S. 1072 — Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1072 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1072

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2003

  Mr. Inhofe  (for himself, Mr. Jeffords, Mr. Bond, and Mr. Reid) (by 
   request) introduced the following bill; which was read twice and 
       referred to the Committee on Environment and Public Works

_______________________________________________________________________

                                 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 ``Safe, Accountable, 
Flexible, and Efficient Transportation Equity Act of 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                     TITLE I--FEDERAL-AID HIGHWAYS

                          Subtitle A--Funding

Sec. 1101. Authorization of appropriations.
Sec. 1102. Obligation ceiling.
Sec. 1103. Apportionments.
Sec. 1104. Minimum guarantee.
Sec. 1105. Revenue aligned budget authority.
                        Subtitle B--New Programs

Sec. 1201. Infrastructure performance and maintenance program.
Sec. 1202. Clarify federal-aid eligibility for certain security 
                            projects.
Sec. 1203. Future of the Interstate Highway System.
Sec. 1204. Military vehicle access (oversize and overweight vehicles; -
                            -relief from tolls).
Sec. 1205. Freight transportation gateways; freight intermodal 
                            connections.
Sec. 1206. Authority for alternative time-saving procedures for --
                            critical transportation security projects.
                          Subtitle C--Finance

Sec. 1301. Federal share.
Sec. 1302. Transfer of highway and transit funds.
Sec. 1303. State infrastructure bank pilot program.
Sec. 1304. Transportation Infrastructure Finance and Innovation Act --
                            (TIFIA) Amendments.
Sec. 1305. International registration plan and international fuel tax 
                            agreement facilitation.
Sec. 1306. Commercialized rest area pilot projects.
Sec. 1307. Highway use tax evasion projects.
       Subtitle D--Program Efficiencies and Improvements--Safety

Sec. 1401. National highway safety goal; national Blue Ribbon 
                            Commission on Highway Safety.
Sec. 1402. Highway Safety Improvement Program.
Sec. 1403. Operation lifesaver.
Sec. 1404. Highway safety programs; certification of public road 
                            mileage.
      Subtitle E--Program Efficiencies and Improvements--Planning

Sec. 1501. Metropolitan planning.
Sec. 1502. Statewide planning.
Sec. 1503. State planning and research.
Sec. 1504. Critical real property acquisition.
Sec. 1505. Planning capacity building initiative.
     Subtitle F--Program Efficiencies and Improvements--Environment

Sec. 1601. Congestion Mitigation and Air Quality Improvement Program.
Sec. 1602. Efficient environmental reviews for project decisionmaking.
Sec. 1603. Assumption of responsibility for categorical exclusions.
Sec. 1604. Section 4(f) policy on lands, wildlife and waterfowl 
                            refuges, and historic sites.
Sec. 1605. National Scenic Byways Program.
Sec. 1606. Recreational Trails Program.
Sec. 1607. Exemption of the Interstate System.
Sec. 1608. Modifications to NHS/STP for invasive species, wetlands, 
                            brownfields, and environmental restoration.
Sec. 1609. Standards.
Sec. 1610. Use of HOV lanes.
Sec. 1611. Bicycle transportation and pedestrian walkways.
Sec. 1612. Transportation, energy, and environment.
Sec. 1613. Idling reduction facilities in interstate rights-of-way.
Sec. 1614. Appropriation for transportation purposes of lands or 
                            interest in lands owned by the United 
                            States.
Sec. 1615. Toll programs.
Sec. 1616. Ozone standards, particulate matter standards, and regional 
                            haze program.
Sec. 1617. Indemnification on certain railbanked projects.
     Subtitle G.--Program Efficiencies and Improvements--Operations

Sec. 1701. Transportation systems management and operations.
Sec. 1702. Real-Time System Management Information Program.
Sec. 1703. Intelligent transportation systems performance incentive 
                            program.
Sec. 1704. Commercial vehicle information systems and networks 
                            deployment.
    Subtitle H--Program Efficiencies and Improvements--Federal-Aid 
                              Stewardship

Sec. 1801. Surface Transportation System Performance Pilot Program.
Sec. 1802. Stewardship and oversight.
Sec. 1803. Emergency relief.
Sec. 1804. Federal Lands Highways Program.
Sec. 1805. Appalachian Development Highway System.
Sec. 1806. Multi-State Corridor Planning Program.
Sec. 1807. Border Planning, Operations, and Technology Program.
Sec. 1808. Territorial Highway Program amendments.
Sec. 1809. Future interstate system routes.
Sec. 1810. Donations and credits.
Sec. 1811. Disadvantaged business enterprises.
Sec. 1812. Highway Bridge Program.
Sec. 1813. Design-build.
Sec. 1814. International ferries.
Sec. 1815. Assumption of responsibility for transportation 
                            enhancements, recreational trails, and 
                            Transportation and Community and System 
                            Preservation Program projects.
Sec. 1816. Transportation, Community, and System Preservation Program.
Sec. 1817. Program efficiencies--Finance.
         Subtitle I--Technical Corrections to Title 23, U.S.C.

Sec. 1901. Repeal or update of obsolete text.
Sec. 1902. Clarification of date.
Sec. 1903. Inclusion of requirements for signs identifying funding 
                            sources in title 23.
Sec. 1904. Inclusion of ``Buy America'' requirements in title 23.
Sec. 1905. Technical amendments to 23 U.S.C. 140--Nondiscrimination.
Sec. 1906. Federal share payable for projects for elimination of 
                            hazards of railway-highway crossings.
                        TITLE II--HIGHWAY SAFETY

Sec. 2001. Highway safety programs.
Sec. 2002. Highway safety research and development.
Sec. 2003. Emergency medical services.
Sec. 2004. State traffic safety information system improvements.
Sec. 2005. Authorization of appropriations.
Sec. 2006. Repeal of obsolete provisions of title 23.
           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

Sec. 3001. Short title.
Sec. 3002. Updated terminology; amendments to title 49, United States 
                            Code.
Sec. 3003. Policies, findings, and purposes.
Sec. 3004. Definitions.
Sec. 3005. Metropolitan planning.
Sec. 3006. Statewide planning.
Sec. 3007. Planning programs.
Sec. 3008. Private enterprise participation.
Sec. 3009. Urbanized Area Public Transportation Formula Grants Program.
Sec. 3010. Formula grants for other than urbanized areas.
Sec. 3011. New Freedom program.
Sec. 3012. Major capital investment program.
Sec. 3013. Research, development, demonstration, and deployment 
                            projects.
Sec. 3014. Cooperative research grant program.
Sec. 3015. National research programs.
Sec. 3016. National Transit Institute.
Sec. 3017. Bus testing facility.
Sec. 3018. Bicycle facilities.
Sec. 3019. Suspended light rail technology pilot project.
Sec. 3020. General provisions on assistance.
Sec. 3021. Special provisions for capital projects.
Sec. 3022. Contract requirements.
Sec. 3023. Human resources programs.
Sec. 3024. Project management oversight and review.
Sec. 3025. Project review.
Sec. 3026. Investigations of safety and security risk.
Sec. 3027. State safety oversight.
Sec. 3028. Sensitive security information.
Sec. 3029. Terrorist attacks and other acts of violence against public 
                            transportation systems.
Sec. 3030. Controlled substances and alcohol misuse testing.
Sec. 3031. Employee protective arrangements.
Sec. 3032. Administrative procedures.
Sec. 3033. Reports and audits.
Sec. 3034. Apportionments of appropriations for formula grants.
Sec. 3035. Apportionments based on fixed guideway factors.
Sec. 3036. Authorizations.
Sec. 3037. National parks and public lands legacy project.
Sec. 3038. Over-the-road bus accessibility program.
Sec. 3039. Formula grants for special needs of elderly individuals and 
                            individuals with disabilities.
Sec. 3040. Job access and reverse commute.
                     TITLE IV--MOTOR CARRIER SAFETY

Sec. 4001. Authorization of appropriations.
Sec. 4002. Motor carrier safety grants.
Sec. 4003. Hobbs Act.
Sec. 4004. Penalty for denial of access to records.
Sec. 4005. Medical review board and medical examiners.
Sec. 4006. Enforcement of household goods regulations.
Sec. 4007. Registration of commercial motor carriers, freight 
                            forwarders, and brokers.
Sec. 4008. Financial responsibility for private motor carriers.
Sec. 4009. Increased penalties for out-of-service violations and false 
                            records.
Sec. 4010. Elimination of commodity and service exemptions.
Sec. 4011. Intrastate operations of interstate motor carriers.
Sec. 4012. Authority to stop commercial motor vehicles.
Sec. 4013. Pattern of safety violations by motor carrier management.
Sec. 4014. Motor carrier research and technology program.
Sec. 4015. International cooperation.
Sec. 4016. Performance and Registration Information System Management 
                            (PRISM).
Sec. 4017. Information systems and data analysis.
Sec. 4018. Outreach and education.
             TITLE V--TRANSPORTATION RESEARCH AND EDUCATION

                          Subtitle A--Funding

Sec. 5101. Authorization of appropriations.
            Subtitle B--Research, Technology, and Education

Sec. 5201. Research, technology, and education.
Sec. 5202. Surface transportation environment and planning cooperative 
                            research program.
Sec. 5203. Long-term bridge performance program; innovative bridge 
                            research and deployment program.
Sec. 5204. Technology deployment.
Sec. 5205. Training and education.
Sec. 5206. Advanced travel forecasting procedures program.
  Subtitle C--Multimodal Research Programs; Scholarship Opportunities

Sec. 5301. University transportation research.
Sec. 5302. Multimodal research program.
Sec. 5303. Commercial remote sensing products.
Sec. 5304. Transportation scholarship opportunities program.
              Subtitle D--Transportation Data and Analysis

Sec. 5401. Bureau of transportation statistics.
        Subtitle E--Intelligent Transportation Systems Research

Sec. 5501. Short title.
Sec. 5502. Goals and purposes.
Sec. 5503. General authorities and requirements.
Sec. 5504. National architecture and standards.
Sec. 5505. Research and development.
Sec. 5506. Use of funds.
Sec. 5507. Definitions.
Sec. 5508. Repeal.
        TITLE VI--TRANSPORTATION PLANNING; INTERMODAL FACILITIES

Sec. 6001. Transportation planning.
Sec. 6002. Intermodal passenger facilities.
                        TITLE VII--MISCELLANEOUS

                         Subtitle A--Railroads

Sec. 7101. Rail corridor planning.
Sec. 7102. High speed rail authorizations.
      Subtitle B--Miscellaneous Technical Corrections to Title 49

Sec. 7201. Correction of obsolete references to Interstate Commerce 
                            Commission.
             Subtitle C--Hazardous Material Transportation

Sec. 7301. Definitions.
Sec. 7302. Representations and tampering with hazardous material- 
                            packaging.
Sec. 7303. Hazardous material transportation safety and security.
Sec. 7304. Administrative authority for transportation service and --
                            infrastructure assurance research.
Sec. 7305. Postal Service Civil Penalty Authority.
Sec. 7306. Registration.
Sec. 7307. Shipping paper retention.
Sec. 7308. Planning and training grants.
Sec. 7309. Enforcement.
Sec. 7310. Penalties.
Sec. 7311. Emergency waiver of preemption.
Sec. 7312. Judicial review.
                Subtitle D--Sanitary Food Transportation

Sec. 7401. Short title.
Sec. 7402. Responsibilities of the Secretary of Health and Human 
                            Services.
Sec. 7403. Department of Transportation Requirements.
Sec. 7404. Effective date of the subtitle.
              Subtitle E--Sport Fishing and Boating Safety

Sec. 7501. Sport fish restoration account amendments.
TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

Sec. 8101. Discretionary spending categories.
Sec. 8102. Level of obligation limitations.
Sec. 8103. Effectiveness of title.
         TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

Sec. 9001. Short title; amendment of 1986 Code.
Sec. 9002. Extension of highway-related taxes and trust fund.
Sec. 9003. Extension of tax benefits for alcohol fuels.
Sec. 9004. Private activity bonds for surface transportation 
                            infrastructure.
Sec. 9005. All alcohol fuel taxes transferred to highway trust fund.
Sec. 9006. Transfer from highway trust fund to boat safety account.
Sec. 9007. Extension of small-engine fuel taxes transferred to sport --
                            fish restoration account.
Sec. 9008. Technical correction.
Sec. 9009. Transfer by registered pipeline, vessel, or barge required 
                            for fuel tax exemption of bulk transfers to 
                            registered terminals or refineries; display 
                            of registration requirement.
Sec. 9010. Returns filed electronically.
Sec. 9011. Civil penalty for refusal of entry.
Sec. 9012. Requirement of tax payment decal; elimination of installment 
                            payments of highway use tax.
Sec. 9013. Additional rules regarding inspections of records.-

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Metropolitan planning organization.--The term 
        ``metropolitan planning organization'' has the meaning such 
        term has under section 5203(b) of title 49, United States Code, 
        as added by section 6001 of this Act.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (3) Transportation equity act for the 21st century.--The 
        term ``Transportation Equity Act for the 21st Century'' means 
        the Transportation Equity Act for the 21st Century, Public Law 
        105-178, as amended by the TEA 21 Restoration Act, title IX of 
        Public Law 105-206.

                     TITLE I--FEDERAL-AID HIGHWAYS

                          Subtitle A--Funding

SEC. 1101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account):
            (1) Interstate maintenance program.--For the Interstate 
        maintenance program under section 119 of title 23, United 
        States Code, $4,100,000,000 for fiscal years 2004 and 2005, 
        $4,200,000,000 for fiscal year 2006, $4,400,000,000 for fiscal 
        year 2007, $4,500,000,000 for fiscal year 2008, and 
        $4,700,000,000 for fiscal year 2009.
            (2) National highway system.--For the National Highway 
        System under section 103 of such title $5,000,000,000 for 
        fiscal years 2004 and 2005, $5,100,000,000 for fiscal year 
        2006, $5,200,000,000 for fiscal year 2007, $5,400,000,000 for 
        fiscal year 2008, and $5,500,000,000 for fiscal year 2009.
            (3) Bridge program.--For the bridge program under section 
        144 of such title $3,400,000,000 for fiscal year 2004, 
        $3,500,000,000 for fiscal year 2005, $3,700,000,000 for fiscal 
        year 2006, $3,800,000,000 for fiscal year 2007, $3,900,000,000 
        for fiscal year 2008, and $4,000,000,000 for fiscal year 2009.
            (4) Surface transportation program.--For the surface 
        transportation program under section 133 of such title 
        $5,102,000,000 for fiscal year 2004, $5,202,000,000 for fiscal 
        year 2005, $5,402,000,000 for fiscal year 2006, $5,514,000,000 
        for fiscal year 2007, $5,714,000,000 for fiscal year 2008, and 
        $5,807,000,000 for fiscal year 2009.
            (5) Congestion mitigation and air quality improvement 
        program.--For the congestion mitigation and air quality 
        improvement program under section 149 of such title 
        $1,100,000,000 for fiscal year 2004, $1,462,000,000 for fiscal 
        year 2005, $1,500,000,000 for fiscal year 2006, $1,600,000,000 
        for fiscal years 2007 through 2009.
            (6) Highway safety improvement program.--For the highway 
        safety improvement program under section 150 of such title 
        $1,000,000,000 for fiscal year 2004, $1,100,000,000 for fiscal 
        year 2005, $1,200,000,000 for fiscal year 2006, $1,300,000,000 
        for fiscal year 2007, $1,400,000,000 for fiscal year 2008, and 
        $1,500,000,000 for fiscal year 2009.
            (7) Appalachian development highway system program.--For 
        the Appalachian development highway system program under 
        section 201 of the Appalachian Regional Development Act of 1965 
        (40 U.S.C. App.) $450,000,000 for each of fiscal years 2004 
        through 2009.
            (8) Recreational trails program.--For the recreational 
        trails program under section 206 of such title $60,000,000 for 
        each of fiscal years 2004 through 2009.
            (9) Federal lands highways program.--
                    (A) Indian reservation roads.--For Indian 
                reservation roads under section 204 of such title 
                $333,000,000 for each of fiscal years 2004 through 
                2009.
                    (B) Recreation roads.--For recreation roads under 
                section 204 of such title $50,000,000 for each of 
                fiscal years 2004 through 2009.
                    (C) Park roads and parkways.--For park roads and 
                parkways under section 204 of such title, $300,000,000 
                for fiscal year 2004, $310,000,000 for fiscal year 
                2005, and $320,000,000 for each of fiscal years 2006 
                through 2009.
                    (D) Refuge roads.--For refuge roads under section 
                204 of such title $30,000,000 for each of fiscal years 
                2004 through 2009.
                    (E) Forest highways.--For forest highways under 
                section 204 of such title $200,000,000 for each of 
                fiscal years 2004 through 2009.
                    (F) Safety.--For safety under section 204 of such 
                title $40,000,000 for each of fiscal years 2004 through 
                2009.
            (10) Multi-state corridor planning program.--For the multi-
        state corridor planning program under section 1806 of this Act 
        $76,500,000 for fiscal year 2004 and $84,000,000 for each of 
        fiscal years 2005 through 2009.
            (11) Border planning, operations, and technology program.--
        For the border planning, operations, and technology program 
        under section 1807 of this Act $76,500,000 for fiscal year 2004 
        and $84,000,000 for each of fiscal years 2005 through 2009.
            (12) National scenic byways program.--For the national 
        scenic byways program under section 162 of title 23, United 
        States Code, $31,500,000 for each of fiscal years 2004 through 
        2009.
            (13) Intelligent transportation systems performance 
        incentive program.--For carrying out the intelligent 
        transportation systems performance incentive program under 
        section 1703 of this Act, $135,000,000 for each of fiscal years 
        2004 through 2009.
            (14) Highway use tax evasion projects.--For highway use tax 
        evasion projects under section 143 of such title, $26,550,000 
        for fiscal year 2004, $54,500,000 for each of fiscal years 2005 
        and 2006, $44,500,000 for fiscal year 2007, and $11,000,000 for 
        each of fiscal years 2008 and 2009.
            (15) Commercial vehicle information systems and networks 
        deployment.--For carrying out the Commercial Vehicle 
        Information Systems and Networks Deployment program under 
        section 1704 of this Act, $25,000,000 for each of fiscal years 
        2004 through 2009.
            (16) Infrastructure performance and maintenance program.--
        For carrying out the infrastructure performance and maintenance 
        program under section 1201 of this Act, $1,000,000,000 for each 
        of fiscal years 2004 through 2009.

SEC. 1102. OBLIGATION CEILING.

    (a) General Limitation.--Notwithstanding any other provision of 
law, but subject to subsections (f) and (g), the obligations for 
Federal-aid highway and highway safety construction programs shall not 
exceed--
            (1) $29,293,948,000 for fiscal year 2004;
            (2) $30,265,000,000 for fiscal year 2005;
            (3) $31,326,000,000 for fiscal year 2006;
            (4) $32,257,000,000 for fiscal year 2007;
            (5) $33,104,000,000 for fiscal year 2008; and
            (6) $33,903,000,000 for fiscal year 2009.
    (b) Exceptions.--The limitations under subsection (a) shall not 
apply to obligations under--
            (1) section 125 of title 23, United States Code;
            (2) section 147 of the Surface Transportation Assistance 
        Act of 1978;
            (3) section 9 of the Federal-Aid Highway Act of 1981;
            (4) sections 131(b) and 131(j) of the Surface 
        Transportation Assistance Act of 1982;
            (5) sections 149(b) and 149(c) of the Surface 
        Transportation and Uniform Relocation Assistance Act of 1987;
            (6) sections 1103 through 1108 of the Intermodal Surface 
        Transportation Efficiency Act of 1991;
            (7) section 157 of title 23, United States Code, as in 
        effect on the day before the date of enactment of the 
        Transportation Equity Act for the 21st Century;
            (8) section 105 of title 23, United States Code (but, for 
        each of fiscal years 2004 through 2009), 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) reserve obligation authority provided by subsection (a) 
        for such fiscal year for amounts authorized for administrative 
        expenses, programs funded from the administrative takedown 
        authorized by section 104(a) of title 23, United States Code, 
        the infrastructure performance and maintenance program, and for 
        each of the programs that are allocated by the Secretary under 
        this Act and title 23, United States Code;
            (2) reserve the obligation authority provided by subsection 
        (a) less the amounts reserved under paragraph (1) for section 
        201 of the Appalachian Regional Development Act of 1965, and 
        $2,000,000,000 for such fiscal year under section 105 of such 
        title (relating to minimum guarantee); and
            (3) distribute the obligation authority provided by 
        subsection (a) less the aggregate amounts not reserved under 
        paragraph (1) and (2) 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 a State will not 
obligate the amount distributed during that fiscal year and 
redistribute sufficient amounts to those States able to obligate 
amounts in addition to those previously distributed during that fiscal 
year, giving priority to those States having large unobligated balances 
of funds apportioned under sections 104 and 144 of title 23, United 
States Code.
    (e) Applicability of Obligation Limitations to Transportation 
Research Programs.--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 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.
    (f) Special Rule.--Obligation authority distributed for a fiscal 
year under subsection (c)(2) for a section set forth in subsection 
(c)(2) 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.
    (g) Adjustment in Obligation Limit.--Limitations on obligations 
imposed by subsection (a) for a fiscal year shall be adjusted by an 
amount equal to the amount determined pursuant to section 251(b)(1)(B) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 for 
such fiscal year, as amended by this Act. Any such adjustment shall be 
distributed in accordance with this section.
    (h) 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) $350,000,000 for fiscal year 2004;
            (2) $380,000,000 for fiscal year 2005;
            (3) $400,000,000 for fiscal year 2006;
            (4) $420,000,000 for fiscal year 2007;
            (5) $440,000,000 for fiscal year 2008; and
            (6) $460,000,000 for fiscal year 2009.

SEC. 1103. APPORTIONMENTS.

    (a) Administrative Expenses.--Section 104(a) of title 23, United 
States Code, as amended by this Act, is further amended in paragraph 
(1) by striking ``1 1/6'' and inserting ``1.4''.
    (b) Metropolitan Planning.--Section 104(f) of title 23, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``not to exceed''; and by 
        striking ``authorized under this title'' and inserting 
        ``identified in such subsection, except for the Federal lands 
        highway program and the Appalachian development highway 
        program'';
            (2) in paragraph (2), by striking ``per centum'' and 
        inserting ``percent'';
            (3) in paragraph (3), by striking ``These funds shall be 
        matched in accordance with section 120(b) unless the Secretary 
        determines that the interests of the Federal-aid highway 
        program would be best served without such matching.'' and 
        inserting ``Any funds that are not used to carry out section 
        134 of this title may be made available by a metropolitan 
        planning organization to the State to fund activities under 
        section 135.''; and
            (4) by adding the following after paragraph (5):
            ``(6) Federal share.--Funds apportioned to a State under 
        this subsection shall be matched in accordance with section 
        120(b) unless the Secretary determines that the interests of 
        the Federal-aid highway program would be best served without 
        such matching.''.
    (c) State Defined.--Section 1103(n) of the Transportation Equity 
Act for the 21st Century (Public Law 105-178) is repealed.
    (d) Executive Office Complex.--Section 104 of title 23, United 
States Code, is amended by adding after subsection (q), as added by 
this Act, the following:
    ``(r) Executive Office Complex.--On October 1 of each fiscal year 
for fiscal years 2004 through 2009, the Secretary, after making the 
deductions authorized by subsections (a) and (f), shall set aside 
$2,000,000 for each of fiscal years 2004 through 2006, $14,000,000 for 
each of fiscal years 2007 and 2008, and $7,000,000 for fiscal year 2009 
of the remaining funds authorized to be appropriated under subsection 
(b)(3) for the preferred option determined by a study for highway 
access near the Executive Office complex.''.
    (e) Alaska Highway.--Section 104(b)(1)(A) of title 23, United 
States Code, is amended by striking ``$18,800,000 for each of fiscal 
years 1998 through 2002 for the Alaska Highway'' and substituting 
``$18,800,000 for each of fiscal years 2004 through 2009 for the Alaska 
Highway''.

SEC. 1104. MINIMUM GUARANTEE.

    Section 105 of title 23, United States Code, is amended to read as 
follows:
``Sec. 105. Minimum guarantee
    ``(a) General Rule.--For each of fiscal years 2004 through 2009, 
the Secretary shall allocate among the States amounts sufficient to 
ensure that each State's percentage of the total apportionments for 
such fiscal year of Interstate maintenance, national highway system, 
bridge, congestion mitigation and air quality improvement, surface 
transportation, highway safety improvement, minimum guarantee, 
Appalachian development highway system, infrastructure performance and 
maintenance, and recreational trails programs shall equal the 
percentage listed for each State in subsection (b). The minimum amount 
allocated to a State listed in subsection (b) under this section for a 
fiscal year shall be $1,000,000.
    ``(b) State Percentages.--The percentage referred to in subsection 
(a) for a State shall be determined in accordance with the following 
table:

``States:                                                   Percentage:
        Alabama............................................     2.0269 
        Alaska.............................................     1.1915 
        Arizona............................................     1.5581 
        Arkansas...........................................     1.3214 
        California.........................................     9.1962 
        Colorado...........................................     1.1673 
        Connecticut........................................     1.5186 
        Delaware...........................................     0.4424 
        District of Columbia...............................     0.3956 
        Florida............................................     4.6176 
        Georgia............................................     3.5104 
        Hawaii.............................................     0.5177 
        Idaho..............................................     0.7718 
        Illinois...........................................     3.3819 
        Indiana............................................     2.3588 
        Iowa...............................................     1.2020 
        Kansas.............................................     1.1717 
        Kentucky...........................................     1.7365 
        Louisiana..........................................     1.5900 
        Maine..............................................     0.5263 
        Maryland...........................................     1.5087 
        Massachusetts......................................     1.8638 
        Michigan...........................................     3.1535 
        Minnesota..........................................     1.4993 
        Mississippi........................................     1.2186 
        Missouri...........................................     2.3615 
        Montana............................................     0.9929 
        Nebraska...........................................     0.7768 
        Nevada.............................................     0.7248 
        New Hampshire......................................     0.5163 
        New Jersey.........................................     2.5816 
        New Mexico.........................................     0.9884 
        New York...........................................     5.1628 
        North Carolina.....................................     2.8298 
        North Dakota.......................................     0.6553 
        Ohio...............................................     3.4257 
        Oklahoma...........................................     1.5419 
        Oregon.............................................     1.2183 
        Pennsylvania.......................................     4.9887 
        Rhode Island.......................................     0.5958 
        South Carolina.....................................     1.5910 
        South Dakota.......................................     0.7149 
        Tennessee..........................................     2.2646 
        Texas..............................................     7.2131 
        Utah...............................................     0.7831 
        Vermont............................................     0.4573 
        Virginia...........................................     2.5627 
        Washington.........................................     1.7875 
        West Virginia......................................     1.1319 
        Wisconsin..........................................     1.9916 
        Wyoming............................................     0.6951.
    ``(c) Special Rule.--The Secretary shall allocate to Puerto Rico 
$1,000,000 for each of fiscal years 2004 through 2009. Such amounts 
shall be subject to the provisions in paragraph (d) of this section.
    ``(d) Treatment of Funds.--
            ``(1) Programmatic distribution.--The Secretary shall 
        apportion 50 percent of the amounts made available under this 
        section so that the amount apportioned to each State under this 
paragraph for each program referred to in subsection (a) (other than 
metropolitan planning, minimum guarantee, Appalachian development 
highway system, infrastructure performance and maintenance, and 
recreational trails programs) is equal to the amount determined by 
multiplying the amount to be apportioned under this paragraph by the 
ratio that--
                    ``(A) the amount of funds apportioned to each State 
                for each program referred to in subsection (a) (other 
                than metropolitan planning, minimum guarantee, 
                Appalachian development highway system, infrastructure 
                performance and maintenance, and recreational trails 
                programs) for a fiscal year; bears to
                    ``(B) the total amount of funds apportioned to each 
                State for all such programs for such fiscal year.
            ``(2) Remaining distribution.--The Secretary shall allocate 
        the remainder of funds made available under this section to the 
        States for use in accordance with section 133; except that 
        requirements of paragraphs (1) and (2) of section 133(d) shall 
        not apply to amounts apportioned pursuant to this paragraph.
    ``(e) Authorization.--There are authorized to be appropriated out 
of the Highway Trust Fund (other than the Mass Transit Account) such 
sums as may be necessary to carry out this section for each of fiscal 
years 2004 through 2009.
    ``(f) Guarantee of 90.5 Percentage Return.--
            ``(1) In general.--Before making any apportionment under 
        this title for each of fiscal years 2004 through 2009, the 
        Secretary shall adjust the percentages in the table in 
        subsection (b) to reflect the estimated percentage of estimated 
        tax payments attributable to highway users in each State paid 
        into the Highway Trust Fund (other than the Mass Transit 
        Account) in the latest fiscal year for which data is available, 
        to ensure that no State's percentage return from such Trust 
        Fund is less than 90.5 percent of the State's percentage 
        contribution.
            ``(2) Conforming adjustments.--After making any adjustments 
        under paragraph (1) for a fiscal year, the Secretary shall 
        adjust the remaining percentages in the table set forth in 
        subsection (b) to ensure that the total of the percentages in 
        the table, as adjusted, do not exceed 100 percent for such 
        fiscal year.
            ``(3) Limitation on adjustments.--After making any 
        adjustments under paragraph (2) for a fiscal year, the 
        Secretary shall determine whether or not any State's percentage 
        return from the Highway Trust Fund (other than the Mass Transit 
        Account) is less than 90.5 percent of the State's percentage 
        contribution to the Highway Trust fund as a result of such 
        adjustments and shall adjust the percentages in the table for 
        such fiscal year accordingly. Adjustments of the percentages in 
        the table under this paragraph may not result in the total of 
        such percentages exceeding 100 percent.
            ``(4) Rate of return.--A State's percentage return for such 
        fiscal year shall be in the ratio that--
                    ``(A) the quotient obtained by dividing the total 
                amount of funds apportioned to each State, except 
                Puerto Rico, for the current fiscal year for Interstate 
                maintenance, national highway system, bridge, 
                congestion mitigation and air quality improvement, 
                surface transportation, minimum guarantee, highway 
                safety improvement, Appalachian development highway 
                system, infrastructure performance and maintenance, and 
                recreational trails programs by the total amount of 
                funds apportioned for such programs in all States, 
                except Puerto Rico, for the current fiscal year; bears 
                to
                    ``(B) the quotient obtained by dividing the 
                estimated tax payments attributable to highway users in 
                each State paid into the Highway Trust Fund (other than 
                the Mass Transit Account) in the latest fiscal year for 
                which data are available by the estimated tax payments 
                attributable to highway users in all States paid into 
                the Highway Trust Fund (other than the Mass Transit 
                Account) for such fiscal year.''.

SEC. 1105. REVENUE ALIGNED BUDGET AUTHORITY (RABA) -- AMENDMENTS.

    Section 110 of title 23, United States Code, is amended--
            (1) in subsections (a)(1) and (a)(2), by striking ``2000'' 
        and inserting ``2006'';
            (2) in subsection (a)(2), by striking ``the succeeding'' 
        and inserting ``that'', and by striking ``and the motor carrier 
        safety grant program'';
            (3) in subsection (b)(1)(A), by striking ``and the motor 
        carrier safety grant program'' and by striking ``, the 
        Transportation Equity Act for the 21st Century, and subchapter 
        I of chapter 311 of title 49'' after ``under this title'' and 
        insert ``and the Safe, Accountable, Flexible, and Efficient 
        Transportation Equity Act of 2003'';
            (4) in subsection (c), by inserting ``the highway safety 
        improvement program,'' after ``the surface transportation 
        program,''; and
            (5) by striking subsections (e), (f), and (g).

                        Subtitle B--New Programs

SEC. 1201. INFRASTRUCTURE PERFORMANCE AND MAINTENANCE PROGRAM.

    (a) Establishment.--The Secretary shall establish and implement an 
Infrastructure Performance and Maintenance Program in accordance with 
this section.
    (b) Eligible Projects.--
            (1) In general.--A State may obligate funds apportioned to 
        it under this section only for highway projects eligible under 
        the Interstate Maintenance Program, the National Highway System 
        Program, and the Surface Transportation Program that will--
                    (A) cost-effectively preserve, maintain, or 
                otherwise extend the useful life of existing highway 
                infrastructure elements; or
                    (B) provide operational improvements, including 
                traffic management and intelligent transportation 
                system strategies and limited capacity enhancements, at 
                points of recurring highway congestion.
            (2) Transfer prohibition.--Notwithstanding sections 104 and 
        126 of title 23, United States Code, funds apportioned under 
        this section shall not be transferred to another Federal agency 
        or program.
    (c) Apportionment of Infrastructure Performance and Maintenance 
Program Funds.--
            (1) In general.--On October 1 of each fiscal year the 
        Secretary shall apportion to the States the funds authorized to 
        be appropriated to carry out this section in accordance with 
        the following formula:
                    (A) 25 percent of the apportionments in the ratio 
                that--
                            (i) the total lane miles of Federal-aid 
                        highways in each State; bears to
                            (ii) the total lane miles of Federal-aid 
                        highways in all States.
                    (B) 40 percent of the apportionments in the ratio 
                that--
                            (i) the total vehicle miles traveled on 
                        lanes on Federal-aid highways in each State; 
                        bears to
                            (ii) the total vehicle miles traveled on 
                        lanes on Federal-aid highways in all States.
                    (C) 35 percent of the apportionments in the ratio 
                that--
                            (i) the estimated tax payments attributable 
                        to highway users in each State paid into the 
                        Highway Trust Fund (other than the Mass Transit 
                        Account) in the latest fiscal year for which 
                        data are available; bears to
                            (ii) the estimated tax payments 
                        attributable to highway users in all States 
                        paid into the Highway Trust Fund (other than 
                        the Mass Transit Account) in the latest fiscal 
                        year for which data are available.
            (2) Minimum apportionment.--Notwithstanding paragraph (1), 
        each State shall receive a minimum of \1/2\ of 1 percent of the 
        funds apportioned under this paragraph.
    (d) Contract Authority.--Funds authorized to be appropriated under 
section 1101(a)(16) of this Act to carry out this section shall be 
available for obligation in the same manner as if such funds were 
apportioned under chapter 1 of title 23, United States Code, except 
that such funds shall remain available for obligation only as provided 
in subsection (e); shall not be subject to any deduction or set aside 
requirement; and shall not be transferred to another Federal agency or 
program in accordance with subsection (b)(2).-
    (e) Period of Availability.--
            (1) Obligation within 6 months.--Funds apportioned to a 
        State under this section must be obligated by such State within 
        6 months of the date of apportionment. Any amounts that remain 
        unobligated at the end of that period shall be reapportioned in 
        accordance with subsection (f).
            (2) One year.--All funds apportioned or reapportioned under 
        this section shall remain available for obligation until the 
        last day of the fiscal year in which they are apportioned. Any 
        amounts apportioned that remain unobligated at the end of the 
        fiscal year shall lapse.
    (f) Redistribution of Apportioned Funds and Obligation Authority.--
Six months after the date of apportionment or as soon thereafter as 
feasible in each fiscal year, the Secretary shall withdraw any funds 
apportioned to a State under this section that remain unobligated, 
along with an equal amount of obligation authority provided for the use 
of such funds pursuant to section 1102(c) of this Act, and shall 
reapportion such funds and redistribute such obligation authority to 
those States that have fully obligated all amounts apportioned under 
this section in such fiscal year and that demonstrate they are able to 
obligate additional amounts for projects eligible under this section 
before the end of the fiscal year. The calculation and distribution of 
funds under section 105 of title 23, United States Code, shall not be 
adjusted as a result of the reapportionment of funds under this 
subsection.
    (g) Federal Share Payable.--The Federal share payable for a project 
funded under this section shall be determined in accordance with the 
provisions of section 120 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.

SEC. 1202. CLARIFY FEDERAL-AID ELIGIBILITY FOR SECURITY PROJECTS.

    Section 101 of title 23, United States Code, is amended--
            (1) by striking the word ``and'' at the end of paragraph 
        (a)(3)(G);
            (2) by striking the period at the end of paragraph 
        (a)(3)(H) and inserting ``; and'';
            (3) by adding the following at the end of paragraph 
        (a)(3)(H):
                                    ``(I) improvements directly related 
                                to homeland security for detection, 
                                preparedness, prevention, response, and 
                                recovery.''; and
            (4) by inserting the words ``protection and'' after the 
        words ``means the'' and by inserting ``, secure,'' after the 
        word ``safe'' in section (a)(14).

SEC. 1203. FUTURE OF THE INTERSTATE HIGHWAY SYSTEM.

    (a) Declaration of Policy.--Section 101 of title 23, United States 
Code, is amended by striking subsection (b) and inserting the 
following:
    ``(b) It is hereby declared to be in the national interest to 
accelerate the construction and reconstruction of the Federal-aid 
highway systems since many of such highways, or portions thereof, are 
in fact inadequate to meet the needs of local and interstate commerce 
and national and civil defense.
    ``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 (hereafter referred to as the 
``Interstate System'') to meet the nation's needs for the 21st Century. 
Urban and long distance personal travel and freight movement demands 
continue to grow. Travel demand patterns will remain dynamic. Continued 
planning for and investment in the Interstate System is critical to 
assure it adequately meets the changing travel demands of the future. 
The Interstate System must be safe, efficient, and reliable and must 
ensure national and interregional personal mobility, the flow of 
interstate commerce, and travel movements essential for national 
security. To the maximum extent possible, actions under this title 
should address congestion and freight transportation to provide for a 
strong and vigorous national economy. Special emphasis should be 
devoted to providing safe and efficient access for the type and size of 
commercial and military vehicles that access designated National 
Highway System intermodal freight terminals.
    ``The Interstate System is further declared to be the nation's 
premiere highway system, essential for the nation's economic vitality, 
national security, and general welfare. The Secretary is directed to 
take appropriate actions to preserve and enhance the Interstate System 
to meet the needs of the 21st Century.''.

SEC. 1204. MILITARY VEHICLE ACCESS (OVERSIZE AND OVERWEIGHT VEHICLES; 
              RELIEF FROM TOLLS).

    (a) Procedures on Military Vehicle Access.--The Secretary of 
Transportation is authorized to issue, in consultation with the 
Secretary of Defense and the Secretary of Homeland Security, procedures 
and orders that will expedite the highway movement of all marked 
military vehicles and convoys. The procedures shall specifically 
address the expedited movement of marked military vehicles, including 
the establishment of temporary vehicle size and weight limits in excess 
of Federal and local maximum limits, expedited oversize/overweight 
permits, and exemptions from payment of local tolls and expedited 
movement through toll facilities.
    (b) Preemption.--A law, regulation, order, ruling, provision, or 
other requirement of a State, territory, Indian tribe, or political 
subdivision thereof, which covers the vehicles and movements described 
in paragraph (a) and which is not consistent with the procedures or 
related limitations established by the Secretary under that paragraph, 
is preempted. The Secretaries of Transportation, Homeland Security, and 
Defense, may request the Attorney General to bring a civil action 
seeking appropriate relief respecting the effect of such laws, 
regulations, orders, rulings, provisions or other requirements in any 
court of competent jurisdiction. Nothing in this section shall be 
construed as limiting claims or remedies otherwise available under law 
or equity.
    (c) Exemption From Administrative Procedure Act.--A procedure 
established by the Secretary under paragraph (a) shall be exempt from 
the provisions of 5 U.S.C. 553.

SEC. 1205. FREIGHT TRANSPORTATION GATEWAYS; FREIGHT INTERMODAL 
              CONNECTIONS.

    (a) Freight Transportation Gateways.--Chapter 3 of title 23, United 
States Code, is amended by adding after section 324 the following new 
section:
``Sec. 325. Freight transportation gateways
    ``(a) In General.--
            ``(1) Establishment.--The Secretary shall establish a 
        freight transportation gateways program to improve 
        productivity, security, and safety of freight transportation 
        gateways, while mitigating congestion and community impacts in 
        the area of such gateways.
            ``(2) Purposes.--The purposes of the freight transportation 
        gateways program shall be--
                    ``(A) to facilitate and support multimodal freight 
                transportation initiatives at the State and local 
                levels in order to improve freight transportation 
                gateways and mitigate the impact of congestion on the 
                environment in the area of such gateways;
                    ``(B) to provide capital funding to address 
                infrastructure and freight operational needs at freight 
                transportation gateways;
                    ``(C) to encourage adoption of new financing 
                strategies to leverage State, local, and private 
                investment in freight transportation gateways; and
                    ``(D) to support military mobilization and 
                readiness.
    ``(b) State Responsibilities.--
            ``(1) Project development process.--Each State shall ensure 
        that intermodal freight transportation, trade facilitation, and 
        economic development needs are adequately addressed and fully 
        integrated into the project development process, including 
        transportation planning, through final design and construction 
        of freight related transportation projects.
            ``(2) Freight transportation coordinator position.--Each 
        State shall designate a freight transportation coordinator. The 
        coordinator shall be responsible for fostering public and 
        private sector collaboration needed to implement complex 
        solutions to freight transportation and freight transportation 
        gateway problems, including coordination of metropolitan and 
        statewide transportation activities with trade and economic 
        interests and coordination with other States, local Department 
        of Defense officials, local Department of Homeland Security 
        officials, agencies, and organizations to find regional 
        solutions to freight transportation problems. The coordinator 
        shall also be responsible for advancing freight professional 
        capacity building programs for the State.
    ``(c) Innovative Finance.--States and localities are encouraged to 
adopt innovative financing strategies for freight transportation 
gateway improvements, including new user fees; modifications to 
existing user fees, including trade facilitation charges; revenue 
options that incorporate private sector investment; and a blending of 
Federal-aid and innovative finance programs. The Secretary shall 
provide technical assistance to States and localities with respect to 
such strategies.
    ``(d) Intermodal Freight Transportation Projects.--
            ``(1) Use of surface transportation program funds.--A State 
        may obligate funds apportioned to it under section 104(b)(3) of 
        this title for publicly owned intermodal freight transportation 
        projects that provide community and highway benefits by 
        addressing economic, congestion, security, safety, and 
        environmental issues associated with freight transportation 
        gateways.
            ``(2) Eligible projects.--Projects eligible for funding 
        under this section--
                    ``(A) may include publicly-owned intermodal freight 
                transfer facilities, access to such facilities, and 
                operational improvements for such facilities (including 
                capital investment for Intelligent Transportation 
                Systems), except that projects located within the 
                boundaries of port terminals shall only include the 
                transportation infrastructure modifications necessary 
                to facilitate direct intermodal access into and out of 
                such port; and
                    ``(B) may involve the combining of private and 
                public sector funds.''.-
    (b) Eligibility for Surface Transportation Program Funds.--Section 
133(b) of title 23, United States Code, is amended by adding at the end 
the following new paragraph:
            ``(15) Intermodal freight transportation projects in 
        accordance with section 325(d)(2) of this title.''.
    (c) Freight Intermodal Connections to NHS.--Section 103(b) of such 
title, is amended by adding at the end the following new paragraph:
            ``(7) Freight intermodal connections to the nhs--
                    ``(A) Funding set-aside.--Of the funds apportioned 
                to a State in each fiscal year under section 104(b)(1) 
                of this title, an amount determined in accordance with 
                subparagraph (B) of this paragraph shall only be 
                available to such State to be obligated for projects 
                on--
                            ``(i) National Highway System routes 
                        connecting to intermodal freight terminals 
                        identified according to criteria set forth in 
                        the report to Congress entitled ``Pulling 
                        Together: The National Highway System and its 
                        Connections to Major Intermodal Terminals'' 
                        dated May 24, 1996, referenced in paragraph (1) 
                        of this subsection, and any modifications to 
                        these connections consistent with paragraph (4) 
                        of this subsection, and
                            ``(ii) Strategic Highway Network (STRAHNET) 
                        connectors to strategic military deployment 
                        ports.
                    ``(B) Determination of amount.--The amount of funds 
                for each State in a fiscal year that shall be set aside 
                pursuant to subparagraph (A) of this paragraph shall 
                be--
                            ``(i) equal to the total amount of funds 
                        apportioned to such State under section 
                        104(b)(1) of this title multiplied by the 
                        percentage of miles that routes set forth in 
                        subparagraph (A) of this paragraph constitute 
                        of the total miles on the National Highway 
                        System in such State, or
                            ``(ii) two percent of the annual 
                        apportionment to the State of funds under 
                        104(b)(1), whichever is greater.
                    ``(C) Exemption from set-aside.--In any fiscal 
                year, a State may obligate the funds otherwise set 
                aside by this paragraph on any project which is both 
                eligible under paragraph (6) of this subsection and 
                located in such State on a segment of the National 
                Highway System set forth in paragraph (2) of this 
                subsection if such State certifies and the Secretary 
                concurs that--
                            ``(i) the routes described in subparagraph 
                        (A) of this paragraph are in good condition and 
                        provide an adequate level of service for 
                        military vehicle and civilian commercial 
                        vehicle use, and
                            ``(ii) significant needs on such routes are 
                        being met or do not exist.''.
    (d) Definitions and Declaration of Policy.--Section 101(a) of such 
title is amended by redesignating paragraphs (11) through (37) as 
paragraphs (12) through (38), respectively, and inserting new paragraph 
(11) as follows:
            ``(11) Freight transportation gateway.--The term `freight 
        transportation gateway' means a nationally or regionally 
        significant transportation port of entry or hub for domestic 
        and global trade, military mobilization, and includes freight 
        intermodal and Strategic Highway Network connections that 
        provide access to and from these gateways.''.
    (e) Federal Share Payable.--Section 120 of such title is amended by 
adding at the end the following new subsection:
    ``(m) Increased Federal Share for Connectors.--On National Highway 
System intermodal freight connections and Strategic Highway Network 
connectors to strategic military deployment ports described in section 
103(b)(7), the Federal share may be up to 90 percent of the total cost 
of the project.''.
    (f) Length Limitations.--Section 31111(e) of title 49, United 
States Code, is amended by adding at the end ``In the interests of 
economic competitiveness, security, and intermodal connectivity, States 
shall update these qualifying highways within three years of enactment 
of the Safe, Accountable, Flexible, and Efficient Transportation Equity 
Act of 2003 to include Strategic Highway Network connectors to 
strategic military deployment ports and National Highway System 
intermodal freight connections serving military and commercial truck 
traffic going to major intermodal terminals as described in section 
103(b)(7).''.
    (g) Conforming Amendment.--The analysis of chapter 3 of title 23 is 
amended by adding at the end the following:

``325. Freight transportation gateways.''.

SEC. 1206. AUTHORITY FOR ALTERNATIVE TIME-SAVING PROCEDURES FOR 
              CRITICAL TRANSPORTATION SECURITY PROJECTS.

    (a) Critical, time sensitive highway and public transportation 
security projects are projects that are necessary to address an 
imminent threat to the security of a transportation facility or to 
repair damage to a transportation facility caused by a terrorist attack 
against the United States. Such projects shall be identified by the 
Secretary in consultation with the owner-operator of the facility and 
with the Secretary of Homeland Security.
    (b) The Secretary of Transportation shall develop and implement 
expedited procedures for critical, time-sensitive highway and public 
transportation security projects. These procedures shall address 
planning, environmental review, public involvement, acquisition of 
rights-of-way, and contracting, and they shall be developed with the 
concurrence of other affected Federal agencies whose authorities will 
be affected by the procedures and in consultation with any other 
Federal agencies that the Secretary determines have an interest in the 
procedures. For the limited purpose of expediting interim measures 
needed to address an imminent threat to the security of a 
transportation facility, the Secretary may provide that these 
procedures are exclusive of any other statute relating to planning, 
environmental reviews, public involvement, acquisition of right-of-way, 
and contracting, so long as the Secretary determines that such measures 
are necessary for the protection of the public and receives the 
concurrence of any other Federal agency responsible for administering 
such statutes. The Secretary shall issue rules establishing these 
procedures within one year of the enactment of this law.

                          Subtitle C--Finance

SEC. 1301. FEDERAL SHARE.

    Section 120 of title 23, United States Code, is amended--
            (1) in subsection (a), by striking ``shall be 90 percent'' 
        and all that follows through the end of the subsection and 
        inserting ``shall not exceed 90 percent of the total cost of 
        the project.'';
            (2) in subsection (b), by striking ``shall be'' and all 
        that follows through the end of the subsection and inserting 
        ``shall not exceed 80 percent of the total cost of the 
        project.''; and
            (3) by striking subsection (d) and inserting the following:
    ``(d) Increased Federal Share.--The Federal share payable under (a) 
and (b) may be increased in the case of any State containing nontaxable 
Indian lands, public lands (both reserved and unreserved), national 
forests, and national parks and monuments. The Federal share for any 
project subject to this section shall be increased by a percentage of 
the remaining cost equal to the percentage that the area of all such 
lands in a State is of its total area not to exceed 95 percent of the 
total cost of the project. These rates shall be revised as needed based 
on data provided by the Federal agencies responsible for maintaining 
the data.''.

SEC. 1302. TRANSFER OF HIGHWAY AND TRANSIT FUNDS.

    Section 104(m) of title 23, as redesignated by this Act, is amended 
to read as follows:
    ``(m) Transfer of Highway and Transit Funds.--
            ``(1) Transfer of highway funds for transit projects.--
        Funds made available for transit projects or transportation 
        planning under this title may be transferred to and 
        administered by the Secretary in accordance with chapter 53 of 
        title 49, except that the provisions of this title relating to 
        the non-Federal share shall apply to the transferred funds.
            ``(2) Transfer of transit funds for highway projects.--
        Funds made available for highway projects or transportation 
        planning under chapter 53 of title 49 may be transferred to and 
        administered by the Secretary in accordance with this title, 
        except that the provisions of such chapter relating to the non-
        Federal share shall apply to the transferred funds.
            ``(3) Transfer of highway funds to other federal 
        agencies.--Except as provided in paragraphs (1) and (2), when 
        an expenditure is specifically authorized in Federal-aid 
        highway legislation, as a line item in an appropriation act, or 
        when a State transportation department consents to a transfer 
        of funds under this title that are derived from the Highway 
        Trust Fund (other than the Mass Transit account), such funds 
        may be transferred to another Federal agency subject to 
        subparagraphs (A), (B), (C), and (D) of this paragraph--
                    ``(A) if the Secretary determines, after 
                consultation with the State transportation department 
                as appropriate, that another Federal agency should 
                carry out a project with funds made available under 
                this title or any other act that are derived from 
                Highway Trust Fund (other than the Mass Transit 
                account);
                    ``(B) the project will be administered by the 
                Federal agency under its procedures, and such funds 
                shall not be deemed to be an augmentation of that 
                agency's appropriations;
                    ``(C) such other Federal agency agrees to accept 
                the transfer of funds and to administer those funds; 
                and
                    ``(D) the provisions of this title or the acts 
                referred to above relating to the non-Federal share 
                shall apply to the transferred funds, except where the 
                Secretary determines that it is in the best interest of 
                the United States that such share be waived.
            ``(4) Transfer of funds among states or to the federal 
        highway administration.--The Secretary may, at the request of a 
        State, transfer funds apportioned or allocated to such State to 
        another State or to the Federal Highway Administration for the 
        purpose of funding a specific project or projects. The funds 
        transferred shall be used for the same purpose and in the same 
        manner for which they were authorized. Such transfer shall have 
        no effect on any apportionment formula used to distribute funds 
        to the States under sections 104, 105, or 144. Funds that are 
        apportioned or allocated to a State under section 104(b)(3) and 
        attributed to urbanized areas of a State with a population of 
        over 200,000 individuals under section 133(d)(2) may be 
        transferred under this subsection only if the metropolitan 
        planning organization designated for the area concurs, in 
        writing, with the transfer request.
            ``(5) Transfer of obligation authority.--Obligation 
        authority shall be transferred in the same manner and amount as 
        the funds for the projects are transferred under this 
        section.''.

SEC. 1303. STATE INFRASTRUCTURE BANK PILOT 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 assistance.--The term ``other 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 ensure the issuance of letters of credit and 
                credit instruments;
                    (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 101 of title 23, United States Code.
            (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 the written consent between a State and the 
        Secretary which sets forth the manner in which the State 
        Infrastructure Bank will be administered.
            (6) Loan.--The term ``loan'' means any form of direct 
        financial assistance from the State Infrastructure Bank, 
        required to be repaid over a period of time, which is provided 
        to a project sponsor for all or part of project costs.
            (7) Guarantee.--The term ``guarantee'' means a contract or 
        contracts entered into by the State Infrastructure Bank in 
        which the State Infrastructure 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 State Infrastructure Bank funds that 
        must be loaned or used for credit enhancement for purposes 
        limited to highway construction under title 23 or transit 
        capital projects under title 49.
            (9) Leverage.--The term ``leverage'' means a financial 
        structure used to increase State Infrastructure Bank funds 
        through debt issuance. A State Infrastructure Bank is 
        considered leveraged if its total potential liabilities exceed 
        its equity.
    (b) Pilot Program.--
            (1) Cooperative agreements.--Subject to the provisions of 
        this section, the Secretary may enter into cooperative 
        agreements with up to five States, including States that 
        entered into cooperative agreements under section 1511 of the 
        Transportation Equity Act for the 21st Century, as amended, 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.
            (2) Application.--To participate in the pilot program, a 
        State shall submit an application to the Secretary.
            (3) Selection criteria.--In evaluating applications for 
        participation in the pilot program, the Secretary shall 
        establish selection criteria that shall include--
                    (A) the State's ability to provide non-Federal 
                funds to capitalize the bank;
                    (B) the existence of State enabling legislation 
                that clearly allows for full State Infrastructure Bank 
                participation;
                    (C) the State's strategy for encouraging non-
                Federal repayment sources from project sponsors;
                    (D) the amount of Federal funds the State will 
                commit to the State Infrastructure Bank as a percentage 
                of its Federal-aid apportionments;
                    (E) the State's eligibility under section 1511 of 
                the Transportation Equity Act for the 21st Century, as 
                amended; and
                    (F) the State's past experience with a State 
                Infrastructure Bank, including the program established 
                under section 1511 of the Transportation Equity Act for 
                the 21st Century, as amended, or comparable financing 
                mechanisms.
            (4) Termination of cooperative agreement.--If a State that 
        has been selected for this pilot program does not fund its 
        State Infrastructure Bank within 90 days after execution of the 
        cooperative agreement, the Secretary may terminate the 
        cooperative agreement and may select another State to 
        participate in the pilot program in accordance with this 
        subsection.
    (c) Interstate Compacts.--Congress grants consent to 2 or more of 
the States, entering into a cooperative agreement under subsection 
(b)(1) with the Secretary for the establishment of a multi-state 
infrastructure bank, to enter into an interstate compact establishing 
such bank in accordance with this section.
    (d) Funding.--
            (1) Highway account.--Subject to subsection (i), the 
        Secretary may permit a State entering into a cooperative 
        agreement under this section to contribute not to exceed--
                    (A) 10 percent of the funds apportioned to the 
                State for each of fiscal years 2004 through 2009 under 
                each of sections 104(b)(1), 104(b)(3), 104(b)(4), and 
                144, of title 23, United States Code, and
                    (B) 10 percent of the funds allocated to the State 
                for each of such fiscal years under section 105 of such 
                title into the highway account of the infrastructure 
                bank established by the State. Federal funds 
                contributed to such account under this paragraph shall 
                constitute for purposes of this section a 
                capitalization grant for the highway account of the 
                infrastructure bank.
            (2) Transit account.--Subject to subsection (i), the 
        Secretary may permit a State entering into a cooperative 
        agreement under this section, and any other Federal transit 
        grant recipient, to contribute not to exceed 10 percent of the 
        funds made available to the State or other Federal transit 
        grant recipient in each of fiscal years 2004 through 2009 for 
        capital projects under sections 5307, 5309, and 5311 of title 
        49, United States Code, into the transit account of the 
        infrastructure bank established by the State. Federal funds 
        contributed to such account under this paragraph shall 
        constitute for purposes of this section a capitalization grant 
        for the transit account of the infrastructure bank.
            (3) Special rule for urbanized areas of over 200,000.--
        Funds that are attributed to urbanized areas of States with 
        urbanized populations of over 200,000 under section 133(d)(2) 
        of title 23, as amended by this Act, 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.
            (4) Discontinuance of funding.--If the Secretary determines 
        that a State is not implementing the State Infrastructure Bank 
        in accordance with the cooperative agreement, the Secretary may 
        prohibit a State from contributing additional Federal funds to 
        its State Infrastructure Bank.
    (e) Forms of Assistance From Infrastructure Banks.--An 
infrastructure bank established under this section may make loans or 
provide other credit assistance to a public or private entity in an 
amount equal to all or part of the cost of carrying out a project 
eligible for assistance under this section. The amount of any loan or 
other credit assistance provided for such project may be subordinated 
to any other debt financing for the project. Initial assistance 
provided with respect to a project from Federal funds contributed to an 
infrastructure bank under this section may not be made in the form of a 
grant
    (f) Qualifying Projects.--Subject to paragraph (e), funds in an 
infrastructure bank established under this section may be used only to 
provide assistance with respect to projects eligible for assistance 
under title 23, United States Code, for capital projects (as defined in 
section 5302 of title 49, United States Code), or for any other project 
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, each State establishing the 
bank shall--
            (1) contribute, 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 
        contributed to the bank, except that if the contribution is 
        into the highway account of the bank and the State has a lower 
        non-Federal share under section 120(d) of title 23, as amended 
        by this Act, such percentage shall be adjusted by the Secretary 
        to correspond with such lower non-Federal share. The non-
        Federal share must be in the form of cash;
            (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 generated by funds 
        contributed to an account of the bank will be--
                    (A) credited to the account;
                    (B) available for use in providing loans and other 
                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 feasible the project that is the subject of the loan;
            (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 
        under paragraph (5); and
            (7) require the bank to make an annual report to the 
        Secretary on its status, and to make such other reports as the 
        Secretary may require by guidelines.
    (h) Secretarial Requirements.--In administering this section,the 
Secretary shall--
            (1) issue guidelines to ensure that all requirements of 
        title 23, United States Code, or title 49, United States Code, 
        that would otherwise apply to funds made available under such 
        title and projects assisted with such funds apply to--
                    (A) funds made available under such title and 
                contributed to an infrastructure bank established under 
                this section; and
                    (B) projects assisted by the bank through the use 
                of such funds; except to the extent that the Secretary 
                determines that any requirement of such title (other 
                than sections 113 and 114 of title 23 and section 5333 
                of title 49), is not consistent with the objectives of 
                this section; and
            (2) specify procedures and guidelines for establishing, 
        operating, and providing assistance from the bank.
    (i) Applicability of Federal Law to Repayments.--The requirements 
of title 23 and title 49, United States Code, shall apply to projects 
financed from repayments to an infrastructure bank from projects 
assisted by the bank. Such repayments shall be considered to be Federal 
funds for the purpose of this subsection.
    (j) United States Not Obligated.--The contribution 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.
    (k) Management of Federal Funds.--Sections 3335 and 6503 of title 
31, United States Code, shall not apply to funds contributed under this 
section.
    (l) Program Administration.--For each of fiscal years 2004 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. 
This limitation shall not apply to non-Federal funds.

SEC. 1304. TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT 
              (TIFIA) AMENDMENTS.

    (a) Definitions.--Section 181 of title 23, United States Code is 
amended--
            (1) in paragraph (3), by striking ``category'' and 
        ``offered into the capital markets'';
            (2) by striking paragraph (7) and redesignating paragraphs 
        (8) through (15) as paragraphs (7) through (14) respectively;
            (3) by amending paragraph (8)(D), as redesignated, to read 
        as follows--
                    ``(D) a public or private freight rail facility; an 
                intermodal freight transfer facility; access to such 
                facilities; and service improvements for such 
                facilities including capital investment for Intelligent 
                Transportation Systems; or a group of such projects 
                with the common objective of improving the flow of 
                goods, except that projects located within the 
                boundaries of port terminals shall only include the 
                transportation infrastructure modifications necessary 
                to facilitate direct intermodal access into and out of 
                such port. Such a project may involve the combining of 
                private and public sector funds, including investment 
                of public funds in private sector facility 
                improvements.''; and
            (4) in paragraph (10), as redesignated, by striking 
        ``bond'' and inserting ``credit''.
    (b) Determination of Eligibility and Project Selection.--Section 
182 of such title is amended--
            (1) in subsection (a)--
                    (A) 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.'';
                    (B) in paragraph (3)(A)(i), by striking 
                ``$100,000,000'' and inserting ``$50,000,000''; and
                    (C) in paragraph (4), by striking ``Project 
                financing'' and inserting ``The Federal credit 
                instrument'' and by adding at the end of the sentence 
                ``that also secure the project obligations''; and
            (2) in subsection (b)(1), by striking ``criteria'' after 
        ``eligibility'' and inserting ``requirements'' and in 
        subsection (b)(2)(B) by inserting ``, which may be the Federal 
        credit instrument,'' after ``obligations''.
    (c) Secured Loans.--Section 183 of such title is amended--
            (1) in subsection (a)--
                    (A) by striking ``of any project selected under 
                section 182.'' at the end of paragraph (1);
                    (B) by inserting ``of any project selected under 
                section 182'' after ``costs'' in paragraphs (1)(A) and 
                (1)(B); and
                    (C) in paragraph (4), by striking ``funding'' and 
                inserting ``execution'' and by inserting a period in 
                place of the comma after ``receiving an investment 
                grade rating'' and striking all that follows to the end 
                of the paragraph;
            (2) in subsection (b)--
                    (A) by inserting ``the lesser of'' after ``exceed'' 
                and ``or the amount of the senior project obligations'' 
                after ``costs'';
                    (B) by inserting ``that also secure the senior 
                project obligations'' in paragraph (3)(A)(i) after 
                ``sources''; and
                    (C) by striking ``marketable'' in paragraph (4); 
                and
            (3) in subsection (c), by striking paragraph (3) and 
        redesignating paragraphs (4) and (5) as paragraphs (3) and (4) 
        respectively;
    (d) Lines of Credit.--Section 184 of such title is amended--
            (1) in subsection (b)--
                    (A) in paragraph (3), by striking the comma after 
                ``interest'' and by striking ``any debt service reserve 
                fund, and any other available reserve'', and by 
                inserting ``but not including reasonably required 
                financing reserves'';
                    (B) in paragraph (4), by striking ``marketable''; 
                by striking ``on which'' after ``date'' and inserting 
                ``of execution of''; and by striking ``is obligated'' 
                after ``credit'' and inserting ``agreement''; and
                    (C) in paragraph (5)(A)(i), by inserting ``that 
                also secure the senior project obligations'' after 
                ``sources''; and
            (2) in subsection (c)--
                    (A) in paragraph (2) by striking ``scheduled'', by 
                inserting ``be scheduled to'' after ``shall'', and by 
                striking ``be fully repaid, with interest,'' and 
                inserting ``to conclude, with full repayment of 
                principle and interest,''; and
                    (B) by striking paragraph (3).
    (e) Program Administration.--Section 185 of such title is amended 
to read as follows:
``Sec. 185. Program administration
    ``(a) Requirement.--The Secretary shall establish a uniform system 
to service the Federal credit instruments made available under this 
subchapter.
    ``(b) Fees.--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 instruments.
    ``(c) Servicer.--The Secretary may identify a financial entity to 
assist the Secretary in servicing the Federal credit instruments. The 
servicer--
            ``(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 expert firms, including counsel, in the field of municipal 
and project finance to assist in the underwriting and servicing of 
Federal credit instruments.''.
    (f) 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 each of fiscal years 2004 through 
        2009 to carry out this subchapter.
            ``(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 subchapter shall be 
        deemed to be acceptance by the United States of a contractual 
        obligation to fund the Federal credit investment.
            ``(2) Availability.--Amounts authorized under this section 
        for a fiscal year shall be available for obligation on October 
        1 of the fiscal year.
    ``(c) Limitations on Credit Amounts.--For each of fiscal years 2004 
through 2009, principal amounts of Federal credit instruments made 
available shall be limited to $2,600,000,000.''.
    (g) Section 189 of such title is repealed.
    (h) Conforming Amendments.--The analysis of chapter 1 of title 23 
is amended by--
            (1) revising the item relating to section 185 to read as 
        follows:

``185.  Program administration.'';
        and
            (2) striking the item relating to section 189.

SEC. 1305. INTERNATIONAL REGISTRATION PLAN AND INTERNATIONAL FUEL TAX 
              AGREEMENT FACILITATION.

    The Secretary may provide assistance to any State that is 
participating in the International Registration Plan and International 
Fuel Tax Agreement, as provided in sections 31704 and 31705 of title 
49, United States Code, and that serves as a base jurisdiction for 
motor carriers that are domiciled in Mexico, to help the State with 
administration needs resulting from serving as a base jurisdiction for 
motor carriers from Mexico.

SEC. 1306. COMMERCIALIZED REST AREA PILOT PROJECTS.

    (a) In General.--The Secretary shall permit the States to conduct 
pilot projects to acquire, construct, operate, convert, and maintain 
rest areas along Interstate highways in their States in accordance with 
subsection (b).
    (b) Commercial Operations.--
            (1) Eligibility.--Notwithstanding section 111 of title 23 
        United States Code, and the project agreements required by 
        section 111(a) and executed between the States and the Federal 
        Highway Administration, the Secretary shall permit the rest 
        areas in the pilot projects to include commercial operations 
        that provide goods, services, and information that benefit the 
        traveling public and the commercial motor carrier industry, and 
        as deemed appropriate by the States, including--
                    (A) commercial advertising and displays if such 
                advertising and media displays are--
                            (i) exhibited solely within any facility 
                        constructed in the rest area; and
                            (ii) not legible from the main traveled 
                        way;
                    (B) programs to provide commercial vehicle 
                operators with special services designed to enhance 
                motor carrier and highway safety; and
                    (C) State promotional or tourism-oriented items.
            (2) Private operators.--The States may permit such 
        commercial operations to be run by a private operator.
    (c) Participation.--Participation in this pilot project is limited 
to those proposals submitted to the Secretary for approval during the 
one year period after the date of enactment of this Act.
    (d) Proposals.--
            (1) The State proposals shall at a minimum--
                    (A) describe the types of goods, services and 
                information to be provided;
                    (B) demonstrate that the proposed project(s) helps 
                implement the strategies developed in the ``Study of 
                Adequacy of Parking Facilities'' prepared pursuant to 
                section 4027 of the Transportation Equity Act for the 
                21st Century;
                    (C) contain a review and update of the individual 
                State action plans for addressing commercial truck 
                parking shortages; and
                    (D) prepare a plan for evaluating the results of 
                the pilot project(s) in that State.
            (2) The Secretary must determine that commercial rest area 
        projects being advanced under this pilot program will meet all 
        of the design standards applicable to rest areas on the 
        Interstate system.
    (e) Limitation on Use of Revenues.--Any revenues received by a 
State from the commercial operations in a rest area under this section 
that are in excess of amounts required for the proper operation and 
maintenance of the rest area shall be used by the State for projects 
eligible under title 23, United States Code.
    (f) Considerations.--The Secretary shall consider the benefit to 
the traveling public and the impact on local businesses in carrying out 
this section.
    (g) Vending Machines.--If vending machines are placed in a pilot 
project, the State shall give priority to vending machines operated 
through the State licensing agency designated under the Randolph-
Sheppard Act.

SEC. 1307. HIGHWAY USE TAX EVASION PROJECTS.

    (a) Eligible Activities.--Section 143(b) of title 23, United States 
Code, is amended as follows:
            (1) Intergovernmental enforcement efforts.--Paragraph (2) 
        is amended by inserting a comma after ``Secretary'' and adding 
        ``except that 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.--Paragraph (3) is amended by inserting a comma after 
        ``subsection'' and adding ``except as otherwise provided in 
        this section''.
            (3) Limitation on use of funds.--Paragraph (4) 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 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.--The following new paragraph is added at the 
        end:
            ``(9) Reports.--The Internal Revenue Service and States 
        shall submit to the Secretary annual reports that describe the 
        projects, examinations, and criminal investigations funded by 
        and carried out under this section. The reports must specify 
        the annual yield estimated for each project funded under this 
        section.''.
    (b) Excise Fuel Reporting System.--Section 143(c) of such title is 
amended--
            (1) in paragraph (1) by striking ``Not later than August 1, 
        1998,'' and inserting ``Not later than 90 days after enactment 
        of the Safe, Accountable, Flexible, and Efficient 
        Transportation Equity Act of 2003,''; by striking 
        ``development'' and inserting ``completion, operation,''; by 
        striking ``an excise fuel reporting system'' and inserting 
        ``the excise summary terminal activity reporting system''; and 
        by striking ``(in this subsection referred to as the 
        ``system'')'';
            (2) in paragraph (2)--
                    (A) by striking ``the system'' each 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 new 
                subparagraph:
                    ``(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 excise summary terminal activity 
                reporting system.''; and
            (3) by amending paragraph (3) 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 funds available to the Internal Revenue 
        Service 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 as 
amended by this Act is further amended by adding at the end the 
following new subsections:
    ``(d) Pipeline, Vessel, and Barge Registration System.--
            ``(1) In general.--Not later than 90 days after enactment 
        of the Safe, Accountable, Flexible, and Efficient 
        Transportation Equity Act of 2003, 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 funds available to the Internal Revenue 
        Service 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 enactment 
        of the Safe, Accountable, Flexible, and Efficient 
        Transportation Equity Act of 2003, 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 funds available to the Internal Revenue 
        Service to establish, operate, and maintain an electronic 
        database of heavy vehicle highway use tax payments in 
        accordance with this subsection.
    ``(f) Reports.--By March 30 and September 30 of each year, 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.''.
    (d) Allocations.--Of the amounts authorized to be appropriated 
under section 1101(a)(14) of this Act for Highway Use Tax Evasion 
Projects for each of fiscal years 2004 through 2009, $4,500,000 shall 
be allocated to the States, and for fiscal year 2004, $20,050,000 shall 
be allocated to the Internal Revenue Service, of which $10,500,000 
shall be dedicated to the excise summary terminal activity reporting 
system, for each of fiscal years 2005 and 2006, $48,000,000 shall be 
allocated to the Internal Revenue Service, of which $4,500,00 shall be 
dedicated to the excise summary terminal activity reporting system, for 
fiscal year 2007, $38,000,000 shall be allocated to the Internal 
Revenue Service, of which $4,500,00 shall be dedicated to the excise 
summary terminal activity reporting system, and for each of fiscal 
years 2008 and 2009, $4,500,000 shall be allocated to the Internal 
Revenue Service, which shall be used for the excise summary terminal 
activity reporting system.

       Subtitle D--Program Efficiencies and Improvements--Safety

SEC. 1401. NATIONAL HIGHWAY SAFETY GOAL; NATIONAL BLUE RIBBON 
              COMMISSION ON HIGHWAY SAFETY.

    (a) National Highway Safety Goal.--Section 101 of title 23, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f) It is hereby declared to be in the national interest that the 
number of deaths attributable to traffic accidents on America's 
highways be significantly reduced. To achieve this goal, a national 
initiative targeted at saving lives through improved engineering, 
education, enforcement, and emergency response in cooperation with new 
and existing State and local safety programs is hereby authorized.''.
    (b) National Blue Ribbon Commission on Highway Safety.--
            (1) Establishment.--The Secretary shall establish a 
        National Blue Ribbon Commission on Highway Safety (hereinafter 
        in this section referred to as ``the Commission'').
            (2) Membership.--
                    (A) Composition.--The Commission shall be composed 
                of 15 members as follows--
                            (i) the Secretary or the Secretary's 
                        delegate;
                            (ii) the Administrators of the Federal 
                        Highway Administration; the National Highway 
                        Traffic Safety Administration; the Federal 
                        Motor Carrier Safety Administration; and the 
                        Federal Railroad Administration, or the 
                        Administrators' delegates; and
                            (iii) 10 members appointed by the Secretary 
                        from among individuals who represent the 
                        interests of States and political subdivisions 
                        of States, the safety community, public health, 
                        and State and local law enforcement agencies, 
                        and who have been nominated by the Committee on 
                        Environment and Public Works and the Committee 
                        on Commerce, Science and Transportation of the 
                        United States Senate and the Committee on 
                        Transportation and Infrastructure of the United 
                        States House of Representatives.
                    (B) Appointment.--The Secretary shall select the 
                individuals to be appointed under this subsection on 
                the basis of their knowledge, expertise, or experience 
                related to highway safety. Half of the appointments 
                shall be made from nominees submitted by the Committee 
                on Environment and Public Works and the Committee on 
                Commerce, Science and Transportation of the Senate and 
                the other half from the nominees submitted by the 
                Committee on Transportation and Infrastructure of the 
                House of Representatives. Each of these committees 
                shall nominate 20 individuals qualified to serve on the 
                Commission.
                    (C) Terms.--The term of each member of the 
                Commission shall be 6 years. Any vacancy shall be 
                filled in the manner the original appointment was made. 
                The vacancy does not affect the Commission's powers.
            (3) Function.--The Commission, to carry out the direction 
        of Congress, under section 101(f) of title 23, United States 
        Code as amended by this Act, that the number of deaths 
        attributable to traffic accidents on America's highways be 
        significantly reduced, shall--
                    (A) oversee a comprehensive study evaluating the 
                Nation's highway safety needs over the next three 
                decades in the areas of engineering, education, 
                enforcement, and emergency response and, based on such 
                study, make specific recommendations to the Secretary 
                for an achievable national goal for the reduction of 
                highway fatalities and for the funding necessary to 
                achieve such goal;
                    (B) assist in developing a national consensus in 
                support of such goal; and
                    (C) advise, consult with, and make recommendations 
                to, the Secretary to assist in identifying specific 
                measures for achieving the national highway safety 
                goal.
            (4) Specific matters to be addressed.--The national highway 
        safety goal study conducted by the Commission shall examine the 
        roles of highway infrastructure, drivers, and vehicles in 
        fatalities on all public roads; identify high risk areas and 
        activities associated with the greatest numbers of highway 
        fatalities; examine the roles of various levels of government 
        agencies and non-governmental organizations in reducing highway 
        fatalities and recommend ways to strengthen highway safety 
        partnerships; and identify measures that will save the most 
        lives both long term and short term. The study shall consider, 
        among other things, the findings, conclusions, and 
        recommendations of highway safety studies and research 
        conducted by the Transportation Research Board, including 
        studies related to implementation of the American Association 
        of State Highway and Transportation Officials' Strategic 
        Highway Safety Plan.
            (5) Reports to congress.--
                    (A) Initial report.--Not later than September 30, 
                2006, the Commission shall transmit to Congress an 
                initial report on the results of the national highway 
                safety goal study, including recommendations and such 
                legislative recommendations as the President judges 
                necessary and expedient for an achievable national goal 
                for the reduction of highway fatalities and for 
                preliminary strategies to be implemented to achieve 
                such goal.
                    (B) Final report.--Not later than February 1, 2009, 
                the Commission shall transmit to Congress a final 
                report on the results of the national highway safety 
                goal study, including recommendations and such 
                legislative recommendations as the President judges 
                necessary and expedient for a comprehensive plan with 
                specific strategies to achieve the fatality reduction 
                goal recommended in the initial report and for the 
                level of funding necessary to implement such fatality 
                reduction plan and strategies.
            (6) Termination of commission.--The Commission shall 
        terminate on the 180th day following the date of transmittal of 
        the final report to Congress under paragraph (5)(B) of this 
        subsection. By the 180th day, all records and papers of the 
        Commission shall be delivered to the Administrator of the 
        General Services Administration for deposit in the National 
        Archives.
            (7) Authorization of appropriations.--There are authorized 
to be appropriated out of the Highway Trust Fund (other than the Mass 
Transit Account) up to $3,000,000 for fiscal year 2004, $1,000,000 for 
fiscal year 2005, $1,000,000 for fiscal year 2006, $1,000,000 for 
fiscal year 2007, $500,000 for fiscal year 2008, and $500,000 for 
fiscal year 2009 for the purposes of carrying out this subsection.
            (8) Applicability of title 23.--Funds authorized 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 Federal share of the cost 
        of the study and the Commission under this section shall be 100 
        percent, and such funds shall remain available until expended.

SEC. 1402. HIGHWAY SAFETY IMPROVEMENT PROGRAM; FLEXIBILITY FOR SAFETY 
              INITIATIVES.

    (a) Establishment of Program.--Chapter 1 of title 23, United States 
Code, is amended by inserting the following new section after section 
149:
``Sec. 150. Highway Safety Improvement Program
    ``(a) Establishment.--The Secretary shall establish and implement a 
highway safety improvement program in accordance with this section, in 
order to significantly reduce fatalities and serious injuries on the 
Nation's roadway system.
    ``(b) Program.--
            ``(1) State responsibilities.--To receive funds under this 
        section, each State shall have a process in place that 
        identifies and analyzes highway safety problems and 
        opportunities and will produce a program of projects for 
        funding under this section based on this analysis. Such process 
        and program of projects shall be known as the Highway Safety 
        Improvement Program. The statewide program shall identify 
        hazardous locations, sections, and elements including roadside 
        obstacles, railway-highway crossing needs, and unmarked or 
        poorly marked roads that may constitute a danger to motorists, 
        bicyclists, pedestrians, and other highway users. States shall 
        also have crash data systems and the ability to perform safety 
        problem identification and countermeasure analysis.
            ``(2) Program administration.--The Secretary shall 
        establish implementing guidelines for this program, which shall 
        include at a minimum the following components:
                    ``(A) Strategic approach to highway safety.--Each 
                State shall, as appropriate, adopt strategic and 
                performance-based goals for its Highway Safety 
                Improvement Program. This statewide program shall 
                address safety problems and opportunities on all 
                roadways within the State, focus resources on areas of 
                greatest need, and be complementary to the programs 
                developed in response to section 402 of this title.
                    ``(B) Data improvement program.--Each State shall, 
                as appropriate, advance its capabilities for traffic 
                records data collection, analysis, and integration with 
                other sources of safety data such as roadway 
                inventories. Such a data improvement program shall be 
                complementary to the programs supported by sections 402 
                and 412 of this title; include all public roads; and 
                contain provisions to identify hazardous locations, 
                sections, and elements on these public roads that 
                constitute a danger to motorists, bicyclists, and 
                pedestrians.
                    ``(C) Program of improvements.--Each State shall 
                determine priorities for the correction of hazardous 
                roadway locations, sections, and elements, including 
                railway-highway crossing improvements, as identified 
                through crash data analysis; identify opportunities for 
                preventing the development of such hazardous 
                conditions; and establish and implement a schedule of 
                safety improvement projects for hazard correction and 
                hazard prevention.
                    ``(D) Evaluation.--Each State shall, as 
                appropriate, establish an evaluation process to analyze 
                and assess results achieved by safety improvement 
                projects carried out in accordance with procedures and 
                criteria established by this section, and such 
                information shall be used in setting priorities for 
                safety improvement projects.
    ``(c) Reports.--Each State shall report to the Secretary on 
progress being made to implement safety improvement projects under this 
section and the effectiveness of such improvements. The Secretary shall 
establish the content and schedule for such reports.
    ``(d) Eligible Projects.--
            ``(1) In general.--A State may obligate funds apportioned 
        to it under this section for any safety improvement project on 
        any public road or publicly-owned bicycle or pedestrian pathway 
        or trail.
            ``(2) Safety improvement project.--For purposes of this 
        section the term `safety improvement project' means a project 
        that corrects or improves a hazardous roadway location or 
        feature, or proactively addresses highway safety problems, 
        including: intersection improvements, pavement and shoulder 
        widening, installation of rumble strips and other warning 
        devices, improving skid resistance, improvements for pedestrian 
        or bicyclist safety, railway-highway crossing safety, traffic 
        calming, elimination of roadside obstacles, improving highway 
        signage and pavement marking, installing priority control 
        systems for emergency vehicles at signalized intersections, 
        installing traffic control or warning devices at locations with 
        high accident potential, safety conscious planning, and 
        improving crash data collection and analysis.
    ``(e) Funding.--Sums authorized to be appropriated to carry out 
this section shall be apportioned in accordance with section 104(b)(5).
    ``(f) Federal Share.--The Federal share payable on account of any 
project carried out under this section shall be 90 percent of the cost 
thereof.
    ``(g) Use of Funds.--Beginning in fiscal year 2005 and for each 
fiscal year thereafter, 10 percent of the funds available to a State to 
carry out the highway safety improvement program established in 
accordance with this section shall be obligated for projects under 
section 402 of this title, unless by October 1 of the fiscal year in 
which funds become available to a State the State has enacted a primary 
safety belt law or the State demonstrates that the safety belt use rate 
in that State meets or exceeds 90 percent. A State subject to the 
provisions of this subsection must have in place or adopt a strategic 
highway safety plan in accordance with section 151 of this title. 
Activities funded under this subsection shall be consistent with such a 
plan.
    ``(h) Use of Other Funding for Safety.--Nothing in this section 
shall be interpreted to prohibit the use of funds made available under 
other sections of this title for highway safety improvement projects, 
and States are to be encouraged to address the full scope of their 
safety needs and opportunities by using other funds unless provisions 
exist that prohibit such use.''.
    (b) Apportionment of Highway Safety Improvement Program Funds.--
Section 104 of such title is amended--
            (1) by inserting in subsection (a) ``the Highway Safety 
        Improvement Program under section 150,'' after ``section 
        204,'';
            (2) by inserting in subsection (b) ``the Highway Safety 
        Improvement Program,'' after ``Improvement Program,''; and
            (3) by adding at the end of subsection (b) the following 
        new paragraph:
            ``(5) Highway safety improvement program.--
                    ``(A) In general.--For the Highway Safety 
                Improvement Program, in accordance with the following 
                formula:
                            ``(i) 25 percent of the apportionments in 
                        the ratio that--
                                    ``(I) the total lane miles of 
                                Federal-aid highways in each State; 
                                bears to
                                    ``(II) the total lane miles of 
                                Federal-aid highways in all States.
                            ``(ii) 40 percent of the apportionments in 
                        the ratio that--
                                    ``(I) the total vehicle miles 
                                traveled on lanes on Federal-aid 
                                highways in each State; bears to
                                    ``(II) the total vehicle miles 
                                traveled on lanes on Federal-aid 
                                highways in all States.
                            ``(iii) 35 percent of the apportionments in 
                        the ratio that--
                                    ``(I) the estimated tax payments 
                                attributable to highway users in each 
                                State paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                in the latest fiscal year for which 
                                data are available; bears to
                                    ``(II) the estimated tax payments 
                                attributable to highway users in all 
                                States paid into the Highway Trust Fund 
                                (other than the Mass Transit Account) 
                                in the latest fiscal year for which 
                                data are available.
                    ``(B) Minimum apportionment.--Notwithstanding 
                subparagraph (A), each State shall receive a minimum of 
                \1/2\ of 1 percent of the funds apportioned under this 
                paragraph.''.
    (c) Flexibility for Safety Initiatives.--Chapter 1 of such title, 
as amended by this Act, is further amended--
            (1) by repealing section 152;
            (2) by redesignating section 151 as section 152; and
            (3) by inserting the following new section 151 after 
        section 150:
``Sec. 151. Flexibility for safety initiatives
    ``(a) In General.--As provided in this section, a State that 
develops and implements a strategic highway safety plan and 
comprehensive safety planning process shall have the flexibility to use 
funds available under section 150 of this title, the Highway Safety 
Improvement Program, for title 23 safety purposes not otherwise 
eligible under such section, including funding for public awareness, 
education, and enforcement.
    ``(b) Strategic Highway Safety Plan.--To qualify for flexible 
safety funding as provided under this section, the State strategic 
highway safety plan must--
            ``(1) be based on a collaborative process that includes the 
        State Department of Transportation, the Governor's 
        Representative for Highway Safety, persons responsible for 
        administering section 130 of this title at the State level, and 
        other major State and local safety stakeholders, including 
        Operation Lifesaver;
            ``(2) address engineering, education, enforcement, and 
        emergency services elements of highway safety;
            ``(3) consider the results of existing State transportation 
        and highway safety planning processes; and
            ``(4) be certified by the Secretary, in consultation with 
        the Federal Highway Administration and the National Highway 
        Traffic Safety Administration, as based on a comprehensive, 
        collaborative process, and effective analyses of State crash 
        data.
    ``(c) Safety Activities Consistent With Plan.--To qualify for the 
flexible use of funds available under sections 150 and 402(k) in 
accordance with this section, activities must be consistent with the 
State strategic highway safety plan.
    ``(d) Other Transportation and Highway Safety Plans.--Nothing in 
this section shall require a State to revise existing State processes, 
plans, or programs.
    ``(e) Flexible Funding.--A State that receives funds under section 
150 shall use such funds for projects eligible under such section, 
except that up to 50 percent of such funds may be used for activities 
eligible for assistance under section 402 of this title that are 
consistent with the State's strategic highway safety plan and not 
otherwise eligible for assistance under section 150.''.
    (d) Elimination of Surface Transportation Program Set-Aside.--
Section 133(d) of such title is amended by striking paragraph (1) and 
by redesignating paragraphs (2) through (5) as paragraphs (1) through 
(4), respectively.
    (e) Conforming Amendments.--
            (1) The analysis for chapter 1 of such title is amended--
                    (A) by striking the item relating to section 152;
                    (B) by renumbering ``151. National bridge 
                inspection program.'' as ``152''; and
                    (C) by inserting after the item relating to section 
                149 the following:

``150. Highway Safety Improvement Program.
``151. Flexibility for safety initiatives.''.
            (2) Section 130 of such title is amended--
                    (A) by striking subsections (e) and (f) and 
                redesignating subsections (g) through (j) as (e) 
                through (h), respectively; and
                    (B) in subsection (f), as redesignated by this Act, 
                by striking ``authorized to be appropriated to carry 
                out this section'' and inserting ``made available as 
provided under section 150 of this title to carry out this section''.
            (3) Section 154(c)(3) of such title is amended by striking 
        ``152'' and inserting ``150''.
            (4) Section 164(b)(3) of such title is amended by striking 
        ``152'' and inserting ``150''.
            (5) Section 409 of such title is amended by striking 
        ``152'' and inserting ``150''.

SEC. 1403. OPERATION LIFESAVER.

    Section 104(d)(1) of title 23, United States Code, is amended by 
striking ``$500,000'' and inserting ``$600,000''.

SEC. 1404. HIGHWAY SAFETY PROGRAMS; CERTIFICATION OF PUBLIC ROAD 
              MILEAGE.

    Section 402(c) of title 23, United States Code, is amended by 
striking in the fifth sentence ``the Governor of''.

      Subtitle E--Program Efficiencies and Improvements--Planning

SEC. 1501. METROPOLITAN PLANNING.

    Section 134 of title 23, United States Code, is amended by striking 
subsections (a) through (o) and inserting the following:
    ``Metropolitan planning shall be carried out in accordance with 
section 5203 of title 49, United States Code.''.

SEC. 1502. STATEWIDE PLANNING.

    Section 135 of title 23, United States Code, is amended by striking 
subsections (a) through (i) and inserting the following:
    ``Statewide planning shall be carried out in accordance with 
section 5204 of title 49, United States Code.''.

SEC. 1503. STATE PLANNING AND RESEARCH.

    (a) State Planning and Research.--Chapter 5 of title 23, United 
States Code, is amended by striking section 505.
    (b) Conforming Amendment.--The analysis for chapter 5 of such title 
is amended by striking the item related to section 505.
    (c) Apportionment.--Section 104 of title 23, United States Code, is 
amended--
            (1) by redesignating subsections (i), (j), (k), and (l) as 
        subsections (k), (l), (m), and (n), respectively; and
            (2) by inserting after subsection (h) the following:
    ``(i) State Planning and Research.--
            ``(1) In general.--Two and \1/2\ percent of the sums 
        apportioned to a State for each fiscal year under this section 
        (other than subsections (f) and (h)) and under sections 105 and 
        144 of this title shall be available for expenditure by the 
        State, in consultation with the Secretary, only for the 
        following purposes:
                    ``(A) Engineering and economic surveys and 
                investigations.
                    ``(B) The planning of future highway and local 
                public transportation systems, the planning of the 
                financing of such systems, and metropolitan and 
                statewide planning under sections 134 and 135 of this 
                title, including freight planning, safety planning, 
                transportation systems management and operations 
                planning, transportation-related land use planning, and 
                transportation-related growth management activities 
                within these planning processes and planning capacity 
                building activities described in section 104(j) of this 
                title.
                    ``(C) Development and implementation of 
                infrastructure management and traffic monitoring 
                systems under section 303 of this title and for asset 
                management activities.
                    ``(D) Studies of the economy, safety, and 
                convenience of highway and local public transportation 
                systems and the desirable regulation and equitable 
                taxation of their use.
                    ``(E) Research, development, and technology 
                transfer activities necessary in connection with the 
                planning, design, construction, management, 
                maintenance, regulation, and taxation of the use of 
                highway, local public transportation, and intermodal 
                transportation systems.
                    ``(F) Study, research, and training on the 
                engineering standards and construction materials, 
                including accreditation of inspection and testing, for 
                highway, local public transportation, and intermodal 
                transportation systems.
            ``(2) Minimum expenditures on research, development, and 
        technology transfer activities.--
                    ``(A) In general.--Subject to subparagraph (B), not 
                less than 20 percent of the funds subject to paragraph 
                (1) for a fiscal year shall be expended by the State 
                for research, development, and technology transfer 
                activities described in paragraph (1), relating to 
                highway, local public transportation, and intermodal 
                transportation systems.
                    ``(B) Waivers.--The Secretary may waive the 
                application of subparagraph (A) with respect to a State 
                for a fiscal year if the State certifies to the 
                Secretary for the fiscal year that the funds described 
                in subparagraph (A) are not needed for research, 
                development, and technology transfer and the Secretary 
                accepts such certification.
                    ``(C) Nonapplicability of assessment.--Funds 
                expended under subparagraph (A) shall not be considered 
                to be part of the extramural budget of the agency for 
                the purpose of section 9 of the Small Business Act (15 
                U.S.C. 638).
            ``(3) Minimum expenditures for improving the quality of 
        collection and reporting of strategic surface transportation 
        data.--
                    ``(A) In general.--Subject to subparagraph (B), not 
                less than 20 percent of the funds subject to paragraph 
                (1) for a fiscal year shall be expended by the State to 
                improve the collection and reporting of strategic 
                surface transportation data to provide critical 
                information about the extent, condition, use, 
                performance, and financing of the Nation's highways 
                (including intermodal connectors) for passenger and 
                freight movement.
                    ``(B) Waivers.--The Secretary may waive the 
                application of subparagraph (A) with respect to a State 
                for a fiscal year if the State certifies to the 
                Secretary for the fiscal year that the State is 
                collecting and reporting strategic data consistent with 
quality assurance guidelines developed cooperatively with the States 
and the Secretary approves such certification. If such waiver is 
approved, the funds may be used for the activities described in 
paragraph (1) of this subsection.
            ``(4) Federal share.--The Federal share of the cost of a 
        project carried out using funds subject to paragraph (1) shall 
        be matched in accordance with section 120(b) unless the 
        Secretary determines that the interests of the Federal-aid 
        highway program would be best served without such matching.
            ``(5) Administration of sums.--Funds subject to paragraph 
        (1) shall be combined and administered by the Secretary as a 
        single fund and shall be available for obligation for the same 
        period as funds apportioned under section 104(b)(1).''.

SEC. 1504. CRITICAL REAL PROPERTY ACQUISITION.

    Section 108 of title 23, United States Code, is amended by adding 
at the end the following:
    ``(d) Critical Real Property Acquisition.--
            ``(1) Subject to paragraph (2), funds apportioned to a 
        State under this title may be used to participate in the 
        payment of costs incurred in the acquisition of real property 
        that is deemed critical, as determined under paragraph (2), for 
        any project proposed for funding under this title, prior to the 
        completion of any required environmental reviews for property 
        acquisition.
            ``(2) The Federal share payable of the costs described in 
        paragraph (1) shall be eligible for reimbursement out of funds 
        apportioned to a State under this title if, prior to 
        acquisition, the State demonstrates to the Secretary, and the 
        Secretary determines, that the property is offered for sale on 
        the open market, that the State will comply fully with the 
        Uniform Relocation Assistance and Real Property Acquisition 
        Policies Act in acquiring the property, and that immediate 
        acquisition of the property is critical because either--
                    ``(A) normal appraisal techniques show that the 
                property's value is increasing significantly;
                    ``(B) there is an imminent threat of development or 
                redevelopment of the property; or
                    ``(C) the property is necessary for the 
                implementation of the goals as stated in the project 
                proposal.
            ``(3) An acquisition undertaken pursuant to this section 
        shall be considered to be an exempt project under section 176 
        of the Clean Air Act and its implementing regulations.
            ``(4) No project development activity may be undertaken on 
        property acquired in accordance with paragraph (2) until any 
        required environmental reviews for the project have been 
        completed.
            ``(5) The number of critical acquisitions associated with a 
        project shall be limited and shall not affect the consideration 
        of project alternatives during the environmental review 
        process.
            ``(6) Section 156 (c) of this title shall not apply to the 
        sale, use or lease of any property acquired in accordance with 
        paragraph (2).''.

SEC. 1505. PLANNING CAPACITY BUILDING INITIATIVE.

    Section 104 of title 23, United States Code, is amended by 
inserting after subsection (i), as added by this Act, the following:
    ``(j) Planning Capacity Building Initiative.--
            ``(1) In general.--The Secretary shall establish a planning 
        capacity building initiative to support enhancements in 
        transportation planning, in order to--
                    ``(A) strengthen metropolitan and statewide 
                transportation planning under chapter 52 of title 49;
                    ``(B) enhance tribal capacity to conduct joint 
                transportation planning under Chapter 2 of this title; 
                and
                    ``(C) participate in the metropolitan and statewide 
                transportation planning programs under chapter 52 of 
                title 49.
            ``(2) Priority.--The Secretary shall give priority to 
        planning practices and processes that support homeland security 
        planning, performance based planning, safety planning, 
        operations planning, freight planning, and integration of 
        environment and planning.
            ``(3) Use of funds.--Funds authorized for this program may 
        be used for research, program development, information 
        collection and dissemination, and technical assistance. The 
        Secretary may use these funds independently or make grants to, 
        or enter into contracts, cooperative agreements, and other 
        transactions, with a Federal agency, State agency, local 
        agency, federally recognized Indian tribal government or tribal 
        consortium, authority, association, nonprofit or for-profit 
        corporation, or institution of higher education, to carry out 
        the purposes of this subsection.
            ``(4) Set-aside.--On October 1 of each fiscal year, the 
        Secretary, after making the deductions authorized by 
        subsections (a) and (f) of section 104 of this title, shall set 
        aside $20,000,000 of the remaining funds authorized for the 
        Surface Transportation Program to carry out the requirements of 
        this subsection.
            ``(5) Federal share.--The Federal share of the cost of an 
        activity carried out using such funds shall be up to 100 
        percent, and such funds shall remain available until expended.
            ``(6) Administration.--This initiative shall be 
        administered by the Federal Highway Administration in 
        cooperation with the Federal Transit Administration.''.

     Subtitle F--Program Efficiencies and Improvements--Environment

SEC. 1601. CONGESTION MITIGATION AND AIR QUALITY IMPROVEMENT PROGRAM.

    (a) Eligible Projects.--Section 149(b) of title 23, United States 
Code, is amended--
            (1) in the first paragraph, by inserting ``and, the project 
        or program will reduce emissions to contribute to the 
        attainment or maintenance of the National Ambient Air Quality 
        Standard for which the area is or was designated 
        nonattainment,'' after ``December 31, 1997,'';
            (2) in subsection (1)(A), by striking ``(other than clause 
        (xvi) of such section)'';
            (3) in paragraph (1)(A)(ii), by inserting ``by providing 
        new or enhanced transportation facilities or services to 
        further reduce emissions'' after ``area'';
            (4) in paragraph (1)(B), by inserting ``or'' at the end 
        after ``section;'';
            (5) in paragraph (2), by inserting ``or program'' after 
        ``and the project'', and by striking ``have air quality 
        benefits;'' and inserting ``reduce emissions; or'';
            (6) in paragraph (3), by--
                    ``(A) inserting ``if'' after ``(3)'';
                    ``(B) striking ``contribute to the attainment of a 
                national ambient air quality standard'' and inserting 
                ``reduce emissions'';
                    ``(C) striking the comma after ``traveled'' and 
                inserting ``or''; and
                    ``(D) inserting ``through technological 
                improvements such as anti-idling equipment and diesel 
                retrofits for trucks, school buses, transit buses and 
                other vehicles'' after ``consumption,'';
            (7) in paragraph (4), by inserting ``if the project or 
        program is'' after ``(4)'', and by striking ``contribute to the 
        attainment of a national ambient air quality standard'' and 
        inserting ``reduce emissions'';
            (8) in paragraph (5), by striking ``that are eligible for 
        assistance under this section on the day before the date of 
        enactment of this paragraph'' and inserting ``that will reduce 
        emissions''; and
            (9) in the final unnumbered paragraph, by striking the 
        second sentence.
    (b) States Receiving Minimum Apportionment.--Section 149(c) of such 
title is amended in paragraphs (1) and (2) by inserting ``OR 
MAINTENANCE'' after ``NONATTAINMENT'' in the heading of each paragraph.
    (c) Selection of Projects.--Section 149 of such title is amended by 
adding at the end the following new paragraph:
    ``(f) Interagency Consultation.--The Secretary shall encourage 
States and metropolitan planning organizations to consult with State 
and local air quality agencies in nonattainment and maintenance areas 
on the estimated emissions reductions from proposed congestion 
mitigation and air quality improvement programs and projects.''.
    (d) Evaluation and Assessment of Projects.--Section 149 of such 
title is amended by adding at the end the following new paragraph:
    ``(g) Evaluation and Assessment of Projects.--
            ``(1) Evaluation and assessment.--The Secretary, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall evaluate and assess a representative 
        sample of projects funded under the Congestion Mitigation and 
        Air Quality Improvement Program for their actual impact on 
        emissions, and congestion levels and to assure effective 
        program implementation. Using appropriate assessments of CMAQ-
        funded projects, and results from other research, the Secretary 
        shall maintain a cumulative database on these impacts for broad 
        dissemination.
            ``(2) Funding.--Funds set aside under section 104(o) of 
        this title shall be available to carry out this subsection.''.
    (e) Funding for Evaluation and Assessment of Projects.--Section 104 
of such title is amended by adding at the end the following new 
subsection:
    ``(o) Congestion Mitigation and Air Quality Improvement Program 
Evaluation and Assessment of Projects.--Before making apportionments 
under subsection (b)(2) of this section for a fiscal year, the 
Secretary shall deduct 0.5 percent from the amount to be apportioned 
for such fiscal year for the purpose of carrying out the requirements 
of section 149(g) of this title.''.
    (f) Apportionments.--Section 104(b) of such title 23 is amended--
            (1) in paragraph (2)(B), by striking ``or'' after ``ozone'' 
        and inserting a comma, and by inserting ``, or fine particulate 
        matter (PM-2.5)'' after ``carbon monoxide'';
            (2) by amending paragraph (2)(B)(i) to read as follows:
                            ``(i) 1.0 if at the time of the 
                        apportionment, the area is a maintenance 
                        area;'';
            (3) in paragraph (2)(B)(vi), by striking ``or'' after the 
        semicolon;
            (4) in paragraph (2)(B)(vii), by inserting ``for ozone'' 
        after ``maintenance area'', and striking ``for ozone'' after 
        ``section 149(b)'' and inserting ``or for PM-2.5'';
            (5) by adding at the end of paragraph (2)(B) two new 
        clauses to read as follows:
                            ``(viii) 1.0 if, at the time of 
                        apportionment, any county, not designated as a 
                        nonattainment or maintenance area under the 1-
                        hour ozone standard, is designated as 
                        nonattainment under the 8-hour ozone standard; 
                        or
                            ``(ix) 1.2 if, at the time of 
                        apportionment, the area is not a nonattainment 
                        or maintenance area as described in section 
                        149(b) for ozone or carbon monoxide, but is an 
                        area designated nonattainment under the PM-2.5 
                        standard.'';
            (6) by amending paragraph (2)(C) to read as follows:
                    ``(C) Additional adjustment for carbon monoxide 
                areas.--If, in addition to being designated as a 
                nonattainment or maintenance area for ozone as 
                described in section 149(b), any county within the area 
                was also classified under subpart 3 of part D of title 
                I of such Act (42 U.S.C. 7512 et seq.) as a 
                nonattainment or maintenance area described in section 
                149(b) for carbon monoxide, the weighted nonattainment 
                or maintenance area population of the county, as 
                determined under clauses (i) through (vi) of 
                subparagraph (B), shall be further multiplied by a 
                factor of 1.2.''; and
            (7) by redesignating paragraphs (2)(D) and (2)(E) as (2)(E) 
        and (2)(F) and inserting after paragraph (2)(C) a new paragraph 
        (2)(D) to read as follows:
                    ``(D) Additional adjustment for pm 2.5 areas.--If, 
                in addition to being designated as a nonattainment or 
                maintenance area for ozone, carbon monoxide or both as 
                described in section 149(b), any county within the area 
                was also designated under the PM-2.5 standard as a 
                nonattainment or maintenance area, the weighted 
                nonattainment or maintenance area population of those 
                counties shall be further multiplied by a factor of 
                1.2.''.

SEC. 1602. EFFICIENT ENVIRONMENTAL REVIEWS FOR PROJECT DECISIONMAKING.

    (a) Policy and Purpose.--
            (1) Policy.--The Enlibra principles, as initially developed 
        by the Western Governors Association and adopted by the 
        National Governors Association, represent a sound basis for 
        interaction among the Federal, State, local governments, and 
        tribes on environmental matters and should be followed to the 
        maximum extent practicable in the development of highway 
        construction and public transit improvements. These principles 
        are:
                    (A) Assign responsibilities at the right level.
                    (B) Use collaborative processes to break down 
                barriers and find solutions.
                    (C) Move to a performance-based system.
                    (D) Separate subjective choices from objective data 
                gathering.
                    (E) Pursue economic incentives whenever 
                appropriate.
                    (F) Ensure environmental understanding.
                    (G) Make sure environmental decisions are fully 
                informed.
                    (H) Use appropriate geographic boundaries for 
                environmental problems.
            (2) Purpose.--The purpose of this section is to reduce 
        delays in the delivery of highway construction and public 
        transit projects arising from the environmental review process, 
        while continuing to ensure the protection of the human and 
        natural environment.
    (b) Coordinated Environmental Review Process.--
            (1) Development and implementation.--The Secretary shall 
        develop and implement a coordinated environmental review 
        process for highway construction and public transit projects 
        that require--
                    (A) the preparation of an environmental impact 
                statement or environmental assessment under the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.), except that the Secretary may decide not 
                to apply this section to the preparation of an 
                environmental assessment under such Act; or
                    (B) the conduct of any other environmental review 
                or analysis, rendering of an opinion, or issuance of an 
                environmental permit, license, or approval under 
                Federal law.
            (2) Memorandum of understanding.--
                    (A) In general.--The coordinated environmental 
                review process may be specified for a particular 
                project, class of projects, or program and shall ensure 
                that, whenever practicable (as specified in this 
                section), all environmental reviews, analyses, 
                opinions, and any permits, licenses, or approvals that 
                must be issued or made by any Federal agency for the 
                project concerned shall be conducted concurrently and 
                completed within a cooperatively determined time 
                period. Such process for a project, class of projects, 
                or program may be incorporated into a memorandum of 
                understanding between the Department of Transportation 
                and affected Federal agencies (and, where appropriate, 
                State and local agencies and federally recognized 
                tribes).
                    (B) Establishment of time periods.--In establishing 
                the time period referred to in subparagraph (A), and 
                any time periods for review within such period, the 
                Department and all such agencies shall take into 
                account their respective resources and statutory 
                commitments.
    (c) Elements of Coordinated Environmental Review Process.--For each 
project, the coordinated environmental review process established under 
this section shall provide, at a minimum, for the following elements:
            (1) Federal agency identification.--The Secretary shall, at 
        the earliest possible time, identify all potential Federal 
        agencies that--
                    (A) have jurisdiction by law over or special 
                expertise related to environmental-related issues that 
                may be affected by the project and the analysis of 
                which would be part of any environmental document 
                required by the National Environmental Policy Act of 
                1969 (42 U.S.C. 4321 et seq.); or
                    (B) may be required by Federal law to 
                independently--
                            (i) conduct an environmental-related review 
                        or analysis for the project;
                            (ii) determine whether to issue a permit, 
                        license, or approval for the project; or
                            (iii) render an opinion on the 
                        environmental impact of the project.
            (2) Time limitations and concurrent review.--If requested 
        by the project sponsor, the Secretary and the head of each 
        Federal agency identified under paragraph (1)--
                    (A)(i) shall jointly develop and establish time 
                periods for review for--
                            (I) all Federal agency comments with 
                        respect to any environmental documents required 
                        by the National Environmental Policy Act of 
                        1969 (42 U.S.C. 4321 et seq.) for the project; 
                        and
                            (II) all other independent Federal agency 
                        environmental analyses, reviews, opinions, and 
                        decisions on any permits, licenses, and 
                        approvals that must be issued or made for the 
                        project; such that each such Federal agency's 
                        review shall be undertaken and completed within 
                        such established time periods for review; or
                    (ii) may enter into an agreement to establish such 
                time periods for review with respect to a class of 
                projects or programs; and
                    (B) shall ensure, in establishing such time periods 
                for review, that the conduct of any such analysis or 
                review, rendering of such opinion, and the issuance of 
                such decision is undertaken concurrently with all other 
                environmental reviews for the project, including the 
                reviews required by the National Environmental Policy 
                Act of 1969 (42 U.S.C. 4321 et seq.); except that such 
                review may not be concurrent if the affected Federal 
                agency can demonstrate that such concurrent review 
                would result in a significant adverse impact to the 
                environment or substantively alter the operation of 
                Federal law or would not be possible without 
                information developed as part of the environmental 
                review process.
            (3) Factors to be considered.--Time periods for review 
        established under this section shall be consistent with the 
        time periods established by the Council on Environmental 
        Quality under sections 1501.8 and 1506.10 of title 40, Code of 
        Federal Regulations.
            (4) Extensions.--The Secretary shall extend any time 
        periods for review under this section if, upon good cause 
        shown, the Secretary and any Federal agency concerned determine 
        that additional time for analysis and review is needed. Any 
        memorandum of understanding shall be modified to incorporate 
        any mutually agreed-upon extensions.
    (d) Clarification Regarding Environmental Impact Statements 
Prepared by State and Local Transportation Agencies.--Any project 
sponsor that is a State or local governmental entity eligible to 
receive funds under this Act, chapter I of title 23, United States 
Code; or chapter 53 of title 49, United States Code, may, at the 
discretion of the Secretary, serve as a joint lead agency with the 
Department for purposes of preparing any environmental document under 
the National Environmental Policy Act of 1969, as amended (42 U.S.C. 
4321, et seq.), and may prepare any such environmental documents 
required in support of any action or approval by the Secretary, 
provided that the Department furnishes guidance in such preparation and 
independently evaluates such document, and provided that the document 
is approved and adopted by the Secretary prior to the Secretary taking 
any subsequent action or making any approval based on such document, 
whether or not the Secretary's action or approval results in Federal 
funding. The Secretary shall ensure that the project sponsor complies 
with all design and mitigation commitments made jointly by the 
Secretary and the project sponsor in such environmental document, or 
that the document is appropriately supplemented if project changes 
become necessary. Any such environmental document prepared in 
accordance with this subsection may be adopted or used by any Federal 
agency making any approval to the same extent that such Federal agency 
could adopt or use a document prepared by another Federal agency.
    (e) Dispute Resolution.--When the Secretary determines that a 
Federal agency which is subject to a time period under this section for 
its environmental review has failed to complete its review, analysis, 
opinion, or decision on issuing any permit, license, or approval within 
the established time period or within any agreed-upon extension to such 
time period, the Secretary may, after notice and consultation with such 
agency, close the record on the matter before the Secretary. If the 
Secretary finds, after timely compliance with this section, that an 
environmental issue related to the project over which an affected 
Federal agency has jurisdiction under Federal law has not been 
resolved, the Secretary and the head of the Federal agency shall 
resolve the matter not later than 30 days after the date of the finding 
by the Secretary. The dispute resolution procedures established 
pursuant to this subsection may be initiated by the Secretary or by the 
Governor of any State in which a highway construction or public transit 
project is located, or by the head of any Federal agency subject to the 
time period under this subsection.
    (f) Participation of State Agencies.--For any project eligible for 
assistance under chapter 1 of title 23, United States Code, a State, 
under State law, may require that all State agencies that have 
jurisdiction by State or Federal law over environmental-related issues 
that may be affected by the project, or that are required to issue any 
environmental-related reviews, analyses, opinions, or determinations on 
issuing any permits, licenses, or approvals for the project, be subject 
to the coordinated environmental review process established under this 
section unless the Secretary determines that a State agency's 
participation would not be in the public interest. If a State wishes to 
participate in the review process, the State must require all such 
State agencies with jurisdiction by law to be subject to and comply 
with the review process to the same extent as a Federal agency.
    (g) Assistance to Affected State and Federal Agencies.--
            (1) In general.--The Secretary may approve a request by a 
        State to provide funds made available under chapter 1 of title 
        23, United States Code, or for a public transit project made 
        available under chapter 53 of title 49, United States Code, to 
        the State for the project, class of projects, or program 
        subject to the coordinated environmental review process 
        established under this section, to affected Federal agencies, 
        including the Department of Transportation, to State agencies 
        participating in the coordinated environmental review process, 
        and to federally recognized tribes, to provide the resources 
        necessary to meet any time limits established under this 
        section. The Secretary also may use funds made available under 
        section 204 of title 23, United States Code, for the purposes 
        specified under this subsection.
            (2) Amounts.--Such requests under paragraph (1) shall be 
        approved only--
                    (A) for the additional amounts that the Secretary 
                determines are necessary for the affected Federal 
                agencies to meet the time limits for environmental 
                review; and
                    (B) if such time limits are less than the customary 
                time necessary for such review.
    (h) Judicial Review and Savings Clause.--
            (1) Judicial review.--Except as set forth under subsection 
        (i), nothing in this section shall affect the reviewability of 
        any final Federal agency action in a court of the United 
        States.
            (2) Savings clause.--Nothing in this section shall affect 
        the applicability of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) or any other Federal 
        environmental statute or affect the responsibility of any 
        Federal officer to comply with or enforce any such statute.
    (i) Limitations on Claims.--Notwithstanding any other provision of 
law, a claim arising under Federal law seeking judicial review of a 
permit, license, or approval issued by a Federal agency for a highway 
construction or public transit project shall be barred unless it is 
filed within one hundred eighty days after the permit, license, or 
approval is final pursuant to the statute under which the agency action 
is taken, unless a shorter time is specified in the Federal law 
pursuant to which judicial review is allowed. Nothing in this 
subsection shall create a right to judicial review or place any limit 
on filing a claim that a person has violated the terms of a permit, 
license, or approval.
    (j) Repeal.--Section 1309 of the Transportation Equity Act for the 
21st Century (Public Law 105-178; 112 Stat. 232; June 9, 1998) is 
repealed.

SEC. 1603. ASSUMPTION OF RESPONSIBILITY FOR CATEGORICAL EXCLUSIONS.

    (a) General.--Section 138 of title 23, United States Code, is 
repealed and the following new section is inserted:
''Sec. 138. Assumption of responsibility for categorical exclusions
    ``(a) Categorical Exclusion Determinations.--Upon mutual agreement, 
the Secretary may assign and a State may assume responsibility for 
determining whether certain designated activities are included within 
classes of action identified in regulation by the Secretary that are 
categorically excluded from requirements for environmental assessments 
or environmental impact statements pursuant to regulations promulgated 
by the Council on Environmental Quality, or other successor law or 
regulation. Such determinations shall be made by a State pursuant to 
criteria established by the Secretary and only for types of activities 
specifically designated by the Secretary. Such criteria shall include 
provision for public availability of information consistent with the 
Freedom of Information Act (5 U.S.C. 552).
    ``(b) Other Applicable Federal Laws.--Upon mutual agreement, the 
Secretary may assign and the State may assume some or all of the 
Department's responsibilities for environmental review, consultation, 
or other related actions required under any Federal law applicable to 
activities that are classified by the Secretary as categorical 
exclusions, with the exception of government-to-government consultation 
with Indian tribes, if the State also assumes decision-making authority 
under this section. The State shall assume this responsibility subject 
to the same procedural and substantive requirements as would be 
required if that responsibility was carried out by the Department. When 
a State assumes such responsibility under a Federal law, it shall be 
solely responsible and solely liable for complying with and carrying 
out that law in lieu of the Department.
    ``(c) Agreements.--The Secretary and the State shall enter into a 
memorandum of understanding setting forth the responsibilities to be 
assigned under this section and the terms and conditions under which 
such assignments are to be made. Such memorandums of understanding 
shall be established for periods of no more than three years. In the 
memorandum of understanding the State shall consent to accept the 
jurisdiction of the Federal courts for the compliance, discharge, and 
enforcement of any responsibility of the Secretary it may assume. The 
Secretary shall monitor the State department of transportation's 
compliance with the memorandum of understanding as well as the 
effectiveness of the delegation, and will take into account the State's 
performance in deciding whether and under what conditions to renew a 
memorandum of understanding.
    ``(d) Termination.--The Secretary may terminate any assumption of 
responsibility under this section upon a determination that a State is 
not adequately carrying out its assigned responsibilities.
    ``(e) State Subject to Federal Laws.--For purposes of assuming 
theSecretary's responsibilities under this section, the State agency 
signing the agreement in subsection (c) 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, under 
this title, and under any other Federal law.''.
    (b) Conforming Amendment.--The analysis of chapter 1 of title 23 is 
amended by striking ``Preservation of parklands'' in the item relating 
to section 138 and inserting ``Assumption of responsibility for 
categorical exclusions.''.

SEC. 1604. SECTION 4(F) POLICY ON LANDS, WILDLIFE AND WATERFOWL 
              REFUGES, AND HISTORIC SITES.

    Section 303 of title 49, United States Code, is amended to read as 
follows:
Sec. 303. Policy on lands, wildlife and waterfowl refuges, and historic 
              sites
    ``(a) It is the policy of the United States Government that special 
effort should be made to preserve the natural beauty of the countryside 
and public park and recreation lands, wildlife and waterfowl refuges, 
and historic sites.
    ``(b) The Secretary of Transportation shall cooperate and consult, 
when appropriate, with the Secretaries of the Interior, Housing and 
Urban Development, and Agriculture, and with the States, in developing 
transportation plans and programs that include measures to maintain or 
enhance the natural beauty of lands crossed by transportation 
activities or facilities.
    ``(c)(1) The Secretary of Transportation may approve a 
transportation program or project requiring the use of publicly owned 
land of a public park, recreation area, or wildlife and waterfowl 
refuge of national, State, or local significance, or land of a historic 
site of national, State, or local significance (as determined by the 
Federal, State, or local officials having jurisdiction over the park, 
area, refuge or site) only if--
            ``(A) there is no feasible and prudent alternative to using 
        that land, and
            ``(B) the program or project includes all possible planning 
        to minimize harm to the park, recreation area, wildlife and 
        waterfowl refuge, or historic site resulting from the use.
    ``(2) In making approvals under this subsection, the Secretary 
shall apply the following standards:
            ``(A) The Secretary may eliminate an alternative as 
        infeasible if the Secretary finds that the alternative cannot 
        be implemented as a matter of sound engineering.
            ``(B) The Secretary shall consider the following when 
        determining whether it would be prudent to avoid the use of 
        land of a resource subject to preservation under this section:
                    ``(i) The relative significance of the land of the 
                resource being protected.
                    ``(ii) The views of the official or officials with 
                jurisdiction over the land.
                    ``(iii) The relative severity of the adverse 
                effects on the protected activities, attributes, or 
                features that qualify a resource for protection.
                    ``(iv) The ability to mitigate adverse effects.
                    ``(v) The magnitude of the adverse effects that 
                would result from the selection of an alternative that 
                avoids the use of the land of the resource.
            ``(C) A mitigation measure or mitigation alternative under 
        paragraph (c)(1)(B) of this section is possible if it is 
        feasible and prudent. In evaluating the feasibility and 
        prudence of a mitigation measure or mitigation alternative 
        under paragraph (c)(1)(B) of this section, the Secretary shall 
        be governed by the standards of paragraphs (c)(2)(A) and (B) of 
        this subsection.
    ``(d) The requirements of this section do not apply to--
            ``(1) a project for a park road, parkway, or refuge road 
        under section 204 of title 23; or
            ``(2) a highway project on land administered by an agency 
        of the Federal government, when the purpose of the project is 
        to serve or enhance the values for which the land would 
        otherwise be protected under this section, as jointly 
        determined by the Secretary of Transportation and the head of 
        the appropriate Federal land managing agency.
    ``(e) The requirements of this section are deemed to be satisfied 
where the treatment of an historic site (other than a National Historic 
Landmark) has been agreed upon in accordance with Section 106 of the 
National Historic Preservation Act (16 U.S.C. 470f). The Secretary, in 
consultation with the Advisory Council on Historic Preservation, shall 
develop administrative procedures to review the implementation of this 
subsection to ensure that the objectives of the National Historic 
Preservation Act are being met.
    ``(f)(1) The Secretary may approve a request by a State to provide 
funds made available under chapter 1 of title 23, United States Code, 
to a State historic preservation office, Tribal historic preservation 
office, or to the Advisory Council on Historic Preservation to provide 
the resources necessary to expedite the historic preservation review 
and consultation process under section 303 of title 49 and under 
section 470f of title 16, United States Code.
    ``(2) The Secretary shall encourage States to provide such funding 
to State historic preservation officers, tribal historic preservation 
officers or the Advisory Council on Historic Preservation where the 
investment of such funds will accelerate completion of a project or 
classes of projects or programs by reducing delays in historic 
preservation review and consultation.
    ``(3) Such requests under paragraph (1) shall be approved only for 
the additional amounts that the Secretary determines are necessary for 
a State historic preservation office, tribal historic preservation 
office, or the Advisory Council on Historic Preservation to expedite 
the review and consultation process and only where the Secretary 
determines that such additional amounts will permit completion of the 
historic preservation process in less than the time customarily 
required for such process.''.

SEC. 1605. NATIONAL SCENIC BYWAYS PROGRAM.

    (a) In General.--Section 162 of title 23, United States Code, is 
amended--
            (1) in subsection (a)(1), by inserting a comma after 
        ``Byways'' and by striking ``or All-American Roads'' and 
        inserting ``All-American Roads, or one of America's Byways'';
            (2) in subsection (b)(1)(A), by inserting a comma after 
        ``Byways'' and by striking ``or All-American Roads,'' and 
        inserting ``All-American Roads, or one of America's Byways,'';
            (3) in subsection (b)(2)(A), by inserting a comma after 
        ``Byway'' and by striking ``or All-American Road'' and 
        inserting ``All-American Road, or one of America's Byways'';
            (4) in subsection (b)(2)(B), by inserting a comma after 
        ``Byway'' and by striking ``or All-American Road'' and 
        inserting ``All-American Road, or one of America's Byways''; 
        and
            (5) in subsection (c)(4), by striking ``passing lane,''.
    (b) Research, Technical Assistance, Marketing, and Promotion.--
Section 162 of such title is further amended--
            (1) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively;
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Research, Technical Assistance, Marketing, and Promotion.--
            ``(1) In general.--The Secretary may carry out research, 
        technical assistance, marketing, and promotion with respect to 
        State scenic byways, National Scenic Byways, All-American 
        Roads, or America's Byways.
            ``(2) Cooperation, grants, and contracts.--The Secretary 
        may make grants to or enter into contracts, cooperative 
        agreements, and other transactions with any Federal agency, 
        State agency, authority, association, institution, for-profit 
        or nonprofit corporation, organization, foreign country, or 
        person, including the center for national scenic byways in 
        Duluth, Minnesota, to carry out the provisions of this 
        subsection.
            ``(3) Funds.--The Secretary may use funds made available 
        for the National Scenic Byways Program to carry out projects 
        and activities under this subsection.
            ``(4) Priority.--The Secretary shall give priority to 
        partnerships that leverage private, Federal , or other public 
        funds for research, technical assistance, marketing and 
        promotion.''; and
            (3) by adding the following at the end of subsection (g): 
        ``The Federal share of the cost of projects or activities under 
        subsection (d) may be up to 100 percent.''.

SEC. 1606. RECREATIONAL TRAILS PROGRAM.

    (a) Recreational Trails Program Formula.--Section 104(h)(1) of 
title 23, United States Code, is amended by striking ``research and 
technical assistance under the recreational trails program and for the 
administration of the National Recreational Trails Advisory Committee'' 
and inserting ``research, technical assistance, and training under the 
recreational trails program''.
    (b) Recreational Trails Program Administration.--Section 206 of 
title 23, United States Code, is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) State Responsibilities.--
            ``(1) Eligibility.--To be eligible for apportionments under 
        this section--
                    ``(A) the Governor of the State shall designate the 
                State agency or agencies that will be responsible for 
                administering apportionments made to the State under 
                this section; and
                    ``(B) the State shall establish a State 
                recreational trail committee that--
                            ``(i) has not less than 30 percent of its 
                        voting membership representing nonmotorized 
                        recreational trail users,
                            ``(ii) has not less than 30 percent of its 
                        voting membership representing motorized 
                        recreational trail users,
                            ``(iii) must meet not less than once per 
                        Federal fiscal year in a publicly announced 
                        public meeting, and
                            ``(iv) must be used to develop statewide 
                        trail program policy and to rate, rank, and 
                        recommend recreational trails program projects 
                        for funding.
            ``(2) Obligation requirement.--If a State does not meet the 
        committee requirements within a fiscal year, it is not eligible 
        for an apportionment in the following fiscal year.'';
            (2) by striking subsection (d)(2) and inserting the 
        following:
            ``(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)(A); 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) use of trail crews, youth conservation or 
                service corps, or other appropriate means to carry out 
                activities under this section;
                    ``(H) operation of educational programs to promote 
                safety and environmental protection as those objectives 
                relate to the use of recreational trails, supporting 
                non-law enforcement trail safety and trail use 
                monitoring patrol programs, and providing trail-related 
                training, but in an amount not to exceed 5 percent of 
                the apportionment made to the State for the fiscal 
                year; and
                    ``(I) 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.'';
            (3) by striking subsection (d)(3)(C) and inserting the 
        following:
                    ``(C) Use of youth conservation or service corps.--
                A State shall make available not less than 10 percent 
                of its apportionments for grants, cooperative 
                agreements, or contracts with qualified youth 
                conservation or service corps to perform recreational 
                trails program activities.'';
            (4) in subsection (d)(3)(D), by striking ``(2)(F)'' and 
        inserting ``(2)(I)'';
            (5) by amending subsection (f)--
                    (A) in paragraph (1)--
                            (i) by inserting ``and the Federal share of 
                        the administrative costs of a State'' after 
                        ``project''; and
                            (ii) by striking ``not exceed 80 percent'' 
                        and inserting in its place ``be determined in 
                        accordance with section 120(b)'';
                    (B) in paragraph (2)(A), by striking ``80 percent 
                of'' and inserting ``the amount determined in 
                accordance with section 120(b) for'';
                    (C) in paragraph (2)(B), by inserting ``sponsoring 
                the project'' after ``Federal agency'';
                    (D) by striking paragraph (5);
                    (E) by redesignating paragraph (4) as paragraph 
                (5), and by striking ``80 percent'' and inserting in 
                its place ``the Federal share as determined in 
                accordance with section 120(b)''; and
                    (F) by inserting after paragraph (3)--
            ``(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.'';
            (6) by inserting after subsection (h)(1)(B) the following:
                    ``(C) Planning and environmental assessment costs 
                incurred prior to project approval.--A project funded 
                under subsections (d)(2)(A) through (H) may allow pre-
                approval planning and environmental compliance costs to 
                be credited toward the non-Federal share in accordance 
                with subsection (f), limited to costs incurred less 
                than 18 months prior to project approval.''; and
            (7) by striking paragraph (h)(2) and inserting the 
        following:
            ``(2) Waiver of highway program requirements.--A project 
        funded under this section is intended to enhance recreational 
        opportunity and is not considered a highway project. Projects 
        funded under this section are not subject to sections 112, 113, 
        114, 116, 134, 135, 217, or 301 of this title; or section 303 
        of title 49.''.

SEC. 1607. EXEMPTION OF THE INTERSTATE SYSTEM.

    Subsection 103(c) of title 23, United States Code, is amended by 
inserting the following after paragraph (4):
            ``(5) Exemption of the interstate system.--The Interstate 
        Highway System, or any portion thereof, as designated pursuant 
        to subsection 103(c) of this title, shall not be considered an 
        historic site of national, State or local significance for 
        purposes of 49 U.S.C. 303, 16 U.S.C. 470f, or 16. U.S.C. 470h-2 
        by virtue of being listed as a resource on, or eligible for 
        listing in, the National Register of Historic Places. At the 
        discretion of the Secretary, with the advice of the Department 
        of the Interior, individual elements of the Interstate Highway 
        System may receive the protection of section 106 or section 110 
        of the National Historic Preservation Act (16 U.S.C. 470f and 
        470h-2).''.

SEC. 1608. MODIFICATION TO NHS/STP FOR INVASIVE SPECIES, WETLANDS, 
              BROWNFIELDS, AND ENVIRONMENTAL RESTORATION.

    (a) Modifications to the NHS for Invasive Species, Wetlands, 
Brownfields, and Environmental Restoration.--
            (1) Technical corrections.--Section 103 (b)(6) of title 23, 
        United States Code, is amended in subparagraph (M)--
                    (A) by striking ``1990'' and inserting ``2000''; 
                and
                    (B) by striking ``101-640'' and inserting ``106-
                541''.
            (2) State responsibility.--Section 103 (b)(6) is further 
        amended in subparagraph (M) by inserting ``as determined by the 
        State'' after ``to the maximum extent practicable''.
            (3) Eligible projects for nhs.--Section 103 (b)(6) is 
        further amended by adding at the end the following new 
        subparagraphs:
                    ``(Q) Environmental restoration and pollution 
                abatement to minimize or mitigate impacts of any 
                transportation project funded under this title 
                (including the retrofit or construction of storm water 
                treatment systems to meet State and Federal National 
                Pollutant Discharge Elimination System requirements 
                under Section 402 of the Clean Water Act) to address 
                water pollution or environmental degradation caused or 
                contributed to by transportation facilities. When 
                transportation facilities are undergoing 
                reconstruction, rehabilitation, resurfacing, or 
                restoration, the expenditure of funds under this 
                section for any such environmental restoration or 
                pollution abatement project shall not exceed 20 percent 
                of the total cost of the reconstruction, 
                rehabilitation, resurfacing, or restoration project.
                    ``(R) In accordance with all applicable Federal law 
                (including applicable Federal regulations), 
                participation in the control of invasive plant species 
                and the establishment of native species related to 
                projects funded under this title, which may include 
                participation in statewide inventories of both invasive 
                and desirable plant species and regional native plant 
                habitat conservation and mitigation, and restoration 
                plans. Contributions to the measures described in the 
                preceding sentence may take place concurrent with or in 
                advance of project construction; except that 
                contributions in advance of project construction may 
                occur only if the efforts are consistent with all 
                applicable requirements of Federal law (including 
                applicable Federal regulations) and State 
                transportation planning processes.
                    ``(S) Remediation associated with the construction 
                of a project funded under this title on a brownfield 
                site, as defined in 42 U.S.C. 9601.''.
    (b) Modifications to the Surface Transportation Program for 
Invasive Species, Wetlands, Brownfields, and Environmental 
Restoration.--
            (1) Technical corrections.--Section 133 (b)(11) of title 
        23, is amended--
                    (A) by striking ``1990'' and inserting ``2000''; 
                and
                    (B) by striking ``101-640'' and inserting ``106-
                541'';
            (2) State responsibility.--Section 133 (b)(11) is further 
        amended by inserting ``determined by the State'' after ``to the 
        maximum extent practicable''.
            (3) Eligible projects for surface transportation program.--
                    (A) Environmental restoration and pollution 
                abatement.--Section 133 of title 23, United States 
                Code, is amended by striking (b)(14) and inserting the 
                following:
            ``(14) Environmental restoration and pollution abatement to 
        minimize or mitigate impacts of any transportation project 
        funded under this title (including the retrofit or construction 
        of storm water treatment systems to meet State and Federal 
        National Pollutant Discharge Elimination System requirements 
        under Section 402 of the Clean Water Act) to address water 
        pollution or environmental degradation caused or contributed to 
        by transportation facilities. When transportation facilities 
        are undergoing reconstruction, rehabilitation, resurfacing, or 
restoration, the expenditure of funds under this section for any such 
environmental restoration or pollution abatement project shall not 
exceed 20 percent of the total cost of the reconstruction, 
rehabilitation, resurfacing, or restoration project.''.
                    (B) Invasive species control and brownfields 
                remediation efforts.--Section 133(b) of such title, as 
                amended by this Act, is further amended by adding at 
                the end the following new paragraphs:
            ``(16) In accordance with all applicable Federal law 
        (including regulations), participation in the control of 
        invasive plant species and the establishment of native species 
        related to projects funded under this title, which may include 
        participation in statewide inventories of both invasive and 
        desirable plant species and regional native plant habitat 
        conservation and mitigation, and restoration plans. 
        Contributions to the measures described in the preceding 
        sentence may take place concurrent with or in advance of 
        project construction; except that contributions in advance of 
        project construction may occur only if the efforts are 
        consistent with all applicable requirements of Federal law 
        (including regulations) and State transportation planning 
        processes.
            ``(17) Remediation associated with the construction of a 
        project funded under this title on a brownfield site, as 
        defined in 42 U.S.C. 9601.''.

SEC. 1609. STANDARDS.

    (a) In General.--Section 109(a) of title 23 of the United States 
Code is amended by--
            (1) striking ``and'' at the end of paragraph (1);
            (2) striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) adding the following paragraph at the end of subsection 
        (a):
            ``(3) consider the preservation, historic, scenic, natural 
        environment, and community values.''.
    (b) Context Sensitive Design.--Section 109 of such title is amended 
by striking subsection (p) and inserting the following:
    ``(p) Context Sensitive Design.--
            ``(1) The Secretary shall encourage States to design 
        projects funded under title 23 to--
                    ``(A) allow for the preservation of environmental, 
                scenic, community, and/or historic values;
                    ``(B) ensure safe use of the facility for both 
                passenger and freight movement;
                    ``(C) provide for consideration of the context of 
                the locality;
                    ``(D) encourage access for other modes of 
                transportation; and
                    ``(E) comply with subsection (a).
            ``(2) Notwithstanding subsections (b) and (c), the 
        Secretary may approve a project for the National Highway System 
        if the project is designed to achieve the criteria of 
        subparagraphs (A) through (E).''.

SEC. 1610. USE OF HOV LANES.

    Section 102 of title 23, United States Code, is amended by striking 
subsection (a) and inserting the following:
    ``(a) High Occupancy Vehicle (HOV) Passenger Requirements.--
            ``(1) In general.--A State transportation department or 
        other responsible local agencies shall establish the occupancy 
        requirements of vehicles operating in HOV facilities; except 
        that no fewer than 2 occupants per vehicle may be required, 
        unless otherwise provided in paragraph (2).
            ``(2) Exceptions to hov occupancy requirements.--
                    ``(A) Motorcycles.--Motorcycles shall not be 
                considered single occupant vehicles and shall be 
                allowed to use HOV facilities, except that upon 
                certification by the responsible agency to the 
                Secretary, the agency may restrict such use by 
                motorcycles if such use would create a safety hazard.
                    ``(B) Low emission and energy-efficient vehicles.--
                            ``(i) Responsible agencies shall have the 
                        option of allowing qualifying low emission and 
                        energy-efficient vehicles to use HOV facilities 
                        if they do not satisfy the established 
                        occupancy requirements.
                            ``(ii) Responsible agencies that allow 
                        qualifying low emission and energy-efficient 
                        vehicles to use HOV facilities shall--
                                    ``(I) establish a program that 
                                addresses how such qualifying vehicles 
                                are selected and certified;
                                    ``(II) establish requirements for 
                                labeling qualifying vehicles and 
                                procedures for enforcing such vehicles;
                                    ``(III) continuously monitor, 
                                evaluate, and report on performance; 
                                and
                                    ``(IV) establish the policies and 
                                procedures that will limit or restrict 
                                the use of such vehicles as necessary, 
                                to ensure that the performance of 
                                individual facilities or the entire 
                                system does not become seriously 
                                degraded.
                            ``(iii) As used in this subparagraph, the 
                        term ``low emission and energy-efficient 
                        vehicles'' means vehicles that have been 
                        certified--
                                    ``(I) by the Administrator of the 
                                Environmental Protection Agency to have 
                                a 45-mile-per-gallon or greater fuel 
                                economy highway rating; or are defined 
                                as an alternative fuel vehicle under 
                                section 301(2) of the Energy Policy Act 
                                of 1992 (42 U.S.C. 13211(2)); and
                                    ``(II) as meeting Tier II emission 
                                level established in regulations 
                                prescribed by the Administrator of the 
                                Environmental Protection Agency under 
                                section 202(i) of the Clean Air Act (42 
                                U.S.C. 7521(i)) for that make and model 
                                year vehicle.
                    ``(C) Bicycles.--Responsible agencies shall have 
                the option of allowing bicycles on surface street HOV 
                facilities when there is insufficient space within the 
                roadway or public right-of-way to establish and 
                designate a bicycle lane.
                    ``(D) Tolling of vehicles.--Responsible agencies 
                may permit vehicles, in addition to those vehicles 
                described in paragraphs (A), (B), and (E) that do not 
                satisfy the established occupancy requirements, to use 
                an HOV facility only if they charge such vehicles a 
                toll. The authority of an agency to impose a toll shall 
be subject to section 129 of this title. Any agency electing to toll 
such vehicles shall also--
                            ``(i) establish a program that addresses 
                        how motorists can enroll and participate;
                            ``(ii) develop, manage, and maintain a 
                        system that will automatically collect the 
                        tolls that vehicles must pay;
                            ``(iii) continuously monitor, evaluate, and 
                        report on performance;
                            ``(iv) establish the policies and 
                        procedures for varying the toll that is charged 
                        to manage the demand to use the subject 
                        facilities and enforcing violations; and
                            ``(v) establish procedures that will limit 
                        or restrict the use of such vehicles as 
                        necessary, to ensure that the performance of 
                        individual facilities or the entire system does 
                        not become seriously degraded.
                    ``(E) Designated public transportation vehicles.--
                            ``(i) In this subparagraph, the term 
                        ``designated public transportation vehicles'' 
                        means vehicles that provide designated public 
                        transportation, as defined under section 12141 
                        of title 42, and that are owned or operated by 
                        a public entity or that are operating under 
                        contract to a public entity.
                            ``(ii) Responsible agencies may permit 
                        designated public transportation vehicles to 
                        use HOV facilities if they do not satisfy the 
                        established occupancy requirements.
                            ``(iii) Any agency that permits designated 
                        public transportation vehicles to use HOV 
                        facilities if they do not satisfy the 
                        established occupancy requirements shall--
                                    ``(I) establish requirements for 
                                clearly and identifiably labeling 
                                vehicles operating under contract to 
                                the public entity with the name of the 
                                public entity on all sides of the 
                                vehicle;
                                    ``(II) establish the policies and 
                                procedures to ensure that vehicles 
                                operating under contract to the public 
                                entity are in compliance with the 
                                labeling requirement under subclause 
                                (I) of this clause;
                                    ``(III) continuously monitor, 
                                evaluate, and report on performance; 
                                and
                                    ``(IV) establish the policies and 
                                procedures that will limit or restrict 
                                the use of such vehicles as necessary, 
                                to ensure that the performance of 
                                individual facilities or the entire 
                                system does not become seriously 
                                degraded.
            ``(3) HOV facility management, operation, and monitoring.--
        Agencies that permit any of the exceptions specified in 
        paragraph (a)(2) shall be responsible for the following:
                    ``(A) Performance monitoring, evaluation, and 
                reporting.--Responsible agencies shall be required to 
                establish, manage, and support a performance 
                monitoring, evaluation, and reporting program if they 
                permit any of the exceptions specified in paragraph 
                (a)(2). This program shall continuously monitor, 
                assess, and report on the impacts that any of these 
                specific types of allowed vehicles may have on the 
                operation of individual HOV facilities and the entire 
                HOV system.
                    ``(B) Operation of hov facility or system.--
                Responsible agencies shall limit or discontinue 
                permitting any of the exceptions specified in paragraph 
                (a)(2), if the presence of any of these specific types 
                of allowed vehicles seriously degrades the operation of 
                individual HOV facilities or the entire HOV system. For 
                purposes of this section, ``seriously degraded'' means 
                that an HOV facility located on a freeway, or similar 
                type of roadway, fails to maintain a minimum average 
                operating speed of at least 45 miles per hour 90 
                percent of the time over a consecutive six-month period 
                during weekday peak travel periods. For HOV facilities 
                on other types of roadways, the minimum average 
                operating speed, performance threshold, and associated 
                time period shall be established based on the 
                conditions unique to each roadway and agreed to by the 
                responsible agencies.''.

SEC. 1611. BICYCLE TRANSPORTATION AND PEDESTRIAN WALKWAYS.

    (a) In General.--Section 217 of title 23, United States Code, is 
amended--
            (1) in subsection (a), by inserting ``pedestrian and'' 
        after ``safe'';
            (2) in subsection (e), by striking ``bicycles'' each time 
        it appears and inserting ``pedestrians or bicyclists'' in each 
        instance;
            (3) by striking subsection (f) and inserting the following:
    ``(f) Federal Share.--The Federal share of the construction of 
bicycle transportation facilities and pedestrian walkways and for 
carrying out nonconstruction projects related to safe pedestrian and 
bicycle use shall be determined in accordance with section 120(b).'';
            (4) in subsection (j), by inserting after paragraph (4) the 
        following:
            ``(5) Shared use path.--The term ``shared use path'' means 
        a multi-use trail or other path, physically separated from 
        motorized vehicular traffic by an open space or barrier, either 
        within a highway right-of-way or within an independent right-
        of-way, and usable for transportation purposes. Shared use 
        paths may be used by pedestrians, bicyclists, skaters, 
        equestrians, and other nonmotorized users.''; and
            (5) by adding after subsection (j) the following:
    ``(k) User Fees.--At the option of each State, a shared use path 
funded under this section is not subject to the provisions of 23 U.S.C. 
301, provided that the shared use path is not within a highway right-
of-way, and the income received from user fees is used for ongoing 
maintenance and operation of shared use paths within the State.
    ``(l) 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 to--
                    ``(A) operate a national bicycle and pedestrian 
                clearinghouse;
                    ``(B) develop information and educational programs; 
                and
                    ``(C) disseminate techniques and strategies for 
                improving bicycle and pedestrian safety.
            ``(2) Funding.--Funds provided under section 104(p) of this 
        title shall be available to carry out the provisions of this 
        section.
            ``(3) Applicability of title 23.--Funds authorized 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) Set-Aside.--Section 104 of title 23, United States Code, is 
amended by adding, after subsection (o), as added by this Act, the 
following:
    ``(p) Bicycle and Pedestrian Safety Grants.--On October 1 of each 
fiscal year for fiscal years 2004 through 2009, the Secretary, after 
making the deductions authorized by subsections (a) and (f), shall set-
aside $500,000 of the remaining funds authorized to be apportioned 
under subsection (b)(3) for carrying out the Bicycle and Pedestrian 
Safety Grants under section 217 of this title.''.

SEC. 1612. TRANSPORTATION, ENERGY, AND ENVIRONMENT.

    (a) In General.--As part of the National Climate Change Technology 
Initiative and the Climate Change Research Initiative, the Secretary 
shall establish and carry out a multimodal energy and climate change 
program to study the relationship of transportation, energy, and 
climate change.
    (b) Contents.--The program to be carried out under this section 
shall include, but not be limited to, research designed to--
            (1) identify, develop and evaluate strategies to improve 
        energy efficiency and reduce greenhouse gas emissions from 
        transportation sources; and
            (2) identify and evaluate the potential effects of climate 
        changes on the nation's transportation systems, and strategies 
        to address these effects;
    (c) Project Selection.--Activities to be undertaken in this program 
will be determined by an internal steering committee established by the 
Secretary of Transportation. This intermodal committee shall include 
representatives from the Office of the Secretary and operating 
administrations within the Department of Transportation as designated 
by the Secretary.
    (d) Grants, Cooperative Agreements and Contracts.--The Secretary 
may carry out this program independently or by making grants to, or 
entering into contracts, cooperative agreements, and other 
transactions, with a Federal agency, State agency, local agency, 
authority, association, nonprofit or for-profit corporation, or 
institution of higher education.
    (e) Funding.--
            (1) Highway account.--
                    (A) Funding.--There is authorized to be 
                appropriated from the Highway Trust Fund (other than 
                the Mass Transit Account) to carry out this section 
                $3,600,000 for fiscal year 2004, $2,200,000 for fiscal 
                year 2005, $2,200,000 for fiscal year 2006, $2,200,000 
                for fiscal year 2007, $2,700,000 for fiscal year 2008, 
                and $2,700,000 for fiscal year 2009.
                    (B) Contract authority.--Funds authorized from the 
                Highway Trust Fund (other than the Mass Transit 
                Account) to carry out this Section shall be available 
                for obligation in the same manner as if the funds were 
                apportioned under Chapter 1 of Title 23, United States 
                Code, except that the Federal share of the cost of a 
                project or activity carried out using such funds shall 
                not exceed 100 percent and such funds shall remain 
                available until expended.
            (2) Mass transit account.--
                    (A) Funding.--There is authorized to be 
                appropriated from the Mass Transit Account of the 
                Highway Trust Fund to carry out this section $400,000 
                for fiscal year 2004, $300,000 for fiscal year 2005, 
                $300,000 for fiscal year 2006, $300,000 for fiscal year 
                2007, $300,000 for fiscal year 2008, and $300,000 for 
                fiscal year 2009.
                    (B) Contract authority.--A grant or contract that 
                is financed with amounts paid under this subparagraph 
                from the Mass Transit Account is a contractual 
                obligation of the United States Government to pay the 
                Government's share of the cost of the project.
                    (3) Airport and airway trust fund.--There is 
                authorized to be appropriated from the Airport and 
                Airway Trust Fund to carry out this section $500,000 
                for fiscal year 2005, $500,000 for fiscal year 2006, 
                and $500,000 for fiscal year 2007.

SEC. 1613. IDLING REDUCTION FACILITIES IN INTERSTATE RIGHTS-OF-WAY.

    Section 111 of Title 23 of the United States Code is hereby amended 
by adding at the end the following:
    ``(d) Idling Reduction Facilities in Interstate Rights-of-Way.--
Notwithstanding the prohibition on commercial establishments set forth 
in subsection (a), any State may permit electrification or other idling 
reduction facilities and equipment, for use by motor vehicles used for 
commercial purposes, to be placed in rest and recreation areas, and in 
safety rest areas, constructed or located on rights-of-way of the 
Interstate System in such State, and may charge, or permit charges for 
the use of such facilities. The exclusive purpose of such facilities or 
technologies shall be to enable operators of such vehicles to turn off 
their engines while parked and still have heating, air conditioning, 
electricity, and communication services in the vehicle.''.

SEC. 1614. APPROPRIATION FOR TRANSPORTATION PURPOSES OF LANDS OR 
              INTEREST IN LANDS OWNED BY THE UNITED STATES.

    (a) In General.--Section 317 of title 23, United States Code, is 
amended to read as follows:
``Sec. 317. Appropriation for transportation purposes of lands or 
              interest in lands owned by the United States
    ``(a) In General.--If the Secretary determines that any part of the 
lands or interests in land owned by the United States are reasonably 
necessary for any project administered under this title or as a source 
for materials for such a project, the Secretary is authorized to file 
with the Secretary of the Department supervising the administration of 
such lands or interests in lands a description and a map showing the 
portion of such lands or interests in lands which it is necessary to 
appropriate. The Secretary of such Department shall have a period of up 
to four months to review the proposed appropriation and to designate 
reasonable mitigation measures necessary to protect the adjacent 
federal lands from adverse environmental impacts, or to certify that 
the proposed appropriation is contrary to the purposes for which such 
lands or materials have been reserved. If no such certification is 
received, the Secretary may appropriate and transfer such lands or 
interests in lands to the State transportation department, or its 
nominee, subject to such reasonable mitigation measures designated 
above. If at any time the need for such lands or materials for 
transportation purposes shall no longer exist, notice of the fact shall 
be given by the State transportation department to the Secretary and 
the Secretary of the Department from which they had been appropriated. 
Such lands or materials may, at the discretion of the Secretary of the 
Department from which they had been appropriated or its designee, 
revert to the United States, under the control of such Secretary, or 
its designee. Unless otherwise instructed by the Secretary, prior to 
any such reversion the State transportation department shall restore 
the land to its former condition.
    ``(b) Prior Restrictions or Encumbrances.--Notwithstanding any 
other provision of law, the acquisition and use of land under this 
section may proceed irrespective of any prior deed restrictions or 
other encumbrances that were imposed as a condition on the receipt of 
Federal funds.''.
    (b) Conforming Amendment.--The analysis for chapter 3 of such title 
is revised by amending the item relating to section 317 to read as 
follows:

``317.  Appropriation for transportation purposes of lands or interest 
                            in lands owned by the United States.''.

SEC. 1615. TOLL PROGRAMS.

    (a) Interstate System Reconstruction and Rehabilitation Pilot 
Program.--Sec. 1216(b) of the Transportation Equity Act for the 21st 
Century is amended--
            (1) in paragraph (1), by striking ``that could not 
        otherwise be adequately maintained or functionally improved 
        without the collection of tolls'';
            (2) in paragraph (3), by striking subparagraph (C) and 
        inserting the following:
                    ``(C) An analysis demonstrating that financing the 
                reconstruction or rehabilitation of the facility with 
                the collection of tolls under this pilot program is the 
                most efficient, economical, or expeditious way to 
                advance the project.''; and
            (3) in paragraph (4),
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) the State's analysis showing that financing 
                the reconstruction or rehabilitation of this facility 
                with the collection of tolls under this program is the 
                most efficient, economical, or expeditious way to 
                advance the project is reasonable;'';
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) the facility needs reconstruction or 
                rehabilitation;'';
                    (C) by striking subparagraph (C); and
                    (D) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively.
    (b) Variable Toll Pricing Program.--
            (1) Establishment.--The Secretary, notwithstanding sections 
        129 and 301 of title 23, United States Code, may permit a State 
        or public authority to toll any highway, bridge, or tunnel, 
        including facilities on the Interstate System, to manage 
        existing high levels of congestion or reduce emissions in a 
        nonattainment area or maintenance area.
            (2) Basic program.--The following conditions apply to any 
        variable toll pricing program established under this section:
                    (A) Limitation on use of revenues.--All toll 
                revenues received from the operation of the toll 
                facility shall be used first for debt service, 
                reasonable return on investment of any private 
                financing, and the costs necessary for proper operation 
                and maintenance of the toll facility (including 
                reconstruction, resurfacing, restoration, and 
                rehabilitation). If the State or public authority 
                certifies annually that the tolled facility is being 
                adequately maintained, then the State or public 
                authority may use any excess toll revenues for projects 
                eligible for Federal assistance under title 23, United 
                States Code.
                    (B) Agreement.--Before the Secretary may permit 
                tolling under this subsection, and for each facility 
                that may be tolled, the Secretary and the State or 
                public authority must enter into an agreement providing 
                for the conditions in subparagraphs (A) and (C) of this 
                paragraph. The agreement shall terminate upon the 
                decision of the State or public authority to 
                discontinue its variable tolling program for that 
                facility. If there is any debt outstanding on the 
                facility at the time the decision is made to 
                discontinue the program, the facility may continue to 
                be tolled in accordance with the terms of the agreement 
                until the debt is retired.
                    (C) Requirements.--
                            (i) Variable price requirement.--The 
                        Secretary shall require, for each facility that 
                        may be tolled under this subsection, that the 
                        tolls vary in price according to time of day, 
                        as appropriate, to manage congestion or to 
                        improve air quality.
                            (ii) HOV passenger requirements.--In 
                        addition to the exceptions to the high 
                        occupancy vehicle passenger requirements 
                        established under section 102(a)(2) of title 
                        23, United States Code, a State may permit 
                        vehicles with fewer than 2 occupants to operate 
                        in high occupancy vehicle lanes as part of a 
                        variable toll pricing program established under 
                        this subsection.
                    (D) Limitation on federal share.--The Federal share 
                payable for projects on the tolled facility, including 
                projects to install toll collection facilities, shall 
                be a percentage determined by the State but shall not 
                exceed 80 percent.
            (3) Eligibility.--To be eligible to participate in the 
        program, a State or public authority shall provide to the 
        Secretary--
                    (A) a description of the congestion or air quality 
                problems sought to be addressed under this program;
                    (B) an identification of the goals sought to be 
                achieved and the performance measures that would be 
                used to gauge the success made toward reaching those 
                goals; and
                    (C) such other information as the Secretary may 
                require.
            (4) Definitions.--
                    (A) Maintenance area.--The term ``maintenance 
                area'' has the same meaning given the term under 
                section 101 of title 23, United States Code.
                    (B) Nonattainment area.--The term ``nonattainment 
                area'' has the same meaning given the term under 
                section 7501 of title 42, United States Code.
    (c) Repeal.--Section 1012(b) of the Intermodal Surface 
Transportation Efficiency Act, as amended by section 1216(a) of the 
Transportation Equity Act for the 21st Century, is repealed. 
Notwithstanding the repeal of section 1012(b), the Secretary shall 
monitor and allow any value pricing program established under a 
cooperative agreement in effect on the date of enactment of this Act to 
continue.

SEC. 1616. OZONE STANDARDS, PARTICULATE MATTER STANDARDS, AND REGIONAL 
              HAZE PROGRAM.

    (a) Title.--The heading of title VI of the Transportation Equity 
Act for the 21st Century (Public Law 105-178; 112 Stat. 463; June 9, 
1998) is amended to read as follows:

``TITLE VI--OZONE STANDARDS, PARTICULATE MATTER STANDARDS, AND REGIONAL 
                             HAZE PROGRAM''

    (b) Findings and Purpose.--Section 6101 of such Act is amended to 
read as follows:
``Sec. 6101. Findings and Purpose
    ``(a) The Congress finds that--
            ``(1) the fine particle (PM-2.5) standards promulgated by 
        the Administrator of the Environmental Protection Agency 
        (referred to in this title as ``Administrator'') in July 1997 
        were established to protect the public health and welfare;
            ``(2) there is a continuing need for PM-2.5 air quality 
        monitoring data;
            ``(3) with three years of PM-2.5 air quality monitoring 
        data for all areas expected to be available by 2003 it is 
        important to move forward to designate areas as attainment or 
        nonattainment and proceed with implementation of these 
        standards;
            ``(4) it will be beneficial to States to develop and submit 
        implementation plans for the PM-2.5 standards and the regional 
        haze program at the same time; and
            ``(5) Western States that participated in the Grand Canyon 
        Visibility Transport Commission should be permitted to submit 
        plans in 2003 to implement recommendations set forth in the 
        Commission's report.
    ``(b) The purposes of this title are--
            ``(1) to ensure the availability of PM-2.5 air quality 
        monitoring data;
            ``(2) to establish a deadline for the designation of areas 
        for the PM-2.5 standards; and
            ``(3) to ensure that States are able to develop PM-2.5 and 
        regional haze implementation plans at the same time for all 
        areas within a State, while continuing to allow nine Western 
        States the option of submitting regional haze plans in 2003 to 
        implement regional haze requirements based on the 1996 
        recommendations of the Grand Canyon Visibility Transport 
        Commission.''.
    (c) Particulate Matter and Regional Haze.--
            (1) The heading of section 6102 of the Transportation 
        Equity Act for the 21st Century is amended to read as follows:
``Sec. 6102. Particulate matter and regional haze programs''
            (2) Section 6102(c) of such Act is amended to read as 
        follows:
    ``(c)(1) The Governors shall be required to submit designations 
referred to in section 107(d)(1) of the Clean Air Act (42 U.S.C. 
7407(d)(1)) for each area following promulgation of the July 1997 PM-
2.5 national ambient air quality standard by September 30, 2003, based 
on air quality monitoring data collected in accordance with any 
applicable Federal reference methods for the relevant areas. Only data 
from the monitoring network designated in subsection (a) and other 
Federal reference method PM-2.5 monitors shall be considered for such 
designations. Nothing in the previous sentence shall be construed as 
affecting the Governor's authority to designate an area initially as 
nonattainment, and the Administrator's authority to promulgate the 
designation of an area as nonattainment, under section 107(d)(1) of the 
Clean Air Act, based on its contribution to ambient air quality in a 
nearby nonattainment area.
    ``(2)(A) Each State shall submit, for the entire State, the State 
implementation plan revisions to meet the requirements promulgated by 
the Administrator under section 169B(e)(1) of the Clean Air Act (42 
U.S.C. 7492(e)(1)) (hereinafter in this paragraph referred to as `the 
regional haze requirements') by 3 years after the date the 
Administrator promulgates the designations referred to in subsection 
(d) for such State.
    ``(B) The provisions of subparagraph (A) of this paragraph shall 
not preclude the implementation of the agreements and recommendations 
set forth in the Grand Canyon Visibility Transport Commission Report 
dated June 1996. These provisions shall not preclude the submission of 
State implementation plan revisions by the States of Arizona, 
California, Colorado, Idaho, Nevada, New Mexico, Oregon, Utah, or 
Wyoming by December 31, 2003, for implementation of the regional haze 
requirements as they apply to such States. Each of the aforementioned 
States submitting such plan revisions shall also submit statewide 
implementation plan revisions, as required under subparagraph (A), to 
address, as necessary, any additional mandatory Class I Federal areas 
not addressed by the revisions submitted pursuant to the preceding 
sentence.''.
            (3) Section 169B(e)(2) of the Clean Air Act (42 U.S.C. 
        7492(e)(2)) is repealed.
            (4) Section 6102(d) of the Transportation Equity Act for 
        the 21st Century is amended to read as follows:
    ``(d) Notwithstanding any other provision of law, the Administrator 
shall promulgate the designations referred to in subsection (d) of 
section 107 of the Clean Air Act for each area of each State for the 
July 1997 PM-2.5 national ambient air quality standards by December 31, 
2004.''.
    (d) Conforming Amendment.--Section 1(b) of the Transportation 
Equity Act for the 21st Century is amended in the Table of Contents--
            (1) in the heading for title VI, by striking ``OZONE AND 
        PARTICULATE MATTER STANDARDS'' and inserting ``OZONE STANDARDS, 
        PARTICULATE MATTER STANDARDS, AND REGIONAL HAZE PROGRAM''; and
            (2) in the item relating to section 6102, by striking 
        ``monitoring program'' and inserting ``and regional haze 
        programs''.

SEC. 1617. INDEMNIFICATION ON CERTAIN RAILBANKED PROJECTS.

    Where, pursuant to a final judgment, a Federal court finds the 
United States liable by operation of section 8(d) the National Trails 
System Act (enacted by section 208 of Pub. L. 98-11, 97 Stat. 48) (16 
U.S.C. 1247(d)), for a taking of property under the Fifth Amendment to 
the United States Constitution, a State that has received funds, after 
the date of enactment of this Act, under a Federal-aid highway program 
established under title 23, United States Code, and that has used a 
portion of those funds to acquire, develop, maintain or improve a 
railroad right-of-way that is the subject of the judgment, shall 
indemnify the United States up to the lesser amount of the judgment 
awarded (including attorney fees) or the Federal-aid highway program 
funds received in connection with that railroad right-of-way.

     Subtitle G--Program Efficiencies and Improvements--Operations

SEC. 1701. TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS.

    (a) Definitions.--Section 101(a) of title 23, United States Code, 
is amended--
            (1) in paragraph (3)--
                    (A) by inserting ``and intermodal operations to 
                enhance security'' after ``program'' in the first 
                sentence; and
                    (B) in subparagraph (G), by striking ``traffic 
                control systems,'';
            (2) in paragraph (18), as redesignated by this Act, by 
        inserting ``costs incurred by transportation agencies 
        attributed to operation of technology used to monitor critical 
        transportation infrastructure for security purposes,'' after 
        ``rent,'' and by inserting ``transportation systems management 
        and operations and'' after ``with'';
            (3) in paragraph (19)(A)(i), as redesignated by this Act, 
        by inserting--
                    (A) ``transportation system management and 
                operations, including,'' after ``for'';
                    (B) ``and transportation security'' after 
                ``installation of traffic''; and
                    (C) ``equipment and programs for transportation 
                response to manmade and natural disasters,'' after 
                ``incident management programs,'';
            (4) by redesignating paragraphs (39) and (40), as 
        redesignated by this Act, as paragraphs (40) and (41), 
        respectively; and
            (5) by inserting new paragraph (39) after paragraph (38), 
        as follows:
            ``(39) Transportation systems management and operations.--
        The term `transportation systems management and operations' 
        means an integrated program to optimize the performance of 
        existing infrastructure through the implementation of multi- 
        and intermodal, cross-jurisdictional systems, services, and 
        projects designed to preserve capacity and improve security, 
        safety, and reliability of Federal-aid highways. Transportation 
        systems management and operations 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 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) Congestion Mitigation and Air Quality Improvement Program 
Eligibility.--Section 149(b)(5) of such title is amended by inserting 
``improve transportation systems management and operations,'' after 
``intersections,''.
    (c) Surface Transportation Program Eligibility.--Section 133(b) of 
such title, as amended by section 1608 of this Act, is further amended 
by adding at the end the following:
            ``(17) Regional transportation operations collaboration and 
        coordination activities that are associated with regional 
        improvements, such as traffic incident management, technology 
        deployment, emergency management and response, traveler 
        information, and regional congestion relief.''.
    (d) Transportation Systems Management and Operations.--Chapter 1 of 
such title, as amended by this Act, is further amended by inserting the 
following new section after section 164:
``Sec. 165. Transportation systems management and operations
    ``(a) Authority.--To ensure efficient and effective transportation 
systems management and operations on Federal-aid highways, through 
collaboration, coordination, and real-time information sharing, at a 
regional level, between transportation system managers and operators, 
public safety officials, and the general public, and to manage and 
operate Federal-aid highways in a coordinated manner to preserve the 
capacity and maximize the performance of existing highway and transit 
facilities for travelers and carriers, the Secretary of Transportation 
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 the 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 regions' 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 (highways, transit, public safety), 
        jurisdictions (including states, cities, counties, 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:
            ``(1) Assist and cooperate with other Federal departments 
        and agencies, State and local governments, metropolitan 
        planning organizations, private industry, 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 
        general public to increase security, safety, and reliability of 
        our 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 but 
        not limited to equipment procured in preparation for manmade or 
        natural disasters and emergencies, system hardware, software, 
        and software integration services. In developing such 
        guidelines, the Secretary may consider innovative procurement 
        methods that support the timely and streamlined execution of 
        transportation system management and operations programs and 
        projects.
            ``(3) Approve for Federal financial assistance from funds 
        apportioned under section 104(b)(3) of this title support for 
        regional operations collaboration and coordination activities 
        that are associated with regional improvements, such as traffic 
        incident management, technology deployment, emergency 
        management and response, traveler information, and congestion 
        relief.''.
    (e) Conforming Amendment.--The analysis for chapter 1 of such title 
is amended by inserting after the item relating to section 164 the 
following:

``165. Transportation systems management and operations.''.

SEC. 1702. REAL-TIME SYSTEM MANAGEMENT INFORMATION PROGRAM.

    (a) Goals and Purposes.--
            (1) Goals.--The goals of the real-time system management 
        information program are to provide the nationwide capability to 
        monitor, in real-time, the traffic and travel conditions of our 
        nation's major highways and to widely share that information to 
        improve the security of the surface transportation system, 
        address congestion problems, support improved response to 
        weather events, and facilitate national and regional traveler 
        information.
            (2) Purposes.--The purposes of the real-time system 
        management information program are to--
                    (A) establish a nationwide system of basic real-
                time information for managing and operating our surface 
                transportation system;
                    (B) identify longer range real-time highway and 
                transit monitoring needs and develop plans and 
                strategies for meeting those needs; and
                    (C) provide the capability and means to share that 
                data with state and local governments, and the 
                traveling public.
    (b) Data Exchange Formats.--Within one year of enactment of this 
Act, the Secretary shall establish data exchange formats to ensure that 
the data provided by highway and transit monitoring systems, including 
statewide incident reporting systems can readily be exchanged across 
jurisdictional boundaries, facilitating nationwide availability of 
information.
    (c) Statewide Incident Reporting System.--Within 2 years of 
enactment of this legislation, each State shall establish a statewide 
incident reporting system.
    (d) Regional Intelligent Transportation System Architecture.--
            (1) As State and local governments develop or update their 
        regional ITS architectures, as specified in section 940.9 of 
        title 23, Code of Federal Regulations (Regional ITS 
        Architecture), they shall explicitly address their real-time 
        highway and transit information needs and the systems needed to 
        meet those needs. This specific incorporation of information 
        needs should address coverage, monitoring systems, data fusion 
        and archiving, and methods of exchanging or sharing this 
        information.
            (2) States are encouraged to incorporate the data exchange 
        formats developed by the Secretary to ensure that the data 
        provided by highway and transit monitoring systems can readily 
        be exchanged across state and local governments, and with the 
        traveling public.
    (e) Eligilibity.--
            (1) Use of surface transportation program funds.--Subject 
        to project approval by the Secretary, a State may obligate 
        funds apportioned to it under section 104(b)(3) of title 23, 
        United States Code, for activities related to the planning and 
        deployment of real-time monitoring elements.
            (2) Use of national highway system funds.--Subject to 
        project approval by the Secretary, a State may obligate funds 
        apportioned to it under section 104(b)(1) of title 23, United 
        States Code, for activities related to the planning and 
        deployment of real-time monitoring elements.
            (3) Use of state planning and research funds.--Subject to 
        project approval by the Secretary, a State may obligate funds 
        available under section 104(i) of title 23, United States Code, 
        as amended by section 1503 of this Act, for activities related 
        to the planning of real-time monitoring elements.
    (f) Definition.--In this section, the term ``statewide incident 
reporting system'' means a statewide system for facilitating the real-
time electronic reporting of incidents to a central location for use in 
monitoring the event, providing accurate traveler information, and 
responding to the incident as appropriate.

SEC. 1703. INTELLIGENT TRANSPORTATION SYSTEMS PERFORMANCE INCENTIVE 
              PROGRAM.

    (a) In General.--The Secretary shall establish a comprehensive 
incentive program to accelerate the integration and interoperability of 
intelligent transportation systems in order to improve the performance 
of the surface transportation system in metropolitan and rural areas.
    (b) Definitions.--
            (1) Intelligent transportation systems.--The term 
        ``intelligent transportation systems'' has the meaning given 
        the term under section 5507 of this Act.
            (2) National highway system.--The term ``National Highway 
        System'' means the Federal-aid highway system described in 
        section 103(b) of title 23, United States Code.
            (3) Region.--The term ``region'' means any geographic area 
        that identifies the boundaries of the regional Intelligent 
        Transportation Systems architecture and is defined by the needs 
        of the participating agencies and their stakeholders for the 
        purposes of improving surface transportation operations. A 
        region may include a metropolitan planning area, a corridor, a 
        State, or multiple states.
    (c) Goal.--The goal of the intelligent transportation systems 
performance incentive program is to reduce traffic congestion, improve 
transportation system reliability, provide better customer service to 
users of the highway system, and improve safety and security by 
providing financial incentives to transportation agencies to invest in 
proactively monitoring and managing the performance of the 
transportation system.
    (d) Purpose.--The purpose of the intelligent transportation systems 
performance incentive program is to support the deployment and 
integration of intelligent transportation systems based on the 
performance of these systems in improving the management and operation 
of their surface transportation systems.
    (e) Regulations.--
            (1) Issuance.--The Secretary of Transportation shall issue 
        regulations establishing a funding formula for the distribution 
        of funds under this section.
            (2) Basis for funding formula.--The funding formula shall 
        be based on criteria that reflect each State's--
                    (A) reductions in delay due to incidents;
                    (B) improvements in the operation and safety of 
                signalized intersections;
                    (C) reductions in delay and improvements in safety 
                of work zones on the National Highway System;
                    (D) improvements in the efficiency and reliability 
                of transit services;
                    (E) overall improvement in integrated regional 
                transportation operations;
                    (F) improvements in the quality and availability of 
                traveler information;
                    (G) improved crash notification; and
                    (H) improvements in the safety and productivity of 
                commercial vehicle operations on the National Highway 
                System.
            (3) Effective date.--The funding formula shall take effect 
        in the fiscal year established by the Secretary in the 
        regulations.
            (4) Apportionment phase-in.--The funding formula shall 
        provide for the apportionment of funds in the following manner:
                    (A) First fiscal year.--In the first fiscal year 
                that the funding formula is in effect, 50 percent of 
                the sums authorized to be appropriated for expenditure 
                on the intelligent transportation systems performance 
                incentive program for that fiscal year shall be 
                apportioned according to the funding formula developed 
                under this subsection and 50 percent of the amount 
                shall be apportioned in accordance with the formula set 
                forth in section 104(b)(1)(A)(i) through (iv) of title 
                23, United States Code.
                    (B) Second fiscal year.--In the second fiscal year 
                the funding formula is in effect, 75 percent of the 
                sums authorized to be appropriated for expenditure on 
                the intelligent transportation systems performance 
                incentive program for that fiscal year shall be 
                apportioned according to the funding formula developed 
                under this subsection and 25 percent of the amount 
                shall be apportioned in accordance with the formula set 
                forth in section 104(b)(1)(A)(i) through (iv) of title 
                23, United States Code.
                    (C) Third and subsequent fiscal years.--In the 
                third and subsequent fiscal years, the sums authorized 
                to be appropriated for expenditure on the intelligent 
                transportation systems performance incentive program 
                shall be apportioned according to the funding formula 
                developed under this subsection.
    (f) Funding.--
            (1) Applicability of title 23, united states code.--Funds 
        authorized to be appropriated under section 1101(a)(13) of this 
        Act 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.
            (2) Federal share.--The Federal share payable under section 
        120(b) of title 23, United States Code, shall apply to any 
        project carried out under this section.
    (g) Apportionments.--The Secretary shall apportion the sums 
authorized to be appropriated for expenditure on the intelligent 
transportation systems performance incentive program among the States 
in accordance with the formula set forth in section 104(b)(1)(A)(i) 
through (iv) of title 23, United States Code, until the fiscal year 
established by the regulation under subsection (e)(3).
    (h) Use of Funds.--Amounts apportioned under this section shall be 
used for projects involving planning, deployment, integration, and 
operation of intelligent transportation systems, or any other project 
or activity designed to further improve system operations. Funds 
apportioned to each State under this section should be made available 
for projects in metropolitan planning areas, corridors, and other 
regions as appropriate to improve operations.

SEC. 1704. COMMERCIAL VEHICLE INFORMATION SYSTEMS AND NETWORKS 
              DEPLOYMENT.

    (a) In General.--The Secretary shall carry out a Commercial Vehicle 
Information Systems and Networks program to--
            (1) improve the safety and productivity of commercial 
        vehicles and drivers; and
            (2) reduce costs associated with commercial vehicle 
        operations and Federal and State commercial vehicle regulatory 
        requirements.
    (b) Purpose.--The program shall advance the technological 
capability and promote the deployment of intelligent transportation 
system applications for commercial vehicle operations, including 
commercial vehicle, commercial driver, and carrier-specific information 
systems and networks.
    (c) Core Deployment Grants.--
            (1) In general.--The Secretary shall make grants to 
        eligible States for the core deployment of Commercial Vehicle 
        Information Systems and Networks.
            (2) Eligibility.--To be eligible for a core deployment 
        grant under this section, a State--
                    (A) shall have a Commercial Vehicle Information 
                Systems and Networks program plan and a top level 
                system design approved by the Secretary;
                    (B) shall certify to the Secretary that its 
                Commercial Vehicle Information Systems and Networks 
                deployment activities, including hardware procurement, 
                software and system development, and infrastructure 
                modifications, are consistent with the national 
                intelligent transportation systems and Commercial 
                Vehicle Information Systems and Networks architectures 
                and available standards, and promote interoperability 
                and efficiency to the extent practicable; and
                    (C) shall agree to execute interoperability tests 
                developed by the Federal Motor Carrier Safety 
                Administration to verify that its systems conform with 
                the national intelligent transportation systems 
                architecture, applicable standards, and protocols for 
                Commercial Vehicle Information Systems and Networks.
            (3) Amount of grants.--The maximum aggregate amount a State 
        may receive under this section for the core deployment of 
        Commercial Vehicle Information Systems and Networks may not 
        exceed $2,500,000 million, including funds received under 
        sections 4001(e) and 5001(a)(5) and (6) of the Transportation 
        Equity Act for the 21st Century for the core deployment of 
        Commercial Vehicle Information Systems and Networks.
            (4) Use of funds.--Funds from a grant under this subsection 
        may only be used for the core deployment of Commercial Vehicle 
        Information Systems and Networks. Eligible States that have 
        either completed the core deployment of Commercial Vehicle 
        Information Systems and Networks or complete such deployment 
        before core deployment grant funds are expended, may use the 
        remaining core deployment grant funds for the expanded 
        deployment of Commercial Vehicle Information Systems and 
        Networks in their State.
    (d) Expanded Deployment Grants.--
            (1) In general.--For each fiscal year, from the funds 
        remaining after the Secretary has made core deployment grants 
        under subsection (c) of this section, the Secretary may make 
        grants to each eligible State, upon request, for the expanded 
        deployment of Commercial Vehicle Information Systems and 
        Networks.
            (2) Eligibility.--Each State that has completed the core 
        deployment of Commercial Vehicle Information Systems and 
        Networks is eligible for an expanded deployment grant.
            (3) Amount of grants.--Each fiscal year, the Secretary may 
        distribute funds available for expanded deployment grants 
        equally among the eligible States, but not to exceed $1 million 
        per State.
            (4) Use of funds.--A State may use funds from a grant under 
        this subsection only for the expanded deployment of Commercial 
        Vehicle Information Systems and Networks.
    (e) Federal Share.--The Federal share of the cost of a project 
payable from funds made available to carry out this section shall not 
exceed 50 percent. The total Federal share of the cost of a project 
payable from all eligible sources shall not exceed 80 percent.
    (f) Applicability of Title 23, United States Code.--Funds 
authorized to be appropriated under section 1101(a)(15) of this Act 
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.
    (g) Definitions.--In this section, the following definitions apply:
            (1) Commercial vehicle information systems and networks.--
        The term ``Commercial Vehicle Information Systems and 
        Networks'' means the information systems and communications 
        networks that provide the capability to--
                    (A) improve the safety of commercial vehicle 
                operations;
                    (B) increase the efficiency of regulatory 
                inspection processes to reduce administrative burdens 
                by advancing technology to facilitate inspections and 
                increase the effectiveness of enforcement efforts;
                    (C) advance electronic processing of registration 
                information, driver licensing information, fuel tax 
                information, inspection and crash data, and other 
                safety information;
                    (D) enhance the safe passage of commercial vehicles 
                across the United States and across international 
                borders; and
                    (E) promote the communication of information among 
                the States and encourage multistate cooperation and 
                corridor development.
            (2) Commercial vehicle operations.--The term ``commercial 
        vehicle operations''--
                    (A) means motor carrier operations and motor 
                vehicle regulatory activities associated with the 
                commercial movement of goods, including hazardous 
                materials, and passengers; and
                    (B) with respect to the public sector, includes the 
                issuance of operating credentials, the administration 
                of motor vehicle and fuel taxes, and roadside safety 
                and border crossing inspection and regulatory 
                compliance operations.
            (3) Core deployment.--The term ``core deployment'' means 
        the deployment of systems in a State necessary to provide the 
        State with the following capabilities:
                    (A) Safety information exchange to--
                            (i) electronically collect and transmit 
                        commercial vehicle and driver inspection data 
                        at a majority of inspection sites;
                            (ii) connect to the Safety and Fitness 
                        Electronic Records (SAFER) system for access to 
                        interstate carrier and commercial vehicle data, 
                        summaries of past safety performance, and 
                        commercial vehicle credentials information; and
                            (iii) exchange carrier data and commercial 
                        vehicle safety and credentials information 
                        within the State and connect to Safety and 
                        Fitness Electronic Records (SAFER) for access 
                        to interstate carrier and commercial vehicle 
                        data.
                    (B) Interstate credentials administration to--
                            (i) perform end-to-end processing, 
                        including carrier application, jurisdiction 
                        application processing, and credential 
                        issuance, of at least the International 
                        Registration Plan (IRP) and International Fuel 
                        Tax Agreement (IFTA) credentials and extend 
                        this processing to other credentials, including 
                        intrastate, titling, oversize/overweight, 
                        carrier registration, and hazardous materials;
                            (ii) connect to the International 
                        Registration Plan (IRP) and International Fuel 
                        Tax Agreement (IFTA) clearinghouses; and
                            (iii) have at least 10 percent of the 
                        transaction volume handled electronically and 
                        have the capability to add more carriers and to 
                        extend to branch offices where applicable.
                    (C) Roadside electronic screening to electronically 
                screen transponder-equipped commercial vehicles at a 
                minimum of one fixed or mobile inspection sites and to 
                replicate this screening at other sites.
            (4) Expanded deployment.--The term ``expanded deployment'' 
        means the deployment of systems in a State that exceed the 
        requirements of an core deployment of Commercial Vehicle 
        Information Systems and Networks, improve safety and the 
        productivity of commercial vehicle operations, and enhance 
        transportation security. --

    Subtitle H--Program Efficiencies and Improvements--Federal-Aid 
                              Stewardship

SEC. 1801. SURFACE TRANSPORTATION SYSTEM PERFORMANCE PILOT PROGRAM.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish and 
        implement a Surface Transportation System Performance Pilot 
        Program. Subject to this section, a State may assume some or 
        all, as the Secretary and State may agree, of the Secretary's 
        responsibilities under title 23, United States Code, or assume 
        all or some, as they may agree, of the Secretary's 
        responsibilities under any Federal law, for projects 
        constructed with Federal funds under this pilot program.
            (2) Obligation of funds.--States participating in this 
        pilot program may obligate funds under sections 104(b)(1), 
        104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) of title 23, 
        United States Code, for any purpose for which Federal funds may 
        be obligated by a State under title 23. However, the State 
        shall reserve 10 percent of the funds apportioned under section 
        104(b)(3) in each fiscal year for transportation enhancement 
        activities as specified in section 133(d)(1), as amended by 
        this Act.
            (3) Purpose.--The purpose of this performance pilot program 
        is to demonstrate the benefits of performance-based management 
        and to determine how such an approach can be best incorporated 
        into an effective Federally-assisted, State administered 
        Federal-aid highway program. The Secretary shall work closely 
        with potential pilot States to determine ways to build into 
        program-level oversight performance measures that reflect both 
        State and national interests and to apply them with specific 
        measurement of program effectiveness.
    (b) State Participation.--
            (1) Number of participating states.--The Secretary may 
        permit up to five States to participate in the performance 
        pilot program established under subsection (a).
            (2) Application.--To participate in the performance pilot 
        program, a State shall submit an application to the Secretary 
        that contains, at a minimum, the following:
                    (A) A description of the State's long-term and 
                short-term transportation goals.
                    (B) A description of how the State will address any 
                areas of national strategic importance, as may be 
                determined by the Secretary, in reaching its goals. The 
                areas of national strategic importance must include the 
                following: national security, interstate commerce, 
                mobility, safety, and environmental stewardship.
                    (C) A description of the performance measures under 
                which the State's progress and success toward reaching 
                its goals would be measured.
                    (D) A description of how funding will be 
                distributed equitably across the State, including to 
                urbanized areas with populations in excess of 200,000. 
                This would include addressing how local units of 
                government would be consulted in the process of program 
                development and implementation.
                    (E) Evidence of the State's notice and solicitation 
                of public comment and copies of comments received from 
                such solicitation.
                    (F) Such other information as the Secretary may 
                require.
            (3) Public notice.--Each State that submits an application 
        under this subsection, shall give public notice of its intent 
        to participate in the pilot program at least 20 days prior to 
        submitting its application to the Secretary. The State shall 
        provide notice and solicit public comment by publishing the 
        entire application in accordance with the State's public notice 
        law.
            (4) Selection criteria.--The Secretary may approve the 
        application of a State under this section only if the 
        application demonstrates how the State plans to address the 
        areas of national strategic importance as identified in 
        subsection (b)(2)(B). The Secretary will prioritize the 
        selection of applications based on the degree to which the 
        applicant's proposed goals address the areas of national 
        strategic importance, the State's ability to manage and monitor 
        its programs on a performance basis, the State's commitment to 
conduct the required evaluations, and the degree to which the 
application otherwise proposes to achieve the purposes of this section.
    (c) Program Elements.--
            (1) State agreement to assume secretary's 
        responsibilities.--
                    (A) Assignment and assumption of 
                responsibilities.--The Secretary and a State may agree, 
                as provided in this section, that the Secretary will 
                assign and the State will assume some or all of the 
                responsibilities of the Secretary under any Federal law 
                or requirement, except for the responsibilities 
                relating to Federally recognized tribes, with respect 
                to any project constructed with federal funds under 
                this pilot program. The State shall assume these 
                responsibilities subject to the same procedural and 
                substantive requirements as would be required if such 
                responsibilities were carried out by the Secretary. 
                When a State assumes such responsibilities under a 
                Federal law, the State shall be solely responsible and 
                solely liable for complying with and carrying out that 
                law in lieu of the Secretary and shall submit a 
                certification as provided in subsection (f)(1).
                    (B) Federal role of state.--For purposes of 
                assuming the Secretary's responsibilities under a 
                Surface Transportation System Performance Pilot 
                Program, to the extent the State is carrying out the 
                Secretary's responsibilities under the National 
                Environmental Policy Act, title 23, United States Code, 
                or any other Federal law, the State shall be deemed to 
                be a Federal agency under such laws, and shall agree 
                that its transportation department, or any other State 
                agency carrying out a responsibility of the Secretary 
                under this section, shall be subject to such Federal 
                laws to the same extent that a Federal agency would be 
                subject to such laws.
                    (C) State certification of assumption of 
                responsibilities.--Whenever a State assumes any of the 
                Secretary's responsibilities under a Federal law, the 
                State shall certify that it has laws and regulations 
                that--
                            (i) authorize the State to take the actions 
                        necessary to carry out the responsibilities 
                        being assumed; and
                            (ii) are comparable to the Federal Freedom 
                        of Information Act and that any decision 
                        regarding the public availability of a document 
                        under those laws is reviewable by a court of 
                        competent authority.
            (2) Other federal agency views.--If a State assumes a 
        responsibility of the Secretary under paragraph (1) of this 
        subsection that would have required the Secretary to consult 
        with another Federal agency, the Secretary shall solicit the 
        views of such Federal agency prior to entering into or renewing 
        any program agreement.
            (3) Maintenance of effort.--The Secretary shall not make 
        any apportionment to a State participating in this performance 
        pilot program in any fiscal year under sections 104(b)(1), 
        104(b)(3), 104(b)(4), 104(b)(5), 105, and 144(e) of title 23, 
        United States Code, unless the State enters into such 
        agreements with the Secretary as the Secretary may require to 
        ensure that the State will maintain its non-Federal 
        transportation capital expenditures in any fiscal year at or 
        above the average level of such expenditures for the preceding 
        three fiscal years.
            (4) Federal share payable.--The Federal share payable under 
        this performance pilot program for a project funded with 
        apportionments under sections 104(b)(1), 104(b)(3), 104(b)(4), 
        104(b)(5), 105, and 144(e) of title 23, United States Code, may 
        be up to 100 percent; except that, the Federal share payable 
        for transportation enhancements under section 133(d)(1), shall 
        be determined in accordance with title 23, United States Code.
    (d) Program Agreement.--
            (1) In general.--Each year prior to making any 
        apportionments to a participating State, the Secretary shall 
        enter into an agreement with the State establishing its 
        performance goals and performance measures.
            (2) Agreement concerning participating state's 
        responsibilities.--The Secretary shall enter into one or more 
        agreements with a State selected for participation in this 
        pilot program concerning which, if any, Federal laws or 
        requirements the State will carry out under subsection (c). The 
        program agreement between the Secretary and the State shall 
        specify management responsibilities, including the role of the 
        State in relation to other Federal agencies.
            (3) Goals.--The Secretary and participating State shall 
        agree, based on the State's priorities and the areas of 
        national strategic importance as determined by the Secretary, 
        on the long-term and short-term goals to be achieved using the 
        State's apportionments under the program.
            (4) Performance measures.--The Secretary and the State 
        shall mutually establish the performance measures that the 
        State must meet relating to the goals identified in paragraph 
        (3) of this subsection. Continued participation in the pilot 
        program is contingent on the State meeting these performance 
        measures. If a State fails to meet the agreed upon performance 
        measures in two consecutive years, the Secretary shall 
        terminate a State's participation in the pilot program.
            (5) Compliance.--If a participating State fails to comply 
        with any provision of this section, the Secretary shall take 
        such actions as necessary to ensure compliance. Corrective 
        actions may include termination of the State's participation in 
        the pilot program.
    (e) Limitations on Agreements.--
            (1) Civil rights.--Nothing in this section shall be 
        construed as relieving the Secretary from any of the 
        Secretary's responsibilities under title VI of the Civil Rights 
        Act of 1964 (42 U.S.C. 2000d, et seq.).
            (2) Major projects.--Nothing in this section shall be 
        construed as relieving the Secretary from any of the 
        Secretary's responsibilities with respect to major projects 
        under section 106(h) of title 23, United States Code.
            (3) Statewide and metropolitan planning.--Nothing in this 
        section shall be construed as relieving the Secretary from any 
        of the Secretary's responsibilities under the Statewide and 
metropolitan planning requirements of sections 134 and 135 of title 23, 
United States Code.
            (4) Regulatory responsibilities.--Nothing in this section 
        shall be construed to allow a State to assume any of the 
        Secretary's rulemaking authority under any Federal law.
    (f) State Reporting and Accountability.--A State participating in 
this pilot program shall make the following reports to the Secretary. A 
State may combine reports as appropriate.
            (1) State certification prior to obligation of funds.--As a 
        prerequisite to the Secretary's agreement that a State will 
        fulfill or assume any of the Secretary's responsibilities, and 
        prior to the obligation of any money under this pilot program 
        in any fiscal year, the participating State shall provide, and 
        annually renew, a certification that--
                    (A) is in a form acceptable to the Secretary;
                    (B) is executed by the Governor or the State's top-
                ranking transportation official charged with the 
                responsibility for highway construction;
                    (C) specifies that the State will fully carry out 
                any of the responsibilities it may assume;
                    (D) specifies that the State consents to assume the 
                status of the Secretary under any responsibility it may 
                assume; and
                    (E) expressly consents on behalf of the State and 
                himself or herself to accept the jurisdiction of the 
                Federal courts for the compliance, discharge, and 
                enforcement of any responsibility of the Secretary it 
                may assume.
            (2) End of fiscal year state certification.--At the end of 
        each fiscal year in which a State obligates funds under this 
        pilot program, the State shall certify that it obligated such 
        funds only for projects that would otherwise be eligible for 
        assistance under title 23. Such certification shall also 
        specify that the State reserved for obligation the amounts 
        specified in section 133(d)(1) of such title as amended by this 
        Act.
            (3) Fiscal accountability.--Each State shall provide an 
        annual accounting for the obligations in a manner determined by 
        the Secretary in such a way as to provide a basis for 
        evaluating the effect of the pilot program expenditures.
            (4) Annual state assessment.--Each State will provide to 
        the Secretary a narrative report at the end of each year 
        describing the benefits of the pilot program to the State and 
        any suggestions for improving the pilot program.
    (g) Termination.--This pilot program shall terminate six years 
following enactment of this Act. Funding obligated under the pilot 
program shall continue to be administered under the terms of the pilot 
program until those funds have been expended.

SEC. 1802. STEWARDSHIP AND OVERSIGHT.

    (a) Section 106 of title 23, United States Code, is amended--
            (1) by striking subsection (e) and inserting the following:
    ``(e) Value Engineering Analysis.--
            ``(1) Analysis.--For all projects on the National Highway 
        System with an estimated total cost of $25,000,000 or more, and 
        any project the Secretary deems appropriate, the State shall 
        provide a value engineering analysis or other cost reduction 
        analysis. For major projects as identified in subsection (h) of 
        this section, more than one such analysis may be required.
            ``(2) Definition.--In this subsection, the term ``value 
        engineering analysis'' means a systematic process of review and 
        analysis of a project during its design phase by a 
        multidisciplined team of persons not involved in the project in 
        order to provide suggestions for reducing the total cost of the 
        project and providing a project of equal or better quality. 
        Such suggestions may include combining or eliminating otherwise 
        inefficient use of expensive parts of the original proposal 
        design for the project and total redesign of the proposed 
        project using different technologies, materials, or methods so 
        as to accomplish the original purpose of the project.''; and
            (2) by striking subsections (g) and (h) and inserting the 
        following:
    ``(g) Oversight Program.--
            ``(1) In general.--The Secretary shall establish an 
        oversight program to monitor the effective and efficient use of 
        funds authorized by 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). Risk assessment procedures shall be 
                used to identify review areas.
                    ``(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 have sufficient accounting controls to 
                properly manage 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 the States' 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. Risk assessment procedures will be used to identify 
        review areas.
            ``(4) Responsibility of the states.--The States are 
        responsible for determining that subrecipients of Federal funds 
        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 201 of the 
Appalachian Regional Development Act of 1965 (40 U.S.C. App.).
    ``(h) 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 
        $1,000,000,000 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 
        effectively manage 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.
    ``(i) Other Projects.--A recipient of Federal financial assistance 
for a project under this title that receives $100,000,000 or more in 
Federal assistance for such project, and that is not covered by 
subsection (h) of this section, 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.''.
    (b) Section 114(a) of such title is amended--
            (1) in the first sentence by striking ``highways or 
        portions of highways located on a Federal-aid system'' and 
        inserting ``Federal-aid highway or portion thereof''; and
            (2) by striking the second sentence and inserting ``The 
        Secretary shall have the right to inspect and take any 
        corrective action as the Secretary may deem appropriate.''.
    (c) Section 117 of such title is amended by striking subsection (d) 
and redesignating subsections (e), (f), (g), and (h) as subsections 
(d), (e), (f), and (g), respectively.
    (d) Section 307 of title 49, United States Code, is amended to read 
as follows:
``Sec. Sec. 307. Contractor suspension and debarment policy; sharing 
              fraud monetary recoveries
    ``(a) Mandatory Enforcement Policy.--
            ``(1) Notwithstanding any other provision of law, the 
        Secretary shall--
                    ``(A) debar any contractor or subcontractor 
                convicted of criminal or civil offenses involving fraud 
                related to projects receiving Federal highway or 
                transit funds. The debarment period shall be determined 
                by the Secretary, as appropriate; and
                    ``(B) suspend any contractor or subcontractor upon 
                their indictment for criminal or civil offenses 
                involving fraud, subject to the approval of the 
                Attorney General. The Secretary shall have authority to 
                exclude non-affiliated subsidiaries of the debarred 
                business entity, subject to the approval of the 
                Attorney General.
            ``(2) Upon a finding that mandatory debarment or suspension 
        of a contractor or subcontractor under subsection (1), above, 
        would be contrary to the national security interests of the 
        U.S., the Secretary may waive the debarment or suspension.
    ``(b) Sharing of Monetary Recoveries.--
            ``(1) Notwithstanding any other provision of law, monetary 
        judgments accruing to the Federal government from judgments in 
        Federal criminal prosecutions and civil judgments pertaining to 
        fraud in highway and transit programs shall be shared with the 
        State or local transit agency involved. The State or local 
        transit agency shall use these funds for transportation 
        infrastructure and oversight activities related to programs 
        authorized under titles 23 and 49.
            ``(2) The amount of recovered funds to be shared with the 
        affected State or local transit agency shall be determined by 
        the Attorney General in consultation with the Secretary. These 
        funds shall be considered Federal funds, to be used in 
        compliance with other relevant Federal transportation laws and 
        regulations. ---
            ``(3) The requirement for sharing of funds described in 
        subparagraph (1), above, shall not be in effect in 
        circumstances wherein the State or local transit agency is 
        found by the Department of Justice, in consultation with the 
        Secretary, to have been involved or negligent with respect to 
        the fraudulent activities.''.
    (e) The analysis for chapter 3 of title 49 is amended by revising 
the entry for item 307 to read as follows:

``307. Contractor suspension and debarment policy; sharing fraud 
                            monetary recoveries.''.

SEC. 1803. EMERGENCY RELIEF.

    Section 125(c)(1) of title 23, United States Code, is amended by 
striking ``$100,000,000'' and inserting ``$200,000,000''.

SEC. 1804. FEDERAL LANDS HIGHWAYS PROGRAM.

    (a) Definitions.--Section 101(a) of title 23, United States Code, 
is amended--
            (1) in paragraph (7), by striking ``public lands highway'' 
        and inserting ``recreation roads, public Forest Service 
        roads'';
            (2) by striking paragraph (8) and inserting the following:
            ``(8) National forest system roads and trails.--The term 
        `National Forest System roads and trails' means forest roads or 
        trails under the jurisdiction of the Forest Service.'';
            (3) by striking paragraph (10) and inserting the following:
            ``(10) Forest road or trail.--The term `forest road or 
        trail' means a road or trail wholly or partly within, or 
        adjacent to, and serving National Forest System lands that is 
        necessary for the protection, administration, use, and 
        development of its resources. There are four types of forest 
        roads:
                    ``(A) Classified forest road.--The term `classified 
                forest road' means a forest road that the Forest 
                Service determines to be needed for long-term motor 
                vehicle access, including State roads, county roads, 
                privately owned roads, National Forest System roads, 
                and other roads authorized by the Forest Service.
                    ``(B) Unclassified forest road.--The term 
                `unclassified forest road' means a forest road not 
                managed by the Forest Service as part of the forest 
                transportation system.
                    ``(C) Temporary forest road.--The term `temporary 
                forest road' means a forest road that is authorized by 
                the Forest Service through contract, permit, lease, 
                other written authorization, or emergency operation not 
                intended to be a part of the forest transportation 
                system and not necessary for long-term resource 
                management.
                    ``(D) Public forest service road.--The term `Public 
                Forest Service Road' means a classified forest road 
                that is open to public travel for which title and 
                maintenance responsibility is vested in the United 
                States government and which has been designated a 
                public road by the Forest Service.'';
            (4) in paragraph (26), as redesignated by this Act, by 
        striking ``unappropriated or unreserved''; and
            (5) by striking paragraph (27), as redesignated by this 
        Act, by redesignating paragraph (28) as (27), and by inserting 
        the following new paragraph:
            ``(28) Recreation roads.--The term `recreation roads' means 
        those public roads that provide access to museums, lakes, 
        reservoirs, visitors centers, gateways to major wilderness 
        areas, public uses areas, recreation and historic sites and for 
        which title is vested in the United States Government.''.
    (b) Federal Share Payable.--
            (1) Section 120(k) of such title is amended by striking 
        ``Federal-aid highway''.
            (2) Sections 120(k) and 120(l) of such title are amended by 
        striking ``section 104'' each time it appears, and inserting in 
        its place ``this title and chapter 53 of title 49''.
    (c) Payments to Federal Agencies for Federal-Aid Projects.--Section 
132 of such title is amended by striking the first two sentences and 
inserting the following: ``Where a proposed Federal-aid project is to 
be undertaken by a Federal agency pursuant to an agreement between a 
State and such Federal agency, the State may (1) direct the Secretary 
to transfer the funds for the Federal share of the project directly to 
the Federal agency, or (2) make a deposit with or payment to such 
Federal agency as may be required in fulfillment of the State's 
obligation under such agreement for the work undertaken or to be 
undertaken by such Federal agency; the Secretary, upon execution of a 
project agreement with such State for the proposed Federal-aid project, 
may reimburse the State out of the appropriate appropriations for the 
estimated Federal share, under the provisions of this title, of the 
State's obligation so deposited or paid by such State.''.
    (d) Allocations.--Section 202 of such title is amended--
            (1) in subsection (a), by inserting ``and grasslands'' 
        after ``national forests'' in the first sentence;
            (2) by striking subsection (b) and inserting the following:
    ``(b) On October 1 of each fiscal year, the Secretary shall 
allocate the sums authorized to be appropriated for such fiscal year 
for forest highways, after making the transfer of funds provided for in 
subsection 204(g) of this title, for each fiscal year as is provided in 
section 134 of the Federal-Aid Highway Act of 1987, and with respect to 
these allocations the Secretary shall give equal consideration to 
projects that provide access to and within the National Forest System, 
as identified by the Secretary of Agriculture through renewable 
resource and land use planning and the impact of such planning on 
existing transportation facilities.''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by striking ``1999'' in the 
                heading and within paragraph (1) and inserting 
                ``2005'';
                    (B) in paragraph (2), by striking ``2000'' in the 
                heading and within paragraphs (2)(A), (2)(B), and 
                (2)(D) and inserting ``2005'', and by striking ``1999'' 
                in paragraph (2)(B) and inserting ``2004'' at each 
                place it appears;
                    (C) in paragraph (3)(A), by inserting ``this 
                chapter and section 125(e) of'' after ``under'', and by 
                adding ``and the approved Indian reservation road 
                transportation improvement program'' after ``Act''; and
                    (D) in paragraph (4)(D), by striking the sentence 
                after ``Approval Requirement.'' and inserting: ``Funds 
                for preliminary engineering for Indian reservation road 
                bridge projects under this subsection may be made 
                available by the Secretary upon request by a tribe or 
                by the Secretary of the Interior. Funds for 
                construction and construction engineering shall be made 
                available only after approval of the plans, 
                specifications, and estimates by the Secretary.''.
    (e) Planning and Agency Coordination.--Section 204 of such title is 
amended--
            (1) in subsection (a), by inserting ``refuge roads,'' after 
        ``parkways,'';
            (2) in subsection (b), by striking ``appropriate 
        contracts'' in the second sentence and inserting ``appropriate 
        agreements'';
            (3) in subsection (k)--
                    (A) by striking ``(2), (5),'' and inserting ``(2), 
                (3), (5),'';
                    (B) by striking ``and'' after the semicolon at the 
                end of paragraph (1)(B);
                    (C) by striking the period after ``improvements'' 
                at the end of paragraph (1)(C) and inserting a 
                semicolon;
                    (D) by adding after paragraph (1)(C) the following 
                new subparagraphs:
                    ``(D) maintenance of public roads in National Fish 
                hatcheries under Fish and Wildlife Service 
                jurisdiction;
                    ``(E) the non-Federal share of the cost of any 
                project funded under this title or chapter 53 of title 
                49 that provides access to or within a wildlife refuge; 
                and
                    ``(F) maintenance and improvement of recreational 
                trails, but such expenditures on trails are limited to 
                5 percent of available funding per fiscal year.''.
    (f) Safety.--
            (1) Allocations.--Section 202 of such title is amended by 
        adding at the end the following:
    ``(f) Safety.--On October 1 of each fiscal year, the Secretary 
shall allocate the sums authorized to be appropriated for such fiscal 
year for safety as follows: 10 percent to the Bureau of Reclamation, 15 
percent to the Bureau of Indian Affairs, 15 percent to the Bureau of 
Land Management, 15 percent to the Forest Service, 5 percent to the 
Fish and Wildlife Service, 15 percent to Military Traffic Management 
Command, 15 percent to the National Park Service, and 10 percent to the 
U.S. Army Corps of Engineers. The Secretary, from time to time, may 
adjust the percentage of safety funds allocated to the Federal agencies 
listed above based on the outputs of agency safety management systems, 
other safety need analyses or/studies, and the use of previously 
allocated safety funds.''.
            (2) Availability of funds.--Section 203 of such title is 
        amended in the first sentence by inserting ``safety,'' after 
        ``refuge roads,'' at each place it appears.
            (3) Use of funding.--Section 204 is amended by adding at 
        the end the following:
    ``(l) Safety Activities.--
            ``(1) In general.--Not withstanding any other provision of 
        this title, funds made available for safety shall be used by 
        the Secretary and the Secretary of the appropriate Federal land 
        management agency only to pay the cost of transportation safety 
        improvement projects, elimination of high accident locations, 
        protection or elimination of at-grade railway-highway 
        crossings, collection of safety information, transportation 
        planning, bridge inspections, development and operation of 
        safety management systems, highway safety education programs, 
        and other eligible safety activities authorized in Chapter 4 of 
        this title.
            ``(2) Contracts.--In carrying out paragraph (1), the 
        Secretary and the Secretary of the appropriate Federal land 
        management agency, as appropriate, may enter into contracts or 
        agreements with a State, subdivision of a State, or Indian 
        tribe.
            ``(3) Exception.--Funds allocated to the Bureau of 
        Reclamation for the purposes described in this subsection are 
        exempted from the cost-share requirements of Public Law 89-72, 
        The Federal Water Recreation Act.''.
    (g) Recreation Roads.--
            (1) Authorizations.--Section 201 of such title is amended 
        by striking ``public lands highways'' and inserting 
        ``recreation roads''.
            (2) Allocations.--Section 202 of such title, as amended by 
        this section, is further amended by adding at the end the 
        following:
    ``(g) Recreation Roads.--On October 1 of each fiscal year, the 
Secretary, after making the transfer provided for in subsection 204(i) 
of this title, shall allocate the sums authorized to be appropriated 
for such fiscal year for recreation roads as follows: 6 percent to the 
Bureau of Reclamation, 6 percent to the U.S. Army Corps of Engineers, 
10 percent to the Bureau of Land Management, 10 percent to the Military 
Traffic Management Command, and 68 percent to the Forest Service. 
Recreation road funds shall be allocated to projects and activities 
according to the relative needs of each area served by these roads as 
indicated in the approved transportation improvement programs for each 
agency. The Secretary, from time to time, may adjust the percentage of 
recreation road funds allocated to the Federal agencies listed above 
based on the outputs of agency management systems, other need analyses/
or studies, and the use of previously allocated recreation road 
funds.''.
            (3) Availability of funds.--Section 203 of such title is 
        amended by striking ``public lands highways'' and inserting 
        ``recreation roads'' at each place it appears.
            (4) Use of funding.--Section 204 of such title, as amended 
        by this section, is further amended by adding at the end the 
        following:
    ``(m) Recreation Roads.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, funds made available for recreation roads shall be 
        used by the Secretary and the Secretary of the appropriate 
        Federal land management agency only to pay the cost of--
                    ``(A) maintenance or improvements of existing 
                recreation roads;
                    ``(B) maintenance and improvements of eligible 
                projects described in paragraphs (1), (2), (3), (5), 
                and (6) of subsection (h) that are located in or 
                adjacent to Federal land areas under the jurisdiction 
                of the Departments of Agriculture, Defense, or the 
                Interior;
                    ``(C) transportation planning and administrative 
                costs associated with such maintenance and 
                improvements; and
                    ``(D) the non-Federal share of the cost of any 
                project funded under this title or chapter 53 of title 
                49 that provides access to or within Federal land areas 
                under the jurisdiction of the Departments of 
                Agriculture, Defense, or the Interior.
            ``(2) Contracts.--In carrying out paragraph (1), the 
        Secretary and the Secretary of the appropriate Federal land 
        management agency, as appropriate, may enter into contracts or 
        agreements with a State or civil subdivision of a State or 
        Indian tribe as is determined advisable.
            ``(3) New roads.--No funds available under this section 
        shall be used to pay the cost of the design or construction of 
        new recreation roads.
            ``(4) Compliance with other environmental laws.--
        Maintenance and improvement projects which are funded under 
        this subsection and are consistent with or have been identified 
        in a land use plan for the Federal area do not require any 
        additional environmental reviews or assessments under the 
        National Environmental Policy Act if the Federal agency that 
        promulgated the land use plan analyzed the specific proposal 
        under the National Environmental Policy Act and there are no 
        significant changes to the proposal bearing on environmental 
        concerns and no significant new information.
            ``(5) Exception.--Funds allocated to the Bureau of 
        Reclamation for the purposes described in this subsection are 
        exempted from the cost-share requirements of Public Law 89-72, 
        The Federal Water Recreation Act.''.
    (h) Conforming Amendments.--
            (1) Sections 120(e) and 125(e) of title 23, United States 
        Code, are amended by inserting ``recreation roads,'' after 
        ``public lands highways,'' each place the words appear.
            (2) Sections 120(e), 125(e), 201, 202(a), 203, section 205 
        in the heading and in subsections (a) and (d), and the analysis 
        for chapter 2 of such title are amended by striking ``forest 
        development roads'' and inserting ``National Forest System 
        roads'' each place the words appear.
            (3) Section 204(a)(1) is amended by striking ``public lands 
        highways'' and inserting ``recreation roads, forest highways'', 
        section 204(b) is amended by striking ``public lands highways'' 
        and inserting ``recreation roads'', and section 204(i) is 
        amended by striking ``public lands highways'' and inserting 
        ``recreation roads and forest highways'' each place the words 
        appear.
            (4) Section 217(c) is amended by striking ``public lands 
        highways'' and inserting ``refuge roads''.

SEC. 1805. 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 201 of the Appalachian Regional Development Act of 1965 
prepared by the Appalachian Regional Commission. Such funds shall be 
available to construct highways and access roads under section 201 of 
the Appalachian Regional Development Act of 1965.
    (b) Applicability of Title 23.--Funds authorized 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 201 and 
such funds shall remain available until expended.
    (c) Use of Toll Credits.--Section 120(j)(1) of title 23, United 
States Code is amended by adding ``and the Appalachian development 
highway system program under section 201 of the Appalachian Regional 
Development Act of 1965'' following ``(other than the emergency relief 
program authorized by section 125''.

SEC. 1806. MULTI-STATE CORRIDOR PLANNING PROGRAM.

    (a) Establishment and Purpose.--The Secretary shall establish and 
implement a program to support and encourage multi-state transportation 
planning, provide for streamlined transportation project development, 
and facilitate transportation decision-making.
    (b) Eligible Recipients.--State transportation departments and 
metropolitan planning organizations are eligible to receive and 
administer funds provided under this program.
    (c) Eligible Activities.--The Secretary shall make allocations 
under this program for multi-state highway and multi-state multi-modal 
planning studies.
    (d) Other Provisions Regarding Eligibility.--All studies funded 
under this program shall be consistent with the continuing, 
cooperative, and comprehensive planning processes required by sections 
134 and 135 of title 23, United States Code.
    (e) Selection Criteria.--The Secretary shall select projects based 
on--
            (1) the existence and significance of signed and binding 
        multi-jurisdictional agreements;
            (2) endorsement of the study by elected State and local 
        representatives;
            (3) prospects for early completion of the study; and
            (4) whether the projects to be studied are located on 
        corridors identified by section 1105(c) of the Intermodal 
        Surface Transportation Efficiency Act of 1991, as amended 
        (Public Law 102-240; 105 Stat. 2032).
    (f) Program Priorities.--In administering the program, the 
Secretary shall--
            (1) encourage and enable States and other jurisdictions to 
        work together to develop plans for multi-modal and multi-
        jurisdictional transportation decision-making; and
            (2) give priority to studies that emphasize multi-modal 
        planning, including planning for operational improvements that 
        increase mobility, freight productivity, access to marine 
        ports, safety, and security while enhancing the environment.
    (g) Federal Share.--The Federal share payable, using funds from all 
Federal sources, for any study carried out under this section shall not 
exceed 80 percent of the total cost of such study, except that the 
share of funds from the Highway Trust Fund (other than the Mass Transit 
Account) shall not exceed 50 percent of the total cost of such study.
    (h) Applicability of Title 23 U.S.C.--Funds authorized to be 
appropriated under 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.

SEC. 1807. BORDER PLANNING, OPERATIONS, AND TECHNOLOGY PROGRAM.

    (a) Establishment and Purpose.--The Secretary shall establish and 
implement a program to support coordination and improvement in bi-
national transportation planning, operations, efficiency, information 
exchange, safety, and security for the United States borders with 
Canada and Mexico.
    (b) Eligible Recipients.--State transportation departments and 
metropolitan planning organizations at or near an international land 
border in the States of Alaska, Arizona, California, Idaho, Maine, 
Michigan, Minnesota, Montana, New Hampshire, New Mexico, New York, 
North Dakota, Texas, Vermont and Washington, are eligible to receive 
and administer funds allocated under this program.
    (c) Eligible Activities.--
            (1) In general.--The Secretary shall make allocations under 
        the program established in this section for activities at or 
        near international land borders in the States listed in 
        subsection (b).
            (2) Specific activities.--The activities eligible for 
        funding under this program are--
                    (A) highway and multi-modal planning or 
                environmental studies;
                    (B) cross-border Port of Entry and safety 
                inspection improvements, including operational 
                enhancements and technology applications;
                    (C) technology and information exchange activities; 
                and
                    (D) right-of-way acquisition, design, and 
                construction, where needed to add the enhancements or 
                applications described in subparagraphs (B) and (C), or 
                to decrease air pollution emissions from vehicles or 
                inspection facilities at border crossings.
    (d) Other Provisions Regarding Eligibility.--All studies and 
projects funded under this program shall be consistent with the 
continuing, cooperative, and comprehensive planning processes required 
by sections 134 and 135 of title 23, United States Code. All regionally 
significant projects that are part of such applications must be on the 
transportation plans and program required by sections 134 and 135 of 
title 23, United States Code.
    (e) Selection Criteria.--The Secretary shall select projects based 
on---
            (1) expected benefits, including air quality benefits, of 
        the project in relation to its costs;
            (2) prospects for early completion of the study or project;
            (3) endorsement of the project by formally constituted bi-
        national organizations with both Federal and State or 
        provincial representation;
            (4) the existence and significance of signed and binding 
        multi-jurisdictional agreements;
            (5) contributions of other title 23 funds and non-title 23 
        funds above the minimum required; and
            (6) the extent to which the project benefits are multi-
        modal.
    (f) Program Priorities.--In administering the program, the 
Secretary shall emphasize multi-modal planning; infrastructure 
improvements; and operational improvements that increase safety, 
security, freight movement, or highway access to rail, marine, and air 
services while enhancing the environment.
    (g) Federal Share.--The Federal share payable on account of any 
project carried out under this section shall not exceed 80 percent of 
the total cost of such project.
    (h) Applicability of Title 23 U.S.C.--Funds authorized to be 
appropriated under section 1101(1)(11) 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.
    (i) Allocation of Funds.--No individual project whose scope of work 
is limited to information exchange shall receive an allocation greater 
than $500,000 in a single year.
    (j) Projects in Canada or Mexico.--Projects in Canada or Mexico 
proposed by one or more border States that directly and predominantly 
facilitate cross border vehicle and commercial cargo movements at the 
international gateways or ports of entry into the border region(s) of 
such State(s), may be constructed using funds allocated under this 
program provided that, prior to the obligation of such funds, Canada or 
Mexico, or the political subdivision thereof responsible for the 
operation of the facility to be constructed, has provided assurances 
satisfactory to the Secretary that any facility constructed under this 
subsection will be constructed to standards equivalent to those in the 
United States and properly maintained and used over the useful life of 
the facility for the purpose for which the Secretary allocated funds to 
such project.
    (k) Set-Aside.--The Secretary shall set-aside $47,000,000 of the 
funds authorized for fiscal year 2004 under section 1101(a)(11) of this 
Act for construction of State border safety inspection facilities in 
the States of Arizona, California, New Mexico, and Texas.
    (l) Transfer of Funds to the General Services Administration.--
            (1) State funds.--At the request of a State, funds 
        allocated under this section may be transferred to the General 
        Services Administration for the purpose of funding a specific 
        project or projects if the Secretary determines, after 
        consultation with the State transportation department as 
        appropriate, that the General Services Administration should 
        carry out the project or projects and the General Services 
        Administration agrees to accept the transfer of funds and to 
        administer those funds. The State shall provide the 20 percent 
        non-Federal share of the project cost, as required under 
        subsection (g) of this section, directly to the General 
        Services Administration. Funds so transferred or provided shall 
        not be deemed to be an augmentation of the General Services 
        Administration's appropriations and shall be administered under 
        that agency's procedures, except the transferred funds shall be 
        available for obligation in the same manner as if such funds 
        were apportioned under chapter 1 of title 23, United States 
        Code. Obligation authority shall be transferred to the General 
        Services Administration in the same manner and amount as the 
        allocated funds transferred for the projects.
            (2) Direct transfer of authorized funds.--In addition to 
        allocations to States and metropolitan planning organizations 
        as provided in subection (b), the Secretary may transfer funds 
        made available to carry out this section to the General 
        Services Administration for construction of transportation 
        infrastructure projects at or near the border in the States 
        identified in subsection (b), if the Secretary determines that 
        such transfer is necessary to effectively carry out the 
        purposes of this program and the General Services 
        Administration agrees to accept the transfer of funds and to 
        administer those funds. Funds so transferred shall not be 
        deemed to be an augmentation of the General Services 
        Administration's appropriations and shall be administered under 
        that agency's procedures, except the transferred funds shall be 
        available for obligation in the same manner as if such funds 
        were apportioned under chapter 1 of title 23, United States 
        Code. Section 120 of title 23, United States Code, shall not 
        apply to funds so transferred. Obligation authority shall be 
        transferred to the General Services Administration in the same 
        manner and amount as the funds transferred.

SEC. 1808. TERRITORIAL HIGHWAY PROGRAM AMENDMENTS.

    (a) Definitions.--Section 101(a) of title 23, United States Code, 
as amended by this Act, is further amended--
            (1) by redesignating paragraphs (36) through (38) as 
        paragraphs (37) through (39) respectively, and
            (2) by adding the following new paragraph after paragraph 
        (35):
            ``(36) Territorial highway system.--The term `territorial 
        highway system' means the system of arterial highways, 
        collector roads, and necessary inter-island connectors in the 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands that have been designated by the 
Governor and approved by the Secretary as provided in section 215 of 
this title.''.
    (b) Funding.--Section 104(b)(1)(A) of title 23, United States Code, 
is amended by striking ``to the Virgin Islands, Guam, American Samoa, 
and the Commonwealth of Northern Mariana Islands'' and inserting ``for 
the territorial highway program authorized under section 215 of this 
title''.
    (c) Eligible Projects.--Section 103(b)(6)(P) of title 23, United 
States Code, is amended to read as follows:
            ``(P) Projects eligible for assistance under the 
        territorial highway program as provided in section 215 of this 
        title.''.
    (d) Territorial Highway Program.--Chapter 2 of title 23, United 
States Code, is amended by striking section 215 and inserting the 
following:
``Sec. 215. Territorial highway program
    ``(a) In General.--Recognizing the mutual benefits that will accrue 
to the Virgin Islands, Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands, and to the United States from the 
improvement of highways in such territories of the United States, the 
Secretary is authorized to assist each such territorial government in a 
program for the construction and improvement of a system of arterial 
and collector highways, and necessary inter-island connectors 
designated by the Governor of such territory and approved by the 
Secretary. Federal financial assistance shall be granted under this 
section in accordance with section 120(h) of this title.
    ``(b) Technical Assistance.--In order to continue a long-range 
highway development program, the Secretary is authorized to provide 
technical assistance to the territorial governments to enable them to, 
on a continuing basis, engage in highway planning, conduct 
environmental evaluations, administer right-of-way acquisition and 
relocation assistance programs, and design, construct, operate, and 
maintain a system of arterial and collector highways, including 
necessary inter-island connectors. The technical assistance to be 
provided and the terms for sharing information among the territories 
shall be set forth in the agreement required by subsection (d) of this 
section.
    ``(c) Applicability of Chapter 1.--The provisions of chapter 1 of 
this title (other than provisions related to the apportionment and 
allocation of funds) shall apply to funds authorized to be appropriated 
for the territorial highway program, except as determined by the 
Secretary to be inconsistent with the needs of the territories and the 
intent of the territorial highway program. The specific sections of 
chapter 1 that are applicable to each territory and the extent of their 
applicability shall be identified in the agreement provided for in 
subsection (d) of this section.
    ``(d) Agreement.--
            ``(1) Except as provided in paragraph (3) of this 
        subsection, no part of the appropriations authorized for the 
        territorial highway program shall be available for obligation 
        or expenditure with respect to any territory until the Governor 
        enters into a new agreement with the Secretary, within 12 
        months after the effective date of this Act, providing that the 
        government of such territory shall--
                    ``(A) implement the territorial highway program in 
                accordance with the appropriate provisions of chapter 1 
                of this title, as provided for in subsection (c) of 
                this section;
                    ``(B) design and construct a system of arterial and 
                collector highways, including necessary interisland 
                connectors, built in accordance with standards 
                appropriate for each territory and approved by the 
                Secretary;
                    ``(C) provide for the maintenance of facilities 
                constructed or operated under provisions of this 
                section in a condition to adequately serve the needs of 
                present and future traffic; and
                    ``(D) implement standards for traffic operations 
                and uniform traffic control devices that are approved 
                by the Secretary.
            ``(2) The new agreement required by paragraph (1) of this 
        subsection also shall specify the kind of technical assistance 
        to be provided, include appropriate provisions regarding 
        information sharing among the territories, and delineate the 
        oversight role and responsibilities of the territories and the 
        Secretary. The agreement shall be re-evaluated every two years 
        and modified as appropriate.
            ``(3) Agreements in effect on the effective date of this 
        Act shall continue in force until replaced, as required by 
        paragraph (1) of this subsection, and appropriations authorized 
        for the program shall be available for obligation or 
        expenditure while the agreements are in place.
    ``(e) Permissible Uses of Funds.--
            ``(1) Funds made available for the territorial highway 
        program may be used only for--
                    ``(A) eligible surface transportation program 
                projects described in section 133(b) of this title;
                    ``(B) cost effective preventive maintenance 
                consistent with the requirements of section 116 of this 
                title;
                    ``(C) ferry boats, terminal facilities, and 
                approaches, as provided for in section 129(b) and (c) 
                of this title;
                    ``(D) engineering and economic surveys and 
                investigations for the planning of future highway 
                programs and the financing thereof;
                    ``(E) studies of the economy, safety, and 
                convenience of highway usage and the desirable 
                regulation and equitable taxation thereof; and
                    ``(F) research and development, necessary in 
                connection with the planning, design, and maintenance 
                of the highway system, and the regulation and taxation 
                of their use.
            ``(2) None of the appropriations authorized for the 
        territorial highway program shall be obligated or expended for 
        routine maintenance.
    ``(f) Location of Projects.--Except as provided in subsection 
(b)(1) of section 133 of this title, territorial highway projects 
(other than those described in subsection (b)(3) and (4) of section 133 
of this title) may not be undertaken on roads functionally classified 
as local.''.
    (h) Conforming Amendments.--The analysis of chapter 2 of title 23 
is amended by revising the item relating to section 215 to read as 
follows:

``215. Territorial highway program.''.

SEC. 1809. FUTURE INTERSTATE SYSTEM ROUTES.

    (a) Written Agreement of States.--Section 103(c)(4)(B)(ii) of title 
23, United States Code, is amended by striking ``12'' and inserting 
``25''.
    (b) Removal of Designation.--Section 103(c)(4)(B)(iii)(I) of such 
title is amended--
            (1) by striking ``in the agreement between the Secretary 
        and the State or States''; and
            (2) by adding at the end the following: ``An agreement 
        entered into under clause (ii) prior to the enactment of the 
        Safe, Accountable, Flexible, and Efficient Transportation 
        Equity Act of 2003 shall be deemed to include the 25 year time 
        limitation, notwithstanding an earlier construction completion 
        date in that agreement.''.

SEC. 1810. DONATIONS AND CREDITS.

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

SEC. 1811. DISADVANTAGED BUSINESS ENTERPRISES.

    (a) 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 shall 
be expended with small business concerns owned and controlled by 
socially and economically disadvantaged individuals.
    (b) Definitions.--In this section, the following definitions apply:
            (1) 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.
            (2) 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 section.
    (c) Annual Listing of Disadvantaged Business Enterprises.--Each 
State shall annually survey and compile a list of the small business 
concerns referred to in subsection (a) 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.
    (d) 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.
    (e) Compliance With Court Orders.--Nothing in this section limits 
the eligibility of an entity or person to receive funds made available 
under titles I, III, and V of this Act, if the entity or person is 
prevented, in whole or in part, from complying with subsection (a) 
because a Federal court issues a final order in which the court finds 
that the requirement of subsection (a), or the program established 
under subsection (a), is unconstitutional.

SEC. 1812. HIGHWAY BRIDGE PROGRAM.

    (a) Program Name.--Section 144 of title 23, United States Code, is 
amended in the section heading by striking ``replacement and 
rehabilitation''.
    (b) In General.--Section 144(a) of such title is amended to read as 
follows:
    ``(a) Congress hereby finds and declares it to be in the vital 
interest of the Nation that a highway bridge program be established to 
enable the several States to improve the condition of their bridges 
through replacement, rehabilitation, and systematic preventative 
maintenance on highway bridges over waterways, other topographical 
barriers, other highways, or railroads when the States and the 
Secretary find that a bridge is unsafe because of structural 
deficiencies, physical deterioration, or functional obsolescence.''.
    (c) Scour Countermeasures.--Section 144(d) of such title is amended 
to read as follows:
    ``(d) 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) of this section shows to be eligible, the Secretary may approve 
Federal participation in replacing such bridge with a comparable 
facility or in rehabilitating such bridge. Whenever any State makes 
application to the Secretary for assistance in painting, seismic 
retrofit, or preventative 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 preventative 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. 
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 preventative 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.''.
    (d) Apportionment Formula.--Section 144(e) of such title is 
amended--
            (1) in the third sentence by striking ``square footage'' 
        and inserting ``area'';
            (2) in the fourth sentence by striking ``by the total cost 
        of any highway bridges constructed under subsection (m) in such 
        State, relating to replacement of destroyed bridges and 
        ferryboat services, and,'' and by striking ``1997'' and 
        inserting ``2003''; and
            (3) by striking ``the Federal-aid primary system'' and 
        inserting ``Federal-aid highways''.
    (e) Discretionary Bridge Program.--Section 144(g) of such title is 
amended--
            (1) by striking ``Set Asides.'' in the heading of (g) and 
        all that follows through paragraph (2)(B);
            (2) by striking ``(3)'' and redesignating paragraph (3) as 
        subsection (g); and
            (3) in subsection (g), as redesignated, by--
                    (A) striking ``nor more than 35 percent'';
                    (B) striking ``1987'' and inserting ``2004'';
                    (D) striking ``2003'' and inserting ``2009''; and
                    (E) striking ``paint'' and inserting ``perform 
                systematic preventative maintenance''.
    (f) Inventories and Reports.--Section 144(i) of such title is 
amended--
            (1) in paragraph (3), by striking ``and'';
            (2) in paragraph (4), by striking ``section.'' and 
        inserting ``section; and''; and
            (3) after paragraph (4), by striking ``Such reports shall 
        be submitted to such committees biennially at the same time as 
        the report required by section 307(f)(1) of this title is 
        submitted to Congress.'' and inserting the following:
            ``(5) submit reports required by this subsection to such 
        committees biennially at the same time as the report required 
        by section 502(g) of this title.''.
    (g) Off-System Bridge Program.--Section 144(n) of such title is 
amended by inserting ``general engineering'' between ``all'' and 
``standards''.
    (h) Historic Bridge Program.--Section 144(o) of such title is 
amended--
            (1) in paragraph (3), by striking ``title (including this 
        section)'' and inserting ``section'' and by inserting ``200 
        percent of'' after ``shall not exceed''; and
            (2) in paragraph (4), by inserting ``200 percent of'' after 
        ``not to exceed'', and by striking ``title'' at the end of the 
        paragraph and inserting ``section''.
    (i) Water Resources Projects.--Section 144 of such title is further 
amended by adding at the end the following:
    ``(r) Notwithstanding any other provision of law, any bridge funded 
under this title shall not be considered a `water resources project' as 
that term is used in the Wild and Scenic Rivers Act (16 U.S.C. 1271-
1287).''.
    (j) Conforming Amendment.--The analysis for chapter 1 of title 23 
is amended in the item relating to section 144 by striking 
``replacement and rehabilitation''.

SEC. 1813. DESIGN-BUILD.

    Section 112(b)(3) of title 23, United States Code, is amended by 
striking subparagraph (C) and inserting the following in its place:
                    ``(C) Qualified projects.--A qualified project 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.''.

SEC. 1814. INTERNATIONAL FERRIES.

    Section 129(c)(5) of title 23, United States Code, is amended--
            (1) by striking ``and'' the first place it appears in the 
        first sentence, and inserting a comma;
            (2) by adding ``, and the islands that comprise a territory 
        of the United States'' after ``Puerto Rico'' in the first 
        sentence; and
            (3) by adding ``operations between the islands which 
        comprise a territory of the United States,'' after ``Puerto 
        Rico,'' in the second sentence.

SEC. 1815. ASSUMPTION OF RESPONSIBILITY FOR TRANSPORTATION 
              ENHANCEMENTS, RECREATIONAL TRAILS, AND TRANSPORTATION AND 
              COMMUNITY AND SYSTEM PRESERVATION PROGRAM PROJECTS.

    (a) In General.--Chapter 1 of title 23, United States Code, as 
amended by this Act, is further amended by inserting the following new 
section after section 165:
``Sec. 166. Assumption of responsibility for transportation 
              enhancements, recreational trails, and transportation, 
              community, and system preservation program projects
    ``(a) Assumption of Secretary's Responsibilities Under Applicable 
Federal Laws.--
            ``(1) In general.--Upon mutual agreement the Secretary may 
        assign, and the State may assume, any of the Secretary's 
        responsibilities (except responsibilities relating to Federally 
        recognized tribes) for environmental reviews, consultation, 
        decision-making or other actions under any Federal law 
        applicable to projects that--
                    ``(A) are funded under section 104(h) or section 
                167 of this title; or
                    ``(B) meet the definition of a transportation 
                enhancement activity as set forth in section 101(a)(38) 
                of this title.
            ``(2) Limitations.--The State shall assume these 
        responsibilities subject to the same procedural and substantive 
        requirements as would be required if such responsibilities were 
        carried out by the Secretary. When a State assumes any 
        responsibility under a Federal law pursuant to this section, it 
        assents to Federal jurisdiction and shall be solely responsible 
        and solely liable for complying with and carrying out that law 
        in lieu of the Secretary.
    ``(b) Agreements.--The Secretary and the State shall enter into a 
memorandum of understanding setting forth the responsibilities to be 
assigned under this section and the terms and conditions under which 
such assignments are to be made. In the memorandum of understanding the 
State shall consent to accept the jurisdiction of the Federal courts 
for the compliance, discharge, and enforcement of any responsibility of 
the Secretary it may assume. Such memoranda of understanding shall be 
established for periods of no more than three years. The Secretary 
shall review and determine compliance with the memorandum of 
understanding and the laws assigned by it to the State on an annual 
basis for the first three years of the agreement and, subsequently, on 
a periodic basis to be determined by mutual agreement but no longer 
than every three years.
    ``(c) Termination.--The Secretary may terminate any assignment of 
responsibility under this section upon a determination that a State is 
not adequately meeting the terms and conditions of the memorandum of 
understanding.
    ``(d) State Defined.--For the recreational trails program, 
``State'' means the State agency designated by the Governor of the 
State in accordance with section 206(c)(1) of this title.
    ``(e) Preservation of Public Interest Consideration.--Nothing 
contained 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 decision-making.
    ``(f) State Subject to Federal Laws.--For purposes of assuming 
the Secretary's responsibilities under this section, the State agency 
signing the agreement in subsection (c) 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, under 
this title, and under any other Federal law.''.
    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, as amended by this Act, is further amended by 
inserting after the item relating to section 165 the following:

``166. Assumption of responsibility for transportation enhancements, 
                            recreational trails, and transportation and 
                            community and system preservation program 
                            projects.''.

SEC. 1816. TRANSPORTATION, COMMUNITY, AND SYSTEM PRESERVATION PROGRAM.

    (a) Transportation, Community, and System Preservation Program.--
Chapter 1 of title 23, United States Code, as amended by this Act, is 
further amended by inserting the following new section after section 
166:
``Sec. 167. Transportation, community, and system preservation program
    ``(a) Establishment and Purpose.--The Secretary shall establish a 
comprehensive program to investigate and address the relationships 
between transportation and community and system preservation and 
identify private sector-based initiatives. Through this program, the 
Secretary shall facilitate the planning, development, and 
implementation of strategies by States, metropolitan planning 
organizations, federally-recognized tribes, and local governments to 
integrate transportation, community, and system preservation plans and 
practices that address one or more of the following:
            ``(1) Improve the efficiency of the transportation system.
            ``(2) Reduce the impacts of transportation on the 
        environment.
            ``(3) Reduce the need for costly future investments in 
        public infrastructure.
            ``(4) Provide efficient access to jobs, services, and 
        centers of trade.
            ``(5) Examine development patterns and identify strategies 
        to encourage private sector development patterns which achieve 
        the goals identified in paragraphs (1) through (4).
    ``(b) Funding.--Funds authorized to be apportioned under section 
104(q) of this title shall be available to carry out the provisions of 
this section.''.
    (b) Section 104 of such title is amended by adding after subsection 
(p), as added by this Act, the following:
    ``(q) Transportation, Community, and System Preservation Program.--
            ``(1) Set-aside.--On October 1 of each fiscal year for 
        fiscal years 2004 through 2009, the Secretary, after making the 
        deductions authorized by subsections (a) and (f), shall set 
        aside $26,000,000 of the remaining funds authorized to be 
        apportioned under subsection (b)(3) for carrying out the 
        Transportation, Community, and System Preservation Program 
        under section 167 of this chapter.
            ``(2) Apportionment.--
                    ``(A) From amounts set aside under paragraph (1), 
                the Secretary shall apportion $500,000 each fiscal year 
                to each State, including the District of Columbia and 
                Puerto Rico, to carryout the provisions of section 167.
                    ``(B) A State shall also make funds apportioned 
                under this subsection available to metropolitan 
                planning organizations, federally recognized tribes, 
                and local governments in a manner and amounts to be 
                determined by the State to carryout the provisions of 
                section 167.''.
    (c) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, as amended by this Act, is further amended by 
inserting after the item relating to section 166 the following:

``167. Transportation, community, and system preservation program.''.

SEC. 1817. PROGRAM EFFICIENCES--FINANCE.

    Section 115 of title 23, United States Code, is amended--
            (1) by striking ``(a)'' and all that follows through 
        subsection (a)(1)(B);
            (2) by striking subsection (b);
            (3) by redesignating subsection (c) as subsection (d);
            (4) by redesignating subsections (a)(2), (a)(2)(A), and 
        (a)(2)(B) as subsections (c), (c)(1), and (c)(2) respectively; 
        and
            (5) by inserting after the section heading the following:
    ``(a) The Secretary may authorize a State to proceed with a project 
authorized under this title without the aid of Federal funds in 
accordance with all procedures and all requirements applicable to such 
a project, except insofar as such procedures and requirements limit the 
State to implementation of projects with the aid of Federal funds 
previously apportioned or allocated to it or limit a State to 
implementation of a project with obligation authority previously 
allocated to it.
    ``(b) The Secretary, upon the request of the State and execution of 
a project agreement, may obligate the Federal share, or a portion of 
the Federal share, of the cost of a project authorized under this 
section from any category of funds for which the project is 
eligible.''.

   Subtitle I--Technical Corrections to Title 23, United States Code

SEC. 1901. REPEAL OR UPDATE OF OBSOLETE TEXT.

    (a) Letting of Contracts.--Section 112 of title 23, United States 
Code, is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsection (g) as subsection (f).
    (b) Fringe and Corridor Parking Facilities.--Section 137(a) of 
title 23, United States Code, is amended in the first sentence by 
striking ``on the Federal-aid urban system'' and inserting ``on a 
Federal-aid highway''.
    (c) Repeal of Obsolete Sections of Title 23.--
            (1) Priority primary routes.--Section 147 of title 23, 
        United States Code, is repealed.
            (2) Development of a national scenic and recreational 
        highway.--Section 148 of title 23, United States Code, is 
        repealed.
            (3) Access highways to public recreation areas on certain 
        lakes.--Section 155 of title 23, United States Code, is 
        repealed.
            (4) Conforming amendments.--The analysis for chapter 1 of 
        title 23, United States Code, is amended by striking the items 
        relating to sections 147, 148, and 155.

SEC. 1902. CLARIFICATION OF DATE.

    Section 109(g) of title 23, United States Code, is amended in the 
first sentence by striking ``the day of enactment of the Federal-Aid 
Highway Act of 1970'' and inserting ``December 31, 1970,''.

SEC. 1903. INCLUSION OF REQUIREMENTS FOR SIGNS IDENTIFYING FUNDING 
              SOURCES IN TITLE 23.

    (a) In General.--Section 154 of the Federal-Aid Highway Act of 1987 
(23 U.S.C. 101 note; 101 Stat. 209) is--
            (1) transferred to title 23, United States Code;
            (2) redesignated as section 321;
            (3) moved to appear after section 320 of that title; and
            (4) amended by striking the section heading and inserting 
        the following:
``Sec. 321. Signs identifying funding sources''.
    (b) Conforming Amendment.--The analysis for chapter 3 of title 23, 
United States Code, is amended by inserting after the item relating to 
section 320 the following:

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

SEC. 1904. INCLUSION OF ``BUY AMERICA'' REQUIREMENTS IN TITLE 23.

    (a) In General.--Section 165 of the Highway Improvement Act of 1982 
(23 U.S.C. 101 note; 96 Stat. 2136) is--
            (1) transferred to title 23, United States Code;
            (2) redesignated as section 313;
            (3) moved to appear after section 312 of that title; and
            (4) amended by striking the section heading and inserting 
        the following:
``Sec. 313. Buy America''.
    (b) Conforming Amendments.--
            (1) The analysis for chapter 3 of title 23,United States 
        Code, is amended by inserting after the item relating to 
        section 320 the following:

``313. Buy America.''.
            (2) Section 313 of title 23, United States Code (as added 
        by subsection (a)), is amended--
                    (A) in subsection (a), by striking ``any funds 
                authorized to be appropriated by this Act or by any Act 
                amended by this Act or, after the date of enactment of 
                this Act, any funds authorized to be appropriated to 
                carry out this Act, title 23, United States Code, or 
                the Surface Transportation Assistance Act of 1978'' and 
                inserting ``any funds authorized to be appropriated to 
                carry out the Surface Transportation Assistance Act of 
                1982 (96 Stat. 2097) or this title'';
                    (B) in subsection (b), by redesignating paragraph 
                (4) as paragraph (3);
                    (C) in subsection (d), by striking ``this Act, the 
                Surface Transportation Assistance Act of 1978, or title 
                23, United States Code,'' and inserting ``the Surface 
                Transportation Assistance Act of 1982 (96 Stat. 2097) 
                or this title'';
                    (D) by striking subsection (e); and
                    (E) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively.

SEC. 1905. TECHNICAL AMENDMENTS TO 23 UNITED STATES CODE 140 
              (NONDISCRIMINATION).

    (a) Section 140(a) of title 23, United States Code, is amended as 
follows:
            (1) At the beginning of the second sentence, strike the 
        word ``He'' and insert in its place the words ``The 
        Secretary''.
            (2) In the first sentence, strike ``subsection (a) of 
        section 105'' and insert in its place ``section 135''.
            (3) In the third sentence, strike the phrase ``where he 
        considers it necessary'' and insert in its place the phrase 
        ``where necessary''.
            (4) The last sentence is amended to read as follows: ``The 
        Secretary shall periodically obtain from the Secretary of Labor 
        and the respective State transportation departments information 
        which will enable the Secretary to judge compliance with the 
        requirements of this section and the Secretary of Labor shall 
        render to the Secretary such assistance and information as the 
        Secretary shall deem necessary to carry out the equal 
        employment opportunity program required hereunder.''.
    (b) Section 140(b) of title 23, United States Code, is amended as 
follows:
            (1) In the first sentence, strike the words ``highway 
        construction'' and insert ``surface transportation'';
            (2) In the second sentence, strike the phrase ``as he may 
        deem necessary'' and insert in its place the phrase ``as 
        necessary'', and strike the phrase ``not to exceed $2,500,000 
        for the transition quarter ending September 30, 1976, and''.
            (3) In the fourth sentence, strike the phrase ``shall not 
        be not be applicable to contracts'' and insert in its place the 
        phrase ``shall not be applicable to contracts''.
    (c) The second sentence of section 140(c) of title 23, United 
States Code, is amended by striking the phrase ``the Secretary shall 
deduct such sums as he may deem necessary,'' and inserting in its place 
the phrase ``the Secretary shall deduct such sums as necessary,''.
    (d) Section 140(d) of title 23, United States Code, is amended by 
striking from its catchline the words ``and contracting''.

SEC. 1906. FEDERAL SHARE PAYABLE FOR PROJECTS FOR ELIMINATION OF 
              HAZARDS OF RAILWAY-HIGHWAY CROSSINGS.

    Section 120(c) of title 23, United States Code, is amended by 
amending the first sentence of subsection (c) to read as follows: ``The 
Federal share payable on account of any project for traffic control 
signalization; safety rest areas; pavement marking; commuter carpooling 
and vanpooling; rail-highway crossing closure; projects for elimination 
of hazards of railway-highway crossings, as identified in section 2604 
of Public Law 106-246 (114 Stat. 511, 559); or installation of traffic 
signs, traffic lights, guardrails, impact attenuators, concrete barrier 
endtreatments, breakaway utility poles, or priority control systems for 
emergency vehicles or transit vehicles at signalized intersections may 
amount to 100 percent of the cost of construction of such projects; 
except that not more than 10 percent of all sums apportioned for all 
the Federal-aid systems for any fiscal year in accordance with section 
104 of this title shall be used under this subsection.''.

                        TITLE II--HIGHWAY SAFETY

SEC. 2001. HIGHWAY SAFETY PROGRAMS.

    (a) Performance Grants.--Section 402 (k) of title 23, United States 
Code, is amended to read as follows:
    ``(k) Performance Grants.--In addition to other grants authorized 
by this section, the Secretary shall make grants in accordance with 
this subsection. Funds authorized to carry out this subsection in a 
fiscal year shall be subject to a deduction not to exceed 5 percent for 
the necessary costs of administering this subsection.
            ``(1) General performance grants.--On or before December 
        31, 2003, and on or before each December 31 thereafter through 
        December 31, 2008, the Secretary shall make grants to States 
        based upon the performance of their highway safety programs in 
        the following categories: (i) motor vehicle crash fatalities; 
        (ii) alcohol-related crash fatalities; and (iii) motorcycle, 
        bicycle, and pedestrian crash fatalities.
                    ``(A) Determinations by the secretary.--The 
                Secretary, through a rulemaking proceeding, shall 
                determine--
                            ``(i) measures for calculating and scoring 
                        performance in each category under this 
                        paragraph, using the data for the most recent 
                        calendar year for which the data are available 
                        from--
                                    ``(I) fatality data provided by the 
                                National Highway Traffic Safety 
                                Administration; and
                                    ``(II) vehicle miles traveled 
                                determined by the Federal Highway 
                                Administration.
                            ``(ii) goals for achievement and annual 
                        progress in each category under this paragraph 
                        that reflect the potential of each goal to save 
                        lives; and
                            ``(iii) a weighting system for all of the 
                        goals that reflects the relative potential of 
                        each goal to save lives.
                    ``(B) Amount of grants.--The Secretary shall 
                determine the amount of funds available to a State in a 
                fiscal year for grants under this paragraph, based on 
                the State's achievement or annual progress in each of 
                the categories under this paragraph, using the 
                measures, goals and weighting system established under 
                this paragraph, the amount appropriated to carry out 
                the grants for such fiscal year, and the ratio that the 
                funds apportioned to the State under section 402(c) for 
                such fiscal year bears to the funds apportioned under 
                section 402(c) for such fiscal year to all the States 
                that qualify for a grant for such fiscal year.
            ``(2) Safety belt performance grants.
                     ``(A) Primary safety belt use law.--
                            ``(i) For fiscal years 2004 and 2005, the 
                        Secretary shall make a grant to each State that 
                        enacted, and is enforcing, a primary safety 
                        belt use law for all passenger motor vehicles 
                        that became effective by December 31, 2002.
                            ``(ii) For each of fiscal years 2004 
                        through 2009, the Secretary shall, after making 
                        grants under paragraph (2)(A)(i) of this 
                        subsection, make a one-time grant to each State 
                        that either enacts for the first time after 
                        December 31, 2002, and has in effect a primary 
                        safety belt use law for all passenger motor 
                        vehicles, or, in the case of a State that does 
                        not have such a primary safety belt use law, 
                        has a State safety belt use rate in the 
                        preceding fiscal year of at least 90 percent, 
                        as measured under criteria determined by the 
                        Secretary.
                            ``(iii) Of the funds authorized for grants 
                        under this subsection, $100,000,000 in each of 
                        fiscal years 2004 through 2009 shall be 
                        available for grants under this paragraph. The 
                        amount of a grant available to a State in each 
                        of fiscal years 2004 and 2005 under paragraph 
                        (2)(A)(i) of this subsection shall be equal to 
                        one-half of the amount of funds apportioned to 
                        the State under subsection (c) of this section 
                        for fiscal year 2003. The amount of a grant 
                        available to a State in fiscal year 2004 or in 
                        a subsequent fiscal year under paragraph 
                        (2)(A)(ii) of this subsection shall be equal to 
                        five times the amount apportioned to the State 
                        for fiscal year 2003 under subsection (c). 
                        Notwithstanding subsection (d) of this section, 
                        the Federal share payable for grants under this 
                        paragraph shall be 100 percent. If the total 
                        amount of grants under paragraph (2)(A)(ii) for 
                        a fiscal year exceeds the amount of funds 
                        available in the fiscal year, grants shall be 
                        made to each eligible State, in the order in 
                        which its primary safety belt use law became 
                        effective or its safety belt use rate reached 
                        90 percent, until the funds for the fiscal year 
                        are exhausted. A State that does not receive a 
                        grant for which it is eligible in a fiscal year 
                        shall receive the grant in the succeeding 
                        fiscal year so long as its law remains in 
                        effect or its safety belt use rate remains at 
                        or above 90 percent. If the total amount of 
                        grants under this paragraph for a fiscal year 
                        is less than the amount available in the fiscal 
                        year, the Secretary shall use any funds that 
                        exceed the total amount for grants under 
                        paragraph (2)(B) of this subsection.
                    ``(B) Safety belt use rate.--
                            ``(i) On or before December 31, 2003, and 
                        on or before each December 31 thereafter 
                        through December 31, 2008, the Secretary shall 
                        make grants to States based upon their safety 
                        belt use rate in the preceding fiscal year.
                            ``(ii) The Secretary, through a rulemaking, 
                        shall determine measures for calculating and 
                        scoring the performance for safety belt use 
                        rates, using data for the most recent calendar 
                        year for which State safety belt use rate data 
                        are available from observational safety belt 
                        surveys conducted in accordance with criteria 
                        established by the Secretary.
                            ``(iii) Of the funds authorized for grants 
                        under this subsection, $25,000,000 for fiscal 
                        year 2004, $27,000,000 for fiscal year 2005, 
                        $29,000,000 for fiscal year 2006, $31,000,000 
                        for fiscal year 2007, $34,000,000 for fiscal 
                        year 2008, and $36,000,000 for fiscal year 2009 
shall be available for safety belt use rate grants under this 
paragraph. The Secretary shall determine the amount of funds available 
to a State in a fiscal year based on the State's achievement or annual 
progress in its safety belt use rate, the amount appropriated to carry 
out the grants for such fiscal year, and the ratio that the funds 
apportioned to the State under section 402(c) for such fiscal year 
bears to the funds apportioned under section 402(c) for such fiscal 
year to all the States that qualify for a grant for such fiscal year. 
Notwithstanding subsection (d) of this section, the Federal share 
payable for grants under this paragraph shall be 100 percent.
                    ``(C) Definition.--In this paragraph, passenger 
                motor vehicle means a passenger car, pickup truck, van, 
                minivan, or sport utility vehicle, with a gross vehicle 
                weight rating of less than 10,000 pounds.
            ``(3) Use of grants.--A State allocated an amount for a 
        grant under paragraph (1)(A) of this subsection shall use the 
        amount for activities eligible for assistance under this 
        section, except that it may use up to 50 percent of the amount 
        for activities eligible under section 150 of this title and 
        consistent with the State's strategic highway safety plan under 
        section 151 of this title that are not otherwise eligible for 
        assistance under this section. A State allocated an amount for 
        a grant under paragraph (2)(A) of this subsection may use the 
        amount for activities eligible for assistance under this 
        section or for activities eligible under section 150 of this 
        title and consistent with the State's strategic highway safety 
        plan under section 151 of this title that are not otherwise 
        eligible for assistance under this section. A State allocated 
        an amount for a grant under paragraph (2)(B) of this 
        subsection, including any amount transferred under paragraph 
        (2)(A) of this subsection, shall use the amount for safety belt 
        use programs eligible for assistance under this section, except 
        that it may use up to 50 percent of the amount for activities 
        eligible under section 150 of this title and consistent with 
        the State's strategic highway safety plan under section 151 of 
        this title that are not otherwise eligible for assistance under 
        this section.''.
    (b) Impaired Driving Grants.--Section 402 of title 23, United 
States Code, is amended by adding at the end the following subsection:
    ``(l)(1) Impaired Driving Grants.--In addition to other grants 
authorized by this section and subject to the provisions of this 
subsection, the Secretary shall design and implement a discretionary 
grant program to develop, demonstrate, and evaluate comprehensive State 
programs to reduce impaired driving in States with a high number of 
alcohol-related fatalities and a high rate of alcohol-related 
fatalities relative to vehicle miles traveled and population.
    ``(2) Procedure.--The Secretary shall establish a procedure for 
submitting grant applications under this subsection, and shall select 
from among the applicants the States to participate in the program.
    ``(3) Use of Grants.--A grant to a State under this subsection 
shall be used only to carry out the State's program under paragraph 
(1).
    ``(4) Administrative Expenses.--Funds authorized to be appropriated 
to carry out this subsection in a fiscal year shall be subject to a 
deduction not to exceed 10 percent for the costs of evaluating the 
programs and administering the provisions of this subsection.
    ``(5) Federal Share.--Notwithstanding subsection (d) of this 
section, the Federal share payable for a grant under this subsection 
shall be--
            ``(A) 100 percent in the first and second fiscal years in 
        which the State receives a grant;
            ``(B) 75 percent in the third and fourth fiscal years in 
        which the State receives a grant; and
            ``(C) 50 percent in the fifth and sixth fiscal years in 
        which the State receives a grant.''.

SEC. 2002. HIGHWAY SAFETY RESEARCH AND DEVELOPMENT.

    Section 403(a) (Authority of the Secretary) of title 23, United 
States Code, is amended by adding the following paragraphs at the end:
            ``(4) Emergency medical services.--In addition to the 
        authority provided under this subsection, the Secretary is 
        authorized to use funds appropriated to carry out this section 
        to enhance coordination among Federal agencies involved with 
        State, local, tribal, and community-based emergency medical 
        services. In exercising this authority, the Secretary may 
        coordinate with State and local governments, the Bureau of 
        Indian Affairs on behalf of Indian tribes, private industry, 
        and other interested parties; collect and exchange emergency 
        medical services data and information; examine emergency 
        medical services needs, best practices, and related technology; 
        and develop emergency medical services standards and 
        guidelines, and plans for the assessment of emergency medical 
        services systems.
            ``(5) International cooperation.--In addition to the 
        authority provided under this subsection, the Secretary is 
        authorized to use funds appropriated to carry out this section 
        to participate and cooperate in international activities to 
        enhance highway safety by such means as exchanging safety 
        information; conducting safety research; and examining safety 
        needs, best practices, and new technology.
            ``(6) National motor vehicle crash causation survey.--In 
        addition to the authority provided under this subsection, the 
        Secretary is authorized to use funds appropriated to carry out 
        this section to develop and conduct a nationally representative 
        survey to collect on-scene motor vehicle crash causation 
        data.''.

SEC. 2003. EMERGENCY MEDICAL SERVICES.

    (a) Federal Coordination and Enhanced Support of Emergency Medical 
Services.--Chapter 4 of title 23, United States Code, is amended by 
revising section 407 to read as follows:
``Sec. 407. Federal coordination and enhanced support of emergency 
              medical services
    ``(a) Federal Interagency Committee on Emergency Medical 
Services.--
            ``(1) In general.--The Secretary of Transportation and the 
        Secretary of Homeland Security through the Under Secretary for 
        Emergency Preparedness and Response, in consultation with the 
        Secretary of Health and Human Services, shall establish a 
        Federal Interagency Committee on Emergency Medical Services 
        (referred to as the `Interagency Committee on EMS') that 
        shall--
                    ``(A) assure coordination among the Federal 
                agencies involved with State, local, tribal or regional 
                emergency medical services and 9-1-1 systems;
                    ``(B) identify State, local, tribal or regional 
                emergency medical services and 9-1-1 needs;
                    ``(C) recommend new or expanded programs, including 
                grant programs, for improving State, local, tribal or 
                regional emergency medical services and implementing 
                improved EMS communications technologies, including 
                wireless E9-1-1;
                    ``(D) identify ways to streamline the process 
                through which Federal agencies support State, local, 
                tribal or regional emergency medical services;
                    ``(E) assist State, local, tribal or regional 
                emergency medical services in setting priorities based 
                on identified needs; and
                    ``(F) advise, consult with and make recommendations 
                on matters relating to the implementation of the 
                coordinated State emergency medical services program 
                established under subsection (b) of this section.
            ``(2) Membership.--The membership of the Interagency 
        Committee on EMS shall consist of the following officials, or 
        their designees:
                    ``(A) Administrator, National Highway Traffic 
                Safety Administration.
                    ``(B) Director, Preparedness Division, Emergency 
                Preparedness and Response Directorate, Department of 
                Homeland Security.
                    ``(C) Administrator, Health Resources and Services 
                Administration.
                    ``(D) Director, Centers for Disease Control and 
                Prevention.
                    ``(E) Administrator, United States Fire 
                Administration, Emergency Preparedness and Response 
                Directorate, Department of Homeland Security.
                    ``(F) Director, Center for Medicare and Medicaid 
                Services.
                    ``(G) Undersecretary of Defense for Personnel and 
                Readiness, Department of Defense.
                    ``(H) Assistant Secretary for Public Health 
                Emergency Preparedness, Department of Health and Human 
                Services.
                    ``(I) Director, Indian Health Service, Department 
                of Health and Human Services.
                    ``(J) Chief, Wireless Telecom Bureau, Federal 
                Communications Commission.
                    ``(K) A representative of any other Federal agency 
                identified by the Secretary of Transportation or the 
                Secretary of Homeland Security through the Under 
                Secretary for Emergency Preparedness and Response, in 
                consultation with the Secretary of Health and Human 
                Services, as having a significant role in the purposes 
                of the Interagency Committee on EMS.
            ``(3) Administration.--The National Highway Traffic Safety 
        Administration, in cooperation with the Director, Preparedness 
        Division, Emergency Preparedness and Response Directorate, 
        Department of Homeland Security, shall provide administrative 
        support to the Interagency Committee on EMS, including 
        scheduling meetings, setting agendas, keeping minutes and 
        records, and producing reports.
            ``(4) Leadership.--The members of the Interagency Committee 
        on EMS shall select a chairperson of the Committee annually.
            ``(5) Meetings.--The Interagency Committee on EMS shall 
        meet as frequently as determined necessary by the chairperson 
        of the Committee.
            ``(6) Annual reports.--The Interagency Committee on EMS 
        shall prepare an annual report to Congress on the Committee's 
        activities, actions, and recommendations.
    ``(b) Coordinated Nationwide Emergency Medical Services Program.--
            ``(1) General authority.--The Secretary of Transportation, 
        through the Administrator of the National Highway Traffic 
        Safety Administration, is authorized and directed to cooperate 
        with other Federal departments and agencies, and may assist 
        State and local governments and EMS organizations, both fire-
        based and otherwise, private industry, and other interested 
        parties, to ensure the development and implementation of a 
        coordinated nationwide emergency medical services program 
        designed to strengthen transportation safety and public health 
        and to implement improved EMS communication systems including 
        9-1-1. For the purposes of this section, the term `State' means 
        any one of the fifty States, the District of Columbia, Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and the Secretary 
        of the Interior on behalf of Indian Tribes.
            ``(2) Coordinated state emergency medical services 
        program.--Each State shall establish a program, approved by the 
        Secretary, to coordinate the emergency medical services and 
        resources deployed throughout the State, so as to ensure 
        improved EMS communication systems including 9-1-1, utilization 
        of established best practices in system design and operations, 
        implementation of quality assurance programs, and incorporation 
        of data collection and analysis programs that facilitate system 
        development and data linkages with other systems and programs 
        useful to emergency medical services.
            ``(3) Administration of state programs.--The Secretary may 
        not approve a coordinated State emergency medical services 
        program under this subsection unless the program--
                    ``(A) provides that the Governor of the State is 
                responsible for its administration through a State 
                office of emergency medical services that has adequate 
                powers and is suitably equipped and organized to carry 
                out such program and coordinates such program with the 
                highway safety office of the State; and
                    ``(B) authorizes political subdivisions of the 
                State to participate in and receive funds under such 
                program, consistent with goal of achieving statewide 
                coordination of emergency medical services and 9-1-1 
                activities.
            ``(4) Use of funds; administrative expenses; 
        apportionments.--Funds authorized to be appropriated to carry 
        out this subsection shall be used to aid the States in 
        conducting coordinated emergency medical services and 9-1-1 
        programs that are in accordance with the provisions of 
        paragraph (2). Such funds shall be subject to a deduction not 
        to exceed 10 percent for the necessary costs of administering 
        the provisions of this subsection, and the remainder shall be 
        apportioned among the States. Such funds shall be apportioned 
as follows: 75 percent in the ratio that the population of each State 
bears to the total population of all the States, as shown by the latest 
available Federal census, and 25 percent in the ratio that the public 
road mileage in each State bears to the total public road mileage in 
all States. For the purpose of this subsection, a `public road' means 
any road under the jurisdiction of and maintained by a public authority 
and open to public travel. Public road mileage as used in this 
subsection shall be determined as of the end of the calendar year prior 
to the year in which the funds are apportioned and shall be certified 
to by the Governor of the State and subject to approval by the 
Secretary. The annual apportionment to each State shall not be less 
than one-half of 1 percent of the total apportionment, except that the 
apportionment to the Secretary of the Interior on behalf of Indian 
tribes shall not be less than three-fourths of 1 percent of the total 
apportionment, and the apportionments to the Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands 
shall not be less than one-quarter of 1 percent of the total 
apportionment.
            ``(5) Contract authority.--The provisions contained in 
        section 402(d) of this chapter shall apply to this subsection.
            ``(6) Federal share.--The Federal share of the cost of a 
        project or program funded under this subsection shall be 80 
        percent.
            ``(7) Application in indian country.--
                    ``(A) Use of terms.--For the purpose of application 
                of this subsection in Indian country, the terms `State' 
                and `Governor of the State' include the Secretary of 
                the Interior and the term `political subdivisions of 
                the State' includes an Indian tribe.
                    ``(B) Indian country defined.--In this subsection, 
                the term `Indian country' means--
                            ``(i) all land within the limits of any 
                        Indian reservation under the jurisdiction of 
                        the United States, notwithstanding the issuance 
                        of any patent and including rights-of-way 
                        running through the reservation;
                            ``(ii) all dependent Indian communities 
                        within the borders of the United States, 
                        whether within the original or subsequently 
                        acquired territory thereof and whether within 
                        or without the limits of a State; and
                            ``(iii) all Indian allotments, the Indian 
                        titles to which have not been extinguished, 
                        including rights-of-way running through such 
                        allotments.''.
    (b) The item relating to section 407 in the analysis of chapter 4 
of title 23, United States Code, is amended to read as follows:

``407. Federal coordination and enhanced support of emergency medical 
                            services.''.

SEC. 2004. STATE TRAFFIC SAFETY INFORMATION SYSTEM IMPROVEMENTS.

    (a) Chapter 4 of title 23, United States Code, is amended by adding 
the following section:
``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. Recipient States may use 
                such grants only to implement such programs.
            ``(2) 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.
            ``(3) Maintenance of effort.--No grant may be made to a 
        State under this section in any fiscal year unless the State 
        enters into such agreements with the Secretary as the Secretary 
        may require 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 Act.
            ``(4) Federal share.--The Federal share of the cost of 
        adopting and implementing in a fiscal year a program of a State 
        pursuant to paragraph (1) shall not exceed 80 percent.
    ``(b) First-Year Grants.--
            ``(1) Eligibility.--To be eligible for a first-year grant 
        under this section in a fiscal year, a State must demonstrate 
        to the satisfaction of the Secretary that the State has--
                    ``(A) 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
                    ``(B) 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--
                            ``(i) specifies how existing deficiencies 
                        in the State's highway safety data and traffic 
                        records system were identified;
                            ``(ii) 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 under 
                        subsection (a)(1);
                            ``(iii) identifies performance-based 
                        measures by which progress toward those goals 
                        will be determined;
                            ``(iv) 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
                            ``(v) includes a current report on the 
                        progress in implementing the multiyear plan 
                        that documents progress toward the specified 
                        goals.
            ``(2) Grant amounts.--The amount of a first-year grant to a 
        State for a fiscal year 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 of this chapter for fiscal year 
                2003 bears to the funds apportioned to all States under 
                section 402 for fiscal year 2003;
        except that no State eligible for a grant under this section 
        shall receive less than $300,000.
    ``(c) Succeeding-Year Grants.--
            ``(1) Eligibility.--A State shall be eligible for a grant 
        under this subsection in a fiscal year succeeding the first 
        fiscal year in which the State receives a grant under 
        subsection (b) if the State, to the satisfaction of the 
        Secretary--
                    ``(A) submits an updated multiyear plan that meets 
                the requirements of subsection (b)(1)(B);
                    ``(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.
            ``(2) Grant amounts.--The amount of a succeeding year grant 
        made to a State for a fiscal year under this paragraph 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; except that no State eligible for 
                a grant under this paragraph shall receive less than 
                $500,000.
    ``(d) 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.
    ``(e) Applicability of Chapter 1.--The provisions contained in 
section 402(d) shall apply to this section.''.
    (b) The analysis of chapter 4 of title 23, United States Code, is 
amended by inserting the following at the end:

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

SEC. 2005. 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) for the National Highway Traffic Safety Administration:
            (1) Consolidated state highway safety programs.--
                    (A) To carry out the State and Community Highway 
                Safety Grant Program under section 402 of title 23, 
                United States Code, except for subsections (k) and (l), 
                $162,000,000 for fiscal year 2004, $167,000,000 for 
                fiscal year 2005, $172,000,000 for fiscal year 2006, 
                $177,000,000 for fiscal year 2007, $183,000,000 for 
                fiscal year 2008, and $189,000,000 for fiscal year 
                2009.
                    (B) To carry out the performance grant programs 
                under subsection (k) of section 402 of title 23, United 
                States Code, $175,000,000 for fiscal year 2004, 
                $179,000,000 for fiscal year 2005, $183,000,000 for 
                fiscal year 2006, $189,000,000 for fiscal year 2007, 
                $195,000,000 for fiscal year 2008, and $201,000,000 for 
                fiscal year 2009.
                    (C) To carry out the impaired driving grants under 
                subsection (l) of section 402 of title 23, United 
                States Code, $50,000,000 for each of fiscal years 2004 
                through 2009.
            (2) Highway safety research and development.--To carry out 
        the highway safety research and development program under 
        section 403 of title 23, United States Code, $88,452,000 for 
        fiscal year 2004, $90,000,000 for fiscal year 2005, $92,000,000 
        for fiscal year 2006, $94,000,000 for fiscal year 2007, 
        $96,000,000 for fiscal year 2008, and $99,000,000 for fiscal 
        year 2009.
            (3) Emergency medical services grants.--To carry out 
        section 407 of title 23, United States Code, $10,000,000 for 
        each of fiscal years 2004 through 2009.
            (4) State traffic safety information system improvements 
        grants.--To carry out section 412 of title 23, United States 
        Code, $50,000,000 for each of fiscal years 2004 through 2009.
            (5) National driver register.--To carry out chapter 303 
        (National Driver Register) of title 49, United States Code, 
        $3,600,000 for fiscal year 2004, and $4,000,000 for each of 
        fiscal years 2005 through 2009.
    (b) Allocations.--
            (1) Emergency medical services activities.--Out of amounts 
        appropriated pursuant to subsection (a)(2), the Secretary may 
        use $2,226,000 in each fiscal year to carry out paragraph (4) 
        of section 403(a) of title 23, United States Code.
            (2) International cooperation activities.--Out of amounts 
        appropriated pursuant to subsection (a)(2), the Secretary may 
        use $200,000 in each fiscal year to carry out paragraph (5) of 
        section 403(a) of title 23, United States Code.
            (3) National motor vehicle crash causation survey.--Out of 
        the amounts appropriated pursuant to subsection (a)(2), the 
        Secretary may use $10,000,000 in each fiscal year to carry out 
        paragraph (6) of section 403(a) of title 23, United States 
        Code.
    (c) Applicability of Title 23.--(1) Amounts made available under 
subsection (a)(2) shall be available for obligation in the same manner 
as if such funds were apportioned under chapter 1 of title 23, United 
States Code.
    (2) Notwithstanding section 402(d) of title 23, United States Code, 
the funds authorized by subsection (a)(1) that are apportioned or 
allocated in a State shall remain available for obligation in that 
State for a period of two years after the last day of the fiscal year 
for which the funds are authorized. Any amounts so apportioned or 
allocated that remain unobligated at the end of that period shall 
lapse.

SEC. 2006. REPEAL OF OBSOLETE PROVISIONS OF TITLE 23.

    (a) Repeal of Obsolete Provisions.--Sections 406 and 408 of title 
23, United States Code, are repealed.
    (b) Conforming Amendment.--The items relating to sections 406 and 
408 in the analysis of chapter 4 of title 23, United States Code, are 
deleted.

           TITLE III--FEDERAL TRANSIT ADMINISTRATION PROGRAMS

SEC. 3001. SHORT TITLE.

    This title may be cited as the ``Federal Public Transportation Act 
of 2003''.

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

    (a) Updated Terminology.--Chapter 53 of title 49, United States 
Code, including the chapter analysis, is amended by striking ``mass'' 
each place it appears before ``transportation'' and inserting 
``public'', except in sections 5301(f), 5302(a)(7), 5315, 5323(a)(1), 
and 5323(a)(1)(B).
    (b) Amendments to Title 49.--Except as otherwise specifically 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision of 
law, the reference shall be considered to be made to a section or other 
provision of title 49, United States Code.

SEC. 3003. POLICIES, FINDINGS, AND PURPOSES.

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

SEC. 3004. DEFINITIONS.

    (a) In General.--Section 5302 is amended to read as follows:
``Sec. 5302. Definitions
    ``(a) In General.--In this chapter, the following definitions 
apply:
            ``(1) `access to jobs project' means a project relating to 
        the development and maintenance of transportation services 
        designed to transport welfare recipients and 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;
                    ``(C) promoting the use of transit vouchers for 
                welfare recipients and 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.
            ``(1a) `capital project' means a project for--
                    ``(A) acquiring, constructing, supervising, or 
                inspecting equipment or a facility for use in public 
                transportation, expenses incidental to the acquisition 
                or construction (including designing, engineering, 
                location surveying, mapping, and acquiring rights-of-
                way), payments for the capital portions of rail 
                trackage rights agreements, transit-related intelligent 
                transportation systems, relocation assistance, 
                acquiring replacement housing sites, and acquiring, 
                constructing, relocating, and rehabilitating 
                replacement housing;
                    ``(B) rehabilitating a bus;
                    ``(C) remanufacturing a bus;
                    ``(D) overhauling rail rolling stock;
                    ``(E) preventive maintenance;
                    ``(F) leasing equipment or a facility for use in 
                public transportation, subject to regulations that the 
                Secretary prescribes limiting the leasing arrangements 
                to those that are more cost-effective than purchase or 
                construction;
                    ``(G) a public transportation improvement that 
                enhances economic development or incorporates private 
                investment, including commercial and residential 
                development, pedestrian and bicycle access to a public 
                transportation facility, and the renovation and 
                improvement of historic transportation facilities, 
                because the improvement enhances the effectiveness of a 
                public transportation project and is related physically 
                or functionally to that public transportation project, 
                or establishes new or enhanced coordination between 
                public transportation and other transportation, and 
                provides a fair share of revenue for public 
                transportation that will be used for public 
                transportation--
                            ``(i) including property acquisition, 
                        demolition of existing structures, site 
                        preparation, utilities, building foundations, 
                        walkways, open space, safety and security 
                        equipment and facilities (including lighting, 
                        surveillance and related intelligent 
                        transportation system applications), facilities 
                        that incorporate community services such as 
                        daycare or health care, and a capital project 
                        for, and improving, equipment or a facility for 
                        an intermodal transfer facility or 
                        transportation mall, except that a person 
                        making an agreement to occupy space in a 
                        facility under this subparagraph shall pay a 
                        reasonable share of the costs of the facility 
                        through rental payments and other means; and
                            ``(ii) excluding construction of a 
                        commercial revenue-producing facility or a part 
                        of a public facility not related to public 
                        transportation; and
                    ``(H) the introduction of new technology, through 
                innovative or improved products, into public 
                transportation;
                    ``(I) the provision of nonfixed route paratransit 
                transportation services in accordance with section 223 
                of the Americans with Disabilities Act of 1990, but 
                only for grant recipients that are in compliance with 
                applicable requirements of that Act, including both 
                fixed route and demand responsive service, and only for 
                amounts not to exceed 10 percent of such recipient's 
                annual formula apportionment under sections 5307 and 
                5311;
                    ``(J) 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; or
                                    ``(IV) security training for public 
                                transportation employees; but,
                            ``(ii) excluding all expenses related to 
                        operations, except for such expenses incurred 
                        in the provisions of activities under clauses 
                        (III) and (IV) of this subparagraph; or
                    ``(K) establishment of a debt service reserve made 
                up of deposits with a bondholders' trustee in a non-
                interest bearing account for the purpose of assuring 
                timely payment of principal and interest on bonds 
                issued by a grant recipient for purposes of financing 
                an eligible project under this chapter; and
                    ``(L) remediation associated with construction of a 
                capital project as described this paragraph on a 
                brownfield site as defined in 42 U.S.C. 9601.
            ``(2) `chief executive officer of a State' includes the 
        designee of the chief executive officer.
            ``(3) `emergency regulation' means a regulation--
                    ``(A) that is effective temporarily before the 
                expiration of the otherwise specified periods of time 
                for public notice and comment under section 5334(c); 
                and
                    ``(B) prescribed by the Secretary as the result of 
                a finding that a delay in the effective date of the 
                regulation--
                            ``(i) would injure seriously an important 
                        public interest;
                            ``(ii) would frustrate substantially 
                        legislative policy and intent; or
                            ``(iii) would damage seriously a person or 
                        class without serving an important public 
                        interest.
            ``(4) `fixed guideway' means a public transportation 
        facility--
                    ``(A) using and occupying a separate right-of-way 
                or rail for the exclusive use of public transportation 
                and other high occupancy vehicles; or -
                    ``(B) using a fixed catenary system and a right-of-
                way usable by other forms of transportation.
            ``(5) `individual with a disability' means an individual 
        who, because of illness, injury, age, congenital malfunction, 
        or other incapacity or temporary or permanent disability 
        (including an individual who is a wheelchair user or has 
        semiambulatory capability), cannot use effectively, without 
        special facilities, planning, or design, public transportation 
        service or a public transportation facility.
            ``(6) `local governmental authority' includes--
                    ``(A) a political subdivision of a State;
                    ``(B) an authority of at least 1 State or political 
                subdivision of a State;
                    ``(C) an Indian tribe; and
                    ``(D) a public corporation, board, or commission 
                established under the laws of a State.
             ``(7) `mass transportation' means public transportation.
            ``(7a) `mobility management' means an activity or project 
        that involves one or more of the following goals:
                    ``(A) Addressing public transportation customer 
                needs.
                    ``(B) Tailoring public transportation services to 
                specific market niches.
                    ``(C) Managing public transportation demand.
                    ``(D) Land use compatibility with public 
                transportation services.
                    ``(E) Improving coordination among public 
                transportation providers and other transportation 
                service providers.
            ``(8) `net project cost' means the part of a project that 
        reasonably cannot be financed from revenues.
            ``(9) `new bus model' means a bus model (including a model 
        using alternative fuel)--
                    ``(A) that has not been used in public 
                transportation in the United States before the date of 
                production of the model; or
                    ``(B) used in public transportation in the United 
                States, but being produced with a major change in 
                configuration or components.
            ``(10) `public transportation' means transportation by a 
        conveyance that provides regular and continuing general or 
        special transportation to the public, but does not include 
        school bus, charter, or sightseeing transportation.
            ``(10a) `recipient' means an entity that receives Federal 
        transit program assistance directly from the Federal 
        government.
            ``(11) `regulation' means any part of a statement of 
        general or particular applicability of the Secretary designed 
        to carry out, interpret, or prescribe law or policy in carrying 
        out this chapter.
            ``(11a) `reverse commute project' means a public 
        transportation project designed to transport residents of urban 
        areas, urbanized areas, and areas 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 urban areas, urbanized areas, and areas 
                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.
            ``(12) `Secretary' means the Secretary of Transportation.
            ``(13) `State' means a State of the United States, the 
        District of Columbia, Puerto Rico, the Northern Mariana 
        Islands, Guam, American Samoa, and the Virgin Islands, except 
        as defined in section 5305 of this title.
            ``(13a) `subrecipient' means an entity that receives 
        Federal transit program assistance indirectly through a 
        recipient, rather than directly from the Federal government.
            ``(14) `transit' means public transportation.
            ``(15) `transit enhancement' means, with respect to any 
        project or an area to be served by a project, projects that are 
        designed to enhance public transportation service or use and 
        that are physically or functionally related to transit 
        facilities. Eligible projects are--
                    ``(A) historic preservation, rehabilitation, or 
                operation of historic public transportation buildings, 
                structures, or facilities (including historic bus or 
                railroad facilities);
                    ``(B) bus shelters;
                    ``(C) landscaping and other scenic beautification, 
                including tables, benches, trash receptacles, and 
                street lights;
                    ``(D) public art;
                    ``(E) pedestrian access or walkways;
                    ``(F) bicycle access, including bicycle storage 
                facilities and installing equipment for transporting 
                bicycles on public transportation vehicles;
                    ``(G) transit connections to parks within the 
                recipient's transit service area;
                    ``(H) signage; and
                    ``(I) enhanced access for individuals with 
                disabilities to public transportation.
            ``(16) [reserved]
            ``(17) `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.
            ``(18) `welfare recipient' means an individual who receives 
        or received aid or assistance under a State or tribal program 
        funded under part A of title IV of the Social Security Act 
        (whether in effect before or after the effective date of the 
        amendments made by title I of the Personal Responsibility and 
        Work Opportunity Reconciliation Act of 1996 (Public Law 104-
        193; 110 Stat. 2110)) at any time during the 3-year period 
        before the date on which the applicant applies for a grant 
        under this section.
    ``(b) Authority To Modify `Individual With a Disability'.--The 
Secretary may by regulation modify the definition of the term 
`individual with a disability' in subsection (a)(5) as it applies to 
section 5307(d)(1)(D).''.
    (b) Conforming Amendment.--Section 5321 is repealed.

SEC. 3005. METROPOLITAN PLANNING.

    The text of section 5303 is amended to read as follows: ``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 of this title.''.

SEC. 3006. STATEWIDE PLANNING.

    (a) Section Heading.--Section 5304 is amended by striking the 
section heading and inserting the following:
``Sec. 5304. Statewide planning''.
    (b) The text of section 5304 is amended to read as follows: 
``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 of this title.''.
    (c) Conforming Amendment.--The item relating to section 5304 in the 
table of sections for chapter 53 is amended to read as follows:

``5304. Statewide planning.''.

SEC. 3007. PLANNING PROGRAMS.

    (a) In General.--Section 5305 is amended to read as follows:
``Sec. 5305. Planning programs
    ``(a) Definitions.--In this section the following definitions 
apply:
            ``(1) `State' means a State of the United States, the 
        District of Columbia, and Puerto Rico, and
            ``(2) `planning emphasis area' means priority themes 
        identified by the Secretary for consideration in sections 5303 
        and 5304 of this title.
    ``(b) General Authority.--Under criteria the Secretary establishes, 
the Secretary may make grants to States, authorities of the States, 
metropolitan planning organizations, and local governmental 
authorities, or may make agreements with other departments, agencies, 
and instrumentalities of the Government, or may enter into contracts 
with private non-profit or for-profit entities for development of, 
transportation plans and programs and to plan, engineer, design, and 
evaluate a public transportation project and for other technical 
studies, including--
            ``(1) studies related to management, planning, operations, 
        capital requirements, and economic feasibility;
            ``(2) evaluating previously financed projects;
            ``(3) 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; and,
             ``(4) 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 
of this title to carry out this section and sections 5303 and 5304 of 
this title 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) The Secretary shall apportion 80 percent of the 
        amount made available under subsection (h)(2)(A) of this 
        section to States to carry out sections 5303 and 5306 of this 
        title in a ratio equal to the population in urbanized areas in 
        each State divided by the total population in urbanized areas 
        in all States, as shown by the latest available decennial 
        census of population. A State may not receive less than .5 
        percent of the amount apportioned under this paragraph.
            ``(2) Amounts apportioned to a State under paragraph (1) of 
        this subsection shall be made available promptly after 
        allocation to metropolitan planning organizations in the State 
        designated under this section under a formula--
                    ``(A) the State develops in cooperation with the 
                metropolitan planning organizations;
                    ``(B) the Secretary of Transportation approves; and
                    ``(C) that considers population in urbanized areas 
                and provides an appropriate distribution for urbanized 
                areas to carry out the cooperative processes described 
                in this section.
            ``(3) The Secretary shall apportion 20 percent of the 
        amount made available under subsection (h)(2)(A) of this 
        section to States to supplement allocations made under 
        paragraph (1) of this subsection for metropolitan planning 
        organizations. Amounts under this paragraph shall be allocated 
        under a formula that reflects the additional cost of carrying 
        out planning, programming, and project selection 
        responsibilities under sections 5303 and 5306 of this title in 
        complex metropolitan planning areas.
    ``(e) State Planning and Research Program.--
            ``(1) The amounts made available pursuant to subsection 
        (h)(2)(B) of this section shall be apportioned to States for 
        grants and contracts to carry out sections 5303-5306, 5315, and 
        5322 of this title. The amounts shall be apportioned so that 
        each State receives an amount equal to the population in 
        urbanized areas in the State, divided by the population in 
        urbanized areas in all States, as shown by the latest available 
        decennial census. However, a State must receive at least .5 
        percent of the amount apportioned under this subsection.
            ``(2) A State, as the State considers appropriate, may 
        authorize part of the amount made available under this 
        subsection to be used to supplement amounts available under 
        subsection (d) of this section.
    ``(f) Planning Capacity Building Program.--
            ``(1) The Secretary shall establish a Planning Capacity 
        Building Program to support and fund innovative practices and 
        enhancements in transportation planning. The purpose of this 
        program shall be to promote activities that support and 
        strengthen the planning processes required under this section 
        and sections 5303 and 5304 of this chapter.
            ``(2) Funding available under subsection (h)(1) of this 
        section to carry out this subsection will support--
                    ``(A) incentive grants to state, metropolitan 
                planning organizations, and public transportation 
                operators; and
                    ``(B) research, information dissemination, and 
                technical assistance.
            ``(3) The Secretary may use the funds for the purpose 
        described in paragraph (2)(B) independently or make grants to, 
        or enter into contracts, cooperative agreements, and other 
        transactions, with a Federal agency, State agency, local 
        governmental authority, association, nonprofit or for-profit 
        entity, or institution of higher education, to carry out the 
        purposes of this subsection.
            ``(4) The program shall be administered by the Federal 
        Transit Administration in cooperation with the Federal Highway 
        Administration.
    ``(g) Government's Share of Costs.--
            ``(1) Amounts made available to carry out subsections (d), 
        (e) and (f) of this section may not exceed 80 percent of the 
        costs of the activity unless the Secretary of Transportation 
        decides it is in the interests of the Government not to require 
        a State or local match.
            ``(2) When there are planning emphasis areas funded under a 
        grant or contract financed under this section, the Secretary 
        may establish a Government share consistent with the planning 
        emphasis area benefit.
    ``(h) Allocation of Funds.--Of the funds made available by or 
appropriated to carry out this section under section 5338(a)(2)(A) and 
(B) and 5338(b)(3)(A) and (B) of this title for fiscal years 2004 
through 2009,
            ``(1) $5,000,000 shall be available for the planning 
        capacity building program under subsection (f) of this section; 
        and
            ``(2) of the remaining amount,
                    ``(A) 82.72 percent shall be available for 
                metropolitan planning program under subsection (d) of 
                this section; and
                    ``(B) 17.28 percent shall be available to carry out 
                subsections (b) and (e) of this section.
    ``(i) Availability of Amounts.--An amount apportioned under this 
section that remains available for 3 years after the fiscal year in 
which the amount is apportioned shall be reapportioned among the 
States.''.
    (b) Conforming Amendment.--The item relating to section 5305 in the 
table of sections for chapter 53 is amended to read as follows:

``5305.  Planning programs.''.

SEC. 3008. 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 metropolitan planning 
              and statewide planning''.
    (b) Conforming Amendment.--The item relating to section 5306 in the 
table of sections for chapter 53 is amended to read as follows:

``5306.  Private enterprise participation in metropolitan planning and 
                            statewide planning.''.

SEC. 3009. URBANIZED AREA PUBLIC TRANSPORTATION FORMULA GRANTS PROGRAM.

    (a) Section Heading.--Section 5307 is amended by striking the 
section heading and inserting the following:
``Sec. 5307.  Urbanized area public transportation formula grants 
              program''.
    (b) Technical Amendments.--Section 5307 is amended by--
            (1) striking subsections (h), (j) and (k); and
            (2) redesignating subsections (i), (l), (m), and (n) as 
        subsections (h), (i), (j), and (k), respectively.
    (c) Definitions.--Section 5307(a) is amended to read as follows:
    ``(a) Definitions.--In this section:
            ``(1) `designated recipient' means--
                    ``(A) an entity designated, consistent with the 
                planning process under sections 5303-5306 of this 
                title, by the chief executive officer of a State, 
                responsible local officials, and publicly owned 
                operators of public transportation to receive and 
                apportion amounts under sections 5336 and 5337 of this 
                title that are attributable to transportation 
                management areas established under section 5303 of this 
                title; or
                    ``(B) a State or regional authority if the 
                authority is responsible under the laws of a State for 
                a capital project and for financing and directly 
                providing public transportation.
            ``(2) `subrecipient' means a State or local governmental 
        authority, a nonprofit organization, or a private operator of 
        public transportation service that may receive a Federal 
        transit program grant indirectly through a recipient, rather 
        than directly from the Federal government.''.
    (d) General Authority.--Section 5307(b) is amended--
            (1) by striking paragraph (1) and inserting a new paragraph 
        (1) as follows:
            ``(1) The Secretary of Transportation may make grants under 
        this section for--
                    ``(A) capital projects;
                    ``(B) planning and mobility management;
                    ``(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) by striking paragraphs (2) and (4);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) in redesignated paragraph (2), by striking ``5305(a)'' 
        and inserting ``5303''.
    (e) Grant Recipient Requirements.--Section 5307(d) is amended--
            (1) in paragraph (1)(A), by inserting ``, including safety 
        and security aspects of the program'' after ``capacity'';
            (2) in paragraph (1)(E), by striking everything that 
        appears after ``section'' and inserting ``the recipient will 
        comply with section 5323 and 5325 of this title'';
            (3) in paragraph (1)(H), by striking ``5310(a)-(d)'';
            (4) by striking paragraph (1)(I);
            (5) by redesignating paragraph (1)(J) as paragraph (1)(I); 
        and
            (6) by adding at the end of subsection (f)(1), as 
        redesignated, the following:
                    ``(J) with a population of at least 200,000 in its 
                urbanized area will expend one percent of the amount 
                the recipient receives each fiscal year under this 
                section for transit enhancement activities described in 
                section 5302(a)(15) of this title.''.
    (f) Government's Share of Costs.--Section 5307(e), is amended--
            (1) in the first sentence, by striking ``(including 
        associated capital maintenance items)''; and
            (2) in the fourth sentence, by striking ``that are more 
        than the amount of those revenues in the fiscal year that ended 
        September 30, 1985'' and inserting ``and amounts received under 
        a service agreement with a State or local social service agency 
        or a private social service organization''.
    (g) Undertaking Projects in Advance.--Section 5307(g) is amended by 
striking paragraph (4).
    (h) Reviews, Audits, and Evaluations.--Section 5307(h), as 
redesignated, is amended in paragraph (1) (A) by striking ``shall'' and 
inserting ``may''.
    (i) Relationship to Other Laws.--Section 5307(k), as redesignated, 
is amended to read as follows:
    ``(k)(1) Sections 5301, 5302, 5303, 5304, 5306, 5315(c), 5318, 
5319, 5323, 5325, 5327, 5329, 5330, 5331, 5332, 5333 and 5335'' of this 
title apply to this section and to a grant made under this section. 
Except as provided in this section, no other provision of this chapter 
applies to this section or to a grant made under this section.
    ``(2) The provision of assistance under this chapter shall not be 
construed as bringing within the application of chapter 15, title 5, 
U.S.C., any nonsupervisory employee of a public transportation system 
(or any other agency or entity performing related functions) to which 
such chapter is otherwise inapplicable.''.
    (j) Conforming Amendments.--
            (1) The item relating to section 5307 in the table of 
        sections for chapter 53 is amended to read as follows:

``5307. Urbanized area public transportation formula grants program.''.
            (2) Section 3037 of the Transportation Equity Act for the 
        21st Century, Public Law 105-178, as amended, is repealed.

SEC. 3010. FORMULA GRANTS FOR OTHER THAN URBANIZED AREAS.

    (a) Definitions.--Section 5311(a) is amended to read as follows:--
    ``(a) Definitions.--In this section--
            ``(1) `recipient' means a State that receives a Federal 
        transit program grant directly from the Federal government.
            ``(2) `subrecipient' means a State or local governmental 
        authority, a nonprofit organization, or a private operator of 
        public transportation service that may receive a Federal 
        transit program grant indirectly through a recipient, rather 
        than directly from the Federal government.''.
    (b) General Authority.--Section 5311(b) is amended--
            (1) by revising paragraph (1) to read as follows:
            ``(1) Except as provided in paragraph (2) of this 
        subsection, the Secretary may make grants to areas 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; and
                    ``(C) the acquisition of public transportation 
                services.'';
            (2) by redesignating paragraph (2) as paragraph (3) and 
        inserting a new paragraph (2), as follows:
            ``(2) A project eligible for a grant under this section 
        shall be included in a State program for public transportation 
        service projects, including agreements with private providers 
        of public transportation service. The program shall be 
        submitted annually to the Secretary. 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) In paragraph (3), as redesignated, by inserting ``use 
        not more than 2 percent of the amount made available to carry 
        out this section to'' before ``make''; and
            (4) by adding after paragraph (3) the following:
            ``(4) Of the amount available to carry out paragraph (3), 
        not more than 15 percent may be used to carry out projects of a 
        national scope, with the remaining balance provided to the 
        States.''.
    (c) Apportioning Amounts.--Subsection (c) is amended to read as 
follows:
    ``(c) Apportionments.--
            ``(1) The amounts made available under section 
        5338(a)(2)(K) shall be apportioned as follows:
                    ``(A) For each eligible State in accordance with 
                paragraph (2) of this subsection:
                            ``(i) $2,500,000 in fiscal year 2004.
                            ``(ii) Three percent in fiscal year 2005.
                            ``(iii) Five percent in fiscal year 2006.
                            ``(iv) Seven percent in fiscal year 2007.
                            ``(v) Nine percent in fiscal year 2008.
                            ``(vi) Ten percent in every fiscal year 
                        thereafter.
                    ``(B) Remaining amounts shall be apportioned to 
                each State in accordance with paragraph (3) of this 
                subsection.
            ``(2)(A) Of the amounts to be apportioned under paragraph 
        (1)(A) of this subsection, the Secretary may use the following 
        amounts to make grants to establish data collection systems 
        capable of collecting the data in subparagraph (C) of this 
        paragraph:
                    ``(i) 100 percent in fiscal year 2004.
                    ``(ii) $1,500,000 in fiscal year 2005.
                    ``(iii) $500,000 in fiscal year 2006.
            ``(B) Amounts under subparagraph (A) of this paragraph not 
        obligated within three years following the end of the fiscal 
        year in which those amounts became available shall be available 
        for apportionment under subparagraph (C) of this paragraph.
            ``(C) The remaining amounts to be apportioned under 
        paragraph (1)(A) of this subsection shall be apportioned by a 
        formula determined by the Secretary that distributes funds 
        based on increases in public transportation patronage in other-
        than-urbanized areas.
            ``(D) In apportioning funds under subparagraph (C) of this 
        paragraph, the Secretary may consider the efficiency of service 
        provision in the non-urbanized areas in the State.
            ``(3) Each State shall receive an amount equal to the 
        remaining amount apportioned multiplied by a ratio equal to the 
        population of areas other than urbanized areas in a State 
        divided by the population of all areas other than urbanized 
        areas in the United States, as shown by the most recent Federal 
        government decennial census of population.''.
    (d) Use for Administrative, Planning, and Technical Assistance.--
Section 5311(e) is amended by striking--
            (1) ``Use for administration and technical assistance. 
        (1)'' and inserting ``Use for administration, planning, and 
        technical assistance.''; and
            (2) ``to a recipient'' after ``technical assistance''; and
            (3) paragraph (2).
    (e) Intercity Bus Transportation.--Section 5311(f) is amended--
            (1) in paragraph (1), by striking ``after September 30, 
        1993,''; and
            (2) by inserting at the beginning of paragraph (2) ``After 
        consultation with affected intercity bus service providers,''.
    (f) Government's Share of Costs.--Section 5311(g) is amended to 
read as follows:
    ``(g) Government's Share of Costs.--
            ``(1) 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. 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. 
        The remainder--
                    ``(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 
                Federal government (other than the Department of 
                Transportation, except for Federal Land Highway funds) 
                that are eligible to be expended for transportation.
            ``(2) 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.
            ``(3) For purposes of paragraph (2)(B) of this section, the 
        prohibitions on the use of funds for matching requirements 
        under section 403(a)(5)(c)(vii) of the Social Security Act 
        shall not apply to federal or state funds to be used for 
        transportation purposes.''.
    (g) Indian Reservation Rural Transit Program.--Section 5311(h) is 
amended to read as follows:
    ``(h) Indian Reservation Rural Transit Program.--
            ``(1) In this subsection, the term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(2)(A) The Secretary shall establish and carry out 
        through the States a program to provide grants to Indian tribes 
        to operate, maintain, and establish rural transit programs on 
        reservations or other land under the jurisdiction of the Indian 
        tribes.
            ``(B) The state may waive or reduce the amount of local 
        share required for these grants.
            ``(3) Notwithstanding any other provision of law, for each 
        fiscal year, of the amount made available to carry out this 
        section under section 5338(a)(2)(K) for the fiscal year, the 
        Secretary shall make available $10,000,000 to carry out this 
        subsection.
            ``(4) Of the funds made available pursuant to paragraph (3) 
        of this subsection,
                    ``(A) $9,500,000 shall be apportioned to the states 
                based on a ratio equal to the tribal population in each 
                state divided by the total tribal population in all 
                states, as shown by the latest decennial census of 
                population for allocation to existing Indian tribal 
                rural transit programs and to plan and establish new 
                Indian tribe rural transit programs;
                    ``(B) prior to distribution by states of in-state 
                amounts to Indian tribes, each State may use up to 5 
                percent for state administration;
                    ``(C) amounts apportioned to a state under 
                paragraph (A) of this subsection shall be distributed 
                to Indian tribes in the state based on an allocation 
                plan--
                            ``(i) the state develops in cooperation 
                        with Indian tribes;
                            ``(ii) the Secretary approves; and
                            ``(iii) that provides an appropriate 
                        distribution for funding the needs of existing 
                        and new Indian Reservation Rural Transit 
                        Systems; and
                    ``(D) $500,000 shall be available to the Secretary 
                to provide technical assistance, including best 
                practices and outreach, to the states and tribes 
                through grants, contracts, or other arrangements and 
                shall be in addition to and not in lieu of other funds 
                available for these purposes.
            ``(5) An amount apportioned to the states under this 
        subsection--
                    ``(A) remains available for 3 years after the 
                fiscal year in which the amount was apportioned; and
                    ``(B) shall be reapportioned among the states if 
                unobligated at the end of the 3-year period.''.
    (h) Relationship to Other Laws.--Section 5311(j) is amended to read 
as follows:
    ``(j) Relationship to Other Laws.--
            ``(1) Except as provided in subparagraphs (2) and (3) of 
        this subsection, a grant under this section is subject to the 
        requirements of 5307 to the extent the Secretary considers 
        appropriate.
            ``(2) Sections 5323(a)(1)(D) and 5333(b) of this title 
        shall apply, provided that the Secretary of Labor shall utilize 
        a Special Warranty that provides a fair and equitable 
        arrangement to protect the interest of employees.
            ``(3) The Secretary may waive the applicability of the 
        Special Warranty under paragraph (2) for private non-profit 
        subrecipients on a case-by-case basis as the Secretary deems 
        appropriate.
            ``(4) This subsection does not affect or discharge a 
        responsibility of the Secretary under a law of the United 
        States.''.

SEC. 3011. NEW FREEDOM PROGRAM.

    (a) Chapter 53 of title 49, United States Code, is amended by 
inserting after section 5316 the following:
``Sec. 5317. New Freedom program
    ``(a) Definitions.--In this section--
            ``(1) `recipient' means a State that receives a grant under 
        this section directly.
            ``(2) `subrecipient' means a State or local governmental 
        authority, a nonprofit organization, or a private operator of 
        public transportation service that may receive a grant under 
        this section indirectly through a recipient, rather than 
        directly from the Federal government.''.
    ``(b) General Authority.--
            ``(1) The Secretary of Transportation may provide grants to 
        recipients for new transportation services and transportation 
        alternatives beyond those required by the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), including 
        motor vehicle programs that assist persons with disabilities 
        with transportation to and from jobs and employment support 
        services.
            ``(2) A recipient may use not more than 15 percent of the 
        amounts apportioned under this section to administer, plan, and 
        provide technical assistance for a project funded under this 
        section.
    ``(c) Apportionments.--
            ``(1) The Secretary shall apportion amounts made available 
        under section 5338(a)(2)(H) of this title under a formula the 
        Secretary administers.
            ``(2) The recipient may transfer any funds apportioned to 
        it under this subsection to sections 5311(c) or 5336. Any funds 
        transferred pursuant to this subsection shall be made available 
        only for eligible projects selected under this section.
    ``(d) Grant Requirements.--
            ``(1) Except as provided in paragraphs (2) and (3) of this 
        subsection, a grant under this section is subject to the 
        requirements of 5307 to the extent the Secretary considers 
        appropriate.
            ``(2) Section 5333(b) of this title shall apply, provided 
        that the Secretary of Labor shall utilize a Special Warranty 
        that provides a fair and equitable arrangement to protect the 
        interest of employees.
            ``(3) The Secretary may waive the applicability of the 
        Special Warranty under paragraph (2) for private non-profit 
        subrecipients on a case-by-case basis as the Secretary deems 
        appropriate.
            ``(4) 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) Competitive Process.--
            ``(1) The recipient shall conduct a statewide solicitation 
        for applications for grants under this section.
            ``(2) Subrecipients seeking to receive a grant under this 
        section shall submit to the recipient an application in the 
        form and in accordance with such requirements as the recipient 
        shall establish.
            ``(3) Subrecipients submitting applications pursuant to 
        paragraph (2) shall be selected on a competitive basis.
    ``(f) Coordination.--
            ``(1) The Secretary shall coordinate activities under this 
        section with related activities under programs of other Federal 
        departments and agencies.
            ``(2) A recipient that transfers funds to section 5336 
        pursuant to subsection (c)(2) shall certify that the project 
        for which the funds are requested has been coordinated with 
        private non-profit providers of services under this section.
            ``(3) A recipient of funds under this section shall certify 
        that--
                    ``(A) the projects selected were derived from a 
                locally developed, coordinated public transit-human 
                services transportation plan; and
                    ``(B) the plan was developed through a process that 
                included representatives of public, private, and 
                nonprofit transportation and human services providers 
                and participation by the public;
    ``(g) Government's Share of Costs.--
            ``(1) 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. 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. 
        The remainder may be--
                    ``(A) 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) derived from amounts appropriated to or made 
                available to a department or agency of the Federal 
                government (other than the Department of 
                Transportation, except for Federal Land Highway funds) 
                that are eligible to be expended for transportation.
            ``(2) 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.
            ``(3) For purposes of paragraph (1)(B) of this section, the 
        prohibitions on the use of funds for matching requirements 
        under section 403(a)(5)(c)(vii) of the Social Security Act 
        shall not apply to federal or state funds to be used for 
        transportation purposes.''.
    (b) Conforming Amendment.--The table of sections for chapter 53 is 
amended after the item relating to section 5316 by adding the 
following:

``5317. New Freedom program.''.

SEC. 3012. MAJOR CAPITAL INVESTMENT PROGRAM.

    (a) Major Capital Investment Program.--Section 5309 is amended to 
reads as follows:
``Sec. 5309. Major capital investment grants
    ``(a) General Authority.--
            ``(1) The Secretary of Transportation may make grants under 
        this section to State and local governmental authorities to 
        assist them and their subrecipients in financing capital 
        projects for--
                    ``(A) new fixed guideway systems, extensions to 
                existing fixed guideway systems, and related project 
                activities;
                    ``(B) the capital costs of coordinating public 
                transportation with other transportation;
                    ``(C) the introduction of new technology, through 
                innovative or improved products, into public 
                transportation; or
                    ``(D) the development of corridors to support 
                public transportation, including protecting rights of 
                way through acquisition, construction of dedicated bus 
                and high occupancy vehicle lanes or park and ride lots, 
                or other capital improvements that the Secretary may 
                decide would result in increased public transportation 
                usage in the corridor.
            ``(2) The Secretary shall require that a grant under this 
        subsection be subject to the terms, conditions, requirements, 
        and provisions the Secretary decides are necessary or 
        appropriate for the 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.
    ``(b) Project as Part of Approved Program of Projects.--
            ``(1) The Secretary may not approve a grant for a project 
        under this section unless the Secretary finds that the project 
        is part of an approved transportation plan and program of 
        projects required under sections 5303-5306 of this title, and 
        that the applicant has or will have the legal, financial, and 
        technical capacity to carry out the project (including safety 
        and security aspects of the project), satisfactory continuing 
        control over the use of the equipment or facilities, and the 
        capability and willingness to maintain the equipment or 
        facilities.
            ``(2) An applicant that has submitted a certification 
        required by section 5307(d)(1) (A)-(C) and (H) of this title 
        shall provide sufficient information upon which the Secretary 
        can make the findings required by this subsection.
    ``(c) Criteria for Major Capital Investment Grants of $75,000,000 
or More.--
            ``(1) 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 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 and has been rated as `medium,' 
        `medium-high,' or `high,' as defined in this subsection.
            ``(2) The Secretary may approve a grant under this section 
        for a major capital project only if the Secretary makes the 
        following determinations, based upon evaluations and 
        considerations as set forth below:
                    ``(A) The Secretary may approve a grant under this 
                section for a major capital project only if the 
                Secretary determines that the proposed project is--
                            ``(i) based on the results of an 
                        alternatives analysis and preliminary 
                        engineering;
                            ``(ii) justified based on a comprehensive 
                        review of its mobility improvements, 
                        environmental benefits, cost effectiveness, 
                        operating efficiencies, transit supportive 
                        policies and existing land use; and
                            ``(iii) supported by an acceptable degree 
                        of local financial commitment, including 
                        evidence of stable and dependable financing 
                        sources to construct the project, and maintain, 
                        and operate the entire public transportation 
                        system.
                    ``(B) Before making the determinations required by 
                paragraph (2)(A), the Secretary shall first analyze, 
                evaluate, and consider the following factors:
                            ``(i) In evaluating a project for purposes 
                        of making the finding required by paragraph 
                        (2)(A)(i), the Secretary shall analyze and 
                        consider the results of the alternatives 
                        analysis and preliminary engineering for the 
                        project.
                            ``(ii) In evaluating a project for purposes 
                        of making the finding required by paragraph 
                        (2)(A)(ii), 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.
                            ``(iii) In evaluating a project under 
                        paragraph (2)(A)(iii), 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.
                            ``(iv) In assessing the stability, 
                        reliability, and availability of proposed 
                        sources of local financing under paragraph 
                        (2)(A)(iii), the Secretary shall consider--
                                    ``(I) existing grant commitments;
                                    ``(II) the degree to which 
                                financing sources are dedicated to the 
                                purposes propose;
                                    ``(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.
            ``(3) A proposed project 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 
        `high,' `medium-high,' `medium,' `low-medium,' or `low,' 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.
    ``(d) Criteria for Major Capital Investment Grants Less Than 
$75,000,000.--If the assistance provided under this section is less 
than $75,000,000, the project shall be subject to the requirements set 
forth in subsection (c) of this section only to the extent the 
Secretary determines appropriate.
    ``(e) Previously Issued Letter of Intent or Full Funding Grant 
Agreement.--Subsections (c) and (d) of this section 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 2003.
    ``(f) Letters of Intent, Full Funding Grant Agreements, and Early 
Systems Work Agreements.--
            ``(1)(A) The Secretary may issue a letter of intent to an 
        applicant announcing an intention to obligate, for a major 
        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) At least 30 days before issuing a letter under 
        subparagraph (A) of this paragraph 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 Banking, Housing, and 
Urban Affairs of the Senate and the House and Senate Committees on 
Appropriations 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) 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, U.S.C., or an administrative commitment.
            ``(D) An obligation or administrative commitment may be 
        made only when amounts are appropriated.
            ``(2)(A) The Secretary may make 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 law of the United 
                States.
            ``(B) 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. 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)(A) 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) 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. A work 
        agreement shall cover the period of time the Secretary 
        considers appropriate. The period may extend beyond the period 
        of current authorization. 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. 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)(A) 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 may 
        be not more than the greater of the amount authorized under 
        section 5338(b) of this title for major capital investment 
        projects or an amount equivalent to the last 3 fiscal years of 
        funding authorized under section 5338(b)(3)(C) for major 
        capital investment projects, 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 and early systems work agreements may be not 
        more than a limitation specified in law.
            ``(B) 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, Public Law 102-240, as 
        amended, 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.
    ``(g) Government's Share of Net Project Cost.--
            ``(1) 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 50 percent of the 
        net capital project cost, unless the grant recipient requests a 
        lower grant percentage.
            ``(2) The remainder--
                    ``(A) shall be from an undistributed cash surplus, 
                a replacement or depreciation cash fund or reserve, or 
                new capital; and
                    ``(B) may include up to 30 percent from amounts 
                appropriated to or made available to a department or 
                agency of the Federal Government that are eligible to 
                be expended for transportation.
            ``(3) In addition to amounts allowed pursuant to paragraph 
        (1) of this subsection, 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.
            ``(4) The prohibitions on the use of funds for matching 
        requirements under section 403(a)(5)(C)(vii) of the Social 
        Security Act shall not apply to amounts allowed pursuant to 
        paragraph (2) of this subsection.
            ``(5) This subsection does not apply to projects for which 
        the Secretary of Transportation 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 2003.
    ``(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) of this section, the 
Secretary may also give consideration to `high,' `medium-high,' or 
`medium' projects sponsored by grant applicants and State and local 
governments of constrained fiscal capacity in selecting projects for 
full funding grant agreements.
    ``(i) Preliminary Engineering.--Not more than 8 percent of the 
amounts made available in each fiscal year to carry out this section 
may be available for preliminary engineering.
    ``(j) Undertaking Projects in Advance.--
            ``(1) 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) 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. 
        However, 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. 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) The Secretary shall consider changes in capital 
        project cost indices when determining the estimated cost under 
        paragraph (2) of this subsection.
    ``(k) Use of Deobligated Amounts.--An amount available under this 
section that is deobligated may be used for any purpose under this 
section.
    ``(l) Reports.--
            ``(1) 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, as well as the Subcommittee on 
        Transportation of the Committees on Appropriations of both 
        Houses, a report that may include--
                    ``(A) an allocation of amounts to be available to 
                finance grants for capital investment projects among 
                applicants for these amounts;
                    ``(B) an assessment 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
                    ``(C) detailed ratings and evaluations on each 
                project listed.
            ``(2) The Secretary shall submit a report to Congress on 
        the first Monday in February, the first Monday in June, and the 
        first Monday in October each year that includes--
                    ``(A) a summary of the ratings of all applicant's 
                capital investment projects;
                    ``(B) detailed ratings and evaluations on each 
                applicant project with significant changes to the 
                finance or project proposal or has completed 
                alternatives or preliminary engineering since the date 
                of the last report; and
                    ``(C) all relevant information that support the 
                evaluation and rating of each updated project, 
                including a summary of each updated project's financial 
                plan.
    ``(m) Project Defined.--In this section, the term `major capital 
investment project' with respect to a new fixed guideway system or 
extension to an existing fixed guideway system, means a minimum 
operable segment of the project.''.

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

    (a) In General.--Section 5312 is amended--
            (1) in subsection (a)--
                    (A) by striking ``or contracts'' and inserting ``, 
                contracts, cooperative agreements, or other 
                transactions'';
                    (B) by striking ``help reduce urban transportation 
                needs,'';
                    (C) by striking ``urban'' each place it appears; 
                and
                    (D) by striking ``and demonstration projects 
                related'' 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 (b) and 
        (c), respectively.
            (4) in subsection (b)(2), as redesignated, by striking 
        ``other agreements'' and inserting ``other transactions'';
            (5) in subsection (b)(3), as redesignated, by striking 
        ``50'' and inserting ``80'';
            (6) in subsection (b)(4), by adding the following sentence 
        at the end: ``The evaluation criteria shall include 
        consideration of a share of consortium contributions to the 
        overall research costs.'';
            (7) in subsection (c)(2), as redesignated, by striking 
        ``and'' and inserting ``or'' before ``private''; and
            (8) in subsections (b)(5) and (c)(3), as redesignated, by 
        striking ``within the Mass Transit Account of the Highway Trust 
        Fund''.
    (b) Conforming Amendments.--
            (1) Section 5312 is amended by striking the section heading 
        and inserting the following:
``Sec. 5312. Research, development, demonstration, and deployment 
              projects''.
            (2) The item relating to section 5312 in the table of 
        sections is amended to read as follows:

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

SEC. 3014. COOPERATIVE RESEARCH GRANT PROGRAM.

    (a) In General.--Section 5313 is amended--
            (1) in subsection (a) by--
                    (A) striking ``(1)'';
                    (B) striking ``paragraphs (1) and (2)(C)(ii) of 
                section 5338(d) and inserting ``5338(a)(2)(F)(iii)(I) 
                and (III)''; and
                    (C) striking ``(2)'' and inserting ``(b) Federal 
                Assistance.--'';
            (2) by striking subsection (b); and
            (3) in subsection (c), by striking ``subsection (a) of''.
    (b) Conforming Amendments.--
            (1) Section 5313 is amended by striking the section heading 
        and inserting the following:
``Sec. 5313. Cooperative research program''.
            (2) The item relating to section 5313 in the table of 
        sections is amended to read as follows:

``5313. Cooperative research program.''.

SEC. 3015. NATIONAL RESEARCH PROGRAMS.

    (a) In General.--Section 5314 is amended--
            (1) in the section heading, by striking ``planning and'';
            (2) in subsection (a)(1), by--
                    (A) striking ``subsections (d) and (h)(7) of 
                section 5338'' and inserting ``section 5338(a)(2)(F)'';
                    (B) striking ``and contracts'' and inserting ``, 
                contracts, cooperative agreements, or other 
                transactions''; and
                    (C) striking ``5317,'';
            (3) in the first sentence of subsection (a)(3), by striking 
        all that follows ``chapter'';
            (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 in the first sentence, and inserting ``, contract, 
        cooperative agreement, or other transaction under subsection 
        (a) of this section or section 5312.''
    (b) Conforming Amendments.--The item relating to section 5314 in 
the table of sections is amended to read as follows:

``5314. National research programs.''.

SEC. 3016. NATIONAL TRANSIT INSTITUTE.

    Section 5315 is amended--
            (1) in subsection (a)--
                    (A) by striking ``public mass transportation'' and 
                inserting ``public transportation'' each place it 
                appears;
                    (B) by striking ``mass'' after ``Government-aid'' 
                and inserting ``public''; and
                    (C) in paragraphs (1), (6), (7), and (10) by 
                striking ``mass'' each place it appears before 
                ``transportation'' and inserting ``public'';
             (2) by striking subsection (b);
            (3) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively; and
            (4) in subsection (c), as redesignated, by striking 
        ``mass'' each place it appears.

SEC. 3017. BUS TESTING FACILITY.

    Section 5318 is amended--
            (1) by revising subsection (a) to read as follows:
    ``(a) Facility.--The Secretary of Transportation shall maintain one 
facility for testing a new bus model for maintainability, reliability, 
safety, performance (including braking performance), structural 
integrity, fuel economy, emissions, and noise.'';
            (2) in subsection (d), by striking ``section 
        5309(m)(1)(C)'' and inserting section 5338(a)(2)(I); and
            (3) by revising subsection (e) to read as follows:
    ``(e) Acquiring New Bus Models.--Amounts appropriated or made 
available under this chapter may be obligated or expended to acquire a 
new bus model only if a bus of that model has been tested at the 
facility maintained by the Secretary under subsection (a).''.

SEC. 3018. BICYCLE FACILITIES.

    Section 5319 is amended by striking ``5309(h),'' and inserting `` 
5309(g),''.

SEC. 3019. SUSPENDED LIGHT RAIL TECHNOLOGY PILOT PROJECT.

    Section 5320 is repealed.

SEC. 3020. GENERAL PROVISIONS ON ASSISTANCE.

    Section 5323 is amended--
            (1) In paragraph (a)(1) by--
                    (A) striking ``private mass transportation 
                company'' each place it appears and inserting ``private 
                company engaged in public transportation'';
                    (B) striking ``mass transportation equipment or a 
                mass transportation facility'' and inserting ``a public 
                transportation facility or equipment''; and
                    (C) striking ``mass transportation company'' and 
                inserting ``public transportation company'';
            (2) in subsection (a)(1)(B), by striking ``private mass 
        transportation companies'' and inserting ``private companies 
        engaged in public transportation'';
            (3) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``or loan''; and
                            (ii) by striking ``a certificate of the 
                        applicant'' and inserting ``in the 
                        environmental record for the project 
                        evidence''; and
                    (B) in subparagraph (A) of paragraph (1), by 
                striking ``a public hearing with adequate prior 
                notice'' and inserting ``public review and comment on 
                the project''
                    (C) by amending subparagraph (B) of paragraph (1) 
                to read as follows:
                    ``(B) held a public hearing on the project if it 
                affects significant economic, social, or environmental 
                interests;'';
            (4) in paragraph (2), by striking the last sentence;
            (5) by revising subsection (c) to read as follows:
    ``(c) New Technology.--A grant for financial assistance under this 
chapter for new technology, including innovative or improved products, 
techniques, or methods is subject to the requirements of section 5309 
of this title to the extent the Secretary considers appropriate.'';
            (6) in subsection (d)--
                    (A) by revising paragraph (2) to read as follows:
            ``(2) The Secretary may waive paragraph (1) of this 
        subsection if the Secretary finds that the provision of 
        intercity charter bus transportation service by the applicant, 
        governmental authority, or publicly owned operator is necessary 
        to meet the transportation needs of the elderly and individuals 
        with disabilities.''; and
                    (B) by adding at the end the following paragraph:
            ``(3) On receiving a complaint about a violation of the 
        agreement required under paragraph (1), the Secretary shall 
        investigate and decide whether a violation has occurred. If the 
        Secretary decides that a violation has occurred, the Secretary 
        shall correct the violation under terms of the agreement. In 
        addition to any remedy specified in the agreement, the 
        Secretary shall bar a recipient or an operator from receiving 
        Federal transit assistance in an amount the Secretary deems 
        appropriate.'';
            (7) by striking subsection (e);
            (8) by redesignating subsection (f) as (e);
            (9) in subsection (e), as redesignated--
                    (A) by revising paragraph (2) to read as follows:
            ``(2) The Secretary may waive paragraph (1) of this 
        subsection if the Secretary finds that the provision of 
        schoolbus transportation by the applicant, governmental 
        authority, or publicly owned operator is necessary to meet the 
        transportation needs of students with disabilities.''; and
                    (B) by adding at the end the following paragraph:
            ``(3) If the Secretary finds that an applicant, 
        governmental authority, or publicly owned operator has violated 
        the agreement required under paragraph (1) of this subsection, 
        the Secretary shall bar a recipient or an operator from 
        receiving Federal transit assistance in an amount the Secretary 
        deems appropriate.'';
            (10) by revising subsection (f) to read as follows:
    ``(f) Bond Proceeds Eligible for Local Share.--
            ``(1) Notwithstanding any other provision of law, a 
        recipient of assistance under sections 5307 or 5309 of this 
        chapter, may use the proceeds from the issuance of revenue 
        bonds as part of the local matching funds for a capital 
        project.
            ``(2) The Secretary may reimburse an eligible recipient for 
        deposits of bond proceeds in a debt service reserve that 
        recipient established pursuant to section 5302(a)(1a)(K) of 
        this title from amounts made available to the recipient under 
        sections 5307 or 5309 of this title.'';
            (11) in subsection (g), by--
                    (A) striking ``(f)'' and inserting ``(e)'';
                    (B) striking ``103(e)(4) and'' in the first and 
                second sentence and inserting ``133''; and
                    (C) striking (f)(1)(C) and inserting ``(e)(1)(C)'';
            (12) by revising subsection (h) to read as follows:
    ``(h) Transfer of Lands or Interests in Lands Owned by the United 
States.--
            ``(1) If the Secretary determines that any part of the 
        lands or interests in lands owned by the United States and made 
        available as a result of a military base closure is necessary 
        for transit purposes eligible under this chapter, including 
        corridor preservation, the Secretary shall file with the 
        Secretary of the Department supervising the administration of 
        such lands or interests in lands a map showing the portion of 
        such lands or interests in lands which is desired to be 
        transferred for public transportation purposes.
            ``(2) If within four months after such filing, the 
        Secretary of such Department shall not have certified to the 
        Secretary that the proposed appropriation of such land is 
        contrary to the public interest or inconsistent with the 
        purposes for which such land has been reserved, or shall have 
        agreed to the appropriation and transfer under conditions which 
        the Secretary of such Department deems necessary for the 
        adequate protection and utilization of the reserve, then such 
        land and materials may be appropriated and transferred to a 
        State, or local government, or public transportation operator 
        for such purposes and subject to the conditions so specified.
            ``(3) If at any time such lands are no longer needed for 
        public transportation purposes, notice shall be given by the 
        State, or local government, or public transportation operator 
        that received the land, to the Secretary, and such lands shall 
        immediately revert to the control of the Secretary of the 
        Department from which the land was originally transferred.'';
            (13) in subsection (j)--
                    (A) by revising paragraph (1) to read as follows:
            ``(1)(A) The Secretary may obligate an amount that may be 
        appropriated to carry out this chapter for a project only if 
        the steel, iron, rolling stock, and components and 
        subcomponents of the rolling stock used in the project are 
        produced in the United States.
            ``(B) When procuring rolling stock (including train 
        control, communication, and traction power equipment) under 
        this chapter--
                    ``(i) the cost of components and subcomponents 
                produced in the United States shall be more than 60 
                percent of the cost of all components of the rolling 
                stock; and
                    ``(ii) final assembly of the rolling stock shall 
                occur in the United States.
            ``(C) In this subsection, labor costs involved in final 
        assembly are not included in calculating the cost of 
        components.'';
            (B) in paragraph (2)(B)--
                            (i) by striking ``and goods'' and inserting 
                        ``rolling stock, and the components and 
                        subcomponents of rolling stock''; and
                            (ii) by adding ``or'' at the end;
                    (C) by striking paragraph (2)(C);
                    (D) by redesignating paragraph (2)(D) as paragraph 
                (2)(C);
                    (E) by striking paragraph (3) and redesignating 
                paragraphs (4), (5), (6), and (7) as paragraphs (3), 
                (4), (5), and (6), respectively;
                    (F) in paragraph (4), as redesignated, by striking 
                ``Intermodal Surface Transportation Efficiency Act of 
                1991 (Public Law 102-240, 105 Stat. 1914'' and 
                inserting ``Safe, Accountable, Flexible, and Efficient 
                Transportation Equity Act of 2003'';
            (14) by revising subsection (l) to read as follows:
    ``(l) Relationship to Other Laws.--Section 1001 of title 18, 
U.S.C., applies to a certificate, submission, or statement provided 
under this chapter. The Secretary may terminate financial assistance 
under this chapter and seek reimbursement directly, or by offsetting 
amounts, available under this chapter, when a false or fraudulent 
statement or related act within the meaning of section 1001 is made in 
connection with a Federal transit program.'';
            (15) in subsection (m), by inserting at the end the 
        following: ``Requirements to perform preaward and postdelivery 
        reviews of rolling stock purchases to ensure compliance with 
        subsection (j) of this section do not apply to private 
        nonprofit organizations or to grantees serving areas with fewer 
        than one million people.'';
            (16) in subsection (o) by striking ``the Transportation 
        Infrastructure Finance and Innovation Act of 1998'' and 
        inserting ``23 U.S.C. 188''.

SEC. 3021. SPECIAL PROVISIONS FOR CAPITAL PROJECTS.

    (a) In General.--Section 5324 is amended to read as follows:
Sec. 5324. Special provisions for capital projects
    ``(a) Real Property and Relocation Services.--Whenever real 
property is acquired and furnished as a required contribution incident 
to a project, the Secretary may not approve the application for 
financial assistance unless the applicant has made all payments and 
provided all assistance and assurances as are required of a State 
agency under Sections 210 and 305 of the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act, as amended (Uniform Act). 
The Secretary must be advised of specific references to any State law 
that are believed to be an exception to Sections 301 or 302 of the 
Uniform Act.
    ``(b) Advance Real Property Acquisitions.--
            ``(1) The Secretary may participate in the acquisition of 
        real property prior to completion of the environmental reviews 
        for any project that may use the property if the Secretary 
        determines that external market forces are jeopardizing the 
        potential use of the property for the project, given any of the 
        following conditions--
                    ``(A) there are offers on the open real estate 
                market to convey that property for a use or uses 
                incompatible with the project under study;
                    ``(B) there is an imminent threat of development or 
                redevelopment of the property for use or uses 
                incompatible with the project under study;
                    ``(C) recent appraisals reflect a rapid increase in 
                the fair market value of the property;
                    ``(D) the property, because it is located near an 
                existing transportation facility, is likely to be 
                developed, but also likely to be needed for a future 
                transportation improvement; or
                    ``(E) the property owner can demonstrate that, for 
                health, safety, or financial reasons, retaining 
                ownership of the property poses an undue hardship on 
                the owner in comparison to other affected property 
                owners and requests the acquisition to alleviate that 
                hardship.
            ``(2) Property acquired in accordance with this subsection 
        may not be developed in anticipation of the project until the 
        Secretary has complied with the National Environmental Policy 
        Act and the applicable provisions of the Department of 
        Transportation Act for protection of publicly owned park lands, 
        wildlife and waterfowl refuges, and historic sites.
            ``(3) The Secretary shall limit the size and number of 
        properties acquired in accordance with this subsection as 
        necessary to avoid any prejudice to the Secretary's objective 
        evaluation of project alternatives.
            ``(4) An acquisition undertaken pursuant to this section 
        shall be considered to be an exempt project under section 176 
        of the Clear Air Act and its implementing regulations.
    ``(c) Railroad Corridor Preservation.--
            ``(1) The Secretary may assist an applicant in the 
        acquisition of a pre-existing railroad right-of-way prior to 
        completion of the environmental reviews for any project that 
        may use the right-of-way if the acquisition is otherwise 
        permitted under Federal law; furthermore, the Secretary may 
        establish restrictions on such an acquisition as the Secretary 
        deems necessary and appropriate.
            ``(2) Railroad right-of-way acquired in accordance with 
        this subsection may not be developed in anticipation of the 
        project until the Secretary has complied with the National 
        Environmental Policy Act and the applicable provisions of the 
        Department of Transportation Act for protection of publicly 
        owned park lands, wildlife and waterfowl refuges, and historic 
        sites.
    ``(d) Consideration of Economic, Social, and Environmental 
Interests.--
            ``(1) In carrying out section 5301(e) of this chapter, the 
        Secretary shall cooperate and consult with the Secretaries of 
        the Interior, Housing and Urban Development, and the 
        Administrator of the Environmental Protection Agency on each 
        project that may have a substantial impact on the environment.
            ``(2) In performing environmental reviews, the Secretary 
        shall consider the public comments on a project submitted under 
        section 5323(b) of this title and ensure that an adequate 
        opportunity to present views was given to all parties having a 
        significant economic, social, or environmental interest in the 
        project, and that the project application includes a record 
        of--
                    ``(A) the environmental impact of the proposal;
                    ``(B) adverse environmental effects that cannot be 
                avoided;
                    ``(C) alternatives to the proposal; and
                    ``(D) irreversible and irretrievable impacts on the 
                environment.
            ``(3)(A) The Secretary may approve an application for 
        financial assistance for a capital project in accordance with 
        this chapter only if the Secretary makes written findings, 
        after reviewing the environmental record included with the 
        project application, that--
                    ``(i) an adequate opportunity to present views was 
                given to all parties having a significant economic, 
                social, or environmental interest;
                    ``(ii) the preservation and enhancement of the 
                environment and the interest of the community in which 
                the project is located were considered; and
                    ``(iii) no adverse environmental effect is likely 
                to result from the project, or no feasible and prudent 
                alternative to the effect exists and all reasonable 
                steps have been taken to minimize the effect.
            ``(B) The Secretary's findings under subparagraph (A) of 
        this paragraph shall be made a matter of public record.''.
    (b) Conforming Amendment.--The item relating to section 5324 in the 
table of sections for chapter 53 is amended to read as follows:

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

SEC. 3022. CONTRACT REQUIREMENTS.

    (a) In General.--Section 5325 is amended--
            (1) by revising subsection (a) to read as follows:
    ``(a) Competition.--Recipients of Federal assistance under this 
chapter shall conduct all procurement transactions in a manner 
providing full and open competition as determined by the Secretary.'';
            (2) by revising subsection (b) to read as follows:
    ``(b) Architectural, Engineering, and Design Contracts.--A contract 
or requirement for program management, architectural engineering, 
construction management, a feasibility study, and preliminary 
engineering, design, architectural, engineering, surveying, mapping, or 
related services for a project for which Federal assistance is provided 
under this chapter shall be awarded in the same way as a contract for 
architectural and engineering services is negotiated under chapter 11 
of title 40, U.S.C., or an equivalent qualifications-based requirement 
of a State. This subsection does not apply to the extent a State has 
adopted or adopts by law a formal procedure for procuring those 
services. When awarding such contracts, recipients of assistance under 
this chapter shall maximize efficiencies of administration by accepting 
non-disputed audits conducted by other governmental agencies as 
follows:
            ``(1) Any contract or subcontract awarded under this 
        chapter shall be performed and audited in compliance with cost 
        principles contained in the Federal Acquisition Regulation, 
        part 31 of title 48, Code of Federal Regulations.
            ``(2) Instead of performing its own audits, a recipient of 
        funds under a contract or subcontract awarded under this 
        chapter shall accept indirect cost rates established in 
        accordance with the Federal Acquisition Regulations for one-
        year applicable accounting periods by a cognizant Federal or 
        State government agency, if such rates are not currently under 
        dispute.
            ``(3) Once a firm's indirect cost rates are accepted under 
        this paragraph, the recipient of the funds shall apply such 
        rates for the purposes of contract estimation, negotiation, 
        administration, reporting, and contract payment, and shall not 
        be limited by administrative or de facto ceilings.
            ``(4) A recipient of funds requesting or using the cost and 
        rate data described in paragraph (3) shall notify any affected 
        firm before such request or use. Such data shall be 
        confidential and shall not be accessible or provided, in whole 
        or in part by the group of agencies sharing cost data under 
        this paragraph, except by written permission of the audited 
        firm. If prohibited by law, such cost and rate data shall not 
        be disclosed under any circumstances.'';
            (3) by inserting new subsections (d) through (h), after 
        subsection (c), to read as follows:
  ``(d) Design-Build System Projects.--
            ``(1) `design-build system project' means a project under 
        which a recipient enters into a contract with a seller, firm, 
        or consortium of firms to design and build a public 
        transportation system or an operable segment thereof that meets 
        specific performance criteria. Such project may also include an 
        option to finance, or operate for a period of time, the system 
        or segment or any combination of designing, building, 
        operating, or maintaining such system or segment.
            ``(2) Government financial assistance under this chapter 
        may be made available for the capital costs of a design-build 
        system project after the recipient complies with Government 
        requirements.
    ``(e) Multiyear Rolling Stock.--
            ``(1) A recipient procuring rolling stock with Government 
        financial assistance under this chapter may make a multiyear 
        contract, including options, to buy not more than 5 years of 
        requirements for rolling stock and replacement parts.
            ``(2) The Secretary shall allow a recipient to act on a 
        cooperative basis to procure rolling stock in compliance with 
        this subsection and other Government procurement requirements.
    ``(f) Acquiring Rolling Stock.--A recipient of financial assistance 
under this chapter may enter into a contract to expend that assistance 
to acquire rolling stock--
            ``(1) based on--
                    ``(A) initial capital costs; or
                    ``(B) performance, standardization, life cycle 
                costs, and other factors; or
            ``(2) with a party selected through a competitive 
        procurement process.
    ``(g) Examination of the Records.--Upon request, the Secretary and 
the Comptroller General, or any of their representatives, shall have 
access to and the right to examine and inspect all records, documents, 
papers, including contracts, related to a projects for which a grant is 
made under this chapter.
    ``(h) Grant Prohibitions.---A grant may not be used to support a 
procurement that uses an exclusionary or discriminatory 
specification.''.
    (b) Conforming Amendments.--Chapter 53 of title 49, United States 
Code, is amended by--
            (1) repealing section 5326; and
            (2) striking ``5326. Special Procurements.'' in the table 
        of sections for chapter 53.

SEC. 3023. HUMAN RESOURCE PROGRAMS.

    (a) In General.--Section 5322 is amended--
            (1) by inserting ``(a) In General.--'' before the beginning 
        of the first sentence of the section; and
            (2) by adding the following at the end:
    ``(b) Grants to Higher Learning Institutions.--
            ``(1) The Secretary (or the Secretary of Housing and Urban 
        Development when required by section 5334(i) of this title) may 
        make grants to nonprofit institutions of higher learning--
                    ``(A) to conduct competent research and 
                investigations into the theoretical or practical 
                problems of urban transportation; and
                    ``(B) to train individuals to conduct further 
                research or obtain employment in an organization that 
                plans, builds, operates, or manages an urban 
                transportation system.
            ``(2) Research and investigations under this subsection 
        include--
                    ``(A) the design and use of urban public 
                transportation systems and urban roads and highways;
                    ``(B) the interrelationship between various modes 
                of urban and interurban transportation;
                    ``(C) the role of transportation planning in 
                overall urban planning;
                    ``(D) public preferences in transportation;
                    ``(E) the economic allocation of transportation 
                resources; and
                    ``(F) the legal, financial, engineering, and 
                esthetic aspects of urban transportation.
            ``(3) When making a grant under this subsection, the 
        Secretary shall give preference to an institution that brings 
        together knowledge and expertise in the various social science 
        and technical disciplines related to urban transportation 
        problems.
    ``(c) Fellowships.--
            ``(1) The Secretary may make grants to States, local 
        governmental authorities, and operators of public 
        transportation systems to provide fellowships to train 
        personnel employed in managerial, technical, and professional 
        positions in the mass transportation field.
            ``(2) A fellowship under this subsection may be for not 
        more than one year of training in an institution that offers a 
        program applicable to the public transportation industry. The 
        recipient of the grant shall select an individual on the basis 
        of demonstrated ability and for the contribution the individual 
        reasonably can be expected to make to an efficient public 
        transportation operation. A grant for a fellowship may not be 
        more than the lesser of $65,000 or 75 percent of--
                    ``(A) tuition and other charges to the fellowship 
                recipient;
                    ``(B) additional costs incurred by the training 
                institution and billed to the grant recipient; and
                    ``(C) the regular salary of the fellowship 
                recipient for the period of the fellowship to the 
                extent the salary is actually paid or reimbursed by the 
                grant recipient.
    ``(d) Other Grants.--The Secretary may make grants to State and 
local governmental authorities for projects that will use innovative 
techniques and methods in managing and providing public 
transportation.''.

SEC. 3024. PROJECT MANAGEMENT OVERSIGHT AND REVIEW.

    (a) Project Management Plan Requirements.--Section 5327(a) is 
amended--
            (1) by striking ``and'' at the end of paragraph 11;
            (2) in paragraph 12, by striking the ``.'' and inserting 
        ``; and''; and
            (3) by adding after paragraph (12) the following:
            ``(13) safety and security management.''.
    (b) Limitations on Use of Available Amounts.--Section 5327(c) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``.5'' and inserting ``1'';
                    (B) by striking ``5307, 5309, or 5311 of this 
                title, an interstate transfer mass transportation 
                project under section 103(e)(4) of title 23 as in 
                effect on September 30, 1991,'' and inserting ``5307-
                5311, 5316, or 5317 of this title,'';
                    (C) by striking ``to make a contract'';
                    (D) by striking ``a major project'' and inserting 
                ``major projects''; and
                    (E) by striking ``section 5307, 5309, 5311, or 
                103(e)(4)'' and inserting ``sections 5307-5311, 5316, 
                5317,'';
            (2) in paragraph (2), by inserting ``and security'' after 
        ``safety''; and
            (3) by redesignating paragraph (3) as (4) and inserting a 
        new paragraph (3), as follows:
            ``(3) The Secretary shall deduct a sum in an amount that 
        the Secretary determines necessary to administer this section 
        from the amounts made available under paragraph (1) of this 
        subsection. These funds shall be in addition to any other funds 
        made available for these purposes, and shall remain available 
        until expended.''.

SEC. 3025. PROJECT REVIEW.

    Section 5328 is repealed.

SEC. 3026. INVESTIGATIONS OF SAFETY AND SECURITY RISK.

    (a) In General.--Section 5329 is amended to read as follows:
``Sec. 5329. Investigation of safety and security risks
    ``The Secretary may conduct investigations into safety and security 
risks associated with a condition in equipment, a facility, or an 
operation financed under this chapter to establish the nature and 
extent of the condition and how to eliminate, mitigate, or correct it. 
If the Secretary establishes that a safety or security risk warrants 
further protective measures, the Secretary shall require the local 
governmental authority receiving amounts under this chapter to submit a 
plan for eliminating, mitigating, or correcting it. Any such plan 
relating to security risks shall be developed in consultation with the 
Secretary of Homeland Security. Financial assistance under this 
chapter, in an amount to be determined by the Secretary, may be 
withheld until a plan is approved and carried out.''.
    (b) Conforming Amendment.--The item relating to section 5329 in the 
table of sections for chapter 53 is amended to read as follows:

``5329. Investigation of safety and security risks.''.

SEC. 3027. STATE SAFETY OVERSIGHT.

    (a) In General.--Section 5330 is amended--
            (1) by striking the heading ``Withholding Amounts for 
        Noncompliance with Safety Requirements'' and inserting ``State 
        Safety Oversight'';
            (2) in subsection (a), by striking the text and inserting 
        the following ``This section applies only to--
            ``(1) States that have rail fixed guideway public 
        transportation systems not subject to regulation by the Federal 
        Railroad Administration; and
            ``(2) States that are designing rail fixed guideway public 
        transportation systems that will not be subjected to regulation 
        by the Federal Railroad Administration.'';
            (3) in subsection (d) by inserting ``shall ensure uniform 
        safety standards and enforcement and'' after ``affected 
        States''; and
            (4) by striking subsection (f).
    (b) Conforming Amendment.--The item relating to section 5330 in the 
table of sections for chapter 53 is amended to read as follows:

``5330. State safety oversight.''.

SEC. 3028. SENSITIVE SECURITY INFORMATION.

    Section 40119(b) is amended--
            (1) in paragraph (1)(C) by striking ``transportation 
        safety'' and inserting ``the safety of transportation 
        facilities or infrastructure, or transportation employees''; 
        and
            (2) by adding at the end a new paragraph (3), to read as 
        follows:
            ``(3) A State or local government may not enact, enforce, 
        prescribe, issue, or continue in effect any law, regulation, 
standard, or order to the extent it is inconsistent with this section 
or regulations prescribed under this section.''.

SEC. 3029. TERRORIST ATTACKS AND OTHER ACTS OF VIOLENCE AGAINST PUBLIC 
              TRANSPORTATION SYSTEMS.

    (a) In General.--Section 1993 of title 18, U.S.C., is amended--
            (1) by striking ``mass'' in each place it appears before 
        ``transportation'' and inserting ``public'';
            (2) in subsection (a)(5), by inserting ``controlling,'' 
        after ``operating''; and
            (3) in subsection (c)(5), by striking ``5302(a)(7)'' and 
        inserting ``5302(a)''.
    (b) Conforming Amendment.--The item related to section 1993 in the 
table of contents for chapter 97 of title 18, U.S.C. is amended to read 
as follows:

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

SEC. 3030. CONTROLLED SUBSTANCES AND ALCOHOL MISUSE TESTING.

    (a) Definitions.--Section 5331(a)(3) is amended by inserting after 
``title'' the following: ``, or sections 2303a, 7101(i), 7302(e) of 
title 46, United States Code. The Secretary may also decide that a form 
of public transportation is covered adequately, for employee alcohol 
and controlled substances testing purposes, under the alcohol and 
controlled substance statutes or regulations of an agency within the 
Department of Transportation or other Federal agency.''.
    (b) Regulations.--Section 5331(f) is amended by striking paragraph 
(3).

SEC. 3031. EMPLOYEE PROTECTIVE ARRANGEMENTS.

    Section 5333(b)(1) is amended by striking ``5318(d), 5323(a)(1), 
(b), (d), and (e), 5328, 5337, and 5338(b)'' each place it appears and 
inserting ``5316-5318, 5323(a)(1), (b), and (c), 5337, and 
5338(b)(3)(C)''.

SEC. 3032. ADMINISTRATIVE PROCEDURES.

    Section 5334 is amended--
            (1) in subsection (a),
                    (A) by striking ``and'' at the end of paragraph 
                (9);
                    (B) by striking the period at the end of paragraph 
                (10) and inserting ``; and''; and
                    (C) by inserting after paragraph (10) the 
                following:
            ``(11) issue regulations as necessary to carry out the 
        purposes of this chapter.'';
            (2) by redesignating subsections (b), (c), (d), (e), (f), 
        (g), (h), (i), and (j) as subsections (c), (d), (e), (f), (g), 
        (h), (i), (j), and (k);
            (3) by adding a new subsection (b) after subsection (a), to 
        read as follows:
    ``(b) Prohibitions Against Regulating Operations and Charges.--
Except as directed by the President for purposes of national defense or 
in the event of a national or regional emergency, the Secretary may not 
regulate the operation, routes, or schedules of a public transportation 
system for which a grant is made under this chapter, nor may the 
Secretary regulate the rates, fares, tolls, rentals, or other charges 
prescribed by any public or private transportation provider; provided, 
however, that nothing in this subsection shall prevent the Secretary 
from requiring a recipient of funds under this chapter to comply with 
the terms and conditions of its Federal assistance agreement.''; and
            (4) in subsection (j)(1), as redesignated,
                    (A) by striking ``carry'' and inserting ``advise 
                and assist the Secretary in carrying''; and
                    (B) by striking ``and (b)(1)'' and insert 
                ``5322(b)(1)''.

SEC. 3033. REPORTS AND AUDITS.

    Section 5335 is amended--
            (1) in subsection (a), by--
                    (A) striking ``(1)''; and
                    (B) striking ``(2)'' and inserting ``(b) Reporting 
                and Uniform Systems.--''; and
            (2) by striking subsection (b).

SEC. 3034. APPORTIONMENTS OF APPROPRIATIONS FOR FORMULA GRANTS.

    (a) In General.--Section 5336 is amended by--
            (1) striking subsection (d);
            (2) striking subsection (k);
            (3) redesignating subsections (a) through (c) as 
        subsections (b) through (d), respectively; and
            (4) adding a new subsection (a) as follows:
    ``(a) Apportionment of Allocations.--Of the amounts allocated under 
section 5338(a)(2)(P) of this title--
            ``(1) the following percentages shall be apportioned to 
        each urbanized area in accordance with subsection (k) of this 
        section:
                    ``(A) One percent in fiscal year 2004.
                    ``(B) Three percent in fiscal year 2005.
                    ``(C) Five percent in fiscal year 2006.
                    ``(D) Seven percent in fiscal year 2007.
                    ``(E) Nine percent in fiscal year 2008.
                    ``(F) Ten percent in every fiscal year thereafter.
            ``(2) the remaining portion shall be apportioned to each 
        urbanized area in accordance with subsections (b) through (d) 
        of this section.''.
    (b) Based on Urbanized Area Population.--Subsection (b), as 
redesignated, is amended--
            (1) by striking ``Of the amount made available or 
        appropriated under section 5338(a) of this title'' and 
        inserting ``Of the amount to be apportioned under subsection 
        (a)(2) of this section''; and
            (2) in paragraph (2), by striking ``subsections (b) and 
        (c)'' and inserting ``subsections (c) and (d)''.
    (c) Based on Fixed Guideway Revenue Vehicle-Miles, Route-Miles, and 
Passenger-Miles.--Subsection (c)(2), as redesignated, is amended by 
striking ``subsection (a)(2)'' and inserting ``subsection (b)(2)''.
    (d) Based on Bus Revenue Vehicle-Miles and Passenger-Miles.--
Subsection (d), as redesignated, is amended by striking ``subsection 
(a)(2)'' and inserting ``subsection (b)(2)''.
    (e) Date of Apportionment.--Subsection (e)(1) is amended by 
striking ``subsections (a) and (h)(2) of section 5338'' and inserting 
``section 5338(a)(2)(P)''.
    (f) Transfers of Apportionments.--Subsection (g) is amended by 
striking ``subsection (a)(1)'' and inserting ``subsection (b)(1)'' each 
time it appears.
    (g) Apportionment Based on Incentive Factors.--Section 5336 is 
amended by adding a new subsection (k) as follows:
    ``(k) Apportionment Based on Incentive Factors.--
            ``(1) Of the amounts apportioned under subsection (a)(1) of 
        this section, the Secretary may use the following amounts to 
        make grants to establish data collection systems capable of 
        collecting the data in paragraph (3) of this subsection:
                    ``(A) $25,000,000 in fiscal year 2004.
                    ``(B) $15,000,000 in fiscal year 2005.
                    ``(C) $5,000,000 in fiscal year 2006.
            ``(2) Amounts under paragraph (1) of this subsection not 
        obligated within three years following the end of the fiscal 
        year in which those amounts became available shall be available 
        for apportionment under paragraph (3) of this subsection.
            ``(3) The remaining amounts to be apportioned under 
        subsection (a)(1) of this section shall be apportioned by a 
        formula determined by the Secretary that distributes funds 
        based on increases in public transportation patronage.
            ``(4) In apportioning funds under this subsection, the 
        Secretary may consider the efficiency of service provision in 
        the urbanized area.
            ``(5) The Secretary shall not apportion any amounts under 
        this subsection to an urbanized area that experiences a 
        significant decline, as determined by the Secretary, in public 
        transportation patronage by elderly individuals, individuals 
        with disabilities, or low income persons.''.

SEC. 3035. APPORTIONMENTS BASED ON FIXED GUIDEWAY FACTORS.

    (a) Section Heading.--Section 5337 is amended by striking the 
section heading and inserting the following:
``Sec. 5337. Apportionment based on fixed guideway factors''.
    (b) Distribution.--The text of subsection 5337(a) before the first 
colon is amended to read as follows: ``Amounts made available under 
section 5338(a)(2)(N) of this title are apportioned as follows:''.
    (c) In General.--Section 5337 is amended by--
            (1) striking ``section 5336(b)(2)(A)'' each place it 
        appears and inserting ``section 5336(c)(2)(A)'';
            (2) striking subsection (e); and
            (3) redesignating subsection (f) as subsection (e).
    (d) Conforming Amendment.--The item relating to section 5337 in the 
table of sections for chapter 53 is amended to read as follows:

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

SEC. 3036. AUTHORIZATIONS.

    The text of section 5338 is amended to read as follows:
    ``(a) Formula Grants and Research.--
            ``(1) There shall be available from the Mass Transit 
        Account of the Highway Trust Fund to carry out sections 5305, 
        5307, 5308, 5310-5318, 5322, 5335, 5505, and 5570-5575 of this 
        title, and section 3038 of Public Law 105-178--
                    ``(A) $5,615,406,000 for fiscal year 2004;
                    ``(B) $5,727,714,000 for fiscal year 2005;
                    ``(C) $5,846,851,000 for fiscal year 2006;
                    ``(D) $5,978,405,000 for fiscal year 2007;
                    ``(E) $6,126,071,000 for fiscal year 2008; and
                    ``(F) $6,274,935,000 for fiscal year 2009.
            ``(2) Of the aggregate of amounts made available under this 
        subsection for a fiscal year,
                    ``(A) 1.25 percent shall be available to carry out 
                section 5305 in the fiscal year 2004;
                    ``(B) 2 percent shall be available to carry out 
                section 5305 in fiscal years 2005 through 2009;
                    ``(C) the following amounts shall be available to 
                carry out section 5335--
                            ``(i) $3,500,000 in fiscal year 2004;
                            ``(ii) $3,700,000 in fiscal year 2005;
                            ``(iii) $3,900,000 in fiscal year 2006;
                            ``(iv) $4,100,000 in fiscal year 2007;
                            ``(v) $4,300,000 in fiscal year 2008; and
                            ``(vi) $4,500,000 in fiscal year 2009;
                    ``(D) $4,849,950 shall be available for grants to 
                the Alaska Railroad for improvements to its passenger 
                operations in lieu of receiving an apportionment under 
                section 5336 of this title;
                    ``(E) $6,950,000 shall be available to carry out 
                section 3038 of the Transportation Equity Act for the 
                21st Century, as amended;
                    ``(F) the following amounts shall be available to 
                carry out transit cooperative research programs under 
                section 5313, the National Transit Institute under 
                section 5315, and national research programs under 
                sections 5312, 5313, 5314, and 5322:
                            ``(i) $43,750,000 in fiscal year 2004;
                            ``(ii) 0.779 percent in fiscal years 2005 
                        through 2009; and
                            ``(iii) Of the amount made available by 
                        this paragraph:
                                    ``(I) 18.85 percent shall be 
                                available for carrying out transit 
                                cooperative research programs under 
                                section 5313;
                                    ``(II) 9.14 percent shall be 
                                available to carry out programs under 
                                the National Transit Institute under 
                                section 5315, including not more than 
                                $1,000,000 shall be available to carry 
                                out section 5315(a)(16); and ------
                                    ``(III) the remainder shall be 
                                available for carrying out national 
                                research programs under sections 5312, 
                                5313, 5314, and 5322;
                    ``(G) $30,000,000 shall be available to carry out 
                section 5316 for each fiscal year 2005 through 2009, 
                based on need and supported by transportation financial 
                feasibility studies and planning analyses;
                    ``(H) the following amounts shall be available for 
                the New Freedom program under section 5317 of this 
                title:
                            ``(i) $145,000,000 in fiscal year 2004; and
                            ``(ii) 2.582 percent in fiscal years 2005 
                        through 2009;
                    ``(I) the following amounts shall be available to 
                carry out section 5318:
                            ``(i) $3,000,000 in fiscal year 2004; and
                            ``(ii) 0.061 percent in fiscal years 2005 
                        through 2009;
                    ``(J) $6,000,000 shall be available to carry out 
                section 5505 of this title;
                    ``(K) 6.4 percent shall be available to provide 
                financial assistance for other than urbanized areas 
                under section 5311;
                    ``(L) 1.55 percent shall be available to provide 
                financial assistance for services for elderly persons 
                and persons with disabilities under section 5310;
                    ``(M) the following amounts shall be available to 
                provide financial assistance for job access and reverse 
                commute projects under section 5308:
                            ``(i) $150,000,000 in fiscal year 2004; and
                            ``(ii) 2.671 percent in fiscal years 2005 
                        through 2009;
                    ``(N) the following amounts shall be available to 
                provide financial assistance for urbanized areas under 
                section 5307 and apportioned in accordance with section 
                5337:
                            ``(i) $1,214,400,000 in fiscal year 2004; 
                        and
                            ``(ii) 21.626 percent in fiscal years 2005 
                        through 2009; and
                    ``(O) $75,000,000 shall be available to carry out 
                sections 5570 through 5575 in fiscal years 2005 through 
                2009.
                    ``(P) The remaining amount shall be available to 
                provide financial assistance for urbanized areas under 
                section 5307 and apportioned in accordance with section 
                5336.
    ``(b) Major Capital Investment Program Grants.--
            ``(1) There shall be available from the Mass Transit 
        Account of the Highway Trust Fund to carry out sections 5305 
        and 5309--
                    ``(A) $320,594,000 for fiscal year 2004;
                    ``(B) $327,006,000 for fiscal year 2005;
                    ``(C) $333,808,000 for fiscal year 2006;
                    ``(D) $341,318,000 for fiscal year 2007;
                    ``(E) $349,749,000 for fiscal year 2008; and
                    ``(F) $358,248,000 for fiscal year 2009.
            ``(2) In addition to amounts made available under paragraph 
        (1), there are authorized to be appropriated to carry out 
        sections 5305 and 5309--
                    ``(A) $1,213,500,000 for fiscal year 2004;
                    ``(B) $1,236,192,000 for fiscal year 2005;
                    ``(C) $1,261,287,000 for fiscal year 2006;
                    ``(D) $1,289,162,000 for fiscal year 2007;
                    ``(E) $1,321,907,000 for fiscal year 2008; and
                    ``(F) $1,355,219,000 for fiscal year 2009.
            ``(3) Of the amounts made available by and appropriated 
        under this subsection for a fiscal year,
                    ``(A) 1.25 percent shall be available to carry out 
                section 5305 in the fiscal year 2004;
                    ``(B) 2 percent shall be available to carry out 
                section 5305 in fiscal years 2005 through 2009; and
                    ``(C) the remaining amount shall be available to 
                carry out Major Capital Investment Grants under section 
                5309 of this title. --
    ``(c) Administration.--There are authorized to be appropriated to 
carry out section 5334--
            ``(A) $76,500,000 for fiscal year 2004;
            ``(B) $77,931,000 for fiscal year 2005;
            ``(C) $79,513,000 for fiscal year 2006;
            ``(D) $81,270,000 for fiscal year 2007;
            ``(E) $83,334,000 for fiscal year 2008; and
            ``(F) $85,434,000 for fiscal year 2009.
    ``(d) Grants as Contractual Obligations.--
            ``(1) A grant or contract approved by the Secretary, that 
        is financed with amounts made available under subsections (a), 
        (b)(1), or (e) is a contractual obligation of the United States 
        Government to pay the Government's share of the cost of the 
        project.
            ``(2) A grant or contract, approved by the Secretary, that 
        is financed with amounts made available under subsections 
        (b)(2) or (c) is a contractual obligation of the Government to 
        pay the Government's share of the cost of the project only to 
        the extent that amounts are provided in advance in an 
        appropriations Act.
    ``(e) Revenue Aligned Budget Authority.--
            ``(1) On October 15 of fiscal year 2006 and each fiscal 
        year thereafter, the Secretary shall prorate an amount of funds 
        equal to the amount determined pursuant to section 251(b)(1)(C) 
        of the Balanced Budget and Emergency Deficit Control Act of 
        1985 in a portion equal to the amount available to each Federal 
        transit program for which funds are available from the Mass 
        Transit Account of the Highway Trust Fund under subsections (a) 
        and (b) of this section.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated from the Mass Transit Account of 
        the Highway Trust Fund such sums as may be necessary to carry 
        out this subsection for fiscal years beginning after September 
        30, 2005.
    ``(f) Availability of Amounts.--Amounts made available by or 
appropriated under subsections (a), (b), and (e) shall remain available 
until expended.''.

SEC. 3037. NATIONAL PARKS AND PUBLIC LANDS LEGACY PROJECT.

    (a) In General.--Chapter 53 is amended by inserting after section 
5315 the following:
``Sec. 5316. National parks and public lands Legacy Project
    ``(a) In General.--
            ``(1) The Secretary of Transportation, in consultation with 
        the Secretary of the Interior, may make a grant or enter into a 
        contract, cooperative agreement, interagency agreement, intra-
        agency agreement, or other transaction to carry out a qualified 
        project under this section to enhance the protection of 
        America's National Parks and public lands and increase the 
        enjoyment of those visiting the parks and public lands by 
        ensuring access to all, including the disabled, improving 
        conservation and park and public land opportunities in urban 
        areas through partnering with state and local governments, and 
improving park and public land transportation infrastructure.
            ``(2) A grant, cooperative agreement, interagency 
        agreement, intra-agency agreement, or other transaction for a 
        qualified project under this section shall be available to 
        finance the leasing of equipment and facilities for use in 
        public transportation, subject to any regulation that the 
        Secretary may prescribe limiting the grant or agreement to 
        leasing arrangements that are more cost-effective than purchase 
        or construction.
    ``(b) Definitions.--In this section--
            ``(1) `eligible area' means any federally owned or managed 
        park, refuge, or recreational area that is open to the general 
        public, including--
                    ``(A) a unit of the National Park System;
                    ``(B) a unit of the National Wildlife Refuge 
                System;
                    ``(C) a recreational area managed by the Bureau of 
                Land Management; and
                    ``(D) a recreation area managed by the Bureau of 
                Reclamation.
            ``(2) `Federal land management agency' means a Federal 
        agency that manages an eligible area.
            ``(3) `public transportation' means transportation by bus, 
        rail, or any other publicly or privately owned conveyance that 
        provides to the public general or special service on a regular 
        basis, including sightseeing service.
            ``(4) `qualified participant' means--
                    ``(A) a Federal land management agency; or
                    ``(B) a State, tribal, or local governmental 
                authority with jurisdiction over land in the vicinity 
                of an eligible area acting with the consent of the 
                Federal land management agency, alone or in partnership 
                with a Federal land management agency or other 
                Governmental or nongovernmental participant.
            ``(5) `qualified project' means a planning or capital 
        project in or in the vicinity of an eligible area that--
                    ``(A) is an activity described in section 5302, 
                5303, or 5304;
                    ``(B) involves--
                            ``(i) the purchase of rolling stock that 
                        incorporates clean fuel technology or the 
                        replacement of buses of a type in use on the 
                        date of enactment of this section with clean 
                        fuel vehicles; or
                            ``(ii) the deployment of public 
                        transportation vehicles that introduce 
                        innovative technologies or methods;
                    ``(C) relates to the capital costs of coordinating 
                the Federal land management agency public 
                transportation systems with other public transportation 
                systems;
                    ``(D) provides a nonmotorized transportation system 
                (including the provision of facilities for pedestrians, 
                bicycles, and nonmotorized watercraft);
                    ``(E) provides waterborne access within or in the 
                vicinity of an eligible area, as appropriate to and 
                consistent with this section; or
                    ``(F) is any other public transportation project 
                that--
                            ``(i) enhances the environment;
                            ``(ii) prevents or mitigates an adverse 
                        impact on a natural resource;
                            ``(iii) improves Federal land management 
                        agency resource management;
                            ``(iv) improves visitor mobility and 
                        accessibility and the visitor experience;
                            ``(v) reduces congestion and pollution 
                        (including noise pollution and visual 
                        pollution); or
                            ``(vi) conserves a natural, historical, or 
                        cultural resource (excluding rehabilitation or 
                        restoration of a non-transportation facility).
            ``(6) `Secretary' means the Secretary of Transportation.
    ``(c) Limitation on Use of Available Amounts.--
            ``(1) The Secretary, in consultation with the Secretary of 
        the Interior, may use not more than 10 percent of the amount 
        made available for a fiscal year under section 5338(a)(2)(G) to 
        carry out planning, research, and technical assistance under 
        this section, including the development of technology 
        appropriate for use in a qualified project.
            ``(2) Amounts made available under this subsection are in 
        addition to amounts otherwise available to the Secretary to 
        carry out planning, research, and technical assistance under 
        this title or any other provision of law.
            ``(3) No qualified project shall receive more than 12 
        percent of the total amount made available to carry out this 
        section under section 5338(a)(2)(G) for any fiscal year.
    ``(d) Planning Process.--In undertaking a qualified project under 
this section,
            ``(1) if the qualified participant is a Federal land 
        management agency--
                    ``(A) the Secretary, in cooperation with the 
                Secretary of the Interior, shall develop transportation 
                planning procedures that are consistent with--
                            ``(i) the metropolitan planning provisions 
                        under section 5303 of this title;
                            ``(ii) the statewide planning provisions 
                        under section 5304 of this title; and
                            ``(iii) the public participation 
                        requirements under section 5307(e); and
                    ``(B) in the case of a qualified project that is at 
                a unit of the National Park system, the planning 
                process shall be consistent with the general management 
                plans of the unit of the National Park system; and
            ``(2) if the qualified participant is a State or local 
        governmental authority, or more than one State or local 
        governmental authority in more than one State, the qualified 
        participant shall--
                    ``(A) comply with the metropolitan planning 
                provisions under section 5303 of this title;
                    ``(B) comply with the statewide planning provisions 
                under section 5304 of this title;
                    ``(C) comply with the public participation 
                requirements under section 5307(e) of this title; and
                    ``(D) consult with the appropriate Federal land 
                management agency during the planning process.
    ``(e) Cost Sharing.--
            ``(1) The Secretary, in cooperation with the Secretary of 
        the Interior, shall establish the share of assistance to be 
        provided under this section to a qualified participant.
            ``(2) In establishing the share of assistance to be 
        provided under this section, the Secretary shall consider--
                    ``(A) visitation levels and the revenue derived 
                from user fees in the eligible area in which the 
                qualified project is carried out;
                    ``(B) the extent to which the qualified participant 
                coordinates with a public transportation authority or 
                private entity engaged in public transportation;
                    ``(C) private investment in the qualified project, 
                including the provision of contract services, joint 
                development activities, and the use of innovative 
                financing mechanisms;
                    ``(D) the clear and direct benefit to the qualified 
                participant; and
                    ``(E) any other matters that the Secretary 
                considers appropriate to carry out this section.
            ``(3) Notwithstanding any other provision of law, Federal 
        funds appropriated to any Federal land management agency may be 
        counted toward the remainder of the cost of a qualified 
        project.
    ``(f) Selection of Qualified Projects.--
            ``(1) The Secretary of the Interior, after consultation 
        with and in cooperation with the Secretary, shall determine the 
        final selection and funding of an annual program of qualified 
        projects in accordance with this section.
            ``(2) In determining whether to include a project in the 
        annual program of qualified projects, the Secretary of the 
        Interior shall consider--
                    ``(A) the justification for the qualified project, 
                including the extent to which the qualified project 
                would conserve resources, prevent or mitigate adverse 
                impact, and enhance the environment;
                    ``(B) the location of the qualified project, to 
                ensure that the selected qualified projects--
                            ``(i) are geographically diverse 
                        nationwide; and
                            ``(ii) include qualified projects in 
                        eligible areas located in both urban areas and 
                        rural areas;
                    ``(C) the size of the qualified project, to ensure 
                that there is a balanced distribution;
                    ``(D) the historical and cultural significance of a 
                qualified project;
                    ``(E) safety;
                    ``(F) the extent to which the qualified project 
                would-
                            ``(i) enhance livable communities;
                            ``(ii) reduce pollution (including noise 
                        pollution, air pollution, and visual 
                        pollution);
                            ``(iii) reduce congestion; and
                            ``(iv) improve the mobility of people in 
                        the most efficient manner; and
                    ``(G) any other matters that the Secretary 
                considers appropriate to carry out this section, 
                including-
                            ``(i) visitation levels;
                            ``(ii) the use of innovative financing or 
                        joint development strategies; and
                            ``(iii) coordination with gateway 
                        communities.
    ``(g) Qualified Projects Carried Out in Advance.--
            ``(1) When a qualified participant carries out any part of 
        a qualified project without assistance under this section in 
        accordance with all applicable procedures and requirements, the 
        Secretary, in consultation with the Secretary of the Interior, 
        may pay the share of the net capital project cost of a 
        qualified project if--
                    ``(A) the qualified participant applies for the 
                payment;
                    ``(B) the Secretary approves the payment; and
                    ``(C) before carrying out that part of the 
                qualified project, the Secretary approves the plans and 
                specifications in the same manner as plans and 
                specifications are approved for other projects assisted 
                under this section.
            ``(2)(A) The cost of carrying out part of a qualified 
        project under paragraph (1) includes the amount of interest 
        earned and payable on bonds issued by a State or local 
        governmental authority, to the extent that proceeds of the bond 
        are expended in carrying out that part.
            ``(B) The rate of interest under this paragraph may not 
        exceed the most favorable rate reasonably available for the 
        qualified project at the time of borrowing.
            ``(C) The qualified participant shall certify, in a manner 
        satisfactory to the Secretary, that the qualified participant 
        has exercised reasonable diligence in seeking the most 
        favorable interest rate.
    ``(h) Relationship to Other Laws.--
            ``(1) A qualified participant under this section is subject 
        to the requirements of section 5307 of this title to the extent 
        the Secretary considers appropriate.
            ``(2) Section 5333(b) of this title shall apply, provided 
        that the Secretary of Labor shall utilize a Special Warranty 
        that provides a fair and equitable arrangement to protect the 
        interest of employees.
            ``(3) The Secretary may waive the applicability of the 
        Special Warranty under paragraph (B) for private non-profit 
        subrecipients on a case-by-case basis as the Secretary deems 
        appropriate
            ``(4) A qualified participant under this section is subject 
        to any other terms, conditions, requirements, and provisions 
        that the Secretary determines to be appropriate to carry out 
        this section, including requirements for the distribution of 
        proceeds on disposition of real property and equipment 
        resulting from a qualified project assisted under this section.
            ``(5) If the amount of assistance anticipated to be 
        required for a qualified project under this section is 
        $75,000,000 or more, the qualified participant shall prepare a 
        project management plan in accordance with sections 5327(a) and 
        (b) of this title.
    ``(i) Asset Management.--The Secretary, in consultation with the 
Secretary of the Interior, may transfer the interest of the Department 
of Transportation in, and control over, all facilities and equipment 
acquired under this section to a qualified participant for use and 
disposition in accordance with any property management regulations that 
the Secretary determines to be appropriate.
    ``(j) Coordination of Research and Deployment of New 
Technologies.--
            ``(1) The Secretary, in cooperation with the Secretary of 
        the Interior, may undertake, or make grants, cooperative 
        agreements, contracts (including agreements with departments, 
        agencies, and instrumentalities of the Federal Government) or 
        other transactions for research, development, and deployment of 
        new technologies in eligible areas that will--
                    ``(A) conserve resources;
                    ``(B) prevent or mitigate adverse environmental 
                impact;
                    ``(C) improve visitor mobility, accessibility, and 
                enjoyment; and
                    ``(D) reduce pollution (including noise pollution 
                and visual pollution).
            ``(2) The Secretary may request and receive appropriate 
        information from any source.
            ``(3) Grants, cooperative agreements, contracts or other 
        transactions under paragraph (1) shall be awarded from amounts 
        allocated under subsection (c)(1).''.
    (b) Conforming Amendments.--The table of sections for chapter 53 is 
amended by inserting after the item relating to section 5315 the 
following:

``5316. National parks and public lands Legacy Project.''.

SEC. 3038. OVER-THE-ROAD BUS ACCESSIBILTY PROGRAM.

    (a) Section 3038 of the Transportation Equity Act for the 21st 
Century, Public Law 105-178, is amended--
            (1) by striking the section heading and inserting the 
        following: ``OVER-THE-ROAD BUS ACCESSIBILITY PROGRAM.'';
        and
            (2) by revising subsection (g) to read as follows:
    ``(g) Funding.--
            ``(1) Of the amounts made available by or appropriated 
        under section 5338(a)(2)(E) in each fiscal year, 75 percent 
        shall be available for operators of over-the-road buses used 
        substantially or exclusively in intercity, fixed-route over-
        the-road bus service to finance the incremental capital and 
        training costs of the Department of Transportation's final rule 
        regarding accessibility of over-the-road buses. Such amounts 
        shall remain available until expended.
            ``(2) Of the amounts made available by or appropriated 
        under section 5338(a)(2)(E) in each fiscal year, 25 percent 
        shall be available for operators of other over-the-road bus 
        service to finance the incremental capital and training costs 
        of the Department of Transportation's final rule regarding 
        accessibility of over-the-road buses. Such amounts shall remain 
        available until expended.''.
    (b) Conforming Amendments.--The item relating to section 3038 in 
the table of sections for the Transportation Equity Act for the 21st 
Century is amended to read as follows:

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

SEC. 3039. FORMULA GRANTS FOR SPECIAL NEEDS OF ELDERLY INDIVIDUALS AND 
              INDIVIDUALS WITH DISABILITIES.

    (a) In General.--Section 5310 is amended to read as follows:
    ``(a) General Authority.--
            ``(1) The Secretary may make grants to a State under this 
        section for capital public transportation projects planned, 
        designed, and carried out to meet the special needs of elderly 
        individuals and individuals with disabilities. A State may then 
        allocate the funds to--
                    ``(A) a private non-profit organization; or
                    ``(B) a governmental authority--
                            ``(i) approved by the State to coordinate 
                        services for elderly individuals and 
                        individuals with disabilities; or
                            ``(ii) that certifies that there are not 
                        any nonprofit organizations readily available 
                        in the area to provide the services described 
                        under this paragraph.
            ``(2) A capital public transportation project under this 
        section may include acquiring public transportation services as 
        an eligible capital expense.
            ``(3) A State may use not more than 15 percent of the 
        amounts apportioned under this section to administer, plan and 
        provided technical assistance for a project funded under this 
        section.
    ``(b) Apportionments.--
            ``(1) The Secretary shall apportion amounts made available 
        under section 5338(a)(2)(M) of this title under a formula the 
        Secretary administers that considers the number of elderly 
        individuals and individuals with disabilities in each State.
            ``(2) The recipient may transfer any funds apportioned to 
        it under this subsection to sections 5311(c) or 5336. Any funds 
        transferred pursuant to this subsection shall be made available 
        only for eligible projects selected under this section.
    ``(c) Government's Share.--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. The remainder--
            ``(1) 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
            ``(2) may be derived from amounts appropriated to or made 
        available to a department or agency of the Federal government 
        (other than the Department of Transportation, except for 
        Federal Land Highway funds) that are eligible to be expended 
        for transportation.
            ``(3) For purposes of paragraph (2), the prohibitions on 
        the use of funds for matching requirements under section 
        403(a)(5)(c)(vii) of the Social Security Act shall not apply to 
        federal or state funds to be used for transportation purposes.
    ``(d) Grant Requirements.--
            ``(1) A recipient of a grant under this section is subject 
        to all requirements of a grant under section 5307 of this title 
        to the extent the Secretary considers appropriate.''.
            ``(2) A recipient that transfers funds to section 5336 
        pursuant to subsection (b)(2) shall certify that the project 
        for which the funds are requested has been coordinated with 
        private non-profit providers of services under this section.
            ``(3) 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) 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 of Projects.--Amounts made available to carry 
out this subsection 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. 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 United 
States Government sources.
    ``(f) Leasing Vehicles.--Vehicles acquired under this section may 
be leased to local governmental authorities to improve transportation 
services designed to meet the special needs of elderly individuals and 
individuals with disabilities.
    ``(g) Homebound Individuals.--Public transportation service 
providers receiving assistance under this section or 5311(c) of this 
title may coordinate and assist in regularly providing meal delivery 
service for homebound individuals if the delivery service does not 
conflict with providing public transportation service or reduce service 
to public transportation passengers.
    ``(h) Transfers of Facilities and Equipment.--With the consent of 
the recipient currently having a facility or equipment acquired with 
assistance under this section, a State may transfer the facility or 
equipment to any recipient eligible to receive assistance under this 
chapter if the facility or equipment will continue to be used as 
required under this section.
    ``(i) Fares Not Required.--This chapter does not require that 
elderly individuals and individuals with disabilities be charged a 
fare.''.

SEC. 3040. JOB ACCESS AND REVERSE COMMUTE.

    (a) Section 5308 is amended to read as follows:
``Sec. 5308. Formula grants for job access and reverse commute projects
    ``(a) Definitions.--In this section,
            ``(1) `recipient' means a State that receives a grant under 
        this section directly; and
            ``(2) `subrecipient' means a State or local public 
        authority, a nonprofit organization, or a private operator of 
        public transportation service that may receive a grant under 
        this section indirectly through a recipient, rather than 
        directly from the Federal Government.''.
    ``(b) General Authority.--
            ``(1) The Secretary may make grants to a recipient under 
        this section for access to jobs and reverse commute projects to 
        a recipient.
            ``(2) A recipient may use not more than 15 percent of the 
        amounts apportioned under this section to administer, plan, and 
        provide technical assistance for a project funded under this 
        section.
    ``(c) Apportionments.--
            ``(1) The Secretary shall apportion amounts made available 
        under section 5338(a)(2)(M) of this title under a formula the 
        Secretary administers that considers the number of low income 
        people in each State.
            ``(2) The recipient may transfer any funds apportioned to 
        it under this subsection to sections 5311(c) or 5336. Any 
        apportionment transferred pursuant to this subsection shall be 
        made available for eligible job access and reverse commute 
        projects under this section.
    ``(d) Grant Requirements.--
            ``(1) A grant under this section is subject to the 
        requirements of 5307 to the extent the Secretary considers 
        appropriate.
            ``(2) Section 5333(b) of this title shall apply, provided 
        that the Secretary of Labor shall utilize a Special Warranty 
        that provides a fair and equitable arrangement to protect the 
        interest of employees.
            ``(3) The Secretary may waive the applicability of the 
        Special Warranty under paragraph (2) for private non-profit 
        subrecipients on a case-by-case basis as the Secretary deems 
        appropriate.
            ``(4) 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) Competitive Process.--
            ``(1) The recipient shall conduct a statewide solicitation 
        for applications for grants under this section.
            ``(2) Subrecipients seeking to receive a grant under this 
        section shall submit to the recipient an application in the 
        form and in accordance with such requirements as the recipient 
        shall establish.
            ``(3) Subrecipients submitting applications pursuant to 
        paragraph (2) shall be selected on a competitive basis.
    ``(f) Coordination.--
            ``(1) The Secretary shall coordinate activities under this 
        section with related activities under programs of other Federal 
        departments and agencies.
            ``(2) A recipient that transfers funds to section 5336 
        pursuant to subsection (c)(2) shall certify that the project 
        for which the funds are requested has been coordinated with 
        private non-profit providers of services under this section.
            ``(3) A recipient of funds under this section shall certify 
        that--
                    ``(A) the projects selected were derived from a 
                locally developed, coordinated public transit-human 
                services transportation plan; and
                    ``(B) the plan was developed through a process that 
                included representatives of public, private, and 
                nonprofit transportation and human services providers 
                and participation by the public;
    ``(g) Government's Share of Costs.--
            ``(1) 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. 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. 
        The remainder--
                    ``(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 
                Federal Government (other than the Department of 
                Transportation, except for Federal Land Highway funds) 
                that are eligible to be expended for transportation.
            ``(2) 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.
            ``(3) For purposes of paragraph (1)(B) of this section, the 
        prohibitions on the use of funds for matching requirements 
        under section 403(a)(5)(c)(vii) of the Social Security Act 
        shall not apply to Federal or State funds to be used for 
        transportation purposes.''
    (b) Conforming Amendment.--The table of sections for chapter 53 is 
amended after the item relating to section 5307 to read as follows:

``5308. Formula grants for job access and reverse commute projects.''.

                     TITLE IV--MOTOR CARRIER SAFETY

SEC. 4001. AUTHORIZATION OF APPROPRIATIONS.

    (a) Administrative Expenses.--Section 31104 of title 49, United 
States Code, is amended by adding the following at the end:
    ``(i) Administrative Expenses.--
            ``(1) There are authorized to be appropriated from the 
        Highway Trust Fund (other than the Mass Transit Account) for 
        the Secretary of Transportation to pay administrative expenses 
        of the Federal Motor Carrier Safety Administration--
                    ``(A) $224,406,000 for fiscal year 2004;
                    ``(B) $228,000,000 for fiscal year 2005;
                    ``(C) $233,000,000 for fiscal year 2006;
                    ``(D) $239,000,000 for fiscal year 2007;
                    ``(E) $244,000,000 for fiscal year 2008; and
                    ``(F) $250,000,000 for fiscal year 2009.
            ``(2) The funds authorized by this subsection shall be used 
        for personnel costs; administrative infrastructure; rent; 
        information technology; programs for research and technology, 
        information management, regulatory development (including a 
        medical review board and rules for medical examiners), 
        performance and registration information system management 
        (PRISM), a study of driver availability and retention, and 
        outreach and education; other operating expenses and similar 
        matters; and such other expenses as may from time to time 
        become necessary to implement statutory mandates not funded 
        from other sources.
            ``(3) The amounts made available under this section shall 
        remain available until expended.
            ``(4) Authorizations from the Highway Trust Fund (other 
        than the Mass Transit Account) to carry out subtitle IV, part 
        B, and subtitle VI, part B, of this title, or the provisions of 
        subtitle IV of the `Safe, Accountable, Flexible, and Efficient 
        Transportation Equity Act of 2003', shall be available for 
        obligation on the date of their apportionment or allocation or 
        on October 1 of the fiscal year for which they are authorized, 
        whichever occurs first.''.
    (b) Amendment to Title 23.--Section 104(a)(1) of title 23, United 
States Code, is amended by--
            (1) deleting subparagraph (B);
            (2) deleting the designation ``(A)'' at the beginning of 
        subparagraph (A) and redesignating subparagraphs (A)(i) and 
        (ii) as subparagraphs (A) and (B), respectively; and
            (3) deleting ``; and'' at the end of subparagraph (B), as 
        so redesignated, and inserting a period.
    (c) Grant Programs.--There are authorized to be appropriated from 
the Highway Trust Fund (other than the Mass Transit Account) for the 
following Federal Motor Carrier Safety Administration programs--
            (1) Commercial driver's license/driver improvement program 
        grants under section 4002(c)--
                    (A) $22,000,000 for fiscal year 2004;
                    (B) $22,000,000 for fiscal year 2005;
                    (C) $23,000,000 for fiscal year 2006;
                    (D) $23,000,000 for fiscal year 2007;
                    (E) $24,000,000 for fiscal year 2008; and
                    (F) $25,000,000 for fiscal year 2009.
            (2) Border enforcement grants under section 4002(b)--
                    (A) $ 32,000,000 for fiscal year 2004;
                    (B) $ 33,000,000 for fiscal year 2005;
                    (C) $ 33,000,000 for fiscal year 2006;
                    (D) $ 34,000,000 for fiscal year 2007;
                    (E) $ 35,000,000 for fiscal year 2008; and
                    (F) $ 36,000,000 for fiscal year 2009.
            (3) Performance and registration information system 
        management (PRISM) grant program under section 4016--
                    (A) $4,000,000 for fiscal year 2004;
                    (B) $4,000,000 for fiscal year 2005;
                    (C) $4,000,000 for fiscal year 2006;
                    (D) $4,000,000 for fiscal year 2007;
                    (E) $4,000,000 for fiscal year 2008; and
                    (F) $4,000,000 for fiscal year 2009.
    (d) Period of Availability.--The amounts made available under 
subsection (c) of this section shall remain available until expended.
    (e) Contract Authority.--Authorizations from the Highway Trust Fund 
(other than the Mass Transit Account) to carry out subsection (c) of 
this section shall be available for obligation on the date of their 
apportionment or allocation or on October 1 of the fiscal year for 
which they are authorized, whichever occurs first. Approval by the 
Secretary of a grant with funds made available under subsection (c) of 
this section imposes upon the United States Government a contractual 
obligation for payment of the Government's share of costs incurred in 
carrying out the objectives of the grant.

SEC. 4002. MOTOR CARRIER SAFETY GRANTS.

    (a) Motor Carrier Safety Assistance Program.--
            (1) Section 31102 of title 49, United States Code, is 
        amended--
                    (A) in subsection (b)(1), by amending paragraph (A) 
                to read as follows:
                    ``(A) implements performance-based activities.'';
                    (B) in subsection (b)(1), by deleting ``and'' at 
                the end of paragraph (S), replacing the period at the 
                end of paragraph (T) with a semicolon, and adding new 
                paragraphs (U) and (V), to read as follows:
                    ``(U) provides that the State will include in the 
                training manual for the licensing examination to drive 
                a non-commercial motor vehicle and a commercial motor 
                vehicle, information on best practices for driving 
                safely in the vicinity of commercial motor vehicles and 
                in the vicinity of non-commercial vehicles, 
                respectively; and
                    ``(V) provides that the State will enforce the 
                registration requirements of 49 U.S.C. 13902 by placing 
                out of service any vehicle discovered to be operating 
                without registration or beyond the scope of its 
                registration.''; and
                    (C) by revising subsection (c) to read as follows:
    ``(c) Use of Grants To Enforce Other Laws.--A State may use amounts 
received under a grant under subsection (a) of this section for the 
following activities:
            ``(1) If the activities are carried out in conjunction with 
        an appropriate inspection of the commercial motor vehicle to 
        enforce Government or State commercial motor vehicle safety 
        regulations:
                    ``(A) Enforcement of commercial motor vehicle size 
                and weight limitations at locations other than fixed 
                weight facilities, at specific locations such as steep 
                grades or mountainous terrains where the weight of a 
                commercial motor vehicle can significantly affect the 
                safe operation of the vehicle, or at ports where 
                intermodal shipping containers enter and leave the 
                United States.
                    ``(B) Detection of the unlawful presence of a 
                controlled substance (as defined under section 102 of 
                the Comprehensive Drug Abuse Prevention and Control Act 
                of 1970 (21 U.S.C. 802)) in a commercial motor vehicle 
                or on the person of any occupant (including the 
                operator) of the vehicle.
            ``(2) Documented enforcement of State traffic laws and 
        regulations designed to promote the safe operation of 
        commercial motor vehicles, including documented enforcement of 
        such laws and regulations against non-commercial motor vehicles 
        when necessary to promote the safe operation of commercial 
        motor vehicles.''.
            (2) Section 31103(b) of title 49, United States Code, is 
        amended to read as follows:
    ``(b) Other Activities.--
            ``(1) From the amounts designated under section 
        31104(f)(2), the Secretary may make a grant to a State agency, 
        local government, or other person for the full cost of 
        research, development, demonstration projects, public 
        education, and other special activities and projects relating 
        to commercial motor vehicle safety that are of benefit to all 
        jurisdictions or designed to address national safety concerns 
        and circumstances.
            ``(2) From the amounts designated under section 
        31104(f)(3), the Secretary may allocate safety performance 
        incentive funds to States without requiring a matching 
        contribution from such States.
            ``(3) From the amounts designated under section 
        31104(f)(4), the Secretary may allocate new entrant motor 
        carrier audit funds to States and local governments without 
        requiring a matching contribution from such States or local 
        governments. However, the Secretary may withhold such funds 
        from a State or local government that is unable to use 
        government employees to conduct new entrant motor carrier 
        audits, and may instead utilize the funds directly to conduct 
        audits in those jurisdictions.''.
            (3) Section 31104(a) of title 49, United States Code, is 
        amended to read as follows:
    -``(a) In General.--There are authorized to be appropriated from 
the Highway Trust Fund (other than the Mass Transit Account) to carry 
out section 31102:
            ``(1) Not more than $164,594,000 for fiscal year 2004.
            ``(2) Not more than $168,000,000 for fiscal year 2005.
            ``(3) Not more than $172,000,000 for fiscal year 2006.
            ``(4) Not more than $176,000,000 for fiscal year 2007.
            ``(5) Not more than $180,000,000 for fiscal year 2008.
            ``(6) Not more than $184,000,000 for fiscal year 2009.''.
            (4) Section 31104(f) is amended by revising paragraph (2) 
        and adding new paragraphs (3) and (4), to read as follows:
            ``(2) High-priority activities.--The Secretary may 
        designate up to 10 percent of amounts available for allocation 
        under paragraph (1) for States, local governments, and other 
        persons for carrying out high priority activities and projects 
        that improve commercial motor vehicle safety and compliance 
        with commercial motor vehicle safety regulations, including 
        activities and projects that are national in scope, increase 
        public awareness and education, or demonstrate new 
        technologies. The amounts designated under this paragraph shall 
        be allocated by the Secretary to State agencies, local 
        governments, and other persons that use and train qualified 
        officers and employees in coordination with State motor vehicle 
        safety agencies. Allocations under this paragraph do not 
        require a matching contribution from a State, local government, 
        or other person.
            ``(3) Safety performance incentive programs.--The Secretary 
        may designate up to 10 percent of the amounts available for 
        allocation under paragraph (1) for safety performance incentive 
        programs for States. The Secretary shall establish safety 
        performance criteria to be used to distribute incentive program 
        funds. Such criteria shall include, at a minimum, reduction in 
        the number and rate of fatal accidents involving commercial 
        motor vehicles. Allocations under this paragraph do not require 
        a matching contribution from a State.
            ``(4) New entrant audits.--The Secretary may designate up 
        to $17,000,000 of the amounts available for allocation 
under paragraph (1) for audits of new entrant motor carriers conducted 
pursuant to section 210 of the Motor Carrier Safety Improvement Act of 
1999, 113 Stat. 1764. Allocations under this paragraph do not require a 
matching contribution from a State or local government.''.
    (b) Grants to States for Border Enforcement.--Chapter 311 of title 
49, United States Code, is amended by revising section 31107 to read as 
follows:
``Sec. 31107. Border enforcement grants
    ``(a) General Authority.--From the funds authorized by sections 
4001(c)(2) of the Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2003, the Secretary may make a grant in a 
fiscal year to a State, except as otherwise provided in subsection (c), 
that shares a border with another country for carrying out border 
commercial motor vehicle safety programs and related enforcement 
activities and projects.
    ``(b) Maintenance of Expenditures.--Except as otherwise provided in 
subsection (c), the Secretary may make a grant to a State under this 
section only if the State agrees that the total expenditure of amounts 
of the State and political subdivisions of the State, exclusive of 
United States Government amounts, for carrying out border commercial 
motor vehicle safety programs and related enforcement activities and 
projects will be maintained at a level at least equal to the average 
level of that expenditure by the State and political subdivisions of 
the State for the last two State or Federal fiscal years before October 
1, 2003.
    ``(c) Government Share.--The Secretary may make a grant to a State 
agency, local government, or other person for the full cost of 
research, development, demonstration projects, public education, and 
other special activities and projects relating to cross-border 
operations of commercial motor vehicles that are beneficial to all 
jurisdictions or designed to address national safety concerns and 
circumstances.
    ``(d) Availability of Amounts.--Amounts made available to a State 
under section 4001(c)(2) of the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003 to carry out this section 
shall remain available until expended.
    ``(e) Grants as Contractual Obligations.--Approval by the Secretary 
of a grant with funds made available under section 4001(c)(2) of the 
Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 
2003 imposes upon the United States Government contractual obligation 
for payment of the amount of the grant.''.
    (c) Grants to States for Commercial Driver's License 
Improvements.--Chapter 313 of title 49, United States Code, is amended 
by adding new section 31318 at the end, to read as follows:
``Sec. 31318. Grants for commercial driver's license program 
              improvements
    ``(a) General Authority.--From the funds authorized by section 
4001(c)(1) of the Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2003, the Secretary may make a grant to a 
State, except as otherwise provided in subsection (e), in a fiscal year 
to improve its implementation of the commercial driver's license 
program, providing the State is in substantial compliance with the 
requirements of section 31311 and this section. The Secretary shall 
establish criteria for the distribution of grants and notify the States 
annually of such criteria.
    ``(b) Conditions.--Except as otherwise provided in subsection (e), 
a State may use a grant under this section only for expenses directly 
related to its commercial driver's license program, including, but not 
limited to, computer hardware and software, publications, testing, 
personnel, training, and quality control. The grant may not be used to 
rent, lease, or buy land or buildings. The Secretary may allocate the 
funds appropriated for such grants in a fiscal year among the eligible 
States whose applications for grants have been approved, under criteria 
that best serve the purposes of this section.
    ``(c) Maintenance of Expenditures.--Except as otherwise provided in 
subsection (e), the Secretary may make a grant to a State under this 
section only if the State agrees that the total expenditure of amounts 
of the State and political subdivisions of the State, exclusive of 
United States Government amounts, for the operation of the commercial 
driver's license program will be maintained at a level at least equal 
to the average level of that expenditure by the State and political 
subdivisions of the State for the last 2 fiscal years before October 1, 
2003
    ``(d) Government Share.--Except as otherwise provided in subsection 
(e), the Secretary shall reimburse a State, from a grant made under 
this section, an amount that is not more than 80 percent of the costs 
incurred by the State in a fiscal year in implementing the commercial 
driver's license improvements described in subsection (b). In 
determining those costs, the Secretary shall include in-kind 
contributions by the State. Amounts of the State required to be 
expended under subsection (c) may not be included as part of the share 
not provided by the United States Government.
    ``(e) High-Priority Activities.--
            ``(1) The Secretary may make a grant to a State agency, 
        local government, or other person for the full cost of 
        research, development, demonstration projects, public 
        education, or other special activities and projects relating to 
        commercial driver licensing and motor vehicle safety that are 
        of benefit to all jurisdictions or designed to address national 
        safety concerns and circumstances.
            ``(2) The Secretary may designate up to 10 percent of the 
        amounts made available under section 4001(c)(1) of the Safe, 
        Accountable, Flexible, and Efficient Transportation Equity Act 
        of 2003 in a fiscal year for high-priority activities under 
        subsection (e)(1).
    ``(f) Emerging Issues.--The Secretary may designate up to 25 
percent of the amounts made available under section 4001(c)(1) of the 
Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 
2003 in a fiscal year for allocation to a State agency, local 
government, or other person at the discretion of the Secretary to 
address emerging issues relating to commercial driver's license 
improvements.
    ``(g) Government Share.--Except as otherwise provided in 
subsections (e) and (f), all amounts available in a fiscal year to 
carry out this section shall be apportioned to States according to a 
formula prescribed by the Secretary.
    ``(h) Deduction for Administrative Expenses.--On October 1 of each 
fiscal year or as soon after that date as practicable, the Secretary 
may deduct, from amounts made available under section 4001(c)(1) of the 
Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 
2003 for that fiscal year, up to 1.25 percent of those amounts for 
administrative expenses incurred in carrying out this section in that 
fiscal year.
    ``(i) Availability of Amounts.--Amounts made available to a State 
under section 4001(c)(1) of the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003 to carry out this section 
shall remain available until expended.
    ``(j) Grants as Contractual Obligations.--Approval by the Secretary 
of a grant with funds made available under section 4001(c)(1) of the 
Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 
2003 imposes upon the United States Government a contractual obligation 
for payment of the amount of the grant.''.
    (d) Noncompliance With CDL Requirements.--Subsections (a) and (b) 
of section 31314 of title 49, United States Code, are amended to read 
as follows:
    ``(a) First Fiscal Year.--The Secretary of Transportation shall 
withhold up to 5 percent of the amount required to be apportioned to a 
State under section 104(b)(1), (3), and (4) of title 23 on the first 
day of the fiscal year after the first fiscal year beginning after 
September 30, 1992, throughout which the State does not comply 
substantially with a requirement of section 31311(a) of this title.
    ``(b) Second Fiscal Year.--The Secretary shall withhold up to 10 
percent of the amount required to be apportioned to a State under 
section 104(b)(1), (3), and (4) of title 23 on the first day of each 
fiscal year after the 2d fiscal year beginning after September 30, 
1992, throughout which the State does not comply substantially with a 
requirement of section 31311(a) of this title.''.
    (e) Conforming Amendments--
            (1) The table of sections at the beginning of chapter 311 
        of title 49, United States Code, is amended by--
                    (A) revising the heading of Subchapter I to read as 
                follows:

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

                and
                    (B) revising the item relating to section 31107 to 
                read as follows:

``31107. Border enforcement grants.''.
            (2) Chapter 311 of title 49, United States Code, is amended 
        following the table of sections by striking--

                     ``SUBCHAPTER I--STATE GRANTS''

        and substituting--

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

            (3) The table of sections at the beginning of chapter 313 
        of title 49, United States Code, is amended after the item 
        relating to section 31317 by adding the following:

``31318. Grants for commercial driver's license program 
                            improvements.''.

SEC. 4003. HOBBS ACT.

    (a) Section 2342(3)(A) of title 28, United States Code, is amended 
to read as follows:
                    ``(A) the Secretary of Transportation issued 
                pursuant to section 2, 9, 37, or 41 of the Shipping 
                Act, 1916 (46 U.S.C. App. 802, 803, 808, 835, 839, and 
                841a) or pursuant to part B or C of subtitle IV of 
                title 49 [49 U.S.C. chapters 131-161] or pursuant to 
                subchapter III of chapter 311, chapter 313, and chapter 
                315 of part B of subtitle VI of title 49; and''.
    (b) Section 351(a) of title 49, United States Code, is amended to 
read as follows:
    ``(a) Judicial Review.--An action of the Secretary of 
Transportation in carrying out a duty or power transferred under the 
Department of Transportation Act (Public Law 89-670, 80 Stat. 931), or 
an action of the Administrator of the Federal Railroad Administration, 
Federal Motor Carrier Safety Administration, or the Federal Aviation 
Administration in carrying out a duty or power specifically assigned to 
the Administrator by that Act, may be reviewed judicially to the same 
extent and in the same way as if the action had been an action by the 
department, agency, or instrumentality of the United States Government 
carrying out the duty or power immediately before the transfer or 
assignment.''.
    (c) Section 352 of title 49, United States Code, is amended to read 
as follows:
``Sec. 352. Authority to carry out certain transferred duties and 
              powers
    ``In carrying out a duty or power transferred under the Department 
of Transportation Act (Public Law 89-670, 80 Stat. 931), the Secretary 
of Transportation and the Administrators of the Federal Railroad 
Administration, the Federal Motor Carrier Safety Administration, and 
the Federal Aviation Administration have the same authority that was 
vested in the department, agency, or instrumentality of the United 
States Government carrying out the duty or power immediately before the 
transfer. An action of the Secretary or Administrator in carrying out 
the duty or power has the same effect as when carried out by the 
department, agency, or instrumentality.''.

SEC. 4004. PENALTY FOR DENIAL OF ACCESS TO RECORDS.

    Section 521(b)(2) of title 49, United States Code, is amended by 
adding new subparagraph (E) at the end, to read as follows:
                    ``(E) Copying of records and access to equipment, 
                lands, and buildings.--A person subject to chapter 51 
                of subtitle III, Part B of Subtitle IV, or Part B of 
                Subtitle VI of this title who fails to allow the 
                Secretary, or an employee designated by the Secretary, 
                promptly upon demand to inspect and copy any record or 
                inspect and examine equipment, lands, buildings and 
                other property in accordance with sections 504(c), 
                5121(c), and 14122(b) of this title shall be liable to 
                the United States for a civil penalty not to exceed 
                $500 for each offense, and each day the Secretary is 
denied the right to inspect and copy any record or inspect and examine 
equipment, lands, buildings and other property shall constitute a 
separate offense, except that the total of all civil penalties against 
any violator for all offenses related to a single violation shall not 
exceed $5,000. It shall be a defense to such penalty that the records 
did not exist at the time of the Secretary's request or could not be 
timely produced without unreasonable expense or effort. Nothing herein 
amends or supersedes any remedy available to the Secretary under 
sections 502(d), 507(c), or other provision of this title.''.

SEC. 4005. MEDICAL REVIEW BOARD AND MEDICAL EXAMINERS.

    (a) Medical Review Board.--
            (1) Establishment and function.--The Federal Motor Carrier 
        Safety Administrator shall establish a Medical Review Board as 
        an advisory committee to provide the Federal Motor Carrier 
        Safety Administration with medical advice and recommendations 
        on driver qualification medical standards and guidelines, 
        medical examiner education, and medical research.
            (2) Composition.--The Medical Review Board shall be 
        appointed by the Secretary and shall consist of 5 members 
        selected from medical institutions and private practice. The 
        membership shall reflect expertise in a variety of specialties 
        relevant to the functions of the Federal Motor Carrier Safety 
        Administration.
            (3) Termination date.--The Medical Review Board shall 
        remain in effect until September 30, 2009.
    (b) Medical Examiners.--Section 31136(a)(3) of title 49, United 
States Code, is amended to read as follows:
            ``(3) the physical condition of operators of commercial 
        motor vehicles is adequate to enable them to operate the 
        vehicles safely, and the periodic physical examinations 
        required of such operators are performed by medical examiners 
        who have received training in physical and medical examination 
        standards and are listed on a national registry maintained by 
        the Department of Transportation;''.

SEC. 4006. ENFORCEMENT OF HOUSEHOLD GOODS REGULATIONS.

    (a) Dispute Settlement Program for Household Goods Carriers.--
            (1) Section 14708(a) of title 49, United States Code, is 
        amended to read as follows:
    ``(a) Shipper Arbitration.--
            ``(1) As a condition of registration under section 13902 or 
        13903, a carrier providing transportation of household goods 
        subject to jurisdiction under subchapter I or III of chapter 
        135 must agree to offer in accordance with this section to 
        shippers of household goods arbitration as a means of settling 
        disputes between such carriers and shippers. However, the 
        carrier may not require the shipper to agree to use arbitration 
        prior to the time that a dispute arises.
            ``(2) If the dispute involves a claim for $5,000 or less 
        and the shipper requests arbitration, such arbitration shall be 
        binding on the parties. If the dispute involves a claim for 
        more than $5,000 and the shipper requests arbitration, such 
        arbitration shall be binding on the parties only if the carrier 
        agrees to arbitration.''.
            (2) Subsection (b)(6) of section 14708 is deleted, and 
        subsections (b)(7) and (b)(8) are redesignated as subsections 
        (b)(6) and (b)(7), respectively.
    (b)(1) Chapter 147 of title 49, United States Code, is amended by 
adding new section 14710 at the end, to read as follows:
``Sec. 14710. Enforcement by State attorneys general
    ``(a) In General.--A State, as parens patriae, may bring a civil 
action on behalf of its residents in an appropriate district court of 
the United States to enforce this part, or a regulation or order of the 
Secretary or Board, as applicable, or to impose the civil penalties 
authorized by this part or such regulation or order, whenever the 
attorney general of the State has reason to believe that the interests 
of the residents of the State have been or are being threatened or 
adversely affected by (1) a carrier or broker providing transportation 
subject to jurisdiction under subchapter I or III of chapter 135 of 
this title, or (2) a foreign motor carrier providing transportation 
registered under section 13902 of this title, that is engaged in 
household goods transportation that violates this part or a regulation 
or order of the Secretary or Board, as applicable.
    ``(b) Notice.--The State shall serve prior written notice of any 
civil action under subsection (a) or (e)(2) upon the Secretary or 
Board, as applicable, and provide the Secretary or Board with a copy of 
its complaint, except that if it is not feasible for the State to 
provide such prior notice, the State shall serve such notice 
immediately upon instituting such action. Upon receiving a notice 
respecting a civil action, the Secretary or Board shall have the 
right--
            ``(1) to intervene in such action;
            ``(2) upon so intervening, to be heard on all matters 
        arising therein; and
            ``(3) to file petitions for appeal.
    ``(c) Construction.--For purposes of bringing any civil action 
under subsection (a), nothing in this Act shall prevent an attorney 
general from exercising the powers conferred on the attorney general by 
the laws of such State to conduct investigations or to administer oaths 
or affirmations or to compel the attendance of witnesses or the 
production of documentary and other evidence.
    ``(d) Venue; Service of Process.--In a civil action brought under 
subsection (a) of this section--
            ``(1) trial is in the judicial district in which--
                    ``(A) the carrier, foreign motor carrier, or broker 
                operates;
                    ``(B) the carrier, foreign motor carrier, or broker 
                was authorized to provide transportation or service 
                under this part when the violation occurred; or
                    ``(C) the offender is found;
            ``(2) process may be served without regard to the 
        territorial limits of the district or of the State in which the 
        action is instituted; and
            ``(3) a person participating with a carrier or broker in a 
        violation may be joined in the civil action without regard to 
        the residence of the person.
    ``(e) Actions by Other State Officials.--
            ``(1) Nothing contained in this section shall prohibit an 
        authorized State official from proceeding in State court on the 
        basis of an alleged violation of any criminal statute of such 
        State.
            ``(2) In addition to actions brought by an attorney general 
        of a State under subsection (a), such an action may be brought 
        by officers of such State who are authorized by the State to 
        bring actions in such State on behalf of its residents.''.
            (2) Conforming amendment.--The table of sections at the 
        beginning of chapter 147 of title 49, United States Code, is 
        amended by inserting after the item relating to section 14709 
        the following:

``14710. Enforcement by State attorneys general.''.

SEC. 4007. REGISTRATION OF COMMERCIAL MOTOR CARRIERS, FREIGHT 
              FORWARDERS, AND BROKERS.

    (a) Sections 13102(6), (7), (12) and (13) of title 49, United 
States Code, are amended to read as follows:
            ``(6) Foreign motor carrier.--The term `foreign motor 
        carrier' means a person (including a motor carrier of property 
        but excluding a motor private carrier)--
                    ``(A)(i) that is domiciled in a contiguous foreign 
                country; or
                    ``(ii) that is owned or controlled by persons of a 
                contiguous foreign country; and
                    ``(B) in the case of a person that is not a motor 
                carrier of property, that provides interstate 
                transportation of property by commercial motor vehicle, 
                as defined in section 31132(1) of this title, under an 
                agreement or contract entered into with a motor carrier 
                of property (other than a motor private carrier or a 
                motor carrier of property described in subparagraph 
                (A)).
            ``(7) Foreign motor private carrier.--The term `foreign 
        motor private carrier' means a person (including a motor 
        private carrier but excluding a motor carrier of property)--
                    ``(A)(i) that is domiciled in a contiguous foreign 
                country; or
                    ``(ii) that is owned or controlled by persons of a 
                contiguous foreign country; and
                    ``(B) in the case of a person that is not a motor 
                private carrier, that provides interstate 
                transportation of property by commercial motor vehicle, 
                as defined in section 31132(1) of this title, under an 
                agreement or contract entered into with a person (other 
                than a motor carrier of property or a motor private 
                carrier described in subparagraph (A)).''
            ``(12) Motor carrier.--The term `motor carrier' means a 
        person providing transportation for compensation by commercial 
        motor vehicle, as defined in section 31132(1) of this title.
            ``(13) Motor private carrier.--The term `motor private 
        carrier' means a person, other than a motor carrier, 
        transporting property by commercial motor vehicle, as defined 
        in section 31132(1) of this title, when--
                    ``(A) the transportation is as provided in section 
                13501 of this title;
                    ``(B) the person is the owner, lessee, or bailee of 
                the property being transported; and
                    ``(C) the property is being transported for sale, 
                lease, rent, or bailment or to further a commercial 
                enterprise.''.
    (b) Section 13903(a) of title 49, United States Code, is amended to 
read as follows:
    ``(a) In General.--
            ``(1) The Secretary of Transportation shall register a 
        person to provide service subject to jurisdiction under 
        subchapter III of chapter 135 as a freight forwarder of 
        household goods if the Secretary finds that the person is fit, 
        willing, and able to provide the service and to comply with 
        this part and applicable regulations of the Secretary and the 
        Board.
            ``(2) The Secretary may register a person to provide 
        service subject to jurisdiction under subchapter III of chapter 
        135 as a freight forwarder if the Secretary finds that such 
        registration is needed for the protection of shippers and that 
        the person is fit, willing, and able to provide the service and 
        to comply with this part and applicable regulations of the 
        Secretary and Board.''.
    (c) Section 13904(a) of title 49, United States Code, is amended to 
read as follows:
    ``(a) In General.--
            ``(1) The Secretary of Transportation shall register, 
        subject to section 13906(b), a person to be a broker for 
        transportation of household goods subject to jurisdiction under 
        subchapter I of chapter 135, if the Secretary finds that the 
        person is fit, willing, and able to be a broker for 
        transportation of household goods and to comply with this part 
        and applicable regulations of the Secretary.
            ``(2) The Secretary may register, subject to section 
        13906(b), a person to be a broker for transportation of other 
        property subject to jurisdiction under subchapter I of chapter 
        135, if the Secretary finds that such registration is needed 
        for the protection of shippers and that the person is fit, 
        willing, and able to be a broker for transportation and to 
        comply with this part and applicable regulations of the 
        Secretary.''.

SEC. 4008. FINANCIAL RESPONSIBILITY FOR PRIVATE MOTOR CARRIERS.

    (a)(1) Section 31138(a) of title 49, United States Code, is amended 
to read as follows:
    ``(a) General Requirement.--The Secretary of Transportation shall 
prescribe regulations to require minimum levels of financial 
responsibility sufficient to satisfy liability amounts established by 
the Secretary covering public liability and property damage for the 
transportation of passengers by motor vehicle in the United States 
between a place in a State and--
            ``(1) a place in another State;
            ``(2) another place in the same State through a place 
        outside of that State; or
            ``(3) a place outside the United States.''.
    (2) Section 31138(c) of title 49, United States Code, is amended by 
adding paragraph (4) at the end, to read as follows:
            ``(4) The Secretary may require a person, other than a 
        motor carrier as defined in section 13102(12) of this title, 
        transporting passengers by motor vehicle to file with the 
        Secretary the evidence of financial responsibility specified in 
        subsection (c)(1) of this section in an amount not less than 
        that required by this section, and the laws of the State or 
        States in which the person is operating, to the extent 
        applicable. The amount of the financial responsibility must be 
        sufficient to pay, not more than the amount of the financial 
        responsibility, for each final judgment against the person for 
        bodily injury to, or death of, an individual resulting from the 
        negligent operation, maintenance, or use of motor vehicles, or 
        for loss or damage to property, or both.''.
    (b)(1) Section 31139(b)(1) of title 49, United States Code, is 
amended to read as follows:
    ``(b) General Requirements and Minimum Amount.--
            ``(1) The Secretary of Transportation shall prescribe 
        regulations to require minimum levels of financial 
        responsibility sufficient to satisfy liability amounts 
        established by the Secretary covering public liability, 
        property damage, and environmental restoration for the 
        transportation of property by motor vehicle in the United 
        States between a place in a State and--
                    ``(A) a place in another State;
                    ``(B) another place in the same State through a 
                place outside of that State; or
                    ``(C) a place outside the United States.''.
    (2) Subsections (c) through (g) of section 31139 of title 49, 
United States Code, are redesignated as subsections (d) through (h), 
and new subsection (c) is inserted after subsection (b), to read as 
follows:
    ``(c) Filing of Evidence of Financial Responsibility.--The 
Secretary may require a motor private carrier, as defined in section 
13102 of this title, to file with the Secretary the evidence of 
financial responsibility specified in subsection (b) of this section in 
an amount not less than that required by this section, and the laws of 
the State or States in which the motor private carrier is operating, to 
the extent applicable. The amount of the financial responsibility must 
be sufficient to pay, not more than the amount of the financial 
responsibility, for each final judgment against the motor private 
carrier for bodily injury to, or death of, an individual resulting from 
negligent operation, maintenance, or use of motor vehicles, or for loss 
or damage to property, or both.''.

SEC. 4009. INCREASED PENALTIES FOR OUT-OF-SERVICE VIOLATIONS AND FALSE 
              RECORDS.

    (a) Section 521(b)(2)(B) of title 49, United States Code, is 
amended to read as follows:
    ``(B) Recordkeeping and Reporting Violations.--A person required to 
make a report to the Secretary, answer a question, or make, prepare, or 
preserve a record under section 504 of this title or under any 
regulation issued by the Secretary pursuant to subchapter III of 
chapter 311 (except sections 31138 and 31139) or section 31502 of this 
title about transportation by motor carrier, motor carrier of migrant 
workers, or motor private carrier, or an officer, agent, or employee of 
that person--
            ``(i) who does not make that report, does not specifically, 
        completely, and truthfully answer that question in 30 days from 
        the date the Secretary requires the question to be answered, or 
        does not make, prepare, or preserve that record in the form and 
        manner prescribed by the Secretary, shall be liable to the 
        United States for a civil penalty in an amount not to exceed 
        $1,000 for each offense, and each day of the violation shall 
        constitute a separate offense, except that the total of all 
        civil penalties assessed against any violator for all offenses 
        related to any single violation shall not exceed $10,000; or
            ``(ii) who knowingly falsifies, destroys, mutilates, or 
        changes a required report or record, knowingly files a false 
        report with the Secretary, knowingly makes or causes or permits 
        to be made a false or incomplete entry in that record about an 
        operation or business fact or transaction, or knowingly makes, 
        prepares, or preserves a record in violation of a regulation or 
        order of the Secretary, shall be liable to the United States 
        for a civil penalty in an amount not to exceed $10,000 for each 
        violation, if any such action can be shown to have 
        misrepresented a fact that constitutes a violation other than a 
        reporting or recordkeeping violation.''.
    (b) Section 31310(i)(2) of title 49, United States Code, is amended 
to read as follows:
    ``(2) The Secretary shall prescribe regulations establishing 
sanctions and penalties related to violations of out-of-service orders 
by individuals operating commercial motor vehicles. The regulations 
shall require at least that--
            ``(A) an operator of a commercial motor vehicle found to 
        have committed a first violation of an out-of-service order 
        shall be disqualified from operating such a vehicle for at 
        least 180 days and liable for a civil penalty of at least 
        $2,500;
            ``(B) an operator of a commercial motor vehicle found to 
        have committed a second violation of an out-of-service order 
        shall be disqualified from operating such a vehicle for at 
least 2 years and not more than 5 years and liable for a civil penalty 
of at least $5,000; -
            ``(C) an employer that knowingly allows or requires an 
        employee to operate a commercial motor vehicle in violation of 
        an out-of-service order shall be liable for a civil penalty of 
        not more than $25,000; and
            ``(D) an employer that knowingly and willfully allows or 
        requires an employee to operate a commercial motor vehicle in 
        violation of an out-of-service order shall, upon conviction, be 
        subject for each offense to imprisonment for a term not to 
        exceed one year or a fine under title 18, United States Code, 
        or both.''.

SEC. 4010. ELIMINATION OF COMMODITY AND SERVICE EXEMPTIONS.

    (a) Section 13506(a) of title 49, United States Code, is amended--
            (1) by deleting paragraphs (2), (6), (11), (12), (13), and 
        (15); and
            (2) by redesignating paragraphs (3), (4), (5), (7), (8), 
        (9), (10), and (14) as paragraphs (2), (3), (4), (5), (6), (7), 
        (8), and (9), respectively.
    (b) The first sentence of section 13507 of title 49, United States 
Code, is amended to read as follows: ``A motor carrier of property 
providing transportation exempt from jurisdiction under paragraph (6) 
of section 13506(a) may transport property under such paragraph in the 
same vehicle and at the same time as property which the carrier is 
authorized to transport under a registration issued under section 
13902(a).''.

SEC. 4011. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS.

    (a) Subsection (a) of section 31144 of title 49, United States 
Code, is amended to read as follows:
    ``(a) In General.--The Secretary shall--
            ``(1) determine whether an owner or operator is fit to 
        operate safely commercial motor vehicles, utilizing among other 
        things the accident record of an owner or operator operating in 
        interstate commerce and the accident record and safety 
        inspection record of such owner or operator in operations that 
        affect interstate commerce;
            ``(2) periodically update such safety fitness 
        determinations;
            ``(3) make such final safety fitness determinations readily 
        available to the public; and
            ``(4) prescribe by regulation penalties for violations of 
        this section consistent with section 521.''.
    (b) Subsection (c) of section 31144 of title 49, United States 
Code, is amended by adding new paragraph (5) at the end, to read as 
follows:
    ``(5) Transportation Affecting Interstate Commerce.--Owners or 
operators of commercial motor vehicles prohibited from operating in 
interstate commerce pursuant to paragraphs (1) through (3) of this 
section may not operate any commercial motor vehicle that affects 
interstate commerce until the Secretary determines that such owner or 
operator is fit.''.
    (c) Subsections (d) and (e) of section 31144 of title 49, United 
States Code, are redesignated as subsections (e) and (f), respectively, 
and new subsection (d) is added after subsection (c), to read as 
follows:
    ``(d) Determination of Unfitness by a State.--If a State that 
receives Motor Carrier Safety Assistance Program funds pursuant to 
section 31102 of this title determines, by applying the standards 
prescribed by the Secretary under subsection (b) of this section, that 
an owner or operator of commercial motor vehicles that has its 
principal place of business in that State and operates in intrastate 
commerce is unfit under such standards and prohibits the owner or 
operator from operating such vehicles in the State, the Secretary shall 
prohibit the owner or operator from operating such vehicles in 
interstate commerce until the State determines that the owner or 
operator is fit.''.

SEC. 4012. AUTHORITY TO STOP COMMERCIAL MOTOR VEHICLES.

    (a) Chapter 2 of title 18, United States Code, is amended by adding 
at the end new section 38, to read as follows:
``Sec. 38. Commercial motor vehicles required to stop for inspections
    ``(a) A driver of a commercial motor vehicle, as defined in 49 
U.S.C. 31132(1), shall stop and submit to inspection of the vehicle, 
driver, cargo, and required records when directed to do so by a 
uniformed special agent of the Federal Motor Carrier Safety 
Administration, Department of Transportation, at or in the vicinity of 
an inspection site. The driver shall not leave the inspection site 
until authorized to do so by an agent.
    ``(b) A driver of a commercial motor vehicle, as defined in 
subsection (a), who knowingly fails to stop for inspection when 
directed to do so by a uniformed special agent of the Federal Motor 
Carrier Safety Administration at or in the vicinity of an inspection 
site, or leaves the inspection site without authorization, shall be 
fined under this title or imprisoned not more than one year, or 
both.''.
    (b) Chapter 203 of title 18, United States Code, is amended by 
adding at the end new section 3064, to read as follows:
``Sec. 3064. Powers of Federal Motor Carrier Safety Administration
    ``Uniformed special agents of the Federal Motor Carrier Safety 
Administration may direct a driver of a commercial motor vehicle, as 
defined in 49 U.S.C. 31132(1), to stop for inspection of the vehicle, 
driver, cargo, and required records at or in the vicinity of an 
inspection site.''.
    (c) Conforming Amendments.--
            (1) The table of sections at the beginning of chapter 2 of 
        title 18, United States Code, is amended by inserting after the 
        item relating to section 37 the following:

``38. Commercial motor vehicles required to stop for inspections.''.
            (2) The table of sections at the beginning of chapter 203 
        of title 18, United States Code, is amended by inserting after 
        the item relating to section 3063 the following:

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

SEC. 4013. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT.

    (a) Section 31135 of title 49, United States Code, is amended by 
designating the existing text as subsection ``(a) In General.--'' and 
adding new subsections (b), (c), (d), and (e), to read as follows:
    ``(b) Pattern of Noncompliance.--If an officer of a motor carrier 
engages in a pattern or practice of avoiding compliance, or masking or 
otherwise concealing non-compliance, with regulations on commercial 
motor vehicle safety prescribed under this subchapter, the Secretary 
may suspend, amend, or revoke any part of the motor carrier's 
registration under section 13905 of this title.
    ``(c) List of Proposed Officers.--Each person seeking registration 
as a motor carrier under section 13902 of this title shall submit a 
list of the proposed officers of the motor carrier. If the Secretary 
determines that any of the proposed officers has previously engaged in 
a pattern or practice of avoiding compliance, or masking or otherwise 
concealing non-compliance, with regulations on commercial motor vehicle 
safety prescribed under this chapter, the Secretary may deny the 
person's application for registration as a motor carrier under section 
13902(a)(3).
    ``(d) Regulations.--The Secretary shall by regulation establish 
standards to implement subsections (b) and (c).
    ``(e) Definitions.--In this section --
            ``(1) `motor carrier' has the same meaning as in section 
        13102(12) of this title; and
            ``(2) `officer' means an owner, chief executive officer, 
        chief operating officer, chief financial officer, safety 
        director, vehicle maintenance supervisor and driver supervisor 
        of a motor carrier, regardless of the title attached to those 
        functions.''.
    (b) Section 13902(a)(1)(B) of title 49, United States Code, is 
amended to read as follows:
                    ``(B) any safety regulations imposed by the 
                Secretary; the duties of employers and employees 
                established by the Secretary under section 31135; and 
                the safety fitness requirements established by the 
                Secretary under section 31144; and''.

SEC. 4014. MOTOR CARRIER RESEARCH AND TECHNOLOGY PROGRAM.

    (a) In General.--Title 49, United States Code, is amended by 
repealing section 31108 and inserting the following new section, to 
read as follows:
``Sec. 31108. Motor carrier research and technology program
    ``(a) Research, Technology and Technology Transfer Activities.--
            ``(1) The Secretary of Transportation shall establish and 
        carry out a motor carrier research and technology program. The 
        Secretary may carry out research, development, technology, and 
        technology transfer activities with respect to--
                    ``(A) the causes of accidents, injuries and 
                fatalities involving commercial motor vehicles; and
                    ``(B) means of reducing the number and severity of 
                accidents, injuries and fatalities involving commercial 
                motor vehicles.
            ``(2) The Secretary may test, develop, or assist in testing 
        and developing any material, invention, patented article, or 
        process related to the research and technology program.
            ``(3) The Secretary may use the funds appropriated to carry 
        out this section for training or education of commercial motor 
        vehicle safety personnel, including, but not limited to, 
        training in accident reconstruction and detection of controlled 
        substances or other contraband, and stolen cargo or vehicles.
            ``(4) The Secretary may carry out this section--
                    ``(A) independently;
                    ``(B) in cooperation with other Federal 
                departments, agencies, and instrumentalities and 
                Federal laboratories; or
                    ``(C) by making grants to, or entering into 
                contracts, cooperative agreements, and other 
                transactions with, any Federal laboratory, State 
                agency, authority, association, institution, for-profit 
                or non-profit corporation, organization, foreign 
                country, or person.
            ``(5) The Secretary shall use funds made available to carry 
        out this section to develop, administer, communicate, and 
        promote the use of products of research, technology, and 
        technology transfer programs under this section.
    ``(b) Collaborative Research and Development.--
            (1) To advance innovative solutions to problems involving 
        commercial motor vehicle and motor carrier safety, security, 
        and efficiency, and to stimulate the deployment of emerging 
        technology, the Secretary may carry out, on a cost-shared 
        basis, collaborative research and development with--
                    ``(A) non-Federal entities, including State and 
                local governments, foreign governments, colleges and 
                universities, corporations, institutions, partnerships, 
                and sole proprietorships that are incorporated or 
                established under the laws of any State; and
                    ``(B) Federal laboratories.
            ``(2) In carrying out this subsection, the Secretary may 
        enter into cooperative research and development agreements (as 
        defined in section 12 of the Stevenson-Wydler Technology 
        Innovation Act of 1980 (15 U.S.C. 3710a)).
            ``(3)(A) The Federal share of the cost of activities 
        carried out under a cooperative research and development 
        agreement entered into under this subsection shall not exceed 
        50 percent, except that if there is substantial public interest 
        or benefit, the Secretary may approve a greater Federal share.
            ``(B) All costs directly incurred by the non-Federal 
        partners, including personnel, travel, and hardware or software 
        development costs, shall be credited toward the non-Federal 
        share of the cost of the activities described in subparagraph 
        (A).
            ``(4) The research, development, or use of a technology 
        under a cooperative research and development agreement entered 
        into under this subsection, including the terms under which the 
        technology may be licensed and the resulting royalties may be 
distributed, shall be subject to the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.).
            ``(5) Section 3705 of title 41, United States Code, shall 
        not apply to a contract or agreement entered into under this 
        section.
    ``(c)  Availability of Amounts.--The amounts made available under 
section 4001(b) of the Safe, Accountable, Flexible, and Efficient 
Transportation Equity Act of 2003 to carry out this section shall 
remain available until expended.
    -``(d)  Contract Authority.--Approval by the Secretary of a grant 
with funds made available under section 4001(b) of the Safe, 
Accountable, Flexible, and Efficient Transportation Equity Act of 2003 
to carry out this section imposes upon the United States Government a 
contractual obligation for payment of the Government's share of costs 
incurred in carrying out the objectives of the grant.''.
    (b)  Conforming Amendment.--The table of sections at the beginning 
of chapter 311 of title 49, United States Code, is amended by revising 
the item relating to section 31108 to read as follows:

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

SEC. 4015. INTERNATIONAL COOPERATION.

    (a) Chapter 311 of title 49, United States Code, is amended by 
inserting at the end the following:

                     ``SUBCHAPTER IV--MISCELLANEOUS

``Sec. 31161. International cooperation
    ``The Secretary is authorized to use funds appropriated under 
section 31104(i) of this title to participate and cooperate in 
international activities to enhance motor carrier, driver, and highway 
safety by such means as exchanging information, conducting research; 
and examining needs, best practices, and new technology.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 311 of title 49, United States Code, is amended by adding at 
the end the following:
                     ``subchapter iv--miscellaneous
``31161. International cooperation.''.

SEC. 4016. PERFORMANCE AND REGISTRATION INFORMATION SYSTEM MANAGEMENT 
              (PRISM).

    (a) Paragraphs (2) and (3) of section 31106(b) of title 49, United 
States Code, are amended to read as follows:
            ``(2) The program shall link Federal motor carrier safety 
        information systems with State commercial vehicle registration 
        and licensing systems and shall be designed to enable a State 
        to--
                    ``(A) determine the safety fitness of a motor 
                carrier or registrant when licensing or registering the 
                registrant or motor carrier or while the license or 
                registration is in effect; and
                    ``(B) deny, suspend, or revoke the commercial motor 
                vehicle registrations of a motor carrier or registrant 
                that has been issued an operations out-of-service order 
                by the Secretary.
            ``(3) The Secretary shall require States, as a condition of 
        participation in the program, to--
                    ``(A) comply with the uniform policies, procedures, 
                and technical and operational standards prescribed by 
                the Secretary under subsection (a)(4); and
                    ``(B) possess or seek the authority to deny, 
                suspend, or revoke commercial motor vehicle 
                registrations based on the issuance of an operations 
                out-of-service order by the Secretary.''.
    (b)  Deletion.--Paragraph (4) of section 31106(b) of title 49, 
United States Code, is deleted.
    (c)  Performance and Registration Information System Management 
Grants.--
            (1) Chapter 311 of title 49, United States Code, as amended 
        by this Act, is further amended by adding a new section after 
        section 31108, to read as follows:
``Sec. 31109. Performance and Registration Information System 
              Management (PRISM)
    ``(a) In General.--From the funds authorized by section 4001(c)(3) 
of the Safe, Accountable, Flexible, and Efficient Transportation Equity 
Act of 2003, the Secretary may make a grant in a fiscal year to a State 
to implement the Performance and Registration Information System 
Management requirements of 49 U.S.C. 31106(b).
    ``(b) Availability of Amounts.--Amounts made available to a State 
under section 4001(c)(3) of the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003 to carry out this section 
shall remain available until expended.
    ``(c) Secretary's Approval.--Approval by the Secretary of a grant 
to a State under section 4001(c)(3) of the Safe, Accountable, Flexible, 
and Efficient Transportation Equity Act of 2003 to carry out this 
section is a contractual obligation of the Government for payment of 
the amount of the grant.''.
            (2) Conforming amendment.--The table of sections at the 
        beginning of chapter 311 of title 49, United States Code, is 
        amended after the item relating to section 31108 by adding the 
        following:

``31109. Performance and Registration Information System Management 
                            (PRISM).''.

SEC. 4017. INFORMATION SYSTEMS AND DATA ANALYSIS.

    The Secretary of Transportation shall carry out a program to 
improve the collection and analysis of safety data on, including crash 
causation involving, commercial motor vehicles.

SEC. 4018. OUTREACH AND EDUCATION.

    (a) In General.--The Secretary shall conduct an outreach and 
education program to be administered by the Federal Motor Carrier 
Safety Administration. The program shall include expanded 
implementation of the ``Share the Road Safely'' and ``Safety is Good 
Business'' programs. The Federal Motor Carrier Safety Administration 
shall establish programs to directly educate the industry and public 
about the requirements of new and existing regulatory requirements. The 
Secretary, through the Federal Motor Carrier Safety Administration, may 
undertake other outreach and education initiatives that may reduce the 
number of accidents, injuries, and fatalities involving commercial 
motor vehicles.
    (b) Likely Risk Factors.--The Secretary, through the Federal Motor 
Carrier Safety Administration, shall conduct an outreach program to 
identify the practices of commercial motor vehicle drivers that are 
most likely to increase and decrease the risk of accidents.

             TITLE V--TRANSPORTATION RESEARCH AND EDUCATION

                          Subtitle A--Funding

SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated out of the Highway Trust Fund (other than the Mass Transit 
Account):
            (1) Surface transportation research, development and 
        deployment program.--To carry out sections 502, 503, 506 and 
        507 of title 23, United States Code, and section 5206 of this 
        Act relating to research, development, technology transfer, 
        technology deployment, and application activities, $199,000,000 
        for each of fiscal years 2004 through 2009.
            (2) Training and education.--For carrying out section 504 
        of title 23, United States Code, $26,000,000 for each of fiscal 
        years 2004 through 2009.
            (3) Bureau of transportation statistics.--For the Bureau of 
        Transportation Statistics to carry out section 111 of title 49, 
        United States Code, the following:
                    (A) $31,568,000 for fiscal year 2004.
                    (B) $32,199,000 for fiscal year 2005.
                    (C) $32,869,000 for fiscal year 2006.
                    (D) $33,609,000 for fiscal year 2007.
                    (E) $34,439,000 for fiscal year 2008.
                    (F) $35,276,000 for fiscal year 2009.
            (4) University transportation research.--For carrying out 
        section 5505 of title 49, United States Code, $26,500,000 for 
        each of fiscal years 2004 through 2009.
            (5) Intelligent transportation systems research.--For 
        carrying out the Intelligent Transportation Systems Act of 2003 
        under subtitle E of this title, $121,000,000 for each of fiscal 
        years 2004 through 2009.
    (b) Collaborative Research and Development.--Section 502 of title 
23, United States Code, is amended--
            (1) by striking subsection (b)(3); and
            (2) by redesignating subsections (b)(4) and (b)(5) as 
        (b)(3) and (b)(4), respectively.
    (c) Applicability of Title 23, United States Code.--Funds 
authorized to be appropriated by subsection (a) shall be available for 
obligation in the same manner as if such funds were apportioned under 
chapter 1 of title 23, United States Code, except that the Federal 
share of the cost of a project or activity carried out using such funds 
shall be 100 percent unless otherwise determined by the Secretary or 
specified otherwise in this Act, and such funds shall remain available 
until expended.

            Subtitle B--Research, Technology, and Education

SEC. 5201. RESEARCH, TECHNOLOGY, AND EDUCATION.

    (a) Research, Technology, and Education.--Title 23, United States 
Code, is amended--
            (1) in the table of chapters by striking--

``5. Research and Technology................................     501'';
        and substituting--

``5. Research, Technology, and Education....................     501'';
        and
            (2) by striking the heading--

                 ``CHAPTER 5--RESEARCH AND TECHNOLOGY''

        and inserting--

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

    (b) Statement of Principles Governing Research and Technology 
Investments.--Section 502 of title 23, United States Code, is amended--
            (1) by redesignating subsections (a) through (g) as 
        subsections (b) through (h), respectively; and
            (2) by inserting a new subsection (a) at the beginning, to 
        read as follows:
    ``(a) Basic Principles Governing Research and Technology 
Investments.--
            ``(1) Coverage.--Surface transportation research and 
        technology development (R&T) shall include all activities 
        leading to technology development and transfer, as well as the 
        introduction of new and innovative ideas, practices and 
        approaches, through such mechanisms as field applications, 
        education and training, and technical support.
            ``(2) Federal responsibility.--Funding and conducting 
        surface transportation research and technology transfer 
        activities shall be considered a basic responsibility of the 
        Federal Government when--
                    ``(A) the work is of national significance;
                    ``(B) it supports research in which there is a 
                clear public benefit and private sector investment is 
                less than optimal due to market failure;
                    ``(C) it supports a Federal stewardship role in 
                assuring that state and local governments use national 
                resources efficiently; or
                    ``(D) it presents the best means to support Federal 
                policy goals compared to other policy alternatives.
            ``(3) Role.--Consistent with these Federal 
        responsibilities, the Secretary of Transportation shall--
                    ``(A) conduct research;
                    ``(B) support and facilitate research and 
                technology transfer activities by state highway 
                agencies;
                    ``(C) share results of completed research; and
                    ``(D) support and facilitate technology and 
                innovation deployment.
            ``(4) Program content.--A surface transportation research 
        program shall include--
                    ``(A) fundamental, long-term highway research;
                    ``(B) research aimed at significant highway 
                research gaps, and emerging issues with national 
                implications; and
                    ``(C) research related to policy and planning.
            ``(5) Stakeholder input.--Federally sponsored surface 
        transportation R&T activities shall address the needs of 
        partners and stakeholders, and provide for stakeholder input in 
        preparation of a strategic plan for surface transportation R&T.
            ``(6) Competition.--To the greatest extent possible, 
        investment decisions for surface transportation R&T activities 
        shall be based on the well-established principles of 
        competition and merit review.
            ``(7) Performance review.--Surface transportation R&T 
        activities shall include a component of performance 
        measurement.''.
    (c) Transportation Pooled Fund Program.--Section 502(b) of title 
23, United States Code, as redesignated by this Act, is amended by 
inserting the following at the end:
            ``(6) Pooled funding.--
                    ``(A) To promote effective utilization of available 
                resources, the Secretary may cooperate with the States 
                and other appropriate agencies in funding research, 
                development, and technology transfer activities of 
                mutual interest on a pooled funds basis.
                    ``(B) The Secretary may enter into contracts, 
                cooperative agreements, grants, and other transactions 
                as agent for all participating parties in carrying out 
                such research, development, or technology transfer.''.
    (d) Operations Elements in Research Activities.--Section 502 of 
title 23, United States Code, is amended--
            (1) in subsection (b)(1), as redesignated by this Act, by 
        striking subparagraphs (B) and (C) and inserting the following:
                    ``(B) all phases of transportation planning and 
                development (including construction, transportation 
                system management and operations, modernization, 
                development, design, maintenance, safety, financing, 
                and traffic conditions);
                    ``(C) freight security processes and procedures; 
                and
                    ``(D) the effect of State laws on the activities 
                described in subparagraphs (A) and (B).'';
            (2) in subsection (d)(5)(C), as redesignated by this Act, 
        by inserting ``system management and'' after 
        ``transportation''; and
            (3) in subsection (d), as redesignated by this Act, by 
        inserting at the end:
            ``(12) Investigation and development of various operational 
        methodologies to reduce the occurrence and impact of recurrent 
        congestion and non-recurrent congestion, and increase 
        transportation system reliability.
            ``(13) Investigate processes, procedures, and technologies 
        to secure container and hazardous material transport, including 
        the evaluation of regulations, liability, terrorist 
        countermeasures, and the impact of good security practices on 
        commerce and productivity.
            ``(14) Research, development, and technology transfer 
        related to asset management.''.
    (e) Turner-Fairbank Highway Research Center.--Section 502 of title 
23, United States Code, is amended by inserting at the end the 
following:
    ``(i) Turner-Fairbank Highway Research Center.--
            ``(1) In general.--The Secretary shall operate in the 
        Federal Highway Administration a Turner-Fairbank Highway 
        Research Center.
            ``(2) Uses of the center.--The Turner-Fairbank Highway 
        Research Center shall support the--
                    ``(A) conduct of highway research and development 
                related to new highway technology;
                    ``(B) development of understandings, tools, and 
                techniques that provide solutions to complex technical 
                problems through the development of economical and 
                environmentally sensitive designs, efficient and 
                quality controlled construction practices, and durable 
                materials; and
                    ``(C) development of innovative highway products 
                and practices.''.-
    (f) Exploratory Advanced Research Program.--Section 502 of title 
23, United States Code, is amended by striking subsection (e), as 
redesignated by this Act, and inserting the following:
    ``(e) Exploratory Advanced Research.--
            ``(1) In general.--The Secretary shall establish an 
        exploratory advanced research program, consistent with the 
        surface transportation research and technology development 
        strategic plan developed under section 508, that involves and 
        draws upon basic research results to provide a better 
        understanding of problems and develop innovative solutions. The 
        phrase ``exploratory advanced research'' conveys a more 
        fundamental character, broader objective, multi-disciplinary 
        nature, and greater uncertainty in expected outcomes than found 
        in problem-solving research. In carrying out the program, the 
        Secretary shall strive to develop partnerships with the public 
        and private sectors.
            ``(2) Research areas.--In carrying out the program, the 
        Secretary may make grants and enter into cooperative agreements 
        and contracts in such areas of surface transportation research 
        and technology as the Secretary determines appropriate, 
        including the following:
                    ``(A) Characterization of materials used in highway 
                infrastructure, including analytical techniques, 
                microstructure modeling, and the deterioration 
                processes.
                    ``(B) Assessing the effects of transportation 
                decisions on human health.
                    ``(C) Development of surrogate measures of safety.
                    ``(D) Environmental research.
                    ``(E) Data acquisition techniques for system 
                condition and performance monitoring.
                    ``(F) System performance data and information 
                processing needed to assess the day-to-day operational 
                performance of the system in support of hour-to-hour 
                operational decision making.''.
    (g) Authority To Purchase Promotional Items.--Section 503 of title 
23, United States Code, as amended by this Act, is further amended by 
inserting the following at the end:
    ``(e) Promotional Authority.--Funds authorized to be appropriated 
under this or any other Act for necessary expenses for administration 
and operation of the Federal Highway Administration shall be available 
to purchase promotional items of nominal value for use in the 
recruitment of individuals and to promote the programs of the Federal 
Highway Administration.''.
    (h) Facilitating Transportation Research and Technology Deployment 
Partnerships.--Section 502(c) of title 23, United States Code, as 
redesignated by this Act, is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Cooperation, grants, contracts and agreements.--
        Notwithstanding any other provision of law, the Secretary may 
        directly initiate contracts, cooperative research and 
        development agreements (as defined in section 12 of the 
        Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 
        3710a)), and other transactions to fund, and accept funds from, 
        the National Research Council/ Transportation Research Board, 
        American Association of State Highway and Transportation 
        Officials, State Departments of Transportation, cities, and 
        counties, and their agents to conduct joint transportation 
        research and technology efforts.''.
    (i) Long-Term Pavement Performance Program.--
            (1) Surface transportation research.--Chapter 5 of title 
        23, United States Code is amended by adding after section 504 
        the following:
``Sec. 505. Surface transportation research
    ``(a) Authority.--The Secretary of Transportation shall complete 
the 20-year long-term pavement performance program tests initiated 
under the strategic highway research program established under section 
307(d) (as in effect on the day before the date of enactment of this 
section) and continued by the Intermodal Surface Transportation 
Efficiency Act of 1991 and the Transportation Equity Act For The 21st 
Century.
    ``(b) Grants, Cooperative Agreements, and Contracts.--Under the 
program, the Secretary shall make grants and enter into cooperative 
agreements and contracts to--
            ``(1) monitor, material-test, and evaluate highway test 
        sections in existence as of the date of the grant, agreement, 
        or contract;
            ``(2) analyze the data obtained in carrying out 
        subparagraph (A); and
            ``(3) prepare products to fulfill program objectives and 
        meet future pavement technology needs.''.
            (2) Conforming amendment.--The analysis for chapter 5 of 
        title 23 is amended by inserting after item 504 the following:

``505. Surface transportation research.''.
    (j) Procurement for Research, Development, and Technology Transfer 
Activities.--Section 502(b) of title 23, United States Code, as 
redesignated by this Act, is amended by striking paragraph (3) and 
inserting the following:
            ``(3) Cooperation, grants, and contracts.--The Secretary 
        may carry out research, development, and technology transfer 
        activities related to transportation--
                    ``(A) independently;
                    ``(B) in cooperation with other Federal 
                departments, agencies, and instrumentalities and 
                Federal laboratories; or
                    ``(C) by making grants to, or entering into 
                contracts, cooperative agreements, and other 
                transactions with the following: the National Academy 
                of Sciences, the American Association of State Highway 
                and Transportation Officials, or any Federal 
                laboratory, Federal agency, State agency, authority, 
                association, institution, for-profit or nonprofit 
                corporation, organization, foreign country, or 
                person.''.
    (k) Infrastructure Investment Needs Report.--
            (1) Title 23 amendment.--Section 502(h)(1) of title 23, 
        United States Code, as redesignated by this Act, is amended by 
        striking ``Not later than January 31, 1999, and January 31 of 
        every second year thereafter,'' and inserting ``Not later than 
        July 31, 2004, and July 31 of every second year thereafter,''.
            (2) Conforming amendment to title 49, united states code.--
        Section 308(e)(1) of title 49, United States Code, is amended 
        by striking ``in March 1998, and in March of each even-numbered 
        year thereafter'' and inserting ``not later than July 31, 2004, 
        and July 31 of every second year thereafter,''.

SEC. 5202. SURFACE TRANSPORTATION ENVIRONMENT AND PLANNING COOPERATIVE 
              RESEARCH PROGRAM.

    (a) Surface Transportation Environment and Planning Cooperative 
Research Program.--Chapter 5 of title 23, United States Code, is 
amended by striking section 507 and inserting the following:
``Sec. 507. Surface transportation environment and planning cooperative 
              research program
    ``(a) Establishment.--The Secretary shall establish and support a 
collaborative, public-private surface transportation environment and 
planning cooperative research program.
    ``(b) Agreement.--The Secretary shall enter into an agreement with 
the National Academy of Sciences or other organization to support and 
carry out administrative and management activities relating to the 
governance of the surface transportation environment and planning 
cooperative research program.
    ``(c) Advisory Board.--The organization described in subsection (b) 
shall select an advisory board drawn from core partners that represent 
environment, transportation, and neutral interests, including the 
Department of Transportation, other Federal agencies, the States, local 
governments, nonprofit entities, academia, and the private sector.
    ``(d) Governance.--The surface transportation environment and 
planning cooperative research program established under this section 
shall include the following administrative and management elements:
            ``(1) National research agenda.--The advisory board, in 
        consultation with core partners and other stakeholders, shall 
        develop and periodically update a national research agenda for 
        the surface transportation environment and planning cooperative 
        research program. The national research agenda shall include a 
        multi-year strategic plan.
            ``(2) Stakeholder involvement.--Stakeholders may:
                    ``(A) submit research proposals;
                    ``(B) participate in merit reviews of research 
                proposals and peer reviews of research products; and
                    ``(C) receive research results.
            ``(3) Open competition and peer review of research 
        proposals.--The organization described in subsection (b) may 
        award research contracts and grants through open competition 
        and merit review conducted on a regular basis.
            ``(4) Evaluation of research.--
                    ``(A) Peer review.--Research contracts and grants 
                may allow peer review of the research results.
                    ``(B) Programmatic evaluations.--The organization 
                described in subsection (b) may conduct periodic 
                programmatic evaluations on a regular basis.
            ``(5) Dissemination of research findings.--The organization 
        described in subsection (b) shall disseminate research findings 
        to researchers, practitioners, and decision-makers, through 
        conferences and seminars, field demonstrations, workshops, 
        training programs, presentations, testimony to Government 
        officials, world wide web, and publications for the general 
        public.
    ``(e) Contents.--The national research agenda for the surface 
transportation environment and planning cooperative research program 
required under subsection (c)(2) shall include research in the 
following areas for the purposes cited:
            ``(1) Human health.--Human health to establish the links 
        between transportation activities and human health; 
        substantiate the linkages between exposure to concentration 
        levels, emissions, and health impacts; examine the potential 
        health impacts from the implementation and operation of 
        transportation infrastructure and services; develop strategies 
        for avoidance and reduction of these impacts; and develop 
        strategies to understand the economic value of health 
        improvements; and for incorporating health considerations into 
        valuation methods.
            ``(2) Ecology and natural systems.--Ecology and natural 
        systems to measure transportation's short- and long-term impact 
        on natural systems; develop ecologically based performance 
        measures; develop insight into both the spatial and temporal 
        issues associated with transportation and natural systems; 
        study the relationship between highway density and ecosystem 
        integrity, including the impacts of highway density on habitat 
        integrity and overall ecosystem health; develop a rapid 
        assessment methodology for use by transportation and regulatory 
        agencies in determining the relationship between highway 
        density and ecosystem integrity; and develop ecologically based 
        performance techniques to evaluate the success of highway 
        project mitigation and enhancement measures.
            ``(3) Environmental and socioeconomic relationships.--
        Environmental and socioeconomic relationships to understand 
        differences in mobility, access, travel behavior, and travel 
        preferences across socioeconomic groups; develop improved 
        planning approaches that better reflect and respond to 
        community needs; improve evaluation methods for examining the 
        incidence of benefits and costs; examine the differential 
        impacts of current methods of finance and explore alternatives; 
        understand the socioeconomic implications of emerging land 
        development patterns and new transportation technologies; 
        develop cost-effective applications of technology that improve 
        the equity of the transport system; and develop improved 
        methods for community involvement, collaborative planning, and 
        conflict resolution.
            ``(4) Emerging technologies.--Emerging technologies to 
        assist in the transition to environmentally benign fuels and 
        vehicles for passengers and freight; develop responses to and 
        demand for new technologies that could offer improved 
        environmental performance; identify possible applications of 
        Intelligent Transportation Systems technologies for 
        environmental benefit; develop policy instruments that would 
        encourage the development of beneficial new technologies in a 
        cost-effective manner; and respond to the impact of new 
        technologies.
            ``(5) Land use.--Land use to assess land consumption trends 
        and contributing factors of transportation investment, housing 
        policies, school quality, and consumer preferences; incorporate 
        impacts of transportation investments on location decision and 
        land use; identify the costs and benefits of current 
        development patterns and their transportation implications; 
        determine the effect of the built environment on people's 
        willingness to walk, drive, or take public transportation; 
        determine the roles of public policy and institutional 
        arrangements in current and prospective land use and 
        transportation choices; and develop improved data, methods, and 
processes for considering land use, transportation, and the environment 
in an integrated, systematic fashion.
            ``(6) Planning and performance measures.--Planning and 
        performance measures to improve understanding of travel needs 
        and preferences; improve planning methods for system analysis, 
        forecasting, and decision making; expand information on 
        consumer choice processes and travel and activity patterns for 
        both local and long-distance trips and both passenger and 
        freight transportation analysis of social, environmental, and 
        economic benefits and cost of various transport options; 
        develop tools for measuring and forecasting complex 
        transportation decision for all modes and users; and develop 
        performance measures and policy analysis approaches that can be 
        used to determine effectiveness.
            ``(7) Additional priorities.--Additional priorities to 
        identify and address the emerging and future surface 
        transportation research needs related to planning and 
        environment. --
    ``(f) Funding.--In addition to using funds authorized for this 
section, the organization that administers this program may seek and 
accept additional funding sources from public and private entities 
capable of attracting and accepting funding from the United States 
Department of Transportation (Federal Highway Administration, Federal 
Transit Administration, Federal Railroad Administration, Research and 
Special Programs Administration, and the National Highway Traffic 
Safety Administration), Environmental Protection Agency, Department of 
Energy, Fish and Wildlife and other Federal environmental agencies, 
States, local governments, nonprofit foundations, and the private 
sector.''.
    (b) Conforming Amendment.--The analysis for chapter 5 of title 23, 
United States Code, is amended by striking the item related to section 
507 and inserting the following:

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

SEC. 5203. LONG-TERM BRIDGE PERFORMANCE PROGRAM; INNOVATIVE BRIDGE 
              RESEARCH AND DEPLOYMENT PROGRAM.

    (a) Long-Term Bridge Performance Program.--Section 502 of title 23, 
United States Code, is amended by striking 502(g), as redesignated by 
this Act, and inserting the following:
    ``(g) Long-Term Bridge Performance Program.--
            ``(1) Authority.--The Secretary shall establish a 20 year 
        long-term bridge performance program.
            ``(2) Grants, cooperative agreements, and contracts.--Under 
        the program, the Secretary shall make grants and enter into 
        cooperative agreements and contracts to--
                    ``(A) monitor, material-test, and evaluate test 
                bridges;
                    ``(B) analyze the data obtained in carrying out 
                subparagraph (A); and
                    ``(C) prepare products to fulfill program 
                objectives and meet future bridge technology needs.''.
    (b) Innovative Bridge Research and Deployment Program.--
            (1) In general.--Section 503(b) of title 23, United States 
        Code, is amended by striking 503(b)(1) and inserting:
            ``(1) In general.--The Secretary shall establish and carry 
        out a program to promote, demonstrate, evaluate, and document 
        the application of innovative designs, materials and 
        construction methods in the construction, repair, and 
        rehabilitation of bridges and other highway structures.''.
            (2) Goals.--Section 503(b)(2) of such title is amended by 
        striking 503(b)(2) and inserting:
            ``(2) Goals.--The goals of the program shall include--
                    ``(A) the development of new, cost-effective, 
                innovative highway bridge applications;
                    ``(B) the development of construction techniques to 
                increase safety and reduce construction time and 
                traffic congestion;
                    ``(C) the development of engineering design 
                criteria for innovative products, materials, and 
                structural systems for use in highway bridges and 
                structures;
                    ``(D) the reduction of maintenance costs and life-
                cycle costs of bridges, including the costs of new 
                construction, replacement, or rehabilitation of 
                deficient bridges;
                    ``(E) the development of highway bridges and 
                structures that will withstand natural disasters and 
                terrorist attacks;
                    ``(F) the documentation and wide dissemination of 
                objective evaluations of the performance and benefits 
                of these innovative designs, materials, and 
                construction methods; and
                    ``(G) the effective transfer of resulting 
                information and technology.''.

SEC. 5204. TECHNOLOGY DEPLOYMENT.

    (a) Technology Deployment Program.--Section 503(a) of title 23, 
United States Code, is amended--
            (1) in the subsection heading, by striking ``initiatives 
        and partnerships'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) Establishment.--The Secretary shall develop and 
        administer a national technology deployment program.''.
            (3) by striking paragraph (7) and inserting the following:
            ``(7) Grants, cooperative agreements, and contracts.--
                    ``(A) In general.--Under the program, the Secretary 
                shall make grants to, and enter into cooperative 
                agreements and contracts with States, other Federal 
                agencies, universities and colleges, private sector 
                entities, and nonprofit organizations to pay the 
                Federal share of the cost of research, development, and 
                technology transfer concerning innovative materials.
                    ``(B) Applications.--To receive a grant under this 
                subsection, an entity described in subparagraph (A) 
                shall submit an application to the Secretary. The 
                application shall be in such form and contain such 
                information as the Secretary may require. The Secretary 
                shall select and approve the applications based on 
                whether the project that is the subject of the grant 
                meets the goals of the program described in paragraph 
                (2).'';
            (4) by striking paragraph (8);
            (5) by redesignating paragraph (9) as paragraph (10); and
            (6) by inserting after paragraph (7) the following:
            ``(8) Technology and information transfer.--The Secretary 
        shall ensure that the information and technology resulting from 
        research conducted under paragraph (3) is made available to 
        State and local transportation departments and other interested 
        parties as specified by the Secretary.
            ``(9) Federal share.--The Federal share of the cost of a 
        project under this section shall be determined by the 
        Secretary.''.
    (b) Innovative Pavement Research and Deployment Program.--Section 
503 of title 23, United States Code, is amended by adding after 
subsection (b) the following:
    ``(c) Innovative Pavement Research and Deployment Program.--
            ``(1) In general.--The Secretary shall establish and 
        implement a program to promote, demonstrate, support, and 
        document the application of innovative pavement technologies, 
        practices, performance, and benefits.
            ``(2) Goals.--The goals of the innovative pavement research 
        and deployment program shall include--
                    ``(A) the deployment of new, cost-effective 
                innovative designs, materials, and practices to extend 
                pavement life and performance and to improve customer 
                satisfaction;
                    ``(B) the reduction of initial costs and life-cycle 
                costs of pavements, including the costs of new 
                construction, replacement, maintenance, and 
                rehabilitation;
                    ``(C) the deployment of accelerated construction 
                techniques to increase safety and reduce construction 
                time and traffic disruption and congestion;
                    ``(D) the deployment of engineering design criteria 
                and specifications for innovative practices, products, 
                and materials for use in highway pavements;
                    ``(E) the deployment of new nondestructive and real 
                time pavement evaluation technologies and techniques;
                    ``(F) evaluation, refinement, and documentation of 
                the performance and benefits of innovative technologies 
                deployed to improve life, performance, cost 
                effectiveness, safety, and customer satisfaction;
                    ``(G) effective technology transfer and information 
                dissemination to accelerate implementation of 
                innovative technologies and to improve life, 
                performance, cost effectiveness, safety, and customer 
                satisfaction; and
                    ``(H) the development of designs and materials to 
                reduce storm water runoff.''.
    (c) Safety Innovation Deployment Program.--Section 503 of title 23, 
United States Code, as amended by this Act, is further amended by 
adding the following:
    ``(d) Safety Innovation Deployment Program.--
            ``(1) In general.--The Secretary shall establish and 
        implement a program to demonstrate the application of 
        innovative technologies in highway safety.
            ``(2) Goals.--The goals of the program shall include--
                    ``(A) the deployment and evaluation of safety 
                technologies and innovations at state and local levels; 
                and
                    ``(B) the deployment of best practices in training, 
                management, design, and planning.
            ``(3) Grants, cooperative agreements, and contracts.--
                    ``(A) In general.--Under the program, the Secretary 
                shall make grants to, and enter into cooperative 
                agreements and contracts with States, other Federal 
                agencies, universities and colleges, private sector 
                entities, and nonprofit organizations for research, 
                development, and technology transfer for innovative 
                safety technologies.
                    ``(B) Applications.--To receive a grant under this 
                subsection, an entity described in subparagraph (A) 
                shall submit an application to the Secretary. The 
                application shall be in such form and contain such 
                information as the Secretary may require. The Secretary 
                shall select and approve the applications based on 
                whether the project that is the subject of the grant 
                meets the goals of the program described in paragraph 
                (2).
            ``(4) Technology and information transfer.--The Secretary 
        shall take such action as is necessary to ensure that the 
        information and technology resulting from research conducted 
        under paragraph (3) is made available to State and local 
        transportation departments and other interested parties as 
        specified by the Secretary.
            ``(5) Federal share.--The Federal share of the cost of a 
        project under this section shall be determined by the 
        Secretary.''.

SEC. 5205. TRAINING AND EDUCATION.

    (a) National Highway Institute.--Section 504(a) of title 23, United 
States Code, is amended by striking paragraph (3) and inserting the 
following:
            ``(3) Courses.--The Institute may develop and administer 
        courses in modern developments, techniques, methods, 
        regulations, management, and procedures in areas including 
        surface transportation, environmental stewardship and 
        streamlining, acquisition of rights-of-way, relocation 
        assistance, engineering, safety, transportation system 
        management and operations, construction, maintenance, contract 
        administration, inspection, and highway finance.''.
    (b) Federal Share.--Section 504(b) of title 23, United States Code, 
is amended by adding at the end the following:
            ``(3) Federal share.--
                    ``(A) Grants.--The grant funds authorized to carry 
                out this subsection may be used to cover up to 50 
                percent of the program costs relating to local 
                technical assistance. Funds available for technology 
                transfer and training purposes under this title and 
                title 49 may be used to cover the remaining 50 percent 
                of the program costs.
                    ``(B) Tribal technical assistance centers.--The 
                Federal share of the cost of activities carried out by 
                the tribal technical assistance centers under paragraph 
                (b)(2)(D)(ii) of this subsection shall be 100 
                percent.''.
    (c) Surface Transportation Workforce Development, Training, and 
Education.--Section 504 of title 23, United States Code, is amended by 
adding at the end the following:
    ``(d) Surface Transportation Workforce Development, Training, and 
Education.--
            ``(1) Funding.--Subject to project approval by the 
        Secretary, a State may obligate funds apportioned to it under 
        sections 104(b)(1), (3), and (4) and 144(e) of this title for 
        surface transportation workforce development, training and 
        education, including:
                    ``(A) tuition and direct educational expenses, 
                excluding salaries, in connection with the education 
                and training of employees of State and local 
                transportation agencies;
                    ``(B) employee professional development;
                    ``(C) student internships;
                    ``(D) university or community college support; or
                    ``(E) education outreach activities to develop 
                interest and promote participation in surface 
                transportation careers.
            ``(2) Federal share.--The Federal share of the cost of 
        activities carried out in accordance with this subsection shall 
        be 100 percent.''.
    (d) Definitions and Declaration of Policy.--Section 101(a) of title 
23, United States Code, as amended by this Act, is further amended--
            (1) in paragraph (3), by--
                    (A) striking ``and'' after subparagraph (H);
                    (B) striking the period after subparagraph (I) and 
                inserting ``; and''; and
                    (C) adding after subparagraph (I) the following:
                    ``(J) surface transportation workforce development, 
                training, and education.'';
            (2) by redesignating paragraphs (36) through (39), as 
        redesignated by this Act, as paragraphs (37) through (40) 
        respectively; and
            (3) by adding after paragraph (35), as redesignated by this 
        Act, the following:
            ``(36) Surface transportation workforce development, 
        training, and education.--The term `surface transportation 
        workforce development, training, and education' means 
        activities associated with surface transportation career 
        awareness, student transportation career preparation, and 
        training and professional development for surface 
        transportation workers.''.

SEC. 5206. ADVANCED TRAVEL FORECASTING PROCEDURES PROGRAM.

    (a) Continuation and Acceleration of TRANSIMS Deployment.--The 
Secretary shall accelerate the deployment of the advanced 
transportation model known as the Transportation Analysis Simulation 
System (``TRANSIMS''), developed by the Los Alamos National Laboratory. 
The program shall assist State departments of transportation and 
metropolitan planning organizations in the implementation of TRANSIMS, 
develop methods for TRANSIMS applications to transportation planning 
and air quality analysis, and provide training and technical assistance 
for the implementation of TRANSIMS. The program may support the 
development of methods to plan for the transportation response to 
chemical and biological terrorism and other security concerns.
    (b) Eligible Activities.--The Secretary shall use funds made 
available under section 5101(a)(1) of this Act to--
            (1) provide funding to State departments of transportation 
        and metropolitan planning organizations serving transportation 
        management areas designated under the metropolitan planning 
        section of chapter 52 of title 49, United States Code, 
        representing a diversity of populations, geographic regions and 
        analytic needs to implement TRANSIMS;
            (2) develop methods to demonstrate a wide spectrum of 
        TRANSIMS applications to support metropolitan and statewide 
        transportation planning, including integrating highway and 
        transit operational considerations into the transportation 
        planning process; and
            (3) provide training and technical assistance with respect 
        to the implementation and application of TRANSIMS to States, 
        local governments and Metropolitan Planning Organizations with 
        responsibility for travel modeling.
    (c) Allocation of Funds.--Not more than 75 percent of the funds 
made available to carry out this section may be allocated to activities 
described in subsection (b)(1).

  Subtitle C--Multimodal Research Programs; Scholarship Opportunities

SEC. 5301. UNIVERSITY TRANSPORTATION RESEARCH.

    Section 5505 of title 49, United States Code, is revised to read as 
follows:
``Sec. 5505. University transportation research
    ``(a) University Industry Government Partnerships.--The Secretary 
of Transportation shall make grants to nonprofit institutions of higher 
learning to address transportation management and research and 
development matters, with special attention to increasing the number of 
highly skilled individuals entering the field of transportation.
    ``(b) Objectives.--
            ``(1) Each university receiving a grant under this section 
        shall conduct the following programs and activities:
                    ``(A) Basic and applied research that supports the 
                Department's transportation research agenda, the 
                products of which are judged by peers or other experts 
                in the field to advance the body of knowledge in 
                transportation.
                    ``(B) An education program that includes 
                multidisciplinary course work, faculty and student 
                participation in research, and an opportunity for 
                practical experience.
                    ``(C) An ongoing program of technology transfer 
                that makes the results of research and education 
                activities broadly available to potential users in a 
                form that can be implemented, utilized, or otherwise 
                applied.
            ``(2) Each university shall elect as its primary objective 
        either subsection (b)(1)(A) or (b)(1)(B) of this section and 
        shall direct at least 50 percent of total costs to the 
        accomplishment thereof.
    ``(c) Selection of Grant Recipients.--
            ``(1) In order to be eligible to receive a grant under this 
        section, a nonprofit institution of higher learning shall 
        submit to the Secretary an application that is in such form and 
        contains such information as the Secretary may require.
            ``(2) The Secretary shall select each recipient of a grant 
        under this section through a competitive process in which 
        applications are evaluated on the basis of the following:
                    ``(A) The demonstrated research and extension 
                resources available to the applicant to carry out this 
                section.
                    ``(B) The capability of the applicant to provide 
                leadership in making national and regional 
                contributions to the solution of immediate and long-
                range transportation problems.
                    ``(C) The applicant's demonstrated commitment of at 
                least $200,000 in regularly-budgeted institutional 
                amounts each year to support ongoing transportation 
                research and education programs.
                    ``(D) The amount of matching funds for which the 
                applicant has obtained binding commitments.
                    ``(E) Evidence of the applicant's research and 
                education partnerships with at least one private sector 
                partner and at least one non-Federal Government 
                partner.
                    ``(F) The applicant's demonstrated ability to 
                disseminate results of transportation research and 
                education programs through national and statewide or 
                regionwide continuing education and capacity-building 
                programs.
                    ``(G) The strategic plan the applicant proposes to 
                achieve the objectives of the grant and--
                            ``(i) if the applicant's primary objective 
                        is subsection (b)(1)(A) of this section, the 
                        strategic plan shall include a research plan 
                        that addresses more than one mode of 
                        transportation; or
                            ``(ii) if the applicant's primary objective 
                        is subsection (b)(1)(B) of this section, the 
                        strategic plan shall include an education plan 
                        that addresses multimodal issues.
    ``(d) Maintenance of Effort.--In order to be eligible to receive a 
grant under this section, a recipient shall enter into an agreement 
with the Secretary to ensure that the recipient will maintain total 
expenditures from all other sources to carry out the objectives of a 
grant at a level at least equal to the average level of such 
expenditures in its 2 fiscal years prior to award of a grant under this 
section.
    ``(e) Federal Share.--The Federal share of the costs of activities 
carried out using a grant made under this section shall not exceed 50 
percent of costs. The non-Federal share may include funds provided to a 
recipient under section 503, or 104(i) of title 23, United States Code.
    ``(f) Program Administration.--
            ``(1) The Secretary shall conduct all grant management and 
        administration functions necessary to facilitate the research, 
        education, training, and technology transfer activities that 
        grant recipients carry out under this section; to coordinate 
        these activities among the grant recipients; to ensure that the 
        results of the research, education, training and technology 
        transfer activities are widely disseminated; and to ensure the 
        effective use of program resources.
            ``(2) At least annually and consistent with the plan 
        developed under section 508 of title 23, United States Code, 
        the Secretary shall review and evaluate programs the grant 
        recipients carry out.
            ``(3) The Secretary may not use more than 1 percent of 
        amounts made available from Government sources to carry out 
        this subsection.
    ``(g) Use of Transportation Research Information Services (TRIS) 
Databases.--
            (1) Recipients of awards under this section shall make use 
        of the National Research Council (NRC), Transportation Research 
        Board (TRB), Transportation Research Information Services 
        (TRIS) online databases for the following purposes:
                    ``(A) Program development and strategic planning.
                    ``(B) Reporting of active R&T activities undertaken 
                with funding provided here.
                    ``(C) Input and dissemination of results and 
                reports from completed research.
            ``(2) Recipients shall recommend a representative to serve 
        as liaison to the Transportation Research Board.
    ``(h) Limitation on Availability of Funds.-- Funds made available 
to carry out this program shall remain available for obligation for a 
period of 2 years after the last day of the fiscal year for which such 
funds are authorized.''.

SEC. 5302. MULTIMODAL RESEARCH PROGRAM.

    (a) In General.--Section 5506 of title 49, United States Code, is 
revised to read as follows:
``Sec. 5506. Multimodal research program
    ``(a) Purpose.--The Secretary shall establish a program to 
encourage and promote the research, development, demonstration and 
testing of technologies that have multimodal transportation 
applications, and shall foster adoption of those technologies in 
transportation through demonstration and testing to remove impediments 
to an efficient, safe, and cost-effective national transportation 
system.
    ``(b) Other Research Activities.--To ensure the activities 
performed pursuant to this section achieve the maximum benefit, the 
Secretary, the Secretary of Energy, the Administrator of the 
Environmental Protection Agency, and other relevant Federal agencies 
shall coordinate their research, development and demonstration 
activities related to heavy-duty vehicle technologies and hydrogen 
transportation and refueling infrastructure. Nothing in this section 
may be construed to authorize the Secretary to conduct research, 
development, demonstration or testing activities that the Secretary of 
Energy or the Administrator of the Environmental Protection Agency is 
authorized to conduct, or to modify the authorities of the Secretary of 
Energy or the Administrator of the Environmental Protection Agency.
    ``(c) Advanced Heavy-Duty Vehicle Technologies.--
            ``(1) The Secretary of Transportation shall conduct 
        research, development, demonstration and testing to integrate 
        emerging multimodal heavy-duty vehicle technologies in order to 
        provide seamless, safe, secure and efficient transportation.
            ``(2) There is authorized to be appropriated from the 
        Highway Trust Fund (other than the Mass Transit Account) to 
        carry out this paragraph $24,000,000 for fiscal year 2005, 
        $25,000,000 for fiscal year 2006, $23,000,000 for fiscal year 
        2007, $18,000,000 for fiscal year 2008, and $10,000,000 for 
        fiscal year 2009.
            ``(3) The funding made available under paragraph (2) of 
        this subsection shall be available for obligation in the same 
        manner as if such funds were apportioned under chapter 1 of 
        title 23 and shall be subject to any obligation limitation 
        imposed on funds for Federal-aid highways and highway safety 
        construction programs.
    ``(d) Hydrogen Infrastructure Safety Research and Development.--
            ``(1) The Secretary of Transportation is authorized to 
        conduct research, development, demonstration and testing on the 
        safety aspects of hydrogen transportation and refueling 
        infrastructure necessary to support the use of next generation 
        vehicle technologies.
            ``(2) To carry out this subsection, there is authorized to 
        be appropriated $1,000,000 for fiscal years 2004, $15,000,000 
        for fiscal year 2005, $13,000,000 for fiscal year 2006, 
        $11,000,000 for fiscal year 2007, $9,000,000 for fiscal year 
        2008, and $6,000,000 for fiscal year 2009.
    ``(e) Grants, Cooperative Agreements, and Other Transactions.-- The 
Secretary may enter into grants, cooperative agreements, and other 
transactions with Federal and other public agencies (including State 
and local governments) and private organizations and other persons to 
carry out this section.
    ``(f) Cost Sharing.--At least 50 percent of the funding for 
projects authorized in this section must be provided by non-Federal 
sources.''.
    (b) Conforming Amendment.--The analysis of chapter 55 of title 49, 
United States Code, is amended by substituting the following for the 
item designated 5506:

``Sec. 5506. Multimodal research program.''.

SEC. 5303. COMMERCIAL REMOTE SENSING PRODUCTS.

    Section 5113 of the Transportation Equity Act of the 21st Century 
(23 U.S.C. 502 note) is amended by revising subsection (b) to read as 
follows:
    ``(b) Program.--
            ``(1) National policy.--The Secretary shall establish and 
        maintain a national policy for the use of commercial remote 
        sensing products and spatial information technologies in 
        national transportation infrastructure development and 
        construction.
            ``(2) Policy implementation.--The Secretary shall develop 
        new applications of commercial remote sensing products and 
        spatial information technologies for the implementation of the 
        national policy established and maintained under (b)(1) of this 
        section.''.

SEC. 5304. TRANSPORTATION SCHOLARSHIP OPPORTUNITIES PROGRAM.

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

              Subtitle D--Transportation Data and Analysis

SEC. 5401. BUREAU OF TRANSPORTATION STATISTICS.

    Section 111 of title 49, United States Code, is amended by deleting 
subsections (b) through (k) and inserting the following new 
subsections, as follows:
    ``(b) Director.--
            ``(1) The Bureau shall be headed by a Director, who shall 
        be appointed by the President, by and with the advice and 
        consent of the Senate.
            ``(2) The Director shall be appointed from among 
        individuals who are qualified to serve by virtue of their 
        training and experience in the collection, analysis and use of 
        transportation data.
            ``(3) The Director shall report directly to the Secretary 
        of Transportation.
            ``(4) The term of the Director shall be 4 years. The 
        Director may continue to serve after the expiration of the term 
        until a successor is appointed and confirmed.
    ``(c) Responsibilities.--The Director of the Bureau shall serve as 
the Secretary's senior advisor on data and statistics and be 
responsible for carrying out the following duties:
            ``(1) Collecting, analyzing and disseminating data 
        concerning the domestic and international movement of freight.
            ``(2) Collecting, analyzing and disseminating data 
        concerning travel patterns for local and long-distance travel, 
        at the local, State, national and international levels.
            ``(3) Developing, analyzing and disseminating information 
        on the economics of transportation.
            ``(4) Building and disseminating the transportation layer 
        of the National Spatial Data Infrastructure, including 
        coordinating the development of transportation geospatial data 
        standards, compiling intermodal geospatial data, and collecting 
        geospatial data that is not being collected by others.
            ``(5) Developing, publishing and disseminating a 
        comprehensive set of measures of investment, use, costs, 
        performance and impacts of the national transportation system, 
        including publishing an annual transportation statistics 
        abstract; and identifying information needs and reviewing such 
        needs at least annually with the Advisory Council on 
        Transportation Statistics.
            ``(6) Conducting or supporting research relating to methods 
        of gathering or analyzing transportation statistics and issuing 
        guidelines for the collection of information by the Department 
        in order to ensure that such information is accurate, relevant, 
        comparable, accessible and in a form that permits systematic 
        analysis.
    ``(d) Coordinating Collection of Information.--The Director shall 
work with the operating administrations of the Department to establish 
and implement the Bureau's data programs and to improve the 
coordination of information collection efforts with other Federal 
agencies.
    ``(e) Supporting Transportation Decisionmaking.--The Director shall 
ensure that the statistics compiled under this section are relevant for 
transportation policy, planning, and decision making by the Federal 
Government, State and local governments, transportation-related 
associations, private businesses, and the public. The Director shall 
provide, to the Department's other operating administrations, technical 
assistance on collecting, compiling, analyzing and verifying 
transportation data and statistics and the design of surveys.
    ``(f) Research and Development Grants.--
            (1) The Secretary may make grants to, or enter into 
        cooperative agreements or contracts with, public and nonprofit 
        private entities (including State transportation departments, 
        metropolitan planning organizations, and institutions of higher 
        education) if the grants--
                    ``(A) provide for an alternative means of 
                accomplishing program-related research;
                    ``(B) contribute to research and development of new 
                methods of data collection; or
                    ``(C) improve the methods for sharing geographic 
                data.
            ``(2) Not more than $500,000 of the amounts made available 
        to carry out this section in a fiscal year may be used for 
        Research and Development Grants.
    ``(g) Transportation Statistics Annual Report.--By March 31 of each 
year, the Director shall transmit to the President and Congress a 
report that includes information on the subjects covered by subsection 
(c) of this section, documentation of the methods used to obtain the 
information and ensure the quality of the statistics presented in the 
report, and recommendations for improving transportation statistical 
information.
    ``(h) Proceeds of Data Product Sales.--Notwithstanding section 3302 
of title 31, United States Code, funds received by the Bureau from the 
sale of data products, for necessary expenses incurred, may be credited 
to the Highway Trust Fund (other than the Mass Transit Account) for the 
purpose of reimbursing the Bureau for the expenses.
    ``(i) Limitations on Statutory Construction.--Nothing in this 
section shall be construed to--
            ``(1) authorize the Bureau to require any other department 
        or agency to collect data; or
            ``(2) reduce the authority of any other officer of the 
        Department of Transportation to collect and disseminate data 
        independently.
    ``(j) Mandatory Response Authority for Freight Data Collection.--
Whoever, being the owner, official, agent, person in charge, or 
assistant to the person in charge, of any corporation, company, 
business, institution, establishment, or organization of any nature 
whatsoever, neglects or refuses, when requested by the Director or 
other authorized officer, employee or contractor of the Bureau, to 
answer completely and correctly to the best of his/her knowledge all 
questions relating to the corporation, company, business, institution, 
establishment, or other organization, or to records or statistics in 
his/her official custody, contained in a data collection request 
prepared and submitted under the authority of subsection (c)(1), shall 
be fined not more than $500; and if the individual willfully gives a 
false answer to a question, shall be fined not more than $10,000.
    ``(k) Prohibition on Certain Disclosures.--
            ``(1) An officer, employee or contractor of the Bureau may 
        not--
                    ``(A) make any disclosure in which the data 
                provided by an individual or organization under 
                subsection (c) can be identified;
                    ``(B) use the information provided under subsection 
                (c) for a nonstatistical purpose; or
                    ``(C) permit anyone other than an individual 
                authorized by the Director to examine any individual 
                report provided under subsection (c).
            ``(2)(A) No department, bureau, agency, officer, or 
        employee of the United States (except the Director in carrying 
        out this section) may require, for any reason, a copy of any 
report that has been filed under subsection (c) with the Bureau or 
retained by an individual respondent.
            ``(B) A copy of a report described in subparagraph (A) that 
        has been retained by an individual respondent or filed with the 
        Bureau or any of its employees, contractors, or agents--
                    ``(i) shall be immune from legal process; and
                    ``(ii) shall not, without the consent of the 
                individual concerned, be admitted as evidence or used 
                for any purpose in any action, suit, or other judicial 
                or administrative proceeding.
            ``(C) This subsection shall apply only to reports that 
        permit information concerning an individual or organization to 
        be reasonably inferred by direct or indirect means.
            ``(3) In a case in which the Bureau is authorized by 
        statute to collect data or information for a nonstatistical 
        purpose, the Director shall clearly distinguish the collection 
        of the data or information, by rule and on the collection 
        instrument, so as to inform a respondent that is requested or 
        required to supply the data or information of the 
        nonstatistical purpose.
    ``(l) Data Access.--The Director shall have access to 
transportation and transportation-related information in the possession 
of any Federal agency except information--
            ``(1) the disclosure of which to another Federal agency is 
        expressly prohibited by law; or
            ``(2) the disclosure of which the agency so requested 
        determines would significantly impair the discharge of 
        authorities and responsibilities which have been delegated to, 
        or vested by law, in such agency.
    ``(m) Advisory Council on Transportation Statistics.--
            ``(1) The Bureau of Transportation Statistics has an 
        Advisory Council on Transportation Statistics.
            ``(2) It shall be the function of the advisory council 
        established under this subsection to advise the Director of the 
        Bureau of Transportation Statistics on transportation 
        statistics and analyses, including whether or not the 
        statistics and analysis disseminated by the Bureau of 
        Transportation Statistics are of high quality and are based 
        upon the best available objective information.
            ``(3) The advisory council established under this 
        subsection shall be composed of not more than 6 members 
        appointed by the Director who are not officers or employees of 
        the United States and who have expertise in transportation data 
        collection or analysis or application (except for 1 member who 
        shall have expertise in economics and 1 member who shall have 
        expertise in statistics).
            ``(4) The Federal Advisory Committee Act (5 App. U.S.C.) 
        shall apply to the advisory council established under this 
        section, except that section 14 of the Federal Advisory 
        Committee Act shall not apply to the Advisory Committee 
        established under this section.''.

        Subtitle E--Intelligent Transportation Systems Research

SEC. 5501. SHORT TITLE.

    This subtitle may be cited as the ``Intelligent Transportation 
Systems Act of 2003''.

SEC. 5502. GOALS AND PURPOSES.

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

SEC. 5503. GENERAL AUTHORITIES AND REQUIREMENTS.

    (a) Scope.--Subject to the provisions of this subtitle, the 
Secretary shall conduct an ongoing intelligent transportation system 
program to research, develop, and operationally test intelligent 
transportation systems and advance nationwide deployment of such 
systems as a component of the surface transportation systems of the 
United States.
    (b) Policy.--Intelligent transportation system research projects 
and operational tests funded pursuant to this subtitle shall encourage 
and not displace public-private partnerships or private sector 
investment in such tests and projects.
    (c) Cooperation With Governmental, Private, and Educational 
Entities.--The Secretary shall carry out the intelligent transportation 
system program in cooperation with State and local governments and 
other public entities, the United States private sector, the Federal 
laboratories, and colleges and universities, including historically 
black colleges and universities and other minority institutions of 
higher education.
    (d) Consultation With Federal Officials.--In carrying out the 
intelligent transportation system program, the Secretary, as 
appropriate, shall consult with the Secretary of Commerce, the 
Secretary of the Treasury, the Administrator of the Environmental 
Protection Agency, the Secretary of Homeland Security, the Director of 
the National Science Foundation, and the heads of other Federal 
departments and agencies.
    (e) Technical Assistance, Training, and Information.--The Secretary 
may provide technical assistance, training, and information to State 
and local governments seeking to implement, operate, maintain, or 
evaluate intelligent transportation system technologies and services.
    (f) Transportation Planning.--The Secretary may provide funding to 
support adequate consideration of transportation systems management and 
operations, including intelligent transportation systems, within 
metropolitan and statewide transportation planning processes.
    (g) Information Clearinghouse.--
            (1) In general.--The Secretary shall--
                    (A) maintain a repository for technical and safety 
                data collected as a result of federally sponsored 
                projects carried out under this subtitle; and
                    (B) on request, make that information (except for 
                proprietary information and data) readily available to 
                all users of the repository at an appropriate cost.
            (2) Agreement.--
                    (A) In general.--The Secretary may enter into an 
                agreement with a third party for the maintenance of the 
                repository for technical and safety data under 
                paragraph (1)(A) of this subsection.
                    (B) Federal financial assistance.--If the Secretary 
                delegates the responsibility, the entity to which the 
                responsibility is delegated shall be eligible for 
                Federal financial assistance under this section.
    (h) Advisory Committees.--
            (1) In general.--In carrying out this subtitle, the 
        Secretary may use one or more advisory committees.
            (2) Applicability of federal advisory committee act.--Any 
        advisory committee so used shall be subject to the Federal 
        Advisory Committee Act (5 U.S.C. App.).
    (i) Evaluations.--
            (1) Guidelines and requirements.--
                    (A) In general.--The Secretary shall issue 
                guidelines and requirements for the evaluation of 
                operational tests and deployment projects carried out 
                under this subtitle.
                    (B) Objectivity and independence.--The guidelines 
                and requirements issued under subparagraph (A) shall 
                include provisions to ensure the objectivity and 
                independence of the evaluator so as to avoid any real 
                or apparent conflict of interest or potential influence 
                on the outcome by parties to any such test or 
                deployment project or by any other formal evaluation 
                carried out under this subtitle.
                    (C) Funding.--The guidelines and requirements 
                issued under subparagraph (A) shall establish 
                evaluation funding levels based on the size and scope 
                of each test or project that ensure adequate evaluation 
                of the results of the test or project.
            (2) Special rule.--Any survey, questionnaire, or interview 
        that the Secretary considers necessary to carry out the 
        evaluation of any test, deployment project, or program 
        assessment activity under this subtitle shall not be subject to 
        chapter 35 of title 44.
    (j) Use of Rights-of-Way.--Intelligent transportation system 
projects specified in sections 5117(b)(3) and 5117(b)(6) of the 
Transportation Equity Act for the 21st Century and involving privately 
owned intelligent transportation system components that are carried out 
using funds made available from the Highway Trust Fund shall not be 
subject to any law or regulation of a State or political subdivision of 
a State prohibiting or regulating commercial activities in the rights-
of-way of a highway for which Federal-aid highway funds have been 
utilized for planning, design, construction, or maintenance, if the 
Secretary of Transportation determines that such use is in the public 
interest. Nothing in this subsection shall affect the authority of a 
State or political subdivision of a State to regulate highway safety.

SEC. 5504. NATIONAL ARCHITECTURE AND STANDARDS.

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

SEC. 5505. RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall carry out a comprehensive 
program of intelligent transportation system research, development, and 
operational tests of intelligent vehicles and intelligent 
infrastructure systems, and other similar activities that are necessary 
to carry out this subtitle.
    (b) Priority Areas.--Under the program, the Secretary shall give 
higher priority to funding projects that--
            (1) enhance mobility and productivity through improved 
        traffic management, incident management, transit management, 
        freight management, road weather management, toll collection, 
        traveler information, or highway operations systems;
            (2) enhance safety through improved crash-avoidance and 
        protection, crash and other notification, commercial vehicle 
        operations, and infrastructure-based or cooperative safety 
        systems;
            (3) enhance security through improved response to security 
        related emergencies, and improved transportation security 
        systems; and
            (4) facilitate the integration of intelligent 
        infrastructure, vehicle, and control technologies.
    (c) Federal Share.--The Federal share of the cost of operational 
tests and demonstrations under subsection (a) shall not exceed 80 
percent.

SEC. 5506. USE OF FUNDS.

    (a) Outreach and Public Relations Limitation.--
            (1) In general.--For each fiscal year, not more than 
        $5,000,000 of the funds made available to carry out this 
        subtitle shall be used for intelligent transportation system 
        outreach, public relations, displays, scholarships, tours, and 
        brochures.
            (2) Applicability.--Paragraph (1) shall not apply to 
        intelligent transportation system training or the publication 
        or distribution of research findings, technical guidance, or 
        similar documents.
    (b) Infrastructure Development.--Funds made available to carry out 
this subtitle for operational tests--
            (1) shall be used primarily for the development of 
        intelligent transportation system infrastructure; and
            (2) to the maximum extent practicable, shall not be used 
        for the construction of physical highway and transit 
        infrastructure unless the construction is incidental and 
        critically necessary to the implementation of an intelligent 
        transportation system project.

SEC. 5507. DEFINITIONS.

    In this subtitle, the following definitions apply:
            (1) Incident.-- In this section, the term ``incident'' 
        means a crash, a natural disaster, work zone activity, special 
        event, or other emergency road user occurrence that adversely 
        affects or impedes the normal flow of traffic.
            (2) Intelligent transportation infrastructure.--The term 
        ''intelligent transportation infrastructure'' means fully 
        integrated public sector intelligent transportation system 
        components, as defined by the Secretary.
            (3) Intelligent transportation system.--The term 
        ''intelligent transportation system'' means electronics, 
        communications, or information processing used singly or in 
        combination to improve the efficiency or safety of a surface 
        transportation system.
            (4) National architecture.--The term ``national 
        architecture'' means the common framework for interoperability 
        that defines--
                    (A) the functions associated with intelligent 
                transportation system user services;
                    (B) the physical entities or subsystems within 
                which the functions reside;
                    (C) the data interfaces and information flows 
                between physical subsystems; and
                    (D) the communications requirements associated with 
                the information flows.
            (5) Project.--The term ``project'' means a undertaking to 
        research, develop, or operationally test intelligent 
        transportation systems or any other undertaking eligible for 
        assistance under this subtitle.
            (6) Standard.--The term ``standard'' means a document 
        that--
                    (A) contains technical specifications or other 
                precise criteria for intelligent transportation systems 
                that are to be used consistently as rules, guidelines, 
                or definitions of characteristics so as to ensure that 
                materials, products, processes, and services are fit 
                for their purposes; and
                    (B) may support the national architecture and 
                promote--
                            (i) the widespread use and adoption of 
                        intelligent transportation system technology as 
                        a component of the surface transportation 
                        systems of the United States; and
                            (ii) interoperability among intelligent 
                        transportation system technologies implemented 
                        throughout the States.
            (7) State.--The term ``State'' has the meaning given the 
        term under section 101 of title 23, United States Code.
            (8) Transportation systems management and operations.--The 
        term ``transportation systems management and operations'' has 
        the meaning given the term under section 101(a) of title 23, 
        United States Code, as amended by section 1701 of this Act.

SEC. 5508. REPEAL.

    The Transportation Equity Act for the 21st Century is amended by 
striking subtitle C of title V.

        TITLE VI--TRANSPORTATION PLANNING; INTERMODAL FACILITIES

SEC. 6001. TRANSPORTATION PLANNING.

    (a) In General.--Subtitle III of title 49, United States Code, is 
amended by adding the following after chapter 51:

                 ``CHAPTER 52--TRANSPORTATION PLANNING

``Sec.
``5201. Policy.
``5202. Definitions.
``5203. Metropolitan transportation planning.
``5204. Statewide transportation planning.
``Sec. 5201. Policy
    ``(a) It is in the national interest to--
            ``(1) encourage and promote the safe and efficient 
        management, operation, and development of surface 
        transportation systems that will serve the mobility needs of 
        people and freight and foster economic growth and development 
        within and between States and urbanized areas, while minimizing 
        transportation-related fuel consumption and air and water 
        pollution through metropolitan and statewide transportation 
        planning processes identified in this chapter;
            ``(2) encourage the continued improvement and evolution of 
        the metropolitan and statewide transportation planning 
        processes by metropolitan planning organizations, State 
        Departments of Transportation, and public transit operators 
        through the use of performance-based approaches in the 
        development of transportation plans and investments as guided 
        by the planning factors identified in subsection 5203(f) and 
        5204(d) of this chapter; and
            ``(3) encourage private enterprise participation in 
        projects and transportation services.
    ``(b) The provisions of sections 5203-5204 of this chapter shall be 
jointly administered by the Federal Highway and Federal Transit 
Administrators.
``Sec. 5202. Definitions
    ``(a) Unless otherwise specified in subsection (b), the definitions 
in section 101(a) of title 23 and section 5302 of this title are 
applicable to this chapter.
    ``(b) As used in this chapter--
            ``(1) Consultation.--The term `consultation' means that one 
        party confers with another identified party in accordance with 
        an established process and, prior to taking action(s), 
        considers that party's views and periodically informs that 
        party about action(s) taken.
            ``(2) Metropolitan planning area.--The term `metropolitan 
        planning area' means the geographic area determined by 
        agreement between the metropolitan planning organization and 
        the Governor as defined in section 5203(c) of this title.
            ``(3) Metropolitan planning organization (MPO).--The term 
        `metropolitan planning organization' means the Policy Board of 
        the organization created as a result of the designation process 
        defined in section 5203(b) of this title.
            ``(4) Non-metropolitan area.--The term `non-metropolitan 
        area' means the geographic area outside designated metropolitan 
        planning areas.
            ``(5) Non-metropolitan local official.--The term `non-
        metropolitan local official' means elected and appointed 
        officials of general purpose local government, in non-
        metropolitan areas, with jurisdiction/responsibility for 
        transportation.
            ``(6) Urbanized area.--The term `urbanized area' means a 
        geographic area with a population of 50,000 or more, as 
        designated by the Bureau of the Census.
            ``(7) State.--The term `State' means a State of the United 
        States, the District of Columbia, and Puerto Rico.
``Sec. 5203. Metropolitan transportation planning
    ``(a) General Requirements.--
            ``(1) Development of plans.--To accomplish the objectives 
        stated in section 5201, metropolitan planning organizations 
        designated under subsection (b) of this section, in cooperation 
        with the State and public transportation operators, shall 
        develop transportation plans for metropolitan planning areas of 
        the State.
            ``(2) Contents.--The plans for each metropolitan area shall 
        provide for the development and integrated management and 
        operation of transportation systems and facilities (including 
        pedestrian walkways and bicycle transportation facilities) that 
        will function as an intermodal transportation system for the 
        metropolitan planning area and as an integral part of an 
        intermodal transportation system for the State and the United 
        States.
            ``(3) Process of development.--The process for developing 
        the plans shall provide for consideration of all modes of 
        transportation and shall be continuing, cooperative, and 
        comprehensive to the degree appropriate, based on the 
        complexity of the transportation problems to be addressed.
            ``(4) Planning and project development.--The metropolitan 
        planning organization, the State Department of Transportation, 
        and the appropriate public transportation provider shall agree 
        upon the approaches that will be used to evaluate alternatives 
        and identify transportation improvements that address the most 
        complex problems and pressing transportation needs in the 
        metropolitan area.
    ``(b) Designation of Metropolitan Planning Organizations.--
            ``(1) In general.--To carry out the transportation planning 
        process required by this section, a metropolitan planning 
        organization (MPO) shall be designated for each urbanized area 
        with a population of more than 50,000 individuals--
                    ``(A) by agreement between the Governor and units 
                of general purpose local government that together 
                represent at least 75 percent of the affected 
                population (including the largest incorporated city 
                (based on population) as named by the Bureau of the 
                Census); or
                    ``(B) in accordance with procedures established by 
                applicable State or local law.
            ``(2) Structure.--Each metropolitan planning organization 
        that serves an area identified as a transportation management 
        area, when designated or redesignated under this subsection, 
        shall consist of--
                    ``(A) local elected officials;
                    ``(B) officials of public agencies that administer 
                or operate major modes of transportation in the 
                metropolitan area; and
                    ``(C) appropriate State officials.
            ``(3) Limitation on statutory construction.--Nothing in 
        this subsection shall be construed to interfere with the 
        authority, under any State law in effect on December 18, 1991, 
        of a public agency with multimodal transportation 
        responsibilities to--
                    ``(A) develop plans and programs for adoption by a 
                metropolitan planning organization; and
                    ``(B) develop long-range capital plans, coordinate 
                transit services and projects, and carry out other 
                activities pursuant to State law.
            ``(4) Continuing designation.--A designation of a 
        metropolitan planning organization under this subsection or any 
        other provision of law shall remain in effect until the 
        metropolitan planning organization is redesignated under 
        paragraph (5).
            ``(5) Redesignation procedures.--A metropolitan planning 
        organization may be redesignated by agreement between the 
        Governor and units of general purpose local government that 
        together represent at least 75 percent of the existing planning 
        area population (including the largest incorporated city (based 
        on population) as named by the Bureau of the Census) as 
        appropriate to carry out this section.
            ``(6) Designation of more than 1 metropolitan planning 
        organization.--More than 1 metropolitan planning organization 
        may be designated within an existing metropolitan planning area 
        only if the Governor and the existing metropolitan planning 
        organization determine that the size and complexity of the 
        existing metropolitan planning area make designation of more 
        than 1 metropolitan planning organization for the area 
        appropriate.
    ``(c) Metropolitan Planning Area Boundaries.--
            ``(1) In general.--For the purposes of this section, the 
        boundaries of a metropolitan planning area shall be determined 
        by agreement between the metropolitan planning organization and 
        the Governor.
            ``(2) Included area.--Each metropolitan planning area--
                    ``(A) shall encompass at least the existing 
                urbanized area and the contiguous area expected to 
                become urbanized within a 20-year forecast period for 
                the transportation plan; and
                    ``(B) may encompass the entire metropolitan 
                statistical area or consolidated metropolitan 
                statistical area, as defined by the Office of 
                Management and Budget.
            ``(3) Identification of new urbanized areas within existing 
        planning area boundaries.--The designation by the Bureau of the 
        Census of new urbanized areas within an existing metropolitan 
        planning area shall not require the redesignation of the 
        existing metropolitan planning organization.
            ``(4) Existing metropolitan planning areas in 
        nonattainment.--Notwithstanding paragraph (2), in the case of 
        an urbanized area designated as a nonattainment area for ozone 
        or carbon monoxide under the Clean Air Act (42 U.S.C. 7401 et 
        seq.), the boundaries of the metropolitan planning area in 
existence as of the date of enactment of this paragraph shall be 
retained, except that the boundaries may be adjusted by agreement of 
the Governor and affected metropolitan planning organizations in the 
manner described in subsection (c)(5).
            ``(5) New metropolitan planning areas in nonattainment.--In 
        the case of an urbanized area designated after the date of 
        enactment of this paragraph in a nonattainment area for ozone 
        or carbon monoxide, the boundaries of the metropolitan planning 
        area--
                    ``(A) shall be established in the manner described 
                in subsection (b)(1);
                    ``(B) shall encompass the areas described in 
                paragraph (c)(2)(A);
                    ``(C) may encompass the areas described in 
                paragraph (c)(2)(B); and
                    ``(D) may address any nonattainment identified 
                under the Clean Air Act (42 U.S.C. 7401 et seq.) for 
                ozone or carbon monoxide.
    ``(d) Coordination in Multistate Areas.--
            ``(1) In general.--The Secretary shall encourage each 
        Governor with responsibility for a portion of a multistate 
        metropolitan area and the appropriate metropolitan planning 
        organizations to provide coordinated transportation planning 
        for the entire metropolitan area.
            ``(2) Interstate compacts.--The consent of Congress is 
        granted to any 2 or more States--
                    ``(A) to enter into agreements or compacts, not in 
                conflict with any law of the United States, for 
                cooperative efforts and mutual assistance in support of 
                activities authorized under this section as the 
                activities pertain to interstate areas and localities 
                within the States; and
                    ``(B) to establish such agencies, joint or 
                otherwise, as the States may determine desirable for 
                making the agreements and compacts effective.
            ``(3) Lake tahoe region.--
                    ``(A) Definition.--In this paragraph, the term 
                `Lake Tahoe region' has the meaning given the term 
                `region' in subdivision (a) of article II of the Tahoe 
                Regional Planning Compact, as set forth in the first 
                section of Public Law 96-551 (94 Stat. 3234).
                    ``(B) Transportation planning process.--The 
                Secretary shall--
                            ``(i) establish with the Federal land 
                        management agencies that have jurisdiction over 
                        land in the Lake Tahoe region a transportation 
                        planning process for the region; and
                            ``(ii) coordinate the transportation 
                        planning process with the planning process 
                        required of State and local governments under 
                        this section and section 5204.
                    ``(C) Interstate compact.--
                            ``(i) In general.--Subject to clause (ii), 
                        notwithstanding subsection (b), to carry out 
                        the transportation planning process required by 
                        this section, the consent of Congress is 
                        granted to the States of California and Nevada 
                        to designate a metropolitan planning 
                        organization for the Lake Tahoe region, by 
                        agreement between the Governors of the States 
                        of California and Nevada and units of general 
                        purpose local government that together 
                        represent at least 75 percent of the affected 
                        population (including the central city or 
                        cities (as defined by the Bureau of the 
                        Census)), or in accordance with procedures 
                        established by applicable State or local law.
                            ``(ii) Involvement of federal land 
                        management agencies.--
                                    ``(I) Representation.--The policy 
                                board of a metropolitan planning 
                                organization designated under clause 
                                (i) shall include a representative of 
                                each Federal land management agency 
                                that has jurisdiction over land in the 
                                Lake Tahoe region.
                                    ``(II) Funding.--In addition to 
                                funds made available to the 
                                metropolitan planning organization 
                                under other provisions of title 23 and 
                                under chapter 53 of this title, not 
                                more than 1 percent of the funds 
                                allocated under section 202 of title 23 
                                may be used to carry out the 
                                transportation planning process for the 
                                Lake Tahoe region under this 
                                subparagraph.
                    ``(D) Activities.--Highway projects included in 
                transportation plans developed under this paragraph--
                            ``(i) shall be selected for funding in a 
                        manner that facilitates the participation of 
                        the Federal land management agencies that have 
                        jurisdiction over land in the Lake Tahoe 
                        region; and
                            ``(ii) may, in accordance with chapter 2 of 
                        title 23, be funded using funds allocated under 
                        section 202 of title 23.
    ``(e) Coordination of MPOS.--
            ``(1) Nonattainment areas.--If more than 1 metropolitan 
        planning organization has authority within a metropolitan area 
        or an area which is designated as a nonattainment area for 
        ozone or carbon monoxide under the Clean Air Act, each 
        metropolitan planning organization shall consult with the other 
        metropolitan planning organizations designated for such area 
and the State in the coordination of plans required by this section.
            ``(2) Transportation improvements located in multiple 
        mpos.--If a transportation improvement, funded from the highway 
        trust fund, is located within the boundaries of more than 1 
        metropolitan planning area, the metropolitan planning 
        organizations shall coordinate plans regarding the 
        transportation improvement.
            ``(3) Interregional and interstate project impacts.--
        Planning for NHS, commuter rail projects or other projects with 
        substantial impacts outside a single metropolitan planning area 
        or State shall be coordinated directly with the affected, 
        contiguous MPOs and States.
            ``(4) Coordination with other planning processes.--The 
        Secretary shall encourage each MPO to coordinate its planning 
        process, to the maximum extent practicable, with those 
        officials responsible for other types of planning activities 
        that are affected by transportation, including State and local 
        planned growth, economic development, environmental protection, 
        airport operations, and freight. The metropolitan planning 
        process shall develop transportation plans with due 
        consideration of, and in coordination with, other related 
        planning activities within the metropolitan area. This should 
        include the design and delivery of transportation services 
        within the metropolitan area that are provided by--
                    ``(A) recipients of assistance under chapter 53 of 
                this title;
                    ``(B) governmental agencies and nonprofit 
                organizations (including representatives of the 
                agencies and organizations) that receive Federal 
                assistance from a source other than the Department of 
                Transportation to provide non-emergency transportation 
                services; and
                    ``(C) recipients of assistance under section 204 of 
                title 23.
    ``(f) Scope of Planning Process.--
            ``(1) In general.--The goals and objectives developed 
        through the metropolitan planning process for a metropolitan 
        planning area under this section shall address the following 
        factors as they relate to the performance of the metropolitan 
        area transportation systems to--
                    ``(A) support the economic vitality of the 
                metropolitan area, especially by enabling global 
                competitiveness, productivity, and efficiency, 
                including through services provided by public and 
                private operators;
                    ``(B) increase the safety of the transportation 
                system for motorized and nonmotorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and for freight, including through services 
                provided by public and private operators;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, and promote consistency between 
                transportation improvements and State and local planned 
                growth and economic development patterns;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes, 
                for people and freight, including through services 
                provided by public and private operators;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system, including services provided by 
                public and private operators.
            ``(2) Failure to consider factors.--The failure to consider 
        any factor specified in paragraph (1) shall not be reviewable 
        by any court under title 23 or this title, subchapter II of 
        chapter 5 of title 5, or chapter 7 of title 5 in any matter 
        affecting a transportation plan, a transportation improvement 
        plan, a project or strategy, or the certification of a planning 
        process.
    ``(g) Development of Transportation Plan.--
            ``(1) In general.--Each metropolitan planning organization 
        shall prepare, and update at least every five years a 
        transportation plan for its metropolitan planning area in 
        accordance with the requirements of this subsection.
            ``(2) Transportation plan.--A transportation plan under 
        this section shall be in a form that the Secretary determines 
        to be appropriate and shall contain, at a minimum, the 
        following:
                    ``(A) An identification of transportation 
                facilities (including but not necessarily limited to 
                major roadways, transit, multimodal and intermodal 
                facilities, and intermodal connectors) that should 
                function as an integrated metropolitan transportation 
                system, giving emphasis to those facilities that serve 
                important national and regional transportation 
                functions. In formulating the transportation plan, the 
                metropolitan planning organization shall consider 
                factors described in subsection (f) as such factors 
                relate to a 20-year forecast period.
                    ``(B) A financial plan that demonstrates how the 
                adopted transportation plan can be implemented, 
                indicates resources from public and private sources 
                that are reasonably expected to be made available to 
                carry out the plan, and recommends any additional 
                financing strategies for needed projects and programs. 
                The financial plan may include, for illustrative 
                purposes, additional projects that would be included in 
                the adopted transportation plan if reasonable 
                additional resources beyond those identified in the 
                financial plan were available. However, no illustrative 
                project may be advanced without an action of the 
                Secretary. For the purpose of developing the 
transportation plan, the metropolitan planning organization, transit 
operator and State shall cooperatively develop estimates of funds that 
will be available to support plan implementation.
                    ``(C) Operational and management strategies to 
                improve the performance of existing transportation 
                facilities to relieve vehicular congestion and maximize 
                the safety and mobility of people and goods.
                    ``(D) Capital investment and other strategies to 
                preserve the existing metropolitan transportation 
                infrastructure and provide for multimodal capacity 
                increases based on regional priorities and needs.
                    ``(E) Proposed transportation and transit 
                enhancement activities.
                    ``(3) Coordination with clean air act agencies.--In 
                metropolitan areas which are in nonattainment for ozone 
                or carbon monoxide under the Clean Air Act, the 
                metropolitan planning organization shall coordinate the 
                development of transportation plan with the process for 
                development of the transportation control measures of 
                the State implementation plan required by the Clean Air 
                Act.
            ``(4) Transportation conformity.--
                    ``(A) For the purposes of Section 7506 of title 42, 
                United States Code, the transportation plan shall be 
                considered to be a transportation plan or a portion of 
                a transportation plan, developed pursuant to this 
                section that extends for the longest of the following 
                periods--
                            ``(i) the first 10-year period of any such 
                        plan,
                            ``(ii) the latest year in the area's 
                        applicable implementation plan which contains a 
                        motor vehicle emissions budget, or
                            ``(iii) the completion date of a regionally 
                        significant project, if the project requires 
                        approval before the subsequent conformity 
                        determination.
                    ``(B) A regional motor vehicle emissions analysis 
                for the last year of the transportation plan shall be 
                developed for information purposes only, if such year 
                extends beyond the time frame established by 
                subparagraph (A). The results of the analysis shall be 
                provided to involved governors, the Administrator of 
                the Environmental Protection Agency, and the Secretary 
                of the Department of Transportation, and should be 
                considered by air quality and transportation planning 
                agencies in subsequent updates of air quality and 
                transportation plans. The results of this analysis 
                shall be made available to the public.
            ``(5) Participation by interested parties.--Before the 
        approval of a transportation plan by the Governor and 
        metropolitan planning organization, each metropolitan planning 
        organization shall provide citizens, affected public agencies, 
        representatives of public transportation employees, freight 
        shippers, providers of freight transportation services, private 
        providers of transportation, representatives of users of public 
        transit, representatives of users of pedestrian walkways and 
        bicycle transportation facilities, and other interested parties 
        with a reasonable opportunity to comment on the transportation 
        plan, in a manner that the Secretary deems appropriate.
            ``(6) Approval of transportation plan.--
                    ``(A) Each transportation plan prepared by a 
                metropolitan planning organization shall be--
                            ``(i) approved by the MPO, and
                            ``(ii) submitted to the Governor for 
                        approval of the first five years of the plan.
                    ``(B) The projects listed in the first five years 
                of the plan may be selected for advancement consistent 
                with the project selection requirements. Major 
                amendments (addition, deletion, or concept and scope 
                change of a regionally significant project) to this 
                list would require appropriate public involvement, 
                financial planning, transportation conformity analyses 
                and a finding by the FHWA and FTA that the amended plan 
                was produced in a manner consistent with this section.
            ``(7) Included projects.--
                    ``(A) Projects under chapter 1 of title 23 and 
                chapter 53 of title 49.--A transportation plan 
                developed under this section for a metropolitan area 
                shall include the projects and strategies within the 
                area that are proposed for funding under chapter 1 of 
                title 23 and chapter 53 of title 49.
                    ``(B) Projects under chapter 2 of title 23--
                regionally significant projects.--Regionally 
                significant projects proposed for funding under chapter 
                2 of title 23 shall be identified individually in the 
                metropolitan transportation plan.
                    ``(C)  Other projects.--Projects proposed for 
                funding under chapter 2 of title 23 that are not 
                determined to be regionally significant shall be 
                grouped in 1 line item or identified individually in 
                the metropolitan transportation plan.
            ``(8) Selection of projects.--
                    ``(A) In general.--Except as otherwise provided in 
                subsection (h)(4) the selection of federally funded 
                projects in metropolitan planning areas shall be 
                carried out, from the approved transportation plan--
                            ``(i) by--
                                    ``(I) in the case of projects under 
                                chapter 1 of title 23, the State;
                                    ``(II) in the case of projects 
                                under section 5307 of this title, the 
                                designated transit funding recipients; 
                                and
                                    (III) in the case of projects under 
                                5308, 5310, 5311, and 5317, the State; 
                                and
                            ``(ii) in cooperation with the metropolitan 
                        planning organization.
                    ``(B) Modifications to project priority.--
                Notwithstanding any other provision of law, action by 
                the Secretary shall not be required to advance a 
                project from the first five years of the plan included 
                in the approved transportation plan in place of another 
                project in the same five-year period.
            ``(9) Publication.--
                    ``(A) Publication of transportation plan.--A 
                transportation plan involving federal participation 
                shall be published or otherwise made readily available 
                by the metropolitan planning organization for public 
                review.
                    ``(B) Publication of annual listings of projects.--
                An annual listing of projects, including investments in 
                pedestrian walkways and bicycle transportation 
                facilities, for which Federal funds have been obligated 
                in the preceding five years shall be published or 
                otherwise made available by the cooperative effort of 
                the State, transit operator and the metropolitan 
                planning organization for public review. The listing 
                shall be consistent with the funding categories 
                identified in the first five years of the 
                transportation plan.
    ``(h) Transportation Management Areas.--
            ``(1) Required identification.--The Secretary shall 
        identify as a transportation management area each urbanized 
        area (as defined by the Bureau of the Census) with a population 
        of over 200,000 individuals.
            ``(2) Transportation plans.--In a metropolitan planning 
        area serving a transportation management area, transportation 
        plans shall be based on a continuing and comprehensive 
        transportation planning process carried out by the metropolitan 
        planning organization in cooperation with the State and transit 
        operators.
            ``(3) Congestion management system.--Within a metropolitan 
        planning area serving a transportation management area, the 
        transportation planning process under this section shall 
        address congestion management through a process that provides 
        for effective management and operation, based on a 
        cooperatively developed and implemented metropolitan-wide 
        strategy, of new and existing transportation facilities 
        eligible for funding under title 23 and chapter 53 of this 
        title through the use of travel demand reduction and 
        operational management strategies. The Secretary shall 
        establish an appropriate phase-in schedule for compliance with 
        the requirements of this section but no sooner than one-year 
        after the identification of a transportation management area.
            ``(4) Selection of projects.--
                    ``(A) In general.--All federally funded projects 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area 
                under title 23 (excluding projects carried out on the 
                National Highway System and projects carried out under 
                the bridge program or the Interstate maintenance 
                program) or under chapter 53 of this title shall be 
                selected for implementation from the approved 
                transportation plan by the metropolitan planning 
                organization designated for the area in consultation 
                with the State and any affected public transit 
                operator.
                    ``(B) National highway system projects.--Projects, 
                carried out within the boundaries of a metropolitan 
                planning area serving a transportation management area, 
                on the National Highway System and projects carried out 
                within such boundaries under the bridge program or the 
                Interstate maintenance program under title 23 shall be 
                selected for implementation from the approved 
                transportation plan by the State in cooperation with 
                the metropolitan planning organization designated for 
                the area.
            ``(5) Certification.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) ensure that the metropolitan planning 
                        process of an MPO serving a transportation 
                        management area is being carried out in 
                        accordance with applicable provisions of 
                        Federal law; and
                            ``(ii) subject to subparagraph (B), 
                        certify, not less often than once every 5 years 
                        that the requirements of this paragraph are met 
                        with respect to the metropolitan planning 
                        process.
                    ``(B) Requirements for certification.--The 
                Secretary may make the certification under subparagraph 
                (A) if--
                            ``(i) the transportation planning process 
                        complies with the requirements of this section 
                        and other applicable requirements of Federal 
                        law; and
                            ``(ii) there is a transportation plan for 
                        the metropolitan planning area that has been 
                        approved by the metropolitan planning 
                        organization and the Governor.
                    ``(C) Effect of failure to certify.--
                            ``(i) Withholding of project funds.--If a 
                        metropolitan planning process of an 
                        metropolitan planning organization serving a 
                        TMA is not certified, the Secretary may 
                        withhold a portion or all of the funds 
                        available to metropolitan planning area of the 
                        metropolitan planning organization for projects 
                        funded under title 23 and chapter 53 of this 
                        title.
                            ``(ii) Restoration of withheld funds.--The 
                        withheld funds shall be restored to the 
                        metropolitan planning area at such time as the 
metropolitan planning process is certified by the Secretary.
                    ``(D) Review of certification.--In making 
                certification determinations under this paragraph, the 
                Secretary shall provide for public involvement 
                appropriate to the metropolitan area under review.
    ``(i)  Abbreviated Plans for Certain Areas.--
            ``(1) In general.--Subject to paragraph (2), in the case of 
        a metropolitan area not designated as a transportation 
        management area under this section, the Secretary may provide 
        for the development of an abbreviated transportation plan for 
        the metropolitan planning area that the Secretary determines is 
        appropriate to achieve the purposes of this section, taking 
        into account the complexity of transportation problems in the 
        area.
            ``(2) Nonattainment areas.--The Secretary may not permit 
        abbreviated plans for a metropolitan area that is in 
        nonattainment for ozone or carbon monoxide under the Clean Air 
        Act (42 U.S.C. 7401 et seq.).
    ``(j) Additional Requirements for Certain Nonattainment Areas.--
            ``(1) In general.--Notwithstanding any other provisions of 
        title 23 or chapter 53 of this title, for transportation 
        management areas classified as nonattainment for ozone or 
        carbon monoxide pursuant to the Clean Air Act, Federal funds 
        may not be advanced in such area for any highway project that 
        will result in a significant increase in carrying capacity for 
        single-occupant vehicles unless the project is addressed 
        through a congestion management process.
            ``(2) Applicability.--This subsection applies to a 
        nonattainment area within the metropolitan planning area 
        boundaries determined under subsection (c).
    ``(k) Limitation on Statutory Construction.--Nothing in this 
section shall be construed to confer on a metropolitan planning 
organization the authority to impose legal requirements on any 
transportation facility, provider, or project not eligible under title 
23 or chapter 53 of this title.
    ``(l) Funding.--Funds set aside under section 104(f) of title 23 or 
section 5305(h) of this title shall be available to carry out this 
section.
    ``(m) Continuation of Current Review Practice.--Since plans 
described in this section are subject to a reasonable opportunity for 
public comment, individual projects included in plans are subject to 
review under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.), and decisions by the Secretary concerning plans 
described in this section have not been reviewed under such Act as of 
January 1, 1997, any decision by the Secretary concerning a plan 
described in this section shall not be considered to be a Federal 
action subject to review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.).
    ``(n) Relationship to the NEPA Process.--
            ``(1) To expedite the planning and development of 
        transportation improvements in compliance with this section and 
        section 5204 and the National Environmental Policy Act (42 
        U.S.C. 4321 et seq.), to facilitate compliance with the Clean 
        Water Act (33 U.S.C. 1251 et seq.) and other Federal 
        environmental laws, and to fulfill the directive in section 
        1308 of the Transportation Equity Act for the 21st Century, 
        Public Law 105-206, to integrate the major investment study 
        requirement into the transportation planning and National 
        Environmental Policy Act processes, the Secretary and heads of 
        other Federal agencies shall presume that the results of 
        studies developed as part of the planning process establish the 
        basis for an environmental assessment or impact statement, 
        provided that such studies, pursuant to the provisions of this 
        section--
                    ``(A) are consistent with subsection (a)(4) of this 
                section;
                    ``(B) provided opportunities for citizens and 
                interested parties to participate during the studies;
                    ``(C) included consideration of an appropriate 
                range of alternatives, such as alternative modes, 
                technologies, general alignments, and policies; and
                    ``(D) considered the planning factors of subsection 
                (f)(1).
            ``(2) The results of studies developed as part of the 
        planning process and that are presumed to establish the basis 
        for an environmental assessment or impact statement, as 
        described in subsection (1) of this section, include, but are 
        not limited to--
                    ``(A) the purpose and need;
                    ``(B) the alternatives selected for evaluation in 
                an environmental assessment or impact statement; and
                    ``(C) an assessment of environmental impacts 
                related to development growth, including indirect and 
                cumulative effects, that is consistent with local land 
                use, growth management, or development plans.
            ``(3) The results of studies developed during the planning 
        process may be appended to or incorporated by reference in and 
        used to substantiate an environmental assessment or impact 
        statement.
``Sec. 5204. Statewide transportation planning
    ``(a) General Requirements.--
            ``(1) Development of plans and programs.--To accomplish the 
        objectives stated in section 5201, each State shall develop a 
        statewide transportation plan and a statewide Transportation 
        Improvement Program (STIP) for all areas of the State subject 
        to section 5203.
            ``(2) Contents.--The statewide transportation plan and the 
        STIP developed for each State shall provide for the development 
        and integrated management and operation of transportation 
        systems and facilities (including pedestrian walkways and 
        bicycle transportation facilities) that will function as an 
        intermodal transportation system for the State and an integral 
        part of an intermodal transportation system for the State and 
an integral part of an intermodal transportation system for the United 
States.
            ``(3) Process of development.--The process for developing 
        the statewide plan and the STIP shall provide for consideration 
        of all modes of transportation and the policies stated in 
        section 5201, and shall be continuing, cooperative, and 
        comprehensive to the degree appropriate, based on the 
        complexity of the transportation problems to be addressed.
    ``(b) Coordination With Metropolitan Planning; State Implementation 
Plan.--A State shall--
            ``(1) coordinate planning carried out under this section 
        with the transportation planning activities carried out under 
        section 5203 of this title for metropolitan areas of the State 
        and with other related Statewide planning activities such as 
        trade and economic development and related multi-State planning 
        efforts,
            ``(2) develop the transportation portion of the State 
        implementation plan as required by the Clean Air Act (42 U.S.C. 
        7401 et seq.), and
            ``(3) participate in the integration of planning and 
        environmental studies pursuant to section 5203(n) of this 
        chapter.
    ``(c) Interstate Agreements.--The consent of Congress is granted to 
2 or more States entering into agreements or compacts, not in conflict 
with any law of the United States, for cooperative efforts and mutual 
assistance in support of activities authorized under this section 
related to interstate areas and localities in the States and 
establishing authorities the States consider desirable for making the 
agreements and compacts effective.
    ``(d) Scope of Planning Process.--
            ``(1) In general.--Each State shall carry out a statewide 
        transportation planning process that provides for consideration 
        of projects, strategies and implementing projects and services 
        that will--
                    ``(A) support the economic vitality of the United 
                States, the States, non-metropolitan areas, and 
                metropolitan areas, especially by enabling global 
                competitiveness, productivity, and efficiency;
                    ``(B) increase the safety of the transportation 
                system for motorized and non-motorized users;
                    ``(C) increase the security of the transportation 
                system for motorized and nonmotorized users;
                    ``(D) increase the accessibility and mobility of 
                people and freight;
                    ``(E) protect and enhance the environment, promote 
                energy conservation, promote consistency between 
                transportation improvements and State and local planned 
                growth and economic development patterns, and improve 
                the quality of life;
                    ``(F) enhance the integration and connectivity of 
                the transportation system, across and between modes 
                throughout the State, for people and freight;
                    ``(G) promote efficient system management and 
                operation; and
                    ``(H) emphasize the preservation of the existing 
                transportation system.
            ``(2) Failure to consider factors.--The failure to consider 
        any factor specified in paragraph (1) of this subsection shall 
        not be reviewable by any court under title 23 or this title, 
        subchapter II of chapter 5 of title 5, or chapter 7 of title 5 
        in any matter affecting a statewide transportation plan, the 
        STIP, a project or strategy, or the certification of a planning 
        process.
    ``(e) Additional Requirements.--In carrying out planning under this 
section, each State shall consider, at a minimum--
            ``(1) with respect to non-metropolitan areas, the concerns 
        of affected local officials with responsibility for 
        transportation;
            ``(2) the concerns of Indian tribal governments and Federal 
        land management agencies that have jurisdiction over land 
        within the boundaries of the State; and
            ``(3) coordination of transportation plans, the STIP, and 
        planning activities with related planning activities being 
        carried out outside of metropolitan planning areas and between 
        States;
    ``(f) Statewide Transportation Plan.--
            ``(1) Development.--Each State shall develop a statewide 
        transportation plan, with a minimum 20-year forecast period, 
        updated at least every five years, for all areas of the State, 
        that provides for the development and implementation of the 
        intermodal transportation system of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--The statewide 
                transportation plan shall be developed for each 
                metropolitan area in the State in cooperation with the 
                metropolitan planning organization designated for the 
                metropolitan area under section 5203.
                    ``(B) Non-metropolitan areas.--With respect to non-
                metropolitan areas, the statewide transportation plan 
                shall be developed in consultation with affected non-
                metropolitan officials with responsibility for 
                transportation. The Secretary shall not review or 
                approve the consultation process in each State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the statewide transportation plan 
                shall be developed in consultation with the tribal 
                government and the Secretary of the Interior.
            ``(3) Participation by interested parties.--In developing 
        the statewide transportation plan, the State shall--
                    ``(A) provide citizens, affected public agencies, 
                representatives of public transportation employees, 
                freight shippers, private providers of transportation, 
                representatives of users of public transportation, 
                representatives of users of pedestrian walkways and 
                bicycle transportation facilities, providers of freight 
                transportation services, and other interested parties 
                with a reasonable opportunity to comment on the 
                proposed plan; and
                    ``(B) identify transportation strategies necessary 
                to efficiently serve the mobility needs of people.
            ``(4) Financial plan.--The statewide transportation plan 
        may include a financial plan that demonstrates how the adopted 
        statewide transportation plan can be implemented, indicates 
        resources from public and private sources that are reasonably 
        expected to be made available to carry out the plan, and 
        recommends any additional financing strategies for needed 
        projects and programs. The financial plan may include, for 
        illustrative purposes, additional projects that would be 
        included in the adopted statewide transportation plan if 
        reasonable additional resources beyond those identified in the 
        financial plan were available.
            ``(5) Selection of projects from illustrative list.--A 
        State shall not be required to select any project from the 
        illustrative list of additional projects included in the 
        financial plan described in paragraph (4).
            ``(6) Existing system.--The statewide transportation plan 
        should include capital, operations and management strategies, 
        investments, procedures, and other measures to ensure the 
        preservation and most efficient use of the existing 
        transportation system.
    ``(g) Statewide Transportation Improvement Program (STIP).--
            ``(1) Development.--Each State shall develop a statewide 
        transportation improvement program for all areas of the State.
            ``(2) Consultation with governments.--
                    ``(A) Metropolitan areas.--With respect to each 
                metropolitan area in the State, the program shall be 
                developed in cooperation with the metropolitan planning 
                organization designated for the metropolitan area under 
                section 5203.
                    ``(B) Non-metropolitan areas.--With respect to each 
                non-metropolitan area in the State, the program shall 
                be developed in consultation with affected non-
                metropolitan local officials with responsibility for 
                transportation. The Secretary shall not review or 
                approve the specific consultation process in the State.
                    ``(C) Indian tribal areas.--With respect to each 
                area of the State under the jurisdiction of an Indian 
                tribal government, the program shall be developed in 
                consultation with the tribal Government and the 
                Secretary of the Interior.
            ``(3) Participation by interested parties.--In developing 
        the program, the State shall provide citizens, affected public 
        agencies, representatives of public transportation employees, 
        freight shippers, private providers of transportation, 
        providers of freight transportation services, representatives 
        of users of public transit, representatives of users of 
        pedestrian walkways and bicycle transportation facilities, and 
        other interested parties with a reasonable opportunity to 
        comment on the proposed program.
            ``(4) Included projects.--
                    ``(A) In general.--A transportation improvement 
                program developed under this subsection for a state 
                shall include federally supported surface 
                transportation expenditures within the boundaries of 
                the State. The program shall cover a minimum of five 
                years, identify projects by year, be fiscally 
                constrained by year, and be updated at least every five 
                years. An annual listing of projects for which funds 
                have been obligated in the preceding five years in each 
                metropolitan planning area shall be published or 
                otherwise made available by the cooperative effort of 
                the State, transit operator, and the metropolitan 
                planning organization for public review. Regionally 
                significant projects proposed for funding under chapter 
                2 of title 23 shall be identified individually in the 
                transportation improvement program. Other projects 
                proposed for funding under chapter 2 of title 23 that 
                are not determined to be regionally significant shall 
                be grouped in 1 line item or identified individually. 
                The listing shall be consistent with the funding 
                categories identified in the first five years of each 
                metropolitan transportation plan.
                    ``(B) Consistency with statewide transportation 
                plan.--Each project shall be--
                            ``(i) consistent with the statewide 
                        transportation plan developed under this 
                        section for the State;
                            ``(ii) identical to the project or phase of 
                        the project as described in each year of the 
                        initial five years of an approved metropolitan 
                        transportation plan; and
                            ``(iii) in conformance with the applicable 
                        State air quality implementation plan developed 
                        under the Clean Air Act (42 U.S.C. 7401 et 
                        seq.), if the project is carried out in an area 
                        designated as nonattainment for ozone or carbon 
                        monoxide under that Act.
                    ``(C) Requirement of anticipated full funding.--The 
                STIP shall include a project, or an identified phase of 
                a project, only if full funding can reasonably be 
                anticipated to be available for the project within the 
                time period contemplated for completion of the project.
                    ``(D) Financial plan.--The STIP may include a 
                financial plan that demonstrates how the approved STIP 
                can be implemented, indicates resources from public and 
                private sources that are reasonably expected to be made 
                available to carry out the STIP, and recommends any 
additional financing strategies for needed projects and programs. The 
financial plan may include, for illustrative purposes, additional 
projects that would be included in the adopted transportation plan if 
reasonable additional resources beyond those identified in the 
financial plan were available.
                    ``(E) Selection of projects from illustrative 
                list.--
                            ``(i) No required selection.--
                        Notwithstanding subparagraph (D), a State shall 
                        not be required to select any project from the 
                        illustrative list of additional projects 
                        included in the financial plan under 
                        subparagraph (D).
                            ``(ii) Required action by the secretary.--
                        Action by the Secretary shall be required for a 
                        State to select any project from the 
                        illustrative list of additional projects 
                        included in the financial plan under 
                        subparagraph (D) for inclusion in an approved 
                        STIP.
                    ``(F) Priorities.--The STIP shall reflect the 
                priorities for programming and expenditures of funds, 
                including transportation and transit enhancement 
                activities, required by title 23 and chapter 53 of this 
                title, and transportation control measures included in 
                the State's air quality implementation plan.
            ``(5) Project selection for areas of less than 50,000 
        population.--Projects carried out in areas with populations of 
        less than 50,000 individuals shall be selected, from the 
        approved STIP (excluding projects carried out on the National 
        Highway System and projects carried out under the bridge 
        program or the interstate maintenance program under title 23 or 
        sections 5308, 5310, 5311, and 5317 of this title), by the 
        State in cooperation with the affected non-metropolitan local 
        officials with responsibility for transportation. Projects 
        carried out in areas with populations of less than 50,000 
        individuals on the National Highway System or under the bridge 
        program or the interstate maintenance program under title 23 or 
        under sections 5308, 5310, 5311, and 5317 of this title shall 
        be selected, from the approved statewide transportation 
        improvement program, by the State in consultation with the 
        affected local officials with responsibility for 
        transportation.
            ``(6) STIP approval.--A STIP developed under this 
        subsection shall be reviewed and based on a current Planning 
        Finding approved at least every five years by the Secretary.
            ``(7) Planning finding.--A finding shall be made by the 
        Secretary at least every five years that the transportation 
        planning process(es) through which statewide transportation 
        plans and programs are developed are consistent with this 
        section and section 5203.
            ``(8) Modifications to project priority.--Notwithstanding 
        any other provision of law, action by the Secretary shall not 
        be required to advance a project included in the approved STIP 
        in place of another project in the program.
    ``(h) Funding.--Funds set aside pursuant to section 104(i) of title 
23 and 5305(h) of this title shall be available to carry out this 
section.
    ``(i) Treatment of Certain State Laws as Congestion Management 
Systems.--For purposes of this section and section 5203 of this title, 
State laws, rules or regulations pertaining to congestion management 
systems or programs may constitute the congestion management system 
under section 5203(h)(3) if the Secretary finds that the State laws, 
rules or regulations are consistent with, and fulfill the intent of, 
the purposes of section 5203, as appropriate.
    ``(j) Continuation of Current Review Practice.--Since the statewide 
transportation plan and the STIP described in this section are subject 
to a reasonable opportunity for public comment, since individual 
projects included in the statewide transportation plans and the STIP 
are subject to review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), and since decisions by the Secretary 
concerning statewide transportation plans or the STIP described in this 
section have not been reviewed under such Act as of January 1, 1997, 
any decision by the Secretary concerning a metropolitan or statewide 
transportation plan or the STIP described in this section shall not be 
considered to be a Federal action subject to review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
    ``(k) Integration of Planning and Environmental Studies.--Section 
5203(n) of this chapter shall also apply to the planning process 
established under this section, except that the planning factors to be 
considered shall be those set forth in subsection (d) of this 
section.''.
    (b) Consistency of Conformity Timing With the Transportation 
Plan.--Section 7506(c)(4) of title 42, United States Code, is amended--
            (1) in subparagraph (B)(ii) by striking ``, but in no case 
        shall such determinations for transportation plans and programs 
        be less frequent than every three years'', and inserting ``but 
        the frequency for making conformity determinations for 
        transportation plans must be consistent with subparagraph 
        (E)''; and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) The frequency for making conformity 
                determinations on updated transportation plans shall be 
                every five years, except when:
                            ``(i) the metropolitan planning 
                        organization chooses to update a transportation 
                        plan more frequently, or
                            ``(ii) changes to the applicable 
                        implementation plan trigger a new conformity 
                        determination, as provided in regulations 
                        promulgated by the Administrator pursuant to 
                        subparagraph (A) above.''.
    (c) Conforming Clarification.--Upon date of enactment of this Act, 
the references to ``program'' and ``improvement program'' in section 
7506 of title 42, United States Code, shall refer to the transportation 
plan developed pursuant to section 5203 of title 49, United States 
Code.
    (d) Streamlined State Conformity Rule Requirements.--Section 
7506(c)(4)(C) of title 42, United States Code, is amended to read as 
follows:
                    ``(C) Such procedures shall also include a 
                requirement that each State shall submit to the 
                Administrator and the Secretary of Transportation, 
                within 24 months of such date of enactment, a revision 
                to its implementation plan that includes criteria and 
                procedures for consultation in accordance with the 
                Administrator's criteria and procedures for 
                consultation required by subparagraph (B)(i) of this 
                paragraph.''.
    (e) Conforming Amendments.--(1) The table of chapters for title 49, 
United States Code, is amended by inserting the following after the 
item relating to chapter 51:

``52. Transportation Planning...............................    5201''.
            (2) The chapter analysis for Subtitle III of title 49, 
        United States Code, is amended by inserting the following after 
        the item relating to chapter 51:

``52. Transportation Planning...............................    5201''.

SEC. 6002. INTERMODAL PASSENGER FACILITIES.

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

           ``SUBCHAPTER III--INTERMODAL PASSENGER FACILITIES

Sec. 5571. Policy and purposes
    ``(a) Development and Enhancement of Intermodal Passenger 
Facilities.--It is in the economic interest of the United States to 
improve the efficiency of public surface transportation modes by 
ensuring their connection with and access to intermodal passenger 
terminals, thereby streamlining the transfer of passengers among modes, 
enhancing travel options, and increasing passenger transportation 
operating efficiencies.
    ``(b) General Purposes.--The purposes of this subchapter are to 
accelerate intermodal integration among North America's passenger 
transportation modes through--
            ``(1) assuring intercity public transportation access to 
        intermodal passenger facilities;
            ``(2) encouraging the development of an integrated system 
        of public transportation information; and
            ``(3) providing intercity bus intermodal passenger facility 
        grants.
Sec. 5572. Definitions
        ``In this subchapter--
            ``(1) `capital project' means a project for--
                    ``(A) acquiring, constructing, improving, or 
                renovating an intermodal facility that is related 
                physically and functionally to intercity bus service 
                and establishes or enhances coordination between 
                intercity bus service and transportation, including 
                aviation, commuter rail, intercity rail, public 
                transportation, seaports, and the National Highway 
                System, such as physical infrastructure associated with 
                private bus operations at existing and new intermodal 
                facilities, including special lanes, curb cuts, ticket 
                kiosks and counters, baggage and package express 
                storage, employee parking, office space, security, and 
                signage; and
                    ``(B) establishing or enhancing coordination 
                between intercity bus service and transportation, 
                including aviation, commuter rail, intercity rail, 
                public transportation, and the National Highway System 
                through an integrated system of public transportation 
                information.
            ``(2) `commuter service' means service designed primarily 
        to provide daily work trips within the local commuting area.
            ``(3) `intercity bus service' means regularly scheduled bus 
        service for the general public which operates with limited 
        stops over fixed routes connecting two or more urban areas not 
        in close proximity, which has the capacity for transporting 
        baggage carried by passengers, and which makes meaningful 
        connections with scheduled intercity bus service to more 
        distant points, if such service is available and may include 
        package express service, if incidental to passenger 
        transportation, but does not include air, commuter, water or 
        rail service.
            ``(4) `intermodal passenger facility' means passenger 
        terminal that does, or can be modified to, accommodate several 
        modes of transportation and related facilities, including some 
        or all of the following: intercity rail, intercity bus, 
        commuter rail, intra-city rail transit and bus transportation, 
        airport limousine service and airline ticket offices, rent-a-
        car facilities, taxis, private parking, and other 
        transportation services.
            ``(5) `local governmental authority' includes--
                    ``(A) a political subdivision of a State;
                    ``(B) an authority of at least one State or 
                political subdivision of a State;
                    ``(C) an Indian tribe; and
                    ``(D) a public corporation, board, or commission 
                established under the laws of the State.
            ``(6) `owner or operator of a public transportation 
        facility' means an owner or operator of intercity-rail, 
        intercity-bus, commuter-rail, commuter-bus, rail-transit, bus-
        transit, or ferry services.
            ``(7) `recipient' means a State or local governmental 
        authority or a nonprofit organization that receives a grant to 
        carry out this section directly from the Federal government.
            ``(8) `Secretary' means the Secretary of Transportation.
            ``(9) `state' means a State of the United States, the 
        District of Columbia, Puerto Rico, the Northern Mariana 
        Islands, Guam, American Samoa, and the Virgin Islands.
            ``(10) `urban area' means an area that includes a 
        municipality or other built-up place that the Secretary, after 
        considering local patterns and trends of urban growth, decides 
        is appropriate for a local public transportation system to 
        serve individuals in the locality.
``Sec. 5573. Assurance of access to intermodal passenger facilities
    ``Intercity buses and other modes of transportation shall, to the 
maximum extent practicable, have access to publicly funded intermodal 
passenger facilities including, but not limited to, those passenger 
facilities seeking funding under section 5574.
``Sec. 5574. Intercity bus intermodal passenger facility grants
    ``(a) General Authority.--The Secretary of Transportation may make 
grants under this section to recipients in financing a capital project, 
as defined in section 5572 of this chapter, only if the Secretary finds 
that the proposed project is justified and has adequate financial 
commitment.
    ``(b) Competitive Grant Selection.--The Secretary shall conduct a 
national solicitation for applications for grants under this section. 
Grantees shall be selected on a competitive basis.
    ``(c) Share of Net Project Costs.--
            ``(1) A grant shall not exceed 50 percent of the net 
        project cost, as determined by the Secretary.
            ``(2) The portion of the net costs of an eligible project 
        that is not funded under this section shall be from an 
        undistributed cash surplus, a replacement or depreciation cash 
        fund or reserve, or new capital and may include up to 30 
        percent from amounts appropriated to or made available to a 
        department or agency of the Federal government that are 
        eligible to be expended for transportation.
    ``(d) Regulations.--The Secretary may issue regulations necessary 
to carry out this section.
``Sec. 5575. Funding
    ``(a) Mass Transit Account.--
            ``(1) Funding.--To carry out this Subchapter, there is 
        authorized to be appropriated for each of fiscal years 2005 
        through 2009 from the Mass Transit Account of the Highway Trust 
        Fund the amounts made available under section 5338(a)(2)(O) of 
        this title.
            ``(2) Contractual obligations.--A grant approved by the 
        Secretary of Transportation that is financed with amounts made 
        available under subsection (a) of this section is a contractual 
        obligation of the United States Government to pay the 
        Government's share of the cost of the project.
    ``(b) Highway Account.--
            ``(1) There is authorized to be appropriated from the 
        Highway Trust Fund (other than the Mass Transit Account) to 
        carry out this subchapter $10,000,000 for each of fiscal years 
        2005 through 2009.
            ``(2) The funding made available under paragraph (1) of 
        this subsection shall be available for obligation in the same 
        manner as if such funds were apportioned under chapter 1 of 
        title 23 and shall be subject to any obligation limitation 
        imposed on funds for Federal-aid highways and highway safety 
        construction programs.
    ``(c) Period of Availability.--Amounts made available by subsection 
(a) of this section shall remain available until expended.''.
    (b) Conforming Amendment.--The table of contents for chapter 55 of 
title 49, United States Code, is amended by inserting the following at 
the end:
           ``subchapter iii--intermodal passenger facilities
Sec.
``5571. Policy and Purposes.
``5572. Definitions.
``5573. Assurance of access to intermodal facilities.
``5574. Intercity bus intermodal facility grants.
``5575. Funding.''.

                        TITLE VII--MISCELLANEOUS

                         Subtitle A--Railroads

SEC. 7101. RAIL CORRIDOR PLANNING.

    Section 26101(b)(1) of title 49, United States Code, is amended in 
the first sentence thereof by adding ``(1)'' after the word 
``determines'' and by adding ``or (2) that it is necessary to help 
promote an effective and efficient system of conventional speed 
intercity rail passenger operations'' after the word ``improvements''.

SEC. 7102. HIGH SPEED RAIL AUTHORIZATIONS.

    Section 26104 of Title 49, United States Code, is revised to read 
as follows:
``Sec. 26104. Authorization of appropriations
    ``(a) There are authorized to be appropriated to the Secretary 
$25,000,000 each year for fiscal years 2004 through 2009 for carrying 
out section 26101 (including payment of administrative expenses related 
thereto).
    ``(b) There are authorized to be appropriated to the Secretary 
$25,000,000 each year for fiscal years 2004 through 2009 for carrying 
out section 26102 (including payment of administrative expenses related 
thereto).''
    ``(c) Funds made available under this section shall remain 
available until expended.''.

      Subtitle B--Miscellaneous Technical Corrections to Title 49

SEC. 7201. CORRECTION OF OBSOLETE REFERENCES TO INTERSTATE COMMERCE 
              COMMISSION.

    (a) Except as otherwise provided, a reference in this section to an 
amendment to, or a repeal of, a section or other provision is deemed to 
be a reference to a section or other provision of title 49, United 
States Code.
    (b)(1) Section 307 (Safety information and intervention in 
Interstate Commerce Commission proceedings) is repealed.
    (2) The analysis of chapter 3 is amended by striking the item 
designated ``307''.
    (c) Subsections (d)(1)(C) and (e) of section 333 (Responsibility 
for rail transportation unification and coordination projects) are 
amended by striking ``Interstate Commerce Commission'' and 
``Commission'' each place the words appear and substituting ``Surface 
Transportation Board'' and ``Board'', respectively.
    (d) Section 10903(b)(2) is amended by striking ``24706(c) of this 
title'' and substituting ``24706(c) of this title before May 31, 
1998''.
    (e) Section 13541(a) is amended by striking ``finds that'' and all 
that follows, and substituting--``finds that the exemption is in the 
public interest and that the application of that provision--
            ``(1) is not necessary to carry out the transportation 
        policy of section 13101; and
            ``(2) is not needed to protect shippers from the abuse of 
        market power or that the transaction or service is of limited 
        scope.''.
    (f)(1) Section 14704 (Rights and remedies of persons injured by 
carriers or brokers) is amended as follows:
            (A) In subsection (a) --
                    (i) strike ``In general.--'' and all that follows 
                through ``injured'' and substitute ``Enforcement of 
                order.--A person injured''; and
                    (ii) redesignate paragraph (2) as subsection 
                (b)(2); and
            (B) In subsection (b), by striking ``Liability and 
        damages'' and all that follows through ``A carrier'' and 
        substitute ``Liability and damages.--(1) A carrier''.
    (2) Section 14705(c) is amended by striking ``14704(b)'' and 
substituting ``14704(b)(2)''.
    (g)(1) Subsection (c)(3) of section 24307 (Special transportation) 
is amended by striking ``Interstate Commerce Commission'' and 
substituting ``Surface Transportation Board''.
    (2) Section 24308 (Use of facilities and providing services to 
Amtrak) is amended by striking ``Interstate Commerce Commission'' and 
``Commission'' each place the words appear and substituting ``Surface 
Transportation Board'' and ``Board'', respectively.
    (3) Section 24311 (Acquiring interests in property by eminent 
domain) is amended by striking ``Interstate Commerce Commission'' and 
``Commission'' each place the words appear and substituting ``Surface 
Transportation Board'' and ``Board'', respectively.
    (4) Section 24902 (Goals and requirements) is amended by striking 
``Interstate Commerce Commission'' and ``Commission'' each place the 
words appear and substituting ``Surface Transportation Board'' and 
``Board'', respectively.
    (5) Section 24904 (General authority) is amended by striking 
``Interstate Commerce Commission'' and ``Commission'' each place the 
words appear and substituting ``Surface Transportation Board'' and 
``Board'', respectively.

             Subtitle C--Hazardous Material Transportation

SEC. 7301. DEFINITIONS.

    Section 5102 of title 49, United States Code, is amended by 
revising paragraph (1) to read as follows:
            ``(1) `commerce' means trade or transportation in the 
        jurisdiction of the United States
                    ``(A) between a place in a State and a place 
                outside of the State;
                    ``(B) that affects trade or transportation between 
                a place in a State and a place outside of the State; or
                    ``(C) on a United States-registered aircraft.''

SEC. 7302. REPRESENTATIONS AND TAMPERING WITH HAZARDOUS MATERIAL 
              PACKAGING.

    Section 5103(b)(1) of title 49, United States Code, is amended by 
revising subparagraph (A) to read as follows:
                    ``(A) apply to a person that--
                            ``(i) transports a hazardous material in 
                        commerce;
                            ``(ii) causes a hazardous material to be 
                        transported in commerce;
                            ``(iii) manufactures, designs, inspects, 
                        tests, reconditions, marks, or repairs a 
                        packaging or packaging component represented as 
                        qualified for use in transporting hazardous 
                        material in commerce;
                            ``(iv) prepares, accepts, or rejects 
                        hazardous material for transportation in 
                        commerce;
                            ``(v) is responsible for the safety of 
                        transporting hazardous material in commerce;
                            ``(vi) certifies compliance with any 
                        requirement issued under this chapter;
                            ``(vii) misrepresents whether it is engaged 
                        in any of the above activities; or
                            ``(viii) performs any other act or function 
                        relating to the transportation in commerce of a 
                        hazardous material; and''.

SEC. 7303. HAZARDOUS MATERIAL TRANSPORTATION SAFETY AND SECURITY.

    (a) Enhanced Authority To Discover Hidden Shipments of Hazardous 
Material.--Section 5121 of title 49, United States Code, is amended by 
revising subsection (c) to read as follows:
    ``(c) Inspections and Investigations.--(1) A designated officer or 
employee of the Secretary may--
                    ``(A) inspect and investigate, at a reasonable time 
                and in a reasonable way, records and property related 
                to a function described in section 5103(b)(1) of this 
                chapter;
                    ``(B) except for the packaging immediately adjacent 
                to its hazardous material contents, gain access to, 
                open, and examine a package offered for, or in, 
                transportation when the officer or employee has an 
                objectively reasonable and articulable belief that the 
                package may contain a hazardous material;
                    ``(C) remove from transportation a package or 
                related packages in a shipment offered for or in 
                transportation, and for which such officer or employee 
                has an objectively reasonable and articulable belief 
                that the package or packages may pose an imminent 
                hazard, and for which the officer or employee 
                contemporaneously documents that belief in accordance 
                with procedures established by the Secretary;
                    ``(D) gather information from the offeror, carrier, 
                packaging manufacturer or retester, or other person 
                responsible for the package or packages, to ascertain 
the nature and hazards of the contents of the package or packages;
                    ``(E) as necessary, under terms and conditions 
                specified by the Secretary, order the offeror, carrier, 
                packaging manufacturer or retester, or other person 
                responsible for the package or packages to have the 
                package or packages transported to, opened and the 
                contents examined and analyzed at a facility 
                appropriate for the conduct of this activity; and
                    ``(F) when safety might otherwise be compromised, 
                authorize properly qualified personnel to assist in the 
                activities conducted under this subsection.
            ``(2) An officer or employee acting under this subsection 
        shall display proper credentials when requested.
            ``(3) For instances when, as a result of the inspection or 
        investigation, an imminent hazard is not found to exist, the 
        Secretary shall develop procedures to assist in the safe 
        resumption of transportation of the package or transport 
        unit.''.
    (b) Emergency Authority for Hazardous Material Transportation.--
Section 5121 is amended by striking subsection (e), redesignating 
subsection (d) as subsection (e), and adding a new subsection (d) to 
read as follows:
    ``(d) Emergency Orders.--
            ``(1) If, upon inspection, investigation, testing, or 
        research, the Secretary determines that either a violation of a 
        provision of this chapter or a regulation issued under this 
        chapter, or an unsafe condition or practice, constitutes or is 
        causing an imminent hazard, the Secretary may issue or impose 
        emergency restrictions, prohibitions, recalls, or out-of-
        service orders, without notice or the opportunity for a 
        hearing, but only to the extent necessary to abate the imminent 
        hazard.
            ``(2) The Secretary's action under paragraph (1) of this 
        subsection shall be in a written order describing the 
        violation, condition or practice that is causing the imminent 
        hazard, and stating the restrictions, prohibitions, recalls, or 
        out-of-service orders issued or imposed. The order also shall 
        describe the standards and procedures for obtaining relief from 
        the emergency order.
            ``(3) After taking action under paragraph (1) of this 
        subsection, the Secretary shall provide an opportunity for 
        review of that action under section 554 of title 5, if a 
        petition for review is filed within 20 calendar days after 
        issuance of the order.
            ``(4) If a petition for review is filed and the review is 
        not completed by the end of the 30-day period beginning on the 
        date the petition was filed, the action will cease to be 
        effective at the end of that period unless the Secretary 
        determines in writing that the emergency situation still 
        exists.
            ``(5) For purposes of this subsection, ``out-of-service 
        order'' means a mandate that an aircraft, vessel, motor 
        vehicle, train, railcar, locomotive, other vehicle, transport 
        unit, transport vehicle, freight container, portable tank, or 
        other package not be moved until specified conditions have been 
        met.''
    (c) Security-Sensitive Information.--Section 5121 is revised by 
adding a new subsection (f) to read as follows:
    ``(f) Security-Sensitive Information.--
            ``(1) If the Secretary determines that particular 
        information may reveal a vulnerability of a hazardous material 
        to attack during transportation in commerce, or may facilitate 
        the diversion of hazardous material during transportation in 
        commerce for use in an attack on people or property, the 
        information may be disclosed only--
                    ``(A) to an owner, custodian, offeror or carrier of 
                the hazardous material;
                    ``(B) to an officer, employee or agent of a 
                Federal, State, or local government, including a 
                volunteer fire department, concerned with carrying out 
                transportation safety laws, protecting hazardous 
                material during the course of transportation in 
                commerce, protecting public safety, or national 
                security issues, or enforcing federal laws designed to 
                protect public health or the environment; or
                    ``(C) in an administrative or judicial proceeding 
                brought under this chapter, under other federal law 
                designed to protect public health or the environment, 
                or one that addresses terrorist actions or threats of 
                such actions.
            ``(2) The Secretary may make a determination under 
        subsection (1) of this section with respect to a category of 
        information by regulation.
            ``(3) A release of information pursuant to a determination 
        under subsection (1) of this section is not a release to the 
        public within the meaning of 5 U.S.C. 552.''.
    (d) Enhancements to Security Risk Assessment and Emergency 
Preparedness.--Section 5121 is amended by inserting the following after 
subsection (f):
    ``(g) Authority for Grants, Cooperative Agreements, and Other 
Transactions.--The Secretary may enter into grants, cooperative 
agreements, and other transactions with a person, agency or 
instrumentality of the United States, a unit of State or local 
government, an Indian tribe, a foreign government (in coordination with 
the Department of State), an educational institution, or other entity 
to expand the risk assessment and emergency response capability with 
respect to hazardous materials security issues and to carry out this 
chapter.''.
    (e) Cargo Inspection Program.--The Secretary of Transportation may 
randomly inspect cargo at U.S. Customs ports of entry in order to 
determine the extent to which undeclared hazardous material is being 
offered for transportation in commerce. Under this program, an officer 
or employee of the Secretary may open and inspect any cargo shipment at 
a U.S. Customs port of entry if that shipment has been randomly 
selected for inspection by a Department supervisor who is not on site. 
The Department of Transportation shall ensure that random inspections 
under this program are coordinated in advance with the Department of 
Homeland Security and provide for the effective handling and 
disposition of any violations found. The Secretary shall initiate such 
a program within one year after the date of enactment of this Act.''

SEC. 7304. ADMINISTRATIVE AUTHORITY FOR TRANSPORTATION SERVICE AND 
              INFRASTRUCTURE ASSURANCE RESEARCH.

    Section 112 of title 49, United States Code, is amended by adding 
the following new subsection to the end:
    ``(f) Administrative Authority.--
            ``(1) Grants, cooperative agreements, and other 
        transactions.--The Administrator may enter into grants, 
        cooperative agreements, and other transactions with Federal or 
        other public agencies (including State and local governments) 
        and private organizations and other persons to conduct research 
        into transportation service and infrastructure assurance and to 
        carry out research activities of the Administration.
            ``(2) Prohibition on certain disclosures.--If the 
        Administrator determines that particular information developed 
        in research sponsored by the Administration may reveal a 
        systemic vulnerability of transportation service or 
        infrastructure, the information may be disclosed only to a 
        person responsible for the security of the transportation 
        service or infrastructure or with protecting public safety or 
        to an officer, employee, or agent of a Federal, State or local 
        government unit whose need for the information in the 
        performance of duties is concurred in by the Administrator. A 
        release of information subject to a determination under this 
        section is not a release to the public within the meaning of 5 
        U.S.C. 552.''.

SEC. 7305. POSTAL SERVICE CIVIL PENALTY AUTHORITY.

    (a) Section 3001 of title 39, United States Code, is amended by 
adding a new subsection (o) as follows:
    ``(o)(1) Except as permitted by law and Postal Service regulation, 
hazardous material is nonmailable.
    ``(2) For purposes of this section, the term `hazardous material' 
means a substance or material the Secretary of Transportation 
designates under section 5103(a) of title 49.''.
    (b) Chapter 30 of title 39, United States Code, is amended by 
adding a new section 3018 at the end as follows:
``Sec. 3018. Hazardous material; civil penalty
    ``(a) Regulations.--The Postal Service shall prescribe regulations 
for the safe transportation of hazardous material in the mail.
    ``(b) Hazardous Material in the Mail.--No person may--
            ``(1) mail or cause to be mailed a hazardous material that 
        has been declared by statute or Postal Service regulation to be 
        nonmailable;
            ``(2) mail or cause to be mailed a hazardous material in 
        violation of any statute or Postal Service regulation 
        restricting the time, place, or manner in which a hazardous 
        material may be mailed; or
            ``(3) manufacture, distribute, or sell any container, 
        packaging kit, or similar device that--
                    ``(A) is represented, marked, certified, or sold by 
                such person for use in the mailing of a hazardous 
                material; and
                    ``(B) fails to conform with any statute or Postal 
                Service regulation setting forth standards for a 
                container, packaging kit, or similar device used for 
                the mailing of a hazardous material.
    ``(c) Civil Penalty.--
            ``(1) A person that knowingly violates this section or a 
        regulation issued under this section is liable to the Postal 
        Service for a civil penalty of at least $250 but not more than 
        $100,000 for each violation, and for any clean-up costs and 
        damages. A person acts knowingly when--
                    ``(A) the person has actual knowledge of the facts 
                giving rise to the violation; or
                    ``(B) a reasonable person acting in the 
                circumstances and exercising reasonable care would have 
                that knowledge.
            ``(2) Knowledge by the person of the existence of a 
        statutory provision, or a regulation or requirement prescribed 
        by the Postal Service is not an element of an offense under 
        this section.
            ``(3) A separate violation occurs for each day a hazardous 
        material, mailed or caused to be mailed in noncompliance with 
        this section or a regulation issued under this section, is in 
        the mail.
            ``(4) A separate violation occurs for each item containing 
        a hazardous material that is mailed or caused to be mailed in 
        noncompliance with this section or a regulation issued under 
        this section.
    ``(d) Hearing Requirement.--The Postal Service may find that a 
person has violated this section or a regulation issued under this 
section only after notice and an opportunity for a hearing. Under this 
section, the Postal Service shall impose a penalty and recover clean-up 
costs and damages by giving the person written notice of the amount of 
the penalty, clean-up costs, and damages.
    ``(e) Penalty Considerations.--In determining the amount of a civil 
penalty under this section, the Postal Service shall consider--
            ``(1) the nature, circumstances, extent, and gravity of the 
        violation;
            ``(2) with respect to the person who committed the 
        violation, the degree of culpability, any history of prior 
        violations, the ability to pay, and any effect on the ability 
        to continue in business;
            ``(3) the impact on postal operations; and
            ``(4) other matters that justice requires.
    ``(f) Civil Actions to Collect.--
            ``(1) In accordance with section 409(d) of this title, a 
        civil action may be commenced in an appropriate district court 
        of the United States to collect a civil penalty, clean-up 
        costs, or damages assessed under this section. In such action, 
        the validity, amount, and appropriateness of the civil penalty, 
        clean-up costs, or damages shall not be subject to review.
            ``(2) The Postal Service may compromise the amount of a 
        civil penalty, clean-up costs, or damages assessed under this 
        section before civil action is taken to collect the penalty, 
        costs, or damages.
    ``(g) Civil Judicial Penalties.--At the request of the Postal 
Service, the Attorney General may bring a civil action in an 
appropriate district court of the United States to enforce this chapter 
or a regulation prescribed or order issued under this chapter. The 
court may award appropriate relief, including a temporary or permanent 
injunction, punitive damages, and assessment of civil penalties 
considering the same penalty amounts and factors as prescribed for the 
Postal Service in an administrative case under this section.
    ``(h) Depositing Amounts Collected.--Amounts collected under this 
section shall be paid into the Postal Service Fund established by 
section 2003 of this title.''.
    (c) Conforming Amendment.--The chapter analysis for chapter 30 of 
title 39, United States Code, is amended by adding the following:

``3018. Hazardous material; civil penalty.''.

SEC. 7306. REGISTRATION.

    (a) In General.--Section 5108 of title 49, United States Code, is 
amended--
            (1) by striking ``class A or B explosive'' in subsection 
        (a)(1)(B) and inserting ``Division 1.1, 1.2, or 1.3 explosive 
        material''; and
            (2) by revising subsection (a)(2)(B) to read as follows:
                    ``(B) a person manufacturing, designing, 
                inspecting, testing, reconditioning, marking, or 
                repairing a packaging or packaging component 
                represented as qualified for use in transporting a 
                hazardous material in commerce.''.
    (b) Clarification of Title 18 Exemption.--Section 845(a)(1) of 
title 18, United States Code, is amended to read as follows:
            ``(1) aspects of the transportation of explosive materials 
        via railroad, water, highway, or air that pertain to safety, 
        including security, and are regulated by the Department of 
        Transportation or the Department of Homeland Security;''.

SEC. 7307. SHIPPING PAPER RETENTION.

    Section 5110 of title 49, United States Code, is amended--
            (1) in subsection (a), by striking ``under subsection (b) 
        of this section'' and inserting ``by regulation'';
            (2) by striking subsection (b) and redesignating 
        subsections (c)-(e) as subsections (b)-(d); and
            (3) by revising the first sentence in subsection (d), as 
        redesignated, to read as follows: ``The person that provided 
        the shipping paper and the carrier required to keep it under 
        this section shall retain the paper, or an electronic image of 
        it, for a period of 3 years after the shipping paper was 
        provided to the carrier, to be accessible through their 
        respective principal places of business.''.

SEC. 7308. PLANNING AND TRAINING GRANTS.

    (a) Section 5116 of title 49, United States Code, is amended--
            (1) in the second sentence of subsection (e), by striking 
        ``of the State or tribe under subsections (a)(2)(A) and 
        (b)(2)(A)'' and inserting ``received by the State or tribe 
        under subsections (a)(1) and (b)(1)'';
            (2) revising subsection (f) to read as follows:
    ``(f) Monitoring and Technical Assistance.--The Secretary of 
Transportation shall monitor public-sector emergency response planning 
and training for an accident or incident involving hazardous material. 
Considering the results of the monitoring, the Secretary shall provide 
technical assistance to a State, political subdivision of a State, or 
Indian tribe for carrying out emergency response training and planning 
for an accident or incident involving hazardous material and shall 
coordinate the assistance using the existing coordinating mechanisms of 
the National Response Team and, for radioactive material, the Federal 
Radiological Preparedness Coordinating Committee.'';
            (3) in subsection (g), by striking ``Government grant'' and 
        inserting ``Federal financial assistance'';
            (4) by revising subsection (i) to read as follows:
    ``(i) Emergency Preparedness Fund.--The Secretary of the Treasury 
shall establish an Emergency Preparedness Fund account in the Treasury 
into which the Secretary of the Treasury shall deposit amounts the 
Secretary of Transportation transfers to the Secretary of the Treasury 
under section 5108(g)(2)(C) of this title. Without further 
appropriation, amounts in the account are available--
            ``(1) to make grants under this section;
            ``(2) to monitor and provide technical assistance under 
        subsection (f) of this section;
            ``(3) to publish and distribute the Emergency Response 
        Guidebook;
            ``(4) to pay administrative costs of carrying out this 
        section and sections 5108(g)(2) and 5115 of this title, except 
        that not more than 10 percent of the amounts made available 
        from the account in a fiscal year to carry out these sections 
        may be used to pay those costs.''; and
            ``(5) by striking subsection (k).''.
    (b) Chapter 51 is amended by--
            (1) revising the section heading for section 5116 to read 
        ``Planning and training grants; emergency preparedness fund''; 
        and
            (2) striking the item for section 5116 in the analysis of 
        the chapter and inserting ``5116. Planning and training grants; 
        emergency preparedness fund.''.

SEC. 7309. ENFORCEMENT.

    Section 5122 of title 49, United States Code, is amended--
            (1) in subsection (a), by revising the last sentence to 
        read as follows: ``The court may award appropriate relief, 
        including a temporary or permanent injunction, punitive 
        damages, and assessment of civil penalties considering the same 
        penalty amounts and factors as prescribed for the Secretary in 
        an administrative case under section 5123 of this chapter.''; 
        and
            (2) in subparagraph (b)(1)(B), by striking ``or ameliorate 
        the'' and inserting ``or mitigate the''.

SEC. 7310. PENALTIES.

    (a) Section 5123 of title 49, United States Code, is amended--
            (1) by revising subsection (a) to read as follows:
    ``(a) Penalty.--
            ``(1) A person that knowingly violates this chapter, or a 
        regulation, order, special permit, or approval issued under 
        this chapter, is liable to the United States Government for a 
        civil penalty of at least $250 but not more than $100,000 for 
        each violation.
            ``(2) Knowledge by the person of the existence of a 
        statutory provision, or a regulation or requirement prescribed 
        by the Secretary is not an element of an offense under this 
        section.
            ``(3) A separate violation occurs for each day the 
        violation, committed by a person that transports or causes to 
        be transported hazardous material, continues''; and
            (2) by redesignating subsections (b)-(g) as subsections 
        (c)-(h) and inserting a new subsection (b) to read as follows:
    ``(b) Knowing Violations.--In this section, a person acts knowingly 
when--
            ``(1) the person has actual knowledge of the facts giving 
        rise to the violation; or-
            ``(2) a reasonable person acting in the circumstances and 
        exercising reasonable care would have that knowledge.'';
            (3) in subsection (c), as redesignated, by striking the 
        first sentence and inserting the following: ``The Secretary of 
        Transportation may find that a person has violated this 
        chapter, or a regulation, order, special permit or approval 
        issued under this chapter, only after notice and an opportunity 
        for a hearing.'';
            (4) by revising subsection (e), as redesignated, to read as 
        follows:
    ``(e) Civil Actions To Collect.--The Attorney General may bring a 
civil action in an appropriate district court of the United States to 
collect a civil penalty under this section and any accrued interest on 
that penalty calculated in the manner described under section 2705 of 
title 33. In such action, the validity, amount, and appropriateness of 
the civil penalty shall not be subject to review.''.
    (b) Section 5124 is revised to read as follows:
``Sec. 5124. Criminal penalty
    ``(a) General.--A person knowingly violating section 5104(b) of 
this title or willfully or recklessly violating this chapter or a 
regulation, order, special permit, or approval issued under this 
chapter, shall be fined under title 18, imprisoned for not more than 5 
years, or both.
    ``(b) Aggravated Violations.--A person knowingly violating section 
5104(b) of this chapter, or willfully or recklessly violating this 
chapter or a regulation, order, special permit, or approval issued 
under this chapter, and thereby causing the release of a hazardous 
material, shall be fined under title 18, imprisoned for not more than 
20 years, or both.
    ``(c) Knowing Violations.--In this section, a person acts knowingly 
when--
            ``(1) the person has actual knowledge of the facts giving 
        rise to the violation; or
            ``(2) a reasonable person acting in the circumstances and 
        exercising reasonable care would have that knowledge.
    ``(d) Willful Violations.--In this section, a person acts willfully 
when--
            ``(1) the person has knowledge of the facts giving rise to 
        the violation; and
            ``(2) the person has knowledge that the conduct was 
        unlawful.
    ``(e) Reckless Violations.--In this section, a person acts 
recklessly when the person displays a deliberate indifference or 
conscious disregard for the consequences of that person's conduct.
    ``(f) Knowledge of Requirements.--Knowledge by a person of the 
existence of a statutory provision, or a regulation or requirement 
prescribed by the Secretary, is not an element of an offense under this 
section.
    ``(g) Separate Violations.--A separate violation occurs for each 
day the violation, committed by a person who transports hazardous 
material or who causes hazardous material to be transported, 
continues.''.
    (c) Section 46312 is amended--
            (1) in subparagraph (a), by striking ``under this part'' 
        and inserting ``under this part or under chapter 51 of this 
        title''; and
            (2) in subparagraph (b), by striking ``by the Secretary'' 
        and inserting ``by the Secretary under this part or under 
        chapter 51 of this title''.
    (d) Section 3663, title 18 United States Code, is amended in 
subparagraph (a)(1)(A) by striking ``or section 46312, 46502, or 46504 
of title 49'' and inserting ``or section 5124, 46312, 46502, or 46504 
of title 49.''.

SEC. 7311 EMERGENCY WAIVER OF PREEMPTION.

    ``Section 5125 of title 49, United States Code, is amended by 
adding new subsections (h), (i), and (j) to read as follows:
    ``(h) Emergency Waiver of Preemption.--
            ``(1) The Secretary, upon a finding of good cause, may 
        waive preemption on an expedited basis without notice and 
        public procedure. Good cause exists when there is a possible 
        threat that hazardous material being transported in commerce 
        may be used in an attack on people or property, and notice and 
        public procedure are impracticable or contrary to the public 
        interest.
            ``(2) An emergency waiver of preemption shall remain in 
        effect for no more than 6 months unless, prior to its 
        expiration, the Secretary determines that a possible threat 
        that hazardous material being transported in commerce may be 
        used in an attack on people or property continues to exist.
            ``(3) An action of the Secretary under paragraphs (1) and 
        (2) of this subsection shall be in writing and shall describe 
        the standards and procedures for seeking reconsideration of the 
        Secretary's action.
            ``(4) After taking action under paragraphs (1) or (2) of 
        this subsection, the Secretary shall provide an opportunity for 
        review of that action if a petition for reconsideration is 
        filed within 20 calendar days after the Secretary issues or 
        extends an emergency waiver.
            ``(5) If a petition for reconsideration is filed and the 
        review is not completed by the end of the 30-day period 
        beginning on the date the petition was filed, the emergency 
        waiver will cease to be effective at the end of that period 
        unless the Secretary determines, in writing, that a possible 
        threat that hazardous material being transported in commerce 
        may be used in an attack on people or property continues to 
        exist.
    ``(i) Independent Application of Each Standard.--Each preemption 
standard in subsections (b), (c)(1), (d), and (e) of this section and 
in section 5119(b) of this chapter is independent in its application to 
a requirement of any State, political subdivision of a State, or Indian 
tribe.
    ``(j) Nonfederal Enforcement Standards.--This section does not 
apply to procedure, penalty, or required mental state or other standard 
used by a State, political subdivision of a State, or Indian tribe to 
enforce a requirement applicable to transportation of a hazardous 
material.''.

SEC. 7312. JUDICIAL REVIEW.

    Chapter 51 of title 49, United States Code, is amended by 
redesignating section 5127 as section 5128, and by inserting after 
section 5126 the following new section:
``Sec. 5127. Judicial review
    ``(a) Filing and Venue.--Except as provided in section 20114(c) of 
this title, a person suffering legal wrong or adversely affected or 
aggrieved by a final action of the Secretary of Transportation under 
this chapter may petition for review of the final action in the United 
States Court of Appeals for the District of Columbia or in the court of 
appeals for the United States for the circuit in which the person 
resides or has its principal place of business. The petition must be 
filed not more than 60 days after the Secretary's action becomes final.
    ``(b) Judicial Procedures.--When a petition is filed under 
subsection (a) of this section, the clerk of the court immediately 
shall send a copy of the petition to the Secretary. The Secretary shall 
file with the court a record of any proceeding in which the final 
action was issued, as provided in section 2112 of title 28.
    ``(c) Authority of Court.--The court has exclusive jurisdiction, as 
provided in the Administrative Procedure Act, 5 U.S.C. 551 et seq., to 
affirm or set aside any part of the Secretary's final action and may 
order the Secretary to conduct further proceedings. Findings of fact by 
the Secretary, if supported by substantial evidence, are conclusive.
    ``(d) Requirement for Prior Objection.--In reviewing a final action 
under this section, the court may consider an objection to a final 
action of the Secretary only if the objection was made in the course of 
a proceeding or review conducted by the Secretary or if there was a 
reasonable ground for not making the objection in the proceeding.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 51 is 
amended by striking the item related to section 5127 and inserting the 
following:

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

                Subtitle D--Sanitary Food Transportation

SEC. 7401. SHORT TITLE.

    This Subtitle may be cited as the ``Sanitary Food Transportation 
Act of 2003''.

SEC. 7402. RESPONSIBILITIES OF THE SECRETARY OF HEALTH AND HUMAN 
              SERVICES.

    (a) Unsanitary Transport Deemed Adulteration.--Section 402 of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342) is amended by 
adding at the end the following new subsection:
    ``(i) If it is transported under conditions that are not in 
compliance with the sanitary transportation practices prescribed by the 
Secretary under section 416.''.
    (b) Sanitary Transportation Requirements.--Chapter IV of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 341 et seq.) is amended 
by adding at the end the following new section:
``Sec. 416. Sanitary transportation of food
    ``(a) Sanitary Transportation Practices.--The Secretary shall 
establish by regulation sanitary transportation practices which 
shippers, carriers, receivers, and other persons engaged in the 
transportation of food shall be required to follow to ensure that the 
food is not transported under conditions that may render it 
adulterated, including such practices as the Secretary may find 
appropriate relating to--
            ``(1) sanitation;
            ``(2) packaging, isolation, and other protective measures;
            ``(3) limitations on the use of vehicles;
            ``(4) information to be disclosed--
                    ``(A) to a carrier by a person arranging for the 
                transport of food, and
                    ``(B) to a manufacturer or other persons arranging 
                for the transport of food by a carrier or other person 
                furnishing a tank or bulk vehicle for the transport of 
                food; and
            ``(5) recordkeeping.
    ``(b) List of Unacceptable Nonfood Products.--The Secretary, by 
publication in the Federal Register, may establish and periodically 
amend--
            ``(1) a list of nonfood products that the Secretary 
        determines may, if shipped in a tank or bulk vehicle, render 
        adulterated food transported subsequently in such vehicle; and
            ``(2) a list of nonfood products that the Secretary 
        determines may, if shipped in a motor or rail vehicle (other 
        than a tank or bulk vehicle), render adulterated food 
        transported simultaneously or subsequently in such vehicle.
    ``(c) Waiver Authority.--
            ``(1) In general.--The Secretary may waive all or part of 
        this section, or any requirement under this section, with 
        respect to any class of persons, of vehicles, of food, or of 
        nonfood products, if the Secretary determines that such 
        waiver--
                    ``(A) will not result in the transportation of food 
                under conditions that would be unsafe for human or 
                animal health; and
                    ``(B) will not be contrary to the public interest 
                or this Act.
            ``(2) Publication.--The Secretary shall publish in the 
        Federal Register any waiver and the reasons for the waiver.
    ``(d) Preemption.--
            ``(1) In general.--No State or political subdivision of a 
        State may directly or indirectly establish or continue in 
        effect, as to any food in interstate commerce, any authority or 
        requirement concerning that transportation of food that is not 
        identical to the requirement of this section.
            ``(2) Effective Date.--The provisions of this subsection 
        apply only with respect to transportation occurring on or after 
        the effective date of regulations prescribed under subsection 
        (a).
    ``(e) Assistance of Other Agencies.--The Secretary of 
Transportation, the Secretary of Agriculture, the Administrator of 
the Environmental Protection Agency, and the heads of other Federal 
agencies, as appropriate, shall provide assistance upon request, to the 
extent resources are available, to the Secretary of Health and Human 
Services for the purposes of carrying out this section.
    ``(f) Definitions.--For purposes of the section:
            ``(1) The term `transportation' means any movement of 
        property in commerce by motor vehicle or rail vehicle.
            ``(2) The term `tank or bulk vehicle' includes any vehicle 
        in which food is shipped in bulk and in which the food comes 
        directly into contact with the vehicle, including tank trucks, 
        hopper trucks, rail tank cars, hopper cars, cargo tanks, 
        portable tanks, freight containers, or hopper bins.''.
    (c) Inspection of Transportation Records.--
            (1) Requirement.--Chapter VII of the Federal Food, Drug, 
        and Cosmetic Act (21 U.S.C. 371 et seq.) is amended by 
        inserting after section 703 the following new section:
``Sec. 703A. Food transportation records
    ``Shippers, carriers by motor vehicle or rail vehicle, and other 
persons subject to section 416 shall, upon request of an officer or 
employee duly designated by the Secretary, permit such officer or 
employee, at reasonable times, to have access to and to copy all 
records that the Secretary requires them to make or retain under 
section 416(a)(5) of this Act.''.
            (2) Conforming amendment.--Section 703 of the Act (21 
        U.S.C. 373) is amended by striking ``in the usual course of 
        business as carriers.'' and inserting ``in the usual course of 
        business as carriers, unless otherwise explicitly provided.''.
    (d) Prohibited Acts.--
            (1) Records inspection.--Section 301(c) of the Federal 
        Food, Drug, and Cosmetic Act (21 U.S.C. 331(e)) is amended--
                    (A) by striking ``or 703'' and inserting ``, 703, 
                or 703A''; and
                    (B) by inserting ``416,'' before ``504''.
            (2) Unsafe food transportation.--Section 301 of the Act (21 
        U.S.C. 331) is further amended by adding at the end the 
        following new subsection:
    ``(gg) The failure, by a shipper, carrier, receiver, or any other 
person engaged in the transportation of food, to comply with the 
sanitary transportation practices prescribed by the Secretary under 
section 416.''.

SEC. 7403. DEPARTMENT OF TRANSPORTATION REQUIREMENTS.

    Chapter 57 of title 49, relating to sanitary food transportation is 
revised to read as follows:

               ``CHAPTER 57--SANITARY FOOD TRANSPORTATION

``Sec.
``5701. Food transportation safety inspections.
``Sec. 5701. Food transportation safety inspections
    ``(a) Inspection Procedures.--
            ``(1) The Secretary of Transportation, in consultation with 
        the Secretaries of Health and Human Services and Agriculture, 
        shall establish procedures to be used in performing 
        transportation safety inspections for the purpose of 
        identifying suspected incidents of contamination or 
        adulteration of food that may violate regulations issued under 
        section 416 of title 21, United States Code, and of meat and 
        poultry products subject to detention under section 402 of the 
        Federal Meat Inspection Act (21 U.S.C. 672) and section 19 of 
        the Poultry Products Inspection Act (21 U.S.C. 467a), and shall 
        train personnel of the Department of Transportation in the 
        appropriate use of such procedures.
            ``(2) The procedures established under paragraph (1) of 
        this subsection shall apply, at a minimum, to the Department of 
        Transportation personnel who perform commercial motor vehicle 
        and railroad safety inspections.
    ``(b) Notification of Secretaries of Health and Human Services and 
Agriculture.--The Secretary of Transportation shall promptly notify the 
Secretary of Health and Human Services or the Secretary of Agriculture, 
as applicable, of any instances of potential food contamination or 
adulteration of a food identified during transportation safety 
inspections.
    ``(c) Use of State Employees.--The means by which the Secretary of 
Transportation carries out subsection (b) of this section may include 
inspections conducted by State employees using funds authorized to be 
appropriated under sections 31102 through 31104 of this title.''.

SEC. 7404. EFFECTIVE DATE OF THE SUBTITLE.

    Unless otherwise specified, the provisions of this title are 
effective October 1, 2003.

              Subtitle E--Sport Fishing and Boating Safety

SEC. 7501. SPORT FISH RESTORATION ACCOUNT AMENDMENTS.

    (a) In General.--Section 4 of the Act entitled ``An Act to provide 
that the United States shall aid the States in fish restoration and 
management projects, and for other purposes'' (August 9, 1950)(16 
U.S.C. 777c) is amended--
            (1) in subsection (b),
                    (A) by striking ``2003'' each place it appears and 
                inserting ``2009''; and
                    (B) by striking ``Secretary of Transportation'' 
                each place it appears and inserting ``Secretary of 
                Homeland Security''; and
            (2) in subsection (c)(5), by striking ``fiscal year 2003'' 
        and inserting ``fiscal years 2003 through 2009''.
    (b) Clean Marina Initiatives.--To further enhance the natural 
environment, Federal agencies administering programs funded under the 
Aquatic Resources Trust Fund should promote, to the extent practicable, 
``Clean Marina Initiatives'' in each of the following programs:
            (1) Clean Vessel Act ``Pumpout'' Program.
            (2) Boating Infrastructure Grant Program.
            (3) National Outreach and Communications Program.
            (4) Recreational Boating Access Facilities.

TITLE VIII--TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET 
                                OFFSETS

SEC. 8101. DISCRETIONARY SPENDING CATEGORIES.

    (a) Definition of Highway Category and Mass Transit Category.--
            (1) Section 250(c)(4)(B) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 is amended by--
                    (A) striking ``Transportation Equity Act for the 
                21st Century'' and inserting ``Safe, Accountable, 
                Flexible, and Efficient Transportation Equity Act of 
                2003''; and
                    (B) adding after item (iv) the following new 
                clauses:
                            ``(v) 69-8158-0-7-401 (Motor Carrier Safety 
                        Grants).
                            ``(vi) 69-8159-0-7-401 (Motor Carrier 
                        Safety Operations and Programs).''.
            (2) Section 250(c)(4)(C) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 is amended to read as 
        follows:
                    ``(C) The term `mass transit category' refers to 
                the following budget accounts or portions thereof that 
                are subject to the obligation limitations on contract 
                authority provided in the Safe, Accountable, Flexible, 
                and Efficient Transportation Equity Act of 2003 or for 
                which appropriations are provided pursuant to 
                authorizations contained in that Act:
                            ``(i) 69-1120-0-1-401 (Administrative 
                        Expenses).
                            ``(ii) 69-1134-0-1-401 (Capital Investment 
                        Grants).
                            ``(iii) 69-8191-0-7-401 (Discretionary 
                        Grants).
                            ``(iv) 69-1129-0-1-401 (Formula Grants).
                            ``(v) 69-8303-0-7-401 (Formula Grants and 
                        Research).
                            ``(vi) 69-1127-0-1-401 (Interstate Transfer 
                        Grants--Transit).
                            ``(vii) 69-1125-0-1-401 (Job Access and 
                        Reverse Commute).
                            ``(viii) 69-1122-0-1-401 (Miscellaneous 
                        Expired Accounts).
                            ``(ix) 69-1139-0-1-401 (Major Capital 
                        Investment Grants).
                            ``(x) 69-1121-0-1-401 (Research, Training 
                        and Human Resources).
                            ``(xi) 69-8350-0-7-401 (Trust Fund Share of 
                        Expenses).
                            ``(xii) 69-1137-0-1-401 (Transit Planning 
                        and Research).
                            ``(xiii) 69-1136-0-1-401 (University 
                        Transportation Research).
                            ``(xiv) 69-1128-0-1-401 (Washington 
                        Metropolitan Area Transit Authority).''.
    (b) Continuation of Separate Categories.--Section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new paragraphs:
            ``(8) with respect to fiscal year 2004--
                    ``(A) for the highway category: $29,990,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $6,909,000,000 
                in outlays.
            ``(9) with respect to fiscal year 2005--
                    ``(A) for the highway category: $30,589,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $6,462,000,000 
                in outlays.
            ``(10) with respect to fiscal year 2006--
                    ``(A) for the highway category: $31,249,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $6,070,000,000 
                in outlays.
             ``(11) with respect to fiscal year 2007--
                    ``(A) for the highway category: $32,402,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $5,843,000,000 
                in outlays.
             ``(12) with respect to fiscal year 2008--
                    ``(A) for the highway category: $33,358,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $6,374,000,000 
                in outlays.
            ``(13) with respect to fiscal year 2009--
                    ``(A) for the highway category: $34,109,000,000 in 
                outlays; and
                    ``(B) for the mass transit category: $6,470,000,000 
                in outlays.''.
    (c) Highway Funding Revenue Alignment.--Section 251(b)(1)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
901(b)(1)(B)) is amended--
            (1) in clause (i),
                    (A) by inserting ``for fiscal year 2006, 2007, 
                2008, or 2009'' after ``submits the budget'';
                    (B) by inserting ``the obligation limitation and 
                outlay limit for'' after ``adjustments to'';
                    (C) by striking ``provided in clause (ii)(I)(cc).'' 
                and substituting ``follows:''; and
                    (D) by inserting the following at the end:
                                    ``(I) OMB shall calculate the 
                                change in the obligation limitation for 
                                the highway category for the budget 
                                year by taking the actual level of 
                                highway receipts for the year before 
                                the current year and subtracting the 
                                sum of the estimated level of highway 
                                receipts in clause (iii) plus any 
                                amount previously calculated under 
                                clause (ii) for that year.
                                    ``(II) OMB shall take the amount 
                                calculated under subclause (I) and add 
                                that amount to the obligation 
                                limitation set forth in section 8102(a) 
                                of the Safe, Accountable, Flexible, and 
                                Efficient Transportation Equity Act of 
                                2003 for the highway category for the 
                                budget year, and calculate the outlay 
                                change resulting from that change in 
                                obligations relative to that amount for 
                                the budget year and each outyear using 
                                current estimates. After making the 
                                calculation under the preceding 
                                sentence, OMB shall adjust the 
                                obligation limitation set forth in that 
                                section for the budget year by adding 
                                the amount calculated under subclause 
                                (I).'';
            (2) by striking clause (ii) and substituting the following:
                            ``(ii) When the President submits the 
                        supplementary budget estimates for fiscal year 
                        2006, 2007, 2008, or 2009, under section 1106 
                        of title 31, United States Code, OMB's Mid-
                        Session Review shall include adjustments to the 
                        obligation limitation and outlay limit for the 
                        highway category for the budget year and each 
                        outyear as follows:
                                    ``(I) OMB shall take the current 
                                estimate of highway receipts for the 
                                current year and subtract the estimated 
                                level of highway receipts in clause 
                                (iii) for that year.
                                    ``(II) OMB shall take the amount 
                                calculated under subclause (I) and add 
                                that amount to the amount of 
                                obligations set forth in section 8102 
                                of the Safe, Accountable, Flexible, and 
                                Efficient Transportation Equity Act of 
                                2003 for the highway category for the 
                                budget year, and calculate the outlay 
                                change resulting from that change in 
                                obligations relative to that amount for 
                                the budget year and each outyear using 
                                current estimates. After making the 
                                calculation under the preceding 
                                sentence, OMB shall adjust the amount 
                                of obligations set forth in that 
                                section for the budget year by adding 
                                the amount calculated under subclause 
                                (I).''; and
            (3) by inserting the following at the end:
                            ``(iii) The estimated level of highway 
                        receipts for the purposes of this subparagraph 
                        are--
                                    ``(I) for fiscal year 2004, 
                                $30,119,000,000;
                                    ``(II) for fiscal year 2005, 
                                $31,109,000,000;
                                    ``(III) for fiscal year 2006, 
                                $32,191,000,000;
                                    ``(IV) for fiscal year 2007, 
                                $33,146,000,000;
                                    ``(V) for fiscal year 2008, 
                                $34,018,000,000; and
                                    ``(VI) for fiscal year 2009, 
                                $34,844,000,000.
                            ``(iv) In this subparagraph, the term 
                        ``highway receipts'' means the governmental 
                        receipts credited to the highway account of the 
                        Highway Trust Fund.''.
    (d) Transit Funding Revenue Alignment.--Section 251(b)(1)(C) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
901(b)(1)(C)) is amended to read as follows:
                    ``(C) Adjustment to align mass transit spending 
                with revenues.--
                            ``(i) When the President submits the budget 
                        for fiscal year 2006, 2007, 2008, or 2009, 
                        under section 1105 of title 31, United States 
                        Code, OMB shall calculate and the budget shall 
                        include adjustments to the obligation 
                        limitation and outlay limit for the mass 
                        transit category for the budget year and each 
                        outyear as follows:
                                    ``(I) OMB shall calculate the 
                                change in the obligation limitation for 
                                the mass transit category for the 
                                budget year by taking the actual level 
                                of mass transit receipts for the year 
                                before the current year and subtract 
                                the sum of the estimated level of mass 
                                transit receipts in clause (iii) plus 
                                any amount previously calculated under 
                                clause (ii) for that year.
                                    ``(II) OMB shall take the amount 
                                calculated under subclause (I) and add 
                                that amount to the amount of obligation 
                                limitation set forth in section 8102 of 
                                the Safe, Accountable, Flexible, and 
                                Efficient Transportation Equity Act of 
                                2003 for the mass transit category for 
                                the budget year, and calculate the 
                                outlay change resulting from that 
                                change in obligations relative to that 
                                amount for the budget year and each 
                                outyear using current estimates. After 
                                making the calculation under the 
                                preceding sentence, OMB shall adjust 
                                the obligation limitation set forth in 
                                that section for the budget year by 
                                adding the amount calculated under 
                                subclause (I).
                            ``(ii) When the President submits the 
                        supplementary budget estimates for fiscal year 
                        2006, 2007, 2008, or 2009, under section 1106 
                        of title 31, United States Code, OMB's Mid-
                        Session Review shall include adjustments to the 
                        obligation limitation and outlay limit for the 
                        mass transit category for the budget year and 
                        each outyear as follows:
                                    ``(I) OMB shall take the current 
                                estimate of mass transit receipts for 
                                the current year and subtract the 
                                estimated level of mass transit 
                                receipts in clause (iii) for that year.
                                    ``(II) OMB shall take the amount 
                                calculated under subclause (I) and add 
                                that amount to the obligation 
                                limitation set forth in section 8102 of 
                                the Safe, Accountable, Flexible, and 
                                Efficient Transportation Equity Act of 
                                2003 for the mass transit category for 
                                the budget year, and calculate the 
                                outlay change resulting from that 
                                change in obligations relative to that 
                                amount for the budget year and each 
                                outyear using current estimates. After 
                                making the calculation under the 
                                preceding sentence, OMB shall adjust 
                                the obligation limitation set forth in 
                                that section for the budget year by 
                                adding the amount calculated under 
                                subclause (I).
                            ``(iii) The estimated level of mass transit 
                        receipts for the purposes of this subparagraph 
                        are--
                                    ``(I) for fiscal year 2004, 
                                $4,793,000,000;
                                    ``(II) for fiscal year 2005, 
                                $4,926,000,000;
                                    ``(III) for fiscal year 2006, 
                                $5,050,000,000;
                                    ``(IV) for fiscal year 2007, 
                                $5,164,000,000;
                                    ``(V) for fiscal year 2008, 
                                $5,270,000,000; and
                                    ``(VI) for fiscal year 2009, 
                                $5,377,000,000.
                            ``(iv) In this subparagraph, the term 
                        ``mass transit receipts'' means the 
                        governmental receipts credited to the Mass 
                        Transit Account of the Highway Trust Fund.''.
    (e) Additional Adjustments.--Section 251(b)(1) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(1)) 
is further amended--
            (1) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively;
            (2) in subparagraph (E)(i) as redesignated--
                    (A) by striking ``1999'' and substituting ``2005;
                    (B) by striking ``2000'' and substituting ``2006'';
                    (C) by striking ``2003'' and substituting ``2009; 
                and
                    (D) by striking ``section 8103 of the 
                Transportation Equity Act for the 21st Century'' and 
                substituting ``section 8102 of the Safe, Accountable, 
                Flexible, and Efficient Transportation Equity Act of 
                2003'';
            (3) in subparagraph (E)(ii) as redesignated--
                    (A) by striking ``2000, 2001, 2002, or 2003'' and 
                substituting ``2006, 2007, 2008, and 2009; and
                    (B) by striking ``by subparagraphs (B) and (C)'' 
                and substituting ``made by subparagraphs (B), (C), and 
                (D)'';
            (4) in subparagraph (F) as redesignated, by striking ``(B) 
        and (C)'' and substituting ``(B), (C), and (D)''; and
            (5) by inserting the following after subparagraph (C):
                    ``(D) In addition to the adjustments required by 
                subparagraphs (B) and (C), when the President submits 
                the budget for fiscal year 2006, 2007, 2008, or 2009, 
                under section 1105 of title 31, United States Code, OMB 
                shall calculate and the budget shall include for the 
                budget year and each outyear an adjustment to the 
                limits on outlays for the highway category and the mass 
                transit category equal to--
                            ``(i) the outlays for the applicable 
                        category calculated assuming obligation levels 
                        consistent with the estimates prepared pursuant 
                        to subparagraph (E), as adjusted, using current 
                        technical assumptions; minus
                            ``(ii) the outlays for the applicable 
                        category set forth in the subparagraph (E) 
                        estimates, as adjusted.''.
    (f) Enforcement of Guarantee.--Rule XXI of the Rules of the House 
of Representatives is amended by striking ``section 8103 of the 
Transportation Equity Act for the 21st Century'' in clause 3 and 
substituting ``section 8102 of the Safe, Accountable, Flexible, and 
Efficient Transportation Equity Act of 2003''.

SEC. 8102. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--For the purposes of section 251(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, the level of 
obligation limitations for the highway category is--
            (1) for fiscal year 2004, $30,280,000,000;
            (2) for fiscal year 2005, $31,270,000,000;
            (3) for fiscal year 2006, $32,352,000,000;
            (4) for fiscal year 2007, $33,307,000,000;
            (5) for fiscal year 2008, $34,179,000,000; and
            (6) for fiscal year 2009, $35,005,000,000.
    (b) Mass Transit Category.--
            (1) For the purposes of section 251(b) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985, the level of 
        obligation limitations for the mass transit category is--
                    (A) for fiscal year 2004, $5,936,000,000;
                    (B) for fiscal year 2005, $6,054,720,000;
                    (C) for fiscal year 2006, $6,180,659,000;
                    (D) for fiscal year 2007, $6,319,723,000;
                    (E) for fiscal year 2008, $6,475,820,000; and
                    (F) for fiscal year 2009, $6,633,183,000.
            (2) For purposes of this subsection, the term ``obligation 
        limitations'' means the sum of budget authority and obligation 
        limitations.

SEC. 8103. EFFECTIVENESS OF TITLE.

    This title, and the amendments made by this title, become effective 
on the day that section 251 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 comes into effect after the enactment of 
this Act.

         TITLE IX--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986

SEC. 9001. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This title may be cited as the ''Surface 
Transportation Revenue Act of 2004''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 9002. EXTENSION OF HIGHWAY-RELATED TAXES AND TRUSTFUND.

    (a) Extension of Taxes.--
            (1) In general.--The following provisions are each amended 
        by striking ``2005'' each place it appears and inserting 
        ``2011'':
                    (A) Section 4041(a)(1)(C)(iii)(I) (relating to rate 
                of tax on certain buses).
                    (B) Section 4041(a)(2)(B) (relating to rate of tax 
                on special motor fuels).
                    (C) Section 4041(m)(1)(A) (relating to certain 
                alcohol fuels).
                    (D) Section 4051(c) (relating to termination of tax 
                on heavy trucks and trailers).
                    (E) Section 4071(d) (relating to termination of tax 
                on tires).
                    (F) Section 4081(d)(1) (relating to termination of 
                tax on gasoline, diesel fuel, and kerosene).
                    (G) Section 4481(e) (relating to period tax in 
                effect).
                    (H) Section 4482(c)(4) (relating to taxable 
                period).
                    (I) Section 4482(d) (relating to special rule for 
                taxable period in which termination date occurs).
            (2) Floor stocks refunds.--Section 6412(a)(1) (relating to 
        floor stocks refunds) is amended--
                    (A) by striking ``2005'' each place it appears and 
                inserting ``2011'', and
                    (B) by striking ``2006'' each place it appears and 
                inserting ``2012''.
    (b) Extension of Certain Exemptions.--The following provisions are 
each amended by striking ``2005'' and inserting ``2011'':
            (1) Section 4221(a) (relating to certain tax-free sales).
            (2) Section 4483(g) (relating to termination of exemptions 
        for highway use tax).
    (c) Extension of Deposits Into, and Certain Transfers From, Trust 
Fund.--Subsections (b), (c)(2), and (c)(3) of section 9503 (relating to 
the Highway Trust Fund) are amended--
            (1) by striking ``2005'' each place it appears and 
        inserting ``2011'', and
            (2) by striking ``2006'' each place it appears and 
        inserting ``2012''.
    (d) Extension and Expansion of Expenditures From Trust Fund.--
            (1) Highway account.--Section 9503 is amended by striking 
        subsection (c)(1) and inserting the following:
            ``(1) Federal-aid highway and safety programs.--Except as 
        provided in subsection (e), amounts in the Highway Trust Fund 
        shall be available, as provided by appropriation Acts, for 
        making expenditures authorized by law to be paid out of the 
        Highway Trust Fund before October 1, 2011, to meet those 
        obligations of the United States heretofore or hereafter 
        incurred under the following Acts, as in effect on the date of 
        enactment of the last Act listed:
                    ``(A) The Highway Revenue Act of 1956.
                    ``(B) The Surface Transportation Assistance Act of 
                1982.
                    ``(C) The Surface Transportation and Uniform 
                Relocation Assistance Act of 1987.
                    ``(D) The Intermodal Surface Transportation 
                Efficiency Act of 1991.
                    ``(E) The Transportation Equity Act for the 21st 
                Century.
                    ``(F) The Motor Carrier Safety Improvement Act of 
                1999.
                    ``(G) The Safe, Accountable, Flexible, and 
                Efficient Transportation Equity Act of 2003.''.
            (2) Mass transit account.--Section 9503(e)(3) is amended to 
        read as follows:
            ``(3) Expenditures from account.--Amounts in the Mass 
        Transit Account shall be available, as provided by 
        appropriation Acts, for making capital or capital-related 
        expenditures before October 1, 2011 (including capital 
        expenditures for new projects) in accordance with the following 
        Acts and provisions of law, as in effect on the date of 
        enactment of the last Act listed:
                    ``(A) Section 5338(a)(1) or (b)(1) of title 49.
                    ``(B) The Intermodal Surface Transportation 
                Efficiency Act of 1991.
                    ``(C) The Transportation Equity Act for the 21st 
                Century.
                    ``(D) The Safe, Accountable, Flexible, and 
                Efficient Transportation Equity Act of 2003.''.

SEC. 9003. EXTENSION OF TAX BENEFITS FOR ALCOHOL FUELS.

    (a) Extension of Tax Benefits.--
            (1) Extension.--The following provisions are each amended 
        by striking ``2007'' each place it appears and inserting 
        ``2014'':
                    (A) Section 4041(b)(2)(C)(ii) and (D) (relating to 
                termination of reduction in tax for qualified methanol 
                and ethanol fuel).
                    (B) Section 4041(k)(3) (relating to termination of 
                rates relating to fuels containing alcohol).
                    (C) Section 4081(c)(8) (relating to termination of 
                special rate for taxable fuels mixed with alcohol).
                    (D) Section 4091(c)(5) (relating to termination of 
                reduced rate of tax for aviation fuel in alcohol 
                mixture, etc.).
                    (E) Section 40(h) (relating to termination of 
                credit for ethanol blenders).
            (2) Extension of refund authority.--Paragraph (4) of 
        section 6427(f) (relating to refund for gasoline, diesel fuel, 
        and aviation fuel used to produce certain alcohol fuels), as 
        amended by the Taxpayer Relief Act of 1997, is amended by 
        striking ``2007'' and inserting ``2012''.
            (3) Credit for alcohol used as a fuel.--Paragraph (1) of 
        section 40(e) (relating to termination of credit for alcohol 
        used as a fuel) is amended--
                    (A) by striking ``December 31, 2007'' in 
                subparagraph (A) and inserting ``December 31, 2014'', 
                and
                    (B) by striking ``January 1, 2008'' and inserting 
                ``January 1, 2015''.
            (4) Tariff schedule.--Headings 9901.00.50 and 9901.00.52 of 
        the Harmonized Tariff Schedule of the United States (19 U.S.C. 
        3007) are each amended in the effective period column by 
        striking ``10/1/2007'' each place it appears and inserting 
        ``10/1/2014''.
    (b) Conforming Amendments.--
            (1) Amount of reduced credit for ethanol blenders.--The 
        table in paragraph (2) of 40(h) is amended by striking ``2005, 
        2006, or 2007'' and inserting ``2005 through 2014''.
            (2) Applicable blender rate for exempted qualified methanol 
        and ethanol fuel.--Section 4041(b)(2)(C) is amended by striking 
        ``2001'' and inserting ``2008''.

SEC. 9004. PRIVATE ACTIVITY BONDS FOR SURFACE TRANSPORTATION 
              INFRASTRUCTURE.

    (a)  Exempt Facility Bonds.--Section 142 is amended--
            (1) in subsection (a) by--
                    (A) striking ``or'' at the end of paragraph (12);
                    (B) striking the period at the end of paragraph 
                (13) and inserting a comma; and
                    (C) adding after paragraph (13) the following new 
                paragraphs:
            ``(14) highway facilities, or
            ``(15) surface freight transfer facilities.''; and
            (2) by adding new subsections (l), (m), and (n) at the end, 
        as follows:
    ``(l) Highway Facilities.--For purposes of subsection (a)(14), the 
term `highway facilities' means--
            ``(1) a surface transportation project eligible for Federal 
        assistance under title 23, United States Code (as in effect on 
        the date of enactment of this subsection), or
            ``(2) a project for an international bridge or tunnel for 
        which an international entity authorized under Federal or State 
        law is responsible.
    ``(m) Surface Freight Transfer Facilities.--For purposes of 
subsection (a)(15), the term ``surface freight transfer facilities'' 
means facilities for the transfer of freight from truck to rail or rail 
to truck (including any temporary storage facilities directly related 
to such transfers).
    ``(n) Aggregate Face Amount of Tax-Exempt Financing for Highway 
Facilities and Surface Freight Transfer Facilities.
            ``(1) In general.--The aggregate face amount of bonds 
        issued pursuant to subsections (a)(14) (relating to highway 
        facilities) and (a)(15) (relating to surface freight transfer 
        facilities) shall not exceed $15,000,000,000, determined 
        without regard to any bond the proceeds of which are used 
        exclusively to refund a bond issued pursuant to either of such 
        subsections (or a bond which is a part of a series of 
        refundings of a bond so issued) if the amount of the refunding 
        bond does not exceed the outstanding amount of the refunded 
        bond.
            ``(2) Allocation.--The Secretary of Transportation shall 
        allocate the amount described in paragraph (1) among eligible 
        projects satisfying the requirements of subsection (a)(14) or 
        (a)(15).''.
    (b) Volume Cap, Exception for Certain Bonds.--Section 146(g) is 
amended in paragraph (3), by--
            (1) striking ``(12), or (13)'' and inserting ``(12), (13), 
        (14), or (15)''; and
            (2) striking ``and qualified public educational 
        facilities'' and inserting ``qualified public educational 
        facilities, highway facilities, and surface freight transfer 
        facilities''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 9005. ALL ALCOHOL FUEL TAXES TRANSFERRED TO HIGHWAY TRUST FUND.

    (a) In General.--Section 9503(b)(4) (relating to certain taxes not 
transferred to Highway Trust Fund) is amended--
            (1) by adding ``or'' at the end of subparagraph (C);
            (2) in subparagraph (D)(iii), by striking ``, and'' after 
        ``2005'' and inserting a period; and
            (3) by striking subparagraphs (E) and (F).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxes imposed after September 30, 2003.

SEC. 9006. TRANSFER FROM HIGHWAY TRUST FUND TO BOAT SAFETY ACCOUNT.

    (a) In General.--Section 9503(c)(4)(A) is amended by striking 
``2005'' and inserting ``2011''.
    (b) Conforming Amendments to Land and Water Conservation Fund.--
Section 201(b) of the Land and Water Conservation Fund Act of 1965 (16 
U.S.C. 460l-11(b)) is amended--
            (1) by striking ``2003'' and inserting ``2009'', and
            (2) by striking ``2004'' each place it appears and 
        inserting ``2010''.
    (c) Technical Correction to Homeland Security Act.--Section 
1511(e)(2) of the Homeland Security Act of 2002 (Public Law No. 107-
296) is amended by striking ``and to any funds provided to the Coast 
Guard from the Aquatic Resources Trust Fund of the Highway Trust Fund 
for boating safety programs'', and inserting ``and any funds provided 
to the Coast Guard from the Highway Trust Fund and transferred into the 
Boat Safety Account of the Aquatic Resources Trust Fund for boating 
safety programs.''.
    (d) Expenditures From Boat Safety Account.--Section 9504(c) is 
amended by striking ``2003'' and inserting ``2009''.

SEC. 9007. EXTENSION OF SMALL-ENGINE FUEL TAXES TRANSFERRED TO SPORT 
              FISH RESTORATION ACCOUNT.

    Section 9503(c)(5)(A) is amended by striking the year ``2005'' and 
inserting ``2011''.

SEC. 9008. TECHNICAL CORRECTION.

    The last sentence of paragraph (2) of section 9504(b) is amended by 
striking ``subparagraph (B)'', and inserting ``subparagraph (C)''.

SEC. 9009. TRANSFER BY REGISTERED PIPELINE, VESSEL, OR BARGE REQUIRED 
              FOR FUEL TAX EXEMPTION OF BULK TRANSFERS TO REGISTERED 
              TERMINALS OR REFINERIES; DISPLAY OF REGISTRATION 
              REQUIREMENT.

    (a) In General.--Section 4081(a)(1)(B) (relating to exemption for 
bulk transfers to registered terminals or refineries) is amended by 
inserting ``, bulk carrier,'' after ``the taxable fuel''.
    (b) Civil Penalty for Carrying Taxable Fuels by Nonregistered 
Pipelines or Vessels.--
            (1) In general.--Part II of subchapter B of chapter 68 
        (relating to assessable penalties) is amended by adding at the 
        end the following new section:
``Sec. 6717. Failure to register under section 4101
    ``(a) Failure To Register.--Any person who fails to register with 
the Secretary as required by regulations under section 4101 shall pay a 
penalty of $1,000 for each day during the period of such failure in 
which such person engages in an activity for which registration is 
required.
    ``(b) Joint and Several Liability.--
            ``(1) In general.--If a penalty is imposed under this 
        section on any business entity, each officer, employee, or 
        agent of such entity or other contracting party who willfully 
        participated in any act giving rise to such penalty shall be 
        jointly and severally liable with such entity for such penalty.
            ``(2) Affiliated groups.--If a business entity described in 
        paragraph (1) is part of an affiliated group (as defined in 
        section 1504(a)), the parent corporation of such entity shall 
be jointly and severally liable with such entity for the penalty 
imposed under this section.''.
            (2) Conforming amendment.--The table of sections for part 
        II of subchapter B of chapter 68 is amended by adding at the 
        end the following new item:

``6717. Failure to register under section 4101.''.
    (c) Display of Registration.--
            (1) In general.--Section 4101 (relating to registration and 
        bond) is amended by adding at the end the following new 
        subsection:
    ``(e) Display of Registration.--Every vessel operator required by 
the Secretary to register under this section with respect to the tax 
imposed by section 4081 shall display proof of such registration in 
such manner as the Secretary may prescribe.''.
            (2) Civil penalty for failure to display registration.--
                    (A) In general.--Part II of subchapter B of chapter 
                68 (relating to assessable penalties) is amended by 
                adding at the end the following new section:
``Sec. 6718. Failure to display proof of registration by vessels or 
              barges
    ``(a) Failure To Display Proof of Registration.--Every vessel 
operator who fails to display proof of registration when required to do 
so pursuant to section 4101(e) shall pay a penalty of $500 for each 
such failure. With respect to any vessel, only one penalty shall be 
imposed by this section during any calendar month.
    ``(b) Multiple Violations.--In determining the penalty under 
subsection (a) on any person or operator, subsection (a) shall be 
applied by increasing the amount imposed in subsection (a) by the 
product of such amount and the number of prior penalties (if any) 
imposed by this section on such person (or a related person or any 
predecessor of such person or related person).''.
                    (B) Conforming Amendment.--The table of sections 
                for part II of subchapter B of chapter 68 is amended by 
                adding at the end the following new item:

``6718. Failure to display proof of registration by vessels or 
                            barges.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect 90 days after the date of enactment of this Act.

SEC. 9010. RETURNS FILED ELECTRONICALLY.

    (a) Information Reporting.--Section 4101(d) (relating to 
information reporting) is amended to read as follows:
    ``(d) Information Reporting.--
            ``(1) The Secretary may require--
                    ``(A) information reporting by any person 
                registered under this section, and
                    ``(B) information reporting by such other persons 
                as the Secretary deems necessary to carry out this 
                part.
            ``(2) Information reporting required by the Secretary under 
        paragraph (1) of this subsection shall be by electronic format 
        for any person having at least 25 reportable transactions in a 
        month.''.
    (b) Use Tax on Certain Vehicles.--Section 4481(b) is amended by 
adding the following new sentence at the end: ``Any return of tax 
imposed by this section reporting at least 25 vehicles shall be filed 
by electronic format.''.
    (c) Electronic Format.--The Secretary of the Treasury shall 
describe the electronic formats for filing under subsections (a) and 
(b) not later than 90 days after the date of the enactment of this Act.
    (d) Effective Date.--The amendment made by subsection (a) shall 
apply to returns due after the date the Secretary of the Treasury 
describes the electronic format for filing under subsection (a) and the 
amendment made by subsection (b) shall apply to returns due after the 
date the Secretary of the Treasury describes the electronic format for 
filing under subsection (b).

SEC. 9011. CIVIL PENALTY FOR REFUSAL OF ENTRY.

    (a) Section 4083(c)(3) is amended by adding at the end a new 
sentence as follows: ``For purposes of this subsection, the penalty 
provided by section 7342 shall be treated as an assessable penalty and 
assessed in accordance with section 6671.''.
    (b) Effective Date.-- The amendments made by this section shall 
take effect 90 days after the date of enactment of this Act.

SEC. 9012. REQUIREMENT OF TAX PAYMENT DECAL; ELIMINATION OF INSTALLMENT 
              PAYMENTS OF HIGHWAY USE TAX.

    (a) Display of Proof of Payment of Tax.--Section 4481(b) (relating 
to imposition of tax on use of certain highway motor vehicles) is 
amended by adding a sentence at the end as follows: ``Every person, 
agency, or instrumentality who has paid the tax imposed by this section 
shall display proof of such payment in a manner as the Secretary may 
prescribe.''.
    (b) Civil Penalty for Failure To Display Proof of Tax Payment 
Decal.--
            (1) In general.--Part II of subchapter B of chapter 68 
        (relating to assessable penalties) is amended by adding at the 
        end the following new section:
``Sec. 6719. Failure to display proof of tax payment decal
    ``(a) Imposition of Penalty.--Each person, agency, or 
instrumentality who fails to display proof of payment of tax when 
required to do so pursuant to the last sentence of section 4481(b) 
(relating to the display of proof of payment of tax) shall pay a 
penalty of $50. With respect to any vehicle, only one penalty shall be 
imposed by this section during any calendar month.
    ``(b) Multiple Violations.--In determining the penalty under 
subsection (a) on any person, agency, or instrumentality, subsection 
(a) shall be applied by increasing the amount imposed in subsection (a) 
by the product of such amount and the number of prior penalties (if 
any) imposed by this section on such person, agency, or 
instrumentality. ''.
            (2) Conforming amendment.--The table of sections for part 
        II of subchapter B of chapter 68 is amended by adding at the 
        end the following new item:

``6719. Failure to display proof of tax payment decal.''.
    (c) Elimination of Privilege To Pay Highway Use Tax in 
Installments.--
            (1) Repeal.--Section 6156 (relating to the privilege to pay 
        in installments the tax imposed under section 4481 of such Code 
        on use of highway motor vehicles) is repealed.
            (2) Conforming amendment.--The table of sections for 
        subchapter A of chapter 62 is amended by striking the item 
        relating to section 6156.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable periods beginning after the date of the enactment of 
this Act.

SEC. 9013. ADDITIONAL RULES REGARDING INSPECTIONS OF RECORDS.

    (a) Provision of Copies of Records.--Section 4102 (relating to 
inspection of records by local officers) is amended by inserting ``, 
and copies shall be furnished upon request of,'' after ``inspection 
by''.
    (b) Inspection by Other Enforcement Agencies.--Section 4102 of the 
Internal Revenue Code of 1986, as amended by subsection (a), is amended 
by inserting ``; such records and information on returns required to be 
filed with respect to taxes under section 4481 shall be open to 
inspection by officers of any State agency charged with the 
registration and licensing of vehicles described in such section and 
officers of any other Federal or State agency charged with the 
enforcement of Federal or State law regarding taxable fuels or criminal 
activities regarding taxable fuels'' after ``section 4083)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
                                 <all>
Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2004

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