To provide an extension of highway, highway safety, motor carrier safety, transit, and other programs funded out of the Highway Trust Fund pending enactment of a law reauthorizing the Transportation Equity Act for the 21st Century.

Summary: Surface Transportation Extension Act of 2004, Part V - Extends Federal highway, highway safety, motor carrier safety, and transit programs for seven months, and authorizes appropriations, through May 31, 2005.

Directs the Secretary of Transportation to: (1) apportion funds made available for Federal-aid highway programs under the Transportation Equity Act for the 21st Century (TEA-21) to each State according to the ratio of the State's FY 2004 obligation authority to the FY 2004 obligation authority for all States; and (2) ensure that each State is apportioned funds for the Interstate maintenance program, the National Highway System program, the bridge program, the surface transportation program, the congestion mitigation and air quality improvement program, the recreational trails program, the Appalachian development highway system program, and the minimum guarantee.

 Sets forth provisions: (1) for reducing future apportionments, and for recovering funds not apportioned, under a multi-year law reauthorizing the Federal-aid highway program that is enacted after enactment of this Act; (2) prohibiting after May 31, 2005, the obligation of any Federal-aid highway program funds until the date of enactment of a multi-year law reauthorizing such program that is enacted after enactment of this Act; and (3) prohibiting a State from transferring after May 31, 2005, unobligated Federal-aid highway funds from amounts apportioned to it for the congestion mitigation and air quality improvement program and the surface transportation program.

Authorizes appropriations through May 31, 2005, for specified Federal-aid highway programs, highway safety programs, the Motor Carrier Safety Administration program, Federal transit programs, and sport fishing and boating safety programs.

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) and TEA-21, respectively, to set related discretionary spending limits and obligation limitations for FY 2005.

Amends the Internal Revenue Code to extend authorization for the use of the Highway Trust Fund (including the mass transit account) and the Aquatic Resources Trust Fund for obligations under TEA-21.

Amends the Surface Transportation Extension Act of 2003 to extend highway programs through end of FY 2004.

Amends TEA-21 to authorize appropriations for the high priority projects program through May 31, 2005 (including specified allocation percentages for such projects for FY 2004 through 2009).

on the Budget for 
Fiscal Year 2005.--Notwithstanding any other provision of law, all 
adjustments made pursuant to section 110(a)(2) of title 23, United 
States Code, to sums authorized to be appropriated from the Highway 
Trust Fund (other than the Mass Transit Account) to carry out each of 
the Federal-aid highway and highway safety construction programs (other 
than emergency relief) in fiscal year 2005 shall be deemed to be zero.
    (e) Sense of Congress on Adjustment to Align Highway Spending With 
Revenues.--It is the sense of Congress that, in any multiyear 
reauthorization of the Federal-aid highway program, the alignment of 
highway spending with revenues under section 251(b)(1)(B)(ii) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 should be 
restructured to minimize year-to-year fluctuations in highway spending 
levels and to ensure the uniform enforcement of such levels.
    (f) Sense of Congress on Fully Guaranteed Funding.--It is the sense 
of Congress--
            (1) in any multiyear law reauthorizing of the Federal-aid 
        highway program enacted after the date of the enactment of this 
        Act, the level of obligation limitations for fiscal year 2005 
        under the highway category and the mass transit category in 
        section 8103 of the Transportation Equity Act for the 21st 
        Century (2 U.S.C. 901 note), as amended and extended, should 
        equal the obligation limitations for such categories authorized 
        in such multiyear law;
            (2) the highway account category obligation limitation 
        level for fiscal year 2005 should be equal to the sum of the 
        Federal Highway Administration, National Highway Safety 
        Administration, and Federal Motor Carrier Safety Administration 
        obligation limitations for fiscal year 2005 in such multiyear 
        law; and
            (3) the mass transit category obligation limitation level 
        for fiscal year 2005 should be equal to the sum of budget 
        authority and obligation limitation authorizations for Federal 
        Transit Administration programs for fiscal year 2005 in such 
        multiyear reauthorization.

SEC. 11. LEVEL OF OBLIGATION LIMITATIONS.

    (a) Highway Category.--Section 8103(a) of the Transportation Equity 
Act for the 21st Century (2 U.S.C. 901 note; 112 Stat. 492; 117 Stat. 
1128) is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) for fiscal year 2005, $35,392,000,000.''.
    (b) Mass Transit Category.--Section 8103(b) of such Act (2 U.S.C. 
901 note; 112 Stat. 492; 117 Stat. 1128) is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) for fiscal year 2005, $7,265,000,000.''.
    (c) Treatment of Funds.--Notwithstanding any other provision of 
law, funds made available under this Act, including the amendments made 
by this Act, shall be deemed to be zero for the purposes of section 110 
of the title 23, United States Code.

SEC. 12. EXTENSION OF AUTHORIZATION FOR USE OF TRUST FUNDS FOR 
              OBLIGATIONS UNDER TEA-21.

    (a) Highway Trust Fund.--
            (1) In general.--Paragraph (1) of section 9503(c) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) in the matter before subparagraph (A), by 
                striking ``October 1, 2004'' and inserting ``June 1, 
                2005'',
                    (B) by striking ``or'' at the end of subparagraph 
                (I),
                    (C) by striking the period at the end of 
                subparagraph (J) and inserting ``, or'',
                    (D) by inserting after subparagraph (J) the 
                following new subparagraph:
                    ``(K) authorized to be paid out of the Highway 
                Trust Fund under the Surface Transportation Extension 
                Act of 2004, Part V.'', and
                    (E) in the matter after subparagraph (K), as added 
                by this paragraph, by striking ``Surface Transportation 
                Extension Act of 2004, Part IV'' and inserting 
                ``Surface Transportation Extension Act of 2004, Part 
                V''.
            (2) Mass transit account.--Paragraph (3) of section 9503(e) 
        of such Code is amended--
                    (A) in the matter before subparagraph (A), by 
                striking ``October 1, 2004'' and inserting ``June 1, 
                2005'',
                    (B) in subparagraph (G), by striking ``or'' at the 
                end of such subparagraph,
                    (C) in subparagraph (H), by inserting ``or'' at the 
                end of such subparagraph,
                    (D) by inserting after subparagraph (H) the 
                following new subparagraph:
                    ``(I) the Surface Transportation Extension Act of 
                2004, Part V,'', and
                    (E) in the matter after subparagraph (I), as added 
                by this paragraph, by striking ``Surface Transportation 
                Extension Act of 2004, Part IV'' and inserting 
                ``Surface Transportation Extension Act of 2004, Part 
                V''.
            (3) Exception to limitation on transfers.--Subparagraph (B) 
        of section 9503(b)(5) of such Code is amended by striking 
        ``October 1, 2004'' and inserting ``June 1, 2005''.
            (4) Conforming amendment.--Subsection (a) of section 10 of 
        the Surface Transportation Extension Act of 2004, Part IV is 
        amended by striking paragraph (4).
    (b) Aquatic Resources Trust Fund.--
            (1) Sport fish restoration account.--Paragraph (2) of 
        section 9504(b) of the Internal Revenue Code of 1986 is amended 
        by striking ``Surface Transportation Extension Act of 2004, 
        Part IV'' each place it appears and inserting ``Surface 
Transportation Extension Act of 2004, Part V''.
            (2) Boat safety account.--Subsection (c) of section 9504 of 
        such Code is amended--
                    (A) by striking ``October 1, 2004'' and inserting 
                ``June 1, 2005'', and
                    (B) by striking ``Surface Transportation Extension 
                Act of 2004, Part IV'' and inserting ``Surface 
                Transportation Extension Act of 2004, Part V''.
            (3) Exception to limitation on transfers.--Paragraph (2) of 
        section 9504(d) of such Code is amended by striking ``October 
        1, 2004'' and inserting ``June 1, 2005''.
    (c) All Alcohol Fuel Taxes Transferred to Highway Trust Fund for 
Fiscal Year 2004.--Subparagraphs (E) and (F) of section 9503(b)(4) 
(relating to certain taxes not transferred to Highway Trust Fund) are 
each amended by inserting ``before October 1, 2003, and for the period 
beginning after September 30, 2004, and'' before ``before October 1, 
2005''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act.
            (2) Transfers to highway trust fund.--The amendments made 
        by subsection (c) shall apply to taxes imposed after September 
        30, 2003.
    (e) Temporary Rule Regarding Adjustments.--During the period 
beginning on the date of the enactment of the Surface Transportation 
Extension Act of 2003 and ending on May 31, 2005, for purposes of 
making any estimate under section 9503(d) of the Internal Revenue Code 
of 1986 of receipts of the Highway Trust Fund, the Secretary of the 
Treasury shall treat--
            (1) each expiring provision of paragraphs (1) through (4) 
        of section 9503(b) of such Code which is related to 
        appropriations or transfers to such Fund to have been extended 
        through the end of the 24-month period referred to in section 
        9503(d)(1)(B) of such Code, and
            (2) with respect to each tax imposed under the sections 
        referred to in section 9503(b)(1) of such Code, the rate of 
        such tax during the 24-month period referred to in section 
        9503(d)(1)(B) of such Code to be the same as the rate of such 
        tax as in effect on the date of the enactment of the Surface 
        Transportation Extension Act of 2003.
    (f) Apportionment of Highway Trust Funds for Fiscal Year 2004.--
Section 9503(d)(3) of the Internal Revenue Code of 1986 shall not apply 
to any apportionment to the States of the amounts authorized to be 
appropriated from the Highway Trust Fund for the fiscal year ending 
September 30, 2004.

SEC. 13. EXTENSION OF HIGHWAY PROGRAMS THROUGH END OF FISCAL YEAR 2004.

    (a) Advances.--Section 2(a) of the Surface Transportation Extension 
Act of 2003 (23 U.S.C. 104 note; 117 Stat. 1110; 118 Stat. 876) is 
amended by striking ``and the Surface Transportation Extension Act of 
2004, Part IV'' and inserting ``the Surface Transportation Extension 
Act of 2004, Part IV, and the Surface Transportation Extension Act of 
2004, Part V''.
    (b) Authorization of Contract Authority.--Section 1101(c)(1) of the 
Transportation Equity Act for the 21st Century (117 Stat. 1111; 118 
Stat. 876) is amended by striking ``the period of October 1, 2003, 
through September 24,'' and inserting ``fiscal year''.
    (c) Limitation on Obligations.--Section 2(e) of the Surface 
Transportation Extension Act of 2003 (117 Stat. 1111; 118 Stat. 478; 
118 Stat. 876) is amended--
            (1) by striking paragraphs (1) through (4) and inserting:
            ``(1) Distribution of obligation authority.--For the fiscal 
        year 2004, the Secretary shall distribute the obligation 
        limitation made available for Federal-aid highways and highway 
        safety construction programs under the heading `Federal-aid 
        highways' in the Transportation, Treasury, and Independent 
        Agencies Appropriations Act, 2004 (division F of Public Law 
        108-199; 118 Stat. 291; 118 Stat. 1013), in accordance with 
        section 110 of such Act with the following exceptions:
                    ``(A) The amount of obligation limitation to be 
                distributed for such period for each program, project, 
                and activity specified in sections 110(a)(1), 
                110(a)(2), 110(a)(4), 110(a)(5), and 110(g) of such Act 
                shall equal the greater of--
                            ``(i) the funding authorized for such 
                        program, project, or activity in this Act and 
                        the Surface Transportation Extension Act of 
                        2004, the Surface Transportation Extension Act 
                        of 2004, Part II, the Surface Transportation 
                        Extension Act of 2004, Part III, and the 
                        Surface Transportation Extension Act of 2004, 
                        Part IV (including any amendments made by this 
                        Act and such Acts); or
                            ``(ii) 49/52 of the funding provided for or 
                        limitation set on such program, project, or 
                        activity in the Transportation, Treasury, and 
                        Independent Agencies Appropriations Act, 2004.
                    ``(B) Before making the distribution under 
                subsection 110(a)(6) of such Appropriations Act, the 
                Secretary shall set aside obligation limitation in the 
                amount of $1,952,480,770 for high priority projects as 
                authorized by the amendments in section 14 of the 
                Surface Transportation Extension Act of 2004, Part V. 
                Such obligation authority shall be available until 
                used.''; and
            (2) by redesignating paragraph (5) as paragraph (2).
    (d) Payment From Future Apportionments.--The following sections of 
the Surface Transportation Extension Act of 2003 (117 Stat. 1110) are 
repealed:
            (1) 2(c) (117 Stat. 1111; 118 Stat. 877).
            (2) 5(n) (117 Stat. 1119; 118 Stat. 483; 118 Stat. 632; 118 
        Stat. 703; 118 Stat. 881).

SEC. 14. HIGH PRIORITY PROJECTS PROGRAM.

    (a) Authorization of Appropriations.--Section 1101(a) of the 
Transportation Equity Act for the 21st Century (112 Stat. 111-113) is 
amended by adding at the end the following:
            ``(16) High priority projects program for fiscal year 2004 
        and the period of october 1, 2004, through may 31, 2005.--For 
        the high priority projects program under section 117 of title 
        23, United States Code, $2,190,500,000 for fiscal year 2004 and 
        $1,374,161,333 for the period of October 1, 2004, through May 
        31, 2005.''.
    (b) Authorization of Projects.--Section 117(a) of title 23, United 
States Code, is amended by striking ``1602 of the Transportation Equity 
Act for the 21st Century'' and inserting ``14(h) of the Surface 
Transportation Extension Act of 2004, Part V''.
    (c) Allocation Percentages.--Section 117(b) of such title is 
amended by striking paragraphs (1) through (6) and inserting the 
following:
            ``(1) 19.6 percent of such amount shall be available for 
        obligation beginning in fiscal year 2004;
            ``(2) 18.5 percent of such amount shall be available for 
        obligation beginning in fiscal year 2005;
            ``(3) 16.3 percent of such amount shall be available for 
        obligation beginning in fiscal year 2006;
            ``(4) 15.3 percent of such amount shall be available for 
        obligation beginning in fiscal year 2007;
            ``(5) 15.8 percent of such amount shall be available for 
        obligation beginning in fiscal year 2008; and
            ``(6) 14.5 percent of such amount shall be available for 
        obligation beginning in fiscal year 2009.''.
    (d) Federal Share.--Section 117(c) of such title is amended by 
striking ``; except'' and all that follows through ``cost thereof''.
    (e) Advance Construction.--Section 117(e) of such title is amended 
by striking ``1602 of the Transportation Equity Act for the 21st 
Century'' each place it appears and inserting ``14(h) of the Surface 
Transportation Extension Act of 2004, Part V''.
    (f) Availability of Obligation Limitation.--Section 117(g) of such 
title is amended by striking ``Transportation Equity Act for the 21st 
Century'' and inserting ``Transportation Equity Act: A Legacy for 
Users''.
    (g) Federal-State Relationship.--Section 145(b) of such title is 
amended--
            (1) by inserting after ``described in'' the following: 
        ``section 1702 of H.R. 3550 as passed the House of 
        Representatives on April 4, 2004,'';
            (2) by inserting after ``for such projects by'' the 
        following: ``section 1101(a)(16) of the Transportation Equity 
        Act for the 21st Century,''; and
            (3) by striking ``117 of title 23, United States Code,'' 
        and inserting ``section 117 of this title,''.
    (h) Project Authorizations.--Subject to section 117 of title 23, 
United States Code, the amount listed for each high priority project in 
the table contained in section 1702 of H.R. 3550 as passed the House of 
Representatives on April 4, 2004, shall be available (from amounts made 
available by section 1101(a)(16) of the Transportation Equity Act for 
the 21st Century) for fiscal year 2004 to carry out each such project.