**Key Highway Provisions of the**

***Safe, Accountable, Flexible, and Efficient***

***Transportation Equity Act of 2004***

***(S. 1072)***

**As Passed Senate February 12, 2004**

**TITLE I -- FEDERAL-AID HIGHWAYS**

**Subtitle A -- Funding**

[Authorization Level]{.underline}. The bill authorizes \$255.8 billion
in contract authority for the Federal-aid highway program for the period
2004-2009. In addition, the bill authorizes \$3.4 billion in the
Federal-aid Highway and research titles that is subject to
appropriation. Funding levels for specific programs may be found in the
authorization table. \[§1101\]

[Obligation Limitation]{.underline}. The bill provides obligation
limitation totaling \$233.5 billion over the 6 years. The obligation
limitation is subject to adjustment, up or down, based on actual
receipts to the Highway Account of the Highway Trust Fund and forecasts
of receipts made after enactment. The instructions for the distribution
of the limitation are similar to those in TEA-21, including the "lop
off" of contract authority in excess of the amount available for
obligation for most allocated programs. Continues the use of no-year
limitation for the Appalachian Development Highway System and 3-year
limitation for research programs. Sets a limitation on administrative
expenses (LAE) equal to the amount of contract authority authorized for
administration. \[§ 1102\]

[Administrative Funds]{.underline}. The bill replaces the administrative
takedown on apportioned programs found in current law with a direct
authorization of contract authority of \$2.925 billion over the life of
the bill, of which \$24 million is reserved for planning capacity
building initiatives. \[§§ 1103, 1522\]

[Metropolitan Planning]{.underline}. The bill increases the current 1
percent setaside to 1.5 percent for metropolitan planning and applies
the takedown to the following programs: Interstate Maintenance (IM),
National Highway System (NHS), Surface Transportation Program (STP),
Highway Bridge Program, Congestion Mitigation and Air Quality
Improvement Program (CMAQ), and the Highway Safety Improvement Program
(HSIP). In addition, Metropolitan Planning will receive a portion of the
programmatic distribution under the Equity Bonus Program. \[§§ 1103,
1104\]

[Equity Bonus]{.underline}. The Equity Bonus replaces TEA-21's Minimum
Guarantee. The overall goal of the Bonus is to provide a 95 percent
return on each State's share of contributions to the Highway Account of
the Highway Trust Fund. The calculation includes apportionments from the
following programs: IM, NHS, Bridge, STP, HSIP, CMAQ, Metro Planning,
Infrastructure Performance and Maintenance Program (IPAM), the
Appalachian Development Highway System Program (ADHS), Recreational
Trails, Safe Routes to Schools, Rail-Highway Grade Crossings, and the
Equity Bonus itself. Special rules protect the calculations for 18
States with a population density of less than 20 persons per square
mile, a population less than 1 million, or a median household income
less than \$35,000. Further, no State is to receive apportionments that
amount to less than 110 percent of the average annual apportionments for
specified programs during 1998-2003. There is a cap on the Equity Bonus
such that no State may receive apportionments more than a specified
percentage (120 percent for 2004 rising to 250 percent for 2009) of
their average for 1998-2003. Notwithstanding the cap, no State's return
on its share of contributions to the Highway Account may be less than
90.5 percent and no State is to receive a negative adjustment. Because
of the caps, some States will not reach a 95 percent return until 2009.
\[§ 1104\]

[Revenue Aligned Budget Authority (RABA)]{.underline}. The bill
continues the concept of guaranteed funding, adjusting the amount of
contract authority and obligation limitation whenever the budgetary
firewalls are adjusted. The calculation of the adjustment is detailed in
Title VI of the bill. The adjustment to contract authority can be either
positive or negative and is to be made in the same year as any
adjustment to the budgetary firewalls (Under current law, there would be
a 1-year delay). \[§ 1105\]

## Subtitle B -- New Programs

[Infrastructure Performance and Maintenance.]{.underline} The bill
creates a new IPAM Program that would fund discretionary projects that
either preserve or maintain existing highway infrastructure elements or
provide operational improvements at traffic chokepoints, particularly
those "ready-to-go" projects that will produce immediate benefits while
avoiding long-term commitment of funds. In addition to these
requirements, projects selected must also be eligible under the IM, NHS,
STP, HSIP, Bridge or CMAQ Programs. The initiative allows States 180
days to obligate the program dollars. The program is authorized for FY
2004 only at a level of \$2 billion. \[§ 1201\]

[Future of Surface Transportation System]{.underline}. The Secretary of
Transportation would be required to conduct a study of current condition
and future needs of the surface transportation system and develop a
conceptual plan with alternatives to ensure that the surface
transportation system will continue to serve the Nation's needs. The
report is to include recommendations regarding design and operational
standards, Federal policies, and legislative changes. The Secretary
would also establish a Technical Advisory Committee composed of
representatives of several specified organizations and fields. The
report, which has a wider scope than FHWA's longstanding *Conditions and
Performance* study, is to be completed within four years of enactment.
\[§ 1202\]

[Freight-Transportation Gateway Program]{.underline}. The Secretary of
Transportation is to establish a freight transportation gateways program
to improve productivity, security, safety, access, and economic
efficiency while mitigating congestion and community impacts. The bill
calls for intermodal freight needs to be addressed in the project
development process. States are to coordinate with metropolitan planning
organizations (MPOs) and appoint a freight transportation coordinator to
work with other States, localities and federal officials, including
representatives of the Departments of Defense and Homeland Security.
States and localities are encouraged to use innovative financing
strategies for gateway improvements. The bill defines the eligibilities
for freight transportation gateways under the Surface Transportation
Program. For freight intermodal connectors on the NHS, the bill
establishes a 2 percent NHS setaside, and exempts from the setaside
States with adequate corridors. The bill provides for a Federal share of
90 percent for projects to support NHS intermodal freight connections.
Finally, private freight rail facilities providing public benefit and
public freight rail facilities, intermodal freight facilities are
eligible for credit assistance under the Transportation Infrastructure
Finance and Innovation Act. \[§§ 1203, 1303\]

[Construction of Ferry Boats and Ferry Terminal Facilities]{.underline}.
The bill codifies the Ferry Boat program and specifies the types of
projects to be given priority. It does not extend the TEA-21 setaside
from the program for ferry projects on the NHS. The program is funded at
\$100 million per year by two separate authorizations of \$50 million
each. \[§§ 1204, 1101\]

[Designation of Daniel Patrick Moynihan Interstate Highway]{.underline}.
Interstate Highway 86 in the State of New York is to be designated the
Daniel Patrick Moynihan Highway. \[§ 1205\]

[State-by-state Comparison of Highway Construction Costs.]{.underline}
The bill would require FHWA to modify the current bid price index so
that state-by-state comparisons of construction costs may be made and to
rectify data collection deficiencies identified by General Accounting
Office (GAO). An annual report to Congress is required that includes the
cost in each State to construct a "standard" mile of roadway and a
description of the competitive bidding procedures used in each State.
\[§ 1206\]

## Subtitle C -- Finance

[Federal Share]{.underline}. For most projects, the otherwise
established Federal share may be increased up to 95 percent based on the
percentage of a State's land area that is nontaxable Indian land, public
land, national forest or national park and monument. The provision
adopts the Administration's streamlined calculation of the adjustment,
commonly referred to as the sliding scale. \[§ 1301\]

[Transfer of Highway and Transit Funds]{.underline}. The bill clarifies
the ability to transfer funds between FHWA and FTA and adds the
authority to transfer State apportionments from one State to another if
requested by the State. \[§ 1302\]

[Transportation Infrastructure Finance and Innovation Act
(TIFIA)]{.underline}. The bill continues the TIFIA credit program and
provides contract authority for the estimated subsidy costs and the
administration of the program at \$130 million per year. The proposal
expands TIFIA eligibility to public freight rail facilities or private
facilities providing public benefit, intermodal freight transfer
facilities, means of access to such facilities, and service improvements
for facilities such as Intelligent Transportation Systems (ITS). The
bill also reduces the minimum eligible project size from \$100 million
to \$50 million or 20 percent of a State's highway apportionments for
the most recently completed fiscal year in which the project is
constructed. \[§ 1303\]

[National Commission on Future Revenue Sources to Support the Highway
Trust Fund and Finance the Needs of the Surface Transportation
System]{.underline}. Establishing an 11-member bipartisan commission to
conduct a comprehensive study of the alternatives to replace or to
supplement the fuel tax as the principal source of revenue to support
the Highway Trust Fund over the next 30 years, the bill authorizes \$3
million for FY 2004 for the costs of the commission and study. The
Report to Congress is due on September 30, 2007. \[§ 1305; see similar
Commission in § 5502\]

[State Infrastructure Banks (SIBs)]{.underline}. The bill expands the
TEA-21 SIB program (which limits eligibility to California, Florida,
Missouri, and Rhode Island) to any other State that seeks such an
agreement. As under TEA-21, Federal requirements would apply to
"recycled" funds. \[§ 1306\]

[Public-private Partnerships Pilot Program]{.underline}. The bill
establishes a new pilot program to demonstrate the advantages of
public-private partnerships for critical capital development projects,
including highway, bridge, and freight intermodal connector projects
authorized under Title 23. The Secretary may select up to 10 projects.
Authorized funding of \$10 million per year is available to provide
project sponsors assistance for development phase activities, to enhance
project delivery and reduce overall costs. \[§ 1307\]

## Subtitle D -- Safety

[Highway Safety Improvement Program (HSIP)]{.underline}. Replacing the
safety setaside from the Surface Transportation Program, the bill
establishes the HSIP as a stand-alone, umbrella program for a total of
\$8.2 billion distributed by formula over the life of the bill. States
are required to develop and implement a State strategic highway safety
plan, in close consultation with stakeholders, by October 1 of the
second fiscal year. All projects, by definition, are included in the
plan. If a State fails to develop a strategic safety plan by October 1
of the second fiscal year, but demonstrates satisfactory progress to the
Secretary, the State may continue to use HSIP funds but only for
purposes currently eligible for rail-highway crossing and hazard
elimination program funds. If a State has not adopted a strategic
highway safety plan 2 years after enactment, the HSIP funds it would
otherwise receive will be apportioned to other States using the STP
formula. States with strategic safety plans may use up to 25 percent of
their HSIP funds for other safety projects included in the strategic
plan. The Federal share for projects funded by HSIP is 90 percent.

States must set aside from their HSIP apportionments funds for bicycle
and pedestrian safety improvements based on the percentage of all fatal
crashes in the State that involve bicyclists and pedestrians.

States must submit annual reports on their progress and performance in
achieving strategic safety goals and describing not less than 5 percent
of locations determined by the State to exhibit the most severe safety
needs. The Secretary must post the reports on the World Wide Web. The
reports are not subject to discovery and may not be admitted into
evidence in a Federal or Sate court proceeding in any action for damages
arising from an occurrence at any identified location. \[§ 1401\]

[Railway-highway Crossings]{.underline}. The bill establishes a takedown
from the HSIP of \$200 million per year for hazard elimination and the
installation of protective devices at rail-highway crossings. The funds
are apportioned to the States using the HSIP formula and 50 percent of
the funds apportioned to each State are set aside for protective
devices. Program funds may be used for program related data compilation
and analysis. \[§ 1401\]

[Roadway Safety Improvements for Older Drivers and
Pedestrians]{.underline}. A new program, authorized at \$25 million per
year, funds projects to improve traffic signs and pavement markings
consistent with the recommendations in FHWA's Guidelines and
Recommendations to Accommodate Older Drivers and Pedestrians. The bill
does not describe how the funds are to be distributed. \[§ 1401\]

[Operation Lifesaver]{.underline}. Drawing from the HSIP rather than
STP, the bill increases the takedown to \$600 million annually for this
grade crossing education and awareness program. \[§ 1402\]

[Bus Axle-weight Exemption]{.underline}. The bill exempts over-the-road
buses and intrastate public agency transit passenger buses on the
Interstate from the axle-weight limitations. \[§ 1404\]

[Safe Routes to Schools]{.underline}. Establishing a new program to
enable and encourage primary and secondary school children to walk and
bicycle to school, eligible activities include infrastructure-related
and behavioral projects (at least 10 percent must be used for the
latter). A \$70 million annual takedown from the HSIP, apportioned to
States by HSIP formula, would be available to State, regional and local
agencies until expended with a federal share of 90 percent. \[§ 1405\]

[Purchases of Equipment]{.underline}. The bill adds a requirement that
States carrying out a project under Chapter 1 of Title 23 make
comparisons of the costs of equipment purchase vs. leasing of the
equipment. A written analysis is required to demonstrate the cost
savings associated with purchasing the equipment. \[§ 1406\]

[Workzone Safety]{.underline}. The provision adds to the list of methods
that the Secretary shall use for improving safety at highway
construction project sites a recommendation that 1) all
federally-assisted projects in excess of \$15 million enter into
contracts only with work zone safety services and traffic control
contractors that carry general liability insurance of no less than \$15
million, 2) all such projects are monitored by a qualified vendor and
monitored continuously; and 3) federally-funded projects fully fund not
less than 5 percent of project costs for work zone safety and temporary
traffic control measures. \[§ 1407\]

[Worker Injury Prevention and Free Flow of Vehicular
Traffic]{.underline}. The legislation calls upon the Secretary to
promulgate regulations to decrease the probability of worker injury;
require workers to wear high-visibility clothing, and other such
worker-safety measures, as the Secretary deems appropriate. \[§ 1408\]

[Identity Authentication Standards]{.underline}. Adds to Chapter 1 of
Title 23 new requirements for authenticating the identity of applicants
for commercial drivers' licenses by State departments of motor vehicles.
\[§ 1409\]

[Open Container Requirements]{.underline}. Effective with FY 2008
apportionments, the Secretary must withhold 2 percent of any amount to
be apportioned to the State for Federal-aid highways if the State fails
to enact and enforce a qualifying open container law. If a State whose
funds have been withheld comes into compliance within 4 years of any
withholding action, the funds may be restored to the State. The current
law provision requiring the transfer of highway apportionments to safety
programs is eliminated. \[§ 1410\]

## Subtitle E-- Environmental Planning and Review

[Integration of Natural Resource Concerns into State and Metropolitan
Transportation Planning]{.underline}. Intending to strengthen the
integration of natural resource consideration and stakeholder
participation in the metropolitan and statewide transportation planning
processes, the bill adds water quality and the minimization of adverse
health effects as planning factors. \[§ 1501\]

[Consultation Between Transportation Agencies and Resource Agencies in
Transportation Planning]{.underline}. Long-range transportation plans
must include a discussion of potential habitat, hydrological and
environmental mitigation activities as well as transportation strategies
necessary to effect greater mobility. The proposal mandates that the MPO
and State, respectively, consult with State and local agencies
responsible for land use management, natural resources, environmental
protection, conservation, and historic preservation in the development
of transportation plans. \[§ 1502\]

[Integration of Natural Resource Concerns into Transportation Project
Planning.]{.underline} In developing environmentally related NHS design
criteria (in cooperation with State transportation departments), the
Secretary must consider FHWA's Flexibility in Highway Design and Eight
Characteristics of Process to Yield Excellence and the Seven Qualities
of Excellence in Transportation Design. \[§ 1503\]

[Public Involvement in Transportation Planning and
Projects]{.underline}. The provision directs States and MPOs to share
potential projects by holding public meetings at convenient and
accessible locations and time, employing visualization techniques, and
posting information on the World Wide Web. \[§ 1504\]

[Project Mitigation]{.underline}. Specifying that States should
establish habitat, stream, and wetland mitigation funds to encourage
efforts for habitat, streams, and wetlands mitigation in advance of or
in conjunction with highway or transit project, the bill allows States
to deposit and use a portion of their NHS and STP apportionments in such
a fund. \[§1505\]

[Transportation Project Development Process]{.underline}. Establishing
an alternative project development process for highway and transit
programs, the provision lays out specific roles and responsibilities for
Federal agencies (e.g., Lead and cooperating agencies) with specific
consequences for certain actions or inaction by Federal agencies. The
U.S. Department of Transportation is established as the lead agency in
the environmental review process. The sponsor of a project may request
that the lead agency carry out the environmental review process for a
project under the alternative process. The process has certain
prescribed steps, including collaborative development of flexible
process and timeline work plans; purpose and need statements, project
alternatives; and issue identification and resolution processes.
\[§ 1511\]

[Assumption of Responsibility for Categorical Exclusions]{.underline}. A
State may assume responsibility for determining whether certain
designated activities are categorically excluded from environmental
assessment or impact statement requirements, following a three-year
memorandum of understanding between the State and the Secretary, which
would include the establishment of circumstances under which the
Secretary would reassume responsibility. \[§ 1512\]

[Surface Transportation Project Delivery Pilot Program]{.underline}.
With a written agreement of the Secretary and a State, the Secretary may
assign the environmental review responsibilities of the Secretary (with
the exclusion of the Clean Air Act) for one or more highway projects.
The State responsibility would not preempt U.S. DOT authority. Up to
five states, including Oklahoma, may participate in the program. The
Secretary will promulgate regulations within 270 days after enactment to
carry out the program, in which States will compete to participate. U.S.
district courts will have exclusive jurisdiction over any civil actions
taken against a state carrying out these responsibilities. The Secretary
will provide an annual report to Congress on the administration of the
program. \[§ 1513\]

[Parks, Recreation Areas, Wildlife and Waterfowl Refuges, and Historic
Sites ("4(f)")]{.underline}. The bill amends the preservation of
parkland policy to allow the requirements to be satisfied if the
Secretary finds that a program or project will have a de minimis impact
on the protected area. In making determinations, the Secretary is to
consider avoidance, minimization, mitigation, or enhancement measures
included in the project. The Secretary must consult with appropriate
agencies and receive written concurrence, for example from the Advisory
Council on Historic Preservation for historic sites. The Secretary is
required to promulgate new regulations to determine standards to define
whether avoiding a protected resource is prudent and feasible. A joint
study and a report to congress are required of the Secretary and the
Transportation Research Board on the processes developed under this
provision, the post-construction effectiveness of mitigation and
avoidance measures, and the quantity of projects for which there have
been de minimis findings. \[§ 1514\]

[Regulations]{.underline}. The Secretary shall promulgate regulations
necessary to implement the amendments made by Chapters 1 and 2 of
Subtitle E (except the pilot program under section 1513) not later than
one year of enactment. \[§ 1515\]

[Critical Real Property Acquisition]{.underline}. The legislation allows
states to use their highway apportionments to acquire any real property
determined to be critical because the value of the property value is
increasing significantly, there is imminent threat of development, and
the property is necessary for the implementation of the goals stated in
the proposal for the project. \[§ 1521\]

[Planning Capacity Building Initiative]{.underline}. The bill directs
the Secretary to carry out a planning capacity building initiative,
funded at a total of \$24 million from FHWA's administrative funds, to
support enhancements in transportation planning to strengthen State, MPO
and tribal transportation planning, especially those activities directed
toward homeland security. The Federal share is 100 percent. \[§ 1522\]

## Subtitle F - Environment

[Environmental Restoration and Pollution Abatement; Control of Invasive
Species and Establishment of Native Species]{.underline}. Expanding
eligibility under both the STP and NHS programs for pollution abatement
and environmental restoration activities, the bill establishes
eligibility for the control of invasive plant species and establishment
of native species. \[§ 1601\]

[National Scenic Byways]{.underline}. Establishing America's Byways as
an umbrella for promoting National Scenic Byways and All-American Roads,
the bill provides a total of \$220 million and clarifies the Secretary
of Transportation's authority for research, technical assistance,
marketing and promotion. \[§ 1602\]

[Recreational Trails Program (RTP)]{.underline}. Expanding permissible
fund uses to trail assessment, trail crews, and trail training, the bill
also provides a total of \$360 million, amends the Federal share to be
sliding scale rather than a strict 80 percent, allows RTP funds to match
other Federal funds, and allows Federal share flexibilities for RTP
projects sponsored by Federal agencies. It also adds a Youth Corps
funding requirement of at least 10 percent of RTP. \[§ 1603\]

[Exemption of Interstate System]{.underline}. The bill states that the
Interstate system shall not be considered to be a historic site,
regardless of whether it is listed on the National Register of Historic
Places. However, a portion of the system that possesses an independent
feature of historic significance, such as a historic bridge or a highly
significant engineering feature that would qualify independently for
listing on the Register shall be considered to be a historic site.
\[§ 1604\]

[Standards]{.underline}. Requiring the Secretary to encourage States to
use context sensitive design, the bill allows exceptions from the
Interstate and National Highway System design requirements, if the
design is consistent with context sensitive design principles.
\[§ 1605\]

[Use of High Occupancy Vehicle (HOV) Lanes]{.underline}. Continues to
define a vehicle qualifying to use high occupancy vehicle lane as one
having at least two occupants. States must permit motorcycles to use HOV
lanes unless a responsible agency certifies that use of the HOV lane by
motorcycles would be safety hazard. States may allow single occupant
vehicles (SOVs) that are both low emission and highly fuel efficient to
use HOV lanes if the State establishes a method of marking such
vehicles, monitors and reports on performance, and ensures that use by
SOVs does not seriously degrade the performance of the facility. States
may also permit public transportation vehicles to use HOV lanes. States
may charge tolls on use of HOV lanes by vehicles that do not satisfy
established high occupancy vehicle lane requirements (a.k.a. HOT Lanes).
\[§ 1606\]

[Bicycle Transportation and Pedestrian Walkways]{.underline}. Explicitly
allowing STP and CMAQ funds to be used for nonconstruction pedestrian
safety projects, the proposal continues \$500,000 annual funding for a
national, nonprofit pedestrian and bicycle safety clearinghouse (as a
deduction from the STP rather than a separate line item). States must
also allocate a portion of their HSIP funds for bicycle and pedestrian
improvements based on the percentage of all fatal crashes in their
respective States involving bicyclists and pedestrians. \[§§ 1607,
1401\]

[Idling Reduction Facilities in Interstate Rights-of-Way]{.underline}.
The bill would allow States to permit installation of electrification or
other idling reductions facilities in rest areas within the Interstate
right-of-way that could be used to provide heating, air conditioning,
electricity, and communication to motor vehicles, even if used for
commercial purposes. States may not charge or permit charges for the use
of such facilities. \[§ 1608\]

[Toll Programs]{.underline}. Amending the Interstate System
Reconstruction and Rehabilitation Pilot Program, the proposal eases the
test for eligibility if the use of tolls to finance the reconstruction
or rehabilitation is the most efficient, economical or expeditious
option to advance the project.

Additionally, the proposal includes a Fast and Sensible Toll (FAST)
Lanes program that would allow tolling, subject to an agreement with the
Secretary, to manage high levels of congestion, to reduce emissions in
an air quality nonattainment or maintenance area, or to finance the
addition of one or more lanes to a Interstate highway to reduce
congestion. Eligible facilities are existing (at the time of enactment)
toll facilities, existing facilities, including those that serve HOVs,
facilities constructed or modified after enactment to create additional
tolled capacity and, in the case of a previously untolled facility, only
the new lane(s) added. States, public authorities, or public and private
entities designated by a State may collect tolls to be used for 1) debt
service, 2) a reasonable return on investment of any private financing,
3) operating and maintenance costs (including costs of 4R), and 4)
highway and transit purposes eligible for Federal assistance under this
Titles 23 and 49. A facility charging tolls under this provision may
impose tolls that vary by time of day, and tolls on HOV facilities under
this provision must vary by time of day. Tolls collected from motorists
using a FAST lane must be collected using noncash electronic technology.
The Secretary is to promulgate a final rule within 180 days of enactment
specifying requirements, standards, and performance specifications for
automated toll collection systems to maximize interoperability. Funding
is authorized for pre-implementation and post-implementation evaluations
of projects planned or implemented under this provision. The Secretary
may use up to 2 percent of the funds for grants to promote program
purposes and for technical support for entities considering or
implementing FAST lanes. The Federal share for projects is 80 percent.
\[§1609\]

[Federal Reference Method]{.underline}. The Administrator of the
Environmental Protection Administration (EPA) is to conduct a study of
the ability of monitors to coarse particulate matter and to develop a
method to measure directly the amount and composition of coarse
particulate matter. \[§ 1610\]

[Addition of Particulate Matter Areas to CMAQ]{.underline}. The bill
establishes apportionment factors that modify existing values for ozone
and carbon monoxide nonattainment and maintenance areas and account for
new ozone and fine particulate matter nonattainment areas. \[§ 1611\]

[Addition to CMAQ-Eligible Projects]{.underline}. The provision expands
CMAQ funding eligibility to the purchase of alternative fuel or
biodiesel and to the purchase of integrated, interoperable emergency
communications equipment. The bill also directs that States are
responsible for ensuring that sub recipients of CMAQ funds have emission
reduction strategies for fleets used in construction projects located in
nonattainment or maintenance areas when the projects are funded with
Title 23 funds. CMAQ funds may be used for the deployment of the
reduction strategies. Broadens the eligibilities for States receiving
the minimum apportionment under CMAQ. Such States may use their CMAQ
funds for any project eligible under the STP or any project that would
be eligible under the CMAQ program if the project were in a
nonattainment or maintenance area. \[§ 1612\]

[Improved Interagency Consultation]{.underline}. The legislation
requires the Secretary to encourage States and MPOs to consult with
State and local air agencies regarding emissions benefits from proposed
CMAQ programs and projects. \[§ 1613\]

[Evaluation and Assessment of CMAQ Projects]{.underline}. In
consultation with the EPA Administrator, the Secretary will evaluate and
assess a representative sample of CMAQ projects to determine the direct
and indirect impacts on air quality and congestion and to ensure the
effective implementation of the program. The bill provides no direct
funding for the evaluation. \[§ 1614\]

[Synchronized Planning and Conformity Timelines, Requirements, and
Horizon]{.underline}. Preserving the current practice of keeping
Statewide and metropolitan planning and programming documents separate
while providing synchronization, transportation improvement programs
(TIPs) and State transportation improvement programs (STIPs) would cover
at least four years and be updated at least every four years. FHWA would
be required to promulgate regulations on Statewide and metropolitan
planning within 18 months of enactment of the bill. New conformity
determinations would be required within two years of new motor vehicle
emissions budget. In air quality nonattainment and maintenance areas,
metropolitan long-range transportation plans (LRTPs) would be updated
and conformity determined at least every four years. In attainment
areas, metropolitan LRTPs would be updated at least every five years
(consistent with current regulations.) The conformity horizons for
transportation plans would extend for the longest of: 10-year period of
a plan, latest year in the State Implementation Plan that has the area's
motor vehicle emissions budget, or the year after a regionally
significant project is complete. \[§ 1615\]

[Transition to New Air Quality Standards]{.underline}. This section
addresses methods of conformity determination before an emissions budget
is available for new nonattainment areas resulting from new standards.
Areas that have not been in nonattainment before and have not been
required to demonstrate transportation conformity before may use an
emissions budget in a State implementation plan (SIP) for the prior
standard for the same pollutant, if one is available. \[§ 1616\]

[Reduced Barriers to Air Quality Improvements]{.underline}. The bill
allows substitution or addition of transportation control measures
(TCMs) without a SIP revision or new conformity determination, if the
substitute measures achieve equivalent or greater emissions reductions.
\[§ 1617\]

[Air Quality Monitoring Influenced by Exceptional Events]{.underline}.
Not later than March 1, 2005, the Administrator of the EPA shall publish
regulations, after consultation with Federal land managers and State air
pollution control agencies, governing the review and handling of air
quality monitoring data influenced by exceptional events (such as a
natural event that is unlikely to recur at a particular location). A
Governor may then petition the Administrator to exclude air quality
monitoring data that is directly due to exceptional events from use in
determination by EPA with respect to exceedances or violations of the
national ambient air quality standards. \[§ 1618\]

[Conforming Amendments]{.underline}. The bill makes conforming
amendments to the Clean Air Act. \[§ 1619\]

[Highway Stormwater Discharge Mitigation Program]{.underline}. The
provision requires that 2 percent of each State's STP apportionments be
set aside to be used for, among other things, improving stormwater
discharge water quality, attaining preconstruction hydrology, promoting
infiltration of stormwater into groundwater, minimizing stream bank
erosion, and enhancing natural filters. States shall give priority to
projects sponsored by a State or local government that assists the State
or local government in complying with the Federal Water Pollution
Control Act. The Secretary must establish a highway stormwater discharge
mitigation program to improve the quality of stormwater discharge from
Federal-aid highways and related facilities and to enhance groundwater
recharge. Finally, the Secretary, in consultation with the EPA
Administrator, within 180 days of enactment will issue guidance
concerning innovative technologies and non-structural best management
practices to mitigate highway stormwater discharges. \[§ 1620\]

[Exemption from Certain Hazardous Materials Transportation
Requirements]{.underline}. Exempts agricultural producers with gross
agricultural commodity sales of \$500,000 or less from certain hazmat
requirements under Title 49, Code of Federal Regulations. \[§ 1621\]

**Subtitle G -- Operations**

[Transportation Systems Management and Operations]{.underline}. The bill
makes regional transportation operations collaboration and coordination
activities eligible for STP funds and allows States to use STP funds to
reduce traffic delays caused by motor vehicle accidents and breakdowns
on highways during peak driving times. The provision calls upon the
Secretary of Transportation to establish a new transportation systems
management and operations program 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 and statewide level. \[§ 1701\]

[Real-Time System Management Information]{.underline}. The Secretary of
Transportation will establish a real-time management information program
and, within 1 year, establish formats for the exchange of data between
jurisdictions. States are to institute a statewide, real-time incident
reporting system within two years or within five years if the Secretary
determines that adequate real-time communications capability will not be
available within two years. \[§ 1702\]

[Contracting for Engineering and Design Services]{.underline}. When
contracting for program management, construction management, feasibility
studies, preliminary engineering, design, engineering, surveying,
mapping, or architectural related services for Federal-aid construction
projects, States would be required to award contracts in the same manner
as a contract for architectural and engineering services under chapter
11 of Title 40. Previously there was an option to use equivalent State
qualifications-based requirements. Also eliminated is the current law
option that allows some States to apply limits to the overhead rates of
engineering firms, thus requiring all States to apply the overhead rates
established by cognizant auditors. \[§ 1703\]

[Off-duty Time for Drivers of Commercial Vehicles]{.underline}. The bill
exempts from any requirements for off-duty time beyond those in section
345(a)(2) of the NHS Designation Act for drivers of vehicles used
primarily for transportation and operation of ground water well drilling
rigs. \[§ 1704\]

[Designation of Transportation Management Areas]{.underline}. This
provision supplements metro planning funds for the Lake Tahoe Region
with a mandatory setaside of 1 percent of funds distributed under
section 202 of Title 23 (Federal Lands Highway Program). It also
requires that the urbanized areas of Norman and Oklahoma City, Oklahoma
be treated as a single area for purposes of apportioning metro planning
funds. \[§ 1705\]

Subtitle H -- Federal-Aid Stewardship

[Future Interstate System Routes]{.underline}. The bill amends current
law to permit States 25 years to complete a designated Interstate System
route. \[§ 1801\]

[Stewardship and Oversight]{.underline}. The bill amends the definition
of value engineering analysis and requires the use of value engineering
or other cost-reduction analysis for Federal-aid projects with an
estimated cost of \$25 million or more or bridge projects estimated at
\$20 million and above.

The proposal mandates that the Secretary of Transportation monitor
federal-aid project finances, perform annual reviews of State
transportation departments' financial management systems and project
delivery systems, and develop minimum standards for estimating project
costs. Recipients with a project estimated to have a total cost of \$1
billion or more shall submit a project management plan and an annual
financial plan. States must prepare an annual financial plan for
projects receiving \$100 million or more in Federal funds and, upon
request, make the plan available to the Secretary.

The Secretary must debar contractors convicted of criminal and civil
offenses involving fraud. Any monetary recoveries by the Federal
Government resulting from civil judgments or criminal prosecutions
pertaining to highway or transit fraud are to be shared with the State
or local transit agency involved to be used by these agencies for
oversight of Title 23 and Title 49 programs. \[§ 1802\]

[Design-Build Contracting]{.underline}. The bill eliminates the minimum
dollar cost threshold for use of design-build contracting on a given
project, including intermodal facilities. \[§ 1803\]

[Program Efficiencies-Finance]{.underline}. The bill amends current
advance construction provisions to eliminate the requirement that a
State exhaust its available Federal funds before using advance
construction and allows advance construction to be used for any project
authorized under 23 USC.

It also codifies the current practices for tracking funds for the
purpose of determining the lapse of funds and for reporting obligations
net of any deobligations. \[§ 1804\]

[Set-asides for Interstate Discretionary Projects.]{.underline} The
proposal continues the \$100 million per year setaside from the
Interstate Maintenance Program authorization to be used for
discretionary grants for the resurfacing, restoration, rehabilitation or
reconstruction of portions of the Interstate System. \[§ 1805\]

[Federal Lands Highways]{.underline}. Continuing the current law
elements of the program, the legislation adds new categories for Safety
and Recreation Roads and adds operation and maintenance of transit
facilities as an eligible use of funds for all categories of Federal
Lands Highways facilities except Refuge Roads.

[]{.mark}

Under the *Public Lands Highways (PLH) Program*, authorized at \$300
million per year, the Secretary is directed to allocate 33-1/3 percent
of sums authorized for the program among States having unappropriated or
unreserved public lands, non-taxable Indian lands or other Federal
reservations (the PLH Discretionary Program). Allocations are to be
based on need upon application of the States and give preference to
projects that are significantly impacted by Federal land and resource
management activities that are proposed by a State that contains at
least 3 percent of the total public land in the Nation. The Secretary
shall allocate the remaining 66-2/3 percent of the authorized funds to
the National Forest System with equal consideration to projects
providing access to and within the Forest System with \$15 million of
the Forest Highways funds to be set aside for repair or removal of
culverts and dams and bridges to facilitate fish passage.

[]{.mark}

Under the *Park Roads and Parkways Program*, with 6-year funding of
\$1.9 billion, the Secretary will give funding priority to roads
National Parks used more than 1 million visitor days per year,
especially roads constructed before 1940. Within this category, the
Secretary shall give priority to roads for National Parks adjacent to a
National Park in another country or that are located in more than one
State.

[]{.mark}

Under the *Indian Reservation Road (IRR) Program*, with 6-year funding
of \$2.175 billion, funds are to be distributed by a formula developed
by rulemaking by the Department of the Interior, using existing formula
until the regulations are promulgated. The bill establishes a new
demonstration project under which up to 15 selected tribal governments
or consortia of tribal governments may receive IRR funds directly and
carry out planning, contracts and agreements for planning, research,
engineering and construction consistent in accordance with the Indian
Self-Determination and Education Assistance Act.

[]{.mark}

The Bureau of Indian Affairs (BIA) may use not more than 6 percent of
the funds it receives for its administrative expenses for the IRR
program, including the administrative expenses related to individual
projects.

In addition to the IRR Program funds, \$15 million per year is
authorized for Indian reservation bridges and the eligible use of the
bridge funds is expanded to preconstruction costs.

The bill establishes a new *Safety Program* funded at \$40 million per
year, to fund safety activities, both infrastructure and behavioral on
roads of the Bureau of Reclamation (BOR), BIA, Bureau of Land Management
(BLM), Forest Service (FS), Fish and Wildlife Service (FWS), National
Park Service (NPS) and the Corps of Engineers (COE).

The bill also establishes a new *Recreation Roads Program*, funded at
\$50 million per year*,* to fund maintenance or improvements to existing
recreation roads of the BOR, BLM, FS, and COE. Also eligible are
maintenance and improvements of projects that are located in or adjacent
to Federal land under the jurisdiction of the Departments of Agriculture
and Interior for transportation planning for tourism and recreational
travel, parking areas, interpretive signage, provisions for pedestrians
and bicycles, and roadside rest areas or to match other Federal funds
for such projects. Funds may not be used for the design or construction
of new recreation roads.

\[§ 1806\]

[Highway Bridge Program]{.underline}. Authorizing \$33.7 billion over 6
years, the bill continues the program for the rehabilitation or
replacement bridges and allows preventive maintenance on bridges not
eligible for rehabilitation or replacement. Each year \$150 million of
the amount authorized is available at the discretion of the Secretary,
with up to \$25 million reserved for seismic retrofit. For FY 2004 only,
\$50 million each of the Bridge Discretionary Program is reserved for
the State of Nevada to replace the bridge over the Hoover Dam and to the
State of Missouri for the Mississippi River bridge connecting St. Louis
with Illinois. The bill continues the setaside of 15 percent of each
State's bridge program apportionments for bridges not on the Federal-aid
highway system, but eliminates the current 35 percent cap on the amount
available for off-system bridges. Completion of the Warwick (Rhode
Island) Intermodal Station, including the construction of a people mover
between the Station and the T.F. Green Airport, is eligible for the
funds set aside for off-system bridges. The Federal share for the Bridge
Program may be adjusted by the sliding scale. Under the Bridge Program
(only), costs associated with actions to preserve, or reduce the impact
of a project on the historic integrity of historic bridges is an
eligible project cost, but if the bridge is no longer used for motorized
vehicular traffic, the reimbursable costs may not exceed 200 percent of
the estimated cost to demolish the bridge. The bill continues a
requirement for annual reports in the Federal Register on construction
materials used in new Federal-aid bridge construction and bridge
rehabilitation projects. \[§ 1807\]

[Appalachian Development Highway System]{.underline}. The program is
continued and authorized at \$590 million per year. The use of toll
credits in lieu of the non-Federal share on Appalachian projects is
prohibited. \[§ 1808\]

[Multistate Corridor Program]{.underline}. With \$1 billion authorized
over 6 years, the Secretary is to carry out a new discretionary program
to support and encourage multistate transportation planning and
development and facilitate transportation decisionmaking and coordinate
project delivery involving multistate corridors. Funds may be used for
multistate highway and multimodal planning studies and construction.
State transportation departments and MPOs are eligible to receive and
administer the funding, with a federal share of 80 percent. \[§ 1809\]

[Border Planning, Operations, Technology and Capacity
Program]{.underline}. A total of \$1 billion is authorized for the
Secretary to establish and carry out a new formula program for specified
States at the northern and southern borders of the U.S. Eligible
activities are highway and multimodal planning studies; cross border
port of entry (POE) and safety inspection improvements; technology and
information exchange activities; right of way acquisition, design, and
construction to enhance border POE and safety improvements and
technology and information exchange activities, to decrease vehicle
emissions at POEs and border inspection facilities and to increase
highway capacity near international borders.

The funds are distributed to the border States based on the weight of
cargo entering the State across an international border by commercial
vehicle, the average trade value of all cargo imported or exported
across the international border of the State, the number of commercial
vehicles crossing an international border into the State, and the number
of passenger vehicles so entering. No border state receives less than ½
percent. With a Federal share of 80 percent subject to sliding scale,
projects may be constructed in Canada and Mexico if they adhere to
applicable U.S. standards and will be properly maintained and used over
the useful life of the facility. At the request of a State, funds may be
transferred to GSA for project construction. In addition, the Secretary
may transfer funds directly to the GSA for purposes of the program. The
Committee Report indicates that such transfers should be designed and
constructed in coordination with State transportation officials from the
project State. \[§ 1810\]

[Puerto Rico Highways]{.underline}. The program is continued with \$911
million in funding over 6 years. The bill continues the requirement to
distribute the lump sum authorized each year to programs in the same
proportions that Puerto Rico received apportionments of such funds in
1997. The funds are subject to the penalties under Titles 23 and 49 that
would apply to apportionments from the programs. \[§ 1811\]

[National Historic Covered Bridge Preservation]{.underline}. The bill
continues the program and codifies it in Title 23, authorizing \$14
million annually from the General Fund. \[§ 1812\]

[Transportation and Community and System Preservation (TCSP)
Program]{.underline}. The program is continued and codified in Title 23,
with \$50 million provided for each fiscal year. In addition,
eligibility for TCSP projects is specifically added to the list of
eligible uses of STP funds. \[§ 1813\]

[Parking Pilot Programs]{.underline}. The bill establishes two new
parking pilot programs. The *Commercial Truck Parking Pilot Program,*
funded at \$10 million per year starting in 2005, is a discretionary
program to address the shortage of long-term parking for drivers of
commercial motor vehicles on the National Highway System. Funds may be
allocated to States, MPOs, and local governments to construct safety
rest areas that include truck parking, construction of commercial truck
parking facilities adjacent to commercial truck stops and travel plazas,
projects to improve access to truck parking on or near the NHS,
improvements to seasonal parking facilities to enable year-round use,
and projects to promote awareness of the availability of public and
private truck parking on the NHS.

The *Corridor and Fringe Parking Pilot Program*, funded at \$10 million
per year starting in 2005, is a discretionary program to grants to
States to provide parking capacity to support car pooling, van pooling,
ride sharing, commuting, and high occupancy vehicle travel. Eligible for
funding are construction and costs of opening corridor and fringe
parking facilities, improvements to access to such facilities, and
promotion of awareness of such facilities. \[§ 1814\]

[Interstate Oasis Program]{.underline}. Within 180 days of enactment,
the Secretary is to establish the Interstate Oasis Program, including
development of standards for designating oases, including the appearance
of facilities and the proximity to the Interstate. Oases must offer
products and services to the public, 24-hour access to restrooms, and
parking for automobiles and heavy trucks. State participation in the
program is voluntary. \[§ 1815\]

[Tribal-State Road Maintenance Agreements]{.underline}. An Indian Tribe
and a State may enter into a road maintenance agreement for Indian
reservation roads and roads providing access to Indian reservation roads
in which the Tribe assumes the responsibilities of the State. \[§ 1816\]

[National Forest System Roads]{.underline}. The legislation mandates
that \$15 million of annual National Forest System Highway funding (a
portion of the Public Lands Highways funding) must be used by the
Secretary of Agriculture to repair or replace culverts and bridges to
improve fish passage. \[§ 1817\]

[Territorial Highways]{.underline}. The program for the Northern Mariana
Islands, American Samoa, Guam and the Virgin Islands is continued,
funded by a \$50 million annual takedown from the NHS Program. The bill
codifies the program in Title 23. \[§ 1818\]

[Magnetic Levitation Transportation Technology Deployment]{.underline}.
The Secretary is permitted to solicit applications for financial
assistance for planning, designing and construction of maglev projects.
The legislation provides total funding of \$90 million in contract
authority and \$2.5 billion in appropriated budget authority. \[§ 1819\]

[Donations and Credits]{.underline}. The bill adds language permitting
local governments to donate funds, materials, and services. \[§ 1820\]

[Disadvantage Business Enterprises]{.underline}. The program is
continued as in current law. \[§ 1821\]

[Emergency Relief]{.underline}. The bill increases the current permanent
Emergency Relief authorization from \$100 million to \$300 million per
year. The funds are exempt from the obligation limitation. \[§ 1822\]

[Priority for Pedestrian and Bicycle Facility Enhancement
Projects]{.underline}. The provision directs the Secretary to encourage
States to give priority for use of their Transportation Enhancement
funds to pedestrian and bicycle facility enhancement projects that
include a coordinated physical activity or healthy lifestyles program.
\[§ 1823\]

[Delta Regional Authority]{.underline}. The bill creates and codifies in
Title 23 a new program, the Delta Region Transportation Development
Program, a discretionary program funded at \$80 million per year. The
program would fund projects on the Federal-aid system in an area that is
part of the Delta Regional Authority. Funds may be used for multistate
highway and transit planning, development, and construction projects.
The Federal share is 80 percent, subject to sliding scale, and funds
supplied by the Delta Regional Authority may be used to match program
funds. \[§ 1824; see a related study requirement in § 5506\]

[Multistate International Corridor Development Program]{.underline}. The
bill establishes a new discretionary program under which the Secretary
to make grants to State DOTs and MPOs with a goal of developing
international trade corridors to facilitate the movement of freight from
international ports of entry and inland ports through and to the
interior of the U.S. No funds are specifically authorized for this
program. Eligible corridors are those with significant levels or
increases in levels of truck traffic volume related to international
freight movement, connect to at least one international or inland port,
traverse at least three States, and are identified as high priority
corridors on the NHS in section 1105(c) of ISTEA. Any activity eligible
under Title 23 is eligible for funding, but priority is to be given to
enabling States and other jurisdictions to work together on multistate
and multi-jurisdiction transportation decisionmaking and to studies that
emphasize multimodal planning. \[§ 1825\]

[Authorization of Contract Authority for States with Indian
Reservations]{.underline}. The bill provides \$1.8 million per year to
be shared equally by States (except Arizona) having an Indian
Reservation over 10 million acres, effectively New Mexico and Utah.
Counties in those States may apply to the State for funds for roads that
are maintained by the county and are within, adjacent to or provide
access to an Indian reservation, and that are used by a school bus to
transport children to school or to a Headstart program. The funds are to
supplement funds provided by the Bureau of Indian Affairs and are for
the maintenance of the roads. \[§ 1826, § 1214(d) of ISTEA\]

**Subtitle I -- Technical Corrections**

This title repeals and/or updates obsolete text, provides clarification
of an effective date, makes technical amendments to the
nondiscrimination provision (23 USC 140) and codifies without
substantive change provisions regarding signs identifying funding
sources and Buy America requirements

**TITLE II -- TRANSPORTATION RESEARCH**

**Subtitle A -- Funding**

[Authorization of Appropriations]{.underline}. Combining the Surface
Transportation Research (STR) and Technology funds, the bill provides a
total of \$1.298 billion in funding for the Surface Transportation
Research Program. There are a number of setasides for specific purposes
from the Surface Transportation Research authorizations. (See
authorization table for details.) It also establishes total funding
levels of \$177 million for Training and Education; \$168 million for
the Bureau of Transportation Statistics (BTS); \$765 million for ITS
Standards, Research, Operational Tests, and Development; \$265 million
for University Transportation Centers; \$108 million for Biobased
Transportation Research (subject to appropriation); \$1.2 million for
the Surface Transportation Research Technology Advisory Committee
(subject to appropriation); and \$30 million for Intelligent
Transportation Infrastructure (subject to appropriation). \[§§ 2001,
2101, 2105\]

**Subtitle B -- Research and Technology**

[Research and Technology]{.underline}

-   SURFACE TRANSPORTATION RESEARCH: Establishing "priority areas of
    effort" for the research program (including FHWA's *Conditions and
    Performance*, 50 year pavements/100 year bridges; lowering
    life-cycle costs; hazard mitigation; safety; data requirements;
    performance metrics; improvement of planning processes; multimodal
    GIS applications; and extreme weather research), the bill also has a
    new requirement for competition and merit review of research "to the
    maximum extent practicable." Specific dollar amounts are called out
    from the STR authorization for the following:

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-   Surface Transportation-Environment Cooperative Research

-   Advanced, High-Risk, Long-term Research

-   Long-term Pavement Performance Program

-   High Performance Concrete Bridge R&T

-   Asphalt Used in Highway Pavement Research

-   Concrete Pavement Research

-   Pavement Aggregate Research

-   Alkali Silica Reactivity Mitigation Development and Deployment

-   Asphalt and Asphalt-related Reclamation Research

-   Seismic Research

-   Technology Application Program

-   International Highway Outreach Program

-   TRANSIMS Development and Deployment

-   Centers for Surface Transportation Excellence

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-   TRAINING AND EDUCATION: The bill continues the National Highway
    Institute (with some new course areas), the Local Technical
    Assistance Program (LTAP), and the Eisenhower Fellowship Program.

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```
-   UNIVERSITY TRANSPORTATION CENTERS: The bill continues the program,
    increasing the number of centers to be funded

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-   NEW STRATEGIC HIGHWAY RESEARCH PROGRAM (New-SHRP): In providing for
    a New-SHRP; building on National Research Council (NRC) Report 260
    and subsequent detailed planning work to scope the research areas,
    the bill directs the program to be administered by the NRC and
    funded at \$75 million annually to be deducted from the amounts
    authorized for IM, NHS, Bridge, STP, HSIP, and CMAQ programs.

-   RESEARCH PLANNING: The Senate bill mandates a "Surface
    Transportation Research and Technology Deployment Strategic Plan"
    focusing on six areas: safety, operations, infrastructure, planning
    and environment, policy and asset management. This bill adds a
    substantial set of material to add to DOT's current annual R&D
    review, including program progress/summary material on specified
    areas. In consultation with the Secretary of Homeland Security, the
    Secretary is to develop a 5-year highway security research and
    technology transfer plan that must be coordinated with the
    Department of Homeland Security.

-   SURFACE TRANSPORTATION RESEARCH TECHNOLOGY ADVISORY COMMITTEE: In
    addition to the ITS commission noted below, the bill requires
    formulation of a twelve-member "Surface Transportation Research
    Technology Advisory Committee" which must have expertise in six
    defined areas. Funding for the Committee is authorized at \$200,000
    per year subject to appropriation.

-   MULTISTATE CORRIDOR OPERATIONS AND MANAGEMENT. The Secretary must
    encourage multistate cooperative agreements, coalitions or other
    arrangements to promote regional cooperation, planning and shared
    project implementation to improve transportation system managements
    and operations. Funding for the I-95 corridor coalition is
    authorized at \$66 million over 6 years to be set aside from ITS
    Research funds.

-   SURFACE TRANSPORTATION-ENVIRONMENT COOPERATIVE RESEARCH PROGRAM
    (STECRP)*.* The Secretary may enter into an agreement with the
    National Academy of Sciences to carry out activities under this
    program funded at \$20 million per year from the STR authorization.

[Study of Data Collection and Statistical Analysis Efforts]{.underline}.
The Bureau of Transportation Statistics (BTS) continues its lead role in
working with other DOT agencies in developing statistical standards.
Within 90 days of enactment, the Secretary will engage the
Transportation Research Board to study the data collection and
statistical analysis efforts of the Department make recommendations. BTS
is to implement the results of the TRB study to the maximum extent
practicable. If the Comptroller General determines that the study has
not been conducted, BTS will be ineligible for funding from the Highway
Trust Fund until the study has been conducted. \[§ 2102\]

[Centers for Surface Transportation Excellence]{.underline}. The
Secretary is to establish centers for surface transportation excellence
to promote strategic national programs and activities, including the
environment, operations, surface transportation safety, project finance,
and asset management. After multiyear strategic plans for the centers
are developed, the Secretary shall make grants to and enter into
cooperative agreements with the National Academy of Sciences, AASHTO,
planning organizations, federal laboratories, States, and/or other
organizations. A total of \$10 million per year is to be setaside from
STR funds for the Centers. \[§ 2103\]

[Motorcycle Crash Causation Study]{.underline}. The Secretary is to
provide grants to conduct a comprehensive motorcycle causation study.
The study must employ the international methodology for in-depth
motorcycle accident investigation of the Organization for Economic
Cooperation and Development. The study is funded at \$1.5 million per
year in FYs 2004 and 2005, the funding to be derived from funds
authorized for the BTS. \[§ 2104\]

[Transportation Technology Innovation And Demonstration
Program]{.underline}. Continuing the Intelligent Transportation
Infrastructure demonstration initiative begun in Pennsylvania under
section 5117(b)(3) of TEA-21, the bill authorizes additional funding of
\$5 million per year (subject to appropriation) and provides a new list
of potential follow-on deployment areas. \[§ 2105\]

**Subtitle C -- Intelligent Transportation System Research**

[Intelligent Transportation Systems (ITS) Research and Technical
Assistance]{.underline}. The bill indicates that continued investment in
architecture and standards development, research, technical assistance
for State and local governments, and system integration is needed to
accelerate the rate at which ITS is incorporated into the national
surface transportation network to improve safety and efficiency. Within
the funds authorized for ITS Research, the Secretary of Transportation
will receive \$1.5 million annually to fund a public-private advisory
committee for research, planning, standards development, deployment, and
marketing of ITS programs, products, and services to coordinate the
development and deployment of ITS in the U.S. The Secretary is to
develop a 5-year National ITS Program Plan and a national ITS
architecture and standards. Under the Commercial Vehicle Information
Systems and Networks program (CVISN), States may apply for grants for
core deployment of CVISN with a maximum of \$2.5 million per State and
for expanded deployment with a maximum of \$1 million. The Federal share
is 80 percent as adjusted by the sliding scale. Mandating the
establishment of a national, interoperable 511 system, the bill
establishes the goals of a 5 percent reduction of metropolitan
congestion by 2010 and an average 10-minute reduction in emergency
response times. \[§ 2201; see similar CVISN program in § 4241\]

**TITLE III -- INTERMODAL PASSENGER FACILITIES**

[Intercity Bus Intermodal Passenger Facilities]{.underline}. To
accelerate intermodal integration among North America's passenger
transportation modes, the legislation directs the Secretary to make
grants to State and local governments and non-profit organizations for
capital projects. A grant may not exceed 50 percent of the estimated
project cost. The program is funded at \$10 million annually beginning
in 2005, subject to the Federal-aid highway obligation limitation.
\[§ 3045\]

**TITLE IV -- SURFACE TRANSPORTATION SAFETY**

**Subtitle F -- Rail Transportation**

[Federal Bonds for Transportation Infrastructure]{.underline}. The bill
establishes a nonprofit corporation, the Build America Corporation, as a
non-Government entity, to issue Build America bonds to support qualified
projects. Qualified highway projects are projects for highway facilities
or other facilities eligible for funding under Title 23. Qualified
congestion relief projects are intermodal freight transfer facilities,
freight rail facilities, freight movement corridor; intercity passenger
rail or facility, intercity bus vehicle or facility, border-crossing
facility or other public or private facility approved by the Secretary.
The Secretary shall base such approval on the economic, environmental,
mobility, and national benefits of a project and give preference to
regionally or nationally significant projects, projects sponsored by
multistate coalitions and/or private sector entities that support
international commerce or otherwise enhance the national transportation
system. Only capital costs are eligible and Federal requirements under
Titles 23, 40, and 49 which would apply if the project were assisted
with Federal funds, will apply to such projects. The State agency
related to the project must update its list of accepted construction
technologies to match a list prescribed by the Secretary. \[§§ 4602,
4603\]

[Use of Congestion Mitigation and Air Quality (CMAQ) Improvement Funds
for Boston to Portland Passenger Rail Service]{.underline}. Through
December 15, 2006, CMAQ funds apportioned to Maine may be used to
support the operation of passenger rail service between Boston,
Massachusetts and Portland, Maine. \[§ 4662\]

**TITLE V -- HIGHWAY REAUTHORIZATION AND EXCISE TAX SIMPLIFICATION**

**Subtitle A -- Trust Fund Reauthorization**

[Extension of Highway Trust Fund Expenditure Authority and Related
Taxes]{.underline}. The bill extends the following Highway Trust Fund
provisions:

> *Expenditure Authority*

-   Authority to make expenditures from the Highway Account of the
    Highway Trust Fund for specified purposes is extended through
    September 30, 2009. \[5001(a)(1)(A)\]

-   The list of approved purposes of expenditures is updated to include
    the expenditure of funds to liquidate obligations under SAFETEA
    of 2004. \[5001(a)(1)(B)\]

-   The "penalty" for continuing to expend funds after the cutoff date
    of September 30, 2009 is continued. Under this provision, sometimes
    referred to as the Basso Rule, all transfers of tax receipts to the
    Trust Fund would be cut off, is such expenditures are made.
    \[5001(a)(1)(C)\]

-   Comparable provisions to the above are also made for the Mass
    Transit Account of the Highway Trust Fund. \[5001(a)(2)\]

> *Highway Trust Fund Taxes*

-   Extends the imposition of existing taxes through September 30, 2009.
    Most of these taxes would have otherwise terminated on October 1,
    2005, except for 4.3 cents per gallon of the fuel tax, which does
    not terminate. \[§ 5001(c)(1)\]

> *Exemptions from Taxes*
>
> Most exemptions require no extension.

-   Extends the exemption from the gas-guzzler and tire taxes for
    exports, use by State and local governments, and use by nonprofit
    educational organizations through September 30, 2009.

-   Extends the exemption from the heavy vehicle use tax for vehicles
    used by State and local governments and for transit buses through
    September 30, 2009.

\[§ 5001(d)\]

> *Deposits into and Transfers from the Highway Trust Fund*

-   Extends the transfer from the General Fund to the Highway Trust Fund
    of tax receipts from taxes dedicated to the Highway Trust Fund
    through September 30, 2009.

-   Extends the transfer of receipts from boat gas from the Highway
    Trust Fund to the Boat Safety Account of the Aquatic Resources Trust
    Fund and to the Land and Water Conservation Fund.

-   Extends the transfer of receipts from small engine fuel (lawn
    mowers, chain saws, etc.) to the Sport Fish Restoration Account of
    the Aquatic Resources Trust Fund.

\[§ 5001(e)\]

> *Tax Benefits for Certain Alcohol Fuels*

-   Extends the special tax treatment of fuels that are at least 85
    percent alcohol either from natural gas or from coal. \[§§
    5001(c(1)(C), 5001(f)\]

[Use of Highway Account Funds for Rail Projects]{.underline}. Rail
projects started after enactment may not be funded from the Highway
Account of the Highway Trust Fund unless they are for publicly owned
rail facilities or private facilities that will yield a public benefit.
\[§ 5001(g)\]

[Highway Use Tax Evasion Projects]{.underline}. The bill authorizes
expenditure of \$100 million per year from the Highway Trust Fund for
efforts to curb evasion:

-   For the Internal Revenue Service (IRS), \$30 million per year for
    enforcement of fuel tax compliance, \$10 million per year for
    ExSTARS, and \$10 million per year for ExFIRS.

-   For the Federal Highway Administration, \$50 million per year (\$1
    million per State) to combat fuel tax evasion at the State level.

\[§ 5001(h)\]

[Full Accounting of Funds Received by the Highway Trust
Fund]{.underline}. Effective April 1, 2004, the bill eliminates the
current requirement that the Highway Trust Fund bear the cost of various
refunds and credits provided by law against fuel and truck tax
liabilities. The refunds and credits would be paid from the General Fund
without reimbursement from the Highway Trust Fund. The payment of
interest on the invested balances of the Highway Trust Fund would begin
upon enactment. \[§ 5002\]

[Modification of Adjustments of Apportionments (Byrd Test).]{.underline}
The bill would modify the Byrd Test, a test of solvency of the Highway
Trust Fund, to require that Highway Account and Mass Transit Account
(each separately) unpaid authorizations at the end of a fiscal year be
less than or equal to the cash balance of the account at the end of the
year plus the projected receipts for the next 48 months (current law is
24 months). Any time this condition is not met, the Secretary must
reduce the apportionment of funds from the account. When the Byrd Test
calculation requires an estimate of tax receipts beyond FY 2009, the
estimate of receipts is to be made assuming that the taxes continue to
be imposed at the rates in effect at the time the estimate is made. \[§
5003\]

**Subtitle B -- Volumetric Ethanol Excise Tax Credit**

-   Effective October 1, 2004, this title eliminates gasohol's partial
    exemption (currently 5.2 cents per gallon) from the gasoline tax and
    replaces it with a new excise tax credit of equal per-gallon value.
    The new tax credit is paid from the General Fund.

-   The credit can be claimed based solely on the amount of alcohol
    blended into the fuel, rather than on the three different blend
    ratios for gasohol defined in current law (5.7%, 7.7% and 10%).

-   The title also provides a new excise tax credit, paid from the
    General Fund, for biodiesel. Generally, the credit is 50 cents per
    gallon, and is \$1 per gallon if the product is agri‑biodiesel.

-   Blenders will be able to claim the General Fund ethanol and
    biodiesel credits on their excise tax returns allowing the benefit
    of the new credits to occur at the same time as the benefit of the
    repealed tax exemption.

-   Retroactively to October 1, 2003, the 2.5 cents per gallon of the
    gasohol tax currently retained by the General Fund would be
    redirected to the Highway Account of the Highway Trust Fund.

> \[§§ 5101-5103\]

**Subtitle C -- Fuel Fraud Prevention**

[Taxation of Aviation Grade Kerosene]{.underline}. To reduce the
likelihood of untaxed jet fuel (kerosene) being used in trucks in place
of taxed diesel fuel, the bill would move the point of taxation for jet
fuel to the terminal rack, the same as diesel fuel. The jet fuel would
be taxed at the rate of general aviation fuel, 21.9 cents per gallon.
Aviation fuel that moves through the bulk system from the terminal and
can be directly loaded into a commercial aircraft via a pipeline/hydrant
system would be taxed at the commercial aviation rate of 4.4 cents per
gallon. If the fuel taxed at the general aviation rate is ultimately
used in commercial aviation, a refund would be allowed. The provision
would be effective October 1, 2004. \[§§ 5201-5211\]

[Transfer of Funds from the Airport and Airways Trust Fund (AATF) to the
Highway Trust Fund]{.underline}. Recognizing that, despite the change to
jet fuel tax administration, some jet fuel will be used in highway
vehicles, the bill requires the Secretary of the Treasury to annually
estimate the taxes received by the AATF from such use and to transfer
the receipts to the Highway Trust Fund. Effective, October 1, 2004, the
amounts so transferred would be split with 89 percent to the Highway
Account and 11 percent to the Mass Transit Account. \[§ 5212\]

[Changes to Dyed Fuel Law]{.underline}. The bill would eliminate
splash-dyeing option and require tamper-resistant mechanical injector
dyeing systems at terminals selling dyed fuel. Significant penalties,
with joint and several liability, would be imposed for tampering with
the injection system and for failure to maintain security for such
systems. Repeat offenders would no longer have the option of
administrative appeal or review, with some exceptions. \[§§ 5221-5223\]

Operators of intercity buses would no longer be allowed to buy dyed
(untaxed) fuel and then self assess the tax at their reduced tax rate.
They would be able to purchase from ultimate vendors and assign the
their right to a partial refund to the vendor who could then sell the
fuel to the bus operator at a lower price. \[§ 5224\]

[Inspection of Records]{.underline}. The bill would expand enforcement
tools for IRS inspections by permitting examination of additional
fuel-related records, and by assessing a penalty, with joint and several
liability, for refusal of entry to inspect such records. \[§§
5231-5232\]

[Registration and Reporting Requirements]{.underline}. The bill would
require taxable fuel on which the tax has not been paid could only be
transported in bulk by registered pipelines or vessels to registered
terminals or refineries and establish a penalty for carrying such fuel
by a nonregistered pipeline or vessel. Registered vessels would be
required to display proof of registration and there would be a civil
penalty for failure to display such registration. \[§§ 5241-5242\]

Persons who operate a terminal or refinery within a foreign trade zone
or within a customs bonded storage facility, or those holding inventory
positions with respect to taxable fuel in such terminals, must register
with the Internal Revenue Service. Substantial penalties would apply to
those who fail to register and to meet reporting requirements. \[§§
5243-5244\]

Persons required to file information reports related to fuel must file
electronically if they have 25 or more reportable transactions per
month. \[§ 5246\]

[Imports]{.underline}. Under the bill, the tax on fuel entering the U.S.
(other than transfers in bulk) for consumption, use, or warehousing,
would be immediately due and payable at the time of entry if the enterer
is not registered with the IRS. The Customs Service can seize the fuel
or detain the vehicle carrying the fuel if the tax is not paid or bond
posted. If the tax remains unpaid 5 days after seizure, the Secretary of
the Treasury may sell the fuel.

After promulgation of regulations by the Department of Homeland
Security, taxable fuels destined for import into the U.S. would be
subject to the cargo declaration and electronic reporting requirements,
including declaration 24 hours before the cargo is laden aboard the
vessel at the foreign port. The customs reporting would be shared with
the IRS.

\[§§ 5251-5252\]

[Miscellaneous Provisions]{.underline}.

-   Modifies the definition of diesel to include any liquid offered for
    sale for use in a diesel highway vehicle or diesel train.

-   Allows registered "ultimate vendors" to administer credits and
    refunds of the gasoline tax, on credit card sales of diesel to State
    and local governments and for farm diesel under certain conditions.

-   Eliminates the option to pay the heavy vehicle use tax (HVUT) in
    quarterly installments. Requires that an electronic identification
    device indicating proof of payment of the HVUT be displayed on each
    taxable vehicle.

-   Dedicates the receipts from a number of the penalties assessed in
    conjunction with highway tax enforcement to the Highway Trust Fund
    effective October 1, 2004.

> \[§§ 5261-5267\]

[Total Accountability]{.underline}. The bill requires that all gasoline,
gasoline blendstocks, diesel fuel and kerosene removed through a
terminal rack are taxable subject to available credit and exemption
provisions. \[§5271\]

[Excise Tax Reporting]{.underline}. Beginning October 1, 2004, the bill
would require that fuel excise taxpayers file monthly returns rather
than the quarterly returns currently required. The returns filed would
include information on any refined product removed from a terminal
whether or not the product is taxable. \[§5272\]

**Subtitle D --- Definition of Highway Vehicle**

The bill establishes a statutory definition for "highway vehicle,"
currently defined only in IRS regulations. The definition is key to
determining whether certain vehicles and their tires and fuel are
taxable. The bill also clarifies the exclusion of mobile machinery from
the definition of highway vehicle. Mobile machinery, such as cranes,
would not be taxable under the truck retail tax, the heavy vehicle use
tax or the tire tax. Fuel used by mobile machinery would be taxable
unless it traveled less than 5,000 miles during the year or was not
licensed to travel on public roads at any time during the year. \[§§
5301-5302\]

**Subtitle E -- Excise Tax Reform and Simplification**

[Gas Guzzler Tax]{.underline}. The bill dedicates the gas guzzler tax,
an existing tax, to the Highway Trust Fund effective upon enactment. It
also modifies the coverage of the tax so that limousines over 6,000
pounds are not taxed. (Other vehicles over 6,000 pounds are already
exempt from the tax.) \[§ 5401\]

[Repeal of diesel fuel tax on fuel used in trains and in inland waterway
barges]{.underline}. The bill repeals the 4.3 cents per gallon tax,
originally levied for deficit reduction, on the named fuels. \[§ 5402\]

[Aquatic Resources Trust Fund]{.underline}. The bill merges the two
accounts of the Aquatic Resources Trust Fund---the Boat Safety Account
and the Sport Fish Restoration Account---and renames the Trust Fund the
Sport Fish Restoration Trust Fund. \[§ 5411\]

[Credit for Taxpayers Owning Commercial Power Takeoff
Vehicles]{.underline}. An income tax credit of \$250 is provided to an
owner (except a government agency) of a trash or recycling truck or a
ready mixed concrete trucks where the trash compacting or concrete
mixing equipment is powered by the vehicle's propulsion engine. The
credit provision is effective upon enactment and terminates after
calendar year 2006. \[§ 5452\]

[Credit for Auxiliary Power Units Installed on Diesel-Powered
Trucks.]{.underline} An income tax credit of \$250 is provided to a
vehicle owner who installs an auxiliary power unit on a heavy-duty (over
12,500 pounds) diesel vehicle during the tax year. Such power units
would provide heat, air conditioning, engine warming etc, as if the main
drive engine were in operation and must be used to reduce long-term
idling of the diesel engine on the vehicle. The auxiliary unit must be
certified to meet emission standards by EPA. \[§ 5453\]

**Subtitle F --Miscellaneous Provisions**

[Motor Fuel Tax Enforcement Advisory Commission]{.underline}. The bill
would establish the Commission to (1) review motor fuel revenue
collections, historic and current, (2) review the progress of
investigations, (3) develop and review legislative proposals with
respect to motor fuel taxes, (4) monitor the progress of administrative
regulation projects relating to fuel taxes, review the results of
Federal and State agency cooperative efforts regarding motor fuel taxes.
The Commission is also to evaluate and make recommendations regarding
(1) the effectiveness of existing Federal enforcement programs regarding
motor fuel taxes, (2) enforcement personnel allocation, and (3)
proposals for regulatory projects, legislation and funding.

Commission members are to be appointed by the Senate Committee on
Finance and the House Committee on Ways and Means. Membership is to
include representatives from the Federal Highway Administration, the DOT
Office of Inspector General, Department of Homeland Security, the
Department of Defense, and the Departments of Justice. Also included are
representatives from the Federation of Tax Administrators, State DOTs,
the highway construction industry, industries related to fuel
distribution, the retail fuel industry, and the staff of the Senate
Finance and House Ways and Means Committees.

The Commission does not include members from the Department of Treasury,
but Treasury staff is to be available to consult with the Commission
upon request. \[§ 5501\]

[National Surface Transportation Infrastructure Financing
Commission]{.underline}. The bill would establish the Commission to
study revenues of the Highway Trust Fund under current law and the
likely trends for receipts from the current taxes, including an
evaluation of changes in types of vehicles, fuel efficiency, travel
alternatives that would impact such receipts. The Commission would also
consider alternatives to the current taxes, highway and transit needs,
and whether additional revenues would be needed. The period to be
evaluated is through 2015. The Commission is to report on policies that
Congress could consider to achieve various levels of annual revenue for
the Highway Trust Fund. The Commission is to submit its report to the
Secretary of Transportation, Secretary of the Treasury, House and Senate
tax committees and House and Senate authorizing committees. Report due
within 2 years of Commission's first meeting.

The 15 members are to be appointed by the Secretary of Transportation in
consultation with the Secretary of Treasury (7 members), and the
Chairman and ranking members of the Senate Finance and House Ways and
Means Committees (2 each). \[§ 5502, see similar Commission in § 1305\]

[Treasury Study of Fuel Tax Compliance and Interagency
Cooperation.]{.underline} Treasury is to report to the Senate Finance
and House Ways and Means Committees on its audit and enforcement efforts
and accomplishments, including interagency efforts. A detailed list of
the topics to be covered is specified. The report is to cover fiscal
years 2002-2005 and is due January 31, 2006. \[§ 5503\]

[Funding for Studies of Supplemental or Alternative Financing for the
Highway Trust Fund]{.underline}. The bill authorizes two studies:

-   \$1 million for a study by the Western Transportation Institute of
    the College of Engineering at Montana State University for a study
    of funding mechanisms of other industrialized nations, an
    examination of increasing motor fuel tax rates, and an examination
    of the viability of alternative funding proposals such as congestion
    pricing, greater reliance on tolls, privatization of facilities and
    bonding for construction of added capacity.

-   \$16.5 million for a field test by the Public Policy Center of the
    University of Iowa for a study on a long term field test of an
    approach to assessing highway use taxes based upon actual mileage
    driven.

> \[§5504\]

[Treasury Study of Highway Fuels Used by Trucks for Nontransportation
Purposes.]{.underline} The Secretary of the Treasury would be required
to study the use of fuel used by trucks other then to provide motive
power for the vehicle. The Secretary is to review the technical and
administrative feasibility of exempting such use of fuel from the
highway motor fuel tax. The Secretary is also to estimate the amount of
taxable fuel consumed by trucks due to long term idling of diesel
engines. Findings are to be reported to the Senate Finance and House
Ways and Means Committees by January 1, 2006. \[§5505\]

[Delta Regional Transportation Plan]{.underline}. The bill would require
the Delta Regional Authority to conduct a study of the transportation
assets and needs in the Delta region. After completion of the study, the
Authority would develop a regional strategic transportation plan to
achieve efficient transportation systems in the region. The bill
authorizes \$1 million from the General Fund for this purpose. \[§5506;
see related provision in § 1824\]

[Treatment of Employer-provided Transit and Van Pooling
Benefits]{.underline}. The bill increases the amount of
employer-provided transit benefits that may be excluded from an
employee's taxable income from \$100 per month to \$120 per month
effective January 1, 2005. \[§ 5507\]

[Study of Incentives for Production of Biodiesel]{.underline}. The
Comptroller General is to study the biodiesel tax credit established by
the Act and evaluate its effectiveness and any unintended consequences,
reporting its findings to the tax committees within 2 years. \[§ 5508\]

**Subtitle G -- Revenue Offsets**

The bill contains a number of provisions intended to replace the General
Fund receipts that would be redirected to the Highway Trust Fund by
provisions in the bill. These include (1) an expansion of the limitation
on expensing of certain passenger automobiles; (2) changes to curtail
tax shelters; (3) other corporate governance proposals, (4)
Enron-related tax shelters proposals, and (5) proposals to discourage
expatriation.

**Subtitle I -- Tax-exempt Financing of Highway Projects and Rail-Truck
Transfer Facilities (Private Activity Bonds)**

Highway facilities and surface freight transfer facilities are added to
a list of other activities eligible for exempt facility bonds. Qualified
highway facilities include any surface transportation project receiving
Federal assistance under Title 23 or any project for an international
bridge or tunnel for which an international entity authorized under
Federal or State law is responsible and which receives Federal
assistance under Title 23. Qualified surface transportation facilities
are facilities for the transfer of freight from truck to rail or rail to
truck (including any temporary storage facilities directly related to
the transfers) that receive Federal assistance under either Title 23 or
Title 49. \[§ 5691\]

**TITLE VI -- TRANSPORTATION DISCRETIONARY SPENDING GUARANTEE AND BUDGET
OFFSETS**

[Sense of the Senate on Overall Federal Budget]{.underline}. The bill
States that the Senate believes that comprehensive statutory budget
enforcement measures should be enacted this year and should address
discretionary spending, direct (mandatory) spending, and revenues.
\[§ 6101\]

[Discretionary Spending Categories]{.underline}. The bill defines two
categories of discretionary spending---the Highway Category and the Mass
Transit Category---and establishes discretionary outlay caps for each of
fiscal years 2004-2009 for each category. The Highway Category is made
up of the Federal-aid Highway Program obligation limitation plus Highway
Trust Funded programs of the Federal Motor Carrier Safety Administration
and the National Highway Traffic Safety Administration's Trust Funded
Operations and Research account. The Mass Transit Category includes the
Federal Transit Administration's programs funded from both the Mass
Transit Account of the Highway Trust Fund and the General Fund.

In addition to describing the two categories in terms of outlays, they
are also defined in terms of obligation limitations for each fiscal
year. For fiscal years 2006-2009, the Highway Category obligation
limitation would be adjusted to reflect the latest information on actual
receipts to the Highway Account of the Highway Trust Fund and the
Mid-session Review forecast for the current year (the year before the
budget year for which the adjustment is made). The adjustment to the
obligation limitation is calculated in the same manner as proposed in
the Administration's reauthorization proposal. \[§ 6102\]

**TITLE VIII -- SOLID WASTE DISPOSAL**

[Use of Recovered Mineral Component in Concrete]{.underline}. The
Administrator of the Environmental Protection Agency, the Secretary of
Transportation, and the heads of each other Federal agency that on a
regular basis procures, or provides Federal funds to assist in paying
the cost of procuring, material for cement or concrete projects, shall
take necessary actions to fully implement all procurement requirements
and incentives that provide for the use of cement and concrete
incorporating recovered mineral component in cement or concrete
projects. Priority is to be given to achieving greater use of recovered
mineral component in cement or concrete projects for which recovered
mineral components historically have not been used or have been used
only minimally.

The EPA Administrator, in cooperation with the Secretaries of
Transportations and Energy, are to conduct a study to determine the
extent to which full implementation of the procurement requirements may
realize energy savings and environmental benefits. The report is due to
Congress within 30 months of enactment. \[§ 8001\]

[Use of Granular Mine Tailings]{.underline}. Within 180 days of
enactment, the EPA Administrator, in consultation with the Secretary of
Transportation and other Federal agencies, is to establish criteria for
the safe and environmentally protective use of granular mine tailings
from the Tar Creek, Oklahoma Mining District for cement or concrete
projects and transportation construction projects that are carried out
using Federal funds. \[§ 8002\]

HPLS-10

3/8/2004