting 
        bicycle and pedestrian safety--
                    (A) to operate a national bicycle and pedestrian 
                clearinghouse;
                    (B) to develop information and educational 
                programs; and
                    (C) to disseminate techniques and strategies for 
                improving bicycle and pedestrian safety.
            (2) Funding.--There is authorized to be appropriated from 
        the Highway Trust Fund (other than the Mass Transit Account) 
        $500,000 for each of fiscal years 2004 through 2009 to carry 
        out this subsection.
            (3) Applicability of title 23.--Funds made available by 
        this subsection shall be available for obligation in the same 
        manner as if such funds were apportioned under chapter 1 of 
        title 23, United States Code, except that the funds shall 
        remain available until expended.

SEC. 1124. EQUITY REQUIREMENT.

    (a) General Provisions.--The Secretary may not apportion before 
August 1, 2006, any funds for any of the programs referred to in 
subsection (b) for fiscal year 2006 unless, after the date of enactment 
of this Act, a law has been enacted that--
            (1) increases the guaranteed rate of return pursuant to 
        section 105 of title 23, United States Code, to 92 percent in 
        fiscal year 2006, 93 percent in fiscal year 2007, 94 percent in 
        fiscal year 2008, and 95 percent in fiscal year 2009; and
            (2) requires that each State receive apportionments for 
        such programs for each of such fiscal years that in the 
        aggregate are at least equal to the greater of--
                    (A) the State's minimum guaranteed rate of return 
                required under paragraph (1); and
                    (B) the State's prior fiscal year's apportioned 
                highway funds for programs referred in subsection (b) 
                plus an amount equal to the State's prior year 
                apportioned funds for such programs multiplied by the 
                percentage increase in the consumer price index during 
                the 12-month period ending June 30 of the calendar year 
                in which the fiscal year begins.
    (b) Applicability.--The withholding of apportioned funds under 
subsection (a) shall apply to the following programs:
            (1) The National Highway System program under section 
        103(b) of title 23, United States Code.
            (2) The high priority projects program under section 117 of 
        such title.
            (3) The Interstate maintenance program under section 119 of 
        such title.
            (4) The surface transportation program under section 133 of 
        such title.
            (5) Metropolitan planning under chapter 52 of title 49, 
        United States Code.
            (6) The highway bridge replacement and rehabilitation 
        program under section 144 of title 23, United States Code.
            (7) The congestion mitigation and air quality improvement 
        program under section 149 of such title.
            (8) The recreational trails program under section 206 of 
        such title.
            (9) The Appalachian development highway system under 
        subtitle IV of title 40, United States Code.
            (10) The freight intermodal connectors program under 
        section 1303 of this Act.
            (11) The coordinated border infrastructure program under 
        section 1302 of this Act.
            (12) The high risk rural road safety improvement program 
        under section 1403 of this Act.
            (13) The safe routes to schools program under section 1120 
        of this Act.
            (14) The minimum guarantee program under section 105 of 
        title 23, United States Code.
    (c) Consideration of Commission Findings.--In considering a law 
that increases the guaranteed rate of return referred to in subsection 
(a), Congress should consider the findings of the report on alternative 
short-term sources of Highway Trust Fund revenue to be published by the 
National Commission on Future Revenue Sources to Support the Highway 
Trust Fund pursuant to section 1121 of this Act.

                     Subtitle B--Congestion Relief

SEC. 1201. MOTOR VEHICLE CONGESTION RELIEF.

    (a) In General.--Title 23, United States Code, is amended by 
inserting after section 138 the following:
`Sec. 139. Motor vehicle congestion relief
    `(a) In General.--Each State that has an urbanized area with an 
urbanized area population of over 200,000 individuals shall obligate in 
each of fiscal years 2005 through 2009 a portion of the State's 
apportionments under section 104(b) in such fiscal year, as calculated 
under subsection (b), for congestion relief activities in such 
urbanized areas in accordance with this section.
    `(b) Calculation of Amount.--The portion of a State's 
apportionments for a fiscal year to be obligated for congestion relief 
activities under subsection (a) shall be determined by multiplying--
            `(1) the total of amounts apportioned to the State under 
        each of paragraphs (1), (2), (3), and (4) of section 104(b) in 
        such fiscal year; by
            `(2) 10 percent; by
            `(3) the percentage of the State's population residing in 
        urbanized areas of the State with an urbanized area population 
        of over 200,000 individuals.
    `(c) Allocation Between Under One and Under Three Congestion Relief 
Activities.--Of the total amount of a State's apportionments to be 
obligated for congestion relief activities for a fiscal year as 
calculated under subsection (b)--
            `(1) 40 percent shall be obligated for under one congestion 
        relief activities;
            `(2) 35 percent shall be obligated for under three 
        congestion relief activities; and
            `(3) 25 percent shall be obligated at the discretion of the 
        State department of transportation for 1 or more of the 
        following:
                    `(A) Under one congestion relief activities.
                    `(B) Under three congestion relief activities.
                    `(C) Capital costs for transit projects that are 
                eligible for assistance under chapter 53 of title 49.
                    `(D) Demand relief projects and activities that 
                shift demand to non-peak hours or to other modes of 
                transportation or that reduce the overall level of 
                demand for roads through such means as telecommuting, 
                ridesharing, alternative work hour programs, and value 
                pricing.
    `(d) Obligation of Amounts.--
            `(1) In general.--In complying with the requirements of 
        this section, the amounts obligated by a State for congestion 
        relief activities under subsection (a) shall be allocated among 
        the individual programs for which funds are apportioned under 
        sections 104(b)(1), 104(b)(2), 104(b)(3), and 104(b)(4).
            `(2) Limitation on statutory construction.--Nothing in this 
        subsection shall be construed as requiring a State to obligate 
        proportional or equal amounts under sections 104(b)(1), 
        104(b)(2), 104(b)(3), and 104(b)(4) for any congestion relief 
        activity under this section.
    `(e) Limitation on Statutory Construction.--Nothing in this section 
shall be construed as altering or otherwise affecting the applicability 
of the requirements of this chapter (including requirements relating to 
the eligibility of a project for assistance under the program, the 
location of the project, and the Federal-share payable on account of 
the project) to amounts apportioned to a State for a program under 
section 104(b) that are obligated by the State for congestion relief 
activities under subsection (a).
    `(f) Joint Responsibility.--Each State, each affected metropolitan 
planning organization, and the Secretary shall jointly ensure 
compliance with this section.
    `(g) Transfers.--
            `(1) In general.--A State may transfer a portion of the 
        amount that the State must obligate for under one congestion 
        relief activities in a fiscal year under this section to the 
        amount the State must obligate for under three congestion 
        relief activities under this section if the State certifies to 
        the Secretary that there are no under one congestion relief 
        activities for which such portion can be obligated in such 
        fiscal year and the Secretary does not disapprove such transfer 
        within 30 days after the date of such certification.
            `(2) Limitation.--The amount that a State may transfer in a 
        fiscal year under this subsection may not reduce the amount the 
        State must obligate for under one congestion relief activities 
        to less than 10 percent of the total amount of the State's 
        apportionments to be obligated for congestion relief activities 
        for such fiscal year as calculated under subsection (b).
            `(3) Treatment.--Amounts transferred by a State under this 
        subsection for a fiscal year shall be included in the amount of 
        the State's apportionments allocated for under three congestion 
        relief activities for such fiscal year under subsection (c)(2).
    `(h) Definitions.--In this section, the following definitions 
apply:
            `(1) Congestion relief activities.--
                    `(A) In general.--The term ``congestion relief 
                activity'' means any activity, project, or program that 
                has as its primary purpose, as determined by the State 
                transportation department, the relief of motor vehicle 
                congestion.
                    `(B) Inclusions.--Such term includes the following:
                            `(i) Relief of motor vehicle congestion 
                        through additional capacity, construction of 
                        additional lanes, improvements to interchanges, 
                        improved access to major terminals, 
                        construction of parallel roads, construction of 
                        truck only lanes, and major arterial 
                        improvements.
                            `(ii) Transportation systemwide operational 
                        improvements targeted at increasing motor 
                        vehicle travel reliability through such means 
                        as incident management programs, traffic 
                        monitoring and surveillance, and traveler 
                        information initiatives.
                            `(iii) Maximizing efficient use of existing 
                        motor vehicle travel capacity through such 
                        means as reversible lanes, coordinated traffic 
                        signalization, and managed lanes or other lane 
                        management strategies.
                    `(C) Exclusions.--Such term does not include demand 
                relief projects and activities that shift demand to 
                non-peak hours or to other modes of transportation or 
                that reduce the overall level of demand for roads 
                through such means as telecommuting, ridesharing, 
                alternative work hour programs, and value pricing.
            `(2) Under one congestion relief activities.--The term 
        ``under one congestion relief activity'' means a congestion 
        relief activity that--
                    `(A) will be completed within one year after the 
                date of commencement of onsite improvements;
                    `(B) has a total projected cost of less than 
                $1,000,000; and
                    `(C) will improve conditions in the applicable 
                urbanized area or is an element of the congestion 
                management system of the applicable metropolitan 
                planning organization.
            `(3) Under three congestion relief activities.--The term 
        ``under three congestion relief activities'' means congestion 
        relief activities that--
                    `(A) will be completed within 3 years after the 
                date of commencement of onsite improvements; and
                    `(B) will improve conditions in the applicable 
                urbanized area or is an element of the congestion 
                management system of the applicable metropolitan 
                planning organization.'.
    (b) Conforming Amendment.--The analysis for chapter I of such title 
is amended by inserting after the item relating to section 138 the 
following:

`139. Motor vehicle congestion relief.'.
    (c) Motor Vehicle Defined.--Title 23, United States Code, is 
amended--
            (1) in section 154(a)(2), relating to the definition of 
        motor vehicle, by inserting `streets, roads, and' before 
        `highways';
            (2) by redesignating paragraph (2) of section 154(a) as 
        paragraph (38);
            (3) by moving such redesignated paragraph from section 
        154(a) to the end of section 101(a);
            (4) by redesignating paragraphs (3) and (4) of section 
        154(a) as paragraphs (2) and (3), respectively;
            (5) in section 153(i)--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively;
            (6) in section 164(a)(4) by striking `means' and all that 
        follows through `rail line or' and inserting `does not 
        include'; and
            (7) in section 405(f)--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3), (4), (5), and 
                (6) as paragraphs (2), (3), (4), and (5).

SEC. 1202. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

    (a) Definitions.--
            (1) Operating costs for traffic monitoring, management, and 
        control.--Section 101(a)(17) of title 23, United States Code, 
        is amended by inserting `transportation systems management and 
        operations and' after `associated with'.
            (2) Operational improvement.--Section 101(a)(18)(A)(i) of 
        such title is amended--
                    (A) by inserting `transportation systems management 
                and operations, including' after `for'; and
                    (B) by inserting `equipment and programs for 
                transportation response to natural disasters,' after 
                `incident management programs,'.
            (3) Transportation systems management and operations.--
        Section 101(a) of such title is further amended by adding at 
        the end the following:
            `(39) Transportation systems management and operations.--
                    `(A) In general.--The term ``transportation systems 
                management and operations'' means an integrated program 
                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 the 
                security, safety, and reliability of Federal-aid 
                highways.
                    `(B) Included activities and improvements.--The 
                term includes regional operations collaboration and 
                coordination activities between transportation and 
                public safety agencies and improvements such as traffic 
                detection and surveillance, arterial management, 
                freeway management, demand management, work zone 
                management, emergency management, electronic toll 
                collection, automated enforcement, traffic operations 
                measures to improve capacity, traffic signal 
                coordination, optimization of traffic signal timing, 
                traffic incident management, roadway weather 
                management, traveler information services, commercial 
                vehicle operations, traffic control, freight 
                management, and coordination of highway, rail, transit, 
                bicycle, and pedestrian operations.'.
    (b) Surface Transportation Program Eligibility.--Section 133(b) of 
such title is amended--
            (1) by redesignating paragraphs (13) and (14) as paragraphs 
        (12) and (13), respectively; and
            (2) by adding at the end the following:
            `(14) Regional transportation operations collaboration and 
        coordination activities that are associated with regional 
        improvements, including activities for traffic incident 
        management, technology deployment, emergency management and 
        response, traveler information, and regional congestion 
        relief.'.
    (c) National Highway System Eligibility.--Section 103(b)(6) of such 
title is amended by adding at the end the following:
                    `(Q) Capital, operating, and systems maintenance 
                costs for transportation systems management and 
                operations.'.
    (d) Transportation Systems Management and Operations.--Subchapter I 
of chapter 1 of such title is further amended by adding at the end the 
following:
`Sec. 166. Transportation systems management and operations
    `(a) Authority.--The Secretary may--
            `(1) encourage transportation system managers, operators, 
        public safety officials, and transportation planners within an 
        urbanized area, who are actively engaged in and responsible for 
        conducting activities relating to day-to-day management, 
        operations, public safety, and planning of transportation 
        facilities and services, to collaborate and coordinate on a 
        regional level in a continuous and sustained manner for 
        improved transportation systems management and operations, 
        including, at a minimum--
                    `(A) developing a regional concept of operations 
                that defines a regional strategy shared by all 
                transportation and public safety participants for how 
                the region's systems should be managed, operated, and 
                measured;
                    `(B) sharing of information among operators, 
                service providers, public safety officials, and the 
                general public; and
                    `(C) guiding, in a regionally-coordinated manner, 
                the implementation of regional transportation system 
                management and operations initiatives, including 
                emergency evacuation and response, traffic incident 
                management, technology deployment, and traveler 
                information systems delivery, in a manner consistent 
                with and integrated into the ongoing metropolitan and 
                statewide transportation planning processes and 
                regional intelligent transportation system 
                architecture, if required; and
            `(2) encourage States to establish a system of basic real-
        time monitoring capability for the surface transportation 
        system and provide the capability and means to share that data 
        among agencies (including highway, transit, and public safety 
        agencies), jurisdictions (including States, cities, counties, 
        and areas represented by metropolitan planning organizations), 
        private-sector entities, and the traveling public.
    `(b) Execution.--To support the successful execution of 
transportation systems management and operations activities, the 
Secretary may undertake the following activities:
            `(1) Assist and cooperate with other Federal departments 
        and agencies, State and local governments, metropolitan 
        planning organizations, private industry representatives, and 
        other interested parties to improve regional collaboration and 
        real-time information sharing between transportation system 
        managers and operators, public safety officials, emergency 
        managers, and the general public to increase the security, 
        safety, and reliability of Federal-aid highways.
            `(2) Issue, if necessary, new guidance or regulations for 
        the procurement of transportation system management and 
        operations facilities, equipment, and services, including 
        equipment procured in preparation for natural disasters and 
        emergencies, system hardware, software, and software 
        integration services.'.
    (e) Conforming Amendment.--The analysis for such chapter is further 
amended by adding at the end the following:

`166. Transportation systems management and operations.'.
    (f) Intelligent Transportation System Procurement Policy.--
            (1) Study.--The Secretary shall--
                    (A) conduct a study of the current policies and 
                practices for the procurement of intelligent 
                transportation system facilities, equipment, and 
                services; and
                    (B) develop a conceptual plan with alternative 
                approaches for expediting and streamlining such 
                procurements at the State level.
            (2) Recommendations.--Based on the results of the study, 
        the Secretary shall make recommendations in the report under 
        paragraph (4) regarding procurement standards, including 
        recommendations regarding any changes in Federal and State 
        statutes, regulations, and policies necessary to ensure that 
        national interests are served in meeting future intelligent 
        transportation system needs.
            (3) Specific matters to be addressed.--The study under this 
        subsection shall specifically address the following:
                    (A) Current condition.--The current practices and 
                policies relating to procurement of intelligent 
                transportation system facilities, equipment, and 
                services, including equipment procured in preparation 
                for natural disasters and emergencies, system hardware, 
                software, and software integration services.
                    (B) Assessment of need for policy reform.--The 
                ability of current practices and policies to achieve 
                the successful implementation of intelligent 
                transportation system goals and the need for national 
                policy reform to expedite and streamline procurements 
                necessary to meet such goals.
                    (C) Alternatives.--The range of legislative, 
                regulatory, and policy alternatives to address 
                identified needs and goals, including funding needs.
                    (D) Recommendations.--Recommendations regarding 
                procurement standards, including recommendations 
                regarding any changes in Federal and State statutes, 
                regulations, and policies necessary for expedited and 
                streamlined procurements.
            (4) Report and recommendations.--Not later than March 31, 
        2006, the Secretary shall transmit to the appropriate 
        committees of Congress a final report regarding the results of 
        the study conducted under this subsection and recommendations 
        to address the needs identified in such study.
            (5) Initiation of rulemaking proceeding.--To the extent any 
        recommendation made by the Secretary under this subsection may 
        be implemented by regulation, the Secretary shall initiate a 
        rulemaking proceeding to address such recommendation not later 
        than the 90th day following the date of submission of the 
        report under paragraph (4).
            (6) Authorization of appropriations.--There is authorized 
        to be appropriated from the Highway Trust Fund (other than the 
        Mass Transit Account) $1,000,000 in fiscal year 2005 to carry 
        out this subsection.
            (7) Applicability of title 23.--Funds made available to 
        carry out this subsection shall be available for obligation in 
        the same manner as if such funds were apportioned under chapter 
        1 of title 23, United States Code; except that the Federal 
        share of the cost of the study under this subsection shall be 
        100 percent and such funds shall remain available until 
        expended.

SEC. 1203. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

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

SEC. 1204. EXPEDITED NATIONAL INTELLIGENT TRANSPORTATION SYSTEMS 
              DEPLOYMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish a comprehensive 
program to accelerate the integration, interoperability, and deployment 
of intelligent transportation systems in order to improve the 
performance of the surface transportation system in metropolitan and 
rural areas.
    (b) Selection of Model Projects.--Under the program, the Secretary 
may make grants, through competitive solicitation, for projects that 
will serve as models to improve transportation efficiency, promote 
surface transportation safety (including safe freight movement), 
increase traffic flow (including the flow of intermodal travel at ports 
of entry), reduce emissions of air pollutants, improve traveler 
information, enhance alternative transportation modes, build on 
existing intelligent transportation system projects, and promote 
tourism.
    (c) Other Projects, Programs, and Activities.--Under the program, 
the Secretary may make grants for projects, programs, and activities in 
metropolitan and rural areas that--
            (1) contribute to national deployment goals and objectives 
        outlined in the national intelligent transportation system 
        program plan;
            (2) promote cooperation among agencies, jurisdictions, and 
        the private sector, as evidenced by signed memoranda of 
        understanding that clearly define the responsibilities and 
        relations of all parties to a partnership arrangement, 
        including institutional relationships and financial agreements 
        needed to support deployment of intelligent transportation 
        systems;
            (3) encourage private sector involvement and financial 
        commitment to such deployment to the maximum extent practicable 
        through innovative financial arrangements, especially public-
        private partnerships, including arrangements that generate 
        revenue to offset public investment costs;
            (4) enhance fully integrated intelligent transportation 
        system deployment;
            (5) create technical capacity for effective operations and 
        maintenance of such systems;
            (6) improve safety, mobility, geographic and regional 
        diversity, and economic development in deployment of such 
        systems;
            (7) advance deployment of the 511 traveler information 
        program; and
            (8) advance deployment of other national systems, including 
        a statewide incident reporting system, wireless e-911 system, 
        and road weather information system.
    (d) Applicability of Title 23, United States Code.--Funds 
authorized to be appropriated under section 1101(a)(16) of this Act 
shall be available for obligation to carry out subsection (c)(7) in the 
same manner and to the same extent as if such funds were apportioned 
under chapter 1 of title 23, United States Code; except that the 
Federal share of the cost of projects carried out under subsection 
(c)(7) shall be 80 percent and such funds shall remain available until 
expended.

SEC. 1205. INTELLIGENT TRANSPORTATION SYSTEMS DEPLOYMENT.

    (a) Purpose.--The purpose of this section is to ensure that a 
minimum of $2,500,000,000 of the amounts authorized to be appropriated 
for the National Highway System, Interstate maintenance, surface 
transportation, and congestion mitigation and air quality improvement 
programs for fiscal years 2005 through 2009 is utilized to expand 
deployment of intelligent transportation systems.
    (b) In General.--Chapter 1 of title 23, United States Code, is 
amended by inserting after section 149 the following:
`Sec. 150. Deployment of intelligent transportation systems
    `(a) In General.--In each of fiscal years 2005 through 2009, each 
State shall obligate a portion of the funds apportioned to the State 
under sections 104(b)(1), 104(b)(2), 104(b)(3), and 104(b)(4) for such 
fiscal year, calculated under subsection (b), for projects described in 
subsection (c) that support deployment of intelligent transportation 
systems in the State.
    `(b) Calculation of Amount.--The portion of a State's 
apportionments to be obligated under subsection (a) for projects 
described in subsection (c) in a fiscal year shall be determined by 
multiplying $500,000,000 by the ratio that--
            `(1) the aggregate of amounts apportioned to the State for 
        such fiscal year under sections 104(b)(1), 104(b)(2), 
        104(b)(3), and 104(b)(4); bears to
            `(2) the aggregate of amounts apportioned to all States for 
        such fiscal year under such sections.
    `(c) Intelligent Transportation Systems Deployment Projects.--
Projects for which funds must be obligated under this section include 
the following:
            `(1) Performance.--Establishment and implementation of 
        operations systems and services that improve performance in the 
        areas of traffic operations, emergency response to surface 
        transportation incidents, surface transportation incident 
        management, weather event response management by State and 
        local authorities, surface transportation network and facility 
        management, construction and work zone management, and traffic 
        flow information.
            `(2) Networks.--Conducting activities that support the 
        creation of networks that link metropolitan and rural surface 
        transportation systems into an integrated data network, capable 
        of collecting, sharing, and archiving transportation system 
        traffic condition and performance information.
            `(3) Safety.--Implementation of intelligent transportation 
        system technologies that improve highway safety through 
        linkages connecting the vehicle, the infrastructure, and 
        information to the driver.
            `(4) Operation and management.--Provision of services 
        necessary to ensure the efficient operation and management of 
        intelligent transportation systems infrastructure, including 
        costs associated with communications, utilities, rent, 
        hardware, software, labor, administrative costs, training, and 
        technical services.
            `(5) Interagency support.--Provision of support for 
        institutional relationships between transportation agencies, 
        police, emergency medical services, private emergency 
        operators, freight operators, and shippers.
            `(6) Planning.--Conducting cross-jurisdictional planning 
        and deployment of regional transportation systems operations 
        and management approaches.
    `(d) Obligation of Amounts.--
            `(1) In general.--In complying with the requirements of 
        this section, the amounts obligated by a State for projects 
        under subsection (c) that support deployment of intelligent 
        transportation systems in such State under subsection (a) shall 
        be allocated among the individual programs for which funds are 
        apportioned under sections 104(b)(1), 104(b)(2), 104(b)(3), and 
        104(b)(4).
            `(2) Limitation on statutory construction.--Nothing in this 
        subsection shall be construed as requiring a State to obligate 
        proportional or equal amounts under sections 104(b)(1), 
        104(b)(2), 104(b)(3), and 104(b)(4) for any congestion relief 
        activity under this section.
    `(e) Limitation on Statutory Construction.--Nothing in this section 
shall be construed as altering or otherwise affecting the applicability 
of the requirements of this chapter (including requirements relating to 
the eligibility of a project for assistance under the program, the 
location of the project, and the Federal-share payable on account of 
the project) to amounts apportioned to a State for a program under 
section 104(b) that are obligated by the State for projects under this 
section.
    `(f) Joint Responsibility.--Each State, each affected metropolitan 
planning organization, and the Secretary shall jointly ensure 
compliance with this section.'.
    (c) Conforming Amendment.--The analysis for such chapter is amended 
by inserting after the item relating to section 149 the following:

`150. Deployment of intelligent transportation systems.'.

SEC. 1206. ENVIRONMENTAL REVIEW OF ACTIVITIES THAT SUPPORT DEPLOYMENT 
              OF INTELLIGENT TRANSPORTATION SYSTEMS.

    (a) Categorical Exclusions.--Not later than one year after the date 
of enactment of this Act, the Secretary shall initiate a rulemaking 
process to establish, to the extent appropriate, categorical exclusions 
for activities that support the deployment of intelligent 
transportation infrastructure and systems from the requirement that an 
environmental assessment or an environmental impact statement be 
prepared under section 102 of the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) (42 U.S.C. 4332) in compliance with the 
standards for categorical exclusions established by that Act.
    (b) Nationwide Programmatic Agreement.--
            (1) Development.--The Secretary shall develop a nationwide 
        programmatic agreement governing the review of activities that 
        support the deployment of intelligent transportation 
        infrastructure and systems in accordance with section 106 of 
        the National Historic Preservation Act (16 U.S.C. 470f) and the 
        regulations of the Advisory Council on Historic Preservation.
            (2) Consultation.--The Secretary shall develop the 
        agreement under paragraph (1) in consultation with the National 
        Conference of State Historic Preservation Officers and the 
        Advisory Council on Historic Preservation established under 
        title II of the National Historic Preservation Act (26 U.S.C. 
        470i et seq.) and after soliciting the views of other 
        interested parties.
    (c) Intelligent Transportation Infrastructure and Systems 
Defined.--In this section, the term `intelligent transportation 
infrastructure and systems' means intelligent transportation 
infrastructure and intelligent transportation systems, as such terms 
are defined in section 5607.

SEC. 1207. STATE ASSUMPTION OF RESPONSIBILITIES FOR CERTAIN PROGRAMS 
              AND PROJECTS.

    (a) In General.--Subchapter I of chapter 1 of title 23, United 
States Code, is amended by adding at the end the following:
`Sec. 167. State assumption of responsibilities for certain programs 
              and projects
    `(a) Assumption of Secretary's Responsibilities Under Applicable 
Federal Laws.--
            `(1) Pilot program.--
                    `(A) Establishment.--The Secretary may establish a 
                pilot program under which States may assume the 
                responsibilities of the Secretary under any Federal 
                laws subject to the requirements of this section.
                    `(B) First 3 fiscal years.--In the first 3 fiscal 
                years following the date of enactment of this section, 
                the Secretary may allow up to 5 States to participate 
                in the pilot program.
            `(2) Scope of program.--Under the pilot program, the 
        Secretary may assign, and a State may assume, any of the 
        Secretary's responsibilities (other than responsibilities 
        relating to federally recognized Indian tribes) for 
        environmental reviews, consultation, or decisionmaking or other 
        actions required under any Federal law as such requirements 
        apply to the following projects:
                    `(A) Projects funded under section 104(h).
                    `(B) Transportation enhancement activities under 
                section 133, as such term is defined in section 
                101(a)(35).
                    `(C) Projects as defined in section 101(a)(39) and 
                section 5607 of the Transportation Equity Act: A Legacy 
                for Users.
    `(b) Agreements.--
            `(1) In general.--The Secretary shall enter into a 
        memorandum of understanding with a State participating in the 
        pilot program setting forth the responsibilities to be assigned 
        under subsection (a)(2) and the terms and conditions under 
        which the assignment is being made.
            `(2) Certification.--Before the Secretary enters into a 
        memorandum of understanding with a State under paragraph (1), 
        the State shall certify that the State has in effect laws 
        (including regulations) applicable to projects carried out and 
        funded under this title and chapter 53 of title 49 that 
        authorize the State to carry out the responsibilities being 
        assumed.
            `(3) Maximum duration.--A memorandum of understanding with 
        a State under this section shall be established for an initial 
        period of no more than 3 years and may be renewed by mutual 
        agreement on a periodic basis for periods of not more than 3 
        years.
            `(4) Compliance.--
                    `(A) In general.--After entering into a memorandum 
                of understanding under paragraph (1), the Secretary 
                shall review and determine compliance by the State with 
                the memorandum of understanding.
                    `(B) Renewals.--The Secretary shall take into 
                account the performance of a State under the pilot 
                program when considering renewal of a memorandum of 
                understanding with the State under the program.
    `(c) Selection of States for Pilot Program.--
            `(1) Application.--To be eligible to participate in the 
        pilot program, a State shall submit to the Secretary an 
        application that contains such information as the Secretary may 
        require. At a minimum, an application shall include--
                    `(A) a description of the projects or classes of 
                projects for which the State seeks to assume 
                responsibilities under subsection (a)(2); and
                    `(B) a certification that the State has the 
                capability to assume such responsibilities.
            `(2) Public notice.--Before entering into a memorandum of 
        understanding allowing a State to participate in the pilot 
        program, the Secretary shall--
                    `(A) publish notice in the Federal Register of the 
                Secretary's intent to allow the State to participate in 
                the program, including a copy of the State's 
                application to the Secretary and the terms of the 
                proposed agreement with the State; and
                    `(B) provide an opportunity for public comment.
            `(3) Selection criteria.--The Secretary may approve the 
        application of a State to assume responsibilities under the 
        program only if--
                    `(A) the requirements under paragraph (2) have been 
                met; and
                    `(B) the Secretary determines that the State has 
                the capability to assume the responsibilities.
            `(4) Other federal agency views.--Before assigning to a 
        State a responsibility of the Secretary that requires the 
        Secretary to consult with another Federal agency, the Secretary 
        shall solicit the views of the Federal agency.
    `(d) State Defined.--With respect to the recreational trails 
program, the term ``State'' means the State agency designated by the 
Governor of the State in accordance with section 206(c)(1).
    `(e) Preservation of Public Interest Consideration.--Nothing in 
this section shall be construed to limit the requirements under any 
applicable law providing for the consideration and preservation of the 
public interest, including public participation and community values in 
transportation decisionmaking.'.
    (b) Conforming Amendment.--The analysis for subchapter I of chapter 
1 of such title is amended by adding at the end the following:

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

SEC. 1208. HOV FACILITIES.

    (a) In General.--Subchapter I of chapter 1 of title 23, United 
States Code, is amended by adding at the end the following:
`Sec. 168. HOV facilities
    `(a) In General.--
            `(1) Authority of state agencies.--A State agency that has 
        jurisdiction over the operation of a HOV facility shall 
        establish the occupancy requirements of vehicles operating on 
        the facility.
            `(2) Occupancy requirement.--Except as otherwise provided 
        by this section, no fewer than 2 occupants per vehicle may be 
        required for use of a HOV facility.
    `(b) Exceptions.--Notwithstanding the occupancy requirements of 
subsection (a)(2), the following exceptions shall apply with respect to 
a State agency operating a HOV facility:
            `(1) Motorcycles and bicycles.--
                    `(A) In general.--Subject to subparagraph (B), the 
                State agency shall allow motorcycles and bicycles to 
                use the HOV facility.
                    `(B) Safety exception.--A State agency may restrict 
                use of the HOV facility by motorcycles or bicycles (or 
                both) if the agency certifies to the Secretary that 
                such use would create a safety hazard and the Secretary 
                accepts the certification. The Secretary may accept a 
                certification under this subparagraph only after the 
                Secretary publishes notice of the certification in the 
                Federal Register and provides an opportunity for public 
                comment.
            `(2) Public transportation vehicles.--The State agency may 
        allow public transportation vehicles to use the HOV facility if 
        the agency--
                    `(A) establishes requirements for clearly 
                identifying the vehicles; and
                    `(B) establishes procedures for enforcing the 
                restrictions on the use of the facility by such 
                vehicles.
            `(3) High occupancy toll vehicles.--The State agency may 
        allow vehicles not otherwise exempt pursuant to this subsection 
        to use the HOV facility if the operators of such vehicles pay a 
        toll charged by the agency for use of the facility and the 
        agency--
                    `(A) establishes a program that addresses how 
                motorists can enroll and participate in the toll 
                program;
                    `(B) develops, manages, and maintains a system that 
                will automatically collect the toll; and
                    `(C) establishes policies and procedures to--
                            `(i) manage the demand to use the facility 
                        by varying the toll amount that is charged;
                            `(ii) enforce violations of use of the 
                        facility; and
                            `(iii) permit low-income individuals to pay 
                        reduced tolls.
            `(4) Low emission and energy-efficient vehicles.--
                    `(A) Inherently low-emission vehicle.--Before 
                September 30, 2009, the State agency may allow vehicles 
                that are certified as inherently low-emission vehicles 
                pursuant to section 88.311-93 of title 40, Code of 
                Federal Regulations, and are labeled in accordance with 
                section 88.312-93 of such title, to use the HOV 
                facility if the agency establishes procedures for 
                enforcing the restrictions on the use of the facility 
                by such vehicles.
                    `(B) Other low emission and energy-efficient 
                vehicles.--Before September 30, 2009, the State agency 
                may allow vehicles certified as low emission and 
                energy-efficient vehicles under subsection (e), and 
                labeled in accordance with subsection (e), to use the 
                HOV facility if the operators of such vehicles pay a 
                toll charged by the agency for use of the facility and 
                the agency--
                            `(i) establishes a program that addresses 
                        the selection of vehicles under this paragraph; 
                        and
                            `(ii) establishes procedures for enforcing 
                        the restrictions on the use of the facility by 
                        such vehicles.
                    `(C) Amount of tolls.-- Tolls charged under 
                subparagraph (B) may be less than tolls charged under 
                paragraph (3).
    `(c) Requirements Applicable to Tolls.--
            `(1) In general.--Tolls may be charged under subsections 
        (b)(3) and (b)(4) notwithstanding section 301 and, except as 
        provided in paragraphs (2) and (3), subject to the requirements 
        of section 129.
            `(2) HOV facilities on the interstate system.--
        Notwithstanding section 129, tolls may be charged under 
        subsections (b)(3) and (b)(4) on a HOV facility on the 
        Interstate System.
            `(3) Excess toll revenues.--If a State agency makes a 
        certification under the last sentence of section 129(a)(3) with 
        respect to toll revenues collected under subsections (b)(3) and 
        (b)(4), the State, in the use of tolls revenues under that 
        sentence, shall give priority consideration to projects for 
        developing alternatives to single occupancy vehicle travel and 
        projects for improving highway safety.
    `(d) HOV Facility Management, Operation, Monitoring, and 
Enforcement.--
            `(1) In general.--A State agency that allows vehicles to 
        use a HOV facility under subsection (b)(3) or (b)(4) in a 
        fiscal year shall certify to the Secretary that the agency will 
        carry out the following responsibilities with respect to the 
        facility in the fiscal year:
                    `(A) Establishing, managing, and supporting a 
                performance monitoring, evaluation, and reporting 
                program for the facility that provides for continuous 
                monitoring, assessment, and reporting on the impacts 
                that such vehicles may have on the operation of the 
                facility and adjacent highways.
                    `(B) Establishing, managing, and supporting an 
                enforcement program that ensures that the facility is 
                being operated in accordance with the requirements of 
                this section.
                    `(C) Limiting or discontinuing the use of the 
                facility by such vehicles if the presence of such 
                vehicles has degraded the operation of the facility.
            `(2) Degraded facility.--
                    `(A) In general.--For purposes of paragraph (1), 
                the operation of a HOV facility shall be considered to 
                be degraded if vehicles operating on the facility are 
                failing to maintain a minimum average operating speed 
                90 percent of the time over a consecutive 6-month 
                period during morning or evening weekday peak hour 
                periods (or both).
                    `(B) Minimum average operating speed defined.--In 
                subparagraph (A), the term ``minimum average operating 
                speed'' means--
                            `(i) 45 miles per hour, in the case of a 
                        HOV facility with a speed limit of 50 miles per 
                        hour or greater; and
                            `(ii) not more than 10 miles per hour below 
                        the speed limit, in the case of a HOV facility 
                        with a speed limit of less than 50 miles per 
                        hour.
    `(e) Certification of Low Emission and Energy-Efficient Vehicles.--
Not later than 6 months after the date of enactment of this section, 
the Administrator of the Environmental Protection Agency shall issue a 
final rule establishing requirements for certification of vehicles as 
low emission and energy-efficient vehicles for purposes of this section 
and requirements for the labeling of such vehicles.
    `(f) Definitions.--In this section, the following definitions 
apply:
            `(1) Alternative fuel vehicle.--The term ``alternative fuel 
        vehicle'' means a vehicle that operates on--
                    `(A) methanol, denatured ethanol, or other 
                alcohols;
                    `(B) a mixture containing at least 85 percent of 
                methanol, denatured ethanol, and other alcohols by 
                volume with gasoline or other fuels;
                    `(C) natural gas;
                    `(D) liquefied petroleum gas;
                    `(E) hydrogen;
                    `(F) coal derived liquid fuels;
                    `(G) fuels (except alcohol) derived from biological 
                materials;
                    `(H) electricity (including electricity from solar 
                energy); or
                    `(I) any other fuel that the Secretary prescribes 
                by regulation that is not substantially petroleum and 
                that would yield substantial energy security and 
                environmental benefits.
            `(2) HOV facility.--The term ``HOV facility'' means a high 
        occupancy vehicle facility.
            `(3) Low emission and energy efficient vehicle.--The term 
        ``low emission and energy-efficient vehicle'' means a vehicle 
        that--
                    `(A) has been certified by the Administrator of the 
                Environmental Protection Agency as meeting the Tier II 
                emission level established in regulations prescribed by 
                the Administrator under section 202(i) of the Clean Air 
                Act (42 U.S.C. 7521(i)) for that make and model year 
                vehicle; and
                    `(B)(i) has been certified by the Administrator to 
                have a 45-mile-per-gallon or greater fuel economy 
                highway rating; or
                    `(ii) is an alternative fuel vehicle.
            `(4) Public transportation vehicle.--The term ``public 
        transportation vehicle'' means a vehicle that provides public 
        transportation (as defined in section 5302(a) of title 49).
            `(5) State agency.--The term ``State agency'', as used with 
        respect to a HOV facility, means an agency of a State or local 
        government having jurisdiction over the operation of the 
        facility and includes a State transportation department.'.
    (b) Conforming Amendments.--
            (1) Program efficiencies.--Section 102 of title 23, United 
        States Code, is amended by striking subsection (a) and 
        redesignating subsections (b) and (c) as subsections (a) and 
        (b), respectively.
            (2) Chapter analysis.--The analysis for subchapter I of 
        chapter 1 of such title is amended by adding at the end the 
        following:

`168. HOV facilities.'.
    (c) Technical Amendment.--Section 102(c) of title 23, United States 
Code, is amended by striking `10 years' and all that follows through 
`after' and inserting `10 years (or such longer period as the State 
requests and the Secretary determines to be reasonable) after'.

SEC. 1209. CONGESTION PRICING PILOT PROGRAM.

    (a) Establishment.--Section 1012(b)(1) of the Intermodal Surface 
Transportation Efficiency Act of 1991 (23 U.S.C. 149 note; 105 Stat. 
1938) is amended to read as follows:
            `(1) Establishment..--
                    `(A) In general.--The Secretary may enter into 
                cooperative agreements with State and local governments 
                to carry out not more than 25 congestion pricing pilot 
                projects.
                    `(B) Previously approved projects.--Projects 
                carried out under paragraph (1) shall include each 
                project approved under this subsection before the date 
                of enactment of the Transportation Equity Act: A Legacy 
                for Users and under which highway tolls are being 
                collected as of such date of enactment.'.
    (b) Low-Income Drivers.-- Section 1012(b)(7) of such Act is amended 
to read as follows:
            `(7) Reduced tolls for low-income drivers.--Any congestion 
        pricing pilot project carried out under this subsection that 
        involves the collection of highway tolls shall include a 
        program to permit low-income drivers to pay a reduced toll 
        amount.'.
    (c) Set-Aside for Projects not Involving Highway Tolls.--At the end 
of section 1012(b)(8) of such Act add the following:
                    `(D) Set-aside for projects not involving highway 
                tolls.--Of the amounts made available to carry out this 
                subsection, $3,000,000 per fiscal year shall be 
                available only for congestion pricing pilot projects 
                that do not involve highway tolls.'.
    (d) Conforming Amendments.--Section 1012(b) of such Act is 
amended--
            (1) in the subsection heading by striking `Value Pricing' 
        and inserting `Congestion Pricing';
            (2) in paragraph (2)--
                    (A) by striking `(2) Notwithstanding' and inserting 
                the following:
            `(2) Federal share; eligible costs.--Notwithstanding';
                    (B) in the first sentence by striking `programs' 
                and inserting `projects'; and
                    (C) in the second sentence by striking `program' 
                and inserting `project';
            (3) in paragraph (3) by striking `(3) Revenues' and 
        inserting the following:
            `(3) Use of revenues.--Revenues';
            (4) in paragraph (4)--
                    (A) by striking `(4) Notwithstanding' and inserting 
                the following:
            `(4) Use of tolls on interstate system.--Notwithstanding';
                    (B) by striking `value pricing pilot program' and 
                inserting `congestion pricing pilot project';
            (5) in paragraph (5)--
                    (A) by striking `(5) The Secretary' and inserting 
                the following:
            `(5) Monitoring.--The Secretary'; and
                    (B) by striking `programs' the first and second 
                place it appears and inserting `projects'; and
            (6) in paragraph (6) by striking `value pricing pilot 
        program' and inserting `congestion pricing pilot project'.

SEC. 1210. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM 
              ELIGIBILITY.

    Section 149(b)(5) of title 23, United States Code, is amended by 
inserting `improve transportation systems management and operations,' 
after `intersections,'.

SEC. 1211. SPECIAL RULES FOR STATE ASSUMPTION OF RESPONSIBILITIES.

    (a) Limitations.--Section 167(a) of title 23, United States Code, 
as added by section 1207(a) of this Act, is amended by adding at the 
end the following:
            `(3) Limitations.--
                    `(A) Procedural and substantive requirements.--A 
                State that assumes the responsibilities of the 
                Secretary under this section shall be subject to the 
                same procedural and substantive requirements as would 
                apply if the responsibilities were carried out by the 
                Secretary. When a State assumes responsibilities for 
                carrying out a Federal law under this section, the 
                State assents to Federal jurisdiction and shall be 
                solely responsible and solely liable for complying with 
                and carrying out that law instead of the Secretary.
                    `(B) Assumption of responsibilities.--Any 
                responsibility of the Secretary not assumed by the 
                State in a memorandum of understanding shall remain a 
                responsibility of the Secretary.
                    `(C) Powers of other agencies.--Nothing in this 
                section preempts or limits any power, jurisdiction, 
                responsibility, or authority of an agency, other than 
                the Department of Transportation, with respect to a 
                project.'.
    (b) Acceptance of Federal Courts Jurisdiction; Termination of 
Agreements.--Section 167(b) of title 23, United States Code, as added 
by section 1207(a) of this Act, is amended by adding at the end the 
following:
            `(5) Acceptance of federal courts jurisdiction.--A 
        memorandum of understanding with a State under this section 
        shall include a provision under which the State consents to 
        accept the jurisdiction of the Federal courts for the 
        compliance, discharge, and enforcement of any responsibility of 
        the Secretary that the State may assume under the memorandum.
            `(6) Termination of agreements.--A memorandum of 
        understanding with a State under this section shall include a 
        provision authorizing the Secretary to terminate the agreement 
        if the Secretary, after providing an opportunity for a hearing, 
        issues a finding that the State is not in compliance with the 
        terms of the agreement.'.
    (c) State Subject to Federal Laws.--Section 167 of title 23, United 
States Code, as added by section 1207(a) of this Act, is further 
amended by adding at the end the following:
    `(f) State Subject to Federal Laws.--For purposes of assuming 
responsibilities of the Secretary under this section, a State agency 
entering into a memorandum of understanding under subsection (b) is 
deemed to be a Federal agency to the extent the State is carrying out 
the Secretary's responsibilities under the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.), this title, and any other 
provision of Federal law.'.

                  Subtitle C--Mobility and Efficiency

SEC. 1301. NATIONAL CORRIDOR INFRASTRUCTURE IMPROVEMENT PROGRAM.

    (a) In General.--The Secretary shall establish and implement a 
program to make allocations to States for highway construction projects 
in corridors of national significance to promote economic growth and 
international or interregional trade pursuant to the selection factors 
provided in this section. A State must submit an application to the 
Secretary in order to receive an allocation under this section.
    (b) Selection Process.--
            (1) Priority.--In the selection process under this section, 
        the Secretary shall give priority to projects in corridors that 
        are a part of, or will be designated as part of, the Dwight D. 
        Eisenhower National System of Interstate and Defense Highways 
        after completion of the work described in the application 
        received by the Secretary and to any project that will be 
        completed within 5 years of the date of the allocation of funds 
        for the project.
            (2) Selection factors.--In making allocations under this 
        section, the Secretary shall consider the following factors:
                    (A) The extent to which the corridor provides a 
                link between 2 existing segments of the Interstate 
                System.
                    (B) The extent to which the project will facilitate 
                major multistate or regional mobility and economic 
                growth and development in areas underserved by existing 
                highway infrastructure.
                    (C) The extent to which commercial vehicle traffic 
                in the corridor--
                            (i) has increased since the date of 
                        enactment of the North American Free Trade 
                        Agreement Implementation Act (16 U.S.C. 4401 et 
                        seq.); and
                            (ii) is projected to increase in the 
                        future.
                    (D) The extent to which international truck-borne 
                commodities move through the corridor.
                    (E) The extent to which the project will make 
                improvements to an existing segment of the Interstate 
                System that will result in a decrease in congestion.
                    (F) The reduction in commercial and other travel 
                time through a major freight corridor expected as a 
                result of the project.
                    (G) The value of the cargo carried by commercial 
                vehicle traffic in the corridor and the economic costs 
                arising from congestion in the corridor.
                    (H) The extent of leveraging of Federal funds 
                provided to carry out this section, including--
                            (i) use of innovative financing;
                            (ii) combination with funding provided 
                        under other sections of this Act and title 23, 
                        United States Code; and
                            (iii) combination with other sources of 
                        Federal, State, local, or private funding.
    (c) Period of Availability.--Funds allocated for a project to a 
State under this section shall remain available for obligation in that 
State until 6 months from the day on which they are allocated. Sums not 
obligated within 6 months of the day on which they are allocated shall 
be available to the Secretary to be allocated for other projects 
eligible under this section.
    (d) Federal Share.--The Federal share of the cost of a project 
under this section shall be determined in accordance with section 
120(b) of title 23, United States Code.
    (e) Applicability of Title 23.--Except as provided in subsections 
(c) and (d), funds made available by section 1101(a)(10) of this Act to 
carry out this section shall be available for obligation in the same 
manner as if such funds were apportioned under chapter 1 of title 23, 
United States Code.
    (f) State Defined.--In this section, the term `State' has the 
meaning such term has under section 101 of title 23, United States 
Code.

SEC. 1302. COORDINATED BORDER INFRASTRUCTURE PROGRAM.

    (a) General Authority.--The Secretary shall implement a coordinated 
border infrastructure program under which the Secretary shall 
distribute funds to border States to improve the safe movement of motor 
vehicles at or across the border between the United States and Canada 
and the border between the United States and Mexico.
    (b) Eligible Uses.--A State may use funds apportioned under this 
section only for--
            (1) improvements in a border region to existing 
        transportation and supporting infrastructure that facilitate 
        cross-border motor vehicle and cargo movements;
            (2) construction of highways and related safety and safety 
        enforcement facilities in a border region that facilitate motor 
        vehicle and cargo movements related to international trade;
            (3) operational improvements in a border region, including 
        improvements relating to electronic data interchange and use of 
        telecommunications, to expedite cross border motor vehicle and 
        cargo movement;
            (4) modifications to regulatory procedures to expedite safe 
        and efficient cross border motor vehicle and cargo movements; 
        and
            (5) international coordination of transportation planning, 
        programming, and border operation with Canada and Mexico 
        relating to expediting cross border motor vehicle and cargo 
        movements.
    (c) Apportionment of Funds.--On October 1 of each fiscal year, the 
Secretary shall apportion among border States sums authorized to be 
appropriated to carry out this section for such fiscal year as follows:
            (1) 20 percent in the ratio that--
                    (A) the total number of incoming commercial trucks 
                that pass through the land border ports of entry within 
                the boundaries of a border State, as determined by the 
                Secretary; bears to
                    (B) the total number of incoming commercial trucks 
                that pass through such ports of entry within the 
                boundaries of all the border States, as determined by 
                the Secretary.
            (2) 30 percent in the ratio that--
                    (A) the total number of incoming personal motor 
                vehicles and incoming buses that pass through land 
                border ports of entry within the boundaries of a border 
                State, as determined by the Secretary; bears to
                    (B) the total number of incoming personal motor 
                vehicles and incoming buses that pass through such 
                ports of entry within the boundaries of all the border 
                States, as determined by the Secretary.
            (3) 25 percent in the ratio that--
                    (A) the total weight of incoming cargo by 
                commercial trucks that pass through land border ports 
                of entry within the boundaries of a border State, as 
                determined by the Secretary; bears to
                    (B) the total weight of incoming cargo by 
                commercial trucks that pass through such ports of entry 
                within the boundaries of all the border States, as 
                determined by the Secretary.
            (4) 25 percent of the ratio that--
                    (A) the total number of land border ports of entry 
                within the boundaries of a border State, as determined 
                by the Secretary; bears to
                    (B) the total number of land border ports of entry 
                within the boundaries of all the border States, as 
                determined by the Secretary.
    (d) Applicability of Title 23.--Funds made available to carry out 
this section shall be available for obligation in the same manner as if 
such funds were apportioned under chapter 1 of title 23, United States 
Code; except that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost of a project 
under this section shall be 80 percent.
    (e) Definitions.--In this section, the following definitions apply:
            (1) Border region.--The term `border region' means any 
        portion of a border State within 20 miles of an international 
        land border with Canada or Mexico.
            (2) Border state.--The term `border State' means any State 
        that has an international land border with Canada or Mexico.
            (3) Commercial truck.--The term `commercial truck' means a 
        commercial motor vehicle as defined in section 31301(4) (other 
        than subparagraph (B)) of title 49, United States Code.
            (4) Motor vehicle.--The term `motor vehicle' has the 
        meaning such term has under section 101(a) of title 23, United 
        States Code.
            (5) State.--The term `State' has the meaning such term has 
        in section 101(a) of such title 23.

SEC. 1303. FREIGHT INTERMODAL CONNECTORS.

    (a) In General.--
            (1) Establishment.--The Secretary shall establish a freight 
        intermodal connector program to improve productivity and 
        improve the efficiency of the transportation of freight, while 
        mitigating congestion in the area of freight intermodal 
        connectors.
            (2) Purposes.--The purposes of the program shall be--
                    (A) to facilitate and support intermodal freight 
                transportation initiatives at the State and local 
                levels in order to improve freight intermodal 
                connectors and mitigate the impact of congestion in the 
                area of such connectors; and
                    (B) to provide capital funding to address 
                infrastructure and freight operational needs at freight 
                intermodal connectors.
    (b) State Responsibilities.--Under the program, each State shall 
ensure that intermodal freight transportation and trade facilitation 
and are adequately addressed integrated into the project development 
process, including transportation planning, through final design and 
construction of freight related transportation projects.
    (c) Eligible Projects.--
            (1) In general.--Projects eligible for funding under this 
        section may include the construction of and improvements to 
        publicly owned freight intermodal connectors, the provision of 
        access to such connectors, and operational improvements for 
        such connectors (including capital investment for intelligent 
        transportation systems); except that a project located within 
        the boundaries of an intermodal freight facility shall only 
        include highway infrastructure modifications necessary to 
        facilitate direct intermodal access between the connector and 
        the facility.
            (2) Special rule.--If a State that does not have any 
        freight intermodal connectors within its boundaries or has only 
        freight intermodal connectors within its boundaries that are in 
        good condition and provide an adequate level of service, 
        projects within the boundaries of the State that are eligible 
        for assistance under section 103(b)(6) of title 23, United 
        States Code, relating to the National Highway System, shall be 
        eligible for funding under this section.
    (d) Priority.--Under the program, a State shall give priority to 
projects on freight intermodal connectors to the National Highway 
System as identified according to the criteria set forth in the report 
of the Department of Transportation to Congress entitled `Pulling 
Together: The NHS and its Connections to Major Intermodal Terminals'.
    (e) Apportionment.--On October 1 of each fiscal year, the Secretary 
shall apportion among the States sums made available to carry out this 
section for such fiscal year as follows:
            (1) 33.3 percent in the ratio that--
                    (A) the number of freight intermodal connectors 
                identified in the most recent Intermodal Freight 
                Connectors study of the Federal Highway Administration 
                within the boundaries of a State; bears to
                    (B) the total number of such connectors within the 
                boundaries of all the States.
            (2) 33.3 percent in the ratio that--
                    (A) the total of each State's annual contributions 
                to the Highway Trust Fund (other than the Mass Transit 
                Account) attributable to commercial motor vehicles; 
                bears to
                    (B) the total of such annual contributions by all 
                States.
            (3) 33.4 percent in the same ratios as funds are 
        apportioned for the National Highway System under clauses (i), 
        (ii), (iii), and (iv) of section 104(b)(1)(A) of title 23, 
        United States Code.
    (f) Applicability of Title 23.--Funds made available to carry out 
this section shall be available for obligation in the same manner as if 
such funds were apportioned under chapter 1 of title 23, United States 
Code; except that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost of a project 
under this section shall be 80 percent.
    (g) Update Report.--Not later than August 1, 2005, the Secretary 
shall publish an update to the report entitled `Pulling Together: the 
National Highway System and its Connections to Major Intermodal 
Terminals'.
    (h) Definitions.--In this section, the following definitions apply:
            (1) Freight intermodal connectors.--The term `freight 
        intermodal connector' means the roadway that connects to an 
        intermodal freight facility that carries or will carry 
        intermodal traffic.
            (2) Intermodal freight facility.--The term `intermodal 
        freight facility' means a port, airport, truck-rail terminal, 
        and pipeline-truck terminal.
            (3) State.--The term `State' has the meaning such term has 
        in section 101(a) of title 23, United States Code.

SEC. 1304. PROJECTS OF NATIONAL AND REGIONAL SIGNIFICANCE.

    (a) Findings.--Congress finds the following:
            (1) Under current law, surface transportation programs rely 
        primarily on formula capital apportionments to States.
            (2) Despite the significant increase for surface 
        transportation program funding in the Transportation Equity Act 
        of the 21st Century, current levels of investment are 
        insufficient to fund critical high-cost transportation 
        infrastructure facilities that address critical national 
        economic and transportation needs.
            (3) Critical high-cost transportation infrastructure 
        facilities often include multiple levels of government, 
        agencies, modes of transportation, and transportation goals and 
        planning processes that are not easily addressed or funded 
        within existing surface transportation program categories.
            (4) Projects of national and regional significance have 
        national and regional benefits, including improving economic 
        productivity by facilitating international trade, relieving 
        congestion, and improving transportation safety by facilitating 
        passenger and freight movement.
            (5) The benefits of such projects described in paragraph 
        (4) accrue to local areas, States, and the Nation as a result 
        of the effect such projects have on the national transportation 
        system.
            (6) A program dedicated to constructing projects of 
        national and regional significance is necessary to improve the 
        safe, secure, and efficient movement of people and goods 
        throughout the United States and improve the health and welfare 
        of the national economy.
    (b) Establishment of Program.--The Secretary shall establish a 
program to provide grants to qualified entities for projects of 
national and regional significance.
    (c) Definitions.--
            (1) Eligible project costs.--The term `eligible project 
        costs' means the costs of--
                    (A) development phase activities, including 
                planning, feasibility analysis, revenue forecasting, 
                environmental review, preliminary engineering and 
                design work, and other preconstruction activities; and
                    (B) construction, reconstruction, rehabilitation, 
                and acquisition of real property (including land 
                related to the project and improvements to land), 
                environmental mitigation, construction contingencies, 
                acquisition of equipment, and operational improvements.
            (2) Eligible project.--The term `eligible project' means 
        any surface transportation project eligible for Federal 
        assistance under title 23, United States Code, including 
        freight railroad projects and activities eligible under such 
        title.
            (3) Qualified entity.--The term `qualified entity' means a 
        State as defined in section 101(a) of title 23, United States 
        Code.
    (d) Eligibility.--To be eligible for assistance under this section, 
a project shall have eligible project costs that are reasonably 
anticipated to equal or exceed the lesser of--
            (1) $500,000,000; or
            (2) 75 percent of the amount of Federal highway assistance 
        funds apportioned for the most recently completed fiscal year 
        to the State in which the project is located.
    (e) Applications.--Each qualified entity seeking to receive a grant 
under this section for an eligible project shall submit to the 
Secretary an application in such form and in accordance with such 
requirements as the Secretary shall establish.
    (f) Competitive Grant Selection and Criteria for Grants.--
            (1) In general.--The Secretary shall--
                    (A) establish criteria for selecting among projects 
                that meet the eligibility criteria specified in 
                subsection (d);
                    (B) conduct a national solicitation for 
                applications; and
                    (C) award grants on a competitive basis.
            (2) Criteria for grants.--The Secretary may approve a grant 
        under this section for a project only if the Secretary 
        determines that the project--
                    (A) is based on the results of preliminary 
                engineering;
                    (B) is justified based on the project's ability--
                            (i) to generate national economic benefits, 
                        including creating jobs, expanding business 
                        opportunities, and impacting the gross domestic 
                        product;
                            (ii) to reduce congestion, including 
                        impacts in the State, region, and Nation;
                            (iii) to improve transportation safety, 
                        including reducing transportation accidents, 
                        injuries, and fatalities;
                            (iv) to otherwise enhance the national 
                        transportation system; and
                            (v) to garner support for non-Federal 
                        financial commitments and provide evidence of 
                        stable and dependable financing sources to 
                        construct, maintain, and operate the 
                        infrastructure facility; and
                    (C) is supported by an acceptable degree of non-
                Federal financial commitments, including evidence of 
                stable and dependable financing sources to construct, 
                maintain, and operate the infrastructure facility.
            (3) Selection considerations.--In selecting a project under 
        this section, the Secretary shall consider the extent to which 
        the project--
                    (A) leverages Federal investment by encouraging 
                non-Federal contributions to the project, including 
                contributions from public-private partnerships;
                    (B) uses new technologies, including intelligent 
                transportation systems, that enhance the efficiency of 
                the project.
                    (C) helps maintain or protect the environment.
            (4) Preliminary engineering.--In evaluating a project under 
        paragraph (2)(A), the Secretary shall analyze and consider the 
        results of preliminary engineering for the project.
            (5) Non-federal financial commitment.--
                    (A) Evaluation of project.--In evaluating a project 
                under paragraph (2)(C), the Secretary shall require 
                that--
                            (i) the proposed project plan provides for 
                        the availability of contingency amounts that 
                        the Secretary determines to be reasonable to 
                        cover unanticipated cost increases; and
                            (ii) each proposed non-Federal source of 
                        capital and operating financing is stable, 
                        reliable, and available within the proposed 
                        project timetable.
                    (B) Considerations.--In assessing the stability, 
                reliability, and availability of proposed sources of 
                non-Federal financing under subparagraph (A), the 
                Secretary shall consider--
                            (i) existing financial commitments;
                            (ii) the degree to which financing sources 
                        are dedicated to the purposes proposed;
                            (iii) any debt obligation that exists or is 
                        proposed by the recipient for the proposed 
                        project; and
                            (iv) the extent to which the project has a 
                        non-Federal financial commitment that exceeds 
                        the required non-Federal share of the cost of 
                        the project.
            (6) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Secretary shall issue regulations on 
        the manner in which the Secretary will evaluate and rate the 
        projects based on the results of preliminary engineering, 
        project justification, and the degree of non-Federal financial 
        commitment, as required under this subsection.
            (7) Project evaluation and rating.--A proposed project may 
        advance from preliminary engineering to final design and 
        construction only if the Secretary finds that the project meets 
        the requirements of this subsection and there is a reasonable 
        likelihood that the project will continue to meet such 
        requirements. In making such findings, the Secretary shall 
        evaluate and rate the project as `highly recommended', 
        `recommended', or `not recommended' based on the results of 
        preliminary engineering, the project justification criteria, 
        and the degree of non-Federal financial commitment, as required 
        under this subsection. In rating the projects, the Secretary 
        shall provide, in addition to the overall project rating, 
        individual ratings for each of the criteria established under 
        the regulations issued under paragraph (6).
    (g) Letters of Intent and Full Funding Grant Agreements.--
            (1) Letter of intent.--
                    (A) In general.--The Secretary may issue a letter 
                of intent to an applicant announcing an intention to 
                obligate, for a project under this section, an amount 
                from future available budget authority specified in law 
                that is not more than the amount stipulated as the 
                financial participation of the Secretary in the 
                project.
                    (B) Notification.--At least 60 days before issuing 
                a letter under subparagraph (A) or entering into a full 
                funding grant agreement, the Secretary shall notify in 
                writing the Committee on Transportation and 
                Infrastructure of the House of Representatives and the 
                Committee on Environment and Public Works of the Senate 
                of the proposed letter or agreement. The Secretary 
                shall include with the notification a copy of the 
                proposed letter or agreement as well as the evaluations 
                and ratings for the project.
                    (C) Not an obligation.--The issuance of a letter is 
                deemed not to be an obligation under sections 1108(c) 
                and (d), 1501, and 1502(a) of title 31, United States 
                Code, or an administrative commitment.
                    (D) Obligation or commitment.--An obligation or 
                administrative commitment may be made only when 
                contract authority is allocated to a project.
            (2) Full funding grant agreement.--
                    (A) In general.--A project financed under this 
                subsection shall be carried out through a full funding 
                grant agreement. The Secretary shall enter into a full 
                funding grant agreement based on the evaluations and 
                ratings required under subsection (f)(7).
                    (B) Terms.--If the Secretary makes a full funding 
                grant agreement with an applicant, the agreement 
                shall--
                            (i) establish the terms of participation by 
                        the United States Government in a project under 
                        this section;
                            (ii) establish the maximum amount of 
                        Government financial assistance for the 
                        project;
                            (iii) cover the period of time for 
                        completing the project, including a period 
                        extending beyond the period of an 
                        authorization; and
                            (iv) make timely and efficient management 
                        of the project easier according to the laws of 
                        the United States.
                    (C) Agreement.--An agreement under this paragraph 
                obligates an amount of available budget authority 
                specified in law and may include a commitment, 
                contingent on amounts to be specified in law in advance 
                for commitments under this paragraph, to obligate an 
                additional amount from future available budget 
                authority specified in law. The agreement shall state 
                that the contingent commitment is not an obligation of 
                the Government. Interest and other financing costs of 
                efficiently carrying out a part of the project within a 
                reasonable time are a cost of carrying out the project 
                under a full funding grant agreement, except that 
                eligible costs may not be more than the cost of the 
                most favorable financing terms reasonably available for 
                the project at the time of borrowing. The applicant 
                shall certify, in a way satisfactory to the Secretary, 
                that the applicant has shown reasonable diligence in 
                seeking the most favorable financing terms.
            (3) Amounts.--The total estimated amount of future 
        obligations of the Government and contingent commitments to 
        incur obligations covered by all outstanding letters of intent 
        and full funding grant agreements may be not more than the 
        greater of the amount authorized to carry out this section or 
        an amount equivalent to the last 2 fiscal years of funding 
        authorized to carry out this section less an amount the 
        Secretary reasonably estimates is necessary for grants under 
        this section not covered by a letter. The total amount covered 
        by new letters and contingent commitments included in full 
        funding grant agreements may be not more than a limitation 
        specified in law.
    (h) Grant Requirements.--
            (1) In general.--A grant for a project under this section 
        shall be subject to all of the requirements of title 23, United 
        States Code, and chapter 52 of title 49, United States Code.
            (2) Other terms and conditions.--The Secretary shall 
        require that all grants under this section be subject to all 
        terms, conditions, and requirements that the Secretary decides 
        are necessary or appropriate for purposes of this section, 
        including requirements for the disposition of net increases in 
        value of real property resulting from the project assisted 
        under this section.
    (i) Government's Share of Project Cost.--Based on engineering 
studies, studies of economic feasibility, and information on the 
expected use of equipment or facilities, the Secretary shall estimate 
the cost of a project receiving assistance under this section. A grant 
for the project is for 80 percent of the project cost, unless the grant 
recipient requests a lower grant percentage. A refund or reduction of 
the remainder may be made only if a refund of a proportional amount of 
the grant of the Government is made at the same time.
    (j) Fiscal Capacity Considerations.--If the Secretary gives 
priority consideration to financing projects that include more than the 
non-Government share required under subsection (i) the Secretary shall 
give equal consideration to differences in the fiscal capacity of State 
and local governments.
    (k) Reports.--
            (1) Annual report.--Not later than the first Monday in 
        February of each year, the Secretary shall submit to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate a report that includes a proposal on the 
        allocation of amounts to be made available to finance grants 
        under this section.
            (2) Recommendations on funding.--The annual report under 
        this paragraph shall include evaluations and ratings, as 
        required under subsection (f). The report shall also include 
        recommendations of projects for funding based on the 
        evaluations and ratings and on existing commitments and 
        anticipated funding levels for the next 3 fiscal years and for 
        the next 10 fiscal years based on information currently 
        available to the Secretary.
    (l) Applicability of Title 23.--Funds made available to carry out 
this section shall be available for obligation in the same manner as if 
such funds were apportioned under chapter 1 of title 23, United States 
Code; except that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost of a project 
under this section shall be as provided in this section.

SEC. 1305. DEDICATED TRUCK LANES.

    (a) In General.--The Secretary shall establish and implement a 
pilot program to make allocations to States for the construction of 
projects that separate commercial truck traffic from other motor 
vehicle traffic. A State must submit an application to the Secretary in 
order to receive an allocation under this section.
    (b) Selection Process.--
            (1) Priority.--In the selection process under this section, 
        the Secretary shall give priority to projects that provide 
        additional capacity.
            (2) Selection factors.--In making allocations under this 
        section, the Secretary shall consider the following factors:
                    (A) The extent to which the project will improve 
                the safe and efficient movement of freight.
                    (B) The extent to which the project provides 
                positive separation of commercial trucks from other 
                motor vehicle traffic.
                    (C) The extent to which the project connects an 
                intermodal freight facility or an international port of 
                entry to the Dwight D. Eisenhower National System of 
                Interstate and Defense Highways by providing limited 
                access lanes that allow commercial truck traffic to 
                enter the Interstate System at the posted speed limit.
                    (D) The extent to which the project will remove 
                truck traffic from surface streets.
                    (E) The extent to which travel time is expected to 
                be reduced as a result of the proposed project.
                    (F) The extent of leveraging of Federal funds 
                provided to carry out this section, including--
                            (i) use of innovative financing;
                            (ii) combination with funding provided 
                        under other sections of this Act and title 23, 
                        United States Code; and
                            (iii) combination with other sources of 
                        Federal, State, local, or private funding.
    (c) Federal Share.--The Federal share of the cost of a project 
under this section shall be determined in accordance with section 
120(b) of title 23, United States Code.
    (d) Applicability of Title 23.--Except as provided in subsection 
(d), funds made available by section 1101(a)(22) of this Act to carry 
out this section shall be available for obligation in the same manner 
as if such funds were apportioned under chapter 1 of title 23, United 
States Code.
    (e) Definitions.--In this section the following definitions apply:
            (1) Commercial truck.--The term `commercial truck' means a 
        self-propelled or towed vehicle used on highways in commerce 
        principally to transport cargo if the vehicle has a gross 
        vehicle weight rating or gross vehicle weight of at least 
        10,001 pounds, whichever is greater.
            (2) State.--The term `State' has the meaning such term has 
        under section 101 of title 23, United States Code.

SEC. 1306. TRUCK PARKING FACILITIES.

    (a) Establishment.--In cooperation with appropriate State, 
regional, and local governments, the Secretary shall establish a pilot 
program to address the shortage of long-term parking for commercial 
motor vehicles on the National Highway System.
    (b) Allocation of Funds.--
            (1) In general.--The Secretary shall allocate funds made 
        available to carry out this section among States, metropolitan 
        planning organizations, and local governments.
            (2) Applications.--To be eligible for an allocation under 
        this section, a State, metropolitan planning organization, or 
        local government shall submit to the Secretary an application 
        at such time and containing such information as the Secretary 
        may require.
            (3) Eligible projects.--Funds allocated under this 
        subsection shall be used by the recipient for projects 
        described in an application approved by the Secretary. Such 
        projects shall serve the National Highway System and may 
        include the following:
                    (A) Constructing safety rest areas, as defined in 
                section 120(c) of title 23, United States Code, that 
                include parking for commercial motor vehicles.
                    (B) Constructing commercial motor vehicle parking 
                facilities adjacent to commercial truck stops and 
                travel plazas.
                    (C) Opening existing facilities to commercial motor 
                vehicle parking, including inspection and weigh 
                stations and park-and-ride facilities.
                    (D) Promoting the availability of publicly or 
                privately provided commercial motor vehicle parking on 
                the National Highway System using intelligent 
                transportation systems and other means.
                    (E) Constructing turnouts along the National 
                Highway System for commercial motor vehicles.
                    (F) Making capital improvements to public 
                commercial motor vehicle parking facilities currently 
                closed on a seasonal basis to allow the facilities to 
                remain open year-round.
                    (G) Improving the geometric design of interchanges 
                on the National Highway System to improve access to 
                commercial motor vehicle parking facilities.
            (4) Priority.--In allocating funds made available to carry 
        out this section, the Secretary shall give priority to 
        applicants that--
                    (A) demonstrate a severe shortage of commercial 
                motor vehicle parking capacity in the corridor to be 
                addressed;
                    (B) have consulted with affected State and local 
                governments, community groups, private providers of 
                commercial motor vehicle parking, and motorist and 
                trucking organizations; and
                    (C) demonstrate that their proposed projects are 
                likely to have positive effects on highway safety, 
                traffic congestion, or air quality.
    (c) Funding.--
            (1) In general.--There is authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) to carry out this section $5,000,000 for each of 
        fiscal years 2005 through 2009.
            (2) Contract authority.--Funds authorized under this 
        subsection shall be available for obligation in the same manner 
        as if the funds were apportioned under chapter 1 of title 23, 
        United States Code.
    (d) Report to Congress.--Not later than 5 years after the date of 
enactment of this Act, the Secretary shall transmit to Congress a 
report on the results of the pilot program.
    (e) Federal Share.--The Federal share of the cost of a project 
carried out using amounts made available under this section shall be 
determined in accordance with sections 120(b) and 120(c) of title 23, 
United States Code.
    (f) Applicability of Title 23.--Notwithstanding any other provision 
of law, projects funded under this section shall be treated as projects 
on a Federal-aid system under chapter 1 of title 23, United States 
Code.

                       Subtitle D--Highway Safety

SEC. 1401. HIGHWAY SAFETY IMPROVEMENT PROGRAM.

    (a) Safety Improvement Project Defined.--Section 101(a)(30) of 
title 23, United States Code, is amended by inserting `installs 
fluorescent, yellow-green signs at pedestrian or bicycle crossings or 
school zones,' after `call boxes,'.
    (b) Operation Lifesaver.--Section 104(d)(1) of such title is 
amended--
            (1) by striking `subsection (b)(3) of this section' and 
        inserting `section 130(f)'; and
            (2) by striking `$500,000' and inserting `$600,000'.
    (c) Railway-Highway Crossing Hazard Elimination in High Speed Rail 
Corridors.--
            (1) In general.--Section 104(d)(2) of such title is 
        amended--
                    (A) in subparagraph (A) by striking `$5,250,000' 
                and inserting `$7,500,000 for each of fiscal years 2004 
                and 2005, $10,000,000 for each of fiscal years 2006 and 
                2007, and $15,000,000 for each of fiscal years 2008 and 
                2009'; and
                    (B) in subparagraph (E)--
                            (i) by striking `Not less than $250,000 of 
                        such set-aside' and inserting `Of such set-
                        aside, not less than $875,000 for each of 
                        fiscal years 2004 and 2005, $1,500,000 for each 
                        of fiscal years 2006 and 2007, and $2,750,000 
                        for each of fiscal years 2008 and 2009'; and
                            (ii) by striking `per fiscal year'.
            (2) Designation of corridors.--Of the rail corridors 
        selected by the Secretary in accordance with section 104(d)(2) 
        of title 23, United States Code--
                    (A) the Northern New England High Speed Rail 
                Corridor is expanded to include the train routes from 
                Boston, Massachusetts, to Albany, New York, and from 
                Springfield, Massachusetts, to New Haven, Connecticut; 
                and
                    (B) the South Central Corridor is expanded to 
                include the train route from Killeen, Texas, to 
                Houston, Texas, via Bryan-College Station.
    (d) Railway-Highway Crossings.--
            (1) Funds for protective devices.--Section 130(e) of such 
        title is amended--
                    (A) by striking `At' and inserting the following:
            `(1) In general.--At'; and
                    (B) by adding at the end the following:
            `(2) Special rule.--If a State demonstrates to the 
        satisfaction of the Secretary that the State has met all its 
        needs for installation of protective devices at railway-highway 
        crossings, the State may use funds made available by this 
        subsection for other purposes by this section.'.
            (2) Apportionment.--Section 130(f) of such title is amended 
        to read as follows:
    `(f) Apportionment.--
            `(1) Formula.--Fifty percent of the funds authorized to be 
        appropriated to carry out this section shall be apportioned to 
        the States in accordance with the formula set forth in section 
        104(b)(3)(A), and 50 percent of such funds shall be apportioned 
        to the States in the ratio that total public railway-highway 
        crossings in each State bears to the total of such crossings in 
        all States.
            `(2) Minimum apportionment.--Notwithstanding paragraph (1), 
        each State shall receive a minimum of \1/2\ of 1 percent of the 
        funds apportioned under paragraph (1).
            `(3) Federal share.--The Federal share payable on account 
        of any project financed with funds authorized to be 
        appropriated to carry out this section shall be 90 percent of 
        the cost thereof.'.
            (3) Biennial report to congress.--The third sentence of 
        section 130(g) of such title is amended by striking `not later 
        than April 1 of each year,' and inserting `, not later than 
        April 1, 2006, and every 2 years thereafter,'.
            (4) Expenditure of funds.--Section 130 of such title is 
        further amended by adding at the end the following:
    `(k) Expenditure of Funds.--Not more than 2 percent of funds 
apportioned to a State to carry out this section may be used by the 
State for compilation and analysis of data in support of activities 
carried out under subsection (g).'.
    (e) Surface Transportation Program.--
            (1) In general.--Section 133(d) of such title is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through (5) as 
                paragraphs (1) through (4), respectively; and
                    (C) in paragraph (2) (as so redesignated)--
                            (i) in subparagraph (A) by striking `80 
                        percent' and inserting `90 percent';
                            (ii) in subparagraph (B) by striking `tobe' 
                        and inserting `to be'; and
                            (iii) in subparagraph (D) by adding a 
                        period at the end.
            (2) Conforming amendments.--
                    (A) Section 133.--Section 133(e) is amended by 
                striking `(d)(2)' and inserting `(d)(1)' in each of 
                paragraphs (3)(B)(i), (5)(A), and (5)(B).
                    (B) Section 126.--Section 126(b) of such title is 
                amended--
                            (i) by striking `to the last sentence of 
                        section 133(d)(1) or';
                            (ii) by striking `section 133(d)(3)' and 
                        inserting `section 133(d)(2)'; and
                            (iii) by striking `or 133(d)(2)'.
    (f) Hazard Elimination Program.--
            (1) Purposes.--Section 152(a)(1) of such title is amended--
                    (A) by striking `and' after `bicyclists,'; and
                    (B) by inserting after `pedestrians,' the 
                following: `and the disabled, identify roadway safety 
                improvement needs for such locations, sections, and 
                elements,'.
            (2) Hazards.--Section 152(a)(2)(A) of such title is amended 
        by inserting `the disabled,' after `pedestrians,'.
            (3) Approval of projects.--Section 152(b) of such title is 
        amended by inserting before the period at the end the 
        following: `that reduces the likelihood of crashes involving 
        road departures, intersections, pedestrians, the disabled, 
        bicyclists, older drivers, or construction work zones'.
            (4) Expenditure of funds.--Section 152(c) of such title is 
        amended--
                    (A) in paragraph (2) by striking `or' at the end;
                    (B) in paragraph (3) by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            `(4) police assistance for traffic and speed management in 
        construction work zones;
            `(5) installation of barriers between construction work 
        zones and traffic lanes for the safety of motorists and 
        workers; and
            `(6) compilation and analysis of data under subsections (f) 
        and (g) if the funds used for this purpose by a State do not 
        exceed 2 percent of the amount apportioned to such State to 
        carry out this section.'.
            (5) Apportionment.--Section 152(d) of such title is amended 
        to read as follows:
    `(d) Apportionment.--
            `(1) Formula.--Funds authorized to be appropriated to carry 
        out this section shall be apportioned to the States in 
        accordance with the formula set forth in section 104(b)(3)(A).
            `(2) Minimum apportionment.--Notwithstanding paragraph (1), 
        each State shall receive a minimum of \1/2\ of 1 percent of the 
        funds apportioned under paragraph (1).
            `(3) Federal share.--The Federal share payable on account 
        of any project financed with funds authorized to be 
        appropriated to carry out this section shall be 90 percent of 
        the cost thereof.'.
            (6) Biennial report to congress.--
                    (A) In general.--Section 152 of such title is 
                amended by adding at the end the following:
    `(i) Biennial Report to Congress.--Not later than 2 years after the 
date of enactment of this subsection, and every 2 years thereafter, 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 program under this section. The report shall include, at a minimum, 
the following:
            `(1) A summary of State projects completed under this 
        section categorized by the types of hazards and a statement of 
        the cost of such projects.
            `(2) An analysis of the effectiveness of such categories of 
        projects in reducing the number and severity of crashes at high 
        hazard locations.
            `(3) An assessment of the adequacy of authorized funding 
        for the program and State use of such funding to address the 
        national need for such projects.
            `(4) Recommendations for funding and program improvements 
        to reduce the number of high hazard locations.
            `(5) An analysis and evaluation of each State program, an 
        identification of any State found not to be in compliance with 
        the schedule of improvements required by subsection (a), and 
        recommendations for future implementation of the hazard 
        elimination program.'.
                    (B) Conforming amendment.--Section 152(g) of such 
                title is amended by striking the third sentence through 
                the last sentence.
    (g) Technical Amendment.--Section 133(b) of such title is amended 
by redesignating paragraphs (13) and (14) as paragraphs (12) and (13), 
respectively.
    (h) Effective Date.--The amendments made by subsections (b)(1), 
(d), (e), and (f) shall take effect on September 30, 2005.

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

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

SEC. 1403. HIGH RISK RURAL ROAD SAFETY IMPROVEMENT PROGRAM.

    (a) Establishment.--The Secretary shall establish and implement a 
high risk rural road safety improvement program in accordance with this 
section.
    (b) Eligible Projects.--
            (1) In general.--Except as provided in paragraph (2), a 
        State may obligate funds apportioned to it under this section 
        only for construction and operational improvement projects on 
        high risk rural roads and only if the primary purpose of the 
        project is to improve highway safety on a high risk rural road.
            (2) Special rule.--A State may use funds apportioned to it 
        under this section for any project approved by the Secretary 
        under section 152 of title 23, United States Code, if the State 
        certifies to the Secretary that it has no projects described in 
        paragraph (1).
    (c) State Allocation System.--Each State shall establish a system 
for allocating funds apportioned to it under this section among 
projects eligible for assistance under this section that have the 
highest benefits to highway safety. Such system may include a safety 
management system established by the State under section 303 of title 
23, United States Code, or a survey established pursuant to section 
152(a) of such title.
    (d) Apportionment of Funds.--On October 1 of each fiscal year, the 
Secretary shall apportion among States sums authorized to be 
appropriated to carry out this section for such fiscal year as follows:
            (1) \1/3\ in the ratio that--
                    (A) each State's public road lane mileage for rural 
                minor collectors and rural local roads; bears to
                    (B) the total public road lane mileage for rural 
                minor collectors and rural local roads of all States.
            (2) \1/3\ in the ratio that--
                    (A) the population of areas other than urbanized 
                areas in each State, as shown by the most recent 
                Government decennial census of population; bears to
                    (B) the population of all areas other than 
                urbanized areas in the United States, as shown by that 
                census.
            (3) \1/3\ in the ratio that--
                    (A) the total vehicle miles traveled on public 
                roads in each State; bears to
                    (B) the total number of vehicle miles traveled on 
                public roads in all States.
    (e) Applicability of Title 23.--Funds made available to carry out 
this section shall be available for obligation in the same manner as if 
such funds were apportioned under chapter 1 of title 23, United States 
Code; except that such funds shall not be transferable and shall remain 
available until expended and the Federal share of the cost of a project 
under this section shall be 80 percent. Notwithstanding any other 
provision of law, projects assisted under this section shall be treated 
as projects on a Federal-aid system under such chapter.
    (f) Definitions.--In this section, the following definitions apply:
            (1) High risk rural road.--The term `high risk rural road' 
        means any roadway functionally classified as a rural major or 
        minor collector or a rural local road--
                    (A) on which the accident rate for fatalities and 
                incapacitating injuries exceeds the statewide average 
                for these functional classes of roadway; or
                    (B) which will likely have increases in traffic 
                volume that are likely to create an accident rate for 
                fatalities and incapacitating injuries that exceeds the 
                statewide average for these functional classes of 
                roadway.
            (2) State and urbanized area.--The terms `State' and 
        `urbanized area' have the meaning such terms have under section 
        101(a) of title 23, United States Code.

SEC. 1404. TRANSFERS OF APPORTIONMENTS TO SAFETY PROGRAMS.

    (a) Use of Safety Belts and Motorcycle Helmets.--Section 153(h) of 
title 23, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading by striking 
                `Thereafter.--' and inserting `Fiscal years 1995-
                2004.--'; and
                    (B) by inserting `and ending before October 1, 
                2004,' after `September 30, 1994,';
            (2) by redesignating paragraphs (3) through (5) as 
        paragraphs (4) through (6), respectively;
            (3) by inserting after paragraph (2) the following:
            `(3) Fiscal year 2005 and thereafter.--On October 1, 2004, 
        and each October 1 thereafter, if a State does not have in 
        effect a law described in subsection (a)(2), the Secretary 
        shall transfer from the funds apportioned to the State on that 
        date under each of subsections (b)(1), (b)(2), and (b)(3) of 
        section 104 to the apportionment of the State under section 402 
        an amount equal to 3 percent of the funds apportioned to the 
        State under such subsections for fiscal year 2003.'; and
            (4) in paragraph (5) (as so redesignated)--
                    (A) by striking `which is determined by 
                multiplying' and inserting `which, for fiscal year 2005 
                and each fiscal year thereafter, is determined by 
                multiplying'; and
                    (B) in subparagraph (B) by striking `such fiscal 
                year' each place it appears and inserting `fiscal year 
                2003'.
    (b) Open Container Requirements.--Section 154(c) of title 23, 
United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading by striking `fiscal 
                years thereafter' and inserting `fiscal year 2004' ; 
                and
                    (B) by striking `and each October 1 thereafter,';
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively;
            (3) by inserting after paragraph (2) the following:
            `(3) Fiscal year 2005 and thereafter.--On October 1, 2004, 
        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 transfer from the funds apportioned to 
        the State on that date under each of paragraphs (1), (3), and 
        (4) of section 104(b) an amount equal to 3 percent of the funds 
        apportioned to the State under such paragraphs for fiscal year 
        2003 to be used or directed as described in subparagraph (A) or 
        (B) of paragraph (1).';
            (4) in paragraph (5) (as so redesignated) by striking 
        `paragraph (3)' and inserting `paragraph (4)';
            (5) in paragraphs (4), (5), and (6) (as so redesignated) by 
        striking `paragraph (1) or (2)' and inserting `paragraph (1), 
        (2), or (3)'; and
            (6) in paragraph (7)(B) (as so redesignated)--
                    (A) by striking `The amount' and inserting `For 
                fiscal year 2005 and each fiscal year thereafter, the 
                amount'; and
                    (B) in subclauses (I) and (II) of clause (ii) by 
                striking `the fiscal year' and inserting `fiscal year 
                2003'.
    (c) Minimum Penalties for Certain Repeat Offenders.--Section 164(b) 
of title 23, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading by striking `and 
                fiscal years thereafter' and inserting `fiscal year 
                2004' ; and
                    (B) by striking `and each October 1 thereafter,';
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively;
            (3) by inserting after paragraph (2) the following:
            `(3) Fiscal year 2005 and thereafter.--On October 1, 2004, 
        and each October 1 thereafter, if a State has not enacted or is 
        not enforcing a repeat intoxicated driver law, the Secretary 
        shall transfer from the funds apportioned to the State on that 
        date under each of paragraphs (1), (3), and (4) of section 
        104(b) an amount equal to 3 percent of the funds apportioned to 
        the State under such paragraphs for fiscal year 2003 to be used 
        or directed as described in subparagraph (A) or (B) of 
        paragraph (1).';
            (4) in paragraph (5) (as so redesignated) by striking 
        `paragraph (3)' and inserting `paragraph (4)';
            (5) in paragraphs (4), (5), and (6) (as so redesignated) by 
        striking `paragraph (1) or (2)' and inserting `paragraph (1), 
        (2), or (3)'; and
            (6) in paragraph (7)(B) (as so redesignated)--
                    (A) by striking `The amount' and inserting `For 
                fiscal year 2005 and each fiscal year thereafter, the 
                amount'; and
                    (B) in subclauses (I) and (II) of clause (ii) by 
                striking `the fiscal year' and inserting `fiscal year 
                2003'.

SEC. 1405. SAFETY INCENTIVE GRANTS FOR USE OF SEAT BELTS.

    Section 157(g)(1) of title 23, United States Code, is amended by 
striking `for fiscal year 2004' and all that follows through `2005' and 
inserting `and for each of fiscal years 2003, 2004, and 2005'.

SEC. 1406. SAFETY INCENTIVES TO PREVENT OPERATION OF MOTOR VEHICLES BY 
              INTOXICATED PERSONS.

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

SEC. 1407. REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED.

    Section 164(a)(5)(A) of title 23, United States Code, is amended to 
read as follows:
                    `(A) receive (i) a driver's license suspension for 
                not less than 1 year, or (ii) a combination of 
                suspension of all driving privileges of an individual 
                for the first 45 days of the suspension period followed 
                by a reinstatement of limited driving privileges for 
                the propose of getting to and from work, school, or an 
                alcohol treatment program if an ignition interlock 
                device is installed on each of the motor vehicles owned 
                or operated, or both, by the individual;'.

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

    (a) Rulemaking Proceeding.--The Secretary shall conduct a 
rulemaking proceeding to determine the appropriate conditions under 
which a State when choosing to repair or replace damaged highway 
features on the National Highway System with State funds (rather than 
with available Federal financial assistance) should be required to 
repair or replace such features with highway features that have been 
tested, evaluated, and found to be acceptable under the guidelines 
contained in the report of the Transportation Research Board of the 
National Research Council entitled `NCHRP Report 350-Recommended 
Procedures for the Safety Performance Evaluation of Highway Features'.
    (b) Matters to Be Considered.--The rulemaking proceeding shall 
cover those highway features that are covered by the guidelines 
referred to in subsection (a). The conditions to be considered by the 
Secretary in the rulemaking proceeding shall include types of highway 
features, cost-effectiveness, and practicality of replacement with 
highway features that have been found to be acceptable under such 
guidelines.
    (c) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue regulations regarding the 
conditions under which States when choosing to repair or replace 
damaged highway features described in subsection (a) will be required 
to repair or replace such features with highway features that have been 
tested, evaluated, and found to be acceptable as described in 
subsection (a).

           Subtitle E--Construction and Contract Efficiencies

SEC. 1501. DESIGN-BUILD.

    (a) Qualified Projects.--Section 112(b)(3)(C) of title 23, United 
States Code, is amended to read as follows:
                    `(C) Qualified projects.--A qualified project 
                referred to in subparagraph (A) is a project under this 
                chapter for which the Secretary has approved the use of 
                design-build contracting under criteria specified in 
                regulations issued by the Secretary.'.
    (b) Experimental Procurement.--Section 112(b)(3) of such title is 
further amended--
            (1) by redesigning subparagraph (D) as subparagraph (G); 
        and
            (2) by inserting after subparagraph (C) the following:
                    `(D) Experimental procurement.--As part of any 
                experimental program carried out under this section, 
                the Secretary shall evaluate the use of procurement 
                procedures under this paragraph where subjective 
                evaluation criteria account for the majority of the 
                selection determination.
                    `(E) Limitation on statutory construction.--Nothing 
                in this section shall be construed as effecting the 
                authority to carry out any experimental program 
                concerning design-build contracting that is being 
                carried out by the Secretary on the date of enactment 
                of this subparagraph.
                    `(F) Report.--Not later than 3 years after the date 
                of enactment of this subparagraph, the Secretary shall 
                transmit to Congress a report on the effectiveness of 
                design-build contracting procedures in which the 
                majority of the selection determinations are made based 
                on subjective criteria in accordance with subparagraph 
                (D).'.

SEC. 1502. WARRANTY HIGHWAY CONSTRUCTION PROJECT PILOT PROGRAM.

    (a) In General.--The Secretary shall establish and implement a 
pilot program designed to encourage States to incorporate warranties in 
the letting of contracts for highway construction projects.
    (b) Maximum Number of Projects.--The Secretary may allow not more 
than 15 projects a year to be carried out under the pilot program.
    (c) Federal Share.--The Federal share of the costs of a project 
under the pilot program may not exceed 90 percent.
    (d) Minimum Project Cost.--The estimated total cost of a project to 
be carried out under the pilot program must be greater than 
$15,000,000.
    (e) Selection Process.--In the selection process for the pilot 
program, the Secretary shall select, to the extent possible, projects 
from several different regions of the United States in order to 
demonstrate the effects that different climates and traffic patterns 
have on warranty highway construction projects.
    (f) Rulemaking.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall issue a rule to 
        implement the pilot program. The rule shall include the 
        following factors for eligibility of a highway construction 
        project to be included in the program:
                    (A) A requirement that the contract for the project 
                must include a long-term limited warranty that is of a 
                duration sufficient to ensure that--
                            (i) the cost to the State of the project 
                        that will be carried out is less than the 
                        estimated cost to construct the project without 
                        the warranty plus the estimated costs that 
                        would be incurred by the State and that would 
                        otherwise be covered during the proposed 
                        warranty period if a warranty were in effect; 
                        and
                            (ii) the estimated cost to road users 
                        during the warranty period is less than such 
                        estimated cost without a warranty.
                    (B) In determining the sufficient duration of a 
                long-term limited warranty under subparagraph (A), the 
                Secretary shall establish separate sufficient durations 
                for different types of projects, such as initial 
                construction, pavement resurfacing and rehabilitation, 
                and pavement markings.
                    (C) A requirement that the limited warranty must 
                address, at a minimum--
                            (i) the responsibilities of the warranty 
                        provider;
                            (ii) the responsibilities of the Department 
                        of Transportation;
                            (iii) the terms of the warranty, including 
                        duration and, if applicable, traffic volumes 
                        and vehicle classification; and
                            (iv) performance criteria to be met to 
                        determine if maintenance is required.
            (2) Factors to consider.--In issuing the rule, the 
        Secretary may consider the following factors as requirements 
        for the warranty contract for eligibility under the pilot 
        program:
                    (A) A plan to account for inflation during the 
                warranty period.
                    (B) The frequency of performance assessments 
                performed.
                    (C) The response time for repairs.
                    (D) A plan for emergency repairs.
                    (E) Clearly set out limits of liability under the 
                warranty, if any.
                    (F) Dispute resolution provisions.
                    (G) A severability provision.
                    (H) Other provisions the Secretary considers 
                necessary for carrying out the program.
    (g) Savings.--Section 112 of title 23, United States Code, shall 
apply to the projects carried out under this section unless the 
Secretary determines that applying such section to such projects is 
inconsistent with the provisions of this section.
    (h) Reports.--Not later than 5 years after the date of enactment of 
this Act and every year thereafter, 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 outlining activities carried out under the program 
and the results of the program.

SEC. 1503. PRIVATE INVESTMENT STUDY.

    (a) Study.--Not later than 6 months after the date of enactment of 
this Act, the Secretary shall enter into an agreement with the National 
Academy of Sciences to conduct a comprehensive study of private 
investment in surface transportation infrastructure.
    (b) Matters to Be Evaluated.--Under the agreement, the National 
Academy of Sciences shall evaluate the advantages and disadvantages of 
private investment in surface transportation infrastructure and the 
impact of such investment on the ability of State and local authorities 
to use innovative financing, including--
            (1) preconstruction funding requirements;
            (2) integration of private investment in the transportation 
        planning process;
            (3) use of toll revenues by State and local authorities;
            (4) use of toll credits by State and local authorities;
            (5) requirements for debt financing instruments, 
        reimbursable expenses, and conditions on payments;
            (6) limitation on fees charged at federally funded fringe 
        and corridor parking facilities;
            (7) revenues needed to provide a reasonable rate of return 
        to private investors;
            (8) costs to users of facilities due to imposition of 
        tolls;
            (9) sales-in-lease-out arrangement of transportation 
        assets; and
            (10) such other matters as the Secretary considers 
        appropriate.
    (c) Report.--
            (1) To secretary.--Under the agreement, the National 
        Academy of Sciences shall submit to the Secretary a report on 
        the results of the study by such date as the Secretary may 
        require.
            (2) To congress.--Not later than January 1, 2007, 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 copy 
        of the report of the National Academy of Sciences, together 
        with such recommendations as the Secretary considers 
        appropriate.

SEC. 1504. HIGHWAYS FOR LIFE PILOT PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish and 
        implement a pilot program to be known as the `Highways for LIFE 
        pilot program'.
            (2) Purpose.--The purpose of the pilot program shall be to 
        advance longer-lasting highways using innovative technologies 
        and practices to accomplish the fast construction of efficient 
        and safe highways and bridges.
            (3) Objectives.--Under the pilot program, the Secretary 
        shall provide leadership and incentives to demonstrate and 
        promote state-of-the-art technologies, elevated performance 
        standards, and new business practices in the highway 
        construction process that result in improved safety, faster 
        construction, reduced congestion from construction, and 
        improved quality and user satisfaction.
    (b) Projects.--
            (1) Applications.--To be eligible to participate in the 
        pilot program, a State shall submit to the Secretary an 
        application that is in such form and contains such information 
        as the Secretary requires. Each application shall contain a 
        description of proposed projects to be carried by the State 
        under the pilot program.
            (2) Eligibility.--A proposed project shall be eligible for 
        assistance under the pilot program if the project--
                    (A) constructs, reconstructs, or rehabilitates a 
                route or connection on a Federal-aid highway eligible 
                for assistance under chapter 1 of title 23, United 
                States Code;
                    (B) uses innovative technologies, manufacturing 
                processes, financing, or contracting methods that 
                improve safety, reduce congestion due to construction, 
                and improve quality; and
                    (C) meets additional criteria as determined by the 
                Secretary.
            (3) Project proposal.--A project proposal submitted under 
        paragraph (1) shall contain--
                    (A) an identification and description of the 
                projects to be delivered;
                    (B) a description of how the projects will result 
                in improved safety, faster construction, reduced 
                congestion due to construction, user satisfaction, and 
                improved quality;
                    (C) a description of the innovative technologies, 
                manufacturing processes, financing, and contracting 
                methods that will be used for the proposed projects; 
                and
                    (D) such other information as the Secretary may 
                require.
            (4) Selection criteria.--In selecting projects for approval 
        under this section, the Secretary shall ensure that the 
        projects provide an evaluation of a broad range of technologies 
        in a wide variety of project types and shall give priority to 
        the projects that--
                    (A) address achieving the Highways for LIFE 
                performance standards for quality, safety, and speed of 
                construction;
                    (B) deliver and deploy innovative technologies, 
                manufacturing processes, financing, contracting 
                practices, and performance measures that will 
                demonstrate substantial improvements in safety, 
                congestion, quality, and cost-effectiveness;
                    (C) include innovation that will lead to change in 
                the administration of the State's transportation 
                program to more quickly construct long-lasting, high-
                quality, cost-effective projects that improve safety 
                and reduce congestion;
                    (D) are or will be ready for construction within 12 
                months of approval of the project proposal; and
                    (E) meet such other criteria as the Secretary 
                determines appropriate.
            (5) Financial assistance.--
                    (A) Funds for highways for life projects.--Out of 
                amounts made available to carry out this section for a 
                fiscal year, the Secretary may allocate to a State up 
                to 20 percent, but not more than $15,000,000, of the 
                total cost of a project approved under this section. 
                Notwithstanding any other provision of law, funds 
                allocated to a State under this subparagraph may be 
                applied to the non-Federal share of the cost of 
                construction of a project under title 23, United States 
                Code.
                    (B) Use of apportioned funds.--A State may obligate 
                not more than 10 percent of the amount apportioned to 
                the State under 1 or more of paragraphs (1), (2), (3), 
                and (4) of section 104(b) of title 23, United States 
                Code, for a fiscal year for projects approved under 
                this section.
                    (C) Increased federal share.--Notwithstanding 
                sections 120 and 129 of title 23, United States Code, 
                the Federal share payable on account of any project 
                constructed with Federal funds allocated under this 
                section, or apportioned under section 104(b) of such 
                title, to a State under such title and approved under 
                this section may amount to 100 percent of the cost of 
                construction of such project.
                    (D) Limitation on statutory construction.--Except 
                as provided in subparagraph (C), nothing in this 
                subsection shall be construed as altering or otherwise 
                affecting the applicability of the requirements of 
                chapter 1 of title 23, United States Code (including 
                requirements relating to the eligibility of a project 
                for assistance under the program and the location of 
                the project), to amounts apportioned to a State for a 
                program under section 104(b) that are obligated by the 
                State for projects approved under this subsection.
            (6) Project selections.--In the period of fiscal years 2005 
        through 2009, the Secretary shall approve at least one project 
        in each State for participation in the pilot program and for 
        financial assistance under paragraph (5) if the State submits 
        an application and the project meets the eligibility 
        requirements and selection criteria under this subsection.
    (c) Technology Partnerships.--
            (1) In general.--The Secretary may make grants or enter 
        into cooperative agreements or other transactions to foster the 
        development, improvement, and creation of innovative 
        technologies and facilities to improve safety, enhance the 
        speed of highway construction, and improve the quality and 
        durability of highways.
            (2) Federal share.--The Federal share of the cost of an 
        activity carried out under this subsection shall not exceed 80 
        percent.
    (d) Technology Transfer and Information Dissemination.--
            (1) In general.--The Secretary shall conduct a Highways for 
        LIFE technology transfer program.
            (2) Availability of information.--The Secretary shall 
        ensure that the information and technology used, developed, or 
        deployed under this subsection is made available to the 
        transportation community and the public.
    (e) Stakeholder Input and Involvement.--The Secretary shall 
establish a process for stakeholder input and involvement in the 
development, implementation, and evaluation of the Highways for LIFE 
pilot program. The process may include participation by representatives 
of State departments of transportation and other interested persons.
    (f) Project Monitoring and Evaluation.--The Secretary shall monitor 
and evaluate the effectiveness of any activity carried out under this 
section.
    (g) Contract Authority.--Funds authorized to be appropriated to 
carry out this section shall be available for obligation in the same 
manner as if the funds were apportioned under chapter 1 of title 23, 
United States Code.
    (h) State Defined.--In this section, the term `State' has the 
meaning such term has under section 101(a) of title 23, United States 
Code.

                          Subtitle F--Finance

SEC. 1601. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT.

    (a) Definitions.--Section 181 of title 23, United States Code, is 
amended--
            (1) in paragraph (3)--
                    (A) by striking `category'; and
                    (B) by striking `offered into the capital markets';
            (2) by striking paragraph (7);
            (3) by redesignating paragraphs (8) through (15) as 
        paragraphs (7) through (14), respectively;
            (4) by striking the period at the end of paragraph (8)(B) 
        (as so redesignated) and inserting a semicolon; and
            (5) in paragraph (10) (as so redesignated) by striking 
        `bond' and inserting `credit'.
    (b) Determination of Eligibility.--Section 182(a) of such title is 
amended--
            (1) by striking paragraphs (1) and (2) and inserting the 
        following:
            `(1) Inclusion in transportation plans and programs.--The 
        project shall satisfy the applicable planning and programming 
        requirements of sections 134 and 135 at such time as an 
        agreement to make available a Federal credit instrument is 
        entered into under this subchapter.
            `(2) Application.--A State, a local government, public 
        authority, public-private partnership, or any other legal 
        entity undertaking the project and authorized by the Secretary, 
        shall submit a project application to the Secretary.';
            (2) in paragraph (3)(A)(i) by striking `$100,000,000' and 
        inserting `$50,000,000';
            (3) in paragraph (3)(B) by striking `$30,000,000' and 
        inserting `$15,000,000'; and
            (4) in paragraph (4)--
                    (A) by striking `Project financing' and inserting 
                `The Federal credit instrument'; and
                    (B) by inserting before the period at the end `that 
                also secure the project obligations'.
    (c) Project Selection.--Section 182(b) of such title is amended--
            (1) in paragraph (1) by striking `criteria' the second 
        place it appears and inserting `requirements'; and
            (2) in paragraph (2)(B) by inserting `, which may be the 
        Federal credit instrument,' after `obligations'.
    (d) Secured Loans.--
            (1) Agreements.--Section 183(a)(1) of such title is 
        amended--
                    (A) in each of subparagraphs (A) and (B) by 
                inserting `of any project selected under section 602' 
                after `costs'; and
                    (B) by striking the semicolon at the end of 
                subparagraph (B) and all that follows through `under 
                section 602'.
            (2) Investment-grade rating requirement.--Section 183(a)(4) 
        of such title is amended--
                    (A) by striking `The funding' and inserting `The 
                execution'; and
                    (B) by striking the first comma and all that 
                follows through `1 rating agency'.
            (3) Terms and limitations.--Section 183(b) of such title is 
        amended--
                    (A) in paragraph (2) by inserting `the lesser of' 
                after `exceed';
                    (B) in paragraph (2) by inserting `or the amount of 
                the senior project obligations' after `costs';
                    (C) in paragraph (3)(A)(i) by inserting `that also 
                secure the senior project obligations' after `sources'; 
                and
                    (D) in paragraph (4) by striking `marketable'.
            (4) Repayment.--Section 183(c) is amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (3) and (4), respectively.
    (e) Lines of Credit.--
            (1) Terms and limitations.--Section 184(b) of such title is 
        amended--
                    (A) in paragraph (3)--
                            (i) by striking the first comma; and
                            (ii) by striking `any debt service reserve 
                        fund, and any other available reserve' and 
                        inserting `but not including reasonably 
                        required financing reserves';
                    (B) in paragraph (4)--
                            (i) by striking `marketable';
                            (ii) by striking `on which' and inserting 
                        `of execution of'; and
                            (iii) by striking `is obligated' and 
                        inserting `agreement'; and
                    (C) in paragraph (5)(A)(i) by inserting `that also 
                secure the senior project obligations' after `sources'; 
                and
            (2) Repayment.--Section 184(c) of such title is amended--
                    (A) in paragraph (2)--
                            (i) by striking `scheduled';
                            (ii) by inserting `be scheduled to' after 
                        `shall'; and
                            (iii) by striking `be fully repaid, with 
                        interest,' and inserting `conclude, with full 
                        repayment of principal and interest,'; and
                    (B) by striking paragraph (3).
    (f) Program Administration.--Section 185 of such title is amended 
to read as follows:
`Sec. 185. Program Administration
    `(a) Requirement.--The Secretary shall establish a uniform system 
to service the Federal credit instrument made available under this 
chapter.
    `(b) Fees.--The Secretary may establish fees at a level to cover 
all or a portion of the costs to the Federal Government of servicing 
the Federal credit instrument.
    `(c) Services.--The Secretary may identify a financial entity to 
assist the Secretary in servicing a Federal credit instrument. The 
services--
            `(1) shall act as the agent for the Secretary; and
            `(2) shall receive a servicing fee, subject to approval by 
        the Secretary.
    `(d) Assistance From Expert Firms.--The Secretary may retain the 
services of one or more expert firms, including counsel, in the field 
of municipal and project finance to assist in the underwriting and 
servicing of Federal credit instruments.'.
    (g) Funding.--Section 188 of such title is amended to read as 
follows:
`Sec. 188. Funding
    `(a) Funding.--
            `(1) In general.--There are authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) $130,000,000 for fiscal year 2004 and $140,000,000 for 
        each of fiscal years 2005 through 2009 to carry out this 
        chapter.
            `(2) Administrative costs.--From funds made available under 
        paragraph (1), the Secretary may use, for the administration of 
        this subchapter, not more than $3,000,000 for each of fiscal 
        years 2004 through 2009.
            `(3) Availability.--Amounts made available under paragraph 
        (1) shall remain available until expended.
    `(b) Contract Authority.--
            `(1) In general.--Notwithstanding any other provision of 
        law, approval by the Secretary of a Federal credit instrument 
        that uses funds made available under this chapter shall be 
        deemed to be acceptance by the United States of a contractual 
        obligation to fund the Federal credit instrument.
            `(2) Availability.--Amounts authorized under this section 
        for a fiscal year shall be available for obligation on October 
        1 of the fiscal year.
    `(c) Limitations on Credit Amounts.--For each of fiscal years 2004 
through 2009, principal amounts of Federal credit instruments made 
available under this chapter shall be limited to $2,600,000,000.'.

SEC. 1602. STATE INFRASTRUCTURE BANKS.

    (a) In General.--Section 189 of title 23, United States Code, is 
amended to read as follows:
`Sec. 189. State infrastructure bank program
    `(a) Definitions.--In this section, the following definitions 
apply:
            `(1) Capital project.--The term ``capital project'' has the 
        meaning such term has under section 5302 of title 49, United 
        States Code.
            `(2) Other forms of credit assistance.--The term ``other 
        forms of credit assistance'' includes any use of funds in an 
        infrastructure bank--
                    `(A) to provide credit enhancements;
                    `(B) to serve as a capital reserve for bond or debt 
                instrument financing;
                    `(C) to subsidize interest rates;
                    `(D) to insure or guarantee letters of credit and 
                credit instruments against credit risk of loss;
                    `(E) to finance purchase and lease agreements with 
                respect to transit projects;
                    `(F) to provide bond or debt financing instrument 
                security; and
                    `(G) to provide other forms of debt financing and 
                methods of leveraging funds that are approved by the 
                Secretary and that relate to the project with respect 
                to which such assistance is being provided.
            `(3) State.--The term ``State'' has the meaning such term 
        has under section 401 of this title.
            `(4) Capitalization.--The term ``capitalization'' means the 
        process used for depositing funds as initial capital into a 
        State infrastructure bank to establish the infrastructure bank.
            `(5) Cooperative agreement.--The term ``cooperative 
        agreement'' means written consent between a State and the 
        Secretary which sets forth the manner in which the 
        infrastructure bank established by the State in accordance with 
        this section will be administered.
            `(6) Loan.--The term ``loan'' means any form of direct 
        financial assistance from a State infrastructure bank that is 
        required to be repaid over a period of time and that is 
        provided to a project sponsor for all or part of the costs of 
        the project.
            `(7) Guarantee.--The term ``guarantee'' means a contract 
        entered into by a State infrastructure bank in which the bank 
        agrees to take responsibility for all or a portion of a project 
        sponsor's financial obligations for a project under specified 
        conditions.
            `(8) Initial assistance.--The term ``initial assistance'' 
        means the first round of funds that are loaned or used for 
        credit enhancement by a State infrastructure bank for projects 
        eligible for assistance under this section.
            `(9) Leverage.--The term ``leverage'' means a financial 
        structure used to increase funds in a State infrastructure bank 
        through the issuance of debt instruments.
            `(10) Leveraged.--The term ``leveraged'', as used with 
        respect to a State infrastructure bank, means that the bank has 
        total potential liabilities that exceed the capital of the 
        bank.
    `(b) Cooperative Agreements.--Subject to the provisions of this 
section, the Secretary may enter into cooperative agreements with 
States for the establishment of State infrastructure banks for making 
loans and providing other forms of credit assistance to public and 
private entities carrying out or proposing to carry out projects 
eligible for assistance under this section.
    `(d) Funding.--
            `(1) Highway account.--Subject to subsection (j), the 
        Secretary may permit a State entering into a cooperative 
        agreement under this section to establish a State 
        infrastructure bank to deposit into the highway account of the 
        bank not to exceed--
                    `(A) 10 percent of the funds apportioned to the 
                State for each of fiscal years 2005 through 2009 under 
                each of sections 104(b)(1), 104(b)(3), 104(b)(4), and 
                144; and
                    `(B) 10 percent of the funds allocated to the State 
                for each of such fiscal years under section 105.
            `(2) Transit account.--Subject to subsection (j), the 
        Secretary may permit a State entering into a cooperative 
        agreement under this section to establish a State 
        infrastructure bank, and any other recipient of Federal 
        assistance under section 5307, 5309, or 5311 of title 49, to 
        deposit into the transit account of the bank not to exceed 10 
        percent of the funds made available to the State or other 
        recipient in each of fiscal years 2005 through 2009 for capital 
        projects under each of such sections.
            `(3) Rail account.--Subject to subsection (j), the 
        Secretary may permit a State entering into a cooperative 
        agreement under this section to establish a State 
        infrastructure bank, and any other recipient of Federal 
        assistance under subtitle V of title 49, to deposit into the 
        rail account of the bank funds made available to the State or 
        other recipient in each of fiscal years 2005 through 2009 for 
        capital projects under such subtitle.
            `(4) Capital grants.--
                    `(A) Highway account.--Federal funds deposited into 
                a highway account of a State infrastructure bank under 
                paragraph (1) shall constitute for purposes of this 
                section a capitalization grant for the highway account 
                of the bank.
                    `(B) Transit account.--Federal funds deposited into 
                a transit account of a State infrastructure bank under 
                paragraph (2) shall constitute for purposes of this 
                section a capitalization grant for the transit account 
                of the bank.
                    `(C) Rail account.--Federal funds deposited into a 
                rail account of a State infrastructure bank under 
                paragraph 3 shall constitute for purposes of this 
                section a capitalization grant for the rail account of 
                the bank.
            `(5) Special rule for urbanized areas of over 200,000.--
        Funds in a State infrastructure bank that are attributed to 
        urbanized areas of a State with urbanized populations of over 
        200,000 under section 133(d)(3) may be used to provide 
        assistance with respect to a project only if the metropolitan 
        planning organization designated for such area concurs, in 
        writing, with the provision of such assistance.
            `(6) Discontinuance of funding.--If the Secretary 
        determines that a State is not implementing the State's 
        infrastructure bank in accordance with a cooperative agreement 
        entered into under subsection (b), the Secretary may prohibit 
        the State from contributing additional Federal funds to the 
        bank.
    `(e) Forms of Assistance From Infrastructure Banks.--An 
infrastructure bank established under this section may make loans or 
provide other forms of credit assistance to a public or private entity 
in an amount equal to all or a part of the cost of carrying out a 
project eligible for assistance under this section. The amount of any 
loan or other form of credit assistance provided for the project may be 
subordinated to any other debt financing for the project. Initial 
assistance provided with respect to a project from Federal funds 
deposited into an infrastructure bank under this section may not be 
made in the form of a grant.
    `(f) Eligible Projects.--Subject to subsection (e), funds in an 
infrastructure bank established under this section may be used only to 
provide assistance for projects eligible for assistance under this 
title and capital projects defined in section 5302 of title 49, and any 
other projects related to surface transportation that the Secretary 
determines to be appropriate.
    `(g) Infrastructure Bank Requirements.--In order to establish an 
infrastructure bank under this section, the State establishing the bank 
shall--
            `(1) deposit in cash, at a minimum, into each account of 
        the bank from non-Federal sources an amount equal to 25 percent 
        of the amount of each capitalization grant made to the State 
        and deposited into such account; except that, if the deposit is 
        into the highway account of the bank and the State has a non-
        Federal share under section 120(b) that is less than 25 
        percent, the percentage to be deposited from non-Federal 
        sources shall be the lower percentage of such grant;
            `(2) ensure that the bank maintains on a continuing basis 
        an investment grade rating on its debt, or has a sufficient 
        level of bond or debt financing instrument insurance, to 
        maintain the viability of the bank;
            `(3) ensure that investment income derived from funds 
        deposited to an account of the bank are--
                    `(A) credited to the account;
                    `(B) available for use in providing loans and other 
                forms of credit assistance to projects eligible for 
                assistance from the account; and
                    `(C) invested in United States Treasury securities, 
                bank deposits, or such other financing instruments as 
                the Secretary may approve to earn interest to enhance 
                the leveraging of projects assisted by the bank;
            `(4) ensure that any loan from the bank will bear interest 
        at or below market interest rates, as determined by the State, 
        to make the project that is the subject of the loan feasible;
            `(5) ensure that repayment of any loan from the bank will 
        commence not later than 5 years after the project has been 
        completed or, in the case of a highway project, the facility 
        has opened to traffic, whichever is later;
            `(6) ensure that the term for repaying any loan will not 
        exceed 30 years after the date of the first payment on the 
        loan; and
            `(7) require the bank to make an annual report to the 
        Secretary on its status no later than September 30 of each year 
        and such other reports as the Secretary may require under 
        guidelines issued to carry out this section.
    `(i) United States not Obligated.--The deposit of Federal funds 
into an infrastructure bank established under this section shall not be 
construed as a commitment, guarantee, or obligation on the part of the 
United States to any third party, nor shall any third party have any 
right against the United States for payment solely by virtue of the 
contribution. Any security or debt-financing instrument issued by the 
infrastructure bank shall expressly state that the security or 
instrument does not constitute a commitment, guarantee, or obligation 
of the United States.
    `(j) Management of Federal Funds.--Sections 3335 and 6503 of title 
31, shall not apply to funds deposited into an infrastructure bank 
under this section.
    `(k) Program Administration.--For each of fiscal years 2005 through 
2009, a State may expend not to exceed 2 percent of the Federal funds 
contributed to an infrastructure bank established by the State under 
this section to pay the reasonable costs of administering the bank.'.
    (b) Preparatory Amendments.--
            (1) Section 181.--Section 181 of such title is further 
        amended--
                    (A) by striking the section designator and heading 
                and inserting the following:
`Sec. 181. Generally applicable provisions';
                    (B) by striking `In this subchapter' and inserting 
                `(a) Definitions.--In this chapter';
                    (C) in paragraph (5) by striking `184' and 
                inserting `604';
                    (D) in paragraph (11) (as redesignated by section 
                1601(a) of this Act) by striking `183' and inserting 
                `603'; and
                    (E) by adding at the end the following:
    `(b) Treatment of Chapter.--For purposes of this title, this 
chapter shall be treated as being part of chapter 1.'.
            (2) Section 182.--Section 182(b)(2)(A)(viii) of such title 
        is further amended by inserting `and chapter 1' after `this 
        chapter'.
            (3) Section 183.--Section 183(a) of such title is further 
        amended--
                    (A) in paragraph (1) by striking `182' and 
                inserting `602'; and
                    (B) in paragraph (3) by striking `182(b)(2)(B)' and 
                inserting `602(b)(2)(B)'.
            (4) Section 184.--Section 184 of such title is further 
        amended--
                    (A) in subsection (a)(1) by striking `182' and 
                inserting `602';
                    (B) in subsection (a)(3) by striking `182(b)(2)(B)' 
                and inserting `602(b)(2)(B)'; and
                    (C) in subsection (b)(10) by striking `183' and 
                inserting `603'.
            (5) References in subchapter.--Subchapter II of chapter 1 
        of such title is amended by striking `this subchapter' each 
        place it appears and inserting `chapter'.
            (6) Subchapter headings.--Chapter 1 of such title is 
        further amended--
                    (A) by striking `subchapter i--general provisions' 
                preceding section 101; and
                    (B) by striking `subchapter ii--infrastructure 
                finance' preceding section 181.
    (c) Chapter 6.--Such title is further amended by adding at the end 
the following:

                   `Chapter 6--Infrastructure Finance

`Sec.
`601. Generally applicable provisions.
`602. Determination of eligibility and project selection.
`603. Secured loans.
`604. Lines of credit.
`605. Program administration.
`606. State and local permits.
`607. Regulations.
`608. Funding.
`609. State infrastructure bank program.'.
    (d) Moving and Redesignating.--Such title is further amended--
            (1) by redesignating sections 181 through 189 as sections 
        601 through 609, respectively;
            (2) by moving such sections from chapter 1 to chapter 6 (as 
        added by subsection (c)); and
            (3) by inserting such sections after the analysis for 
        chapter 6.
    (e) Analysis for Chapter 1 and Table of Chapters.--
            (1) Analysis for chapter 1.--The analysis for chapter 1 of 
        such title is amended--
                    (A) by striking the headings for subchapters I and 
                II; and
                    (B) by striking the items relating to sections 181 
                through 189.
            (2) Table of chapters.--The table of chapters for such 
        title is amended by inserting after the item relating to 
        chapter 5 the following:

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

SEC. 1603. INTERSTATE SYSTEM RECONSTRUCTION AND REHABILITATION TOLL 
              PILOT PROGRAM.

    (a) Establishment.--The Secretary shall establish and implement an 
Interstate System reconstruction and rehabilitation toll pilot program 
under which the Secretary, notwithstanding sections 129 and 301 of 
title 23, United States Code, may permit a State to collect tolls on a 
highway, bridge, or tunnel on the Interstate System for the purpose of 
reconstructing and rehabilitating the facility.
    (b) Limitation on Number of Facilities.--The Secretary may permit 
the collection of tolls under this section on 3 facilities on the 
Interstate System. Each of such facilities shall be located in a 
different State.
    (c) Eligibility.--To be eligible to participate in the pilot 
program, a State shall submit to the Secretary an application that 
contains, at a minimum, the following:
            (1) An identification of the facility on the Interstate 
        System proposed to be a toll facility, including the age, 
        condition, and intensity of use of the facility.
            (2) In the case of a facility that affects a metropolitan 
        area, an assurance that the metropolitan planning organization 
        designated under chapter 52 of title 49, United States Code, 
        for the area has been consulted concerning the placement and 
        amount of tolls on the facility.
            (3) An analysis demonstrating that financing the 
        reconstruction or rehabilitation of the facility with the 
        collection of tolls under the pilot program is the most 
        efficient and economical way to advance the project.
            (4) A facility management plan that includes--
                    (A) a plan for implementing the imposition of tolls 
                on the facility;
                    (B) a schedule and finance plan for the 
                reconstruction or rehabilitation of the facility using 
                toll revenues;
                    (C) a description of the public transportation 
                agency that will be responsible for implementation and 
                administration of the pilot program;
                    (D) a description of whether consideration will be 
                given to privatizing the maintenance and operational 
                aspects of the facility, while retaining legal and 
                administrative control of the portion of the Interstate 
                route; and
                    (E) such other information as the Secretary may 
                require.
    (d) Selection Criteria.--The Secretary may approve the application 
of a State under subsection (c) only if the Secretary determines that--
            (1) the State's analysis under subsection (c)(3) is 
        reasonable;
            (2) the facility has a sufficient intensity of use, age, or 
        condition to warrant the collection of tolls;
            (3) the State plan for implementing tolls on the facility 
        takes into account the interests of local, regional, and 
        interstate travelers;
            (4) the State plan for reconstruction or rehabilitation of 
        the facility using toll revenues is reasonable;
            (5) the State will develop, manage, and maintain a system 
        that will automatically collect the tolls;
            (6) in developing the State plan for implementing tolls on 
        the facility, the State includes a program to permit low income 
        drivers to pay a reduced toll amount; and
            (7) the State has given preference to the use of a public 
        toll agency with demonstrated capability to build, operate, and 
        maintain a toll expressway system meeting criteria for the 
        Interstate System.
    (e) Prohibition on Noncompete Agreements.--Before the Secretary may 
permit a State to participate in the pilot program, the State must 
enter into an agreement with the Secretary that provides that the State 
will not enter into an agreement with a private person under which the 
State is prevented from improving or expanding the capacity of public 
roads adjacent to the toll facility to address conditions resulting 
from traffic diverted to such roads from the toll facility, including--
            (1) excessive congestion;
            (2) pavement wear; and
            (3) an increased incidence of traffic accidents, injuries, 
        or fatalities.
    (f) Limitations on Use of Revenues; Audits.--Before the Secretary 
may permit a State to participate in the pilot program, the State must 
enter into an agreement with the Secretary that provides that--
            (1) all toll revenues received from operation of the toll 
        facility will be used only for--
                    (A) debt service;
                    (B) reasonable return on investment of any private 
                person financing the project; and
                    (C) any costs necessary for the improvement of and 
                the proper operation and maintenance of the toll 
                facility, including reconstruction, resurfacing, 
                restoration, and rehabilitation of the toll facility; 
                and
            (2) regular audits will be conducted to ensure compliance 
        with paragraph (1) and the results of such audits will be 
        transmitted to the Secretary.
    (g) Limitation on Use of Interstate Maintenance Funds.--During the 
term of the pilot program, funds apportioned for Interstate maintenance 
under section 104(b)(4) of title 23, United States Code, may not be 
used on a facility for which tolls are being collected under the 
program.
    (h) Program Term.--The Secretary may approve an application of a 
State for permission to collect a toll under this section only if the 
application is received by the Secretary before the last day of the 10-
year period beginning on the date of enactment of this Act.
    (i) Interstate System Defined.--In this section, the term 
`Interstate System' has the meaning such term has under section 101 of 
title 23, United States Code.
    (j) Report.--Not later than September 30, 2011, 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 traffic congestion on, pavement wear 
of, and incidence of accidents, injuries, and fatalities on public 
roads adjacent to toll facilities established under this section and 
section 1604.
    (k) Repeal.--Section 1216(b) of the Transportation Equity Act for 
the 21st Century (23 U.S.C. 129 note; 112 Stat. 212) is repealed.

SEC. 1604. INTERSTATE SYSTEM CONSTRUCTION TOLL PILOT PROGRAM.

    (a) Establishment.--The Secretary shall establish and implement an 
Interstate System construction toll pilot program under which the 
Secretary, notwithstanding sections 129 and 301 of title 23, United 
States Code, may permit a State or an interstate compact of States to 
collect tolls on a highway, bridge, or tunnel on the Interstate System 
for the purpose of constructing Interstate highways.
    (b) Limitation on Number of Facilities.--The Secretary may permit 
the collection of tolls under this section on 3 facilities on the 
Interstate System.
    (c) Eligibility.--To be eligible to participate in the pilot 
program, a State shall submit to the Secretary an application that 
contains, at a minimum, the following:
            (1) An identification of the facility on the Interstate 
        System proposed to be a toll facility.
            (2) In the case of a facility that affects a metropolitan 
        area, an assurance that the metropolitan planning organization 
        designated under chapter 52 of title 49, United States Code, 
        for the area has been consulted concerning the placement and 
        amount of tolls on the facility.
            (3) An analysis demonstrating that financing the 
        construction of the facility with the collection of tolls under 
        the pilot program is the most efficient and economical way to 
        advance the project.
            (4) A facility management plan that includes--
                    (A) a plan for implementing the imposition of tolls 
                on the facility;
                    (B) a schedule and finance plan for the 
                construction of the facility using toll revenues;
                    (C) a description of the public transportation 
                agency that will be responsible for implementation and 
                administration of the pilot program;
                    (D) a description of whether consideration will be 
                given to privatizing the maintenance and operational 
                aspects of the facility, while retaining legal and 
                administrative control of the portion of the Interstate 
                route; and
                    (E) such other information as the Secretary may 
                require.
    (d) Selection Criteria.--The Secretary may approve the application 
of a State under subsection (c) only if the Secretary determines that--
            (1) the State's analysis under subsection (c)(3) is 
        reasonable;
            (2) the State plan for implementing tolls on the facility 
        takes into account the interests of local, regional, and 
        interstate travelers;
            (3) the State plan for construction of the facility using 
        toll revenues is reasonable;
            (4) the State will develop, manage, and maintain a system 
        that will automatically collect the tolls;
            (5) in developing the State plan for implementing tolls on 
        the facility, the State includes a program to permit low-income 
        drivers to pay a reduced toll amount; and
            (6) the State has given preference to the use of a public 
        toll agency with demonstrated capability to build, operate, and 
        maintain a toll expressway system meeting criteria for the 
        Interstate System.
    (e) Prohibition on Noncompete Agreements.--Before the Secretary may 
permit a State to participate in the pilot program, the State must 
enter into an agreement with the Secretary that provides that the State 
will not enter into an agreement with a private person under which the 
State is prevented from improving or expanding the capacity of public 
roads adjacent to the toll facility to address conditions resulting 
from traffic diverted to such roads from the toll facility, including--
            (1) excessive congestion;
            (2) pavement wear; and
            (3) an increased incidence of traffic accidents, injuries, 
        or fatalities.
    (f) Limitations on Use of Revenues; Audits.--Before the Secretary 
may permit a State to participate in the pilot program, the State must 
enter into an agreement with the Secretary that provides that--
            (1) all toll revenues received from operation of the toll 
        facility will be used only for--
                    (A) debt service;
                    (B) reasonable return on investment of any private 
                person financing the project; and
                    (C) any costs necessary for the improvement of and 
                the proper operation and maintenance of the toll 
                facility, including reconstruction, resurfacing, 
                restoration, and rehabilitation of the toll facility; 
                and
            (2) regular audits will be conducted to ensure compliance 
        with paragraph (1) and the results of such audits will be 
        transmitted to the Secretary.
    (g) Limitation on Use of Interstate Maintenance Funds.--During the 
term of the pilot program, funds apportioned for Interstate maintenance 
under section 104(b)(4) of title 23, United States Code, may not be 
used on a facility for which tolls are being collected under the 
program.
    (h) Program Term.--The Secretary may approve an application of a 
State for permission to collect a toll under this section only if the 
application is received by the Secretary before the last day of the 10-
year period beginning on the date of enactment of this Act.
    (i) Interstate System Defined.--In this section, the term 
`Interstate System' has the meaning such term has under section 101 of 
title 23, United States Code.

SEC. 1605. USE OF EXCESS FUNDS.

    Section 106 of title 23, United States Code, is amended by adding 
at the end the following:
    `(i) Use of Excess Funds.--
            `(1) Audits.--A State may audit projects funded with 
        amounts apportioned under sections 104 and 144 to determine 
        whether any amounts obligated for a project are excess funds.
            `(2) Plans for use of excess funds.--If a State determines, 
        after conducting an audit under paragraph (1), that funds 
        obligated for a project are excess funds, the State may develop 
        a plan for obligating the funds for the design and construction 
        of one or more projects that are eligible for funding under the 
        program for which the funds were originally apportioned.
            `(3) Certification to the secretary.--A State that has 
        developed a plan under paragraph (2) shall transmit to the 
        Secretary a certification that the State has conducted an audit 
        under paragraph (1) and developed the plan in accordance with 
        paragraph (2).
            `(4) Implementation of plans.--After transmitting a 
        certification to the Secretary with respect to a plan under 
        paragraph (3), the State may carry out the plan.
            `(5) Applicability of requirements.--Excess funds used to 
        carry out a project under this section shall be subject to the 
        requirements of this title that are applicable to the program 
        for which the funds were originally apportioned.
            `(6) Excess funds defined.--In this subsection, the term 
        ``excess funds'' means funds obligated for a project that 
        remain available for the project after the project has been 
        completed.'.

SEC. 1606. SPECIAL RULES RELATING TO STATE INFRASTRUCTURE BANK PROGRAM.

    (a) Interstate Compacts.--Section 189 of title 23, United States 
Code, as amended by section 1602(a) of this Act, is amended by 
inserting after subsection (b) the following:
    `(c) Interstate Compacts.--
            `(1) In general.--Congress grants consent to 2 or more of 
        the States, entering into a cooperative agreement under 
        subsection (a) with the Secretary for the establishment by such 
        States of a multi-State infrastructure bank in accordance with 
        this section, to enter into an interstate compact establishing 
        such bank in accordance with this section.
            `(2) Reservation of rights.--The right to alter, amend or 
        repeal interstate compacts entered into under this subsection 
        is expressly reserved.'.
    (b) Applicability of Federal Law.--Section 189 of title 23, United 
States Code, as amended by section 1602(a) of this Act, is further 
amended by inserting after subsection (g) the following:
    `(h) Applicability of Federal Law.--
            `(1) In general.--The requirements of this title and title 
        49 that would otherwise apply to funds made available under 
        this title or such title and projects assisted with those funds 
        shall apply to--
                    `(A) funds made available under this title or such 
                title and contributed to an infrastructure bank 
                established under this section, including the non-
                Federal contribution required under subsection (g); and
                    `(B) projects assisted by the bank through the use 
                of the funds;
        except to the extent that the Secretary determines that any 
        requirement of such title (other than sections 113 and 114 of 
        this title and section 5333 of title 49), is not consistent 
        with the objectives of this section.
            `(2) Repayments.--The requirements of this title and title 
        49 shall apply to repayments from non-Federal sources to an 
        infrastructure bank from projects assisted by the bank. Such a 
        repayment shall be considered to be Federal funds.'.

                   Subtitle G--High Priority Projects

SEC. 1701. HIGH PRIORITY PROJECTS PROGRAM.

    (a) Authorization of High Priority Projects.--Section 117(a) of 
title 23, United States Code, is amended by striking `1602 of the 
Transportation Equity Act for the 21st Century' and inserting `1701 of 
the Transportation Equity Act: A Legacy for Users'.
    (b) Allocation Percentages.--Section 117(b) of such title is 
amended by striking paragraphs (1) through (6) and inserting the 
following:
            `(1) 22.4 percent of such amount shall be available for 
        obligation beginning in fiscal year 2005;
            `(2) 20.2 percent of such amount shall be available for 
        obligation beginning in fiscal year 2006;
            `(3) 19.3 percent of such amount shall be available for 
        obligation beginning in fiscal year 2007;
            `(4) 19.7 percent of such amount shall be available for 
        obligation beginning in fiscal year 2008; and
            `(5) 18.4 percent of such amount shall be available for 
        obligation beginning in fiscal year 2009.'.
    (c) Federal Share.--Section 117(c) of such title is amended by 
striking `; except' and all that follows through `cost thereof'.
    (d) Advance Construction.--Section 117(e) of such title is amended 
by striking `1602 of the Transportation Equity Act for the 21st 
Century' each place it appears and inserting `1701 of the 
Transportation Equity Act: A Legacy for Users'.
    (e) Availability of Obligation Limitation.--Section 117(g) of such 
title is amended by striking `Transportation Equity Act for the 21st 
Century' and inserting `Transportation Equity Act: A Legacy for Users'.
    (f) Federal-State Relationship.--Section 145(b) of such title is 
amended--
            (1) by inserting after `described in' the following: 
        `section 1702 of the Transportation Equity Act: A Legacy for 
        Users,';
            (2) by inserting after `for such projects by' the 
        following: `section 1101(a)(17) of the Transportation Equity 
        Act: A Legacy for Users,'; and
            (3) by striking `117 of title 23, United States Code,' and 
        inserting `section 117 of this title,'.

SEC. 1702. PROJECT AUTHORIZATIONS.

    Subject to section 117 of title 23, United States Code, the amount 
listed for each high priority project in the following table shall be 
available (from amounts made available by section 1101(a)(17) of the 
Transportation Equity Act: A Legacy for Users) for fiscal years 2005 
through 2009 to carry out each such project: To be supplied.

                  Subtitle H--Miscellaneous Provisions

SEC. 1801. BUDGET JUSTIFICATION.

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

SEC. 1802. MOTORIST INFORMATION.

    Section 124 of of title I of division F of the Consolidated 
Appropriations Act, 2004 (118 Stat. 296-297) is repealed.

SEC. 1803. MOTORIST INFORMATION CONCERNING FULL-SERVICE RESTAURANTS.

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

SEC. 1804. HIGH PRIORITY CORRIDORS ON THE NATIONAL HIGHWAY SYSTEM.

    Section 1105(c) of the Intermodal Surface Transportation Efficiency 
Act of 1991 (105 Stat. 2032) is amended--
            (1) in paragraph (23) by inserting before the period at the 
        end the following: `and the connection from Wichita, Kansas, to 
        Sioux City, Iowa, which includes I-135 from Wichita, Kansas to 
        Salina, Kansas, United States Route 81 from Saline, Kansas, to 
        Norfolk, Nebraska, Nebraska State Route 35 from Norfolk, 
        Nebraska, to South Sioux City, Nebraska, and the connection to 
        I-29 in Sioux City, Iowa';
            (2) by striking paragraph (34) and inserting the following:
            `(34) The Alameda Corridor-East and Southwest Passage, 
        California. The Alameda Corridor-East is generally described as 
        the corridor from East Los Angeles (terminus of Alameda 
        Corridor) through Los Angeles, Orange, San Bernardino, and 
        Riverside Counties, to termini at Barstow in San Bernardino 
        County and Coachella in Riverside County. The Southwest Passage 
        shall follow I-10 from San Bernardino to the Arizona State 
        line.';
            (3) by adding at the end the following:
            `(46) Interstate Route 710 between the terminus at Long 
        Beach, California, to California State Route 60.
            `(47) Interstate Route 87 from the Quebec border to New 
        York City.
            `(48) The Route 50 High Plains Corridor along the United 
        States Route 50 corridor from Newton, Kansas, to Pueblo, 
        Colorado.
            `(49) The Atlantic Commerce Corridor on Interstate Route 95 
        from Jacksonville, Florida, to Miami, Florida.
            `(50) The East-West Corridor commencing in Watertown, New 
        York, continuing northeast through New York, Vermont, New 
        Hampshire, and Maine, and terminating in Calais, Maine.
            `(51) The SPIRIT Corridor on United States Route 54 from El 
        Paso, Texas, through New Mexico, Texas, and Oklahoma to 
        Wichita, Kansas.
            `(52) The route in Arkansas running south and parallel to 
        United States Route 226 from the relocation of United States 
        Route 67 to the vicinity of United States Route 49 and United 
        States Route 63.
            `(53) United States Highway Route 6 from Interstate Route 
        70 to Interstate Route 15, Utah.
            `(54) The California Farm-to-Market Corridor, California 
        State Route 99 from south of Bakersfield to Sacramento, 
        California.'; and
            (4) by aligning paragraph (45) with paragraph (46).

SEC. 1805. ADDITIONS TO APPALACHIAN REGION.

    (a) Kentucky.--Section 14102(a)(1)(C) of title 40, United States 
Code, is amended--
            (1) by inserting `Nicholas,' after `Morgan,'; and
            (2) by inserting `Robertson,' after `Pulaski,'.
    (b) Ohio.--Section 14102(a)(1)(H) of such title is amended--
            (1) by inserting `Ashtabula,' after `Adams,';
            (2) by inserting `Fayette,' after `Coshocton,';
            (3) by inserting `Mahoning,' after `Lawrence,'; and
            (4) by inserting `Trumbull,' after `Scioto,'.
    (c) Tennessee.--Section 14102(a)(1)(K) of such title is amended--
            (1) by inserting `Giles,' after `Franklin,'; and
            (2) by inserting `Lawrence, Lewis, Lincoln,' after `Knox,'.
    (d) Virginia.--Section 14102(a)(1)(L) of such title is amended--
            (1) by inserting `Henry,' after `Grayson,'; and
            (2) by inserting `Patrick,' after `Montgomery,'.

SEC. 1806. TRANSPORTATION ASSETS AND NEEDS OF DELTA REGION.

    (a) Agreement.--Not later than 6 months after the date of enactment 
of this Act, the Secretary shall enter into an agreement with the Delta 
Regional Authority (referred to in this section as the `DRA') to 
conduct a comprehensive study of transportation assets and needs for 
all modes of transportation (including passenger and freight 
transportation) in the 8 States comprising the Delta region (Alabama, 
Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri and 
Tennessee).
    (b) Consultation.--Under the agreement, the DRA, in conducting the 
study, shall consult with the Department of Transportation, State 
transportation departments, local planning and development districts, 
local and regional governments, and metropolitan planning 
organizations.
    (c) Report.--Under the agreement, the DRA, not later than 24 months 
after the date of entry into the agreement, shall submit to the 
Secretary and the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Environment and Public 
Works of the Senate a final report on the results of the study, 
together with such recommendation as the DRA considers appropriate.
    (d) Plan.--Under the agreement, the DRA, upon completion of the 
report, shall establish a regional strategic plan to implement the 
recommendations of the report.
    (e) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated out of the Highway Trust Fund (other than 
        the Mass Transit Account), $500,000 for each of the fiscal 
        years 2005 and 2006 to carry out this section.
            (2) Contract authority.--Funds authorized by this section 
        shall be available for obligation in the same manner and to the 
        same extent as if such funds were apportioned under chapter 1 
        of title 23, United States Code; except that such funds shall 
        remain available until expended and shall not be transferable.

SEC. 1807. TOLL FACILITIES WORKPLACE SAFETY STUDY.

    (a) In General.--The Secretary shall conduct a study on the safety 
of highway toll collection facilities, including toll booths, to 
determine the safety of the facilities for the toll collectors who work 
in and around the facilities, including consideration of--
            (1) the effect of design or construction of the facilities 
        on the likelihood of vehicle collisions with the facilities;
            (2) the safety of crosswalks used by toll collectors in 
        transit to and from toll booths;
            (3) the extent of the enforcement of speed limits in the 
        vicinity of the facilities;
            (4) the use of warning devices, such as vibration and 
        rumble strips, to alert drivers approaching the facilities;
            (5) the use of cameras to record traffic violations in the 
        vicinity of the facilities;
            (6) the use of traffic control arms in the vicinity of the 
        facilities;
            (7) law enforcement practices and jurisdictional issues 
        that affect safety in the vicinity of the facilities; and
            (8) the incidence of accidents and injuries in the vicinity 
        of toll booths.
    (b) Data Collection.--As part of the study, the Secretary shall 
collect data regarding the incidence of accidents and injuries in the 
vicinity of highway toll collection facilities.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall 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 study, together with recommendations for improving 
toll facilities workplace safety.
    (d) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section, out of the 
        Highway Trust Fund (other than the Mass Transit Account), 
        $500,000 for fiscal year 2005.
            (2) Contract authority.--Funds authorized to be 
        appropriated by this section shall be available for obligation 
        in the same manner and to the same extent as if such funds were 
        apportioned under chapter 1 of title 23, United States Code; 
        expect that the Federal share of the cost of the project shall 
        be 100 percent, and such funds shall remain available until 
        expended and shall not be transferable.

SEC. 1808. PAVEMENT MARKING SYSTEMS DEMONSTRATION PROJECTS.

    (a) In General.--The Secretary shall conduct a demonstration 
project in the State of Alaska, and a demonstration project in the 
State of Tennessee, to study the safety impacts, environmental impacts, 
and cost effectiveness of different pavement marking systems and the 
effect of State bidding and procurement processes on the quality of 
pavement marking material employed in highway projects. The 
demonstration projects shall each include an evaluation of the impacts 
and effectiveness of increasing the width of pavement marking edge 
lines from 4 inches to 6 inches and an evaluation of advanced acrylic 
water-borne pavement markings.
    (b) Report.--Not later than June 30, 2009, the Secretary shall 
transmit to Congress a report on the results of the demonstration 
projects, together with findings and recommendations on methods that 
will optimize the cost-benefit ratio of the use of Federal funds on 
pavement marking.
    (c) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section, out of the 
        Highway Trust Fund (other than the Mass Transit Account), 
        $1,000,000 per fiscal year for each of the fiscal years 2005 
        through 2009.
            (2) Contract authority.--Funds authorized to be 
        appropriated by this section shall be available for obligation 
        in the same manner and to the same extent as if such funds were 
        apportioned under chapter 1 of title 23, United States Code; 
        expect that the Federal share of the cost of the demonstration 
        projects shall be 100 percent, and such funds shall remain 
        available until expended and shall not be transferable.

SEC. 1809. WORK ZONE SAFETY GRANTS.

    (a) In General.--The Secretary shall establish and implement a work 
zone safety grant program under which the Secretary may make grants to 
nonprofit organizations to provide training to prevent or reduce 
highway work zone injuries and fatalities.
    (b) Eligible Activities.--Grants may be made under the program for 
the following purposes:
            (1) Training for construction craft workers on the 
        prevention of injuries and fatalities in highway and road 
        construction.
            (2) Development of guidelines for the prevention of highway 
        work zone injuries and fatalities.
            (3) Training for State and local government transportation 
        agencies and other groups implementing guidelines for the 
        prevention of highway work zone injuries and fatalities.
    (c) Funding.--
            (1) In general.--There is authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) to carry out this section $5,000,000 for each of 
        fiscal years 2005 through 2009.
            (2) Contract authority.--Funds authorized by this 
        subsection shall be available for obligation in the same manner 
        as if the funds were apportioned under chapter 1 of title 23, 
        United States Code; except that such funds shall not be 
        transferable.
    (d) Construction Work in Alaska.--Section 114 of title 23, United 
States Code, is amended by adding at the end the following:
    `(c) Construction Work in Alaska.--
            `(1) In general.--The Secretary shall ensure that a worker 
        who is employed on a remote project for the construction of a 
        highway or portion of a highway located on a Federal-aid system 
        in the State of Alaska and who is not a domiciled resident of 
        the locality shall receive meals and lodging.
            `(2) Lodging.--The lodging under paragraph (1) shall be in 
        accordance with section 1910.142 of title 29, Code of Federal 
        Regulations (relating to temporary labor camp requirements).
            `(3) Definitions.--In this subsection, the following 
        definitions apply:
                    `(A) Remote.--The term ``remote'', as used with 
                respect to a project, means that the project is 75 
                miles or more from the United States Post Office in 
                either Fairbanks, Anchorage, Juno, or Ketchikan, 
                Alaska, or is inaccessible by road in a 2-wheel drive 
                vehicle.
                    `(B) Resident.--The term ``resident'', as used with 
                respect to a project, means a person living within 75 
                miles of the midpoint of the project for at least 12 
                months.'.

SEC. 1810. GRANT PROGRAM TO PROHIBIT RACIAL PROFILING.

    (a) Grants.--Subject to the requirements of this section, the 
Secretary shall make grants to a State that--
            (1) (A) has enacted and is enforcing a law that prohibits 
        the use of racial profiling in the enforcement of State laws 
        regulating the use of Federal-aid highways; and
            (B) is maintaining and allows public inspection of 
        statistical information for each motor vehicle stop made by a 
        law enforcement officer on a Federal-aid highway in the State 
        regarding the race and ethnicity of the driver and any 
        passengers; or
            (2) provides assurances satisfactory to the Secretary that 
        the State is undertaking activities to comply with the 
        requirements of paragraph (1).
    (b) Eligible Activities.--A grant received by a State under 
subsection (a) shall be used by the State--
            (1) in the case of a State eligible under subsection 
        (a)(1), for costs of--
                    (A) collecting and maintaining of data on traffic 
                stops;
                    (B) evaluating the results of the data; and
                    (C) developing and implementing programs to reduce 
                the occurrence of racial profiling, including programs 
                to train law enforcement officers; and
            (2) in the case of a State eligible under subsection 
        (a)(2), for costs of--
                    (A) activities to comply with the requirements of 
                subsection (a)(1); and
                    (B) any eligible activity under paragraph (1).
    (c) Racial Profiling.--To meet the requirement of subsection 
(a)(1), a State law shall prohibit, in the enforcement of State laws 
regulating the use of Federal-aid highways, a State or local law 
enforcement officer from using the race or ethnicity of the driver or 
passengers to any degree in making routine or spontaneous law 
enforcement decisions, such as ordinary traffic stops on Federal-aid 
highways. Nothing in this subsection shall alter the manner in which a 
State or local law enforcement officer considers race or ethnicity 
whenever there is trustworthy information, relevant to the locality or 
time frame, that links persons of a particular race or ethnicity to an 
identified criminal incident, scheme, or organization.
    (d) Limitations.--
            (1) Maximum amount of grants.--The total amount of grants 
        received by a State under this section in a fiscal year may not 
        exceed 5 percent of the amount made available to carry out this 
        section in the fiscal year.
            (2) Eligibility.--A State may not receive a grant under 
        subsection (a)(2) in more than 2 fiscal years.
    (e) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated 
        from the Highway Trust Fund (other than the Mass Transit 
        Account) to carry out this section $10,000,000 for each of 
        fiscal years 2005 through 2009.
            (2) Contract authority.--Funds authorized by this 
        subsection shall be available for obligation in the same manner 
        as if the funds were apportioned under chapter 1 of title 23, 
        United States Code, except the Federal share of the cost of 
        activities carried out using such funds shall be 100 percent, 
        and such funds shall remain available until expended and shall 
        not be transferable.

SEC. 1811. AMERICA'S BYWAYS RESOURCE CENTER.

    (a) In General.--The Secretary shall allocate funds made available 
to carry out this section to the America's Byways Resource Center 
established pursuant to section 1215(b)(1) of the Transportation Equity 
Act for the 21st Century (112 Stat. 209).
    (b) Technical Support and Education.--
            (1) Use of funds.--The Center shall use funds allocated to 
        the Center under this section to continue to provide technical 
        support and conduct educational activities for the national 
        scenic byways program established under section 162 of title 
        23, United States Code.
            (2) Eligible activities.--Technical support and educational 
        activities carried out under this subsection shall provide 
        local officials and organizations associated with National 
        Scenic Byways and All-American Roads with proactive, technical, 
        and on-site customized assistance, including training, 
        communications (including a public awareness series), 
        publications, conferences, on-site meetings, and other 
        assistance considered appropriate to develop and sustain such 
        byways and roads.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $3,500,000 for each of fiscal years 
2004 through 2009.
    (d) Applicability of Title 23.--Funds authorized by this section 
shall be available for obligation in the same manner as if such funds 
were apportioned under chapter 1 of title 23, United States Code; 
except that the Federal share of the cost of any project or activity 
carried out under this section shall be 100 percent and such funds 
shall remain available until expended and shall not be transferable.

SEC. 1812. TECHNICAL ADJUSTMENT.

    (a) In General.--The donee of the vessel with the Unit 
Identification Code number 13862 is deemed to be the owner of that 
vessel free and clear as of September 1, 2000.
    (b) Federal Claims.--All Federal claims arising from the donation 
or use of the vessel described in subsection (a) are permanently 
extinguished.

SEC. 1813. ROAD USER CHARGE EVALUATION PILOT PROJECT.

    (a) In General.--The Secretary shall carry out a national 
evaluation pilot project to assess how intelligent transportation 
system technology can be applied to assess mileage-based road user 
charges for the purposes of collecting revenues for the Highway Trust 
Fund.
    (b) Matters to Be Evaluated.--The following matters shall be 
evaluated under the pilot project:
            (1) Technical feasibility of imposing mileage-based road 
        user charges, including cost, reliability, and security of on-
        board and intelligent transportation systems.
            (2) Compatibility of technology for imposing such charges 
        with automobile and truck design.
            (3) Design and testing of a collection system for such 
        charges that is secure, low cost, and easy to use.
            (4) Methods of ensuring privacy of road users and assessing 
        public attitudes and views of motorists who participate in 
        field tests of the equipment and system.
    (c) Reports.--The Secretary shall transmit annual reports on the 
status of the pilot project and, not later than June 30, 2009, a final 
report on the results of the pilot project, together with findings and 
recommendations, to the Secretary of the Treasury, the Committee on 
Transportation and Infrastructure and the Committee on Ways and Means 
of the House of Representatives, and the Committee on Environment and 
Public Works and the Committee on Finance of the Senate.
    (d) Authorization of Appropriation.--
            (1) In general.--There is authorize from the Highway Trust 
        Fund (other than the Mass Transit Account) to carry out this 
        section $1,000,000 for each of fiscal years 2005 and 2006 and 
        $3,500,000 for each of fiscal years 2007, 2008, and 2009.
            (2) Contract authority.--Funds authorized under this 
        subsection shall be available for obligation in the same manner 
        as if the funds were apportioned under chapter 1 of title 23, 
        United States Code; except the Federal share of the cost of the 
        pilot project shall be 100 percent, and such funds shall remain 
        available until expended and shall not be transferable.

SEC. 1814. THOMAS P. `TIP' O'NEILL, JR. TUNNEL.

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

SEC. 1815. CONFORMING AMENDMENT FOR TRANSPORTATION PLANNING SECTIONS.

    (a) Metropolitan Planning.--Section 134 of title 23, United States 
Code is amended to read as follows:
`Sec. 134. Metropolitan planning
    `Metropolitan transportation planning programs funded under section 
104(f) shall be carried out in accordance with the metropolitan 
planning provisions of chapter 52, title 49, United States Code.'.
    (b) Statewide Planning.--Section 135 of such title is amended to 
read as follows:
`Sec. 135. Statewide planning
    `Statewide transportation planning programs funded under section 
104(f) shall be carried out in accordance with the statewide planning 
provisions of chapter 52, title 49, United States Code.'.

SEC. 1816. DISTRIBUTION OF METROPOLITAN PLANNING FUNDS WITHIN STATES.

    Section 104(f)(4) of title 23, United States Code, is amended by 
adding at the end the following: `Such distribution of funds to 
metropolitan planning organizations shall be made within 30 days of the 
date of receipt of such funds from the Secretary.'.

SEC. 1817. TREATMENT OF OFF RAMP.

    The Harbor Boulevard off ramp from Interstate Route 405 in Costa 
Mesa, California, is deemed to satisfy the requirements of title 23, 
United States Code, that govern the approval of the placement of ramps 
off of a Federal-aid highway.

SEC. 1818. LOAN FORGIVENESS.

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

SEC. 1819. LEAD AGENCY DESIGNATION.

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

SEC. 1820. USE OF DEBRIS FROM DEMOLISHED BRIDGES AND OVERPASSES.

    The project agreement for a Federal-aid highway project shall 
provide that any debris from demolition of a bridge or overpass that is 
on the Federal-aid highway must be made available for beneficial public 
use by Federal, State, and local governments. Any additional cost 
associated with making available the debris shall be borne by the 
recipient of the debris.

SEC. 1821. HUBZONE PROGRAM.

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

SEC. 1822. TECHNICAL AMENDMENTS TO TEA 21 PROJECTS.

    The table contained in section 1602 of the Transportation Equity 
Act for the 21st Century (112 Stat. 257) is amended--
            (1) in item number 35 by adding `and for other related 
        purposes' after `Yard';
            (2) in item number 78 by striking `Third' and all that 
        follows through `Bridge' and inserting `Bayview Transportation 
        Improvements Project';
            (3) in item number 312 by inserting `through construction' 
        after `engineering';
            (4) in item number 800 by striking `Fairview Township' and 
        inserting `or other projects selected by the York County, 
        Pennsylvania MPO';
            (5) in item number 820 by striking `Conduct' and all that 
        follows through `interchange' and inserting `Conduct a 
        transportation needs study and make improvements to I-75 
        interchanges in the Grayling area';
            (6) in item number 897 by striking `Upgrade' and all that 
        follows through `interchange' and inserting `Engineering and 
        construction of a new access road to a development near 
        Interstate 57 and 167th Street in Country Club Hills';
            (7) in item number 1121 by striking `Construct' and all 
        that follows through `Douglaston Parkway' and inserting 
        `Provide landscaping along both sides of the Grand Central 
        Parkway from 188th Street to 172nd Street';
            (8) in item 1225 by striking `Construct SR 9 bypass' and 
        inserting `Study, design, and construct transportation 
        solutions for SR 9 corridor'; and
            (9) in item number 1447 strike `Extend' and all that 
        follows through `Valparaiso' and insert `Design and 
        construction of interchange at I-65 and 109th Avenue, Crown 
        Point'.

SEC. 1823. NATIONAL WORK ZONE SAFETY INFORMATION CLEARINGHOUSE.

    (a) Grants.--The Secretary shall make grants for fiscal years 2005 
through 2009 to a national nonprofit foundation for the operation of 
the National Work Zone Safety Information Clearinghouse, authorized by 
section 358(b)(2) of Public Law 104-59, created for the purpose of 
assembling and disseminating, by electronic and other means, 
information relating to improvement of roadway work zone safety.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account) to carry out this section $1,000,000 for each of fiscal years 
2005 through 2009.
    (c) Contract Authority.--Funds authorized by this subsection shall 
be available for obligation in the same manner as if the funds were 
apportioned under chapter 1 of title 23, United States Code, except the 
Federal share of the cost of activities carried out using such funds 
shall be 100 percent, and such funds shall remain available until 
expended and shall not be transferable.

SEC. 1824. TRANSPORTATION CONFORMITY.

    (a) Conformity Redeterminations.--Section 176(c)(2) of the Clean 
Air Act (42 U.S.C. 7506(c)) is amended by adding at the end the 
following:
            `(E) The appropriate metropolitan planning organization 
        shall redetermine conformity for existing transportation plans 
        and programs not later than 2 years after the date on which the 
        Administrator--
                    `(i) finds a motor vehicle emissions budget in a 
                submitted implementation plan to be adequate in 
                accordance with section 93.118(e)(4) of title 40, Code 
                of Federal Regulations (as in effect on October 1, 
                2003); or
                    `(ii) approves an implementation plan under section 
                110(k) or promulgates an implementation plan under 
                section 110(c) that establishes a motor vehicle 
                emissions budget where there was no prior budget or 
                that establishes a budget that significantly varies 
                from any motor vehicle emissions budget in effect 
                pursuant to an adequacy determination in accordance 
                with section 93.118(e)(4) of title 40, Code of Federal 
                Regulations (as in effect on October 1, 2003) or as 
                part of an implementation plan approved or promulgated 
                under section 110.'.
    (b) Frequency of Conformity Determination Updates.--Section 
176(c)(4) of the Clean Air Act (42 U.S.C. 7506(c)(4)) is amended 
follows:
            (1) By striking `one year after the date of enactment of 
        the Clean Air Act Amendments of 1990' and inserting `one year 
        after the date of enactment of the Transportation Equity Act: A 
        Legacy for Users' .
            (2) In subparagraph (B) by amending clause (ii) to read as 
        follows:
            `(ii) provide that conformity determinations for 
        transportation plans and programs be determined every 4 years 
        in areas designated as nonattainment or redesignated to 
        attainment (unless a metropolitan planning organization as 
        designated in section 5213(b) of title 49, United States Code, 
        elects to update a transportation plan and program more 
        frequently or is required to determine conformity in accordance 
        with paragraph (2)(E)).'.
    (c) Time Horizon for Conformity Determinations in Nonattainment 
Areas.--Subsection (c) of section 176 of the Clean Air Act (42 U.S.C. 
7506(c)) is amended by adding the following new paragraph at the end 
thereof:
            `(7) Time horizon for determinations.--Each conformity 
        determination required under this section for a transportation 
        plan under section 5213(g) of title 49 of the United States 
        Code shall require a demonstration of conformity during the 
        period ending on either the final year of the transportation 
        plan or, at the election of the metropolitan planning 
        organization and an air pollution control agency, as defined in 
        section 302(b), if such air pollution control agency is 
        responsible for developing plans or controlling air pollution 
        within the area covered by the transportation plan on the later 
        of the following dates (hereinafter in this paragraph referred 
        to as the ``final transportation conformity date''):
                    `(A) The tenth year of the transportation plan.
                    `(B) The attainment date set forth in the 
                applicable implementation plan for the air pollutant 
                concerned.
                    `(C) The year after the completion of a regionally 
                significant project, if the project will be programmed 
                in the transportation improvement program or requires 
                approval before the subsequent conformity 
                determination.
        Such conformity determination shall be accompanied by a 
        regional emissions analysis for any years of the transportation 
        plan that extend beyond such final conformity date. In the case 
        in which an area has a revision to an implementation plan under 
        section 175A(b) and the Administrator has found the motor 
        vehicle emissions budgets from that revision to be adequate in 
        accordance with section 93.118(e)(4) of title 40, Code of 
        Federal Regulations (as in effect October 1, 2003), or has 
        approved the revision, the demonstration of conformity (at the 
        election of the metropolitan planning organization and an air 
        pollution control agency, as defined in section 302(b), if such 
        air pollution control agency is responsible for developing 
        plans or controlling pollution within the area covered by the 
        transportation plan) and the metropolitan planning organization 
        shall be required to extend only through the last year of the 
        implementation plan required under section 175A(b).'.
    (d) Substitution of Transportation Control Measures.--Subsection 
176(c) of the Clean Air Act (42 U.S.C. 7506(c)) is amended by adding at 
the end the end the following new paragraph:
            `(8)(A) Transportation control measures that are specified 
        in an implementation plan may be replaced in the implementation 
        plan with substitute transportation control measures if--
                    `(i) the substitute measures achieve equivalent or 
                greater emission reductions than the control measures 
                to be replaced, as determined by the Administrator;
                    `(ii) the substitute measures utilize an emissions 
                impact analysis that is consistent with the current 
                methodology used for evaluating replaced control 
                measures in the implementation plan;
                    `(iii) the substitute control measures are 
                implemented not later than the date on which such 
                emission reductions are necessary to achieve the 
                purpose of the implementation plan;
                    `(iv) the substitute control measures were 
                developed with reasonable public notice and the 
                opportunity for comments; and
                    `(v) the metropolitan planning organization finds 
                that adequate funding is included in the transportation 
                improvement program to ensure timely implementation of 
                the substitute control measures.
            `(B) After the requirements of subparagraph (A) are met, a 
        State may adopt the substitute measures in the applicable 
        implementation plan within a reasonable period of time.
            `(C) The substitution of a transportation control measure 
        in accordance with this paragraph shall not be contingent on 
        the existence of any provision in the applicable implementation 
        plan that expressly permits such substitution.
            `(D) The substitution of a transportation control measure 
        in accordance with this paragraph shall not require--
                    `(i) a new conformity determination for the 
                transportation plan, or
                    `(ii) a revision of the applicable implementation 
                plan.
            `(E) A control measure that is being replaced by a 
        substitute control measure under this paragraph shall remain in 
        effect until the substitute control measure is adopted.
            `(F) Adoption of a substitute control measure shall 
        constitute rescission of the previously applicable control 
        measure.
Transportation control measures may be added to an implementation plan 
subject to subparagraphs (B), (C), and (D), on the same basis as if 
such measures were substitute transportation control measures if such 
measures do not increase emissions for which limitations have been 
established in an implementation plan, and such measures meet the 
requirements of clauses (ii), (iii), (iv), and (v) of subparagraph 
(A).'.
    (e) Lapse of Conformity.--Subsection (c) of section 176 of the 
Clean Air Act (42 U.S.C. 7506(c)) is amended by adding the following 
new paragraphs at the end thereof:
            `(9) Lapse of conformity.--If a conformity determination 
        required under this subsection for a transportation plan under 
        section 5213(g) of title 49 of the United States Code or a 
        transportation improvement program under section 5213(h) of 
        title 49 of the United States Code is not made by the 
        applicable deadline and such failure is not corrected by 
        additional measures to either reduce motor vehicle emissions 
        sufficient to demonstrate compliance with the requirements of 
        this subsection within 12 months after such deadline or other 
        measures sufficient to correct such failures, the 
        transportation plan shall lapse.
            `(10) Lapse.--The term ``lapse'' means that the conformity 
        determination for a transportation plan or transportation 
        improvement program has expired, and thus there is no currently 
        conforming transportation plan or transportation improvement 
        program.'.

SEC. 1825. ELIGIBILITY TO PARTICIPATE IN WESTERN ALASKA COMMUNITY 
              DEVELOPMENT QUOTA PROGRAM.

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

SEC. 1826. METROPOLITAN REGIONAL FREIGHT AND PASSENGER TRANSPORTATION 
              STUDY.

    (a) In General.--The Secretary shall enter into an agreement with a 
partnership comprised of 2 institutions of higher learning to study 
metropolitan regional freight and passenger transportation and system-
wide performance utilizing an interdisciplinary technique of supply 
chain management, geographic information systems, and urban/suburban 
planning and management.
    (b) Contents of Study.--The study under this section shall include, 
at a minimum, evaluations of--
            (1) best practices for regional transportation operations 
        and management;
            (2) relationships among truck trip generation and economic 
        activities;
            (3) spatial analysis of the distribution of economic 
        activity and transportation investments;
            (4) congestion mitigation and management of air quality 
        through the concentration of modeling and technology;
            (5) supply chain management and geographic information 
        systems; and
            (6) infrastructure management and renewal.
    (c) Federal Share.--The Federal share of the cost of the study 
under this section shall be 100 percent.
    (d) Funding.--Of the amounts made available to carry out section 
1305 for each of fiscal years 2005 through 2009, $1,800,000 shall be 
made available to carry out this section.

SEC. 1827. INTERMODAL TRANSPORTATION FACILITY EXPANSION.

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

SEC. 1828. ADVANCED TRUCK STOP ELECTRIFICATION SYSTEM.

    (a) Definition.--Section 101(a) of title 23, United States Code, as 
amended by section 1202 of this Act, is further amended by adding at 
the end the following:
            `(40) Advanced truck stop electrification system.--The term 
        ``advanced truck stop electrification system'' means a 
        stationary system that delivers heat, air conditioning, 
        electricity, and communications, and is capable of providing 
        verifiable evidence of use of those services, to a heavy-duty 
        vehicle and any occupants of the heavy-duty vehicle without 
        relying on components mounted onboard the heavy-duty vehicle 
        for delivery of those services.'.
    (b) Eligibility Under STP.--Section 133(b)(6) of such title is 
amended by inserting `, including advanced truck stop electrification 
systems' before the period at the end.

SEC. 1829. TECHNOLOGY.

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

SEC. 1830. EXTENSION OF PUBLIC TRANSIT VEHICLE EXEMPTION FROM AXLE 
              WEIGHT RESTRICTIONS.

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

SEC. 1831. MOTORCYCLIST ADVISORY COUNCIL.

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

SEC. 1832. SHARING OF MONETARY RECOVERIES.

    Notwithstanding any other provision of law, monetary judgments 
accruing to the Government from judgments in Federal criminal 
prosecutions and civil proceedings pertaining to fraud in Federally 
funded highway and public transportation projects and programs shall be 
treated as follows:
            (1) Any amount less than or equal to the single damages 
        incurred as the result of such fraud shall be credited to the 
        Federal account from which the funds for the project or program 
        that is at issue in the fraud came, except to the extent that 
        such Federal account has been credited as the result of any 
        judgment in favor of a grant recipient.
            (2) Any amount in excess of the amount credited pursuant to 
        paragraph (1) shall be shared with the State or other recipient 
        involved if--
                    (A) the State or other recipient enters into a 
                legally binding agreement with the Secretary to use the 
                funds for a purpose eligible for Federal assistance 
                under title 23 or chapter 53 of title 49, United States 
                Code, as the case may be;
                    (B) the amount to be shared with the State or other 
                recipient is determined by the Attorney General, in 
                consultation with the Secretary; and
                    (C) the Attorney General, in consultation with the 
                Secretary, determines that the fraud did not occur as a 
                result of negligent oversight or actual involvement in 
                the fraud by the State or other recipient or any senior 
                official of the State or other recipient.

SEC. 1833. ELIGIBILITY UNDER CMAQ.

    Section 149(b)(4) of title 23, United States Code is amended by 
inserting `, including advanced truck stop electrification systems,' 
after `facility or program'.

SEC. 1834. SPECIAL RULE FOR FISCAL YEAR 2004.

    In any case in which an amount is authorized to be appropriated, 
made available, allocated, set aside, taken down, or subject to an 
obligation limitation for fiscal year 2004 for a program, project, or 
activity in any provision of this title, including an amendment made by 
this title, that is different than the amount authorized to be 
appropriated, made available, allocated, set aside, taken down, or 
subject to an obligation limitation for fiscal year 2004 for such 
program, project, or activity in any provision of the Surface 
Transportation Extension Act of 2004, Part V (Public Law 108-310), 
including any amendment made by such Act, the amount referred to in 
such Act shall be the amount authorized to be appropriated, made 
available, allocated, set aside, taken down, or subject to an 
obligation limitation.

                        TITLE II--HIGHWAY SAFETY

SEC. 2001. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account):
            (1) Highway safety programs.--For carrying out section 402 
        of title 23, United States Code, $164,027,000 for fiscal year 
        2004, $163,680,000 for fiscal year 2005, $229,000,000 for 
        fiscal year 2006, $232,000,000 for fiscal year 2007, 
        $238,000,000 for fiscal year 2008, and $245,000,000 for fiscal 
        year 2009.
            (2) Occupant protection incentive grants.--For carrying out 
        section 405 of title 23, United States Code, $19,882,000 for 
        fiscal year 2004, $19,840,000 for fiscal year 2005, 
        $136,000,000 for fiscal year 2006, $139,000,000 for fiscal year 
        2007, $143,000,000 for fiscal year 2008, and $150,000,000 for 
        fiscal year 2009.
            (3) Alcohol-impaired driving countermeasures incentive 
        grant program.--For carrying out section 410 of title 23, 
        United States Code, $39,764,000 for fiscal year 2004, 
        $39,680,000 for fiscal year 2005, $129,000,000 for fiscal year 
        2006, $133,000,000 for fiscal year 2007, $138,000,000 for 
        fiscal year 2008, and $144,000,000 for fiscal year 2009.
            (4) State traffic safety information improvements.--For 
        carrying out section 412 of title 23, United States Code, 
        $30,000,000 for fiscal year 2006, $35,000,000 for fiscal year 
        2007, $40,000,000 for fiscal year 2008, and $40,000,000 for 
        fiscal year 2009.
            (5) National driver register.--For carrying out chapter 303 
        of title 49, United States Code, by the National Highway 
        Traffic Safety Administration, $3,976,000 for fiscal year 2004, 
        $3,968,000 for fiscal year 2005, and $4,000,000 for each of 
        fiscal years 2006 through 2009.
            (6) High visibility enforcement program.--For carrying out 
        section 2005 of this title, $15,000,000 for each of fiscal 
        years 2006 through 2009.
    (b) Applicability of Title 23.--Except as otherwise provided in 
chapter 4 of title 23, United States Code, and this title, amounts made 
available under subsection (a) for each of fiscal years 2004 through 
2009 shall be available for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, United States Code.
    (c) Transfers.--In each fiscal year, the Secretary may transfer any 
amounts remaining available under paragraph (2), (3), or (4) of 
subsection (a) to the amounts made available under any other of such 
paragraphs in order to ensure, to the maximum extent possible, that 
each State receives the maximum incentive funding for which the State 
is eligible under sections 405, 410, and 412 of title 23, United States 
Code.

SEC. 2002. OCCUPANT PROTECTION INCENTIVE GRANTS.

    (a) General Authority.--Section 405(a) of title 23, United States 
Code, is amended--
            (1) in paragraph (2) by striking `Transportation Equity Act 
        for the 21st Century' and inserting `Transportation Equity Act: 
        A Legacy for Users';
            (2) in paragraph (3) by striking `1997' and inserting 
        `2003'; and
            (3) in paragraphs (4)(A), (4)(B), and (4)(C) by inserting 
        after `years' the following: `beginning after September 30, 
        2003,'.
    (b) Grant Eligibility.--Section 405(b) of title 23, United States 
Code, is amended by striking `A State shall become eligible' and 
inserting the following: `A State shall be eligible for a grant under 
this section if the State has a seat belt usage rate of 85 percent or 
greater as of the date of the grant, as determined by the Secretary. A 
State shall also become eligible'.
    (c) Grant Amounts.--Section 405(c) of title 23, United States Code, 
is amended--
            (1) by striking `25 percent' and inserting `100 percent'; 
        and
            (2) by striking `1997' and inserting `2003'.

SEC. 2003. ALCOHOL-IMPAIRED DRIVING COUNTERMEASURES.

    (a) General Authority.--Section 410(a) of title 23, United States 
Code, is amended--
            (1) in paragraph (2) by striking `Transportation Equity Act 
        for the 21st Century' and inserting `Transportation Equity Act: 
        A Legacy for Users';
            (2) in paragraph (3) by striking `1997' and inserting 
        `2003'; and
            (3) in paragraphs (4)(A), (4)(B), and (4)(C) by inserting 
        after `years' the following: `beginning after September 30, 
        2003,'.
    (b) Basic Grant a.--Section 410(b)(1) of title 23, United States 
Code, is amended--
            (1) by striking `A State shall become eligible' and 
        inserting the following: `A State shall be eligible for a grant 
        under this paragraph if the State has an alcohol-related 
        fatality rate per 100,000,000 vehicle miles traveled of 0.5 or 
        less as of the date of the grant, as determined by the 
        Secretary using the Fatality Analysis Reporting System of the 
        National Highway Traffic Safety Administration. A State shall 
        also become eligible';
            (2) by striking `at least 5 of' and inserting `at least 6 
        of';
            (3) in subparagraph (A)--
                    (A) by striking `and' at the end of clause (i)(II);
                    (B) by striking the period at the end of clause 
                (ii) and inserting a semicolon; and
                    (C) by adding at the end the following:
                            `(iii) the suspension referred to under 
                        clause (i)(I) may allow an individual to 
                        operate a motor vehicle, after the 15-day 
                        period beginning on the date of the suspension, 
                        to and from employment, school, or an alcohol 
                        treatment program if an ignition interlock 
                        device is installed on each of the motor 
                        vehicles owned or operated, or both, by the 
                        individual; and
                            `(iv) the suspension and revocation 
                        referred to under clause (i)(II) may allow an 
                        individual to operate a motor vehicle, after 
                        the 45-day period beginning on the date of the 
                        suspension or revocation, to and from 
                        employment, school, or an alcohol treatment 
                        program if an ignition interlock device is 
                        installed on each of the motor vehicles owned 
                        or operated, or both, by the individual.';
            (4) in subparagraph (B)--
                    (A) by striking `may include the issuance' and 
                inserting the following:
 `may include--
                            `(i) the issuance'; and
                    (B) by striking the period at the end and inserting 
                `; and' and the following:
                            `(ii) a program provided by a nonprofit 
                        organization for training point of sale 
                        personnel concerning, at a minimum, the 
                        following:
                                    `(I) the clinical effects of 
                                alcohol;
                                    `(II) methods of preventing second 
                                party sales of alcohol;
                                    `(III) recognizing signs of 
                                intoxication;
                                    `(IV) methods to prevent underage 
                                drinking;
                                    `(V) Federal, State, and local laws 
                                that are relevant to such personnel.';
            (5) by striking subparagraph (F) and inserting the 
        following:
                    `(F) Outreach program.--A judicial and 
                prosecutorial education, training, and outreach program 
                that provides information on the appropriateness and 
                effectiveness of sentencing options.'; and
            (6) by adding at the end the following:
                    `(H) Self-sustaining drunk driving prevention 
                program.--A self-sustaining drunk driving prevention 
                program under which a significant portion of the fines 
                or surcharges collected from individuals apprehended 
                and fined for operating a motor vehicle while under the 
                influence of alcohol are returned to those communities 
                that have comprehensive programs for the prevention of 
                such operations of motor vehicles.
                    `(I) Programs for effective alcohol 
                rehabilitation.--A program for effective inpatient and 
                outpatient alcohol rehabilitation based on mandatory 
                assessment and appropriate treatment for repeat 
                offenders described in subparagraph (A)(i)(II).'.
    (c) Basic Grant B.--Section 410(b) of title 23, United States Code, 
is amended--
            (1) by striking paragraph (2) and inserting the following:
            `(2) Basic grant b.--A State shall become eligible for a 
        grant under this paragraph if the State--
                    `(A) has an alcohol-related fatality rate per 
                100,000,000 vehicle miles traveled of 0.8 or more as of 
                the date of the grant, as determined by the Secretary 
                using the Fatality Analysis Reporting System of the 
                National Highway Traffic Safety Administration; and
                    `(B) establishes, subject to such requirements as 
                the Secretary may prescribe, a task force to evaluate 
                and recommend changes to the State's drunk driving 
                programs.'; and
            (2) in paragraph (3)--
                    (A) by striking `25 percent' and inserting `100 
                percent'; and
                    (B) by striking `1997' and inserting `2003'.
    (d) Supplemental Grants.--Section 410(c) of title 23, United States 
Code, is amended to read as follows:
    `(c) Allocation for Basic Grants B.--Not more than $20,000,000 per 
fiscal year of amounts made available to carry out this section shall 
be available for making grants under subsection (b)(2).'.
    (e) Effective Date.--The amendments made by this section shall take 
effect on September 30, 2005.

SEC. 2004. STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.

    (a) In General.--Chapter 4 of title 23, United States Code, is 
amended by adding at the end the following:
`Sec. 412. State traffic safety information system improvements
    `(a) General Authority.--
            `(1) Authority to make grants.--Subject to the requirements 
        of this section, the Secretary shall make grants to States that 
        adopt and implement effective programs to--
                    `(A) improve the timeliness, accuracy, 
                completeness, uniformity, integration, and 
                accessibility of the safety data of the State that is 
                needed to identify priorities for national, State, and 
                local highway and traffic safety programs;
                    `(B) evaluate the effectiveness of efforts to make 
                such improvements;
                    `(C) link these State data systems, including 
                traffic records, with other data systems within the 
                State, such as systems that contain medical, roadway, 
                and economic data; and
                    `(D) improve the compatibility and interoperability 
                of the data systems of the State with national data 
                systems and data systems of other States and enhance 
                the ability of the Secretary to observe and analyze 
                national trends in crash occurrences, rates, outcomes, 
                and circumstances.
            `(2) Use of grants.--A State may use a grant received under 
        this section only to implement such programs.
            `(3) Model data elements.--The Secretary, in consultation 
        with States and other appropriate parties, shall determine the 
        model data elements necessary to observe and analyze State and 
        national trends in crash occurrences, rates, outcomes, and 
        circumstances. In order to become eligible for a grant under 
        this section, a State shall certify to the Secretary the 
        State's adoption and use of such model data elements.
            `(4) Maintenance of effort.--No grant may be made to a 
        State under this section in any fiscal year unless the State 
        enters into such agreements with the Secretary as the Secretary 
        may require ensuring that the State will maintain its aggregate 
        expenditures from all other sources for highway safety data 
        programs at or above the average level of such expenditures in 
        the 2 fiscal years preceding the date of enactment of this 
        section.
            `(5) Federal share.--The Federal share of the cost of 
        implementing in a fiscal year a program of a State pursuant to 
        paragraph (1) shall not exceed 80 percent.
    `(b) First-Year Grants.--To be eligible for a first-year grant 
under this section, a State shall demonstrate to the satisfaction of 
the Secretary that the State has--
            `(1) established a highway safety data and traffic records 
        coordinating committee with a multidisciplinary membership that 
        includes, among others, managers, collectors, and users of 
        traffic records and public health and injury control data 
        systems; and
            `(2) developed a multiyear highway safety data and traffic 
        records system strategic plan that addresses existing 
        deficiencies in the State's highway safety data and traffic 
        records system and is approved by the highway safety data and 
        traffic records coordinating committee and--
                    `(A) specifies how existing deficiencies in the 
                State's highway safety data and traffic records system 
                were identified;
                    `(B) prioritizes, based on the identified highway 
                safety data and traffic records system deficiencies, 
                the highway safety data and traffic records system 
                needs and goals of the State, including the activities 
                described in subsection (a)(1);
                    `(C) identifies performance-based measures by which 
                progress toward those goals will be determined;
                    `(D) specifies how the grant funds and any other 
                funds of the State will be used to address needs and 
                goals identified in the multiyear plan; and
                    `(E) includes a current report on the progress in 
                implementing the multiyear plan that documents progress 
                toward the specified goals.
    `(c) Succeeding-Year Grants.--
            `(1) Eligibility.--A State shall be eligible for a grant 
        under this section in a fiscal year succeeding the first fiscal 
        year in which the State receives a grant under subsection (b) 
        if the State, to the satisfaction of the Secretary--
                    `(A) submits an updated multiyear plan that meets 
                the requirements of subsection (b)(2);
                    `(B) certifies that its highway safety data and 
                traffic records coordinating committee continues to 
                operate and supports the multiyear plan;
                    `(C) specifies how the grant funds and any other 
                funds of the State will be used to address needs and 
                goals identified in the multiyear plan;
                    `(D) demonstrates measurable progress toward 
                achieving the goals and objectives identified in the 
                multiyear plan; and
                    `(E) includes a current report on the progress in 
                implementing the multiyear plan.
    `(d) Grant Amounts.--
            `(1) In general.--The amount of a grant made to a State for 
        a fiscal year under this section shall equal an amount 
        determined by multiplying--
                    `(A) the amount appropriated to carry out this 
                section for such fiscal year; by
                    `(B) the ratio that the funds apportioned to the 
                State under section 402 for fiscal year 2003 bears to 
                the funds apportioned to all States under section 402 
                for fiscal year 2003.
            `(2) Minimum amount.--Notwithstanding subparagraph (A)--
                    `(A) a State eligible for a first-year grant under 
                this section shall not receive less than $300,000; and
                    `(B) a State eligible for a succeeding-year grant 
                under this section shall not receive less than 
                $500,000.
    `(e) Administrative Expenses.--Funds authorized to be appropriated 
to carry out this section in a fiscal year shall be subject to a 
deduction not to exceed 5 percent for the necessary costs of 
administering the provisions of this section.
    `(f) Applicability of Chapter 1.--The provisions contained in 
section 402(d) shall apply to this section.'.
    (b) Conforming Amendment.--The analysis for chapter 4 of title 23, 
United States Code, is amended by adding at the end the following:

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

SEC. 2005. HIGH VISIBILITY ENFORCEMENT PROGRAM.

    The Secretary shall establish a program to support national 
impaired driving mobilization and enforcement efforts and national 
safety belt mobilization and enforcement, including the purchase of 
national paid advertisement (including production and placement) to 
support such efforts.

SEC. 2006. MOTORCYCLE CRASH CAUSATION STUDY.

    (a) In General.--Using funds made available to carry out section 
403 of title 23, United States Code, the Secretary shall conduct a 
study of the causes of motorcycle crashes.
    (b) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall transmit to Congress a report on the 
results of the study.

SEC. 2007. CHILD SAFETY AND CHILD BOOSTER SEAT INCENTIVE GRANTS.

    (a) General Authority.--Subject to the requirements of this 
section, the Secretary shall make grants to States that enact or have 
enacted and are enforcing a law requiring that children riding in 
passenger motor vehicles who are too large to be secured in a child 
safety seat be secured in a child restraint that meets the requirements 
prescribed by the Secretary under section 3 of Anton's Law (116 Stat. 
2772).
    (b) Maintenance of Effort.--No grant may be made to a State under 
this section in a fiscal year unless the State enters into such 
agreements with the Secretary as the Secretary may require to ensure 
that the State will maintain its aggregate expenditures from all other 
sources for child safety seat and child booster seat programs at or 
above the average level of such expenditures in its 2 fiscal years 
preceding the date of enactment of this Act.
    (c) Federal Share.--The Federal share of the cost of implementing 
and enforcing in a fiscal year a law adopted by a State under 
subsection (a) shall not exceed--
            (1) for the first 3 fiscal years for which a State receives 
        a grant under this section, 75 percent; and
            (2) for the fourth fiscal year for which a State receives a 
        grant under this section, 50 percent.
    (d) Grant Eligibility.--
            (1) In general.--A State is eligible for a grant under this 
        section if the State has in effect and enforces a law described 
        in subsection (a).
            (2) Maximum period of eligibility.--No State may receive 
        grants under this section in more than 4 fiscal years beginning 
        after September 30, 2005.
    (e) Eligible Uses of Funds.--A State may use a grant under this 
section only to carry out child safety seat and child booster seat 
programs, including the following:
            (1) A program to educate the public concerning the proper 
        use and installation of child safety seats and child booster 
        seats.
            (2) A program to train child passenger safety 
        professionals, police officers, fire and emergency medical 
        personnel, and educators concerning all aspects of the use of 
        child safety seats and booster seats.
            (3) A program to purchase and distribute child safety 
        seats, child booster seats, and other appropriate passenger 
        motor vehicle child restraints to families that cannot 
        otherwise afford such seats or restraints.
            (4) A program to support enforcement of child restraint 
        laws.
    (f) Grant Amount.--The amount of a grant to a State for a fiscal 
year under this section may not exceed 25 percent of the amount 
apportioned to the State for fiscal year 2003 under section 402 of 
title 23, United States Code.
    (g) Administrative Expenses.--Funds authorized to be appropriated 
to carry out this section in a fiscal year shall be subject to a 
deduction not to exceed 2.5 percent for the necessary costs of 
administering the provisions of this section.
    (h) Applicability of Chapter 1.--The provisions contained in 
section 402(d) of title 23, United States Code, apply to this section.
    (i) Report.--Each State to which a grant is made under this section 
shall transmit to the Secretary a report documenting the manner in 
which grant amounts were obligated and expended and identifying the 
specific programs carried out with or supported by grant funds. The 
report shall be in a form prescribed by the Secretary and may be 
combined with other State grant reporting requirements under of chapter 
4 of title 23, United States Code.
    (j) Definitions.--In this section, the following definitions apply:
            (1) Child restraint.--The term `child restraint' means any 
        product designed to provide restraint to a child (including 
        booster seats and other products used with a lap and shoulder 
        belt assembly) that meets applicable Federal motor vehicle 
        safety standards prescribed by the National Highway Traffic 
        Safety Administration.
            (2) Child safety seat.--The term `child safety seat' has 
        the meaning such term has in section 405(f) of title 23, United 
        States Code.
            (3) Passenger motor vehicle.--The term `passenger motor 
        vehicle' has the meaning such term has in such section 405(f).
            (4) State.--The term `State' has the meaning such term has 
        in section 101 (a) of such title.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section from the Highway Trust Fund 
(other than the Mass Transit Account) $6,000,000 for each of fiscal 
years 2006 through 2008 and $7,000,000 for fiscal year 2009.

SEC. 2008. MOTORCYCLIST SAFETY.

    (a) Authority to Make Grants.--Subject to the requirements of this 
section, the Secretary shall make grants to States that adopt and 
implement effective programs to reduce the number of single- and multi-
vehicle crashes involving motorcyclists.
    (b) Maintenance of Effort.--No grant may be made to a State under 
this section in a fiscal year unless the State enters into such 
agreements with the Secretary as the Secretary may require to ensure 
that the State will maintain its aggregate expenditures from all the 
other sources for motorcyclist safety training programs and 
motorcyclist awareness programs at or above the average level of such 
expenditures in its 2 fiscal years preceding the date of enactment of 
this Act.
    (c) Maximum Period of Eligibility.--No State may receive grants 
under this section in more than 4 fiscal years beginning after 
September 30, 2005.
    (d) Federal Share.--The Federal share of the cost of implementing 
and enforcing, as appropriate, in a fiscal year a program adopted by a 
State in accordance with subsection (a) shall not exceed--
            (1) for the first 3 years for which a State receives a 
        grant under this section, 75 percent; and
            (2) for the fourth fiscal year for which a State receives a 
        grant under this section, 50 percent.
    (e) Grant Eligibility.--
            (1) In general.--A State becomes eligible for a grant under 
        this section by adopting or demonstrating to the satisfaction 
        of the Secretary--
                    (A) for the first fiscal year for which the State 
                will receive a grant under this section, at least 1 of 
                the 6 criteria listed in paragraph (2);
                    (B) for the second, third, and fourth fiscal years 
                for which the State will receive a grant under this 
                section, at least 2 of the 6 criteria listed in 
                paragraph (2); and
                    (C) for any subsequent fiscal years for which the 
                State will receive a grant under this section, at least 
                3 of the 6 criteria listed in paragraph (2).
            (2) Criteria.--The criteria for eligibility for a grant 
        under this section are the following:
                    (A) Motorcycle rider training courses.--An 
                effective motorcycle rider training course that is 
                offered throughout the State, provides a formal program 
                of instruction in accident avoidance and other safety-
                oriented operational skills to motorcyclists, and may 
                include innovative training opportunities to meet 
                unique regional needs.
                    (B) Motorcyclists awareness program.--An effective 
                statewide program to enhance motorist awareness of the 
                presence of motorcyclists on or near roadways and safe 
                driving practices that avoid injuries to motorcyclists.
                    (C) Reduction of fatalities and crashes involving 
                motorcycles.--A reduction for the preceding calendar 
                year in the number of motorcycle fatalities and the 
                rate of motor vehicle crashes involving motorcycles in 
                the State (expressed as a function of 10,000 motorcycle 
                registrations).
                    (D) Impaired driving program.--Implementation of a 
                statewide program to reduce impaired driving, including 
                specific measures to reduce impaired motorcycle 
                operation.
                    (E) Reduction of fatalities and accidents involving 
                impaired motorcyclists.--A reduction for the preceding 
                calendar year in the number of fatalities and the rate 
                of reported crashes involving alcohol- or drug-impaired 
                motorcycle operators (expressed as a function of 10,000 
                motorcycle registrations).
                    (F) Fees collected from motorcyclists.--All fees 
                collected by the State from motorcyclists for the 
                purposes of funding motorcycle training and safety 
                programs are used for motorcycle training and safety 
                programs.
    (f) Eligible Uses.--
            (1) In general.--A State may use funds from a grant under 
        this section only for motorcyclist safety training and 
        motorcyclist awareness programs, including--
                    (A) improvements to motorcyclist safety training 
                curricula;
                    (B) improvements in program delivery of motorcycle 
                training to both urban and rural areas, including--
                            (i) procurement or repair of practice 
                        motorcycles;
                            (ii) instructional materials;
                            (iii) mobile training units; and
                            (iv) leasing or purchase of facilities for 
                        classroom instruction and closed-course skill 
                        training;
                    (C) measures designed to increase the recruitment 
                or retention of motorcyclist safety training 
                instructors; and
                    (D) public awareness, public service announcements, 
                and other outreach programs to enhance motorcyclist 
                awareness.
            (2) Suballocations of funds.--An agency that receives a 
        grant under this section may suballocate funds from the grant 
        to a nonprofit organization incorporated in that State to carry 
        out under this section.
    (g) Definitions.--In this section, the following definitions apply:
            (1) Motorcyclist safety training.--The term `motorcyclist 
        safety training' means a formal program of instruction that--
                    (A) provides accident avoidance and other safety-
                oriented operational skills to motorcyclists; and
                    (B) is approved for use in a State by the 
                designated State authority having jurisdiction over 
                motorcyclist safety issues.
            (2) Motorcyclist awareness.--The term `motorcyclist 
        awareness' means individual or collective awareness of--
                    (A) the presence of motorcycles on or near 
                roadways; and
                    (B) safe driving practices that avoid injury to 
                motorcyclists.
            (3) Motorcyclist awareness program.--The term `motorcyclist 
        awareness program' means an informational or public awareness 
        program designed to enhance motorcyclist awareness that is 
        developed by or in coordination with the designated State 
        authority having jurisdiction over motorcyclist safety issues.
            (4) State.--The term `State' has the same meaning such term 
        has in section 101(a) of title 23, United States Code.
    (h) Maximum Grant Amount.--The amount of a grant made to a State 
for a fiscal year under this section may not exceed 25 percent of the 
amount apportioned to the State for fiscal year 2003 under section 402 
of title 23, United States Code.
    (i) Administrative Expenses.--Funds authorized to be appropriated 
to carry out this section in a fiscal year shall be subject to a 
deduction by the Secretary not to exceed 5 percent for the necessary 
costs of administering the provisions of this section.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section from the Highway Trust Fund 
(other than the Mass Transit Account) $6,000,000 for each of fiscal 
years 2006 through 2008 and $7,000,000 for fiscal year 2009.
    (k) Applicability of Title 23.--Funds authorized under this section 
shall be available for obligation in the same manner as if the funds 
were apportioned under chapter 1 of title 23, United States Code; 
except that such funds shall not be transferable.

SEC. 2009. DRIVER FATIGUE.

    Section 402(a) of title 23, United States Code, is amended--
            (1) by striking `and' before `(6)'; and
            (2) by inserting before the period the following: `; and 
        (7) to reduce deaths and injuries resulting from persons 
        driving motor vehicles while fatigued'.

SEC. 2010. AUTHORIZATION OF APPROPRIATIONS FOR HIGHWAY SAFETY RESEARCH 
              AND DEVELOPMENT.

    (a) In General.--There is authorized to be appropriated out of the 
Highway Trust Fund (other than the Mass Transit Account) for carrying 
out section 403 of title 23, United States Code, $71,575,000 for fiscal 
year 2004, $71,424,000 for fiscal year 2005, and $75,000,000 for each 
of fiscal years 2006 through 2009.
    (b) Applicability of Title 23.--Except as otherwise provided in 
chapter 4 of title 23, United States Code, and this title, amounts made 
available under subsection (a) for each of fiscal years 2004 through 
2009 shall be available for obligation in the same manner as if such 
funds were apportioned under chapter 1 of title 23, United States Code.

SEC. 2011. SAFETY DATA.

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

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

SEC. 3001. SHORT TITLE; AMENDMENTS TO TITLE 49, UNITED STATES CODE.

    (a) Short Title.--This title may be cited as the `Federal Public 
Transportation Act of 2005'.
    (b) Amendments to Title 49, United States Code.--Except as 
otherwise specifically provided, whenever in this title an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision of law, the reference shall be considered to 
be made to a section or other provision of title 49, United States 
Code.

SEC. 3002. POLICIES, FINDINGS, AND PURPOSES.

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

SEC. 3003. DEFINITIONS.

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

SEC. 3004. METROPOLITAN PLANNING.

    Section 5303 is amended to read as follows:
`Sec. 5303. Metropolitan planning
    `(a) In General.--Grants made under sections 5307, 5308, 5309, 
5310, 5311, 5316, and 5317 shall be carried out in accordance with the 
metropolitan planning provisions of chapter 52.
    `(b) Certification.--
            `(1) In general.--The Secretary shall ensure and certify 
        that each metropolitan planning organization in each 
        transportation management area is carrying out its 
        responsibilities under applicable laws of the United States. 
        The Secretary may make the certification only if the 
        organization is complying with chapter 52 and other applicable 
        requirements of laws of the United States and the organization 
        and chief executive officer have approved a transportation 
        improvement program for the area.
            `(2) Limitation on withholding certification.--The 
        Secretary may not withhold certification based on the policies 
        and criteria a metropolitan planning organization or mass 
        transportation grant recipient establishes under section 
        5306(a) for deciding the feasibility of private enterprise 
        participation.'.

SEC. 3005. STATEWIDE PLANNING.

    (a) In General.--Section 5304 is amended to read as follows:
`Sec. 5304. Statewide planning
    `Grants made under sections 5307, 5308, 5309, 5310, 5311, 5316, and 
5317 shall be carried out in accordance with the statewide planning 
provisions of chapter 52.'.
    (b) Conforming Amendment.--The analysis for chapter 53 is amended 
by striking the item relating to section 5304 and inserting the 
following:

`5304. Statewide planning.'.

SEC. 3006. PLANNING PROGRAMS.

    (a) In General.--Section 5305 is amended to read as follows:
`Sec. 5305. Planning programs
    `(a) State Defined.--In this section the term ``State'' means a 
State of the United States, the District of Columbia, and Puerto Rico.
    `(b) General Authority.--
            `(1) Assistance.--Under criteria to be established by the 
        Secretary, the Secretary may provide assistance for--
                    `(A) the development of transportation plans and 
                programs;
                    `(B) planning, engineering, designing, and 
                evaluating a public transportation project; and
                    `(C) for other technical studies.
            `(2) Grants, agreements, and contracts.--The Secretary may 
        provide assistance under paragraph (1)--
                    `(A) by making grants to States, authorities of 
                States, metropolitan planning organizations, and local 
                governmental authorities; or
                    `(B) by making agreements with other departments, 
                agencies, and instrumentalities of the Government.
            `(3) Eligible activities.--Activities eligible for 
        assistance under paragraph (1) include the following:
                    `(A) Studies related to management, planning, 
                operations, capital requirements, and economic 
                feasibility.
                    `(B) Evaluating previously financed projects.
                    `(C) Peer reviews and exchanges of technical data, 
                information, assistance, and related activities in 
                support of planning and environmental analyses among 
                metropolitan planning organizations and other 
                transportation planners.
                    `(D) Other similar and related activities 
                preliminary to and in preparation for constructing, 
                acquiring, or improving the operation of facilities and 
                equipment.
    `(c) Purpose.--To the extent practicable, the Secretary shall 
ensure that amounts appropriated or made available under section 5338 
to carry out this section and sections 5303 and 5304 are used to 
support balanced and comprehensive transportation planning that 
considers the relationships among land use and all transportation 
modes, without regard to the programmatic source of the planning 
amounts.
    `(d) Metropolitan Planning Program.--
            `(1) Apportionment to states.--
                    `(A) In general.--The Secretary shall apportion 80 
                percent of the amounts made available under subsection 
                (g)(1) among the States to carry out sections 5303 and 
                5306 in the ratio that--
                            `(i) the population of urbanized areas in 
                        each State, as shown by the latest available 
                        decennial census of population; bears to
                            `(ii) the total population of urbanized 
                        areas in all States, as shown by that census.
                    `(B) Minimum apportionment.--Notwithstanding 
                subparagraph (A), a State may not receive less than 0.5 
                percent of the amount apportioned under this paragraph.
            `(2) Allocation to mpo's.--Amounts apportioned to a State 
        under paragraph (1) shall be made available within 30 days 
        after allocation to metropolitan planning organizations in the 
        State designated under this section under a formula that--
                    `(A) considers population of urbanized areas;
                    `(B) provides an appropriate distribution for 
                urbanized areas to carry out the cooperative processes 
                described in this section;
                    `(C) the State develops in cooperation with the 
                metropolitan planning organizations; and
                    `(D) the Secretary approves.
            `(3) Supplemental amounts.--
                    `(A) In general.--The Secretary shall apportion 20 
                percent of the amounts made available under subsection 
                (g)(1) among the States to supplement allocations made 
                under paragraph (1) for metropolitan planning 
                organizations.
                    `(B) Formula.--The Secretary shall apportion 
                amounts referred to in subparagraph (A) under a formula 
                that reflects the additional cost of carrying out 
                planning, programming, and project selection 
                responsibilities under sections 5303 and 5306 in 
                certain urbanized areas.
    `(e) State Planning and Research Program.--
            `(1) Apportionment to states.--
                    `(A) In general.--The Secretary shall apportion the 
                amounts made available under subsection (g)(2) among 
                the States for grants and contracts to carry out 
                sections 5303 through 5306, 5312, 5315, and 5322 in the 
                ratio that--
                            `(i) the population of urbanized areas in 
                        each State, as shown by the latest available 
                        decennial census; bears to
                            `(ii) the population of urbanized areas in 
                        all States, as shown by that census.
                    `(B) Minimum apportionment.--Notwithstanding 
                subparagraph (A), a State may not receive less than 0.5 
                percent of the amount apportioned under this paragraph.
            `(2) Supplemental amounts.--A State, as the State considers 
        appropriate, may authorize part of the amount made available 
        under this subsection to be used to supplement amounts made 
        available under subsection (d).
    `(f) Government's Share of Costs.--The Government's share of the 
cost of an activity funded using amounts made available under this 
section may not exceed 80 percent of the cost of the activity unless 
the Secretary determines that it is in the interests of the Government 
not to require a State or local match.
    `(g) Allocation of Funds.--Of the funds made available by or 
appropriated to carry out this section under section 5338(c) for fiscal 
years 2004 through 2009--
            `(1) 82.72 percent shall be available for the metropolitan 
        planning program under subsection (d); and
            `(2) 17.28 percent shall be available to carry out 
        subsection (e).
    `(h) Availability of Funds.--Funds apportioned under this section 
in a State shall remain available for obligation in that State for a 
period of 3 years after the last day of the fiscal year for which the 
funds are authorized. Any amounts so apportioned that remain 
unobligated at the end of that period shall be reapportioned among the 
States.'.
    (b) Conforming Amendment.--The analysis for chapter 53 is amended 
by striking the item relating to section 5305 and inserting the 
following:

`5305. Planning programs.'.

SEC. 3007. PRIVATE ENTERPRISE PARTICIPATION.

    (a) Section Heading.--Section 5306 is amended by striking the 
section heading and inserting the following:
`Sec. 5306. Private enterprise participation in planning; relationship 
              to other limitations'.
    (b) Conforming Amendment.--The analysis for chapter 53 is amended 
by striking the item relating to section 5306 and inserting the 
following:

`5306. Private enterprise participation in planning; relationship to 
                            other limitations.'.

SEC. 3008. URBANIZED AREA FORMULA GRANTS.

    (a) Technical Amendments.--Section 5307 is amended--
            (1) by striking subsections (h) and (k); and
            (2) by redesignating subsections (i), (j), (l), (m), and 
        (n) as subsections (h), (i), (j), (k), and (l), respectively.
    (b) Definitions.--Section 5307(a)(2)(A) is amended--
            (1) by striking `a person' and inserting `an entity'; and
            (2) by striking `section 5305(a) of this title' and 
        inserting `chapter 52'.
    (c) General Authority.--Section 5307(b) is amended--
            (1) by striking paragraph (1) and inserting the following:
            `(1) Grants.--The Secretary may make grants under this 
        section for--
                    `(A) capital projects and associated capital 
                maintenance items;
                    `(B) planning;
                    `(C) transit enhancements; and
                    `(D) operating costs of equipment and facilities 
                for use in public transportation in an urbanized area 
                with a population of less than 200,000.';
            (2) in the heading to paragraph (2) by striking `fiscal 
        years 2003 and 2004 and for the period of october 1, 2004, 
        through may 31, 2005' and inserting `fiscal years 2003 through 
        2005';
            (3) in paragraph (2)(A) by striking `fiscal year 2003' and 
        all that follows through `2005' and inserting `fiscal years 
        2003, 2004, and 2005,';
            (4) in paragraph (3) by striking `section 5305(a) of this 
        title' and inserting `chapter 52'; and
            (5) in paragraph (3)(A) by striking `section 5303 of this 
        title' and inserting `chapter 52'.
    (d) Grant Recipient Requirements.--Section 5307(d)(1) is amended--
            (1) in subparagraph (A) by inserting `, including safety 
        and security aspects of the program' after `program';
            (2) in subparagraph (H) by striking `sections 5301(a) and 
        (d), 5303-5306, and 5310(a)-(d) of this title' and inserting 
        `subsections (a) and (d) of section 5301 and sections 5303 
        through 5306';
            (3) in subparagraph (I) by striking `and' at the end; and
            (4) by adding at the end the following:
                    `(K) in the case of a recipient for an urbanized 
                area with a population of at least 200,000--
                            `(i) will expend one percent of the amount 
                        the recipient receives each fiscal year under 
                        this section for projects for transit 
                        enhancements, as defined in section 5302(a); 
                        and
                            `(ii) will submit an annual report listing 
                        projects carried out in the preceding fiscal 
                        year with those funds; and'.
    (e) Government's Share of Costs.--Section 5307(e) is amended to 
read as follows:
    `(e) Government's Share of Costs.--
            `(1) Capital projects.--A grant for a capital project 
        (including associated capital maintenance items) under this 
        section shall be for 80 percent of the net project cost of the 
        project. The recipient may provide additional local matching 
        amounts.
            `(2) Operating expenses.--A grant for operating expenses 
        under this section may not exceed 50 percent of the net project 
        cost of the project.
            `(3) Remainder.--The remainder of the net project cost 
        shall be provided--
                    `(A) in cash from sources other than amounts of the 
                Government or revenues from providing public 
                transportation (excluding revenues derived from the 
                sale of advertising and concessions);
                    `(B) from an undistributed cash surplus, a 
                replacement or depreciation cash fund or reserve, or 
                new capital; and
                    `(C) from amounts received under a service 
                agreement with a State or local social service agency 
                or private social service organization.'.
    (f) Reviews, Audits, and Evaluations.--Section 5307(h)(1)(A) (as 
redesignated by subsection (a) of this section) is amended by striking 
`shall' and inserting `may'.
    (g) Relationship to Other Laws.--Section 5307(l) (as redesignated 
by subsection (a) of this section) is amended--
            (1) by striking paragraph (1);
            (2) by redesignating paragraph (2) as paragraph (1);
            (3) by inserting `This chapter.--' before `Sections 5302';
            (4) by adding at the end the following:
            `(2) Chapter 15 of title 5.--The provision of assistance 
        under this chapter shall not be construed as bringing within 
        the application of chapter 15 of title 5 any nonsupervisory 
        employee of a public transportation system (or any other agency 
        or entity performing related functions) to which such chapter 
        is otherwise inapplicable.'; and
            (5) by aligning the left margin of paragraph (1) (as so 
        redesignated) with paragraph (2) (as added by paragraph (4) of 
        this subsection).
    (h) Treatment.--At the end of section 5307, add the following:
    `(m) Treatment.--For purposes of this section, the United States 
Virgin Islands shall be treated as an urbanized area, as defined in 
section 5302.'.

SEC. 3009. CLEAN FUELS FORMULA GRANT PROGRAM.

    Section 5308 is amended to read as follows:
`Sec. 5308. Clean fuels formula grant program
    `(a) Definitions.--In this section, the following definitions 
apply:
            `(1) Clean fuel bus.--The term ``clean fuel bus'' means a 
        passenger vehicle used to provide public transportation that--
                    `(A) is powered by--
                            `(i) compressed natural gas;
                            `(ii) liquefied natural gas;
                            `(iii) biodiesel fuels;
                            `(iv) batteries;
                            `(v) alcohol-based fuels;
                            `(vi) hybrid electric;
                            `(vii) fuel cell;
                            `(viii) clean diesel, to the extent allowed 
                        under this section; or
                            `(ix) other low or zero emissions 
                        technology; and
                    `(B) the Administrator of the Environmental 
                Protection Agency has certified sufficiently reduces 
                harmful emissions.
            `(2) Eligible project.--The term ``eligible project''--
                    `(A) means a project in a nonattainment or 
                maintenance area described in paragraph (4)(A) for--
                            `(i) purchasing or leasing clean fuel 
                        buses, including buses that employ a 
                        lightweight composite primary structure;
                            `(ii) constructing or leasing clean fuel 
                        buses or electrical recharging facilities and 
                        related equipment for such buses; or
                            `(iii) improving existing public 
                        transportation facilities to accommodate clean 
                        fuel buses; and
                    `(B) at the discretion of the Secretary, may 
                include a project located in a nonattainment or 
                maintenance area described in paragraph (3)(A) relating 
                to clean fuel, biodiesel, hybrid electric, or zero 
                emissions technology buses that exhibit equivalent or 
                superior emissions reductions to existing clean fuel or 
                hybrid electric technologies.
            `(3) Maintenance area.--The term ``maintenance area'' has 
        the meaning such term has under section 101 of title 23.
            `(4) Recipient.--
                    `(A) In general.--The term ``recipient'' means a 
                designated recipient (as defined in section 5307(a)(2)) 
                for an area that, and a recipient for an urbanized area 
                with a population of less than 200,000 that--
                            `(i) is designated as a nonattainment area 
                        for ozone or carbon monoxide under section 
                        107(d) of the Clean Air Act (42 U.S.C. 
                        7407(d)); or
                            `(ii) is a maintenance area for ozone or 
                        carbon monoxide.
                    `(B) Smaller urbanized areas.--In the case of an 
                urbanized area with a population of less than 200,000, 
                the State in which the area is located shall act as the 
                recipient for the area under this section.
    `(b) Authority.--The Secretary shall make grants in accordance with 
this section to recipients to finance eligible projects.
    `(c) Apportionment of Funds.--
            `(1) Formula.--The Secretary shall apportion among 
        recipients amounts made available to carry out this section for 
        a fiscal year. Of such amounts--
                    `(A) two-thirds shall be apportioned to recipients 
                serving urbanized areas with a population of at least 
                1,000,000, of which--
                            `(i) 50 percent shall be apportioned so 
                        that each such recipient receives a grant under 
                        this section in an amount equal to the ratio 
                        that--
                                    `(I) the number of vehicles in the 
                                bus fleet of the recipient, weighted by 
                                severity of nonattainment for the area 
                                served by the recipient; bears to
                                    `(II) the total number of vehicles 
                                in the bus fleets of all such 
                                recipients, weighted by severity of 
                                nonattainment for all areas served by 
                                such recipients; and
                            `(ii) 50 percent shall be apportioned so 
                        that each such recipient receives a grant under 
                        this section in an amount equal to the ratio 
                        that--
                                    `(I) the number of bus passenger 
                                miles (as defined in section 5336(c)) 
                                of the recipient, weighted by severity 
                                of nonattainment of the area served by 
                                the recipient; bears to
                                    `(II) the total number of bus 
                                passenger miles (as defined in section 
                                5336(c)) of all such recipients, 
                                weighted by severity of nonattainment 
                                of all areas served by such recipients; 
                                and
                    `(B) one-third shall be apportioned to recipients 
                serving urbanized areas with a population of less than 
                1,000,000, of which--
                            `(i) 50 percent shall be apportioned so 
                        that each such recipient receives a grant under 
                        this section in an amount equal to the ratio 
                        that--
                                    `(I) the number of vehicles in the 
                                bus fleet of the recipient, weighted by 
                                severity of nonattainment for the area 
                                served by the recipient; bears to
                                    `(II) the total number of vehicles 
                                in the bus fleets of all such 
                                recipients, weighted by severity of 
                                nonattainment for all areas served by 
                                such recipients; and
                            `(ii) 50 percent shall be apportioned so 
                        that each such recipient receives a grant under 
                        this section in an amount equal to the ratio 
                        that--
                                    `(I) the number of bus passenger 
                                miles (as defined in section 5336(c)) 
                                of the recipient, weighted by severity 
                                of nonattainment of the area served by 
                                the recipient; bears to
                                    `(II) the total number of bus 
                                passenger miles (as defined in section 
                                5336(c)) of all such recipients, 
                                weighted by severity of nonattainment 
                                of all areas served by such recipients.
            `(2) Weighting of severity of nonattainment.--
                    `(A) In general.--For purposes of paragraph (1), 
                subject to subparagraph (B), the number of buses in the 
                bus fleet, or the number of passenger miles, shall be 
                multiplied by a factor of--
                            `(i) 1.0 if, at the time of the 
                        apportionment, the area is a maintenance area 
                        for ozone or carbon monoxide;
                            `(ii) 1.1 if, at the time of the 
                        apportionment, the area is classified as a 
                        marginal ozone nonattainment area under subpart 
                        2 of part D of title I of the Clean Air Act (42 
                        U.S.C. 7511 et seq.);
                            `(iii) 1.2 if, at the time of the 
                        apportionment, the area is classified as a 
                        moderate ozone nonattainment area under subpart 
                        2 of such part;
                            `(iv) 1.3 if, at the time of the 
                        apportionment, the area is classified as a 
                        serious ozone nonattainment area under subpart 
                        2 of such part;
                            `(v) 1.4 if, at the time of the 
                        apportionment, the area is classified as a 
                        severe ozone nonattainment area under subpart 2 
                        of such part; or
                            `(vi) 1.5 if, at the time of the 
                        apportionment, the area is classified as an 
                        extreme ozone nonattainment area under subpart 
                        2 of such part.
                    `(B) Additional adjustment for carbon monoxide 
                areas.--If, in addition to being classified as a 
                nonattainment or maintenance area for ozone under 
                subpart 2 of such part, the area was also classified 
                under subpart 3 of such part as a nonattainment area 
                for carbon monoxide, the weighted nonattainment or 
                maintenance area fleet and passenger miles for the 
                recipient, as calculated under subparagraph (A), shall 
                be further multiplied by a factor of 1.2.
    `(d) Clean Diesel Buses.--Not more than 35 percent of the amount 
made available by or appropriated under section 5338 in each fiscal 
year to carry out this section may be made available to fund clean 
diesel buses.
    `(e) Grant Requirements.--
            `(1) In general.--A grant under this section shall be 
        subject to the requirements of section 5307.
            `(2) Government's share of costs for certain projects.--
        Section 5323(i) applies to projects carried out under this 
        section.
    `(f) Availability of Funds.--Any amount made available or 
appropriated under this section--
            `(1) shall remain available to a project for 1 year after 
        the fiscal year for which the amount is made available or 
        appropriated; and
            `(2) that remains unobligated at the end of the period 
        described in paragraph (1) shall be added to the amount made 
        available in the following fiscal year.'.

SEC. 3010. CAPITAL INVESTMENT GRANTS.

    (a) Section Heading.--Section 5309 is amended by striking the 
section heading and inserting the following:
`Sec. 5309. Capital investment grants'.
    (b) Loans for Real Property Interests.--Section 5309 is amended--
            (1) in subsections (a)(1) and (a)(2) by striking `and 
        loans';
            (2) by striking subsections (b) and (c); and
            (3) by redesignating subsection (d) as subsection (b).
    (c) Project as Part of Approved Program of Projects.--Section 
5309(b) (as redesignated by subsection (b) of this section) is 
amended--
            (1) by striking `Except as provided in subsections (b)(2) 
        and (e) of the section, the' and inserting `The'; and
            (2) by striking `or loan'.
    (d) Criteria and Funding.--Section 5309 is amended by striking 
subsections (e) through (p) and inserting the following:
    `(c) Major Capital Investment Grants of $75,000,000 or More.--
            `(1) Full funding grant agreement.--A major new fixed 
        guideway capital project financed under this subsection shall 
        be carried out through a full funding grant agreement. The 
        Secretary shall enter into a full funding grant agreement based 
        on the evaluations and ratings required under this subsection. 
        The Secretary shall not enter into a full funding grant 
        agreement for a project unless that project is authorized for 
        final design and construction.
            `(2) Approval of grants.--The Secretary may approve a grant 
        under this section for a major new fixed guideway capital 
        project only if the Secretary, based upon evaluations and 
        considerations set forth in paragraph (3), determines that the 
        proposal is--
                    `(A) based on the results of an alternatives 
                analysis and preliminary engineering;
                    `(B) justified based on a comprehensive review of 
                its mobility improvements, environmental benefits, cost 
                effectiveness, operating efficiencies, and transit 
                supportive policies, and existing land use; and
                    `(C) supported by an acceptable degree of local 
                financial commitment (including evidence of stable and 
                dependable financing sources) to construct, maintain, 
                and operate the system or extension.
            `(3) Considerations.--
                    `(A) Results of alternatives analysis and 
                preliminary engineering.--In evaluating a proposed 
                project for purposes of making the finding required by 
                paragraph (2)(A), the Secretary shall analyze and 
                consider the results of the alternatives analysis and 
                preliminary engineering for the project.
                    `(B) Project justification.--In evaluating a 
                proposed project for purposes of making the finding 
                required by paragraph (2)(B), the Secretary shall--
                            `(i) consider the direct and indirect costs 
                        of relevant alternatives;
                            `(ii) consider factors such as congestion 
                        relief, improved mobility, air pollution, noise 
                        pollution, energy consumption, and all 
                        associated ancillary and mitigation costs 
                        necessary to carry out each alternative 
                        analyzed and recognize reductions in local 
                        infrastructure costs achieved through compact 
                        land use development;
                            `(iii) identify and consider public 
                        transportation supportive existing land use 
                        policies and future patterns and the cost of 
                        suburban sprawl;
                            `(iv) consider the degree to which the 
                        project increases the mobility of the public 
                        transportation dependent population or promotes 
                        economic development;
                            `(v) consider population density and 
                        current transit ridership in the corridor;
                            `(vi) consider the technical capability of 
                        the grant recipient to construct the project;
                            `(vii) adjust the project justification to 
                        reflect differences in local land, 
                        construction, and operating costs; and
                            `(viii) consider other factors that the 
                        Secretary determines appropriate to carry out 
                        this chapter.
                    `(C) Local financial commitment.--In evaluating a 
                proposed project under paragraph (2)(C), the Secretary 
                shall require that--
                            `(i) the proposed project plan provides for 
                        the availability of contingency amounts that 
                        the Secretary determines to be reasonable to 
                        cover unanticipated cost increases;
                            `(ii) each proposed local source of capital 
                        and operating financing is stable, reliable, 
                        and available within the proposed project 
                        timetable; and
                            `(iii) local resources are available to 
                        operate the overall proposed public 
                        transportation system (including essential 
                        feeder bus and other services necessary to 
                        achieve the projected ridership levels) without 
                        requiring a reduction in existing public 
                        transportation services to operate the proposed 
                        project.
                    `(D) Assessment of local financing.--In assessing 
                the stability, reliability, and availability of 
                proposed sources of local financing under paragraph 
                (2)(C), the Secretary shall consider--
                            `(i) existing grant commitments;
                            `(ii) the degree to which financing sources 
                        are dedicated to the purposes proposed;
                            `(iii) any debt obligation that exists or 
                        is proposed by the recipient for the proposed 
                        project or other public transportation purpose; 
                        and
                            `(iv) the extent to which the project has a 
                        local financial commitment that exceeds the 
                        required non-Federal share of the cost of the 
                        project.
            `(4) Evaluation and rating of projects.--A proposed project 
        under this subsection may advance from alternatives analysis to 
        preliminary engineering, and may advance from preliminary 
        engineering to final design and construction, only if the 
        Secretary finds that the project meets the requirements of this 
        section and there is a reasonable likelihood that the project 
        will continue to meet such requirements. In making the 
        findings, the Secretary shall evaluate and rate the project as 
        ``highly recommended'', ``recommended'', or ``not recommended'' 
        based on the results of alternatives analysis, the project 
        justification criteria, and the degree of local financial 
        commitment, as required under this subsection. In rating the 
        projects, the Secretary shall provide, in addition to the 
        overall project rating, individual ratings for each of the 
        criteria established by regulation.
            `(5) Major defined.--In this section, the term ``major'', 
        as used with respect to a new fixed guideway capital project, 
        means the Federal assistance provided or to be provided under 
        this section for the project is $75,000,000 or more.
    `(d) Capital Investment Grants Less Than $75,000,000.--
            `(1) In general.--Subject to the provisions of this 
        subsection, if the Federal assistance provided or to be 
        provided under this section with respect to a new fixed 
        guideway capital project is less than $75,000,000, and not less 
        than $25,000,000, the project shall be subject to the 
        requirements in this subsection.
            `(2) Selection criteria.--The Secretary may provide Federal 
        assistance under this subsection with respect to a proposed 
        project only if the Secretary finds that the project is--
                    `(A) based on the results of planning and 
                alternatives analysis;
                    `(B) justified based on a review of its public 
                transportation supportive land use policies, cost 
                effectiveness, and effect on local economic 
                development; and
                    `(C) supported by an acceptable degree of local 
                financial commitment.
            `(3) Planning and alternatives.--In evaluating a project 
        under paragraph (2)(A), the Secretary shall analyze and 
        consider the results of planning and alternatives analysis for 
        the project.
            `(4) Project justification.--For purposes of making the 
        finding under paragraph (2)(B), the Secretary shall--
                    `(A) determine the degree to which the project is 
                consistent with local land use policies and is likely 
                to achieve local developmental goals;
                    `(B) determine the cost effectiveness of the 
                project at the time of the initiation of revenue 
                service;
                    `(C) determine the degree to which the project will 
                have a positive effect on local economic development;
                    `(D) consider the reliability of the forecasts of 
                costs and ridership associated with the project; and
                    `(E) consider other factors that the Secretary 
                determines appropriate to carry out this subsection.
            `(5) Local financial commitment.--For purposes of paragraph 
        (2)(C), the Secretary shall require that each proposed local 
        source of capital and operating financing is stable, reliable, 
        and available within the proposed project timetable.
            `(6) Advancement of project to development and 
        construction.--
                    `(A) General rule.--A proposed project under this 
                subsection may advance from planning and alternatives 
                analysis to project development and construction only 
                if--
                            `(i) the Secretary finds that the project 
                        meets the requirements of this subsection and 
                        there is a reasonable likelihood that the 
                        project will continue to meet such 
                        requirements; and
                            `(ii) the metropolitan planning 
                        organization has adopted the locally preferred 
                        alternative for the project into the long-range 
                        transportation plan.
                    `(B) Evaluation.--In making the findings under 
                subparagraph (A), the Secretary shall evaluate and rate 
                the project as ``recommended'' or ``not recommended'' 
                based on the results of the analysis of the project 
                justification criteria and the degree of local 
                financial commitment, as required by this subsection.
            `(7) Contents of project construction grant agreement.--A 
        project construction grant agreement under this subsection 
        shall specify the scope of the project to be constructed, the 
        estimated net project cost of the project, the schedule under 
        which the project shall be constructed, the maximum amount of 
        funding to be obtained under this subsection, the proposed 
        schedule for obligation of future Federal grants, and the 
        sources of funding from other than the Government. The 
        agreement may include a commitment on the part of the Secretary 
        to provide funding for the project in future fiscal years.
            `(8) Limitation on entry into construction grant 
        agreement.--The Secretary may enter into a project construction 
        grant agreement for a project under this subsection only if the 
        project is authorized for construction and has been rated as 
        ``recommended'' under this subsection.
            `(9) Regulations.--Not later than 120 days after the date 
        of enactment of the Federal Public Transportation Act of 2005, 
        the Secretary shall issue regulations establishing an 
        evaluation and rating process for proposed projects under this 
        subsection that is based on the results of project 
        justification and local financial commitment, as required under 
        this subsection.
            `(10) Fixed guideway capital project.--In this subsection, 
        the term ``fixed guideway capital project'' includes a 
        corridor-based public transportation bus capital project if the 
        majority of the project's corridor right-of-way is dedicated 
        alignment for exclusive use by public transportation vehicles 
        for all or part of the day.
    `(e) Previously Issued Letter of Intent or Full Funding Grant 
Agreement.--Subsections (c) and (d) do not apply to projects for which 
the Secretary has issued a letter of intent or entered into a full 
funding grant agreement before the date of enactment of the Federal 
Public Transportation Act of 2005.
    `(f) Letters of Intent, Full Funding Grant Agreements, and Early 
Systems Work Agreements.--
            `(1) Letters of intent.--
                    `(A) Amounts intended to be obligated.--The 
                Secretary may issue a letter of intent to an applicant 
                announcing an intention to obligate, for a capital 
                project under this section, an amount from future 
                available budget authority specified in law that is not 
                more than the amount stipulated as the financial 
                participation of the Secretary in the project. When a 
                letter is issued for fixed guideway projects, the 
                amount shall be sufficient to complete at least an 
                operable segment.
                    `(B) Treatment.--The issuance of a letter under 
                subparagraph (A) is deemed not to be an obligation 
                under sections 1108(c), 1108(d), 1501, and 1502(a) of 
                title 31 or an administrative commitment.
            `(2) Full funding grant agreements.--
                    `(A) Terms.--The Secretary may make a full funding 
                grant agreement with an applicant. The agreement 
                shall--
                            `(i) establish the terms of participation 
                        by the Government in a project under this 
                        section;
                            `(ii) establish the maximum amount of 
                        Government financial assistance for the 
                        project;
                            `(iii) cover the period of time for 
                        completing the project, including a period 
                        extending beyond the period of an 
                        authorization; and
                            `(iv) make timely and efficient management 
                        of the project easier according to the law of 
                        the United States.
                    `(B) Special financial rules.--
                            `(i) In general.--An agreement under this 
                        paragraph obligates an amount of available 
                        budget authority specified in law and may 
                        include a commitment, contingent on amounts to 
                        be specified in law in advance for commitments 
                        under this paragraph, to obligate an additional 
                        amount from future available budget authority 
                        specified in law.
                            `(ii) Statement of contingent commitment.--
                        The agreement shall state that the contingent 
                        commitment is not an obligation of the 
                        Government.
                            `(iii) Interest and other financing 
                        costs.--Interest and other financing costs of 
                        efficiently carrying out a part of the project 
                        within a reasonable time are a cost of carrying 
                        out the project under a full funding grant 
                        agreement, except that eligible costs may not 
                        be more than the cost of the most favorable 
                        financing terms reasonably available for the 
                        project at the time of borrowing. The applicant 
                        shall certify, in a way satisfactory to the 
                        Secretary, that the applicant has shown 
                        reasonable diligence in seeking the most 
                        favorable financing terms.
                            `(iv) Completion of operable segment.--The 
                        amount stipulated in an agreement under this 
                        paragraph for a fixed guideway project shall be 
                        sufficient to complete at least an operable 
                        segment.
            `(3) Early system work agreements.--
                    `(A) Conditions.--The Secretary may make an early 
                systems work agreement with an applicant if a record of 
                decision under the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.) has been issued on the 
                project and the Secretary finds there is reason to 
                believe--
                            `(i) a full funding grant agreement for the 
                        project will be made; and
                            `(ii) the terms of the work agreement will 
                        promote ultimate completion of the project more 
                        rapidly and at less cost.
                    `(B) Contents.--
                            `(i) In general.--A work agreement under 
                        this paragraph obligates an amount of available 
                        budget authority specified in law and shall 
                        provide for reimbursement of preliminary costs 
                        of carrying out the project, including land 
                        acquisition, timely procurement of system 
                        elements for which specifications are decided, 
                        and other activities the Secretary decides are 
                        appropriate to make efficient, long-term 
                        project management easier.
                            `(ii) Period covered.--A work agreement 
                        under this paragraph shall cover the period of 
                        time the Secretary considers appropriate. The 
                        period may extend beyond the period of current 
                        authorization.
                            `(iii) Interest and other financing 
                        costs.--Interest and other financing costs of 
                        efficiently carrying out the work agreement 
                        within a reasonable time are a cost of carrying 
                        out the agreement, except that eligible costs 
                        may not be more than the cost of the most 
                        favorable financing terms reasonably available 
                        for the project at the time of borrowing. The 
                        applicant shall certify, in a way satisfactory 
                        to the Secretary, that the applicant has shown 
                        reasonable diligence in seeking the most 
                        favorable financing terms.
                            `(iv) Failure to carry out project.--If an 
                        applicant does not carry out the project for 
                        reasons within the control of the applicant, 
                        the applicant shall repay all Government 
                        payments made under the work agreement plus 
                        reasonable interest and penalty charges the 
                        Secretary establishes in the agreement.
            `(4) Limitation on amounts.--
                    `(A) Major capital investment grants contingent 
                commitment authority.--The total estimated amount of 
                future obligations of the Government and contingent 
                commitments to incur obligations covered by all 
                outstanding letters of intent, full funding grant 
                agreements, and early systems work agreements under 
                this subsection for major new fixed guideway capital 
                projects may be not more than the greater of the amount 
                authorized under sections 5338(b) and 5338(h)(1) for 
                such projects or an amount equivalent to the last 3 
                fiscal years of funding allocated under subsections 
                (m)(1)(B) and (m)(2)(B)(ii) for such projects, less an 
                amount the Secretary reasonably estimates is necessary 
                for grants under this section for those of such 
                projects that are not covered by a letter or agreement. 
                The total amount covered by new letters and contingent 
                commitments included in full funding grant agreements 
                and early systems work agreements for such projects may 
                be not more than a limitation specified in law.
                    `(B) Other contingent commitment authority.--The 
                total estimated amount of future obligations of the 
                Government and contingent commitments to incur 
                obligations covered by all project construction grant 
                agreements and early system work agreements under this 
                subsection for small capital projects described in 
                subsection (d) may be not more than the greater of the 
                amount allocated under subsection (m)(2)(A) for such 
                projects or an amount equivalent to the last fiscal 
                year of funding allocated under subsection (m)(2)(A) 
                for such projects, less an amount the Secretary 
                reasonably estimates is necessary for grants under this 
                section for those of such projects that are not covered 
                by an agreement. The total amount covered by new 
                contingent commitments included in project construction 
                grant agreements and early systems work agreements for 
                such projects may be not more than a limitation 
                specified in law.
                    `(C) Inclusion of certain commitments.--Future 
                obligations of the Government and contingent 
                commitments made against the contingent commitment 
                authority under section 3032(g)(2) of the Intermodal 
                Surface Transportation Efficiency Act of 1991 (106 
                Stat. 2125) for the San Francisco BART to the Airport 
                project for fiscal years 2002, 2003, 2004, 2005, and 
                2006 shall be charged against section 3032(g)(2) of 
                that Act.
                    `(D) Appropriation required.--An obligation may be 
                made under this subsection only when amounts are 
                appropriated for the obligation.
            `(5) Notification of congress.--At least 60 days before 
        issuing a letter of intent or entering into a full funding 
        grant agreement or project construction grant agreement under 
        this section, the Secretary shall notify, in writing, the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate of the proposed letter or 
        agreement. The Secretary shall include with the notification a 
        copy of the proposed letter or agreement as well as the 
        evaluations and ratings for the project.
    `(g) Government's Share of Net Project Cost.--
            `(1) Federal share.--Based on engineering studies, studies 
        of economic feasibility, and information on the expected use of 
        equipment or facilities, the Secretary shall estimate the net 
        project cost. A grant for the project shall be for 80 percent 
        of the net capital project cost, unless the grant recipient 
        requests a lower grant percentage.
            `(2) Remainder of net project cost.--The remainder of net 
        project costs shall be provided from an undistributed cash 
        surplus, a replacement or depreciation cash fund or reserve, or 
        new capital.
            `(3) Limitation on statutory construction.--Nothing in this 
        section, including paragraph (1) and subsections (c)(3)(D)(iv) 
        and (c)(4), 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.
            `(4) Special rule for rolling stock costs.--In addition to 
        amounts allowed pursuant to paragraph (1), a planned extension 
        to a fixed guideway system may include the cost of rolling 
        stock previously purchased if the applicant satisfies the 
        Secretary that only amounts other than amounts of the 
        Government were used and that the purchase was made for use on 
        the extension. A refund or reduction of the remainder may be 
        made only if a refund of a proportional amount of the grant of 
        the Government is made at the same time.
            `(5) Limitation on applicability.--This subsection does not 
        apply to projects for which the Secretary has entered into a 
        full funding grant agreement before the date of enactment of 
        the Federal Public Transportation Act of 2005.
    `(h) Fiscal Capacity Considerations.--If the Secretary gives 
priority consideration to financing projects that include more than the 
non-Government share required under subsection (g), the Secretary shall 
give equal consideration to differences in the fiscal capacity of State 
and local governments.
    `(i) Reports on New Starts.--
            `(1) Annual dot report.--Not later than the first Monday in 
        February of each year, the Secretary shall submit to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate a report that includes--
                    `(A) a proposal of allocations of amounts to be 
                available to finance grants for new fixed guideway 
                capital projects among applicants for these amounts;
                    `(B) evaluations and ratings, as required under 
                subsection (c), for each such project that is 
                authorized by the Federal Public Transportation Act of 
                2005; and
                    `(C) recommendations of such projects for funding 
                based on the evaluations and ratings and on existing 
                commitments and anticipated funding levels for the next 
                3 fiscal years and for the next 10 fiscal years based 
                on information currently available to the Secretary.
            `(2) Annual gao review.--The Comptroller General shall--
                    `(A) conduct an annual review of--
                            `(i) the processes and procedures for 
                        evaluating, rating, and recommending new fixed 
                        guideway capital projects; and
                            `(ii) the Secretary's implementation of 
                        such processes and procedures; and
                    `(B) report to Congress on the results of such 
                review by May 31 of each year.
    `(j) Undertaking Projects in Advance.--
            `(1) In general.--The Secretary may pay the Government's 
        share of the net capital project cost to a State or local 
        governmental authority that carries out any part of a project 
        described in this section without the aid of amounts of the 
        Government and according to all applicable procedures and 
        requirements if--
                    `(A) the State or local governmental authority 
                applies for the payment;
                    `(B) the Secretary approves the payment; and
                    `(C) before carrying out the part of the project, 
                the Secretary approves the plans and specifications for 
                the part in the same way as other projects under this 
                section.
            `(2) Financing costs.--
                    `(A) In general.--The cost of carrying out part of 
                a project includes the amount of interest earned and 
                payable on bonds issued by the State or local 
                governmental authority to the extent proceeds of the 
                bonds are expended in carrying out the part.
                    `(B) Limitation on amount of interest.--The amount 
                of interest under this paragraph may not be more than 
                the most favorable interest terms reasonably available 
                for the project at the time of borrowing.
                    `(C) Certification.--The applicant shall certify, 
                in a manner satisfactory to the Secretary, that the 
                applicant has shown reasonable diligence in seeking the 
                most favorable financial terms.
            `(3) Capital project cost indices.--The Secretary shall 
        consider changes in capital project cost indices when 
        determining the estimated cost under paragraph (2).
    `(k) Bus and Bus Facilities Projects.--In making grants under 
subsections (m)(1)(C) and (m)(2)(B)(iii), the Secretary shall consider 
the age of buses, bus fleets, related equipment, and bus-related 
facilities.
    `(l) Availability of Amounts.--An amount made available or 
appropriated under section 5338(b), 5338(g), or 5338(h) for 
replacement, rehabilitation, and purchase of buses and related 
equipment and construction of bus-related facilities or for new fixed 
guideway capital projects shall remain available for 3 fiscal years, 
including the fiscal year in which the amount is made available or 
appropriated. Any of such amounts that are unobligated at the end of 
the 3-fiscal-year period shall be deobligated and may be used by the 
Secretary for any purpose under this section.
    `(m) Allocating Amounts.--
            `(1) Fiscal year 2004.--The total amount of funds made 
        available by or appropriated under section 5338(b) for fiscal 
        year 2004 shall be allocated as follows:
                    `(A) 40 percent for fixed guideway modernization;
                    `(B) 40 percent for major new fixed guideway 
                capital projects; and
                    `(C) 20 percent to replace, rehabilitate, and 
                purchase buses and related equipment and to construct 
                bus-related facilities.
            `(2) Fiscal years 2005-2009.--The total amount of funds 
        made available by section 5338(g), and appropriated under 
        section 5338(h), for each of fiscal years 2005 through 2009 
        shall be allocated in the fiscal year as follows:
                    `(A) Small capital projects.--From funds 
                appropriated under section 5338(h) for new fixed 
                guideway capital projects described in subsection (d)--
                            `(i) $135,000,000 in fiscal year 2005;
                            `(ii) $175,000,000 in fiscal year 2006;
                            `(iii) $200,000,000 in fiscal year 2007;
                            `(iv) $200,000,000 in fiscal year 2008; and
                            `(v) $225,000,000 in fiscal year 2009.
                    `(B) Remainder.--After the allocation under 
                subparagraph (A), the remainder of such total amount 
                shall be allocated as follows:
                            `(i) 40 percent for fixed guideway 
                        modernization, to be derived from funds made 
                        available under section 5338(g).
                            `(ii) 40 percent for major new fixed 
                        capital guideway projects, to be derived from 
                        funds appropriated under section 5338(h).
                            `(iii) 20 percent to replace, rehabilitate, 
                        and purchase buses and related equipment and to 
                        construct bus-related facilities, to be derived 
                        from funds made available under section 
                        5338(g).
            `(3) Funding for ferry boat systems.--Of the amounts made 
        available under paragraphs (1)(B) and (2)(B)(ii), $10,400,000 
        shall be available in each of fiscal years 2004 through 2009 
        for new fixed guideway capital projects in Alaska or Hawaii 
        that are for ferry boats or ferry terminal facilities or that 
        are for approaches to ferry terminal facilities. Of the amounts 
        made available under paragraphs (1)(C) and (2)(B)(iii), 
        $10,000,000 shall be available in each of fiscal years 2005 
        through 2009 for ferry boats or ferry terminal facilities.
            `(4) Fuel cell bus program.--Of the amounts made available 
        under subsections (m)(1)(C) and (m)(2)(B)(iii) for a fiscal 
        year, the following amounts shall be set aside for the national 
        fuel cell bus technology development program under section 3039 
        of the Federal Public Transportation Act of 2005:
                    `(A) $4,849,950 for fiscal year 2004.
                    `(B) $10,000,000 for fiscal year 2005.
                    `(C) $11,000,000 for fiscal year 2006.
                    `(D) $12,000,000 for fiscal year 2007.
                    `(E) $13,000,000 for fiscal year 2008.
                    `(F) $14,000,000 for fiscal year 2009.
    `(n) New Fixed Guideway Capital Project Defined.--In this section, 
the term ``new fixed guideway capital project'' means a minimum 
operable segment of a capital project for a new fixed guideway system 
or extension to an existing fixed guideway system.'.
    (e) Conforming Amendments.--
            (1) Chapter analysis.--The analysis for chapter 53 is 
        amended by striking the item relating to section 5309 and 
        inserting the following:

`5309. Capital investment grants.'.
            (2) Section 5328.--Section 5328(a) is amended--
                    (A) in paragraph (2) by striking `5309(e)' and 
                inserting `5309(c)'; and
                    (B) in paragraph (4) by striking `under section 
                5309(o)(1)' and inserting `under section 5309(i)(1)'.

SEC. 3011. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND 
              INDIVIDUALS WITH DISABILITIES.

    (a) In General.--Section 5310 is amended--
            (1) by striking the section heading and inserting the 
        following:
`Sec. 5310. Formula grants for special needs of elderly individuals and 
              individuals with disabilities';
            (2) by striking subsections (a) through (g) and inserting 
        the following:
    `(a) General Authority.--
            `(1) Grants.--The Secretary may make grants to States and 
        local governmental authorities under this section for public 
        transportation capital projects, and operating costs associated 
        with public transportation capital projects, planned, designed, 
        and carried out to meet the special needs of elderly 
        individuals and individuals with disabilities.
            `(2) Subrecipients.--A State that receives a grant under 
        this section may allocate the amounts of the grant to--
                    `(A) a private nonprofit organization if the public 
                transportation service provided under paragraph (1) is 
                unavailable, insufficient, or inappropriate; or
                    `(B) a governmental authority that--
                            `(i) is approved by the State to coordinate 
                        services for elderly individuals and 
                        individuals with disabilities; or
                            `(ii) certifies that there are not any 
                        nonprofit organizations readily available in 
                        the area to provide the services described 
                        under paragraph (1).
            `(3) Acquiring public transportation services.--A public 
        transportation capital project under this section may include 
        acquisition of public transportation services as an eligible 
        capital expense.
            `(4) Administrative expenses.--A State or local 
        governmental authority may use not more than 10 percent of the 
        amounts apportioned to the State under this section to 
        administer, plan, and provide technical assistance for a 
        project funded under this section.
    `(b) Apportionment and Transfers.--
            `(1) Apportionment.--
                    `(A) Formula.--The Secretary shall apportion 
                amounts made available to carry out this section under 
                a formula the Secretary administers that considers the 
                number of elderly individuals and individuals with 
                disabilities in each State.
                    `(B) Low density adjustment.--In administering the 
                apportionment formula under subparagraph (A)--
                            `(i) in the case of a State with a 
                        population density of 10 or fewer persons per 
                        square mile, the Secretary shall multiply by a 
                        factor of 2 the number of elderly individuals 
                        and individuals with disabilities in the State 
                        (as determined using the most recent decennial 
                        United States Census); and
                            `(ii) in the case of a State with a 
                        population density of more than 10 but equal to 
                        or fewer than 30 persons per square mile, the 
                        Secretary shall multiply by a factor of 1.25 
                        the number of elderly individuals and 
                        individuals with disabilities in the State (as 
                        determined using the most recent decennial 
                        United States Census).
            `(2) Transfers.--Any State's apportionment remaining 
        available for obligation at the beginning of the 90-day period 
        before the end of the period of availability of the 
        apportionment is available to the State for transfer to 
        supplement amounts apportioned to the State under section 
        5311(c) or 5336(a)(1), or both. Any funds transferred pursuant 
        to this paragraph shall be made available only for eligible 
        projects as described in this section.
    `(c) Government's Share of Costs.--
            `(1) Capital projects.--A grant for a capital project under 
        this section shall be for 80 percent of the net capital costs 
        of the project, as determined by the Secretary; except that in 
        the case of a State described in section 120(b)(1) of title 23, 
        such percentage shall be increased in accordance with such 
        section.
            `(2) Operating assistance.--A grant made under this section 
        for operating assistance may not exceed 50 percent of the net 
        operating costs of the project, as determined by the Secretary.
            `(3) Remainder.--The remainder of the net project costs--
                    `(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital; and
                    `(B) may be derived from amounts appropriated to or 
                made available to a department or agency of the 
                Government (other than the Department of 
                Transportation) that are eligible to be expended for 
                transportation.
            `(4) Use of certain funds.--For purposes of paragraph 
        (3)(B), the prohibitions on the use of funds for matching 
        requirements under section 403(a)(5)(C)(vii) of the Social 
        Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
        Federal or State funds to be used for transportation purposes.
    `(d) Grant Requirements.--
            `(1) In general.--A grant under this section shall be 
        subject to all requirements of a grant under section 5307. A 
        grant to a subrecipient under this section shall be subject to 
        such requirements to the extent the Secretary considers 
        appropriate.
            `(2) Coordination with nonprofit providers.--A recipient 
        that transfers funds to an apportionment under section 
        5336(a)(1) pursuant to subsection (b)(2) shall certify that the 
        project for which the funds are requested under this section 
        has been coordinated with nonprofit providers of services.
            `(3) Project selection and planning.--A recipient of funds 
        under this section shall certify that--
                    `(A) the projects selected were derived from a 
                locally developed, coordinated public transit-human 
                services transportation plan; and
                    `(B) the plan was developed through a process that 
                included representatives of public, private, and 
                nonprofit transportation and human services providers 
                and participation by the public.
            `(4) Fair and equitable distribution.--A recipient of a 
        grant under this section shall certify that allocations of the 
        grant to subrecipients are distributed on a fair and equitable 
        basis.
    `(e) State Program.--
            `(1) In general.--Amounts made available to carry out this 
        section may be used for transportation projects to assist in 
        providing transportation services for elderly individuals and 
        individuals with disabilities that are included in a State 
        program of projects.
            `(2) Submission and approval.--A program shall be submitted 
        annually to the Secretary for approval and shall contain an 
        assurance that the program provides for maximum feasible 
        coordination of transportation services assisted under this 
        section with transportation services assisted by other 
        Government sources.
    `(f) Leasing Vehicles.--Vehicles acquired under this section may be 
leased to local governmental authorities to improve transportation 
services designed to meet the special needs of elderly individuals and 
individuals with disabilities.'; and
            (3) by redesignating subsections (h) through (j) as 
        subsections (g) through (i), respectively.
    (b) Conforming Amendment.--The analysis for chapter 53 is amended 
by striking the item relating to section 5310 and inserting the 
following:

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

SEC. 3012. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

    (a) Definitions.--Section 5311(a) is amended to read as follows:
    `(a) Definitions.--In this section, the following definitions 
apply:
            `(1) Recipient.--The term ``recipient'' means a State that 
        receives a Federal transit program grant directly from the 
        Government.
            `(2) Subrecipient.--The term ``subrecipient'' means a State 
        or local governmental authority, nonprofit organization, or 
        operator of public transportation services that receives a 
        Federal transit program grant indirectly through a recipient.'.
    (b) General Authority.--Section 5311(b) is amended to read as 
follows:
    `(b) General Authority.--
            `(1) Grants.--Except as provided in paragraph (2), the 
        Secretary may make grants to other than urbanized areas under 
        this section for the following:
                    `(A) Public transportation capital projects.
                    `(B) Operating costs of equipment and facilities 
                for use in public transportation.
                    `(C) Acquisition of public transportation services, 
                including service agreements with private providers of 
                public transportation services.
            `(2) State program.--
                    `(A) In general.--Amounts made available to carry 
                out this section shall be used for projects included in 
                a State program for public transportation projects, 
                including service agreements with private providers of 
                public transportation.
                    `(B) Submission.--The program shall be submitted 
                annually to the Secretary for approval.
                    `(C) Approval.--The Secretary may approve the 
                program only if the Secretary finds that the program 
                provides a fair distribution of amounts in the State, 
                including Indian reservations, and the maximum feasible 
                coordination of public transportation service assisted 
                under this section with transportation service assisted 
                by other Federal sources.
            `(3) Rural transportation assistance program.--
                    `(A) In general.--The Secretary shall carry out a 
                rural transportation assistance program in other than 
                urbanized areas.
                    `(B) Grants and contracts.--In carrying out this 
                paragraph, the Secretary may use not more than 2 
                percent of the amount made available to carry out this 
                section to make grants and contracts for transportation 
                research, technical assistance, training, and related 
                support services in other than urbanized areas.
                    `(C) Projects of a national scope.--Not more than 
                15 percent of the amounts available under subparagraph 
                (B) may be used by the Secretary to carry out projects 
                of a national scope, with the remaining balance 
                provided to the States.'.
    (c) Apportionments.--Section 5311(c) is amended to read as follows:
    `(c) Apportionments.--
            `(1) In general.--The Secretary shall apportion amounts 
        made available to carry out this section among the States in 
        the ratio that--
                    `(A) the population of other than urbanized areas 
                in each State, as shown by the most recent Government 
                decennial census of population; bears to
                    `(B) the population of all other than urbanized 
                areas in the United States, as shown by that census.
            `(2) Low density adjustment.--In administering the 
        apportionment formula under paragraph (1)--
                    `(A) in the case of a State with a population 
                density of 10 or fewer persons per square mile in other 
                than urbanized areas of the State, the Secretary shall 
                multiply by a factor of 1.5 the population of such 
                other than urbanized areas (as determined using the 
                most recent decennial United States Census); and
                    `(B) in the case of a State with a population 
                density of more than 10 but equal to or fewer than 12 
                persons per square mile in other than urbanized areas 
                of the State, the Secretary shall multiply by a factor 
                of 1.25 the population of such other than urbanized 
                areas (as determined using the most recent decennial 
                United States Census).
            `(3) Availability.--The amount apportioned to a State under 
        this subsection may be obligated by the State for 2 fiscal 
        years after the fiscal year in which the amount is apportioned. 
        An amount that is not obligated at the end of that period shall 
        be reapportioned among the States for the next fiscal year.'.
    (d) Use for Administration, Planning, and Technical Assistance.--
Section 5311(e) is amended--
            (1) in the subsection heading by inserting `, planning,' 
        after `administration';
            (2) by striking `(1) The Secretary' and inserting `The 
        Secretary';
            (3) by striking paragraph (2); and
            (4) by striking `recipient' and inserting `subrecipient'.
    (e) Intercity Bus Transportation.--Section 5311(f) is amended--
            (1) in paragraph (1) by striking `after September 30, 
        1993,'; and
            (2) in paragraph (2) by striking `A State' and inserting 
        `After consultation with affected intercity bus service 
        providers, a State'.
    (f) Government's Share of Costs.--Section 5311(g) is amended to 
read as follows:
    `(g) Government's Share of Costs.--
            `(1) Capital projects.--A grant for a capital project under 
        this section shall be for 80 percent of the net capital costs 
        of the project, as determined by the Secretary; except that in 
        the case of a State described in section 120(b)(1) of title 23, 
        such percentage shall be increased in accordance with such 
        section.
            `(2) Operating assistance.--A grant made under this section 
        for operating assistance may not exceed 50 percent of the net 
        operating costs of the project, as determined by the Secretary.
            `(3) Remainder.--The remainder of net project costs--
                    `(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital; and
                    `(B) may be derived from amounts appropriated to or 
                made available to a department or agency of the 
                Government (other than the Department of 
                Transportation) that are eligible to be expended for 
                transportation.
            `(4) Use of certain funds.--For purposes of paragraph 
        (3)(B), the prohibitions on the use of funds for matching 
        requirements under section 403(a)(5)(C)(vii) of the Social 
        Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
        Federal or State funds to be used for transportation purposes.
            `(5) Limitation on operating assistance.--A State carrying 
        out a program of operating assistance under this section may 
        not limit the level or extent of use of the Government grant 
        for the payment of operating expenses.'.
    (g) Relationship to Other Laws.--Section 5311 is amended--
            (1) by striking subsection (h); and
            (2) by redesignating subsections (i) and (j) as subsections 
        (h) and (i), respectively.
    (h) Correction to Chapter Analysis.--The analysis for chapter 53 is 
amended by striking the item relating to section 5311 and inserting the 
following:

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

SEC. 3013. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND DEPLOYMENT 
              PROJECTS.

    (a) In General.--Section 5312 is amended--
            (1) in subsection (a)--
                    (A) by striking the first parenthetical phrase;
                    (B) by striking `or contracts' and inserting `, 
                contracts, cooperative agreements, or other 
                transactions';
                    (C) by striking `help reduce urban transportation 
                needs, improve mass transportation service,' and 
                inserting `improve transportation service';
                    (D) by striking `urban' each place it appears; and
                    (E) by striking `and demonstration projects' and 
                inserting `, demonstration or deployment projects, or 
                evaluation of technology of national significance';
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsections (d) and (e) as subsections 
        (b) and (c), respectively;
            (4) in subsection (b)(2) (as so redesignated) by striking 
        `other agreements' and inserting `other transactions'; and
            (5) in subsection (c)(2) (as so redesignated) by striking 
        `public and' and inserting `public or'.
    (b) Conforming Amendments.--
            (1) Section heading.--Section 5312 is amended by striking 
        the section heading and inserting the following:
`Sec. 5312. Research, development, demonstration, and deployment 
              projects'.
            (2) Chapter analysis.--The analysis for chapter 53 is 
        amended by striking the item relating to section 5312 and 
        inserting the following:

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

SEC. 3014. COOPERATIVE RESEARCH PROGRAM.

    (a) In General.--Section 5313 is amended--
            (1) in subsection (a) by striking `(1) The amounts made 
        available under paragraphs (1) and (2)(C)(ii) of section 
        5338(d) of this title' and inserting `The amounts made 
        available under paragraphs (1)(C)(iv) and (2)(C) of section 
        5338(d)';
            (2) by striking subsection (b);
            (3) in subsection (a)(2) by striking `(2) The' and 
        inserting `(b) Federal Assistance.--The'; and
            (4) in subsection (c) by striking `subsection (a) of'.
    (b) Conforming Amendments.--
            (1) In general.--Section 5313 is amended by striking the 
        section heading and inserting the following:
`Sec. 5313. Cooperative research program'.
            (2) Chapter analysis.--The analysis for chapter 53 is 
        amended by striking the item relating to section 5313 and 
        inserting the following:

`5313. Cooperative research program.'.

SEC. 3015. NATIONAL RESEARCH AND TECHNOLOGY PROGRAMS.

    (a) In General.--Section 5314 is amended--
            (1) by striking the section heading and inserting the 
        following:
`Sec. 5314. National research and technology programs';
            (2) in subsection (a)(1)--
                    (A) by striking `subsections (d) and (h)(7) of 
                section 5338 of this title' and inserting `section 
                5338(d)';
                    (B) by striking `and contracts' and inserting `, 
                contracts, cooperative agreements, or other 
                transactions';
                    (C) by striking `5303-5306,'; and
                    (D) by striking `5317,';
            (3) in subsection (a)(2) by striking `Of the amounts' and 
        all that follows through `$3,000,000 to' and inserting `The 
        Secretary shall';
            (4) by striking subsection (a)(4)(B);
            (5) by redesignating subsection (a)(4)(C) as subsection 
        (a)(4)(B); and
            (6) in subsection (b) by striking `or contract' and all 
        that follows through `section,' and inserting `, contract, 
        cooperative agreement, or other transaction under subsection 
        (a) or section 5312,'.
    (b) Conforming Amendment.--The analysis for chapter 53 is amended 
by striking the item relating to section 5314 and inserting the 
following:

`5314. National research and technology programs.'.

SEC. 3016. NATIONAL TRANSIT INSTITUTE.

    Section 5315 is amended--
            (1) in subsection (a) by striking `public mass 
        transportation' and inserting `public transportation'; and
            (2) in subsection (d) by striking `mass' each place it 
        appears.

SEC. 3017. JOB ACCESS AND REVERSE COMMUTE FORMULA GRANTS.

    (a) In General.--Chapter 53 is amended by inserting after section 
5315 the following:
`Sec. 5316. Job access and reverse commute formula grants
    `(a) Definitions.--In this section, the following definitions 
apply:
            `(1) Access to jobs project.--The term ``access to jobs 
        project'' means a project relating to the development and 
        maintenance of transportation services designed to transport 
        welfare recipients and eligible low-income individuals to and 
        from jobs and activities related to their employment, 
        including--
                    `(A) transportation projects to finance planning, 
                capital, and operating costs of providing access to 
                jobs under this chapter;
                    `(B) promoting public transportation by low-income 
                workers, including the use of public transportation by 
                workers with nontraditional work schedules;
                    `(C) promoting the use of transit vouchers for 
                welfare recipients and eligible low-income individuals; 
                and
                    `(D) promoting the use of employer-provided 
                transportation, including the transit pass benefit 
                program under section 132 of the Internal Revenue Code 
                of 1986.
            `(2) Eligible low-income individual.--The term ``eligible 
        low-income individual'' means an individual whose family income 
        is at or below 150 percent of the poverty line (as that term is 
        defined in section 673(2) of the Community Services Block Grant 
        Act (42 U.S.C. 9902(2)), including any revision required by 
        that section) for a family of the size involved.
            `(3) Recipient.--The term ``recipient'' means a designated 
        recipient (as defined in section 5307(a)(2)) and a State that 
        receives a grant under this section directly.
            `(4) Reverse commute project.--The term ``reverse commute 
        project'' means a public transportation project designed to 
        transport residents of urbanized areas and other than urbanized 
        areas to suburban employment opportunities, including any 
        projects to--
                    `(A) subsidize the costs associated with adding 
                reverse commute bus, train, carpool, van routes, or 
                service from urbanized areas and other than urbanized 
                areas to suburban workplaces;
                    `(B) subsidize the purchase or lease by a nonprofit 
                organization or public agency of a van or bus dedicated 
                to shuttling employees from their residences to a 
                suburban workplace; or
                    `(C) otherwise facilitate the provision of public 
                transportation services to suburban employment 
                opportunities.
            `(5) Subrecipient.--The term ``subrecipient'' means a State 
        or local governmental authority, nonprofit organization, or 
        operator of public transportation services that receives a 
        grant under this section indirectly through a recipient.
            `(6) Welfare recipient.--The term ``welfare recipient'' 
        means an individual who has received assistance under a State 
        or tribal program funded under part A of title IV of the Social 
        Security Act at any time during the 3-year period before the 
        date on which the applicant applies for a grant under this 
        section.
    `(b) General Authority.--
            `(1) Grants.--The Secretary may make grants under this 
        section to a recipient for access to jobs and reverse commute 
        projects carried out by the recipient or a subrecipient.
            `(2) Administrative expenses.--A recipient may use not more 
        than 10 percent of the amounts apportioned to the recipient 
        under this section to administer, plan, and provide technical 
        assistance for a project funded under this section.
    `(c) Apportionments.--
            `(1) Formula.--The Secretary shall apportion amounts made 
        available to carry out this section as follows:
                    `(A) 60 percent of the funds shall be apportioned 
                among designated recipients (as defined in section 
                5307(a)(2)) for urbanized areas with a population of 
                200,000 or more in the ratio that--
                            `(i) the number of eligible low-income 
                        individuals and welfare recipients in each such 
                        urbanized area; bears to
                            `(ii) the number of eligible low-income 
                        individuals and welfare recipients in all such 
                        urbanized areas.
                    `(B) 20 percent of the funds shall be apportioned 
                among the States in the ratio that--
                            `(i) the number of eligible low-income 
                        individuals and welfare recipients in urbanized 
                        areas with a population of less than 200,000 in 
                        each State; bears to
                            `(ii) the number of eligible low-income 
                        individuals and welfare recipients in urbanized 
                        areas with a population of less than 200,000 in 
                        all States.
                    `(C) 20 percent of the funds shall be apportioned 
                among the States in the ratio that--
                            `(i) the number of eligible low-income 
                        individuals and welfare recipients in other 
                        than urbanized areas in -each State; bears to
                            `(ii) the number of eligible low-income 
                        individuals and welfare recipients in other 
                        than urbanized areas in all States.
            `(2) Use of apportioned funds.--Except as provided in 
        paragraph (3)--
                    `(A) funds apportioned under paragraph (1)(A) shall 
                be used for projects serving urbanized areas with a 
                population of 200,000 or more;
                    `(B) funds apportioned under paragraph (1)(B) shall 
                be used for projects serving urbanized areas with a 
                population of less than 200,000; and
                    `(C) funds apportioned under paragraph (1)(C) shall 
                be used for projects serving other than urbanized 
                areas.
            `(3) Exceptions.--A State may use funds apportioned under 
        paragraphs (1)(B) and (1)(C)--
                    `(A) for projects serving areas other than the area 
                specified in paragraph (2)(B) or (2)(C), as the case 
                may be, if the Governor of the State certifies that all 
                of the objectives of this section are being met in the 
                specified area; or
                    `(B) for projects anywhere in the State if the 
                State has established a statewide program for meeting 
                the objectives of this section.
    `(d) Competitive Process for Grants to Subrecipients.--
            `(1) Areawide solicitations.--A recipient of funds 
        apportioned under subsection (c)(1)(A) shall conduct, in 
        cooperation with the appropriate metropolitan planning 
        organization, an areawide solicitation for applications for 
        grants to the recipient and subrecipients under this section.
            `(2) Statewide solicitation.--A recipient of funds 
        apportioned under subsection (c)(1)(B) or (c)(1)(C) shall 
        conduct a statewide solicitation for applications for grants to 
        the recipient and subrecipients under this section.
            `(3) Application.--Recipients and subrecipients seeking to 
        receive a grant from funds apportioned under subsection (c) 
        shall submit to the recipient an application in the form and in 
        accordance with such requirements as the recipient shall 
        establish.
            `(4) Grant awards.--The recipient shall award grants under 
        paragraphs (1) and (2) on a competitive basis.
    `(e) Transfers.--
            `(1) In general.--A State may transfer any funds 
        apportioned to it under subsection (c)(1)(B) or (c)(1)(C), or 
        both, to an apportionment under section 5311(c) or 5336, or 
        both.
            `(2) Limited to eligible projects.--Any apportionment 
        transferred under this subsection shall be made available only 
        for eligible job access and reverse commute projects as 
        described in this section.
            `(3) Consultation.--A State may make a transfer of an 
        amount under this subsection only after consulting with 
        responsible local officials and publicly owned operators of 
        public transportation in each area for which the amount 
        originally was awarded under subsection (d)(4).
    `(f) Grant Requirements.--
            `(1) In general.--A grant under this section shall be 
        subject to the requirements of section 5307.
            `(2) Fair and equitable distribution.--A recipient of a 
        grant under this section shall certify to the Secretary that 
        allocations of the grant to subrecipients are distributed on a 
        fair and equitable basis.
    `(g) Coordination.--
            `(1) In general.--The Secretary shall coordinate activities 
        under this section with related activities under programs of 
        other Federal departments and agencies.
            `(2) With nonprofit providers.--A State that transfers 
        funds to an apportionment under section 5336 pursuant to 
        subsection (e) shall certify to the Secretary that any project 
        for which the funds are requested under this section has been 
        coordinated with nonprofit providers of services.
            `(3) Project selection and planning.--A recipient of funds 
        under this section shall certify to the Secretary that--
                    `(A) the projects selected were derived from a 
                locally developed, coordinated public transit-human 
                services transportation plan; and
                    `(B) the plan was developed through a process that 
                included representatives of public, private, and 
                nonprofit transportation and human services providers 
                and participation by the public.
    `(h) Government's Share of Costs.--
            `(1) Capital projects.--A grant for a capital project under 
        this section may not exceed 80 percent of the net capital costs 
        of the project, as determined by the Secretary.
            `(2) Operating assistance.--A grant made under this section 
        for operating assistance may not exceed 50 percent of the net 
        operating costs of the project, as determined by the Secretary.
            `(3) Remainder.--The remainder of the net project costs--
                    `(A) may be provided from an undistributed cash 
                surplus, a replacement or depreciation cash fund or 
                reserve, a service agreement with a State or local 
                social service agency or a private social service 
                organization, or new capital; and
                    `(B) may be derived from amounts appropriated to or 
                made available to a department or agency of the 
                Government (other than the Department of 
                Transportation) that are eligible to be expended for 
                transportation.
            `(4) Use of certain funds.--For purposes of paragraph 
        (3)(B), the prohibitions on the use of funds for matching 
        requirements under section 403(a)(5)(C)(vii) of the Social 
        Security Act (42 U.S.C. 603(a)(5)(C)(vii)) shall not apply to 
        Federal or State funds to be used for transportation purposes.
            `(5) Limitation on operating assistance.--A recipient 
        carrying out a program of operating assistance under this 
        section may not limit the level or extent of use of the 
        Government grant for the payment of operating expenses.
    `(i) Program Evaluation.--
            `(1) Comptroller general.--Beginning 1 year after the date 
        of enactment of the Federal Public Transportation Act of 2005, 
        and every 2 years thereafter, the Comptroller General shall--
                    `(A) conduct a study to evaluate the grant program 
                authorized by this section; and
                    `(B) transmit to the Committee on Transportation 
                and Infrastructure of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate a report describing the results of the study 
                under subparagraph (A).
            `(2) Department of transportation.--Not later than 3 years 
        after the date of enactment of Federal Public Transportation 
        Act of 2005, the Secretary shall--
                    `(A) conduct a study to evaluate the effectiveness 
                of the grant program authorized by this section and the 
                effectiveness of recipients making grants to 
                subrecipients under this section; and
                    `(B) transmit to the committees referred to in 
                paragraph (1)(B) a report describing the results of the 
                study under subparagraph (A).'.
    (b) Conforming Amendment.--The analysis for chapter 53 is amended 
by inserting after the item relating to section 5315 the following:

`5316. Job access and reverse commute formula grants.'.
    (c) Repeal.--Section 3037 of the Transportation Equity Act for the 
21st Century (49 U.S.C. 5309 note; 112 Stat. 387) is repealed.

SEC. 3018. NEW FREEDOM PROGRAM.

    (a) In General.--Chapter 53 is further amended by inserting after 
section 5316 the following:
`Sec. 5317. New Freedom program
    `(a) Definitions.--In this section, the following definitions 
apply:
            `(1) Recipient.--The term ``recipient'' means a designated 
        recipient (as defined in section 5307(a)(2)) and a State that 
        receives a grant under this section directly.
            `(2) Subrecipient.--The term ``subrecipient'' means a State 
        or local governmental authority, nonprofit organization, or 
        operator of public transportation services that receives a 
        grant under this section indirectly through a recipient.
    `(b) General Authority.--
            `(1) Grants.--The Secretary may make grants under this 
        section to a recipient for new public transportation services 
        and public transportation alternatives beyond those required by 
        the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et 
        seq.) that assist individuals with disabilities with 
        transportation, including transportation to and from jobs and 
        employment support services.
            `(2) Administrative expenses.--A recipient may use not more 
        than 10 percent of the amounts apportioned to the recipient 
        under this section to administer, plan, and provide technical 
        assistance for a project funded under this section.
    `(c) Apportionments.--
            `(1) Formula.--The Secretary shall apportion amounts made 
        available to carry out this section as follows:
                    `(A) 60 percent of the funds shall be apportioned 
                among designated recipients (as defined in section 
                5307(a)(2)) for urbanized areas with a population of 
                200,000 or more in the ratio that--
                            `(i) the number of individuals with 
                        disabilities in each such urbanized area; bears 
                        to
                            `(ii) the number of individuals with 
                        disabilities in all such urbanized areas.
                    `(B) 20 percent of the funds shall be apportioned 
                among the States in the ratio that--
                            `(i) the number of individuals with 
                        disabilities in urbanized areas with a 
                        population of less than 200,000 in each State; 
                        bears to
                            `(ii) the number of individuals with 
                        disabilities in urbanized areas with a 
                        population of less than 200,000 in all States.
                    `(C) 20 percent of the funds shall be apportioned 
                among the States in the ratio that--
                            `(i) the number of individuals with 
                        disabilities in other than urbanized areas in 
                        each State; bears to
                            `(ii) the number of individuals with 
                        disabilities in other than urbanized areas in 
                        all States.
            `(2) Use of apportioned funds.--Except as provided in 
        paragraph (3)--
                    `(A) funds apportioned under paragraph (1)(A) shall 
                be used for projects serving urbanized areas with a 
                population of 200,000 or more;
                    `(B) funds apportioned under paragraph (1)(B) shall 
                be used for projects serving urbanized areas with a 
                population of less than 200,000; and
                    `(C) funds apportioned under paragraph (1)(C) shall 
                be used for projects serving other than urbanized 
                areas.
            `(3) Low density adjustment.--
                    `(A) Smaller urbanized areas.--In administering the 
                apportionment formula under paragraph (1)(B)--
                            `(i) in the case of a State with a 
                        population density of 10 or fewer persons per 
                        square mile in other than urbanized areas of 
                        the State, the Secretary shall multiply by a 
                        factor of 2 the number of individuals with 
                        disabilities in urbanized areas of the State 
                        with a population of less than 200,000 (as 
                        determined using the most recent decennial 
                        United States Census); and
                            `(ii) in the case of a State with a 
                        population density of more than 10 but equal to 
                        or fewer than 30 persons per square mile, the 
                        Secretary shall multiply by a factor of 1.25 
                        the number of individuals with disabilities in 
                        urbanized areas of the State with a population 
                        of less than 200,000 (as determined using the 
                        most recent decennial United States Census).
                    `(B) Other than urbanized areas.--In administering 
                the apportionment formula under paragraph (1)(C)--
                            `(i) in the case of a State with a 
                        population density of 10 or fewer persons per 
                        square mile in other than urbanized areas of 
                        the State, the Secretary shall multiply by a 
                        factor of 1.5 the number of individuals with 
                        disabilities in other than urba