To amend titles 23 and 49, United States Code, to accelerate the delivery process for highway and public transportation construction projects, and for other purposes.

Summary: Breaking Down Barriers Act of 2011 - Authorizes the Secretary of Transportation (DOT) to include as part of a federal-aid highway project any activities carried out by a state before approval of its application for federal funding if such activities meet applicable project requirements.

Authorizes the Secretary, in order to accelerate project delivery, to issue a letter of no prejudice for a project at the time the project is included in the state transportation improvement program or as soon as practicable.

Revises and makes permanent the surface transportation project delivery pilot program.

Prohibits the Secretary from requiring a state, as a condition of participation in the program, to forego project delivery methods otherwise permissible for highway projects.

Authorizes a state to assume highway project responsibilities administered by the Federal Highway Administration (FHWA), but not the responsibilities of any other modal administration within the Department of Transportation (DOT).

Repeals the limitation to Alaska, California, Ohio, Oklahoma, and Texas of state participation in the program. Allows program participation by all states. Prescribes a special rule to permit a state participating in the program on September 30, 2009, to continue in the program and not be required to submit an application.

Directs the Comptroller General to study methods to consolidate and streamline the environmental impact statement process with respect to federal-aid highway and highway safety construction projects and public transportation projects, with particular focus on the feasibility of modernizing current procedures for environmental impact statements to include new media and other communication techniques.

Directs the Secretary to develop recommendations for expanding the list of activities categorically excluded from requirements for environmental assessments or environmental impact statements pursuant to regulations promulgated by the Council on Environmental Quality.

Authorizes the Secretary to enter into an agreement to permit a state to assume all of the Secretary's responsibilities for federal-aid highway and public transportation projects if the state certifies that: (1) the project will be carried out in accordance with applicable requirements, and (2) at least two-thirds of the total projects costs will be derived from state funds.

Directs the Secretary to extend the highway prompt payment program to other DOT transportation construction projects.

Directs the Secretary to issue regulations to establish deadlines for federal approval actions with respect to federal-aid highway and public transportation projects.

Authorizes the Secretary to approve a request by a state to provide state public transportation and federal-aid highway project funds to federal agencies (including the DOT), state agencies, and Indian tribes participating in the environmental review process for such projects, or in an approved state process, to support activities that extend beyond environmental work to other aspects and modes of program and project delivery.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Breaking Down 
Barriers Act of 2011''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Advance construction of highway projects.
Sec. 3. Surface transportation project delivery pilot program.
Sec. 4. Methods to consolidate and streamline environmental impact 
                            statement processing.
Sec. 5. Categorical exclusions.
Sec. 6. Administration of highway and public transportation projects 
                            with high non-Federal shares.
Sec. 7. Requirements for prompt payments and approvals by the Secretary 
                            of Transportation.
Sec. 8. Assistance to State and Federal agencies.

SEC. 2. ADVANCE CONSTRUCTION OF HIGHWAY PROJECTS.

    (a) Finding.--Congress finds that it is in the public interest for 
the Secretary of Transportation to allow States to carry out advance 
construction activities under section 115 of title 23, United States 
Code, as a method for accelerating the delivery of highway projects and 
creating jobs.
    (b) Preapproval Spending; Letters of No Prejudice.--Section 115 of 
title 23, United States Code, is amended by adding at the end the 
following:
    ``(d) Preapproval Spending.--In approving an application for a 
project under this section, the Secretary may include as part of the 
project activities carried out by the State before the date of approval 
of the application if the Secretary determines that the activities were 
carried out in accordance with the requirements applicable to the 
project.
    ``(e) Letters of No Prejudice.--
            ``(1) Issuance.--The Secretary may issue letters of no 
        prejudice for projects under this section in the same manner as 
        the Secretary issues such letters for public transportation 
        projects under sections 5307 and 5309 of title 49.
            ``(2) Timing.--To accelerate project delivery, the 
        Secretary may issue a letter of no prejudice for a project at 
        the time the project is included in the transportation 
        improvement program of the State developed under section 135(f) 
        or as soon as practicable thereafter.''.

SEC. 3. SURFACE TRANSPORTATION PROJECT DELIVERY PILOT PROGRAM.

    Section 327 of title 23, United States Code, is amended--
            (1) in the section heading by striking ``pilot'';
            (2) in subsection (a)(1) by striking ``pilot'';
            (3) in subsection (a)(2)--
                    (A) in subparagraph (B) by striking clause (ii) and 
                inserting the following:
                            ``(ii) the Secretary may not assign any 
                        responsibility imposed on the Secretary by 
                        section 134 or 135.''; and
                    (B) by adding at the end the following:
                    ``(F) Preservation of flexibility.--The Secretary 
                shall not require a State, as a condition of 
                participation in this program, to forego project 
                delivery methods that are otherwise permissible for 
                highway projects.
                    ``(G) Highway project.--A highway project under 
                subparagraph (A) includes any project eligible under 
                this title. With respect to such a project, a State may 
                assume the responsibilities administered by the Federal 
                Highway Administration, but the State may not assume 
                the responsibilities of any other modal administration 
                within the Department.'';
            (4) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) Participating states.--
                    ``(A) In general.--All States are eligible to 
                participate in the program.
                    ``(B) Special rule.--Any State participating in the 
                program under this section on September 30, 2009, shall 
                be permitted by the Secretary to continue to 
                participate in the program and such State shall not 
                have to submit an application under paragraph (2) in 
                order to participate in the program.''; and
                    (B) in paragraph (2) by striking ``this section, 
                the Secretary shall promulgate'' and inserting ``the 
                Breaking Down Barriers Act of 2011, the Secretary shall 
                modify, as appropriate,''; and
            (5) by striking subsection (i) and inserting the following:
    ``(i) Termination.--The Secretary may terminate the participation 
of any State in the program if--
            ``(1) the Secretary determines that the State is not 
        adequately carrying out the responsibilities assigned to the 
        State;
            ``(2) the Secretary provides to the State--
                    ``(A) notification of the determination of 
                noncompliance; and
                    ``(B) a period of at least 30 days during which to 
                take such corrective action as the Secretary determines 
                is necessary to comply with the applicable agreement; 
                and
            ``(3) the State, after the notification and period provided 
        under paragraph (2), fails to take satisfactory corrective 
        action, as determined by Secretary.''.

SEC. 4. METHODS TO CONSOLIDATE AND STREAMLINE ENVIRONMENTAL IMPACT 
              STATEMENT PROCESSING.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on methods to consolidate and streamline the 
environmental impact statement process as the process applies to the 
construction of Federal-aid highway and highway safety construction 
projects and public transportation projects.
    (b) Contents.--The study shall focus on current procedures for 
environmental impact statements and the feasibility modernizing those 
procedures to include new media and other communication techniques.
    (c) Report to Congress.--Not later than 270 days after the date of 
enactment of this Act, the Comptroller General shall submit to Congress 
a report on the results of the study.

SEC. 5. CATEGORICAL EXCLUSIONS.

    (a) Recommendations for Expanding List of Categorical Exclusions.--
The Secretary of Transportation, in consultation with the Administrator 
of the Federal Highway Administration and the Administrator of the 
Federal Transit Administration, shall develop recommendations for 
expanding the list of activities that 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 under part 1500 of title 40, 
Code of Federal Regulations.
    (b) Participation of Recipients.--In developing the 
recommendations, the Secretary shall solicit comments from States and 
other recipients of assistance under title 23, United States Code, and 
chapter 53 of title 49, United States Code.
    (c) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to Congress a report 
on the recommendations developed under subsection (a).

SEC. 6. ADMINISTRATION OF HIGHWAY AND PUBLIC TRANSPORTATION PROJECTS 
              WITH HIGH NON-FEDERAL SHARES.

    (a) Highway Projects.--Section 106 of title 23, United States Code, 
is amended by adding at the end the following:
    ``(j) Administration of Projects With High Non-Federal Shares.--
            ``(1) Delegation of federal responsibilities.--In carrying 
        out subsection (b), the Secretary may enter into an agreement 
        to permit a State to assume all of the responsibilities of the 
        Secretary for a project funded using amounts apportioned to the 
        State under this title if the State certifies that--
                    ``(A) the project will be carried in accordance 
                with the requirements applicable to the project; and
                    ``(B) at least two-thirds of the total cost of the 
                project will be derived from State funds.
            ``(2) Termination of agreements.--The Secretary may 
        terminate an agreement entered into for a project under 
        paragraph (1) if the Secretary determines that a requirement 
        applicable to the project is not being met.''.
    (b) Public Transportation Projects.--Section 5334 of title 49, 
United States Code, is amended by adding at the end the following:
    ``(m) Administration of Projects With High Non-Federal Shares.--
            ``(1) Delegation of federal responsibilities.--The 
        Secretary may enter into an agreement to permit a recipient of 
        funds under section 5307 or 5311 to assume all of the 
        responsibilities of the Secretary for a project funded using 
        such funds if the recipient certifies that--
                    ``(A) the project will be carried in accordance 
                with the requirements applicable to the project; and
                    ``(B) at least two-thirds of the total cost of the 
                project will be derived from non-Federal sources.
            ``(2) Termination of agreements.--The Secretary may 
        terminate an agreement entered into for a project under 
        paragraph (1) if the Secretary determines that a requirement 
        applicable to the project is not being met.''.

SEC. 7. REQUIREMENTS FOR PROMPT PAYMENTS AND APPROVALS BY THE SECRETARY 
              OF TRANSPORTATION.

    (a) Extension of Highway Prompt Payment Program to Other DOT 
Programs.--The Secretary of Transportation shall extend the prompt 
payment program that applies to Federal-aid highway and highway safety 
construction projects to cover other transportation construction 
projects for which funding is provided by the Secretary.
    (b) Deadlines for Federal Approval Actions.--
            (1) Regulations.--The Secretary of Transportation shall 
        issue regulations to establish deadlines for Federal actions 
        relating to the approval of projects under title 23, United 
        States Code, and chapter 53 of title 49, United States Code.
            (2) Failure to meet approval deadlines.--Regulations issued 
        under paragraph (1) shall provide that if an application is 
        submitted to the Secretary for approval of a project under 
        title 23, United States Code, or chapter 53 of title 49, United 
        States Code, and the Secretary does not act on the application 
        on or before the deadline established for that action under 
        such regulations, the application shall be treated as having 
        been approved.
            (3) Deadline for issuance of final regulations.--Not later 
        than 1 year after the date of enactment of this Act, the 
        Secretary shall issue final regulations under paragraph (1).

SEC. 8. ASSISTANCE TO STATE AND FEDERAL AGENCIES.

    Section 139(j)(2) of title 23, United States Code, is amended by 
adding at the end the following: ``Such activities may include 
activities that extend beyond environmental work to other aspects and 
modes of program and project delivery.''.